Summary of Financial Results

for

FY2015 Ended March 31, 2016

(April 1, 2015 – March 31, 2016)

Japanese economy

shows gradual recovery with improved corporate performance,

employment situation and firm personal consumption supported

by government’s economic policy package including monetary

easing.

US

China

EU

Global economy

sustains recovery with steady personal consumption.

shows decrease in strength due to geopolitical factors and political uncertainty clearly slows down with decrease in growth rate.

1. Business environment

Net sales 21,261 mil. yen +5.7% (year-to-year)

Operating income 1,663 mil. yen -12.0% (year-to-year)

Operating income margin 7.8 % 9.4%

ROE 6.7 % 9.7%

Dividend 55 yen (outlook) 50 yen

2. FY2014 sales and profit factors

• Thermistor sensors for air conditioners and thermistor elements

for automobiles are strong.

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

energy-saving and green-oriented markets.

• Increase in liability at Fukushima Shibaura due to change of calculation

method of pension cost.

FY2014 (ended Mar. 31, 2015) FY2015 (ended Mar. 31, 2016)

Amount Composition

ratio Amount

Composition

ratio

Comparison

with last year

Net sales 20,113 100.0 21,261 100.0 5.7

Cost of sales 15,581 77.5 16,773 78.9 7.7

Gross profit 4,532 22.5 4,487 21.1 △1.0

Selling, general and

administrative expenses 2,642 13.1 2,823 13.3 6.8

Operating income 1,889 9.4 1,663 7.8 △12.0

Non-operating income 67 0.3 69 0.3 2.1

Non-operating expenses 31 0.2 22 0.1 △26.7

Ordinary income 1,926 9.6 1,710 8.0 △11.2

Extraordinary income 404 2.0 113 0.5 △72.0

Extraordinary loss 24 0.1 119 0.6 396.1

Income taxes and others 643 3.2 479 2.3 △25.5

Net income attributable to

owners of the parent 1,648 8.2 1,213 5.7 △26.4

(Amount: mil. yen, comparison: ％)

3. Statement of income (Summary)

15,872 16,490

14,546

13,099

16,548 17,086

16,143

18,757

20,113

21,261

2,180

2,457

1,214 869

2,055

1,778

849

1,366

1,889

1,663

0

1,000

2,000

3,000

4,000

5,000

0

5,000

10,000

15,000

20,000

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

22,400 （Mil. yen）

2,000

4. Net sales and operating income

（Mil. yen）

Outlook

5. Balance sheet (Summary)

Assets Liabilities and shareholders’ equity

Mar. 31

2015

Mar. 31

2016 Change

Current liabilities 6,217 5,897 △320

Account payable 2,956 3,134 177

Short-term loan

payable 1,082 923 △159

Others 2,178 1,839 △339

Noncurrent assets 2,118 1,649 △469

Long-term loan payable 1,740 1,241 △499

Others 377 408 30

Total liabilities 8,336 7,546 △790

Net assets 18,126 18,441 315

Total liabilities and

net assets 26,462 25,987 △474

(Mil. yen)

Mar. 31

2015

Mar. 31

2016 Change

Current assets 17,757 17,930 172

Cash and deposits 6,957 6,381 △576

Account

receivable 5,603 5,860 256

Inventory assets 4,340 4,799 459

Others 856 889 32

Noncurrent assets 8,704 8,057 △647

Property, plant and

equipment 7,740 7,217 △522

Intangible assets 139 143 4

Investments and

other assets 824 695 △129

Total assets 26,462 25,987 △474

12,493 13,441 14,334 15,971 18,126

18,441

64.3 61.4 68.2 68.8 68.1 70.6

0

10

20

30

40

50

60

70

80

0

10,000

20,000

2011 2012 2013 2014 2015 2016

19,258 21,688 20,828 22,998 26,462

25,987

0

10,000

20,000

2011 2012 2013 2014 2015 2016

3,353 3,672 3,878 3,786 4,340

4,799

0

2,000

4,000

2011 2012 2013 2014 2015 2016

6. Balance sheet items

Total assets

Inventory assets

Shareholders’ equity and equity ratio

(Mil. yen)

(Mil. yen)

(Mil. yen)

End of March

End of March

End of March

-1,240

-2,506

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

1,455 2,151 2,006 2,042 2,108

215

-354

879 873 564

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

588

-753

-314

308

-1,068 -1,250

0

1,250

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

7. Cash flows

Free cash flow

Cash flow used in financing activities

(Mil. yen)

(Mil. yen)

End of March

End of March

827 958 995 1,076 1,217

1,392

0

500

1,000

1,500

2011 2012 2013 2014 2015 2016 2017

851 1,305 2,625 1,409 1,769

1,562

0

1,000

2,000

2011 2012 2013 2014 2015 2016 2017

117 219 326 331 445 0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017

1,600

1,350

500 435

Capital expenditures

Depreciation

Research and development expenditures

(Mil. yen)

(Mil. yen)

(Mil. yen)

8. Capital expenditure, depreciation, R&D expenditure

End of March

End of March

End of March

Outlook

Outlook

Outlook

4,043

4,715

5,736

6,200

1,900

1,805

1,917

2,000

3,312

3,429

3,810

4,200

3,514

3,823

3,349

3,400

2,046

2,193

2,219 2,250

1,141

1,153

1,269

1,300 2,156

2,204

2,253

2,350

645 791

708

700

0

1,000

2,000

3,000

4,000

5,000

6,000 FY

20

13

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

FY2

01

3

FY2

01

4

FY2

01

5

FY2

01

6*

素子 住設機器 空調機器 家電 OA 産業機器 自動車 計測器 他

(Mil. yen)

*FY2016 shows

outlook

Thermistor elements

Household equipment

Air conditioning

Home appliances

OA Industrial equipment

Automotive Others

9. Sales amount by application – 1

2,217

2,161 2,276

2,400

3,396 3,510

3,904

4,300

3,960

4,295

3,940

4,050

2,123 2,278

2,287

2,300

1,268 1,299

1,397

1,450

4,605

5,133

6,019

6,450

1,183

1,434

1,438

1,450

0

1,000

2,000

3,000

4,000

5,000

6,000 F

Y2

01

3

FY

201

4

FY

201

5

FY

201

6*

FY

201

3

FY

201

4

FY

201

5

FY

201

6*

FY

2013

FY

201

4

FY

201

5

FY

201

6*

FY

201

3

FY

201

4

FY

201

5

FY

201

6*

FY

201

3

FY

201

4

FY

201

5

FY

2016*

FY

201

3

FY

201

4

FY

201

5

FY

201

6*

FY

201

3

FY

201

4

FY

201

5

FY

201

6*

住設機器 空調機器 家電 OA 産業機器 自動車 計測器 他

素子

センサ

*FY2016 shows

outlook

Household equipment

Air conditioning

Home appliances

Industrial equipment

Automotive Others

(Mil. yen)

10. Sales amount by application – 2 (incl. thermistor elements)

Element

Sensor

OA

Automotive 28.3%

Home appliances

18.5% Air

conditioning 18.4%

OA 10.8%

Household Equipment

10.7%

Industrial Equipment

6.6% Others

11. Sales by application

Intake air

HV motor

Ambient air

Room air

Intake air

(quick response) Water / Oil Transmission fluid

Battery

Fuel

12. Sensors for automobiles

12. FY2016 (ending Mar. 31, 2017) business outlook (summary)

Year-to-year basis

Net sales 22,400 mil. yen +5.4%

Operating income 2,000 mil. yen +20.2%

Further enhanced study & development system

Operating activities by a united team of Engineering & Sales staff

Continuous efforts for cost reduction including investment in

automation

Aggressive capital investment preparing for an increase in orders

H1 FY2016

outlook

H2 FY2016

outlook

FY2016 full year

outlook

Net sales 11,000 11,400 22,400

(4.1) (6.6) (5.4)

Operating income 950 1,050 2,000

(16.2) (24.1) (20.2)

Ordinary income 950 1,050 2,000

(11.9) (22.0) (17.0)

Net income

attributable to

owners of the parent

710 790 1,500

(19.5) (27.6) (23.6)

13. FY2016 (ending March, 2017) business outlook

(Amount: mil. yen, comparison: ％)

( ): Year-to-year comparison

Business Deployment

Further enhanced study & development system

World trends

Environment, energy-saving,

high functionality, safety

Expanding

applications

Larger share in growing

fields

Thermistor elements

high quality large supply Wide temperature range

Housing equipment

Environment Energy- saving

Safety

Home appliances

Environment Energy- saving

All electrification

High-functionality

Emerging countries

OA Colorization High-functionality (Non-contact)

Industrial equipment

Environment Energy- saving

Capital investment

Automotive Environment Energy- saving

Hybrid EV Clean diesel

16. Business deployment | Further enhanced study & development system

Air conditioning

Environment Energy- saving

Inverter Europe & Emerging Countries

Increased sales in overseas markets

USA: Shibaura Electronics of America Corporation was established

in September, 2015

Enhanced sales network

17. Business deployment | Increased sales in overseas markets

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 thermal stability, 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.)

<Reference>

Household 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 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 <Reference>

Glass coated thermistors Glass coated thermistors for

(Existing products) high temperatures

24

-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)

<Reference>

24