Consolidated Financial Results（Q1 of The Year Ending March 31, 2025）

Aug 7, 2024 at 10:00 PM UTC · Issued by Shibaura Mechatronics Corp.

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 Three Months Ended June 30, 2024
	(Under Japanese GAAP)
		August 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) Shinji Imai, (Title) Vice President,
	Executive General Manager of Corporate Management Division
Telephone:	+81- 45- 897- 2425
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 three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

(1) Consolidated operating results				(Percentages indicate year-on-year change.)
	Net sales		Operating income	Ordinary income	Net income attributable
		to owners of parent

Three months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2024	17,129		20.2	3,069	44.2	3,135	41.9	2,288	27.5
June 30, 2023	14,254		3.1	2,129	0.4	2,209	15.5	1,794	7.1

Note: Comprehensive income	For the three months ended June 30, 2024:	¥2,431 million	[31.8%]
	For the three months ended June 30, 2023:	¥1,843 million	[3.8%]

Basic earnings	Diluted earnings
	per share	per share
Three months ended	Yen	Yen
June 30, 2024	174.66	－
June 30, 2023	135.34	－

Note: The Company conducted a 3-for-1 stock split of common stock on October 1, 2023. Basic earnings 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
June 30, 2024	84,381	38,536	45.7	2,940.72
March 31, 2024	91,254	38,735	42.4	2,955.88
Reference: Equity
As of June 30, 2024:	¥38,536 million
As of March 31, 2024:	¥38,735 million

Note: The Company conducted a 3-for-1 stock split 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

Fiscal year ended

－

0.00

－

200.00

－

March 31, 2024

Fiscal year ending

－

March 31, 2025

Fiscal year ending

March 31, 2025

0.00

－

235.00

(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. The year-end dividend per share for the fiscal year ended March 31, 2024 takes into account the effect of the stock split, and the total annual dividend is shown as "-".

3. Consolidated Financial Results Forecast for the Fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

						(Percentages indicate year-on-year change.)
							Net income		Basic Earnings
	Net sales		Operating income	Ordinary income	attributable to owners
							of parent		per share

	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	73,000	8.1	11,800	1.0	11,700	0.8	8,800	0.1	671.53

Note: Revisions to the forecast of cash dividends most recently announced: Yes

Notes

Significant changes in the scope of consolidation during the period: None
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

(Note) For details, please refer to "Quarterly Consolidated Financial Statements and Key Notes,

1. Notes to Quarterly Consolidated Financial Statements (Notes to changes in accounting policies)" on page 8.
Number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2024

As of March 31, 2024

13,971,900 shares

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

As of June 30, 2024

As of March 31, 2024

867,413 shares

867,367 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2024

Three months ended June 30, 2023

13,104,522 shares

13,261,815 shares

Review of attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
Proper use of earnings forecasts, and other special matters

The financial forecasts and estimates in this summary of 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 Summary of Consolidated Financial Results.

Table of contents - Attachments
1. Overview of Results of Operations, Etc	2
(1) Overview of Results of Operations	2
(2) Overview of Financial Position	3
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Key Notes	4
(1) Quarterly Consolidated Balance Sheets	4
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income	6
Quarterly consolidated statements of income
First three-month period	6
Quarterly consolidated statements of comprehensive income
First three-month period	7
(3) Notes to Quarterly Consolidated Financial Statements	8
(Notes to going concern assumption)	8
(Significant changes in shareholders' equity)	8
(Notes to changes in accounting policies)	8
(Notes to quarterly consolidated balance sheets)	8
(Notes to quarterly consolidated statements of cash flows)	8
(Notes to segment information)	9
(Notes to revenue recognition)	10

―1―

1. Overview of Results of Operations, Etc.

Overview of Results of Operations

Overall results

During the first three months of the fiscal year ending March 31, 2025, in the semiconductor industry, capital investment in equipment for logic/foundry and memory remained firm reflecting solid demand related to IoT, 5G and AI, while demand for smartphones and personal computers remained sluggish. In the flat panel display (FPD) industry, capital investment remained sluggish overall. In the vending machine industry, the introduction of Japanese new banknotes led to growth in demand for the replacement of machines with models that are compatible with the new bills.

In this business environment, net sales in the first three months under review in the semiconductor field increased year on year, net sales in the FPD field remained flat year on year, and overall net sales increased to 17,129 million yen (up 20.2% year on year), partly reflecting contribution of the increase in sales in the vending machine field. In terms of income, operating income was 3,069 million yen (up 44.2% year on year) and ordinary income was 3,135 million yen (up 41.9% year on year), while net income attributable to owners of parent was 2,288 million yen (up 27.5% year on year), reflecting increased sales in the semiconductor and vending machine fields.

In terms of orders, orders received in the semiconductor field increased year on year as equipment for logic/foundry among front-end process equipment for semiconductors and equipment for advanced packages among back-end process equipment for semiconductors, including equipment for GPUs for generative AI, showed strong progress. Meanwhile, orders received in the FPD field remained sluggish, resulting in a slight year-on-year increase. An increase in orders received in the vending machine field also contributed. As a result, orders received for the first three months under review increased to 21,349 million yen (up 20.5% year on year).

Results by segment (Fine mechatronics)
Net sales of front-end process equipment for semiconductors decreased year on year, although sales of equipment for logic/foundry remained steady. The principal factor for the decrease was sluggish sales of equipment for silicon wafers, which were affected by the decrease in orders in the previous fiscal year. Net sales of front-end process equipment for FPDs were sluggish and on par with the year-ago level. For the entire segment, net sales decreased to 10,600 million yen (down 5.1% year on year).
Segment income decreased to 1,886 million yen (down 12.1% year on year) chiefly due to a decrease in net sales of front- end process equipment for semiconductors.
Orders received for equipment for logic/foundry among front-end process equipment for semiconductors showed strong progress. Orders for front-end process equipment for FPDs were sluggish due to the impact of market conditions. For the entire segment, orders received increased to 13,935 million yen (up 20.9% year on year).
(Mechatronics systems)
Net sales of back-end process equipment for semiconductors improved significantly year on year, reflecting strong sales of equipment for advanced packages due to an increase in demand for GPUs for generative AI. Net sales of back-end process equipment for FPDs were sluggish and were on par with the year-ago level. Net sales of vacuum equipment increased year on year, reflecting firm sales for the semiconductor field. For the entire segment, net sales increased to 4,494 million yen (up 118.6% year on year).
Segment income increased significantly, to 831 million yen (as compared to segment income of 39 million yen in the same period of the previous fiscal year), due to an increase in sales of back-end process equipment for semiconductors and vacuum equipment.
Looking at back-end process equipment for semiconductors, orders received for equipment for advanced packages were strong, reflecting an increase in demand for GPUs for generative AI. Orders received for back-end process equipment for FPDs and vacuum equipment were sluggish due to the impact of market conditions. For the entire segment, orders received increased from the same period of the previous year to 5,307 million yen (up 5.1% year on year).

―2―

(Vending machines and systems)

Growth in demand for renewal of machines into ones that are compatible with the new Japanese banknotes has resulted in strong sales of ticket-vending machines and multi-purpose vending machines in addition to renewal of banknote identifiers. As a result, net sales increased to 1,582 million yen (up 179.6% year on year) and segment income came to 459 million yen (as compared to segment income of 33 million yen in the same period of the previous fiscal year).

(Real estate leasing)

Real estate leasing revenue made progress as forecast, resulting in net sales of 451 million yen (down 2.6% year on year) and segment income of 99 million yen (down 1.2% year on year).

Overview of Financial Position Assets, liabilities and net assets
Assets at the end of the first quarter under review amounted to 84,381 million yen, down 6,872 million yen from the end of the previous consolidated fiscal year. This was mainly due to decreases of 965 million yen in cash and deposits, 4,749 million yen in notes and accounts receivable - trade, and contract assets, and 1,729 million yen in accounts receivable - other.
Total liabilities decreased 6,674 million yen from the end of the previous fiscal year, to 45,844 million yen. This was mainly due to decreases of 2,242 million yen in notes and accounts payable - trade, 1,088 million yen in electronically recorded obligations - operating, 1,163 million yen in income taxes payable, and 958 million yen in advances received.
Total net assets at the end of the first quarter under review decreased 198 million yen from the end of the previous fiscal year, to 38,536 million yen.
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 May 9, 2024, mainly reflecting progress in business performance in the first three months under review and the current trend of investment by customers. Specifically, the forecast amount of net sales was revised up from 70,000 million yen to 73,000 million yen, that of operating income from 10,000 million yen to 11,800 million yen, that of ordinary income from 9,600 million yen to 11,700 million yen, and that of net income attributable to owners of parent from 7,200 million yen to 8,800 million yen, respectively. Reflecting the revisions to the full-year consolidated financial results forecast, dividend forecast was also revised from 193.00 yen to 235.00 yen. Please refer to "Notice Regarding Revisions to Consolidated Financial Results Forecast and Dividend Forecast for Fiscal Year Ending March 31, 2025" released today (August 8, 2024) in conjunction with this information.

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.

―3―

2. Quarterly Consolidated Financial Statements and Key Notes

(1) Quarterly Consolidated Balance Sheets

			(Millions of yen)
		As of March 31, 2024	As of June 30, 2024
Assets
Current assets
Cash and deposits	27,214	26,248
Notes and accounts receivable - trade, and contract assets	35,417	30,667
Electronically recorded monetary claims - operating	877	1,068
Merchandise and finished goods	2,321	2,251
Work in process	5,764	6,256
Raw materials and supplies	514	668
Accounts receivable - other	2,764	1,035
Other	427	457
Allowance for doubtful accounts	(1,259)	(1,076)
Total current assets	74,041	67,576
Non-current assets
Property, plant and equipment
Buildings and structures	30,890	30,824
Accumulated depreciation	(21,031)	(21,022)
Buildings and structures, net	9,858	9,801
Machinery, equipment and vehicles	8,705	9,139
Accumulated depreciation	(6,139)	(6,503)
Machinery, equipment and vehicles, net	2,566	2,636
Tools, furniture and fixtures	1,630	1,702
Accumulated depreciation	(1,245)	(1,270)
Tools, furniture and fixtures, net	384	432
Land	119	119
Leased assets	201	205
Accumulated depreciation	(94)	(103)
Lease assets, net	106	101
Construction in progress	1,224	1,255
Total property, plant and equipment	14,261	14,348
Intangible assets
Patent right	418	435
Other	189	187
Total intangible assets	607	623
Investments and other assets
Investment securities	0	0
Long-term prepaid expenses	32	54
Deferred tax assets	2,076	1,549
Other	234	230
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	2,343	1,833
Total non-current assets	17,212	16,804
Total assets		91,254	84,381

―4―

			(Millions of yen)
		As of March 31, 2024	As of June 30, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	13,473	11,231
Electronically recorded obligations - operating	4,319	3,231
Short-term borrowings	3,650	3,650
Current portion of long-term borrowings	3,400	3,400
Lease liabilities	31	30
Income taxes payable	1,720	556
Accrued expenses	4,808	3,917
Advances received	8,358	7,400
Provision for bonuses for directors (and other officers)	168	68
Provision for product warranties	159	170
Other	1,521	1,383
Total current liabilities	41,611	35,038
Non-current liabilities
Long-term borrowings	1,600	1,600
Lease liabilities	80	75
Retirement benefit liability	5,710	5,615
Provision for retirement benefits for directors (and other	40	33
officers)

Provision for repairs	329	335
Asset retirement obligations	67	67
Long-term guarantee deposits	3,078	3,078
Total non-current liabilities	10,907	10,805
Total liabilities	52,518	45,844
Net assets
Shareholders' equity
Share capital	6,761	6,761
Capital surplus	6,939	6,939
Retained earnings	26,586	26,245
Treasury shares	(2,354)	(2,354)
Total shareholders' equity	37,933	37,591
Accumulated other comprehensive income
Foreign currency translation adjustment	671	796
Remeasurements of defined benefit plans	130	148
Total accumulated other comprehensive income	802	944
Total net assets	38,735	38,536
Total liabilities and net assets		91,254	84,381

―5―

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

Quarterly consolidated statements of income (First three-month period)

			(Millions of yen)
		Three months ended June 30, 2023	Three months ended June 30, 2024
Net sales	14,254	17,129
Cost of sales	8,627	10,346
Gross profit	5,627	6,783
Selling, general and administrative expenses	3,498	3,713
Operating income	2,129	3,069
Non-operating income
Interest income	0	16
Dividend income	0	0
Foreign exchange gains	427	64
Other	17	42
Total non-operating income	445	122
Non-operating expenses
Interest expenses	17	19
Loss on valuation of derivatives	266	1
Other	80	35
Total non-operating expenses	365	56
Ordinary income	2,209	3,135
Net income before income taxes	2,209	3,135
Income taxes - current	38	315
Income taxes - deferred	375	531
Total income taxes	414	846
Net income	1,794	2,288
Net income attributable to owners of parent		1,794	2,288

―6―

Quarterly consolidated statements of comprehensive income (First three-month period)

		(Millions of yen)
	Three months ended June 30, 2023	Three months ended June 30, 2024
Net income	1,794	2,288
Other comprehensive income
Foreign currency translation adjustment	9	124
Remeasurements of defined benefit plans, net of tax	39	18
Total other comprehensive income	49	142
Comprehensive income	1,843	2,431
Comprehensive income attributable to owners of	1,843	2,431
parent

―7―

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