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 Year Ended March 31, 2021
(Based on Japanese GAAP)May 12, 2021
Company name:Shibaura Machine Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6104

URL

https://www.shibaura-machine.co.jp

Representative:

President and Chief Operating Officer
Public Relations & Investor Relations

Shigetomo SakamotoInquiries:

Department
Senior Manager

Minoru Aoki

TEL

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 21, 2021
June 21, 2021

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

May 31, 2021
Yes

Holding of 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 year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
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%
Year ended March 31, 2021
92,635(20.7)
381 (89.2)
872(77.2)(2,898)–Year ended March 31, 2020
116,761(0.5)
3,529(8.0)
3,825(31.4)
7,338
79.9
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(3.4)
0.6
0.4
–
8.62.5
3.0

Diluted earnings pershare

Earnings per shareYen(120.05)304.06

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
134,296
154,283

Millions of yen
82,15287,018Cash flows fromoperating activities
Millions of yen
192
5,312

Cash flows frominvesting activities
Millions of yen(1,537)
19,772

Net assets per share%
61.2
56.4

Yen
3,402.36
3,605.47(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(4,956)42,417(1,964)48,011

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYenYen

Millions of yen%%––42.50
37.50

––

42.50
37.50

85.00
199.30

2,051
4,810

28.0
–

2.4
5.7

–

37.50

–

37.50

75.00

1

181.1

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Millions of yen
Six months ending
September 30, 2021
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

52,00022.9800–300–0––106,00014.4

2,700607.1

2,200

152.0

1,000–41.42

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

29,977,106 shares As of March 31, 2020

29,977,106 shares

Number of treasury shares at the end of the period
As of March 31, 2021

5,831,373 shares As of March 31, 2020

5,841,960 shares

24,141,713 shares Year ended March 31, 2020

24,135,286 shares

Average number of shares during the period
Year ended March 31, 20212

Consolidated financial statements
Consolidated balance sheets(Millions of yen)As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade47,90736,06442,417
27,682

Securities
Merchandise and finished goods

104
9,052

–
6,736

Work in process
Raw materials and supplies

26,87767

22,32764

Other
Allowance for doubtful accounts

2,340
(49)

3,560
(37)

122,364

102,752

39,014(28,429)

39,252(29,348)

Buildings and structures, net

10,584

9,903

Machinery, equipment and vehicles
Accumulated depreciation

24,224(22,073)

24,421(21,703)

2,151

2,718

7,049
240

7,098
264

(150)

(153)

89

111

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

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

135

474

7,327
(6,797)

7,238(6,786)529

452

20,541

20,758

Other

561

571

Total intangible assets

561

571

Investment securities
Long-term loans receivable

6,560
13

8,341
6

Deferred tax assets
Other

3,142
2,149

409
2,765

Other
Accumulated depreciationOther, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts(1,048)(1,310)Total investments and other assets

10,816

10,213

Total non-current assets
Total assets

3

31,91831,543

154,283

134,296(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade21,27917,613

Short-term borrowings
Income taxes payable

10,0907,218

10,59074

Accrued expenses
Provision for bonuses

5,351
–

2,341
1,096Provision for product warranties
Advances received

720
6,403

591
5,345

Other

1,941

1,316

Total current liabilities

53,00638,969

4,300
5

3,800
52570

Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

4158

9,770

8,518

Asset retirement obligations
Other52
85

105
115

Total non-current liabilities

14,25813,174

67,264

52,144

Shareholders' equity
Share capital

12,484

12,484

Capital surplusRetained earnings

11,53877,35911,53869,522

Treasury shares(16,376)(16,346)

Total shareholders' equity

85,006

77,198Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,334
0

3,749
–

Foreign currency translation adjustment
Remeasurements of defined benefit plans843(1,165)

1,737
(533)

Total liabilities
Net assets

Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

42,012

4,953

87,01882,152

154,283

134,296Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

116,761

92,635

Cost of sales

83,30167,730Gross profit

33,45924,904

Sales commission
Packing and transportation costs

1,486
3,595

1,223
2,842

Provision for product warranties
Employees' salaries and allowances

625
11,914491
11,195

652
746

684
738

Rent expenses
Travel and transportation expenses

804
1,238

911
561

Research and development expenses
Outsourcing expenses

1,682
588

1,404
468

Selling, general and administrative expenses

Retirement benefit expenses
Depreciation

Other

6,596

4,000

Total selling, general and administrative expenses

29,93024,522

3,529381

Operating profit
Non-operating income
Interest income

4359

Dividend income
Rental income

512
50

212
45

Share of profit of entities accounted for using equity method
Subsidies for employment adjustment

728–

–
677

Subsidy income
Foreign exchange gains

–
76

220
348

Other271

282

1,683

1,847

Interest expenses
Brand fee expense

81124

840Outsourcing expenses
Other862
318

655
615

1,387

1,356

3,825

872

613

Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates

2610,135

132–

Total extraordinary income

10,168145

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

5

(Millions of yen)

Extraordinary losses
Loss on disposal of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
10378

Loss on valuation of shares of subsidiaries and associates
Loss on valuation of investment securities

–311

35–

Impairment losses
Extra retirement payments

19911

371
264

Total extraordinary losses

1,345

750

Profit before income taxes

12,648267

Income taxes - current

7,621

403

Income taxes - deferred(2,312)

2,762

Total income taxes

5,309

3,165

Profit (loss)

7,338(2,898)

Profit (loss) attributable to owners of parent

7,338(2,898)

6Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
7,338

(2,898)Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(536)
0

1,415(0)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(867)
(228)

893
632

77

–

Total other comprehensive income(1,554)

2,941

Comprehensive income

5,784

43

5,784

43

–

–

Share of other comprehensive income of entities accounted
for using equity method

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

7Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

12,484Retained earnings

11,538

Total shareholders'equity

Treasury shares

71,983(16,375)

79,630Changes during period
Dividends of surplus(1,930)(1,930)

Profit (loss) attributable toowners of parent

7,338

7,338

Purchase of treasury shares(1)

Decrease by businesscombination

(31)

(1)
(31)

Restricted stock option
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

5,376

(1)

5,375

12,484

11,53877,359(16,376)

85,006

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

2,844

0

1,711

(988)

3,566

Total net assets

83,197

Changes during period
Dividends of surplus(1,930)

Profit (loss) attributable toowners of parent

7,338

Purchase of treasury shares(1)

Decrease by businesscombination(31)

Restricted stock option
Net changes in items otherthan shareholders' equity(510)

0(867)(176)(1,554)(1,554)

Total changes during period(510)

0(867)(176)(1,554)

3,820

Balance at end of period

2,334

0843

(1,165)2,012

87,0188

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

12,484Retained earnings

11,538

Total shareholders'equity

Treasury shares

77,359(16,376)

85,006

Changes during period
Dividends of surplus(4,931)(4,931)

Profit (loss) attributable toowners of parent(2,898)(2,898)Purchase of treasury shares

(0)

(0)

(7)

30

22

Decrease by businesscombination
Restricted stock option
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––(7,837)29(7,807)

12,484

11,53869,522(16,346)

77,198

Accumulated other comprehensive incomeBalance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

2,334

0843

(1,165)

2,012

Total net assets

87,018Changes during period
Dividends of surplus(4,931)

Profit (loss) attributable toowners of parent(2,898)Purchase of treasury shares(0)

Decrease by businesscombination
Restricted stock option

22

Net changes in items otherthan shareholders' equity

1,415(0)Total changes during period

1,415(0)Balance at end of period

3,749–893

9632

2,941

2,941

893

632

2,941

(4,866)

1,737(533)

4,953

82,152

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
12,648

267

1,781
19

1,755
371

Extra retirement payments
Increase (decrease) in allowance for doubtful accounts

911662

264
249

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties–115

1,096(128)816

Increase (decrease) in retirement benefit liability
Interest and dividend income

66(556)

(618)
(271)

Interest expenses
Loss (gain) on sale of investment securities

81(26)

81(132)

Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities(10,135)
311––

Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sale and retirement of property, plant and–

35

96

64

Depreciation
Impairment losses

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

equipment and intangible assets
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables

(728)

–

1,341

8,382

Decrease (increase) in inventories
Increase (decrease) in trade payables

6,023(6,973)

6,868(3,616)

Increase (decrease) in advances received
Increase (decrease) in accrued expenses(1,438)495(1,058)(3,003)

Increase (decrease) in deposits received
Increase (decrease) in accounts payable - other(279)
(301)

(49)
(38)

Other, net

1,577(1,498)Subtotal

5,702

9,039

827

271

(80)
(1,137)(88)(7,857)

Interest and dividends received
Interest paid
Income taxes refund (paid)
Extra retirement payments–(1,172)

5,312

192

(1,424)13(1,545)
16(92)
208

(219)
320

(98)
21,525––

Payments for investments in capital of subsidiaries andassociates

(379)

–

Decrease (increase) in short-term loans receivable
Proceeds from collection of long-term loans receivable

(3)
3(16)
6Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates

Other, net
Net cash provided by (used in) investing activities

1020(99)

19,772(1,537)

(Millions of yen)

Cash flows from financing activities
Purchase of treasury sharesFiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
(1)

(0)

Dividends paid
Other, net(1,930)(33)(4,931)(24)

Net cash provided by (used in) financing activities(1,964)(4,956)

Effect of exchange rate change on cash and cash equivalents

(701)

708

Net increase (decrease) in cash and cash equivalents

22,419(5,593)

Cash and cash equivalents at beginning of period

25,59248,011

Cash and cash equivalents at end of period

48,01142,417

11