Financial Results Summary Material

FY Ending in March 2022
Financial Report for 2Q(Consolidated Base)
November 16, 2021
SHIBAURA MACHINE CO., LTD.

FY Ending in March 2022
Financial Results Overview for 2Q(Consolidated Base)
1) Main points of financial results2) Comparison with business results
forecast
3) Comparison with same period ofprevious year2

Main points of financial results for 2Q FY2021

Increased revenue and profits year on year
◼ Orders received• The trend of recover continued after hitting bottom in 1Q FY2020
when business was significantly affected by the spread of COVID-19infection.
• Orders increased remarkably year on year in all segments mainly inJapan, U.S. and China.
• The number of orders received for LiB separator film productionlines for EV increased significantly.
◼ Sales• Sales increased year on year mainly with metal & plastics industrial
machine segment.
◼ Operating profit, ordinary profit, quarterly net profit• Profits increased year on year due to an increase of sales volume
and improved plant operation capacity.
• Deterioration effect of increasing costs of parts procurement waslimited.
3Summary of Results(Comparison with business forecast)(Unit: 100 million yen)

FY2021 2Q Results(A)

FY2021 2Q
Business Forecast(5/12) (B)

Change(A-B)

Sales

536

520+16Operating profit

238+15

4.4%

1.5%

2.9pt

233+20

4.4%

0.6%

3.8pt

170+173.3%

0.0%

3.3pt

Profit ratio
Ordinary profit

Profit ratio
Quarterly net profit
attributable toowners of parent

Profit ratio
Orders received
Exchange rate (USD)

868

590

112 yen103 yen+278➢ Sales of LiB separator film production lines for EV in China increased.
➢ Business activity expenses (travel expense and advertising expense) wererestrained as a result of prolonged effect of COVID-19.
4

Business forecast for 2Q FY2021 vs.
Results Ordinary Profit Analysis
Foreignexchange, etc.

(Unit: 100 million yen)
*SG&A: selling, general and administrative expenses

Restrained activityexpenses, etc.

Sales
volume+4

Businessforecast for1H '21
Ordinary profit

Other+5

SG&A+7Grossprofit
ratio+4+20(+7.6 times)

35Results in
1H '21
Ordinary profit
23

Summary of Results (Comparison withsame period of previous year)(For reference)(Unit: 100 million yen)

Sales
Operating profit

Profit ratio
Ordinary profit

Profit ratio
Quarterly net profit
attributable to owners ofparent

Profit ratio

FY2021 2Q(Formercriteria)(C)

Change
(C-B)

+113

446

+23-3+26

16

+19

4.4%

-0.7%

5.1pt

3.6%

4.3pt

23-7+30

15+22

4.4%

-1.7%

6.1pt

3.6%

5.3pt

17-10+27

10

+20

3.3%

-2.5%

5.8pt

2.3%

4.8pt

FY2021 2Q(New criteria)(A)

FY2020 2Q(Former criteria)(B)

53642323Orders received

868

Exchange rate (USD)

112

305
yen

106

Change(A-B)

+563
yen

* Revenue recognition criteria was changed from 1Q FY 2021.
Figures shown in this material for FY2020 and before are based on the conventional
revenue recognition criteria and the figures for 1Q FY2021 and after are based on the newcriteria.
6Orders Received (by Segment)+563 (+2.8 times)

Metal &plastics industrial machine
structural ratio(Unit: 100 million yen)

868
645

900-2750(-33.3%)
600

148+21Extrusion
20%(+88.4%)

305

450

OthersControl
SystemsMachine Tools

300

150 Metal&plastics
industrialmachine

82466207+82(+2.2times)

669

20.7
billion
Die Castingyen
21%

Injection
29%

Injection
59%

Extrusion
59%

66.9
billionyen Die Casting
12%+462(+3.2times)

0

20/2Q

21/2Q

20/2Q

21/2Q

7

Trends of Orders Received (by Segment)(Unit: 100 million yen)
600

Large orders received for
LiB separator film productionlines for EV in China

3 597
Control Systems 22
Machine Tools 78
Others

500

Metal &plastics
industrial machine
structural ratio

341
400

300

200

100

180
5 941

4 1552270125271

238

36 21237054

175

157

0Injection
19%

494
Metal &plastics
industrialmachine

49.4 Die
Castingbillion 7%
yenExtrusion
74%

21/2Q
(21/7-9)

Current status of orders received➢ [Injection]➢ [Die casting]➢ [Extrusion]➢ [Machine tools]➢ [Precision]➢ [Control]

Demand recovers in automobile and is strong in medical and container areas.
Demand increases in automobile area.
Demand is expanding for LiB separator film production lines for EV in China.
Showing a sign of recovery in industrial machines in Japan and robustness in wind power generationin China.
Robust in optical system dies in China
Demand increases in servo and linear motor systems in Japan and is strong in robots for smartphone in China.

8Trends of Order Backlog (by Segment)(Unit: 100 million yen)
An increase due tochange of revenue
recognition criteria

1,200

1,000

922

17800

Others 3

15242

Control

Machine Tools 220

859

30

1,174
37 Systems

843

30

697

222

626

4

173

600

580
137

Sales

186
20

3

139

29
913

400

632

596

590

571

End of Mar.
‘1919/1H

End of Sep.
‘1919/2H200

491

423

418

20/1H

End of Sep.
‘20503

485

536

Metal &plastics
industrialmachines594

0

End of Mar.
‘20

20/2H

End of Mar. 21/1H‘21

End of Sep.
‘2121/2H➢ Order backlog status in all segments (mainly in metal & plastics industrial machinesegment) have recovered to a level that exceeds the level before COVID-19
pandemic.
➢ Orders received at the end of September 2021 mainly for extrusion due to LiB
separator film production lines.
9Sales (by Segment)+113 (+26.9%)(Unit: 100
million yen)

Metal &plastics industrial machine
structural ratio

536

580

6423-545(-41.4%)
430

Others

11ControlSystems 37
Machine Tools

103+820/2Q

109(+20.6%)+6(+6.0%)

Extrusion
30%

280

384
280
130

△ 20

Metal &plastics
industrial
machine-820/2Q

21/2Q+104(+37.0%)

28
billionyen

Die Casting
20%

Adjusted
amount
-8

21/2Q

10

Extrusion
40%

Injection
50%

38.4
billionyen
Die Casting
17%

Injection
43%

Trends of Sales (by Segment)(Unit: 100 million yen)

281
300

220
5200

221
51751

100

151

1640

164

255

4320281
Others 3

Control Systems22

23 Machine Tools

6452

57
Metal &plastics
industrial
machine196176

208

(4)

(4)

(3)

(4)

(4)

20/2Q
(20/7-9)

20/3Q(20/10-12)

20/4Q(21/1-3)

21/1Q(21/4-6)

21/2Q(21/7-9)-100

11Extrusion
41%

20.8 Injection
43%billionyen
Die Casting
16%

Adjusted
amount0

Metal & plastics
industrial machines
structural ratio

21/2Q(21/7-9)

Operating Profit (by Segment) Ordinary
Profit, Quarterly Net Profit+26 (－%)

(Unit: 100
million yen)

23-3

25

Machine Tools 2

Others-0(－%)

18Control
Systems+2(－%)
Machinetools+6(－%)

15105

Others 0
Metal & plastics
industrial machine

1

Metal &plastics
industrialmachine

0Machine tools
Control systems
Others-0-4-0-5

20/2Q-10

Ordinary profit

Quarterly net profit+30 (－%)+27 (－%)

25

Control Systems220(Unit: 100million yen)

15

1723
5

Metal &plastics
industrialmachine+17(+18.2times)-5-7-10-15

20/2Q 21/2Q

21/2Q
1220/2Q 21/2Q

(Metal & plastics industrial Machine)
Segment Results(Unit: 100 million yen)

(Injection molding machines, die casting machines, extrusion machines, etc.)

21/2Q

20/2Q

Changeamount

Changerate384

280+104+37.0%

Operating profit

181+1718 times

Profit ratio

4.8%

0.4%

+4.4ptSales

2Q FY2021 Results factor analysis+Positive factor➢ [Injection] Demand is robust in medical and container areas➢ [Die casting] Demand increases in automobile area in China.
➢ [Extrusion] Demand increases for LiB separator film production lines
for EV in China.

-Negative factor➢ Difficulty and increasing cost of procuring parts including
semiconductors, stagnant distribution, and increasing costs13

(Machine Tools) Segment Results(Machine tools, high-precision machine tools, etc.)(Unit: 100 million yen)

21/2Q

20/2Q

ChangeamountChangerate

109

103+6+6.0%

Operating profit

2-4+6－Profit ratio

2.2%

-4.6%

+6.8ptSales

2Q FY2021 Results factor analysis+Positive factor➢ [Machine tools] Showing robustness in industrial machines and wind
power generation in China.
➢ [Precision]
Robust in lens dies for smartphone and automobile
in China and Taiwan-Negative factor➢ [Machine tools] Decreasing sales for industrial machines in Japan

14

(Control Systems) Segment Results(Industrial robots, electronic control systems, etc.)(Unit: 100 million yen)

21/2Q

20/2Q

Changeamount

Changerate

4537+8+20.6%

Operating profit

2-0+2－Profit ratio

5.7%

-1.7%

+7.4ptSales

2Q FY2021 Results factor analysis+Positive factor➢ Increase of servo and linear motors in Japan➢ Robust demand for robots for smartphone in China-

Negative factor➢ Difficulty and increasing cost of procuring parts including semiconductors

15Ordinary Profit Analysis(Unit: 100 million yen)
*SG&A: selling, general and administrative expenses

Grossprofit ratio+9SG&A-12

Increasing expenses
linked with volume

Sales
volume+27

Improved plant
operation capacity

20/2Q
Ordinary
profit-7+30(－%)
16Foreignexchange

Other+3+3

21/2Q
Ordinary
profit23

Domestic and Overseas Sales (Year on Year)➢ Domestic(Unit: 100 million yen)

[Injection] [Control] increased:[Extrusion] [Machine Tools] decreased+154357-40219

179

203
Overseas ratio
48%

67%

20/2Q 21/2Q

20/2Q

21/2Q

Domestic

Overseas70
321/2Q

China:[Injection] [Die Casting ] [Extrusion][Machine Tools] increased➢ SoutheastAsia:[Injection] increased➢ India:[Injection] increased➢ North America& Mexico:[Die Casting ] increased[Machine Tools] decreased[Injection] [Machine Tools] decreased

Sales by overseas region (Year on Year)

195

20/2Q

➢ China

20/2Q

20

17 14

21/2Q

20/2Q

Taiwan

21/2Q

Korea

19 23
20/2Q

21/2Q

Southeast Asia
1713
20/2Q

29
21/2Q

India

73 69
20/2Q

21/2Q

North America& Mexico

34

20/2Q

21/2Q

Europe andothers

Sales and Ratio in Overseas Market (by Segment)(Unit: 100 million yen)(54%) (75%)

286Overseas sales by segment

152(Overseas ratio)(36%) (31%)(39%) (54%)

39

Overseas sales ratio
20/2Q: 48%
21/2Q: 67%(6%) (0%)

58

101120/2Q 21/2Q

20/2Q 21/2Q

20/2Q 21/2Q

Metal & plastics
industrial machine

Machine tools

Control systems

020/2Q021/2Q

Others

Metal & plastics industrial machine by productInjection
(78%)

20/2Q

(80%)

21/2Q

(Overseas ratio)* The bar graph shows amounts.

Extrusion
Die Casting
(52%)

(64%)

20/2Q

21/2Q
18

(17%)

(74%)

20/2Q

21/2Q

Balance SheetAssets(Unit: 100 million yen)

1,342

1,467

Cash equivalents

Opening balance oftrade accounts
receivable decreased.
(New revenue
recognition criteria isapplied.)
Opening balance of
inventory increased.
(New revenue
recognition criteria isapplied.)+46424
Trade accounts
receivable

276
Inventory

Net assets

1,342

1,467

Trade accounts
payable

470

176
Loans
payable 143
Advancereceived 53
Others149

200-76

Liabilities

437

291

Fixed assets+5320

OthersComprehensiv
e income+440

50

End of Mar. ‘21224-2141

+91

144

+5154

771

End of Sep. ‘21750-21

End of Mar. ‘21
End of Mar. '21

54

End of Sep. ‘21

End of Sep. '21

Equity ratio

61.2%

54.8%

D/E ratio

17.5%

17.6%

19

Opening balance ofadvance receivedincreased(New revenue
recognition criteria isapplied.)

Dividend fromretained earnings

Shareholders'equity+146

315
Others
36+48

Opening balance ofretained earningsdecreased.
(New revenue
recognition criteria isapplied.)Cash Flow Statement
20/2Q(Unit: 100 millionyen)

21/2Q

FCF -59

Corporate income tax paid -70(including corporate income tax
in relation to gains on sales ofaffiliates’ shares)

Operating
C/F-100Investing
C/F-8-40
Financing
C/F

Opening balance of cash and cash
equivalents
C/F from operating activities
C/F flow from investing activities
C/F flow from financing activities
Total
Translation differences and others
Closing balance of cash and cash
equivalents+46+66

Dividend payment -40(including specialdividend)-5-54

FCF +58

20/2Q
480-54-5-40-100-0379

20Operating
C/F

Investing
C/F

21/2Q
424
66
-8-11
460470Change-56
120-3
29
146091-11
Dividendpayment -9Financing
C/FFY Ending in March2022
Business Results Forecast(Consolidated Base)
1) Business results forecast2) R&D expenses, and capital expenditureand depreciation expenses
3) Dividend forecast

21

FY2021 Summary of Business Results
forecast
FY2021 Summary of business results forecast was revised upward.
(Unit: 100 million yen)

FY2021 Business
Forecast (11/9)
Sales
Operating profit

Profit ratio
Ordinary profit

Profit ratio
Net profit attributable toowners of parent

Profit ratio
Ordersreceived
Exchange rate (USD)

FY2020 Results

Change1,130926+204433+40

3.8%

0.4%+3.4pt388+30

3.4%

0.9%

+2.5pt28-28+56

2.5%-3.1%+5.6pt

1,550
107

+664

886
111

yen

22yen

Orders Received (by Segment)+664 (+74.9%)(Unit: 100million yen)

1,550

1600

-3(-16.6%)

1400

1200

1000

886
Others

14Control61

800 systems+33(+52.8%)

94

11307

400

FY2020Extrusion
31%

Metal &plastics
industrial+501
machine (+78.6%)

63.7
billion
yen

1,138

637

Die Casting
18%

2000

FY2020

FY2021 (forecast)+133(+76.1%)

Machine 174
tools
600

Metal & plastics industrial machine
structural ratio

FY2021 (forecast)
23Injection
51%

Extrusion
50%

113.8
billionyen

Injection
34%

Die Casting16%

Sales (by Segment)(Unit: 100 million yen)

Metal & plastics industrial machine
structural ratio+204(+22.0%)

1,130

1400

926
Others900

20

Controlsystems 73
Machine
208
tools

400

Metal &plastics
industrialmachine-7(-35.8%)+23(+29.8%)+53(+25.0%)

1396
261
Extrusion31%+135(+21.0%)

643

778

64.3
billionyen

Die Casting
19%

Adjusted
amount-100

FY2021 (forecast)

FY2020△18△18FY2020

FY2021 (forecast)24

Extrusion
34%
Injection
50%

77.8
billionyen

Die Casting
20%Injection46%

Operating Profit (by Segment)
Ordinary Profit/Net Profit(Unit: 100 million yen)

(Unit: 100 million yen)

+40 (11.3 times)

4370

Control systems46050

340

10302029
Metal &plastics
industrial
machine10Others

Machine tools

00

11

Machine tools -8
Control systems -0

Metal &plastics
industrial
machineOthers 0-10-20

FY2020

FY2021(forecast)

Metal &plastics
industrial
machine+18(2.5 times)
Machinetools+18(--%)

Ordinary profit

Net profit+30 (4.4 times)+56 (－%)

5040382830
2010

Controlsystems+4(--%)

0FY2020-10Others+0(－%)-20-3025-288FY2021(forecast)

FY2020

FY2021(forecast)(Metal & plastics industrial machine)
Segment Results Forecast(Unit: 100 million yen)

(Injection molding machines, die casting machines, extrusion machines, etc.)

FY2021

FY2020

Forecast

Results778

643

Operating profit

2911Profit ratio

3.7%

1.8%

Sales

Changeamount+135

Changerate+21.0%+18 2.5 times+1.9ptFY2021 Results factor analysis+Positive factor➢ Increasing demand in relation to automobiles (including EVs)
both in Japan and overseas➢ [Injection] Continuous demand in medical and container areas➢ [Extrusion] Increasing demand for LiB separator film productionlines for EV in China.

-Negative factor➢ Difficulty and increasing cost of procuring parts including
semiconductors, stagnant distribution, and increasing costs26

(Machine Tools) Segment Results Forecast(Machine tools, high-precision machine tools, etc.)(Unit: 100 million yen)

FY2021

FY2020

Forecast

Results

ChangeamountChangerate

261

208+53+25.0%

Operating profit

10-8+18－Profit ratio

3.8%

-4.0%

+7.8ptSales

FY2021 Results factor analysis+Positive factor➢ [Machine tools] Increasing demand for industrial and construction
machines in Japan and for energy-related area in NorthAmerica➢ [Precision]
Continuously robust in various lens dies in China-Negative factor➢ Difficulty and increasing cost of procuring parts including semiconductors,stagnant distribution, and increasing costs27

(Control Systems) Segment Results Forecast(Industrial robots, electronic control systems, etc.)(Unit: 100 million yen)

FY2021

FY2020ForecastResultsChangeamountChangerate

9673+23+29.8%

Operating profit

4-0+4－Profit ratio

4.2%-0.5%+4.7pt

Sales

FY2021 Results factor analysis+Positive factor➢ Increased demand for robots for smartphone in China➢ Continuously robust in linear motors for semiconductor-related
devices-Negative factor➢ Difficulty and increasing cost of procuring parts including
semiconductors, and stagnant distribution
28

R&D expenses, and Capital expenditureand Depreciation expenses
Capital expenditure

R&D expenses(Unit: 100 million yen)

(Unit: 100 million yen)

3525

(Unit: 100 million yen)35283023201532302525171820151Hresults

100101Hresults

950

FY2019FY2020

FY2021 Plan

181817151012535302017Depreciation expense

FY2019FY202029

FY2021 Plan

1Hresults

950

FY2019FY2020

FY2021 PlanDividend forecast
dividend forecast recently announced remains the same without change.
Dividend decision policy
We set a basic policy to maintain stable dividends and share profits according tobusiness results while strengthening our management structure with the aim ofincreasing profitability.
We will utilize retained earnings to make effective investments in production
equipment, technology development, overseas business operations and otherpurposes based on strategic decisions on future business direction to achieve
ongoing corporate evolution, and at the same time to realize reasonable return ofprofits to our shareholders on a continual basis.
End of 2Q
FY ending in *1
March 2020
FY ending inMarch 2021
FY ending inMarch 2022
(forecast)

42.50 yen

End of term

Annual*142.50 yen

37.50 yen

37.50 yen

37.50 yen

37.50 yen

Dividend payout
ratio (consolidated)

85.00 yen

28.0%

199.30 yen－75.00 yen

64.7%

*2

*1 The 2Q-end dividend and the fiscal year-end dividend for FY ending in March 2020 include a memorial dividend of 5.00
yen, respectively.
*2 We provided a special dividend in a total amount of about 3 billion yen (124.30 yen per share) as at the record date on
June 30, 2020 and the total annual dividend for FY ending in March 2021 includes the special dividend of 124.30 yen.
30

Corporate Group (Our company and 22 subsidiaries
including 13 consolidated subsidiaries)

There is no change in the corporate group from FY2020.
Overseas manufacturing companies: 3Shibaura Machine(Metal &plastics industrial machine, machinetools, control systems and others)

Domestic manufacturing
companies: 2(Machine tools and control systems)
Fujiseiki Corporation(Control systems) Toei Electric(Metal &plastics industrial machine and control systems)

SHIBAURA MACHINE (SHANGHAI) CO., LTD.

(Metal &plastics industrial machine)
SHIBAURA MACHINE MANUFACTURING(THAILAND) CO., LTD.
(Metal &plastics industrial machine and machine tools)

SHIBAURA MACHINE INDIA PRIVATE LIMITEDDomestic sales/service
companies and others: 3

Overseas sales/service
companies: 5(Metal &plastics industrial machine and others)

Shibaura Machine Engineering(Others) Shibaura Semtek(Others) Shibaura Sangyo
Those companies within the red box are consolidated companies.

(Nonconsolidated subsidiaries)
Overseas sales companies: 8
Other company whose shares heldby Shibaura Machine: 1(Metal &plastics industrial machine, machine
tools, and control systems)
SHANGHAI SHIBAURA MACHINE CO., LTD.

(Metal &plastics industrial machine andmachine tools)
SHIBAURA MACHINE COMPANY, AMERICASHIBAURA MACHINE SINGAPORE PTE.LTD.
SHIBAURA MACHINE（THAILAND）CO., LTD.

(Metal &plastics industrial machine)
SHIBAURA MACHINE（SHENZHEN）CO., LTD.

31

SHIBAURA MACHINE CO., LTD.
2-2, Uchisaiwaicho 2-Chome, Chiyoda-ku, Tokyo 100-8503, Japan
TEL: 81-(0)3-3509-0444
FAX: 81-(0)3-3509-0333
URL: https://www.shibaura-machine.co.jp