November 27, 2018

Results for the Six Months Ended September 30, 2018 (April 1, 2018 to September 30, 2018)

Financial Results

for the First Half of FY2018

(April 1, 2018 - September 30, 2018)

1. FY2018 2Q sales and profit factors

Net sales 13,622 mil. yen +9.8% (year-to-year)

Operating income 1,555 mil. yen +1.6% (year-to-year)

Operating income margin 11.4% 12.3%

(same period last year)

• Sales increased for each application.

• Products for air conditioners and for automobiles were in good shape.

• Cost increased in order to meet a rapid increase in demand for

thermistor sensors for air conditioners and it caused reducing

operating income margin from the same period last year.

2. Statement of income (Summary)

1H FY2017

ended Sept. 30, 2017

1H FY2018

ended Sept. 30, 2018

AmountComposition

ratioAmount

Composition

ratio

Comparison

with last year

Net sales 12,408 100.0 13,622 100.0 9.8

Cost of sales 9,334 75.2 10,378 76.2 11.2

Gross profit 3,074 24.8 3,244 23.8 5.5

Selling, general and

administrative expenses1,543 12.4 1,689 12.4 9.5

Operating income 1,530 12.3 1,555 11.4 1.6

Non-operating income 51 0.4 36 0.3 −29.0

Non-operating expenses 7 0.1 30 0.2 321.3

Ordinary income 1,575 12.7 1,561 11.5 −0.9

Extraordinary income 0 0.0 0 0.0 0.0

Extraordinary losses 18 0.1 22 0.2 27.6

Income taxes and others 437 3.5 439 3.2 0.4

Net income attributable to

owners of the parent1,120 9.0 1,099 8.1 −1.9

(Amount: mil. yen, comparison: %)

3. Net sales and operating income

14,546

13,099

16,548 17,086 16,143

18,757

20,113

21,261

22,071

25,289

13,622

1,214

869

2,055 1,778

849

1,366

1,889

1,663

2,394

3,045 3,170

0

2,500

5,000

0

15,000

30,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Outlook

Net sales Operating income 27,500

（Mil. yen） （Mil. yen）

4. Balance sheet (Summary)

Mar. 31

2018

Sept. 30

2018Change

Current liabilities 7,760 8,890 1,129

Account payable 3,749 4,115 366

Short-term loan

payable831 805 −25

Others 3,180 3,969 788

Noncurrent liabilities 1,503 1,220 −282

Long-term loan

payable1,167 854 −313

Others 335 366 30

Total liabilities 9,263 10,111 847

Net assets 21,468 21,770 302

Total liabilities and

net assets30,732 31,881 1,149

Mar. 31

2018

Sept. 30

2018Change

Current assets 21,047 20,798 −249

Cash and

deposits7,130 6,223 −907

Account

receivable7,373 7,691 318

Inventory assets 5,699 6,282 582

Others 844 601 −242

Noncurrent assets 9,684 11,083 1,399

Property, plant

and equipment8,477 9,758 1,280

Intangible assets 132 129 −2

Investments and

other assets1,074 1,195 120

Total assets 30,732 31,881 1,149

Assets Liabilities and

shareholders’ equity

(Mil. yen)(Mil. yen)

18,126 18,441 19,343

21,468 21,770

68.170.6 70.9

69.4 68.2

0

10

20

30

40

50

60

70

80

0

10,000

20,000

Mar. 31,

2015

Mar. 31,

2016

Mar. 31,

2017

Mar. 31,

2018

Sep. 30,

2018

26,462 25,987 27,113

30,732

31,881

Mar. 31,

2015

Mar. 31,

2016

Mar. 31,

2017

Mar. 31,

2018

Sep. 30,

2018

4,340

4,799

5,091

5,699

6,282

Mar. 31,

2015

Mar. 31,

2016

Mar. 31,

2017

Mar. 31,

2018

Sep. 30,

2018

*

*

*Applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018).

5. Balance sheet items

Total assets Inventory assetsShareholders’ equity and

equity ratio

(Mil. yen) (Mil. yen)(Mil. yen)

-899

-336

-702

698

-914

End of Sept.

2016

End of Mar.

2017

End of Sept.

2017

End of Mar.

2018

End of Sept.

2018

-518 -706

-968 -962

-1,715

940

1,574

1,144

1,557 1,749

422

868

176

594

33

-2,000

-1,000

0

1,000

2,000

End of

Sept.

2016

End of

Mar.

2017

End of

Sept.

2017

End of

Mar.

2018

End of

Sept.

2018

6. Cash flows

Cash flow used in financing activitiesFree cash flow

(Mil. yen) (Mil. yen)

1,217

1,392

1,282

1,369

726

1,769 1,562

1,214

1,941

1,689

445 435 438

724

190

750

4,500

1,700

7. Capital expenditure, depreciation, R&D expenditure

Capital expenditure DepreciationResearch and development expenditure

(Mil. yen) (Mil. yen)(Mil. yen)

3,151

3,468

3,690

2,197

2,640

3,157

1,752

1,826

1,996

1,119 1,213

1,449

936 1,105

1,144

941 968

1,001

629 701

861

320 482

320

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

Sep

t. 2

016

Sep

t. 2

017

Sep

t. 2

018

素子 空調機器 家電 自動車 住設機器 ＯA 産業機器 計測器他

8. Sales by application(based on 1H, ended September 30)

(Mil. yen)

Thermistor

elements

Air

conditioners

Home

appliancesAutomotive Household

equipment

Industrial

equipmentOA Measuring

instruments,

and others

Automotive

Air conditioners

Home appliances

Household equipment

OA

Industrial equipment

Others29.5%

22.1%16.7%

Automotive

Air conditioners

Home appliances

Household equipment

OA

Industrial equipment

Others29.1%

23.7%17.0%

10.4%

8.0%

6.3%

9.9%

7.6%

7.1%

9. Sales by application

FY2017 1HEnded September 30, 2017

FY2018 1HEnded September 30, 2018

FY2017

Actual

1H FY2018

Actual

2H FY2018

Outlook

FY2018

Full year

outlook

Net sales25,289 13,622 13,877 27,500

（14.6） （9.8） （7.7） （8.7）

Operating income3,045 1,555 1,615 3,170

（27.2） （1.6） （6.6） （4.1）

Ordinary income3,071 1,561 1,608 3,170

（24.7） （−0.9） （7.5） （3.2）

Net income

attributable to

owners of the parent

2,280 1,099 1,270 2,370

（25.4） （−1.9） （9.5） （3.9）

10. FY2018 (ending March 31, 2019) business outlook

(Amount: mil. yen, comparison: ％)

( ): Year-to-year comparison

Topics (Factory Expansion)

11. Thai Shibaura Denshi

The 6th building was completed in Thai Shibaura Denshi, Shibaura’s biggest thermistor sensor factory.

-Area of the factory: Two-story building, approx. 9,600㎡ (The total floor area increased by 30%.)

123

4

5

6

-Completion: June 2018

-Start of operation: August 2018 (Operating successfully)

12. Motomiya Factory of Fukushima

Rendering of the 10th building

-Floor area: Three-story building, approx. 4,551㎡

-Start of construction: October 2018

-Estimated time of completion:

①③②

⑨

⑧ ④⑤ ⑥

⑦

⑩

May 2019

Thank you very much.

Disclaimer regarding forward-looking statements

The foregoing statements regarding future results reflect the Company‘s expectations based on information available at the time of announcement. The information contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

References

[Reference] Definition of terms

Thermistor

A thermistor is a thermally sensitive resistor generally composed of semiconductor materials, and its

resistance varies significantly with temperature.

Thermistors are economical and stable, and operate in the temperature range that covers the whole

range necessary for ordinary temperature control. They therefore are used in a wide range of

applications.

Shibaura produces NTC (negative temperature coefficient) thermistors only. They exhibit decreasing

resistance with increasing temperature, and are used in temperature detection sensors.

There are also PTC (positive temperature coefficient) and CTR (critical temperature resistor)

thermistors.

PSB thermistor element

Shibaura independently developed glass-encapsulated thermistors.

With excellent heat-resisting property, mechanical strength and stability, they are now Shibaura’s main

products.

PSB thermistors are formerly patented in major countries (Japan, the U.S., the U.K., Germany, France,

Canada, Italy and Switzerland.)

[Reference] Applications by temperature

-50℃ 0℃ 50℃ 100℃ 300℃ 500℃ 1,000℃

Application

Shibaura’s thermistors cover from -50℃ to 1,000℃

Existing products(Glass coated thermistors)

high-value-added products(Glass coated thermistors for high temperature)

Shibaura’s original technology

●(Tuna) stock

freezer

●Refrigerator

●Air conditioner

●EcoCute(CO2 heat pomp)

●Hot-water supply

●Automotive(Water)

●Dishwasher(Drying)

●Rice cooker

●Microwave oven

●Automotive(HV & EV motors)

●Copy machine

●IH cooker

●Fan heater

●Automotive(EGR)

●Oven●Household equipment(Gas flame)

●Automotive(DPF)

[Reference] Number of thermistors installed in a product

Household

equipment

Solar system Shower toilet Water heaterHighly efficient hot

water supply system

[ 1 to 3] [ 2 to 3 ] [ 2 to 5 ] [ 10 to 20 ]

A/C

Fan heater Room A/C Industrial A/C

[ 2 to 3 ] [ 2 to 5 ] [ 5 to 15 ]

Home

appliances

Microwave oven Rice cooker Refrigerator IH cooker

[ 2 to 3 ] [ 2 to 3 ] [ 2 to 8 ] [ 5 to 15 ]

OA

Printer Copy machineMulti-functional

copier

[ 2 ] [ 2 to 3 ] [ 3 to 5 ]

Industrial

equipment

Fire alarm Machine, robot Freezing showcase Freezing container

[ 2 ] [ 1 to 2 ] [ 2 to 5 ] [ 5 to 10 ]

Automotive

Car A/C Intake air, exhaust gas, water, fuel, oil Hybrid system

[ 4 to 5 ] [ 8 to 10 ] [ 8 to 10 ]

[ ] :Number of thermistors in a product