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 Three Months Ended June 30, 2020
(Based on Japanese GAAP)
July 30, 2020
Company name:Shibaura Machine Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6104
URL https://www.shibaura-machine.co.jp
President and Chief Operating Officer
Shigetomo Sakamoto

Inquiries:

Public Relations & Investor Relations
Department

Minoru Aoki

Senior Manager
Scheduled date to file Quarterly Securities Report:

August 6, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

055(926)5072(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)

Three months ended June 30, 2020Three months ended June 30, 2019

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%
20,245 (21.3)
39–(42)–(500)–
25,7153.2(388)–(401)–(441)–Earnings per share

Diluted earnings per share

Yen(20.75)(18.29)Three months ended June 30, 2020Three months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2020
As of March 31, 2020

Net assets

Millions of yen
140,343
154,283

Equity ratio

Millions of yen
82,81487,018

%
59.0
56.4

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
42.50

Yen–

Yen
42.50

Yen
85.00

37.50

–

37.50

199.30Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
42,000 (29.5)(2,200)–(3,000)–(3,000)–(124.30)
September 30, 2020
Full year
92,000 (21.2)(1,400)–(2,400)–(2,600)–(107.73)1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2020

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 June 30, 2020

5,842,004 shares As of March 31, 2020

5,841,960 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2020

24,135,135 shares Three months ended June 30, 2019

224,135,441 shares

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

As of June 30, 2020

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade47,90736,06440,862
29,616

Securities
Merchandise and finished goods

104
9,052

149
8,979

Work in process
Raw materials and supplies

26,87767

26,92466

Other
Allowance for doubtful accounts

2,340
(49)

1,796
(49)

122,364

108,346

39,014(28,429)

38,910(28,477)

10,584

10,432

24,224(22,073)

24,193(22,058)

2,151

2,135

7,049
240

7,056
251

(150)

(149)

89

101

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation and impairment loss
Leased assets, net
Construction in progress

135

230

7,327(6,797)

7,224(6,720)

529

503

20,541

20,460

Other

561

533

Total intangible assets

561

533

Investment securities
Long-term loans receivable

6,560
13

6,906
10

Deferred tax assets
Other

3,142
2,149

2,940
2,196

Other
Accumulated depreciation and impairment loss
Other, netTotal property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts(1,048)(1,049)Total investments and other assets

10,816

11,003

Total non-current assets
Total assets

3

31,91831,997

154,283

140,343

(Millions of yen)
As of March 31, 2020

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade21,27918,765

Short-term borrowings
Income taxes payable

10,0907,218

10,340136

Accrued expenses
Provision for bonuses

5,351
–

2,381
874

Provision for product warranties
Advances received

720
6,403

688
5,406

Other

1,941

5,501

Total current liabilities

53,00644,094

4,300
5

4,050
102

0

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

41

39

9,770

9,186

Asset retirement obligations
Other

52
85

52
93

Total non-current liabilities

14,25813,434

67,26457,529

Shareholders' equity
Share capital

12,484

12,484

Capital surplus
Retained earnings11,538
77,35911,53872,833

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

Total shareholders' equity

85,00680,479Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,334
0

2,580
9

Foreign currency translation adjustment
Remeasurements of defined benefit plans843(1,165)860(1,115)

Total liabilities
Net assets

Accumulated other comprehensive income

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

42,012

2,334

87,01882,814

154,283

140,343

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2019

June 30, 2020

Net sales
Cost of sales

25,715
18,497

20,245
14,168Gross profit

7,218

6,076

Selling, general and administrative expenses

7,606

6,036

Operating profit (loss)

(388)

39

Interest income
Dividend income

14
122

16
110

Foreign exchange gains
Rental income

–1214
11

Other4664

Total non-operating income

196

216

Interest expenses
Brand fee expense

2024

200

Foreign exchange losses
Share of loss of entities accounted for using equity method

3787

–
–

Outsourcing expenses
Other–
40

94
183

Total non-operating expenses

209

299

(401)

(42)

Gain on sales of non-current assets–

0

Total extraordinary income–0

Loss on disposal of non-current assets
Extra retirement payments

21–

23265

Total extraordinary losses

21288

Loss before income taxes

(422)

(331)

Income taxes - current
Income taxes - deferred

132
(113)

74
95

18169

Loss(441)(500)

Loss attributable to owners of parent(441)(500)

Non-operating income

Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses

Total income taxes

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Loss
Other comprehensive income

Three months ended

Three months ended

June 30, 2019

June 30, 2020
(441)

(500)

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

(95)
(0)

246
9

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(475)
26

1650

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

(10)

–

Total other comprehensive income

(555)

322

(997)

(178)

(997)

(178)

–

–

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

6