Summary of Financial Results

for

FY2014 Ended March 31, 2015

(April 1, 2014 – March 31, 2015)

Japanese economy

is still affected by the tax increase in last April, however,

shows gradual recovery with government’s economic

package including monetary easing.

Global economy

maintains steady recovery.

clearly shows decrease in growth rate and economic slowdown. is still soft with some signs of a recovery.

US

China

EU

1. Business environment

14,360

15,872 16,490

14,546

13,099

16,548 17,086

16,143

18,757

20,113

1,783

2,180 2,457

1,214

869

2,055 1,778

849

1,366

1,889

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 FY2015

Net sales Operating income

（Million yen） （Million yen)

21,000

2,000

Outlook

2. Net sales and operating income

FY2013 (ended Mar. 31, 2014) FY2014 (ended Mar. 31, 2015)

Amount Composition

ratio Amount

Composition

ratio

Comparison

with last year

Net sales 18,757 100.0 20,113 100.0 7.2

Cost of sales 14,788 78.8 15,581 77.5 5.4

Gross profit 3,968 21.2 4,532 22.5 14.2

Selling, general and

administrative expenses 2,602 13.9 2,642 13.1 1.5

Operating income 1,366 7.3 1,889 9.4 38.3

Non-operating income 209 1.1 67 0.3 △67.5

Non-operating expenses 25 0.1 31 0.2 22.4

Ordinary income 1,549 8.3 1,926 9.6 24.3

Extraordinary income 213 1.1 404 2.0 90.0

Extraordinary loss 10 0.1 24 0.1 120.5

Income taxes and others 576 3.1 658 3.3 14.2

Net income 1,175 6.3 1,648 8.2 40.2

(Amount: million yen, comparison: ％)

3. Statement of income (Summary)

Net sales 20,113 million yen +7.2% (year-to-year)

Operating income 1,889 million yen +38.3% (year-to-year)

Operating income margin 9.4% 7.3%

ROE 9.1% 7.4%

• Brisk operating activities focusing around energy-saving and

green-oriented markets

• Thermistor sensors for home appliances & OA equipment and

thermistor elements for automotive are strong

• Improved production efficiency associated with increased sales

at overseas factories

• Group-wide efforts for cost reduction

4. FY2014 sales and profit factors

Assets Liabilities and shareholders’ equity

Mar. 31

2014

Mar. 31

2015 Change

Current liabilities 5,406 6,217 811

Account payable 2,613 2,956 343

Short-term loan

payable 966 1,082 116

Others 1,826 2,178 351

Noncurrent assets 1,620 2,118 498

Long-term loan payable

Others

1,199

421

1,740

377

541

△43

Total liabilities 7,027 8,336 1,309

Net assets 15,971 18,126 2,154

Total liabilities and

net assets 22,998 26,462 3,464

(Million yen)

Mar. 31

2014

Mar. 31

2015 Change

Current assets 15,344 17,757 2,413

Cash and deposits 5,569 6,957 1,388

Account

receivable 5,348 5,603 254

Inventory assets 3,786 4,340 553

Others 640 856 216

Noncurrent assets 7,654 8,704 1,050

Property, plant and

equipment 6,786 7,740 953

Intangible assets 159 139 △19

Investment s and

other assets 708 824 116

Total assets 22,998 26,462 3,464

5. Balance sheet (Summary)

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

18,126

64.4 64.3 61.4 68.2 68.8 68.1

0

10

20

30

40

50

60

70

80

0

10,000

20,000

2010 2011 2012 2013 2014 2015

Total assets

Inventory assets

Shareholders’ equity and equity ratio

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

26,462

0

10,000

20,000

2010 2011 2012 2013 2014 2015

(Million yen)

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

4,340

0

2,000

4,000

2010 2011 2012 2013 2014 2015

(Million yen)

(Million yen)

End of March

End of March

End of March

6. Balance sheet items

Free cash flow

Cash flow used in financing activities

-820 -1,240

-2,506

-1,127 -1,169

1,872

1,455

2,151

2,006 2,042 1,052 215 -354

879 873

-3,000

-2,000

-1,000

0

1,000

2,000

3,000 (Million yen)

-457

588

-753 -314

308

-1,000

-500

0

500

1,000 (Million yen)

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

7. Cash flows

End of March

End of March

848 827 958 995 1,076

1,217

0

500

1,000

1,500

2010 2011 2012 2013 2014 2015 2016

568 851 1,305 2,625 1,409

1,769

0

1,000

2,000

2010 2011 2012 2013 2014 2015 2016

138 117 219 326 331 0

100

200

300

400

2010 2011 2012 2013 2014 2015 2016

Outlook

1,850

1,450

450 445

Capital expenditures

Depreciation

Research and development expenditures

(Million yen)

(Million yen)

(Million yen)

Outlook

Outlook

8. Capital expenditure, depreciation, R&D expenditure

End of March

End of March

End of March

3,379

4,043

4,715

5,200

1,501

1,900

1,805 1,850

2,754

3,312

3,429

3,500

3,466

3,514

3,823

3,850

1,905

2,046

2,193

2,300

862

1,141

1,153 1,200

1,785

2,156

2,204

2,300

515 645

791 800

0

1,000

2,000

3,000

4,000

5,000 F

Y2

01

2

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

FY

20

12

FY

20

13

FY

20

14

FY

20

15

*

素子 住設機器 空調機器 家電 OA 産業機器 自動車 計測器 他

(Million yen)

*FY2015 shows

outlook

Thermistor elements

Household equipment

Air conditioning

Home appliances

OA Industrial equipment

Automotive Others

9. Sales amount by application – 1

1,978

2,449

2,929

383

446

472

258

317

356

510

538

643

0

1,000

2,000

3,000

4,000

2013 2014 2015

Others

OA

Air conditioning

Industrial equipment

Household equipment

Home appliances

Automotives

10. Sales amount by application – 2 Thermistor elements

(Million yen)

End of March

Automotive 25.5%

Other

applications

Sensors

Elements

11. Proportion of automotive sales to total sales

Year-to-year basis

Net sales 21,000 million yen +4.4%

Operating income 2,000 million yen +5.9%

Further enhanced study & development system

Operating activities by a unit of Engineering and Sales Teams

for bigger market share

Continuous efforts for cost reduction on a group-wide basis

12. FY2015 (ending Mar. 31, 2016) business outlook (summary)

H1 FY2015

outlook

H2 FY2015

outlook

FY2015 full year

outlook

Net sales 10,300 10,700 21,000

(0.6) (8.3) (4.4)

Operating income 900 1,100 2,000

(△19.0) (41.3) (5.9)

Ordinary income 900 1,100 2,000

(△20. 5) (38.3) (3.8)

Net income 620 760 1,380

(△39.7) (20.8) (△16.3)

13. FY2015 (ending March, 2016) business outlook

(Amount: million yen, comparison: ％)

( ): Year-to-year comparison

Business Deployment

14. Business deployment | Strategic pillars

Aggressive business activities to gain market share

Accelerated expansion in overseas businesses

Focusing on “environment”, “energy-saving” and

“safety”

Enhanced engineering & development capabilities

15. Business deployment: Aggressive business activities 1/3

Aggressive business activities to gain larger share

Sept 2012 Sannohe Shibaura: building no. 3 completed

Shanghai Shibaura: moved to larger space

Apr 2014 Ichinohe Shibaura: merged into Iwate Shibaura

Dec 2013 Fukushima Shibaura: Matsukawa Factory completed

Apr 2015 Thai Shibaura: building no. 5 completed

The new building no. 5 completed

in April, 2015.

Thai Shibaura Denshi Co., Ltd.

16. Business deployment: Aggressive business activities 2/3

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

20,113

0

5,000

10,000

15,000

20,000

25,000

0

50

100

150

200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

100 = production volume in FY2001

Sales

End of March

Sales

(Million yen)

Production volume (index) PSB thermistor elements : average monthly production

17. Business deployment: Aggressive business activities 3/3

Accelerated expansion of overseas businesses

Germany: Shibaura Electronics Europe GmbH was established

in 2012

Enhanced sales network

18. Business deployment | Overseas businesses

Focusing on “environment”, “energy-saving” and “safety”

World trends

Environment, energy-saving,

high functionality, safety

Expanding

applications

Larger share in growing

fields

Thermistor

elements high quality

large

supply Wide temperature range

Housing

equipment Environment

Energy-

saving Safety

Home

appliances Environment

Energy-

saving

All

electrification

High-

functionality

Emerging

countries

OA Colorization High-functionality

(Non-contact)

Industrial

equipment Environment

Energy-

saving

Facility

investment

Automotive Environment Energy-

saving Hybrid EV

19. Business deployment | Focus

Enhanced engineering & development capabilities

Thermistor elements

Thermistor sensors

Element technology

Analytical abilities

Enhanced subsidiaries

Strengthened human resources

20. Business deployment | Engineering & development

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

28

-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>

28