(Reference Translation)

August 3, 2021

Summary of Financial Information and Business Results
for the First Six Months of Fiscal Year 2021 Ending December 31, 2021
on a Consolidated Basis<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

JUKI Corporation
First Section of the Tokyo Stock Exchange
6440
https://www.juki.co.jp
Shinsuke Uchinashi, Representative Director, President and COO
Daizo Minami, Corporate Officer and General Manager of Finance &Accounting Department
TEL: +81-42-357-2211

Scheduled date to file the quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results presentation meeting:

August 4, 2021–
Yes
Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the first six months of fiscal year 2021 ending
December 31, 2021
(January 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes)

Operating profit

Profit attributable toowners of parent

Ordinary profit

million yen%

million yen%

million yen%

million yen%

June 30, 2021

47,098

54.4

1,908

–

1,716

–

1,221

–

June 30, 2020

30,496(41.2)(3,468)–(3,442)–(3,902)–

Note: Comprehensive income

Six months ended June 30, 2021:
Six months ended June 30, 2020:

Basic earnings per share
Six months ended

yen

2,989 million yen(4,625) million yen

Diluted earnings
per shareyenJune 30, 2021

41.70

–

June 30, 2020

(133.21)

–

[– %]
[– %]

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

million yen

million yen%

June 30, 2021

118,503

33,771

28.2

December 31, 2020

110,230

31,36828.2

Reference:2.

EquityAs of June 30, 2021:
As of December 31, 2020:

33,413 million yen
31,033 million yen

Dividends
Annual dividends
First quarter-end Second quarter-end Third quarter-end

Fiscal year ended
December 31, 2020
Fiscal year ending
December 31, 2021
Fiscal year ending
December 31, 2021
(Forecast)Fiscal year-end

Total

yen

yen

yen

yen

yen

–

0.00

–

20.00

20.00

–

0.00
–

25.00

25.00

Note: Revisions to the dividend forecasts most recently announced: None3.

Consolidated earnings forecasts for the fiscal year 2021 ending December 31, 2021
(January 1, 2021 to December 31, 2021)(Percentages indicate year-on-year changes)
Net sales
million yen

Fiscal year ending
December 31, 2021

100,000

Operating profit% million yen
42.0

3,100

Ordinary profit% million yen
–

2,800

% million yen

%

yen

2,000

–

68.27

–

Note: Revisions to the consolidated earnings forecasts most recently announced: None

Profit attributable to Basic earnings
owners of parent
per share

* Notes(1) Changes in significant subsidiaries during the six months under review (changes in specified
subsidiaries resulting in changes in the scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2021
As of December 31, 2020b.

Number of treasury shares at the end of the period
As of June 30, 2021
As of December 31, 2020c.

29,874,179 shares
29,874,179 shares
579,129 shares
578,890 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2021
Six months ended June 30, 2020

29,295,198 shares
29,295,356 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Disclaimer regarding forward-looking statements
Forward-looking statements concerning future plans and strategies contained in this report are based on
information currently available to JUKI and on certain assumptions deemed to be reasonable. Actual
business results and other results may differ materially from the forward-looking statements due tovarious factors. Significant factors that may have an impact on actual results include, but not limited to,the economic environment surrounding JUKI’s business, political situations in key markets, and foreignexchange rate fluctuations.

[Attached Material]

Index
1. Qualitative information regarding consolidated performance for the first six months........................... 2(1) Explanation regarding operating results .......................................................................................... 2(2) Explanation regarding financial position ......................................................................................... 3(3) Explanation regarding forward-looking statements such as consolidated earnings forecasts.......... 3
2. Quarterly consolidated financial statements and significant notes thereto ............................................. 4(1) Consolidated balance sheet .............................................................................................................. 4(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 6(3) Consolidated statement of cash flows .............................................................................................. 8(4) Notes to quarterly consolidated financial statements ....................................................................... 9(Notes to premise of going concern) ................................................................................................ 9(Notes to significant changes in the amount of shareholders’ equity) ............................................. 9(Application of special accounting for preparing quarterly consolidated financial statements) ...... 9(Additional information) .................................................................................................................. 9(Segment information, etc.) ............................................................................................................. 9

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1.

Qualitative information regarding consolidated performance for the first six months(1) Explanation regarding operating results
During the six months ended June 30, 2021, although the effects of the spread of the novel
coronavirus disease (COVID-19) continued in emerging countries including those in Asia andCentral and South America, the global economy has entered a phase of recovery, with growth in the
Chinese economy, which was the first to recover, and economic recovery in developed countries
where vaccine rollouts have progressed, such as those in Europe and North America.
In the business environment surrounding the Company, while certain countries and regions are still
being affected by the spread of COVID-19, recovery in demand for capital investment progressed
due to the rise in capacity utilization rates at the sewing factories that make up our customers andthe increase in semiconductor-related demand, which has been driven by 5G, etc. In addition, there
began to be signs leading to business chances for the Company such as responding to customers’
supply chain fragmentation (decentralization of production areas), leading results to improve greatly
year on year.
Furthermore, amid the acceleration in the technological revolution in the form of AI/IoT/5G, etc.,
the response to the new-normal environment including changes in markets and customers, and thedemand for stronger “sustainable development goal (SDGs)” initiatives, the Company revised theMedium-Term Management Plan Phase II, which runs from 2020 to 2022, and is working to make aqualitative change and return to a trajectory of growth by vigorously promoting our added-value
structural reforms and our cost structural reforms, as well as reforms in our business strategy andstructural strategy through our “6 Reforms (6 X).”
*6 Reforms = (i) Developing markets and customers with potential for growth, (ii) Expanding
business areas for increasing profitability, (iii) Realizing management “aimed at thesustainable development goals (SDGs), (iv) Expanding innovative technical areas using
cutting-edge technology, (v) Constructing a production organization and administrative(indirect) work organization centered on the management 5Ss (Simple, Slim, Speedy,
Seamless and Smart) and (vi) Strengthening equity and improve asset efficiency through theenhancement of financial strength.
In the six months ended June 30, 2021, given the above revitalization of economic environment, thedevelopment of company-wide sales activities such as capturing demand during market recoveries
in each business led to net sales of 47,098 million yen (up by 54.4% year-on-year).
In terms of profits, in addition to increased sales and a rise in capacity utilization rates at factories,
by continuously working to cut fixed costs controlled by our cost structural reforms, operating profit
stood at 1,908 million yen (compared to an operating loss of 3,468 million yen for the previous
fiscal year), ordinary profit stood at 1,716 million yen (compared to an ordinary loss of 3,442
million yen for the previous fiscal year), and profit attributable to owners of parent stood at 1,221
million yen (compared to loss attributable to owners of parent of 3,902 million yen for the previous
fiscal year).
In the third quarter onward, while COVID-19 may continue to spread in certain countries andregions, we will work to increase sales and profits through a strong expansion in demand forsemiconductors driven by 5G, etc., and robots, etc., the revitalization of the economy in eachcountry, and steady sales efforts that capture the growth in emerging country markets, etc., while
continuing cost structural reforms.
(Business overview by primary segment)
a. Sewing Machinery and Systems Business
Sales of industrial sewing machines grew in major markets with improved capacity utilization rates
at sewing factories due to a revitalization of activity in the European, North American, Chinese andother markets. Sales of household sewing machines rose in European and North American markets
due to the increase in demand since the beginning of the year, which has been generated by people
staying at home following the spread of COVID-19. As a result, net sales for the Sewing Machineryand Systems Business as a whole were 29,005 million yen (up by 57.3% from the same period of
the previous fiscal year). In terms of profits, increased sales, the rise in capacity utilization rates atfactories, and continued cost cutting led to segment profit (ordinary profit) of 1,028 million yen(compared to segment loss of 1,801 million yen for the previous fiscal year).
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In the third quarter onward, amid a real recovery in demand for industrial sewing machines, we will
work to capture demand recovery in emerging countries and to expand business areas with highadded value such as smart solutions proposals.
b. Industrial Equipment and Systems BusinessWith respect to the Electric Assembly Systems Businesses, in which there were effects on shipping
caused by difficulties in procuring some electronic parts, by capturing capital investment demand in
relation to 5G, etc., primarily in China and other countries and strategically expanding sales ofmostly high-speed machines, sales recovered, rising 90.8% year-on-year. Moreover, sales took an
upward turn in Group Businesses such as contract manufacturing, mainly in Japan. As a result, net
sales for the Industrial Equipment and Systems Business as a whole rose by 50.6% year-on-year to
17,979 million yen. In terms of profits, increased sales, the rise in capacity utilization rates atfactories, and continued cost cutting led to segment profit (ordinary profit) of 1,131 million yen(compared to segment loss of 615 million yen for the previous fiscal year).
In the third quarter onward, while strengthening initiatives to capture high-speed machine demandthrough the introduction of a new type of mounter to the market and through line proposals, we will
work to increase sales and profit by more strongly promoting the expansion of business areas withhigh added value such as the non-SMT field.
(2) Explanation regarding financial position
Assets, liabilities and net assets
Total assets as of June 30, 2021 were 118,503 million yen, an increase of 8,273 million yen
compared to the previous fiscal year-end. This was mainly due to increases in accounts receivable trade and inventories. Liabilities were 84,732 million yen, an increase of 5,870 million yen
compared to the previous fiscal year-end. This mainly reflected an increase in accounts payable trade. Net assets were 33,771 million yen, an increase of 2,402 million yen compared to theprevious fiscal year-end. This was mainly due to an increase in retained earnings and a lower
negative value in foreign currency translation adjustment.
(3) Explanation regarding forward-looking statements such as consolidated earnings forecasts
The Company has not changed the consolidated earnings forecasts for the fiscal year ending
December 31, 2021, from the previously announced figures (announced on February 12, 2021) as
there is much uncertainty surrounding the business environment of the emerging countries,
considering the lockdowns being carried out in Asia’s emerging countries, despite the steadyrecovery from the impact of COVID-19 in Europe, North America, and China. The Company plansto closely examine the situation going forward, giving consideration to the impact on the
Company’s business results, etc.

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2.

Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(million yen)
As of December 31, 2020

As of June 30, 2021

13,831
23,32636,7092,653(530)
75,990

11,13427,92642,391
2,940(403)
83,989

11,213
6,322
5,948
23,484
1,922

10,9706,322
5,718
23,011
1,943

10,172(1,338)
8,833
34,240110,230

10,812(1,252)
9,559
34,514
118,503

7,124
3,004
34,053337
29
5,403
49,952

10,3735,165
34,307584
33
6,846
57,311

21,98920,666

63

25

5,253
1,603
28,90978,861

5,289
1,439
27,421
84,732

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities-4-

(million yen)
As of December 31, 2020

As of June 30, 2021

18,044
1,990
15,073(607)
34,501

18,044
1,990
15,709(607)
35,137478(4,063)116(3,468)335
31,368110,230602(2,438)111(1,724)358
33,771
118,503

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(million yen)Six months ended
June 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Reversal of allowance for doubtful accounts
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of investment securities
Extra retirement payments
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-6-

Six months ended
June 30, 2021

30,49623,750
6,745
10,214(3,468)47,09834,237
12,86010,951
1,908

28
89
21
544
188
873

24
91
22
175
320
633

395
383
67
847
(3,442)

317
417
90
826
1,716

30
30

5
5

26
112
83
223
(3,635)307(3,942)(40)(3,902)

12
–
–
12
1,708
464
1,244
22
1,221

Consolidated statement of comprehensive income (cumulative)(million yen)Six months ended
June 30, 2020
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

Six months ended
June 30, 2021

(3,942)

1,244

(25)
(645)
(11)
(682)
(4,625)

123
1,625
(4)
1,744
2,989

(4,576)

2,966

(49)

22

(3) Consolidated statement of cash flows(million yen)Six months ended
June 30, 2020
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant andequipment and intangible assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in notes discounted
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-

Six months ended
June 30, 2021

(3,635)
1,579
114
45
(75)
10
(118)
395
26

1,708
1,460
(240)
54
(78)
2
(115)
317
(22)

(3)

7

8,724
(384)
(2,686)(12)(1,241)
2,737
118
(379)
(174)
2,301

(3,473)(4,083)
5,072
0
(122)
486
115
(320)
(475)
(193)

(1,691)

(451)

173

19

(245)
(1,763)

(66)
(499)

16,42813,924(4,434)
(0)
(729)
(357)
24,831(154)
25,215
5,976
31,192(831)
3,840(4,654)
(0)
(583)
(306)
(2,536)481(2,747)
13,82011,073

(4) Notes to quarterly consolidated financial statements(Notes to premise of going concern)
No items to report.
(Notes to significant changes in the amount of shareholders’ equity)
No items to report.
(Application of special accounting for preparing quarterly consolidated financial statements)
Calculation of taxes
Taxes are calculated by reasonably estimating the effective tax rate after application of tax effectaccounting to profit before income taxes for the fiscal year, and multiplying the quarterly profit
before income taxes by such estimated effective tax rate.
It should be noted that income taxes-deferred are included in income taxes.
(Additional information)(Accounting estimates following the spread of COVID-19)
With regard to the effects of the spread of COVID-19, it is currently difficult to estimate these
impacts, but based on external information we assume that the effects of the spread of COVID-19
will continue for the certain period of the fiscal year ending December 31, 2021, on which basis wehave created accounting estimates related to such matters as judgments on impairment losses for noncurrent assets, and the recoverability of deferred tax assets.
However, this assumption is highly uncertain, and future results may differ from these estimates andassumptions.
(Segment information, etc.)
1. Information regarding the amounts of net sales and profit/loss by reportable segment
Six months ended June 30, 2020 (January 1, 2020 to June 30, 2020)(million yen)

Reportable segment
SewingIndustrial
Machinery and Equipment andSystems
Systems
Business
Business

Net sales
To external customers
Inter-segment sales ortransfers
Total
Segment profit (loss)

Total

Other
Businesses(Note 1)

Total

Adjustments(Note 2)

Amountrecorded in thequarterly
consolidated
statement ofincome(Note 3)18,442

11,94030,383113

30,496–30,496

409

31

440

199

640

(640)

–

18,852(1,801)

11,971(615)

30,823(2,417)313
41

31,136(2,375)(640)(1,066)30,496(3,442)(Notes) 1. The “Other Businesses” category refers to business segments not included in reportable segments underwhich businesses such as the building management business are classified.
2. Included in the 1,066 million yen deducted from segment profit (loss) as adjustment are a deduction of 58
million yen in inter-segment eliminations and a deduction of 1,125 million yen in corporate loss thatcannot be allocated to any reportable segment. The corporate loss mainly consists of costs related to theadministrative functions of the Company that have not been attributed to any reportable segment andforeign exchange losses that have not been attributed to any reportable segment.
3. Segment profit (loss) is adjusted with ordinary loss in the quarterly consolidated statement of income.

-9-Six months ended June 30, 2021 (January 1, 2021 to June 30, 2021)(million yen)

Reportable segment
SewingIndustrial
Machinery and Equipment andSystems
Systems
Business
Business

Net sales
To external customers
Inter-segment sales ortransfers
Total
Segment profit

Total

Other
Businesses(Note 1)

Total

Adjustments(Note 2)

Amountrecorded in thequarterly
consolidated
statement ofincome(Note 3)29,005

17,97946,984113

47,098–47,098

363

62

426

210

637

(637)

–

29,3691,028

18,042
1,131

47,411
2,159

324
37

47,735
2,197

(637)
(481)

47,098
1,716(Notes) 1. The “Other Businesses” category refers to business segments not included in reportable segments underwhich businesses such as the building management business are classified.
2. Included in the 481 million yen deducted from segment profit as adjustment are a deduction of 0 million
yen in inter-segment eliminations and a deduction of 481 million yen in corporate loss that cannot beallocated to any reportable segment. The corporate loss mainly consists of costs related to theadministrative functions of the Company that have not been attributed to any reportable segment andforeign exchange losses that have not been attributed to any reportable segment.
3. Segment profit is adjusted with ordinary profit in the quarterly consolidated statement of income.

2. Information regarding impairment loss of non-current assets and goodwill by reportable segment
No items to report.

- 10 -