Results for the first half of FY2014

ended September 30, 2014

Domestic economy

has remaining influence of consumption tax increase,

however, it is making a gradual recovery.

Overseas economies

remains strong with growth mainly in consumer spending.

has a slowdown in recovery, facing political instability caused by the Ukraine problem. is still in slower growth.

USA

Europe

China

1. Business environment

14,360

15,872 16,490

14,546

13,099

16,548 17,086

16,143

18,757

10,234

1,783

2,180 2,457

1,214

869

2,055 1,778

849

1,366

0

1,000

2,000

3,000

4,000

5,000

0

5,000

10,000

15,000

20,000

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Net sales Operating income

1,850

2. Net sales and operating income

Outlook

(Million yen) (Million yen)

1H FY2013 ended Sept. 30, 2013

1H FY2014 ended Sept. 30, 2014

Amount Composition

ratio Amount

Composition

ratio

Comparison

with last year

Net sales 9,147 100.0 10,234 100.0 11.9

Cost of sales 7,337 80.2 7,784 76.1 6.1

Gross profit 1,809 19.8 2,450 23.9 35.4

Selling, general and

administrative expenses 1,307 14.3 1,339 13.1 2.5

Operating income 502 5.5 1,111 10.9 121.3

Non-operating income 141 1.6 38 0.4 △72.8

Non-operating expenses 13 0.1 18 0.2 36.4

Ordinary income 630 6.9 1,131 11.1 79.4

Extraordinary income 55 0.6 372 3.6 576.3

Extraordinary loss 7 0.1 17 0.2 142.3

Income taxes and others 239 2.6 458 4.5 91.6

Net income in the first half 439 4.8 1,028 10.0 134.0

3. Statement of income (Summary)

(Amount: million yen, comparison: ％)

Net sales 10,234 mil. yen (Year-over-year basis: 11.9%)

Operating income 1,111 mil. yen (Year-over-year basis: 121.3%)

Operating income margin 10.9 % (Year-over-year basis: 5.5%)

• Increased demands from both domestic and overseas customers.

• Thermistor elements for small appliances, air conditioners, automotives increased significantly on a year-over-year basis.

• Improved production efficiency in the overseas factories along with increased sales.

• Cost-reduction efforts by the Group as a whole.

4. Statement of income

5. Balance sheet (Summary)

Assets Liabilities and shareholders’ equity

Mar. 31 2014

Sept. 30 2014

Change

Current liabilities 5,406 6,700 1,293

Account payable 2,613 3,283 670

Short-term loan payable

966 1,033 66

Others 1,826 2,383 556

Noncurrent assets 1,620 1,711 91

Long-term loan payable

1,199 1,313 113

Others 421 398 △22

Total liabilities 7,027 8,412 1,358

Net assets 15,971 16,512 540

Total liabilities and net assets

22,998 24,924 1,926

(Million yen)

Mar. 31 2014

Sept. 30 2014

Change

Current assets 15,344 17,275 1,930

Cash and deposits 5,569 6,718 1,148

Account receivable 5,348 5,626 278

Inventory assets 3,786 4,238 452

Others 640 691 50

Noncurrent assets 7,654 7,649 △4

Property, plant and equipment

6,786 6,767 △18

Intangible assets 159 127 △31

Other assets 708 753 45

Total assets 22,998 24,924 1,926

11,589 12,493 13,441 14,334 15,971

16,512

64.4 64.3 61.4 68.2 68.8 65.7

0

10

20

30

40

50

60

70

80

0

10,000

20,000

End of March, 2010 End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of September, 2014

6. Balance sheet items

Total assets

Inventory assets

Shareholders’ equity and equity ratio

17,702 19,258 21,688 20,828 22,998

24,924

0

10,000

20,000

End of March, 2010 End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of September, 2014

(Million yen)

2,899 3,353 3,672 3,878 3,786 4,238

0

2,000

4,000

End of March, 2010 End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of September, 2014

(Million yen)

(Million yen)

7. Cash flows

Free cash flow

Cash flow used in financing activities

-1,322 -1,183

-866

-261

242

1,503

648 822

1,184 1,087

181

-535

-44

923

1,329

-1,500

-1,000

-500

0

500

1,000

1,500

-372 -380 -120 -193 -131

-1,000

-500

0

500

1,000

1H FY2012 2H FY2012 1H FY2013

2H FY2013 1H FY2014

(Million yen)

(Million yen)

1H FY2012 2H FY2012 1H FY2013

2H FY2013 1H FY2014

848 827 958 995 1,076 535 0

500

1,000

1,500

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

8. Capital expenditure, depreciation, R&D expenditure

Capital expenditure

Depreciation

Research and development expenditure

568 851 1,305 2,625 1,409 433 0

1,000

2,000

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

138 117 219 326 331 194 0

100

200

300

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Outlook

1,800

1,250

300

2Q FY2014

(Million yen)

(Million yen)

(Million yen)

Outlook

Outlook

9. Sales amount by application - 1 Results for the first half

1,738

1,993

2,270

673

879

891 1,537

1,789

1,907

1,881

1,740

2,051

1,012 964

1,069

441 493

538 822

1,022

1,104

261 263

402

0

1,000

2,000

3,000

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

Thermistor element

Household equipment

Air conditioning

Home appliance

OA Industrial equipment

Automotive Measuring & others

(Million yen)

1,031 1,188

1,411

187

243

221

120

152

175

270

261

293

0

1,000

2,000

1H FY2012 1H FY2013 1H FY2014

Others

OA

Air conditioning

Industrial equipment

Household equipment

Home appliance

Automobile

10. Sales amount by application - 2 Thermistor element

(Million yen)

Automotive

24.5%

Other applications

Sensor

Thermistor element

11. Proportion of automotive sales to total sales

12. Sales amount by application - 3 Results and outlook for full year

2,270

891

1,907 2,051

1,069

538

1,104

402

0

1000

2000

3000

4000

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

FY2

01

2

FY2

01

3

FY2

01

4

素子 住設機器 空調機器 家電 OA 産業機器 自動車 計測器 他

3,379

4,043

1,501

1,900

2,754

3,312 3,466 3,514

1,905

2,046

862

1,141

1,758

2,156

515 645

4,400

2,050

3,600 3,700

2,150

1,250

500

2,350

(Million yen)

Thermistor element

Household equipment

Air conditioning

Home appliance

OA Industrial equipment

Automotive Measuring & others

13. FY2014 business outlook

H1 FY2014 results

H2 FY2014 outlook

FY2014 full year outlook

Net sales 10,234 9,766 20,000

(11.9) (1.6) (6.6)

Operating income 1,111 739 1,850 (121.3) (△14.5) (35.4)

Ordinary income 1,131 739 1,870

(79.4) (△19.6) (20.7)

Net income 1,028 512 1,540 (134.0) (△30.4) (31.0)

(Amount: million yen, comparison: ％)

※( ): Year-to-year comparison

Topics

14. Matsukawa Factory (2nd factory in Fukushima)

Started its full-scale operations in July, 2014.

15. PSB thermistor elements : average monthly production

100 103 109

127 140

156

171

150

136

174 172 165

176

200

10,169 10,334 10,925

12,850 14,360

15,872 16,491

14,547 13,100

16,549 17,086 16,144

18,757

0

5,000

10,000

15,000

20,000

25,000

0

50

100

150

200

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 H1 FY2014

2002年3月期の生産量を100とした場合の … 売上高

Sales (Million yen)

100 = production volume in FY2001 Sales

Production volume (index)

Bldg. 5

Land purchased

16. Thai Shibaura Denshi

The building No. 5 will be completed in the spring of 2015.

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.

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-sealed 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, USA, England, 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 appliance

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