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 Six Months Ended September 30, 2020
(Based on Japanese GAAP)
November 9, 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

TEL

Senior Manager
Scheduled date to file Quarterly Securities Report:

November 9, 2020

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

December 2, 2020
Yes

Holding of quarterly financial results meeting:Yes

03(3509)0444(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2020
Six months ended September 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%
42,307 (29.0)(315)–(705)–(1,052)–
59,586
0.2
1,637
1.1
2,405 (10.9)
1,620 (16.2)
Earnings per share

Diluted earnings per share

Yen(43.59)
67.15

Six months ended September 30, 2020
Six months ended September 30, 2019

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

Net assets

Millions of yen
134,376
154,283

Equity ratio

Millions of yen
82,36187,018

%
61.3
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
37.50

Yen–

Yen
42.50

Yen
85.00

–

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

4. Notes(1) Changes in significant subsidiaries during the six months ended September 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 September 30, 202029,977,106 shares As of March 31, 2020

29,977,106 shares

Number of treasury shares at the end of the period
As of September 30, 2020

5,831,215 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)
Six months ended September 30, 2020

24,138,213 shares Six months ended September 30, 2019

224,135,385 shares

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

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade47,90736,06437,30428,419Securities
Merchandise and finished goods

104
9,052

638
8,935

Work in process
Raw materials and supplies

26,87767

24,69961

Other
Allowance for doubtful accounts

2,340
(49)

1,864
(38)

122,364

101,887

39,014(28,429)

39,032(28,634)

10,584

10,397

24,224(22,073)

24,455(22,000)

2,151

2,454

7,049
240

7,043
265

(150)

(148)

89116

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

78

7,327
(6,797)

7,256(6,756)529

500

20,541

20,591

Other

561

535

Total intangible assets

561

535

Investment securities
Long-term loans receivable

6,560
13

7,034
9

Deferred tax assets
Other

3,142
2,149

3,183
2,177

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

Investments and other assets

Allowance for doubtful accounts(1,048)(1,043)

Total investments and other assets

10,816

11,362

Total non-current assets
Total assets

3

31,91832,489154,283

134,376(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade21,27917,360

Short-term borrowings
Income taxes payable

10,0907,218

10,340164

Accrued expenses
Provision for bonuses

5,351–2,123
1,005Provision for product warranties
Advances received

720
6,403

627
5,255

Other

1,941

1,748

Total current liabilities

53,006

38,625

4,300
5

4,050
520

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

4151

9,770

8,965

Asset retirement obligations
Other5285

53
263

Total non-current liabilities

14,25813,39067,26452,015

Shareholders' equity
Share capital

12,484

12,484

Capital surplus
Retained earnings

11,53877,35911,53872,273

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

Total shareholders' equity

85,006

79,950

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

2,334
0

2,674
5

Foreign currency translation adjustment
Remeasurements of defined benefit plans843(1,165)795(1,065)

Total liabilities
Net assets

Accumulated other comprehensive income

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

42,0122,410

87,01882,361

154,283

134,376

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

Six months ended

September 30, 2019

September 30, 2020

Net sales
Cost of sales

59,58642,58342,30730,923Gross profit

17,003

11,384

Selling, general and administrative expenses

15,366

11,700Operating profit (loss)

1,637

(315)

Interest income
Dividend income

26219

32
113

Rental income
Share of profit of entities accounted for using equity method

24546

22–Foreign exchange gains
Subsidies for employment adjustment

28–

–
222

Other

99106

Total non-operating income

945

498

Interest expenses
Brand fee expense

4056

43
0

Outsourcing expenses
Foreign exchange losses

––

485
50

Other

79307

Total non-operating expenses

177

887

2,405(705)

14

14

24

31

Extra retirement payments–

264

Total extraordinary losses

24296

Profit (loss) before income taxes

2,383(997)

817

238

Income taxes - deferred

(54)

(184)

Total income taxes

762

54

Profit (loss)

1,620(1,052)

Profit (loss) attributable to owners of parent

1,620(1,052)Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets

Income taxes - current

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2019

September 30, 2020

1,620(1,052)

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

119(0)

340
5

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(676)63(48)
100(9)–(502)

398

1,117(653)

1,117(653)––

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit (loss) before income taxes

2,383(997)

Depreciation
Extra retirement payments

870–833
264

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

643–

(16)
1,005

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits for

57

(92)

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

310(23)(704)

Interest and dividend income
Interest expenses(246)
40(146)43

Loss (gain) on sales and retirement of property, plant andequipment and intangible assets

2227

Share of loss (profit) of entities accounted for using equity
method(546)–

Decrease (increase) in trade receivables
Decrease (increase) in inventories

(835)
138

7,644
2,300

Increase (decrease) in trade payables
Increase (decrease) in advances received(1,011)(1,532)(3,970)(1,147)

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

(71)
(100)

(3,227)(17)

Increase (decrease) in accounts payable - other
Other, net

(159)
1,375

249
547

Subtotal

1,007

2,606

Interest and dividends received
Interest paid

517
(40)

145
(44)

Income taxes paid
Extra retirement payments(645)–(7,067)(1,049)Net cash provided by (used in) operating activities

838(5,408)

(499)

(415)

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

1(43)

6(89)

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

164
(98)

––Payments for investments in capital of subsidiaries andassociates

(379)

–(2)
1(0)
3

Cash flows from investing activities
Purchase of property, plant and equipment

Decrease (increase) in short-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

713(75)

(843)

(571)

(Millions of yen)

Cash flows from financing activities
Purchase of treasury shares

Six months ended

Six months ended

September 30, 2019

September 30, 2020
(0)

(0)

Dividends paid
Other, net

(905)
(16)

(4,025)(16)

Net cash provided by (used in) financing activities(922)(4,042)

Effect of exchange rate change on cash and cash equivalents

(589)

(46)

Net increase (decrease) in cash and cash equivalents(1,517)(10,068)

Cash and cash equivalents at beginning of period

25,59248,011

Cash and cash equivalents at end of period

24,07437,9438