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

Operating Results and Financial Position《For The Nine Months ended December 31, 2016》
1. Operating Results(1) Consolidated Overview
In the nine months ended December 31, 2016, 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 despite Britain’s decision to exit theEuropean Union and other issues. China showed signs of economic improvement owing to various
government investments. Southeast Asia also showed signs of an uptick in economic activity andIndia’s economy continued its recovery. The Japanese economy continued to demonstrate amoderate 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 in accordance with its medium-term management plan. These measures included
launching global “Number One/Only One” products, expanding collaborative R&D with North
American universities and other 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, bolstering the aftermarket business, and launching newbusinesses.
As a result, for the first nine months of the fiscal year, the Shimadzu Group posted consolidated
net sales of 236,314 million yen (a year-on-year decrease of 2.0 %), as the impact of yen
appreciation outweighed higher sales in and outside Japan. Operating income totaled 21,945
million yen (a year-on-year decrease of 1.3%),while ordinary income totaled 22,578 million yen (ayear-on-year increase of 1.4%), and profit attributable to owners of parent totaled 15,827 million
yen (a year-on-year increase of 3.6%).
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, sales increased on higher demand for liquid chromatographs, mass spectrometers,
surface analyzers, and non-destructive inspection equipment in the pharmaceutical, chemical,
transportation equipment and other industries.
In North America, although sales of mass spectrometers slowed due to a temporary decline inhealthcare industry demand, sales of liquid chromatographs and other equipment grew. InEurope, sales were on par with the previous year. Demand for mass spectrometers increased inWestern Europe for food safety, environmental and clinical applications, while in Eastern Europe
there was a reactionary decline in sales to universities and public-sector institutions. In China,
sales of liquid chromatographs and mass spectrometers grew, as private-sector demand remainedrobust among pharmaceutical and contract analysis companies, and public-sector demand rose
for food safety and other large-scale projects. In Southeast Asia, sales of liquid chromatographs
increased, along with testing machines for a large-scale project with a transportation equipment
client. In India, sales of liquid chromatographs and mass spectrometers to pharmaceuticalcompanies increased. Overseas sales declined overall, however, due to yen appreciation.
As a result, the Analytical & Measuring Instruments segment posted sales of 144,430 million yen(a year-on-year decrease of 2.5%) for the first nine months of the fiscal year.
II. Medical Systems
In Japan, sales of X-ray diagnosis systems increased, primarily for X-ray fluoroscopy systems andangiography systems.
In China, sales increased for high-end X-ray fluoroscopy systems capable of performing
multiple types of diagnoses. In North America and Europe, sales of angiography systems

increased. Overseas sales declined overall due to yen appreciation.
As a result, the Medical Systems segment posted sales of 43,489 million yen (a year-on-year
decrease of 2.5%) for the first nine months of the fiscal year.
III. Aircraft Equipment
In Japan, sales of aircraft components to the Ministry of Defense were flat compared with theprevious year. Overseas, sales declined due to the impact of yen appreciation and a decrease insales of commercial aircraft components.
Overall, the Aircraft Equipment segment posted sales of 17,906 million yen (a year-on-year
decrease of 7.1%) for the first nine months of the fiscal year.
IV. Industrial Machinery
Sales of turbo-molecular pumps grew in Japan, China, and South Korea, mainly on stronger
demand from semiconductor manufacturing equipment as well as liquid crystal and organic
electroluminescence display manufacturing companies. Sales of hydraulic equipment slumped as
demand for industrial vehicles stalled and yen appreciation impacted results.
Overall, the Industrial Machinery segment posted sales of 26,164 million yen (a year-on-yearincrease of 5.5%) for the first nine months of the fiscal year.
V. Other
Sales in the Other businesses segment amounted to 4,323 million yen (a year-on-year decrease of4.2%) for the first nine months of the fiscal year.

(2) Consolidated Outlook
Looking forward, despite the need to monitor U.S. economic policies, the impact of Britain’s exitfrom the European Union, and other issues, economic recovery in emerging markets and firm
economic growth in the United States are expected to underpin a moderate recovery trend for theglobal economy as a whole.
In this environment, the Shimadzu Group is making progress on its three-year medium-term
management plan launched in April 2014 based on our long-term vision "Toward Becoming aTrue Global Business." The basic policy behind the plan is to "Become an Innovative CompanyContributing to Growth of Global Customers." On the basis of this policy, in FY2016, the last yearof our current management plan, we are striving to implement growth strategies to increase
Shimadzu's corporate value, reform the profit structure, and strengthen our global organizationand structure to achieve the performance targets of the final year. With an eye towards furthergrowth, we are also formulating a new medium-term management plan to begin from fiscal 2017
which can ensure the Shimadzu Group’s sustainable growth and raise corporate value over themedium and long term.
Regarding the earnings forecast for the full year ending March 31, 2017, there is no change to theforecast announced May 11, 2016.

2. Other Information(1) Changes in the consolidation status (scope of consolidation) of material subsidiaries during the period
Not applicable(2) Use of simplified accounting procedures and/or accounting procedures specific to the preparation ofquarterly consolidated financial statements
Not applicable(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective Restatements
Not applicable2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

3

As of
December 31, 2016

As ofMarch 31, 2016

￥49,037
97,25944,571
20,855
19,141
7,439
9,503(1,268)￥246,539￥46,907
105,430
40,49715,457
17,715
9,729
7,086(1,157)￥241,666￥40,260
5,921
19,0622,269
767
10,494￥78,776￥8,513￥39,035
5,912
18,602
2,179
728
9,699
￥76,158￥7,55813,513190
5,371
3,714(328)￥22,460￥109,750￥356,290

14,654175
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

4

As of
December 31, 2016

As ofMarch 31, 2016

￥54,216
3,666
971
11,850
1,274
3,452
206
374
20,091￥96,103￥52,422
3,056
940
11,523
4,997
8,093
284
374
15,893￥97,587￥15,000
716
1,523
176
11,284
1,123￥29,824￥125,928￥15,000
1,094
1,451
182
13,682
828￥32,239￥129,827￥26,648
35,188
163,684(883)￥224,638￥26,648
35,188
153,758(861)￥214,734￥5,668￥5,036644(893)￥5,419￥303￥230,361￥356,290

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)
Nine Months ended

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income:Interest income
Dividend income
Insurance payments received
Foreign exchange income
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
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

Nine Months ended

December 31, 2016

December 31, 2015

￥236,314
141,646￥94,667
72,722￥21,945￥241,255
140,720￥100,535
78,290￥22,245

￥177
209
85
440
405
416
￥1,733

￥154
195
86－
426
506
￥1,368￥83－
1,017￥1,100￥22,578

￥127
304
920
￥1,351￥22,261

￥15
￥15

￥34
￥34

￥201
92－
￥156

－
￥293
￥22,300
3,483
2,944￥6,427￥15,87245￥15,82788￥244￥22,0525,157
1,561￥6,719￥15,33262￥15,270

Consolidated Statements of Comprehensive Income(In million yen)

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
non-controlling interests

5

December 31, 2016

Nine Months ended

Nine Months ended
December 31, 2015

￥15,872￥15,332

￥632

￥561

(370)
477
￥738
￥16,611(1,071)230￥(279)￥15,053￥16,571￥15,000￥39￥52

(3) Note on the going-concern assumption
Not applicable.

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

(In million yen)

Adjustments

Amounts
reported onthequarterly
statements
of income￥236,314―￥236,314

1,284￥(1,284)―￥5,427￥237,598￥(1,284)￥236,314￥501￥23,217￥(1,272)￥21,945

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems￥144,430￥43,489￥17,90650

763￥144,481￥43,497￥20,743￥(114)

AircraftIndustrial
Equipment Machinery

Total

OtherTotal￥26,164￥231,991￥4,323

57

179

1,104

￥17,970￥26,222￥232,171￥247￥1,839￥22,715Net Sales(1) Sales to customers(2)Inter-segment
sales
Total Sales
Operating income(loss)

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

(In million yen)

Adjustments

Amounts
reported onthequarterly
statements
of income￥241,255―￥241,255

1,135￥(1,135)―￥5,467￥242,391￥(1,135)￥241,255￥850￥23,459￥(1,214)￥22,245

Reportable segment

Analytical &Measuring
Instruments

MedicalSystems￥148,078￥44,599￥19,27556

660￥148,134￥44,606￥21,549￥(225)

AircraftIndustrial
Equipment Machinery

Total

OtherTotal￥24,791￥236,744￥4,510

55

179

956

￥19,335￥24,847￥236,924￥(163)￥1,448￥22,608

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

2) Income by Geographic Segment
From April 1st to December 31th of Fiscal year ended March 31, 2017
Japan
￥114,705

The Americas

Europe31,250China

17,760

Other Asian
countries

41,17024,408(In million yen)
OtherTotal

7,018￥236,314

From April 1st to December 31th of Fiscal year ended March 31, 2016
(In million yen)Japan
￥109,896

The Americas

Europe35,828

China

20,31642,044

Other Asiancountries
24,389

Other
8,780

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

United States of America

EuropeGreat Britain, Germany

China

China

Other Asian countries

India, Southeast Asia, Republic of Korea, Taiwan

Other

Australia, Middle East, Africa
6Total￥241,255