Shimadzu : Earnings Report for the three months ended June 30, 2023

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.

August 4, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

(Under Japanese GAAP)

Company name:	SHIMADZU CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	7701
URL:	https://www.shimadzu.co.jp
Representative:	Yasunori Yamamoto, President and Representative Director
Inquiries:	Koumei Arakane, Corporate Officer, General Manager, Finance and Accounting Dept.
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 7, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Net sales			Operating profit	Ordinary profit	Profit attributable to
				owners of parent
Three months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023		109,200		10.7	13,249		40.2	15,656	29.4	11,100	27.8
June 30, 2022		98,639		4.6	9,449		(23.9)	12,100	(4.9)	8,685	(0.5)
Note: Comprehensive income	For the three months ended June 30, 2023:	¥20,965 million	[26.9%]
		For the three months ended June 30, 2022:	¥16,526 million	[60.9%]
	Basic earnings		Diluted earnings
	per share			per share
Three months ended			Yen		Yen
June 30, 2023		37.67			-
June 30, 2022		29.48			-

(2) Consolidated financial position

	Total assets		Net assets
As of	Millions of yen	Millions of yen
June 30, 2023	610,106		434,894
March 31, 2023	618,869		423,499
Reference: Equity
As of June 30, 2023:	¥434,891 million
As of March 31, 2023:	¥423,499 million

Equity-to-asset ratio

%

71.3

68.4

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	-	22.00		-		32.00	54.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending
March 31, 2024		23.00		-		33.00	56.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit
	Millions		%	Millions	%	Millions	%
	of yen		of yen	of yen
Fiscal year ending	500,000		3.7	71,000	4.1	71,000	0.2
March 31, 2024

Profit attributable to	Basic earnings
owners of parent	per share
Millions		%	Yen
of yen
53,000		1.8	179.85

Note: Revisions to the earnings forecast most recently announced: None

* For matters related to the above forecast, please refer to page 5, "Consolidated Outlook."

* 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 shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023	296,070,227 shares
As of March 31, 2023	296,070,227 shares

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

As of June 30, 2023	1,372,203 shares
As of March 31, 2023	1,399,245 shares

(iii) Average number of shares outstanding during the period

Three months ended June 30, 2023	294,677,728 shares
Three months ended June 30, 2022	294,655,463 shares

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
• 1. No changes have been made to the consolidated forecasts for the fiscal year ending March 31, 2024 that were announced on May 10, 2023.
  2. The above forecast was calculated based on information available on the date this report was released. Actual results may vary from forecast values, due to various factors in the future. For matters related to the above forecast, please refer to page 5, "Consolidated Outlook."

	SHIMADZU CORPORATION (7701)
Table of Contents
	Index
1. Qualitative Information on Quarterly Consolidated Financial Statements	2
(1)	Operating Results	2
(2)	Consolidated Outlook	5
2. Quarterly consolidated financial statements and significant notes thereto	6
(1)	Quarterly consolidated balance sheets	6
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
	income	8
(3)	Notes on Consolidated Financial Statements	10
	Notes on Going-Concern Assumptions	10
	Notes on the Event of Significant Fluctuations in Shareholders' Capital	10
	Segment Information	10
3. Supplemental Information	12

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SHIMADZU CORPORATION (7701)

1. Qualitative Information on Quarterly Consolidated Financial Statements

1. Operating Results
   During the three months ended June 30, 2023, uncertainty remained in the global economy due to such factors as increasing economic downside risk hastened by various countries imposing austerity measures and the protracted situation in Russia and Ukraine.
   Given such a business environment, Shimadzu Group's net sales increased due to an increase in sales of the key models of liquid chromatographs, mass spectrometer systems, and gas chromatographs in the Healthcare and Green domains and for the academic field, in addition to a recovery in production resulting from an easing of the impact of parts and materials shortages and a rebound from the impact of COVID-19-induced lockdowns imposed amid the pandemic in China in the previous year. Operating profit increased as a result of higher sales of key models and an improvement in profitability due to the implementation of price revisions, despite being adversely impacted by increased costs due to the implementation of growth investments including those in human resources, R&D, and capital equipment, and high prices for parts and materials.
   During the three months ended June 30, 2023, given the above and the buoying effect of the increasingly weaker yen, on a consolidated basis, Shimadzu posted net sales of 109,200 million yen (a year-on-year increase of 10.7%), operating profit of 13,249 million yen (a year-on-year increase of 40.2%), ordinary profit of 15,656 million yen (a year-on-year increase of 29.4%), and profit attributable to owners of parent of 11,100 million yen (a year-on-year increase of 27.8%).
   The results for reportable business segments were as follows.

I. Analytical & Measuring Instruments

In the Analytical & Measuring Instruments segment, sales increased both in Japan and outside Japan. In Japan, liquid chromatographs increased in the healthcare field, and outside of Japan, liquid chromatographs, mass spectrometer systems, and gas chromatographs increased in the Healthcare and Green domains and the academic field. There was also contribution from Shimadzu Diagnostics Corporation. In addition, there was a recovery in production due to an easing of the impact of parts and materials shortages and a reactionary increase from the impact of lockdowns in China in the previous year.

As a result, the Analytical & Measuring Instruments segment posted net sales of 71,380 million yen (a year-on-year increase of 15.5%), with operating profit of 10,828 million yen (a year-on-year increase of 29.5%) due to increased sales and other factors.

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