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

May 11, 2017

Operating Results and Financial Position
1. Operating Results《For fiscal year ended March 31, 2017》(1) Consolidated Overview
In the fiscal year ended March 31, 2017, the North American economy continued its recovery trend due
to an improvement in the labor environment and firm consumer spending. The European economy
demonstrated a moderate recovery, mainly in Western Europe, despite Britain’s decision to exit theEuropean Union and other issues. China showed signs of economic improvement owing to active
government investments. 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 this economic environment, the Shimadzu Group actively promoted growth-oriented measures inaccordance with its medium-term management plan. These measures included launching global“Number One/Only One” products; opening innovation centers in North America, China, and Europe assites for collaborative R&D with leading-edge research institutes, universities, and companies;
strengthening our business base in emerging markets through the opening of a new plant in Malaysia
and other measures; expanding the aftermarket business; and launching new businesses.
As a result, for the fiscal year, the Shimadzu Group posted consolidated net sales of 342,479 million
yen (a year-on-year increase of 0.1 %), as the impact of year-on-year yen appreciation outweighed higher
sales in and outside Japan. Operating income totaled 37,089 million yen (a year-on-year increase of
3.9%), ordinary income totaled 37,039 million yen (a year-on-year increase of 6.3%), and profit
attributable to owners of parent totaled 26,473 million yen (a year-on-year increase of 10.8%). All ofthese figures represented record-high levels for the Group.
The results for reportable business segments were as follows.
I. Analytical & Measuring Instruments
In Japan, sales increased for mass spectrometers, liquid chromatographs, and non-destructive
inspection equipment as demand grew in the pharmaceutical, contract analysis, and electric industries.
In North America, although sales of mass spectrometers declined slightly due to a downturn inhealthcare industry demand, sales of liquid chromatographs grew. In Europe, sales grew year on year.
While sales to universities and public-sector institutions in Eastern Europe declined, demand for mass
spectrometers increased in Western Europe for food safety, environmental, and clinical applications.
In China, sales of liquid chromatographs and mass spectrometers grew as a result of large-scale
projects in the food safety and environmental industries, higher demand in the pharmaceutical industry
driven by compliance regulations, and new clinical medicine-related demand in the contract analysis
industry. In Southeast Asia, sales of liquid chromatographs increased, along with testing machines fora large-scale project with a transportation equipment client. In India, sales of liquid chromatographs
and mass spectrometers to pharmaceutical companies increased. Overseas sales declined overall on a
yen basis, however, due to yen appreciation.
As a result, the Analytical & Measuring Instruments segment posted sales of 209,237 million yen (ayear-on-year increase of 0.4%) for the fiscal year.
II. Medical Systems
In Japan, sales of X-ray diagnosis systems increased strongly, primarily for angiography systems.
In North America, sales increased for high-end X-ray fluoroscopy systems capable of performing
multiple types of diagnoses. In Europe, sales decreased overall due to a reactionary decline following
large-scale projects in Eastern Europe in the previous year, along with lower sales in some EU member

countries due to delayed budget allocations. In China, although competition with local companies
intensified, sales increased steadily on higher demand for angiography systems and other equipment.
Overseas sales declined overall due to yen appreciation.
As a result, the Medical Systems segment posted sales of 64,376 million yen (a year-on-year decreaseof 0.3%) for the fiscal year.
III. Aircraft Equipment
In Japan, sales of aircraft components to the Ministry of Defense declined slightly compared with theprevious year. Overseas, although sales of replacement parts to commercial aircraft companies
increased, sales declined overall due to the impact of yen appreciation and lower demand.
Overall, the Aircraft Equipment segment posted sales of 26,728 million yen (a year-on-year decrease of
7.3%) for the fiscal year.
IV. Industrial Machinery
Sales of turbo-molecular pumps grew in Japan, North America, China, and South Korea, mainly onstronger demand from semiconductor manufacturing equipment as well as liquid crystal and organic
electroluminescence display manufacturing companies. Sales of hydraulic equipment rose slightly
despite overall market stagnation, as demand remained strong in Japan for specially equippedindustrial vehicles, while in China, sales rebounded from the second half mainly among construction
machinery and industrial vehicle manufacturers.
Overall, the Industrial Machinery segment posted sales of 36,158 million yen (a year-on-year increaseof 7.9%) for the fiscal year.
V. Other
Sales in the Other businesses segment amounted to 5,978 million yen (a year-on-year decrease of
13.0%) for the fiscal year.

<Consolidated Outlook>
Regarding the future economic outlook, Japan is expected to continue its moderate economic recovery
despite risks of downturn stemming from concerns over overseas economic trends and yen appreciation.
Outside Japan, the United States is expected to continue demonstrating steady economic growthfollowing the launch of the new government administration, while Europe is expected to realize
moderate expansion buoyed mainly by growth in leading nations. Southeast Asia is expected to post
firm growth, and India’s economic growth is also expected to continue. Overall, therefore, the global
economic is expected to demonstrate moderate economic recovery.
Uncertainties have increased, however, in the outlooks for some areas of the global economy, namely
government policy trends in the United States, Britain’s exit from the European Union and politicaltrends in European countries, along with the moderate decline in China’s economic growth.
In this environment, the Shimadzu Group is launching a new three-year medium-term management
plan from April 2017 under the slogan, “Become a Company That Solves Challenges in Society in
Collaboration with Partners All Around the World.” The new plan seeks to expand business throughthree core business fields: (1) Human health, (2) Safe and secure societies, and (3) Industrial
development.
In FY 2017, the first year of the new medium-term management plan, the Shimadzu Group will focus
its efforts on steadily accomplishing the following initiatives.
1) Business growth through investments in growth fields① We will prioritize healthcare, which is considered an international social issue, by making healthcare
our four core field alongside infrastructure, materials, and environment and energy. We will enhance
the fusion between analytical & measuring instruments and medical systems to generate newhealthcare businesses which leverage our strengths.
② We will strengthen collaboration with universities, research institutes, companies, and otherexternal partners, mainly in the four above core fields, to better utilize IoT, AI, robotics and other new
technologies for the purpose of solving society’s issues at an even higher level of expertise.
③ We will strengthen our capital investments through higher R&D spending in priority products, aswell as investments in innovation centers, our R&D sites dedicated to promoting global open
innovation.
④ We will strengthen our investments in the reagent and consumables businesses and take othermeasures to expand the aftermarket business.
22) Structural business reforms through strengthened earnings① Regarding priority products, we will actively make investments aimed at strengthening development
capabilities for new products. Regarding unprofitable business and products, we will accelerate
restructuring initiatives, including business rebuilding measures and potential business exits. Throughthese measures, we will strengthen the earnings foundation of each business.
② We will prioritize the improvements of earnings in the aftermarket business, accelerating the use of
new IoT-based new services and AI to strengthen earnings power.
③ We will expand earnings by creating highly competitive new products and applications that increase
our differentiation from competitors.
3) Establishment of strong business foundations through organization foundation reforms① We will implement planned training programs to nurture human resources capable of doing businessfrom a global perspective, while also enhancing employee skills by promoting diversity and exchanges
in and outside the company. At the same time, we will actively promote work-style reforms, healthmanagement, and environmental management.
② We will deepen collaboration between global sites and strengthen company-wide functions required
to develop business on a global scale.
③ We will seek to raise productivity by actively promoting the use of IoT, AI and other new technologies
throughout all the functions of the company.

(In Million Yen)
outlookYear ended March 31, 2018
Net sales
1st halfYear
Operating income
1st halfYear
Ordinary income
1st halfYear
Profit attributable to ownersof parent
1st halfYear

3Year-on-year increase, (%)

165,000
355,000

6.6
3.7

15,50038,0001.7
2.5

15,00038,0002.8
2.6

10,50027,0001.7
2.0

(2) Financial Condition<Assets at March 31, 2017>
As of March 31, 2017, total assets were 375,354 million yen, an increase of 25,555 million yen comparedto the end of the previous fiscal year, reflecting increases of 9,790 million yen in cash and time deposits
and 7,447 million yen in trade notes and accounts receivable. Net assets increased by 21,657 million yen
compared to the end of the previous fiscal year to 241,629 million yen due to increases of 20,632 million
yen in retained earnings and 2,938 million yen in cumulative adjustments to retirement benefits, and adecrease of 2,723 million yen in foreign currency translation adjustments.
<Cash Flows>
Cash and cash equivalents at March 31, 2017 increased 9,253 million yen versus March 31, 2016, to
52,762 million yen. The cash flow status for FY 2016 is described below.
I. Cash Flow from Operating Activities
Cash flow from operating activities resulted in an inflow of 29,608 million yen, which is a 2,739 million
yen decrease from the previous year. The primary cash flows from operating activities include a 3,670
million yen outflow due to trade receivable increases/decreases, a 2,454 million yen outflow due toinventories increases/decreases, and a 2,906 million yen inflow due liability for retirement benefits
increases/decreases.
II. Cash Flow from Investing Activities
Cash flow from investing activities resulted in an outflow of 12,304 million yen, which is a 797 million
yen decrease from the previous year. The primary cash flows from investing activities include a 11,013
million yen outflow from capital investment.
III. Cash Flow from Financing Activities
Cash flow from financing activities resulted in an outflow of 7,294 million yen, which is a 4,395 million
yen decrease from the previous year. The primary cash flows from financing activities include a 5,597
million yen outflow from cash dividends paid and a 1,092 million yen outflow from payment of financelease obligations.
<Trend in Cash Flow Indices>
Year
Year
ended
ended
March 31, March 31,
2013
2014
Equity Ratio (%)
Equity Ratio on a Market Value
Basis (%)
Years of Debt Redemption(Years)Interest Coverage Ratio (times)

Year
Year
ended
ended
March 31, March 31,
2015
2016

Year
ended
March 31,
2017

57.7

53.4

61.7

62.8

64.3

65.9

79.4

116.4

148.8

138.9

2.5

―

0.6

0.6

0.6

33.3

―

142.9

177.0

214.2

Note: Equity Ratio = (net assets – non-controlling interests)/total assets
Equity ratio on a Market price = market capitalization /total assets
Years of Debt Redemption = Interest bearing debt/Cash flow from operating cash flow
Interest Coverage Ratio = Cash flow from operating activities/interest payment
1: All indices are calculated on a consolidated basis.
2: Market capitalization is calculated based on market price on last trading day of March eachyear multiplied by total shares outstanding at end of period (excluding treasury stock).
3: Operating cash flow is the net cash provided from operating activities in the consolidated
statements of cash flows. Interest-bearing debt is the short-term loans, long-term debt,
commercial paper and bonds listed among the liabilities on the consolidated balance sheet.
Interest payment is the interest paid in the consolidated statements of cash flows.
.

4(3) Dividend Policy and Dividends for the Fiscal Years Ended March 31, 2017 and 2018
Shimadzu views the return of profits to shareholders as a key management objective.
We aim to maintain a stable dividend while taking into account earnings performance and cash flows.
We also maintain sufficient internal reserves to fund capital expenditures, R&D, and strategic
investments which can support business growth over the medium to long term and raise earnings. We
will continue making every effort to maintain stable financial conditions, while strengthening earnings
and raising our return on equity.
Regarding year-end dividends, for the fiscal year ended March 31, 2016, we paid a common dividend of
9 yen per share. For the fiscal year ended March 31, 2017, we plan to pay a year-end dividend of 10 yen
per share. Combined with the interim dividend of 10 yen per share, the total annual dividend will be 20
yen per share, an increase of 2 yen from the previous fiscal year.
For the fiscal year ending March 31, 2018, we currently plan to pay an interim dividend of 11 yen anda year-end dividend of 11 yen per share, for a total annual dividend of 22 yen per share, an increase of 2
yen from the previous fiscal year.

2. Basic Stance on Selecting Accounting Standards
The Shimadzu Group currently presents its consolidated financial statements based on Japanese
accounting standards to facilitate comparison with results from other years and comparison with theresults of other companies.
Regarding International Financial Reporting Standards (IFRS), we will take appropriate measures
based on various circumstances in and outside Japan.

53. Consolidated Financial Statements(1) Consolidated Balance Sheets(In million yen)

AssetsCurrent assets:
Cash and time deposits
Trade notes and accounts receivable
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

6

As of
March 31, 2017

As ofMarch 31, 2016

￥56,698
112,877
40,58816,89919,213
9,603
8,342(1,142)￥263,080￥46,907
105,430
40,49715,457
17,715
9,729
7,086(1,157)￥241,666￥39,975
5,904
18,8792,510
628
10,853￥78,751￥8,396￥39,035
5,912
18,602
2,179
728
9,699
￥76,158￥7,558

13,779
174
4,160
7,535
(523)
￥25,126￥112,273￥375,354

14,654
175
6,388
3,565
(368)
￥24,415￥108,131￥349,798

(In million yen)

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 income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of
March 31, 2017

As ofMarch 31, 2016

￥57,263
2,963
1,007
11,363
4,870
8,188
275
484
17,730￥104,147￥52,422
3,056
940
11,523
4,997
8,093
284
374
15,893￥97,587￥15,000
648
1,758
184
10,708
1,277￥29,577￥133,725￥15,000
1,094
1,451
182
13,682
828￥32,239￥129,827￥26,648
35,188174,391(885)￥235,342￥26,648
35,188
153,758(861)￥214,734￥5,850￥5,036(1,429)1,568￥5,988￥297￥241,629￥375,354

1,293(1,370)￥4,959￥277￥219,971￥349,798

(2) Consolidated Statements of Operations & of Comprehensive Income
Consolidated Statements of Operations(In million yen)
Year ended

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
Other
Total other expenses
Ordinary income
Extraordinary income:Gain on sale of property, plant and equipment
Total extraordinary income
Extraordinary losses:
Impairment loss
Loss on disposal of property, plant andequipment
Loss on write-down of investment securities
Provision for loss on defense equipment
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

Year ended

March 31, 2017

March 31, 2016

￥342,479
206,070￥136,409
99,319￥37,089￥342,236
201,850￥140,385
104,683￥35,701

￥224
211
228
493
654
￥1,812

￥197
199
242
419
780
￥1,839

￥138
72
1,651
￥1,862￥37,039

￥182
1,045
1,472
￥2,700￥34,840

￥32
￥32

￥37
￥37

￥780
176

―
￥209

1
―
￥958
￥36,113
8,763
819￥9,582￥26,53057￥26,473

273
374
￥856
￥34,0219,618
436￥10,054￥23,966
66￥23,899

Consolidated Statements of Comprehensive Income(In million yen)
Year ended

March 31, 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 ofparentComprehensive income attribute to
non-controlling interests

8

Year ended

March 31, 2016

￥26,530￥23,966￥813￥(163)(2,451)
2,938￥1,301￥27,832(5,535)(3,210)￥(8,910)￥15,056￥27,787￥15,002￥45￥53

(3) Consolidated Statements of Changes in Equity
Fiscal year ended Mar. 31 2017 (Apr. 1, 2016 to Mar. 31, 2017)
Capital stock
Balance at beginning ofcurrent period

26,648(In million yen)

Shareholders’ equity
Retained
Treasury
earnings
sharesCapitalsurplus35,188

153,758

Total
shareholders’equity214,734△861

Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Changes in scope of
consolidation
Purchase of treasury
shares△5,601△5,601

26,473

26,473

△238

△238
△24

△24

Net changes of items
other than shareholders’equityTotal changes of items
during period――

20,632△24

20,607

Balance at end of current
period26,64835,188174,391△885

235,342

Accumulated other comprehensive income
Non-contr Total net
Valuation
Foreign
Remeasurements
Totalollingdifference on
currencyof defined benefit
accumulated
assetsinterests
available-for- translation
plans
other
sale securities adjustment
comprehensive
incomeBalance at beginning of

5,036

1,293

△1,3704,959

277

219,971

current period
Changes of items during
periodDividends of surplus△5,601

Profit attributable

26,473to owners of parent
Changes in scope of△238

consolidation
Purchase of treasury△24

sharesNet changes of813△2,723

2,938

1,029

19

1,049

813

△2,723

2,938

1,029

19

21,6575,850△1,429

1,568

5,988

297

241,629

items other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

9(In million yen)

Fiscal year ended Mar. 31 2016 (Apr. 1, 2015 to Mar. 31, 2016)
Capital stock
Balance at beginning ofcurrent period

26,648

Shareholders’ equity
Retained
Treasury
earnings
sharesCapitalsurplus35,188

134,781

Total
shareholders’equity195,912△796

Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Changes in scope of
consolidation
Purchase of treasury
shares△5,012△5,012

23,89923,899

―

―
△64

△64

Net changes of items
other than shareholders’equityTotal changes of items
during period――

18,886△64

18,822

Balance at end of current
period26,64835,188

153,758△861

214,734

Accumulated other comprehensive income
Non-contr Total net
Valuation
Foreign
Remeasurements
Totalollingdifference on
currencyof defined benefit
accumulated
assetsinterests
available-for- translation
plans
other
sale securities adjustment
comprehensive
incomeBalance at beginning of

5,200

6,816

1,839

13,856248

210,017current period
Changes of items during
periodDividends of surplus△5,012

Profit attributable

23,899to owners of parent
Changes in scope of―

consolidation
Purchase of treasury△64

sharesNet changes of△163△5,522△3,210△8,89628△8,868△163△5,522△3,210△8,896

28

9,954

5,036

1,293

△1,3704,959

277

219,971

items other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period10(4) Consolidated Statements of Cash Flows(In million yen)
Year ended

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for director’s bonuses
Increase (decrease) in liability for retirement benefits
Interest and dividends income
Interest expense
Foreign exchange (gain) loss, net
Net (gain) loss on sale and valuation of investment
securities
Net (gain) loss on sale and disposal of property, plant andequipment(Increase) decrease in trade receivables(Increase) decrease in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Increase in long term receivables
Decrease in long term receivables
Purchase of subsidiary
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Borrowing of short-term loans
Repayment of short-term loans
Borrowing of long-term debt
Repayment of long-term debt
Cash dividends paid
Dividends payments to non-controlling interests
Repayment of guarantee deposits received
Payment of finance lease obligations
Other, net
Net cash (used in) financing activities
Foreign currency translation adjustments on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Increase in cash and cash equivalents due to inclusion ofsubsidiaries in consolidation
Cash and cash equivalents, end of period(5) Note on the going-concern assumption
Not applicable.

11

Year ended

March 31, 2017

March 31, 2016

￥36,113
9,546
780
144
103
(5)
1,189
(435)
138
(2)

￥34,021
9,425
―
21
847
(20)
(1,716)
(396)
182
29

―

273

144

172

(7,911)(3,816)
5,182(2,676)￥38,495
433(138)(9,183)￥29,608(4,241)(1,361)
2,305
2,087￥41,629398(182)(9,496)￥32,348￥(11,013)
212
(5)
(41)
36
(886)
(605)
￥(12,304)￥(11,333)
413(1,575)
(45)
82
―
(642)
￥(13,101)

￥495
(550)
50
(540)
(5,597)(14)(21)(1,092)(24)￥(7,294)￥310(6,031)880(666)(5,008)(25)(21)(1,061)(64)￥(11,689)￥(1,222)￥(2,471)￥8,787￥43,508￥5,086￥38,422466―￥52,762￥43,508

(6) Segment Information
1)Income by Business Segment
From April 1st to March 31th of Fiscal year ended March 31, 2017

(In million yen)

Adjustments

Amounts
reported onthequarterlystatements
of income￥342,479―￥342,479

1,760￥(1,760)―￥7,476￥344,240￥(1,760)￥342,479￥882￥39,304￥(2,214)￥37,089

Adjustments

Amounts
reported onthequarterlystatements
of income

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems￥209,237￥64,376￥26,728

84

11

84

￥209,321￥64,387￥33,052￥1,922

AircraftIndustrial
Equipment Machinery

Total

Other

Total

￥36,158￥336,501￥5,978

82

263

1,497

￥26,813￥36,241￥336,764￥775￥2,670￥38,421

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

From April 1st to March 31th of Fiscal year ended March 31, 2016

(In million yen)

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems￥208,402￥64,597￥28,848

77

14

81

￥208,480￥64,612￥32,959￥1,045

AircraftIndustrial
Equipment Machinery

Total

Other

Total

￥33,517￥335,365￥6,870￥342,236―￥342,236

72

246

1,325

1,572

￥(1,572)―￥28,930￥33,589￥335,612￥8,196￥343,808￥(1,572)￥342,236￥346￥2,206￥36,558￥1,265￥37,824￥(2,122)￥35,701

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

2) Income by Geographic Segment
From April 1st to March 31th of Fiscal year ended March 31, 2017Japan
￥175,905

The Americas

Europe42,507

24,894

China
56,149(In million yen)
Other Asian
countries
32,951

Other
10,070From April 1st to March 31th of Fiscal year ended March 31, 2016
Japan
￥167,940

The Americas

Europe46,00327,322

China
56,135

Other Asian
countries
32,328

United States of America

EuropeGreat Britain, Germany

China

China

Other Asian countries

India, Southeast Asia, Republic of Korea, Taiwan

Other

Australia, Middle East, Africa

12￥342,479(In million yen)Other
12,506Note. Major countries or regions belonging to segments other than Japan are as follows:
Americas

Total

Total
￥342,236