SHIMADZU CORPORATION
1 Nishinokyo-Kuwabaracho, Nakagyo-ku
Kyoto 604-8511 Japan
http://www.shimadzu.com/Aug. 7, 2017

Operating Results and Financial Position(For the Three Months Ended June 30, 2017)

1. Operating Results(1) Consolidated Overview
In the three months ended June 30, 2017, the North American economy continued its recovery,
due to an improvement in the labor environment and firm consumer spending. The European
economy demonstrated a moderate recovery despite Britain's decision to exit the European Unionand other issues. China showed signs of economic improvement owing to various government
measures. Southeast Asia also showed signs of an uptick in economic activity and India's economy
continued its recovery. The Japanese economy continued to demonstrate a moderate recovery due
to improvements in labor and wage environments backed by higher corporate earnings.
In the midst of such circumstances, the Shimadzu Group started a new 3-year medium-term
management plan in April 2017. Based on this plan and the slogan "Become a Company That
Solves Challenges in Society in Collaboration with Partners All Around the World," we are
implementing aggressive growth measures, such as investing in advanced healthcare and otherhigh-growth fields, improving profitability by strengthening competitiveness in key businesscategories and applying AI and IoT technologies to expand the aftermarket business, andimplementing organizational foundation reforms.
As a result, for the first quarter, the Shimadzu Group posted consolidated net sales of
75,803 million yen (a year-on-year increase of 8.7 %), operating income of 3,884 million yen (ayear-on-year decrease of 13.8 %), ordinary income of 3,593 million yen (a year-on-year decrease of13.5 %), and profit attributable to owners of parent of 2,428 million yen (a year-on-year decreaseof 21.3 %).
Note that Shimadzu Group sales tend to be concentrated in the second and fourth quarters.
The results for reportable business segments were as follows.
I. Analytical & Measuring Instruments
In Japan, results were strong particularly for testing machines, liquid chromatographs, and gas
chromatographs, due to active private-sector demand in machinery, electrical products, andpharmaceutical fields and as a consequence of large public-sector projects.
Sales in North America decreased due in part to project delays. In Europe, strong sales weredriven by liquid chromatograph and mass spectrometer sales in pharmaceuticals and food fields,
fueled not only by expanding sales in Western Europe, but also by a trend towards recovery inRussia. In China, sales were strong mainly for liquid chromatographs, gas chromatographs, mass
spectrometers, and environmental measurement instruments, not only for pharmaceuticals andcontract analysis but also as a result of active private-sector demand in general, such as forchemicals and electronic/electrical products. In other Asian countries, overall sales decreased due
to stalled public-sector demand in Southeast Asia and other factors.
As a result, the Analytical & Measuring Instruments segment posted sales of 46,112 million
yen (a year-on-year increase of 8.6 %) for the first quarter.
II. Medical Systems
In Japan, sales of general radiography systems expanded, with strong sales to clinics especially.
Sales in North America increased due to high sales growth for general radiography systems, as aresult of a revision in fees for medical services that accelerated the transition to digital technology.
In Southeast Asia as well, sales increased due to growing sales of general radiography systems
based on satisfying market needs for switching to digital technology.
In China, however, though sales of multipurpose X-ray fluoroscopy systems increased, sales ofgeneral radiography systems decreased in the face of competition from domestic brands, so that
overall sales increased only slightly. In Europe, sales struggled in response to the market

slowdown in Western Europe and other factors.
As a result, the Medical Systems segment posted sales of 13,232 million yen (a year-on-yearincrease of 3.0 %) for the first quarter.
III. Aircraft Equipment
In North America, sales decreased as a consequence of a decline in commercial aircraft production
by Boeing. In Japan, however, sales were strong due to an increase in aircraft component sales
for the Japanese Ministry of Defense.
As a result, the Aircraft Equipment segment posted sales of 5,957 million yen (a year-on-yearincrease of 14.3 %) for the first quarter.
IV. Industrial Machinery
Sales of turbo-molecular pumps continued to grow in Japan, North America, China, and South
Korea, mainly on stronger demand from semiconductor manufacturing equipment and flat panel
display manufacturing equipment. Glass winder sales also increased as demand recovered forelectronic circuit boards, automobiles, and wind power generation in China. Hydraulic equipment
sales were also strong, due to expanding forklift trucks and construction machinery markets inChina.
As a result, the Industrial Machinery segment posted sales of 9,312 million yen (a year-on-yearincrease of 24.6 %) for the first quarter.
V. Other
Sales in other businesses amounted to 1,187 million yen (a year-on-year decrease of 31.6 %) for
the first quarter.
(2) Consolidated Outlook
Looking forward, modest economic recovery is expected in Japan, economic expansion is expected
in North America despite the uncertainty over political and policy changes, and in Europe,
recovery is predicted in the struggling Russian economy. A recovery trend is expected for privatesector demand in China. An economic recovery trend is expected globally.
Given the current business environment, business results are expected to progress roughly
according to plan, with no significant changes from the consolidated earnings outlook reported onMay 11, 2017.
Due to improper practices by the Aircraft Equipment Division with respect to a repair contract
with the Japanese Ministry of Defense, the Ministry suspended transactions with Shimadzu for
3.5 months, starting from June 9, 2017. However, that action will have minimal effect on businessresults.

22. Consolidated Financial Statements(1) Consolidated Balance Sheets(In million yen)
As ofJune 30, 2017
AssetsCurrent assets:
Cash and time deposits
Trade notes and accounts receivable
Marketable securities
Merchandise and products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful receivables
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets:
Investment securities
Long-term receivables
Deferred tax assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total noncurrent assets
Total assets

3

As ofMarch 31, 2017¥60,91393,54620
43,14920,482
19,817
9,244
8,828(1,149)¥254,851¥56,698
112,877—
40,58816,89919,213
9,603
8,342(1,142)¥263,080¥39,787
5,968
18,883
2,887
792
11,194¥79,514¥8,396¥39,975
5,904
18,8792,510
628
10,853¥78,751¥8,396¥14,766
183
3,901
9,847
(523)
¥28,175¥116,086¥370,937¥13,779
174
4,160
7,535
(523)
¥25,126¥112,273¥375,354

(In million yen)
As ofJune 30, 2017
Liabilities
Current liabilities
Trade notes and accounts payable
Short-term loans
Lease obligations
Accounts payable
Income taxes payable
Allowance for employees' bonuses
Allowance for director's bonuses
Provision for loss on defense equipment
Other
Total current liabilities
Long-term liabilities
Unsecured bonds
Long-term debt
Lease obligations
Liability for directors' retirement benefits
Liability for retirement benefits
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders' capital
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholders' capital
Accumulated other comprehensive income
Net unrealized gain on available-for-salesecurities
Foreign currency translation adjustments
Cumulative adjustments to retirement benefits
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

4

As of
March 31, 2017¥55,056
3,925
1,085
10,559
1,611
3,175
96
484
22,209¥98,203¥57,263
2,963
1,007
11,363
4,870
8,188
275
484
17,730¥104,147¥15,000
611
2,085
177
10,915
1,115¥29,906¥128,109¥15,000
648
1,758
184
10,708
1,277¥29,577¥133,725¥26,648
35,188173,871(886)¥234,822¥26,648
35,188174,391(885)¥235,342¥6,550¥5,850

(357)
1,513

(1,429)1,568¥7,706¥5,988¥299¥242,828¥370,937¥297¥241,629¥375,354

(2) Consolidated Statements of Operations & of Comprehensive Income
Consolidated Statements of Operations(In million yen)Three Months Ended

Three Months Ended¥75,80347,202¥28,600¥24,715¥3,884¥69,723
40,952¥28,771¥24,262¥4,508

¥50
243
30
—131
¥455

¥67
135
24399
124
¥751

¥27
80
245
393
¥747
¥3,593¥2477372
234¥1,104¥4,155

¥25
¥25

¥6
¥6

¥20

¥9—¥20¥3,597861
297¥1,159¥2,4379¥2,4287¥16¥4,144433
609¥1,043¥3,10113¥3,087

June 30, 2017

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income:Interest income
Dividend income
Insurance payments received
Subsidy received
Other
Total other income
Other expenses:
Interest expenses
Foreign exchange loss
Compensation expenses
Other
Total other expenses
Ordinary income
Extraordinary income:Gain on sale of property, plant and equipment
Total extraordinary income
Extraordinary losses:
Loss on disposal of property, plant andequipment
Loss on write-down of investment securities
Total extraordinary losses
Income before income taxes
Income taxes
Income taxes adjustments
Total income taxes and income taxes adjustments
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

June 30, 2016

Consolidated Statements of Comprehensive Income(In million yen)Three Months Ended

Three Months Ended
June 30, 2016

¥2,437¥3,101¥699¥(450)

1,076(54)¥1,722¥4,159(7,741)
316¥(7,875)¥(4,774)¥4,146¥(4,775)¥13¥1June 30, 2017

ProfitOther comprehensive income:Unrealized gain/loss on available-for-salesecurities
Foreign currency translation adjustments
Retirement benefit adjustments
Total other comprehensive income
Comprehensive income(Break down)Comprehensive income attribute to owners ofparent
Comprehensive income attribute to noncontrolling interests(3) Note on the Going-Concern Assumption
Not applicable.

5(4) Segment Information
1) Income by Business Segment
From April 1st to June 30th of fiscal year ended March 31, 2018

(In million yen)

Adjustments

Amounts
reported onthequarterly
statements
of income¥75,803—¥75,803386432¥(432)—¥74,661¥1,574¥76,235¥(432)¥75,803¥4,298¥69¥4,368¥(483)¥3,884

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems¥46,112¥13,232¥5,957

92¥46,122¥4,735

AircraftIndustrial
Equipment Machinery

Total

Other

Total

¥9,312¥74,615¥1,187231045¥13,234¥5,981¥9,322¥(583)¥(420)¥566

Net Sales(1) Sales to customers(2) Inter-segment
salesTotal Sales
Operating income(loss)

From April 1st to June 30th of fiscal year ended March 31, 2017

(In million yen)

Adjustments

Amounts
reported onthequarterly
statements
of income¥69,723—¥69,723325412¥(412)—¥68,073¥2,062¥70,135¥(412)¥69,723¥4,721¥184¥4,905¥(396)¥4,508

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems¥42,454¥12,848¥5,21233

3¥42,488¥4,931

AircraftIndustrial
Equipment Machinery

Total

OtherTotal¥7,471¥67,986¥1,736242586¥12,851¥5,236¥7,496¥(473)¥(245)¥508

Net Sales(1) Sales to customers(2) Inter-segment
sales
Total Sales
Operating income(loss)

2) Income by Geographic Segment
From April 1st to June 30th of fiscal year ended March 31, 2018Japan
¥35,214The Americas

Europe10,030

China

5,486

15,373(In million yen)
Other Asian
countries
7,346

Other
2,350

From April 1st to June 30th of fiscal year ended March 31, 2017
Japan
¥32,302

The Americas

Europe9,875

China

5,469

12,573

Other Asian
countries
7,216

Total

(In million yen)
Other
2,287

Note: Major countries or regions belonging to segments other than Japan are as follows.
Americas:

United States of America

Europe:Great Britain, Germany

China:

China

Other Asian countries:

India, Southeast Asia, Republic of Korea, Taiwan

Other:

Australia, Middle East, Africa

6¥75,803

Total¥69,723