Supplementary Material on Financial Results

Consolidated Financial Results
for the Six Months
Ended September 30, 2023
November 15, 2023
SHIBAURA MACHINE CO., LTD.

Consolidated Financial Results
Overview for the Six Months
Ended September 30, 2023
1) Key Points of Financial Results2) Comparison with Forecast
3) Year-on-Year Comparison

2Key Points of Financial Results (Year-on-Year)
Increased Revenue and Profits Year-on-Year◼ Orders Received•

Demand for LiB separator film production lines for EV in extrusion machines remains at highlevels, but orders received decreased. The reason for this is that it's time to upgrade to nextgeneration models that improve separator film productivity, and it takes time to decide on thespecifications. Additionally, injection molding machines decreased as a result of the deteriorating
market conditions in both the U.S. and China. The amount of orders received overall decreased
compared to the same period last year.

◼ Net Sales••

Considerable increases in LiB separator film production lines for EV in extrusion machines in
China
Increases in electronic control systems for control systems and engineering solutions in Japan◼ Operating Profit, Ordinary Profit, Net Profit••

Considerable increases in operating profit and ordinary profit due to sales expansion etc.
Increase in quarterly net profit due to the recognition of an extraordinary income related to thecommercialization of MFLP Zama (Sagami Logistic Center) (a gain on sale of land*) in addition tosales expansion etc.
*Because an equivalent exchange method was applied, this gain on sale of land was used by Mitsui Fudosan Co., Ltd. To acquire
equity interest in the building constructed on the land of the transferred asset.

3

Performance Summary (vs. Forecast)(Unit: 100 million yen)

Q2 FY2023

Increase/

Cumulative

Forecast

Decrease

(A)

(B)

(A-B)

Net sales

819

800

+19

Operating profit

81

60

+21

10.0%

7.5%

+2.5pt

90

56

+34

11.0%

7.0%

+4.0ptProfit ratio
Ordinary profit

Profit ratio
Net profit attributableto owners of parent

Profit ratio
Orders received
Exchange rate
(USD)
➢
➢

Q2 FY2023

143

120

+23

17.5%

15.0%

+2.5pt

725

880

- 155

150 yen

126 yenIncreases in revenue and profits due to yen’s depreciation and improved profit ratio, especially in "Metal & plastics industrial machine“
Demand for LiB separator film production lines for EV in extrusion machines remains at high levels, but orders received decreased. The reason forthis is that it's time to upgrade to next-generation models, and it takes time to decide on the specifications. Additionally, injection molding machinesdecreased as a result of the deteriorating market conditions in both the U.S. and China. The amount of orders received overall decreased.

4Performance Summary (Year-on-Year)(Unit: 100 million yen)

Q2 FY2023

Q2 FY2022

Increase/

Cumulative

Cumulative

Decrease

(A)

(B)

(A-B)

Net sales

819

589

+230

Operating profit

81

16

+65

10.0%

2.8%

+7.2pt

90

21

+69

11.0%

3.7%

+7.3pt

143

18

+125

17.5%

3.1%

+14.4pt

Profit ratio
Ordinary profit

Profit ratio
Net profit attributableto owners of parent

Profit ratio
Orders received
Exchange rate
(USD)

725

1,100

150 yen*Exchange rate sensitivity on operating profit (USD)
Approximately 60 million yen per 1 yen(Profits will increase with yen’s depreciation)

5

145 yen- 375

Amounts of Orders Received (By Segment)(Unit: 100 million yen)

(Unit: 100 million yen)
Increase/Decrease

1,100
Others7

Controlsystems

42

Machinetools

146

Metal &
plastics
industrial
machine725

Breakdown of Metal &Plastics Industrial Machine-375（-34.1％）

Injection: Injection molding machines
Die Casting: Die casting machines
Extrusion: Extrusion machines6-1（-13.5%）41-1（-2.1%）

127-19（-12.6%）

Q2 FY2022
Cumulative
Injection
223

903

903
549

Q2 FY2022
Cumulative-354（-39.2%）

Q2 FY2023
Cumulative

Extrusion
589

Q2 FY2023
Cumulative

6

Die
Casting
90

Injection
170

549
Extrusion
283

Die
Casting94

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

Metal & plastics industrial machine has quarterly fluctuation inamounts of orders received, because of including large volume
orders for LiB separator film production lines for EV.

2 23

4 23

373

Breakdown of Metal
Others &Plastics IndustrialTotal
Machine

533

468
68

Machine tools: Large machine tools (machine tool segment)
Precision: High-precision machine tools (machine tool segment)
Control: Control systems

60

283

3 26
55

199

389
3 19
70

447
295

(Unit: 100 million yen)

Others3

Controlsystems
Machinetools

２Q、４Qは累計値

336
22
57

Metal &
plastics 254
industrial
machineQ2 FY2022
Q3 FY2022
Q4 FY2022
Q1 FY2023
Q2 FY2023(Jul-Sep 2022) (Oct-Dec 2022) (Jan-Mar 2023) (Apr-Jun 2023) (Jul-Sep 2023)

Extrusion
124

Injection
78
254

Die Casting50

Q2 FY2023(Jul-Sep 2023)

Current Orders➢ Injection: Low due to the deteriorating market conditions in China and North America. Some signs of recovery in North
America.
➢ Die Casting: Demand is showing a slow recovery in relation to automotive capital investments.
➢ Extrusion: Demand for LiB separator film production lines for EV in China remains at high levels.
➢ Machine Tools: Demand for energy applications in North America remains steady, but especially in Japan and China is low➢ Precision: Demand for smartphone lens molds in China is low➢ Control: Demand for industrial robots in China is low, but demand for electronic control systems in Japan remains steady7

Net Sales (By Segment)(Unit: 100 million yen)

(Unit: 100 million yen)

Breakdown of Metal &Plastics Industrial Machine

Increase/Decrease

589

Others7

Controlsystems

51

Machine
tools

137

819

＋230（＋39.0%）

7+0（+7.9%）

62＋11（＋21.7%）

122-15（-10.8%）＋234（＋58.0%）

Metal &
plastics
industrial
machineQ2 FY2022
Cumulative

Extrusion
134

Injection
191

404

638

Die
Casting77

404
Adjustment
amount(20)

Q2 FY2022
Cumulative

Q2 FY2023
Cumulative

Q2 FY2023
Cumulative

8

Injection
192

638
Extrusion
368

Die
Casting78

Trends of Net Sales (By Segment)(Unit: 100 million yen)

Others

325

4
27
78

296

4

3

4
28

25
58

347

346

78

4

472

Controlsystems

30

Machine
tools

76

222

215

OthersAdjustment of Metal &Breakdown
Plastics
TotalIndustrial Machine

２Q、４Qは累計値の切り捨てと合う(Unit: 100 million yen)

32
46

Metal &
plastics
industrial
machine368
240

Machine Tools

270

Extrusion
233
368

Injection
91
Die Casting
43

Adjustment

Q2 FY2022
Q3 FY2022
Q4 FY2022
Q1 FY2023
Q2 FY2023(Jul-Sep 2022) (Oct-Dec 2022) (Jan-Mar 2023) (Apr-Jun 2023) (Jul-Sep 2023)

9Q2 FY2023(Jul-Sep 2023)

Order Backlog (By Segment)(Unit: 100 million yen)

(Unit: 100 million yen)
Increase/Decrease

1,918
Others5

Controlsystems

61

Machinetools 242

1,998＋80（＋4.2%）

4-1（-17.2%）

55-6（-8.6%）

227-15（-6.2%）

Q2 FY2022
Injection
205＋102（＋6.3%）

Metal &
plastics
industrial
machine

1,609

Breakdown of Metal &Plastics Industrial Machine

Die
Casting
88

1,711

1,609
Extrusion
1,316

Q2 FY2022

Q2 FY2023

10

Q2 FY2023
Injection
132
Die
Casting
118

1,711

Extrusion
1,459Operating Profit (By Segment),
Ordinary Profit, Net Profit(Unit: 100 million yen)

(Unit: 100 million yen)

Operating Profit

Ordinary Profit

Net Profit＋65（+388.6%）＋69（+318.9%）＋125（+677.1%）

16
OthersControlsystems
Machinetools

81

Others-０0(-15.3%)

3

Controlsystems+1

1

Including Gain on sale of non-current
assets MFLP Zama(Sagami Logistic
Facility) (About 8billion yen)(+75.8%)75

Machine
tools
-2

143

(-50.4％)
OthersControlsystems
Machinetools

0Metal &
plastics
industrial
machine2
3
10

Metal &
plastics
industrial
machineQ2 FY2022
Cumulative

90

Metal &
plastics
industrial
machine
+65

21

18

(+618.9%)

Q2 FY2023
Cumulative

Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023
Cumulative Cumulative Cumulative Cumulative11

(Metal & Plastics Industrial Machine)
Segment Results(Injection molding machines, Die casting machines, Extrusion machines, etc.)(Unit: 100 million yen)

Q2 FY2023 Q2 FY2022
Cumulative Cumulative

Increase/ Increase/
Decrease Decrease
Amounts

Ratio

Net Sales

638

404

+234

+58.0%

Operating Profit

75

10

+65

+618.9%

11.8%

2.6%

―

+9.2ptProfit Ratio

Performance Factor Analysis＋

Positive Factors➢ Extrusion: Significant increase in LiB separator film production lines for EV in China-

Negative Factors➢ Injection: Decrease due to the prolonged deterioration of market conditions in China➢ Difficulty and rising costs in the procurement of materials for semiconductors, etc.

12

(Machine Tools) Segment Results(Unit: 100 million yen)

(Machine tools, high-precision machine tools, etc.)

Q2 FY2023 Q2 FY2022
Cumulative Cumulative
Net Sales
Operating Profit

Profit Ratio

Increase/ Increase/
Decrease Decrease
Amounts

Ratio

122

137

- 15

- 10.8%1

3-2- 50.4%

1.3%

2.3%

―

- 1.0pt

Performance Factor Analysis＋

Positive Factors➢ Machine Tools: Increase in demand for energy applications in North America➢ Precision: Increase in demand for vehicle-mounted lens molds-

Negative Factors➢ Machine Tools: Decrease in demand for industrial machinery in Japan➢ Precision: Decrease in demand for smartphone lens molds in China➢ Difficulty and rising costs in the procurement of materials for semiconductors, etc.

13

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

Q2 FY2023 Q2 FY2022
Cumulative Cumulative

Increase/ Increase/
Decrease Decrease
Amounts

Ratio

Net Sales

62

51

+11

+21.7%

Operating Profit

3

2

+1

+75.8%

6.3%

4.4%

―

+1.9ptProfit Ratio

Performance Factor Analysis＋

Positive Factors➢ Increase in engineering solutions related to labor-saving and automation in Japan-

Negative Factors➢ Decrease in demand for industrial robots in China➢ Difficulty and rising costs in the procurement of materials for semiconductors, etc.

14

Ordinary Profit Analysis(Unit: 100 million yen)+69(+318.9%)

11

-16

4

1

90

OthersQ2 FY2023
Cumulative
Ordinary Profit

・Increase in logistics costs
due to sales expansion, etc.

69
21

Q2 FY2022
Cumulative
Ordinary Profit

Scale
expansionGrossmargin

SG&A

15

Currency
exchange

Domestic and Overseas Sales(Unit: 100 million yen)

+226
634

+3

➢

Japan

：

[Die Casting] [Machine Tools] Decrease

➢

China

：

408

181 184[Extrusion] [Precision] [Control] Increase[Extrusion] Increase[Injection] [Machine Tools] [Precision][Control Systems] Decrease

Overseas ratio

69%

77%

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Japan

Overseas➢

SE Asia

➢

India
North

➢

：

[Injection] [Die Casting] Increase[Injection] Decrease

America /：[Machine Tools] Increase[Injection] Decrease

MexicoOverseas Sales(By Region)
401
191

9

11

10 17

36 39

50 47

107 10739Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023
Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative

China

TaiwanSouth Korea

SE Asia

16

India, etc.

North America

Europe, etc.

Overseas Sales and Ratio (By Segment)(Unit: 100 million yen)Overseas Sales (By Segment)
（88%）
（81%）

(Overseas ratio)

562

Overseas Sales Ratio
Q2 FY2022 Cumulative： 69％
Q2 FY2023 Cumulative： 77％

329

Others

（56%）
（52%）

71

（0%）（3%）

（19%）
（6%）

68

8

2

0

0

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Q2 FY2022 Q2 FY2023
Cumulative Cumulative

Metal & plastics
industrial machine

Machine Tools

Control Systems

Others

Metal & Plastics Industrial Machine (By Product)(Overseas ratio)（85%） （94%）345（85%） （84%）

163
Q2 FY2022
Cumulative161
Q2 FY2023
Cumulative

Injection

Injection

Extrusion（67%） （72%）

51

56

Q2 FY2022
Cumulative

Q2 FY2023
Cumulative

Die Casting

17

113
Q2 FY2022
Cumulative

Q2 FY2023
Cumulative

ExtrusionEnded Mar. 2023

Ended Sep. 2023

Balance Sheet(Unit: 100 million yen)

Liabilities Net assets

Assets
2,321

2,051

2,321

2,051

Trade debt

Cash, etc

508
Accounts
receivable

262

468
-40

Fixed assets

318
Others
161

140

-9

Inventry

802

365

253

+178

980

+139

457

+2

163

Ended Mar. 2023

487
169
807
83

Ended Sep. 2023

+51
-27

113

Loans
PayableContract
liabilities

+24

511

Others+57

226

Shareholder
equity+127

934
OthersComprehensive Income

121

Ended Mar. 2023

Ended Sep. 2023

Ended Mar. 2023 Ended Sep. 2023

Equity ratio

43.5%

45.5%

D/E ratio
assetsLiabilities Net

15.7%

10.8%

18

416

Cash Flow Statement(Unit: 100 million yen)

Q2 FY2022 Cumulative

Q2 FY2023 Cumulative

FCF -37
Increase in inventories
Increase in purchasing-related accounts payable
Increase in advances received

FCF -11-131

Dividend payment -9

Repayment of borrowings -26
Dividend payment -18

55
57

- 21
Sales C/F

-0

- 15

- 12

Investment
C/F

Financial
C/F

- 10
- 44

Sales C/F
Q2 FY2022 Q2 FY2023

Investment
C/F
Increase/

Cumulative Cumulative Decrease
Opening balance of cash and cash equivalents

517

508

-9

C/F from operating activities

- 21

-0

21

C/F from investment activities

- 15

- 10

5

C/F from financial activities

- 12

- 44

- 32

Total

- 48

- 56

-8

Transitional differences

16

16

-0

Closing balance of cash and cash equivalents

484

468

- 16

19

Financial
C/FForecast of Consolidated
Financial Results for the YearEnding March 31, 2024
1) Financial Results Forecast2) R&D Expenses, Capital Expenditures,
Depreciation Expenses
3) Dividend Forecast20

FY2023 Financial Results Summary(Unit: 100 million yen)••

The full-year forecast has not been revised from it announced on May 15, 2023.
The full-year forecast for Orders Received has been revised as follows.

FY2023 Forecast(Announced on May.15,2023)

Net sales
Operating profit

Profit ratio
Ordinary profit
Profit ratio
Net profit attributableto owners of parent

Profit ratio
Orders received
Exchange rate
(USD)

FY2023 Forecast(Announced on Nov.8,2023)(A)

FY2022

Increase/

Cumulatove

Decrease(B)(A)-(B)

1,800

1,231

+569

150

57

+93

4.7%

+3.6pt

52

+93

4.3%

+3.8pt

64

+116

5.2%

+4.8pt8.3%

145

No revise

8.1%

180
10.0%

1,830

1,690

126 yen

126 yen21

1,916

134 yen- 226

Amounts of Orders Received (By Segment)(FY2023 Forecast vs. FY2022 Cumulative)(Unit: 100 million yen)

(Unit: 100 million yen)
Increase/Decrease

1,916
OthersControlsystems
Machine
tools

1,690

-226（-11.8%）

15+3（+15.7%）

90-1（-2.0%）

270＋9（+3.1%）

Breakdown of Metal &Plastics Industrial Machine

12

91

261

Metal &
plastics
industrial
machine

1,549

FY2022
Cumulative

FY2022 Cumulative

Injection366-234（-15.2%）

1,549
1,315

FY2023
Forecast

FY2023 Forecast

Extrusion
1,004

22

Die
Casting
178

Injection
360

1,315
Extrusion
765

Die
Casting190

Amounts of Orders Received (By Segment)(FY2023 2nd half Forecast vs. FY2023 1st half Cumulative)(Unit: 100 million yen)

(Unit: 100 million yen)
Increase/Decrease

725

Others6

Controlsystems

41

Machinetools

964+239（+32.9%）8+2（+33.4%）

48+7（+14.8%）

142＋15（+11.0%）

127

Metal &
plastics
industrial
machineBreakdown of Metal &Plastics Industrial Machine

FY2023 1st half
Cumulative+216（+39.4%）

549

549

FY2023 1st half FY2023 2nd half
Cumulative
Forecast

Injection
189

Injection
170

Extrusion
283

765

FY2023 2nd half
Forecast

765
Die
Casting
94

23

Extrusion
481

Die
Casting95

R&D Expenses, Capital Expenditures,
Depreciation Expenses(Unit: 100 million yen)

R&D Expenses

Capital Expenditures

Depreciation Expenses

Including New plant in India
and MFLP Zama(Sagami
Logistic facility)

174
Q2 Cumulative
results
Q2 Cumulative
results

27

31

Q2 Cumulative
results

32
122

15
FY2021

FY2022 FY2023 Plan

18

19

21

23

21
10

FY2021

FY2022 FY2023 Plan

24

FY2021

FY2022 FY2023 PlanDividend Forecast
The full-year forecast has not been revised from it announced on May 15, 2023.
Policy on Determination of Dividends
Our basic policy is to maintain stable dividends and to distribute profits in line with business performance whilestrengthening our management structure to improve profitability.
With regard to retained earnings, we will make strategic decisions on future business development for the purpose ofcontinuous corporate growth, and effectively invest in strengthening human capital, production facilities,
technological development, overseas expansion, and other areas. We will also continue to return profits toshareholders in an appropriate manner.
Dividend payout
ratio(Consolidated)

InterimYear-end

Full-year

FY ended
March 31, 2022

37.5 yen

37.5 yen

75.0 yen

48.6%

FY ended
March 31, 2023

37.5 yen

70.0 yen

107.5 yen

40.3%

FY ending*March 31, 2024
70.0 yen
70.0 yen
140.0 yen
33.8%
(Forecast)* The net profit attributable to owners of the parent for the fiscal year ending March 31, 2024 is expected to be 18.0
billion yen, which includes approx. 8.0 billion yen (less deferred tax liabilities based on the advanced depreciation
method) such as a gain on sale of a portion of the south site of Sagami Plant to commercialize MFLP Zama (Sagami
Logistic Facility), which started operation in September 2023.
Such gain on the sale will be used to acquire equity interest in the building being constructed on the land of thetransferred asset by the transferee as an equivalent exchange method is applied. Accordingly, we will distributeprofits based on the net profit of approx. 10 billion yen after deducting the gain on sale.
In addition, we will also consider flexibly acquiring purchase of treasury shares as necessary, keeping in mind thetotal return ratio.

25SHIBAURA MACHINE CO., LTD.
2-2, Uchisaiwaicho 2-Chome, Chiyoda-ku, Tokyo 100-8503, Japan
TEL +81-3-3509-0444 FAX +81-3-3509-0336 URL : https://www.shibaura-machine.co.jp/en