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, 2020
(Based on Japanese GAAP)May 27, 2020
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 29, 2020
June 29, 2020

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

June 15, 2020
Yes

Holding of financial results meeting:Yes

055-926-5072(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating resultsPercentages 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, 2020
116,761
(0.5)
3,529
(8.0)
3,825
(31.4)
7,338
79.9
Year ended March 31, 2019
117,405
0.5
3,834(17.4)
5,573(20.2)
4,079(18.7)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
8.6
2.5
3.0
–
5.0
3.7
3.3

Diluted earnings pershare

Earnings per share
Yen
304.06169.03

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
154,283
150,724

Millions of yen
87,01883,197

Cash flows fromoperating activities
Millions of yen
5,312(2,176)

Cash flows frominvesting activities
Millions of yen
19,772(1,493)

Net assets per share
%
56.4
55.2

Yen
3,605.47
3,447.10(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,964)48,011(1,785)25,592

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

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

7.50
42.50

––

37.50
42.50–
85.00

1,810
2,051

44.4
28.0

2.2
2.4

–

37.50

–

37.50

199.301–

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Millions of yen
Six months ending
September 30, 2020
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

42,000(29.5)(2,200)–(3,000)–(3,000)–(124.30)

92,000(21.2)(1,400)–(2,400)–(2,600)–(107.73)

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(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, 2020

29,977,106 shares As of March 31, 2019

29,977,106 shares

Number of treasury shares at the end of the period
As of March 31, 2020

5,841,960 shares As of March 31, 2019

5,841,537 shares

24,135,286 shares Year ended March 31, 201924,135,956 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade25,59237,40547,90736,064

Securities
Merchandise and finished goods–
12,153

104
9,052

Work in process
Raw materials and supplies

29,79373

26,877
67

Other
Allowance for doubtful accounts

3,909
(89)

2,340
(49)

108,838

122,364

39,350(28,052)

39,014(28,429)

Buildings and structures, net

11,297

10,584

Machinery, equipment and vehicles
Accumulated depreciation

24,185(21,964)

24,224(22,073)

2,220

2,151

6,460
264

7,049240

Accumulated depreciation

(160)

(150)

Leased assets, net

104

89

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

Machinery, equipment and vehicles, net
Land
Leased assets

Construction in progress

130

135

7,428
(6,877)

7,327(6,797)550

529

20,765

20,541

Other

641

561

Total intangible assets

641

561

Investment securities
Long-term loans receivable

18,379
16

6,560
13

Deferred tax assets
Other703
1,726

3,142
2,149

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

Investments and other assets

Allowance for doubtful accounts(345)(1,048)

Total investments and other assets

20,47910,816

Total non-current assets
Total assets

341,885

31,918150,724

154,283

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade28,207

21,279

Short-term borrowings
Income taxes payable

10,090466

10,0907,218

Accrued expenses
Provision for product warranties

4,854
604

5,351
720

Advances received
Other7,842
1,423

6,403
1,941

Total current liabilities

53,48853,006

Non-current liabilities
Long-term borrowings

4,300

4,300

Long-term accounts payable - other
Deferred tax liabilities

566

52

Provision for retirement benefits for directors (and otherofficers)

32

41

9,475
51

9,770
52

Retirement benefit liability
Asset retirement obligations
Other

105

85

14,037

14,25867,526

67,264

Share capital
Capital surplus

12,484
11,53812,484
11,538Retained earnings
Treasury shares

71,983(16,375)

77,359(16,376)

Total shareholders' equity

79,63085,006

2,844

2,334

0
1,711

0843

Remeasurements of defined benefit plans(988)(1,165)

Total accumulated other comprehensive income

3,566

2,012

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Total net assets
Total liabilities and net assets

483,197

87,018150,724

154,283

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales
Cost of sales

117,405
84,493

116,761
83,301Gross profit

32,91233,459Selling, general and administrative expenses
Sales commission
Packing and transportation costs
Provision for product warranties
Employees' salaries and allowances
Retirement benefit expenses
Depreciation
Rent expenses
Travel and transportation expenses
Research and development expenses
Outsourcing expenses
Other

1,579
3,839
495
11,883
669
730
805
1,408
1,246495
5,923

1,486
3,595
625
11,914
652
746
804
1,238
1,682
588
6,596

29,07829,930Operating profit

Total selling, general and administrative expenses

3,834

3,529

Non-operating income
Interest income
Dividend income
Rental income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other

60
322
51
1,241
335
210

43
512
50
728
76
271

2,222

1,683

81
113
20267

81
124
862
318

Total non-operating income
Non-operating expenses
Interest expenses
Brand fee expense
Outsourcing expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of shares of subsidiaries and associates
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Impairment loss
Extra retirement payments
Total extraordinary losses

483

1,387

5,573

3,825

4
–
186

6
10,13526

190

10,168

21–––

103
311
19
911

21

1,345

Profit before income taxes

5,742

12,648

Income taxes - current
Income taxes - deferred

1,507
155

7,621
(2,312)

Total income taxes

1,662

5,309

Profit

4,079

7,338

Profit attributable to owners of parent

4,079

7,338

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
4,079

7,338

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

(804)
(2)

(536)
0

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

104
128(867)(228)

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

(29)

77

Total other comprehensive income(603)(1,554)Comprehensive income

3,475

5,784

3,475

5,784––

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

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

12,484Retained earnings

11,538

Total shareholders'equityTreasury shares

69,514(16,373)

77,164

Changes during period
Dividends of surplus(1,749)(1,749)Profit attributable to ownersof parent

4,079

4,079

Purchase of treasury shares(2)

Increase by merger

138

(2)
138

Decrease by businesscombination
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

–

2,468

(2)

2,466

12,484

11,53871,983(16,375)

79,630

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

3,684

2

1,606

(1,123)

4,170

Total net assets

81,334

Changes during period
Dividends of surplus(1,749)Profit attributable to ownersof parent

4,079

Purchase of treasury shares(2)

Increase by merger

138

Decrease by businesscombination
Net changes in items otherthan shareholders' equity

(839)

(2)

104

134

(603)

(603)

Total changes during period

(839)

(2)

104

134

(603)

1,862

Balance at end of period

2,844

0

1,711(988)

3,566

83,197

7

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 attributable to ownersof parent

7,338

7,338

Purchase of treasury shares

(1)

(1)

Increase by merger
Decrease by businesscombination

(31)

(31)

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 attributable to ownersof parent

7,338

Purchase of treasury shares(1)

Increase by merger
Decrease by businesscombination
Net changes in items otherthan shareholders' equity

(31)
(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

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Extra retirement payments
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits for

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
5,742

12,648

1,868
–

1,781
19–
289

911
662

7115

directors (and other officers)
Increase (decrease) in retirement benefit liability

28291

66

Interest and dividend income
Interest expenses(383)
81(556)81

Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates

(186)
–(26)
(10,135)

Loss (gain) on valuation of investment securities
Loss (gain) on sales and retirement of property, plant and–

311

1796(1,241)(728)

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

1,128

1,341

Decrease (increase) in inventories
Increase (decrease) in trade payables(8,332)(1,652)

6,023(6,973)

Increase (decrease) in advances received
Increase (decrease) in accrued expenses

2,719(385)(1,438)495

Increase (decrease) in deposits receivedIncrease (decrease) in accounts payable - other30(305)

(279)
(301)

Other, net(528)1,577Subtotal(835)5,702Interest and dividends received

654

827

Interest paid
Income taxes (paid) refund(89)(1,906)(80)(1,137)

Net cash provided by (used in) operating activities(2,176)

5,312

Cash flows from investing activities
Purchase of property, plant and equipment(1,101)(1,424)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

7(74)

13(92)

Purchase of investment securities
Proceeds from sales of investment securities

(99)
167

–
208

Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries and associates

(400)
–(98)
21,525

Payments for investments in capital of subsidiaries andassociates–(379)

Decrease (increase) in short-term loans receivableCollection of long-term loans receivable

03

(3)
3

Other, net

520(1,493)

19,772

Net cash provided by (used in) investing activities

9(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from financing activities
Proceeds from long-term borrowings

4,300

–

Repayments of long-term borrowings
Purchase of treasury shares(4,300)(2)–(1)

Dividends paid
Other, net(1,749)(33)(1,930)(33)

Net cash provided by (used in) financing activities(1,785)(1,964)

Effect of exchange rate change on cash and cash equivalents

111

(701)

Net increase (decrease) in cash and cash equivalents(5,344)

22,419Cash and cash equivalents at beginning of period

30,79825,592

138–

25,59248,011

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period10