Shibaura Electronics : Consolidated Financial Results for Q2/FY2022（923KB）

Consolidated Financial Results

for the Six Months Ended September 30, 2022

[Japanese GAAP]

November 14, 2022

Company name: Shibaura Electronics Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 6957

URL: https://www.shibaura-e.co.jp

Representative: Akira Kasai, President & Chief Executive Officer

Contact: Yukihide Hoshinoya, Executive Officer, General Manager of Administrative Department

Phone: [phone]

Scheduled date for filing quarterly securities report: November 14, 2022

Scheduled date for commencing dividend payments: －

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 to September 30, 2022)

(1) Consolidated operating results		(% indicates changes from the previous corresponding period.)
								Net income
		Net sales		Operating income	Ordinary income	attributable to owners
								of parent
	Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	September 30, 2022	16,370	6.2	2,606	(7.1)	2,787	(1.0)	1,829	8.6
	September 30, 2021	15,418	37.2	2,806	235.0	2,816	241.9	1,684	200.8

(Note) Comprehensive income: Six months ended September 30, 2022: ¥2,989 million [53.7%]

Six months ended September 30, 2021: ¥1,945 million [677.5%]

Basic earnings

Diluted earnings

per share

per share

Six months ended

Yen

Yen

September 30, 2022

237.97

－

September 30, 2021

218.44

－

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

As of September 30, 2022

Million yen

Million yen

%

41,518

30,534

73.4

As of March 31, 2022

40,599

28,710

70.6

(Reference) Equity: As of September 30, 2022: ¥30,492 million

As of March 31, 2022:

¥28,671 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

－

0.00

－

150.00

150.00

Fiscal year ending March 31, 2023

－

0.00

Fiscal year ending March 31, 2023

－

160.00

160.00

(Forecast)

(Note) Revision to the dividend forecast announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

							Net income		Basic earnings
	Net sales		Operating income	Ordinary income	attributable to
			per share
							owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	33,000	7.8	6,000	7.7	6,000	6.5	4,000	9.5	520.27

(Note) Revision to the financial results forecast announced most recently: No

Notes:

1. Changes in significant subsidiaries during the period under review: No
   (Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included: -

Excluded: -

1. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates and restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2022:	7,779,865 shares
March 31, 2022:	7,779,865 shares

2) Total number of treasury shares at the end of the period:

September 30, 2022:	91,657 shares
March 31, 2022:	91,595 shares

3) Average number of shares during the period:

Six months ended September 30, 2022: 7,688,244 shares

Six months ended September 30, 2021: 7,711,010 shares

Note: The Company has introduced the Board Incentive Plan (BIP Trust). Shares of the Company held in the Trust are included in treasury shares to be deducted for the calculation of the "total number of treasury shares at the end of the period" and the "average number of shares during the period."

• These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of the financial results forecast and other notes

･The earnings forecasts and other forward-looking statements herein are based on certain information available to the Company as of the date of publication of this document and on certain assumptions deemed reasonable. As such, it is not a commitment made by the Company to achieve them and actual results may differ significantly from these forecasts due to a wide range of factors. For the assumptions used as the basis for the financial results forecast and notes on the use of the forecast, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Statements" on page 6 of the appendix to this report.

･The Company will hold a financial results briefing session for institutional investors and analysts on November 29, 2022. The briefing materials on financial results to be used at the session will be posted on the Company's website promptly after the event.

Shibaura Electronics Co., Ltd. (6957)

Consolidated Financial Results for the Six Months Ended September 30, 2022

Appendix

Table of Contents

1. Qualitative Information on Quarterly Financial Results for the Period under Review.........................	2
(1)	Explanation of Operating Results .............................................................................................	2
(2)	Explanation of Financial Position .............................................................................................	4
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-Looking
	Statements ................................................................................................................................	6
2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................	7
(1)	Quarterly Consolidated Balance Sheets ....................................................................................	7
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ............................	9
(3)	Quarterly Consolidated Statements of Cash Flows .................................................................	11
(4)	Notes to Quarterly Consolidated Financial Statements...........................................................	13
	(Notes regarding Going Concern Assumptions)......................................................................	13
	(Notes in the Case of Significant Changes in Shareholders' Equity) ......................................	13
	(Significant Subsequent Events)..............................................................................................	13

1

Shibaura Electronics Co., Ltd. (6957)

Consolidated Financial Results for the Six Months Ended September 30, 2022

1. Qualitative Information on Quarterly Financial Results for the Period under Review

1. Explanation of Operating Results

Looking at the global economy surrounding the Group, which consists of Shibaura Electronics Co., Ltd. (the "Company") and its subsidiaries (collectively, the "Group"), during the six months ended September 30, 2022, while the economy continued to recover from the impact of the novel coronavirus disease (COVID-19), there was a sense of a slowdown in the global economy caused by supply chain stagnation due to shortages of semiconductors and other raw materials, as well as rising prices of raw materials and energy due to the prolongation of Russia's invasion of Ukraine. Regarding the Japanese economy, although exports are on an upward trend, the environment surrounding companies is extremely uncertain due to factors including soaring prices of raw materials and energy.

Under these circumstances, the Group was temporarily unable to operate its Shanghai plant due to the lockdown in Shanghai. However, thanks to the backup support from our Group companies in Japan and overseas, there had been no major impact on our business. Currently, the lockdown has been lifted and we are able to steadily carry out our operations. However, this has resulted in increased cost burden, putting pressure on our profits and resulting in lower operating income compared to the six months ended September 30, 2021. The Group has been continuously making company-wide efforts to achieve its Sense the Dynamics Medium-Term Business Plan. We have also been renovating the Ayutthaya factory of Thai Shibaura Denshi Co., Ltd., which has been suspended since 2011 due to flood damage, aiming for completion in March 2023. From a manufacturing perspective, the Group undertook efforts to improve quality and productivity primarily through research and development of manufacturing equipment using IT technology as well as continuous improvement activities. As for the soaring purchase prices of raw materials, the situation has been improving as the Group has been working to create a system that allows a stable material supply while keeping costs down, for example, through selection of interchangeable components for the materials that are expected to be difficult to procure. In addition, the Group is engaged in research projects related to material formation, physical property research and other areas through industry-academia collaboration, as well as research and development activities that include product development projects in collaboration with customers and suppliers. From a sales perspective, sales of household equipment-related products increased significantly in home appliances, with an increase especially seen in the sales of sensors for gas water heaters and fuel-freeheat-pump water heaters, while sales of sensors for cooking appliances such as microwave ovens and coffee machines decreased. Regarding automobiles, while sales of EV/HV sensors increased due to factors including the gradual easing of semiconductor shortages and supply chain stagnation, as well as the promotion of electrification as a result of soaring energy prices, sales of in-vehicle thermistor elements decreased. For industrial equipment, sales mainly for general-purpose inverters increased due to strong capital investments worldwide. The Group has also continued to proactively address environmental, social, and governance (ESG) issues, most notably by facilitating diverse work styles, enhancing human resources development, supporting employees' health promotion, bolstering governance, and reducing CO2 emissions.

As a result of these efforts, the consolidated financial results for the six months ended September 30, 2022 were as follows.

				(Million yen)
	For the six months	For the six months
	ended September	ended September	Change	Rate of change
	30, 2021	30, 2022
Net sales	15,418	16,370	951	6.2%
Operating income	2,806	2,606	(200)	(7.1)%
Ordinary income	2,816	2,787	(29)	(1.0)%
Net income attributable to	1,684	1,829	145	8.6%
owners of parent

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Shibaura Electronics Co., Ltd. (6957)

Consolidated Financial Results for the Six Months Ended September 30, 2022

Net sales by business field were as follows.

Net sales by business field

				(Million yen)
	For the six months	For the six months
Business field	ended September	ended September	Change	Rate of change
	30, 2021	30, 2022
Home appliances	7,587	7,635	48	0.6%
Automobiles	4,823	5,095	271	5.6%
Industrial equipment	1,849	2,325	476	25.8%
Others	1,158	1,314	155	13.4%
Total	15,418	16,370	951	6.2%

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