Shibaura Mechatronics : Consolidated Financial Results（Q3 of The Year Ending March 31, 2024）

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

	Consolidated Financial Results
	for the Nine Months Ended December 31, 2023
	(Under Japanese GAAP)
		February 8, 2024
Company name:	SHIBAURA MECHATRONICS CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	6590
URL:	https://www.shibaura.co.jp
Representative:	(Name) Keigo Imamura, (Title) Representative Director,
		President and Chief Executive Officer
Inquiries:	(Name) Kenichi Ikeda, (Title) Director and Executive Vice President,
Telephone:	[phone]	Executive General Manager of Corporate Management Division
Scheduled date to file quarterly report:	February 13, 2024
Scheduled date to commence dividend payments:	－
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	None

(Figures are rounded down to the nearest million yen)

1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year change.)
		Net sales		Operating income	Ordinary income	Net income attributable
			to owners of parent
	Nine months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
	December 31, 2023	47,899		5.4	8,104	(2.5)	7,999	2.8	6,050	(1.4)
	December 31, 2022	45,457		35.0	8,316	179.7	7,782	175.0	6,139	303.1

Note: Comprehensive income	For the nine months ended December 31, 2023:	¥6,367 million	[(0.1%)]
		For the nine months ended December 31, 2022:	¥6,371 million	[274.8%]
	Basic earnings	Diluted earnings
		per share	per share
	Nine months ended	Yen	Yen
	December 31, 2023	457.79	－
	December 31, 2022	463.08	－

Note: The Company conducted a 3-for-1 stock split of common stock on October 1, 2023.Net income per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position

		Total assets		Net assets	Equity-to-asset ratio	Net assets per share
	As of	Millions of yen	Millions of yen	%	Yen
	December 31, 2023	87,680		36,048	41.1	2,741.91
	March 31, 2023	81,887		33,007	40.3	2,488.89
Reference: Equity
	As of December 31, 2023:	¥36,048 million
	As of March 31, 2023:	¥33,007 million

Note: The Company conducted a 3-for-1 stock split of shares of common stock on October 1, 2023.Net assets per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal

Total

year-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

－

0.00

－

560.00

560.00

March 31, 2023

Fiscal year ending

－

0.00

－

March 31, 2024

Fiscal year ending

March 31, 2024

170.00

－

(Forecast)

Note:

1. Revisions to the forecast of cash dividends most recently announced: Yes.
2. The Company conducted a 3-for-1 stock split on October 1, 2023, and the year-end dividend per share for the fiscal year ending March 31, 2024 (forecast) takes into account the effect of this stock split. The year-end dividend per share for the fiscal year ending March 31, 2024 (forecast) takes into account the effect of the stock split, and the total annual dividend is shown as "-". The year-end dividend for the fiscal year ending March 31, 2024 (forecast) without the stock split is 510.00 yen, for a total annual dividend of
   510.00 yen.
3. Consolidated financial results forecast for the fiscal year ended March 31, 2024 (from April 1, 2023 to

March 31, 2024)

(Percentages indicate year-on-year change.)

							Net income	Earnings per
	Net sales		Operating income	Ordinary income	attributable to owners
		share
							of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	66,000	8.2	10,500	(3.7)	10,000	(4.9)	7,450	(19.0)	563.65

Note:

1. Revisions to the forecast of cash dividends most recently announced: Yes.
2. The Company conducted a 3-for-1 stock split of shares of common stock on October 1, 2023, and the net income per share for the fiscal year ending March 31, 2024 (forecast) takes such stock split into account. Net income per share without such stock split would be 1,690.95 yen.

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2023

As of March 31, 2023

13,971,900 shares

15,577,857 shares

(ii) Number of treasury shares at the end of the period

As of December 31, 2023

As of March 31, 2023

824,667 shares

2,316,042 shares

(iii) Average number of shares outstanding during the period

Nine months ended December 31, 2023	13,217,417 shares
Nine months ended December 31, 2022	13,258,008 shares

Note: The Company conducted a 3-for-1 stock split of common shares on October 1, 2023.The "number of shares outstanding at the end of the period," "number of shares of treasury stock at the end of the period," and "average number of shares during the period" are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

Explanation of the appropriate use of financial forecasts and other special matters

• The financial forecasts and estimates in this Consolidated Financial Results are based on the information available to the Company at the time of the report's publication and certain assumptions determined to be reasonable by the Company, and therefore are not guarantees of future performance. Consequently, actual results may differ substantially from those described in this Consolidated Financial Results. Please refer to "(3) Explanation of consolidated financial results forecast and other forward-looking statements" on page 5 of the Attachment for the conditions on which earnings forecasts are based and precautions for the use of earnings forecasts.

Table of contents - Attachments
1. Qualitative information regarding consolidated financial results for the nine months ended December 31, 2023	2
(1) Explanation of operation results	2
(2) Explanation of financial position	3
(3) Explanation of consolidated financial results forecast and other forward-looking statements	3
2. Quarterly consolidated financial statements and major notes	4
(1) Quarterly consolidated balance sheet	4
(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income	6
Quarterly consolidated statement of income
First nine-month period	6
Quarterly consolidated statement of comprehensive income
First nine-month period	7
(3) Notes to quarterly consolidated financial statements	8
(Notes on going concern assumption)	8
(Significant changes in shareholders' equity)	8
(Segment information)	8

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1. Qualitative information regarding consolidated financial results for the nine months ended December 31, 2023

1. Explanation of operation results

1. Overall results

During the first nine months of the fiscal year ending March 31, 2024, reflecting a decline in demand for smartphones and personal computers, capital investments, particularly for memory and wafers, slowed in the semiconductor industry, and capital investments remained low overall in the flat panel display (FPD) industry. On the other hand, in the semiconductor industry, demand related to IoT, 5G and AI remained solid. Capital investments for logic/foundries and power devices were firm. In both industries, supplies of parts and components continued to be unstable.

In this business environment, net sales in the first nine months under review in the semiconductor field increased from the same period of the previous year, and net sales in the FPD field decreased. Overall net sales stood at 47,899 million yen (up 5.4% year on year). On the profit front, operating income stood at 8,104 million yen (down 2.5% year on year), mainly reflecting an increase in selling, general and administrative expenses due to strengthened research and development, despite the contribution of increased sales in the semiconductor field. Ordinary income was 7,999 million yen (up 2.8% year on year) due to impact of exchange rates, and net income attributable to owners of parent came to 6,050 million yen (down 1.4% year on year).

In terms of orders, orders received for equipment for advanced packages were firm among back-end process equipment for semiconductors. For front-end process equipment, however, orders received declined from the same period of the previous year, when the level of orders received was high, as some customers mainly for equipment for wafers revised their capital investment plans. Orders in the FPD field were sluggish. As a result, orders received for the first nine months under review decreased to 46,586 million yen (down 20.9% year on year).

1. Results by segment
   Results in major business segments were as follows. (Fine mechatronics)
   Net sales of front-end process equipment for semiconductors increased from the same period of the previous year, reflecting successful sales of equipment for logic/foundries and equipment for wafers. Net sales of front-end process equipment for FPDs were sluggish, declining from the same period of the previous year. For the entire segment, net sales increased to 35,551 million yen (up 13.9% year on year).
   Segment income increased to 7,287 million yen (up 5.3% year on year) chiefly due to an increase in net sales of front-end process equipment for semiconductors.
   Orders received for front-end process equipment for semiconductors were firm, mainly for equipment for logic/foundry and masks. That said, due in part to some customers' revision of their capital investment plans, orders received decreased, mainly for equipment for wafers, compared to the same period of the previous year, when orders were particularly strong. Orders for front-end process equipment for FPDs were sluggish due to the impact of market conditions. For the entire segment, orders received declined from the same period of the previous year to 28,769 million yen (down 35.8% year on year).
   (Mechatronics systems)
   Net sales of back-end process equipment for semiconductors increased year on year due to firm sales of equipment for advanced packages. Net sales of back-end process equipment for FPDs declined significantly year on year, reflecting sluggish orders in the previous fiscal year, particularly in the second half. Net sales of vacuum equipment increased year on year, reflecting steady sales for the semiconductor field. For the entire segment, net sales decreased to 8,849 million yen (down

20.9% year on year).

Segment income came to 1,022 million yen (down 35.6% year on year), reflecting a decrease in net sales of back-end process equipment for FPDs.

Orders received for back-end process equipment for semiconductors were firm and increased year on year due to the significant increase of orders for equipment for advanced packages. Orders for back-end process equipment for FPDs decreased significantly from the same period of the previous year due to the impact of market conditions. Orders for vacuum equipment, particularly in the semiconductor field, were steady. For the entire segment, orders received increased to 13,113 million yen (up 19.7% year on year).(2) Explanation of financial position

Assets, liabilities and net assets

―2―

Total assets at the end of the third quarter under review increased 5,792 million yen from the end of the previous fiscal year, to 87,680 million yen. This was due to increases of 2,765 million yen in notes and accounts receivable - trade and contract assets; 925 million yen in merchandise and finished goods; and 1,519 million yen in work in process.

Total liabilities increased 2,751 million yen from the end of the previous fiscal year, to 51,632 million yen. This was due to increases of 3,293 million yen in notes and accounts payable-trade.

Total net assets at the end of the second quarter under review increased 3,041 million yen from the end of the previous fiscal year, to 36,048 million yen. This was mainly due to an increase of 6,050 million yen that resulted from the posting of net income attributable to owners of parent, which was partially offset by a decrease of 2,477 million yen reflecting dividends paid.

(3) Explanation of consolidated financial results forecast and other forward-looking statements

The full-year consolidated financial results forecast was revised up from the forecast that was announced on November 9, 2023, mainly reflecting progress in business performance in the nine months ended December 31, 2023. Specifically, the forecast amount of net sales was revised up from 65,000 million yen to 66,000 million yen, that of operating income from 10,000 million yen to 10,500 million yen, that of ordinary income from 9,700 million yen to 10,000 million yen, and that of net income attributable to owners of parent from 7,200 million yen to 7,450 million yen, respectively.

In addition, dividend forecast was also revised, reflecting the revisions to the full-year financial results forecast. Please refer to Notice Regarding Revision to Dividend Forecast for Fiscal Year Ending March 31, 2024, which was announced today (February 8).

The forward-looking statements including results forecasts contained in these materials are based on information currently available to the Company at the time of the release of these materials. Actual results may differ from the above forecasts due to a range of factors going forward.

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2. Quarterly consolidated financial statements and major notes

(1) Quarterly consolidated balance sheet

			(Millions of yen)
		As of March 31, 2023	As of December 31, 2023
Assets
Current assets
Cash and deposits	27,175	25,260
Notes and accounts receivable - trade, and contract assets	31,844	34,609
Electronically recorded monetary claims - operating	799	996
Merchandise and finished goods	1,376	2,301
Work in process	4,935	6,455
Raw materials and supplies	200	383
Accounts receivable - other	2,203	2,339
Other	315	771
Allowance for doubtful accounts	(1,440)	(1,235)
Total current assets	67,409	71,882
Non-current assets
Property, plant and equipment
Buildings and structures	28,572	30,066
Accumulated depreciation	(20,489)	(20,821)
Buildings and structures, net	8,082	9,245
Machinery, equipment and vehicles	7,401	9,079
Accumulated depreciation	(5,308)	(6,100)
Machinery, equipment and vehicles, net	2,092	2,978
Tools, furniture and fixtures	1,366	1,585
Accumulated depreciation	(1,117)	(1,215)
Tools, furniture and fixtures, net	248	369
Land	119	119
Leased assets	96	150
Accumulated depreciation	(63)	(79)
Lease assets, net	33	70
Construction in progress	1,086	825
Total property, plant and equipment	11,663	13,610
Intangible assets
Patent right	388	410
Other	216	173
Total intangible assets	604	584
Investments and other assets
Investment securities	0	0
Long-term prepaid expenses	12	24
Deferred tax assets	1,984	1,353
Other	214	225
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	2,211	1,603
Total non-current assets	14,478	15,798
Total assets		81,887	87,680

―4―

			(Millions of yen)
		As of March 31, 2023	As of December 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	11,518	14,811
Electronically recorded obligations - operating	3,897	4,755
Short-term borrowings	3,750	3,750
Current portion of long-term borrowings	‒	2,700
Lease liabilities	16	22
Income taxes payable	1,684	473
Accrued expenses	3,926	3,307
Advances received	8,099	8,513
Provision for bonuses for directors (and other officers)	146	108
Provision for product warranties	108	131
Other	846	1,088
Total current liabilities	33,995	39,662
Non-current liabilities
Long-term borrowings	5,000	2,300
Lease liabilities	20	51
Retirement benefit liability	6,380	6,107
Provision for retirement benefits for directors (and other	28	39
officers)
Provision for repairs	310	325
Asset retirement obligations	67	67
Long-term guarantee deposits	3,078	3,078
Total non-current liabilities	14,885	11,969
Total liabilities	48,880	51,632
Net assets
Shareholders' equity
Share capital	6,761	6,761
Capital surplus	9,037	6,939
Retained earnings	20,944	23,843
Treasury shares	(3,998)	(2,074)
Total shareholders' equity	32,745	35,470
Accumulated other comprehensive income
Foreign currency translation adjustment	535	734
Remeasurements of defined benefit plans	(274)	(156)
Total accumulated other comprehensive income	261	578
Total net assets	33,007	36,048
Total liabilities and net assets		81,887	87,680

―5―

1. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income
   (First nine-month period)

			(Millions of yen)
		Nine months ended	Nine months ended
		December 31, 2022	December 31, 2023
Net sales	45,457	47,899
Cost of sales	27,804	28,752
Gross profit	17,652	19,146
Selling, general and administrative expenses	9,336	11,042
Operating income	8,316	8,104
Non-operating income
Interest income	3	11
Dividend income	0	0
Foreign exchange gains	95	419
Other	45	119
Total non-operating income	144	550
Non-operating expenses
Interest expenses	59	53
Loss on abandonment of non-current assets	47	156
Loss on valuation of derivatives	500	303
Other	70	141
Total non-operating expenses	678	655
Ordinary income	7,782	7,999
Net income before income taxes	7,782	7,999
Income taxes - current	1,482	1,321
Income taxes - deferred	160	627
Total income taxes	1,643	1,948
Net income	6,139	6,050
Net income attributable to owners of parent		6,139	6,050

―6―

Quarterly consolidated statement of comprehensive income (First nine-month period)

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2022	December 31, 2023
Net income	6,139	6,050
Other comprehensive income
Foreign currency translation adjustment	146	198
Remeasurements of defined benefit plans, net of tax	84	118
Total other comprehensive income	231	316
Comprehensive income	6,371	6,367
Comprehensive income attributable to
Comprehensive income attributable to owners of	6,371	6,367
parent

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