Summary of Financial Results

for

FY2016 Ended March 31, 2017

(April 1, 2016 – March 31, 2017)

Japanese economy

Consumer spending continued to be stagnant, while

corporate performance and the employment environment

improved.

Global economy

continued moderate growth due to steady consumer spending.

showed a moderate recovery trend despite uncertainty due to

the UK’s vote to leave the EU.

staved off the slowdown in its economic growth and showed

a sign of recovery.

USA

EU

China

1. Business environment

Net sales 22,071 mil. yen +3.8% (year-to-year)

Operating income 2,394 mil. yen +43.9% (year-to-year)

Operating income margin 10.8% 7.8%

ROE 9.7% 6.7%

Dividend 60 yen (outlook) 55 yen

2. FY2016 sales and profit factors

• Thermistor sensors for air conditioners and thermistor elements

for automobiles were strong.

• Pro-active sales activities were maintained, targeting at automotive,

energy-saving and green-oriented fields.

FY2015 (ended Mar. 31, 2016) FY2016 (ended Mar. 31, 2017)

Amount Composition

ratio Amount

Composition

ratio

Comparison

with last year

Net sales 21,261 100.0 22,071 100.0 3.8

Cost of sales 16,773 78.9 16,722 75.8 △0.3

Gross profit 4,487 21.1 5,349 24.2 19.2

Selling, general and

administrative expenses 2,823 13.3 2,955 13.4 4.6

Operating income 1,663 7.8 2,394 10.8 43.9

Non-operating income 69 0.3 84 0.4 22.2

Non-operating expenses 22 0.1 15 0.1 △31.5

Ordinary income 1,710 8.0 2,463 11.2 44.0

Extraordinary income 113 0.5 0 0.0 －

Extraordinary loss 119 0.6 17 0.1 △85.6

Income taxes and other 479 2.3 617 2.8 28.7

Net income attributable to

owners of the parent 1,213 5.7 1,818 8.2 49.8

(Amount: mil. yen, comparison: ％)

3. Statement of income (Summary)

16,490

14,546

13,099

16,548 17,086 16,143

18,757

20,113 21,261

22,071

2,457

1,214 869

2,055

1,778

849

1,366

1,889 1,663

2,394

0

1,000

2,000

3,000

4,000

5,000

0

5,000

10,000

15,000

20,000

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Outlook

Net sales Operating income

24,500

2,650

（Mil. yen） （Mil. yen）

4. Net sales and operating income

5. Balance sheet (Summary)

Assets Liabilities and shareholders’ equity

Mar. 31

2016

Mar. 31

2017 Change

Current liabilities 5,897 6,581 683

Account payable 3,134 3,296 161

Short-term loan

payable 923 709 △213

Other 1,839 2,569 737

Noncurrent assets 1,649 1,189 △460

Long-term loan payable

1,241 772 △469

Other 408 417 9

Total liabilities 7,546 7,770 223

Net assets 18,441 19,343 902

Total liabilities and

net assets 25,987 27,113 1,125

(Mil. yen)

Mar. 31

2016

Mar. 31

2017 Change

Current assets 17,930 18,901 970

Cash and deposits 6,381 6,348 △32

Account

receivable 5,860 6,472 612

Inventory assets 4,799 5,091 291

Other 889 989 100

Noncurrent assets 8,057 8,212 154

Property, plant and

equipment 7,217 7,300 82

Intangible assets 143 138 △5

Investments and

other assets 695 773 77

Total assets 25,987 27,113 1,125

13,441 14,334 15,971 18,126 18,441

19,343

61.4 68.2 68.8 68.1 70.6 70.9

0

10

20

30

40

50

60

70

80

0

10,000

20,000

2012 2013 2014 2015 2016 2017 End of March

21,688 20,828 22,998 26,462 25,987

27,113

0

10,000

20,000

2012 2013 2014 2015 2016 2017 End of March

3,672 3,878 3,786 4,340 4,799 5,091

0 1,000 2,000 3,000 4,000 5,000

2012 2013 2014 2015 2016 2017 End of March

6. Balance sheet items

Total assets

Inventory assets

Shareholders’ equity and equity ratio

(Mil. yen)

(Mil. yen)

(Mil. yen)

-2,506

-1,127 -1,169 -1,544 -1,224

2,151 2,006 2,042 2,108 2,514

-354 879 873 564 1,290

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

-753 -314

308

-1,068 -1,235 -1,250

0

1,250

2013 2014 2015 2016 2017

2013 2014 2015 2016 2017

7. Cash flows

Free cash flow

Cash flow used in financing activities

(Mil. yen)

(Mil. yen)

End of March

End of March

Cash flow from operating activities

Cash flow used in investing activities

Free cash flow

958 995 1,076 1,217 1,392

1,235

0

500

1,000

1,500

2,000

2012 2013 2014 2015 2016 2017 2018 Outlook

End of March

1,305 2,625 1,409 1,769 1,562

1,214

0

1,000

2,000

3,000

2012 2013 2014 2015 2016 2017 2018 Outlook

End of March

219 326 331 445 435 0

100

200

300

400

500

2012 2013 2014 2015 2016 2017 2018 Outlook

End of March

2,600

1,500

500 438

8. Capital expenditure, depreciation, R&D expenditure

Capital expenditure

Depreciation

Research and development expenditure

(Mil. yen)

(Mil. yen)

(Mil. yen)

4,715

5,736

6,167

6,800

1,805

1,917

2,036

2,300 3,429

3,810

4,363

4,900

3,823

3,349

3,316

3,500

2,193

2,219

1,971

2,250

1,153

1,269

1,361

1,500 2,204

2,253

2,283

2,550

791 708 575

700

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

FY2

01

4

FY2

01

5

FY2

01

6

FY2

01

7*

素子 住設機器 空調機器 家電 OA 産業機器 自動車 計測器 他

9. Sales amount by application

(Mil. yen)

Thermistor elements

Household equipment

Air conditioning

Home appliances

OA Industrial equipment

Automotive Other

*FY2017

shows

outlook

Automotive 30.0%

Air conditioning

20.3%

Home appliances

17.3%

Household equipment

10.9%

OA 9.2%

Industrial equipment

6.8% Other 5.5%

10. Sales by application

Key initiatives

1. Operating activities by a united team of Engineering & Sales staff

2. Aggressive capital investment preparing for increase in orders

3. Continuous efforts for cost reduction including investment in

automation

4. Further enhanced study & development system

11. FY2017 (ending Mar. 31, 2018) business outlook (Summary)

Year-to-year basis

Net sales 24,500 mil. yen +11.0%

Operating income 2,650 mil. yen +10.7%

H1 FY2017

outlook

H2 FY2017

outlook

FY2017

full year

outlook

Net sales 12,000 12,500 24,500

(8.6) (13.4) (11.0)

Operating income 1,250 1,400 2,650

(16.1) (6.2) (10.7)

Ordinary income 1,250 1,400 2,650

(23.9) (△3.7) (7.6)

Net income

attributable to

owners of the parent

920 1,040 1,960 (33.6) (△7.9) (7.8)

12. FY2017 (ending March, 2018) business outlook

( ): Year-to-year comparison

(Amount: mil. yen, comparison: ％)

65.05

151.22

212.07

156.10

235.05

5.3

7.3

9.4

7.8

10.8

0.0

5.0

10.0

15.0

0.00

50.00

100.00

150.00

200.00

250.00

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Outlook

EPS (earnings per share)

Operating profit margin

（Yen） （％）

10.8

253.34

13. Management indices

Business Deployment

Aggressive investment toward market share

expansion

Increased sales in overseas markets

Targeting “green-oriented”, “energy-saving”

and “safety-related” fields

Further enhanced study & development system

14. Business deployment

Aggressive investment toward market share expansion

15. Business deployment: Aggressive investment toward market share expansion 1/4

Sept 2012 Sannohe constructed its 3rd building

Shanghai moved to expand floor space

Dec 2013

Apr 2014

Apr 2015

Apr 2017

May 2017

Nov 2017

Fukushima constructed its 2nd factory (Matsukawa) Iwate absorbed Ichinohe

Thai constructed its 5th building

Fukushima acquired the adjacent land for renovation

Tohoku started construction of its 3rd building

Thai will start construction of its 6th building

Apr 2017 Fukushima Shibaura acquired the adjacent land for renovation

16. Business deployment: Aggressive investment toward market share expansion 2/4

May 2017 Tohoku Shibaura started construction of its 3rd building

17. Business deployment: Aggressive investment toward market share expansion 3/4

Nov 2017 Thai will start construction of its 6th building

18. Business deployment: Aggressive investment toward market share expansion 4/4

19. Business deployment: Increased sales in overseas markets

Increased sales in overseas markets

Germany: Shibaura Electronics Europe GmbH

was established in Dec 2013

USA: Shibaura Electronics of America Corporation

was established in Sept 2015

Enhanced sales network

Active utilization of distributors

Green-oriented, energy-saving and safety-related fields

World trends

Green-oriented, energy-saving,

highly-functional, safety-related

Expanding

applications Larger share in growing fields

Thermistor elements

High quality Large supply Wide temperature range

Housing equipment

Green-oriented

Energy- saving

Safety-related Housing

equipment

Home appliances

Green-oriented

Energy- saving

All electrification

Highly-functional

Emerging countries

OA Colorization Highly-functional (Non-contact)

Industrial equipment

Green-oriented

Energy- saving

Capital investment

Automotive Green-oriented

Energy- saving

Hybrid EV Clean diesel

Air conditioning

Green-oriented

Energy- saving

Inverter Europe & Emerging Countries

20. Business deployment: Target fields

1. Development of new & improved products

2. Improvement of existing products

3. Improvement of production efficiency – automatization

4. Collaborative research with academia

Further enhanced study & development system

21. Business deployment | Further enhanced study & development system

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.

Thank you very much.

References

Definition of terms

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.

Thermistor

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 formally patented products in major countries (Japan, the

U.S., the U.K., Germany, France, Canada, Italy and Switzerland.)

Household

equipment

Solar system Shower toilet Water heater

Highly efficient hot

water supply

system

1- 3 2 - 3 2 - 5 10 - 20

A/C Fan heater Room A/C Industrial A/C

2 - 3 2 - 5 5 - 15

Home

appliances

Microwave oven Rice cooker Refrigerator IH cooker

2 - 3 2 - 3 2 - 8 5 - 15

OA Printer Copy machine

Multi-functional

copier

2 - 3 2 - 3 3 - 5

Industrial

equipment

Fire alarm Machine, robot Freezing showcase Freezing container

2 1 - 2 2 - 5 5 - 10

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

4 - 5 8 - 10 8 - 10

Number of thermistors installed in a product

Glass coated thermistors Glass coated thermistors for

(Existing products) high temperatures

29

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

Applications

Applications for various temperature ranges

0℃ 50℃ 100℃ 300℃ 500℃

(Tuna) stock freezer

Refrigerator

Air conditioner

EcoCute (CO2 heat pomp)

Hot-water supply

Dishwasher (Drying)

Automotive (Water)

Rice cooker

Microwave oven

Automotive (HV & EV motors)

Copy machine

IH cooker

Fan heater

Automotive (EGR)

Oven

Household (Gas flame)

Automotive (DPF)

29