Results for the first half of FY2015ended September 30, 2015

1. Business environment

maintains steady with stable personal consumptionUS

EU

China

shows gradual recovery mainly in the Eurozone

more clearly shows a downward tendency

Global economy

Japanese economyshows a trend toward improvement with the profits by the weak yen and economic policy, however, a sign of stagnation affected by economic slowdown in China and emerging countries

China more clearly shows a downward tendency

14,360 15,872

16,490

14,546

13,099

16,548 17,086

16,143

18,757 20,113

10,565 2,457

3,000

4,000

5,000

15,000

20,000 Net sales Operating income

(Million yen) (Million yen)21,000

2. Net sales and operating income

10,565

1,783

2,180 2,457

1,214

869

2,055 1,778

849

1,366

1,889

0

1,000

2,000

0

5,000

10,000

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015(Outlook)

2,000

3. Statement of income (Summary)

1H FY2014ended Sept. 30, 2014

1H FY2015ended Sept. 30, 201

Amount Composition ratio Amount Composition

ratioComparison

with last year

Net sales 10,234 100.0 10,565 100.0 3.2

Cost of sales 7,784 76.1 8,333 78.9 7.1

Gross profit 2,450 23.9 2,231 21.1 △8.9Selling, general and administrative expenses 1,339 13.1 1,413 13.4 5.6

(Amount: million yen, comparison: %)

administrative expenses

Operating income 1,111 10.9 817 7.7 △26.4

Non-operating income 38 0.4 40 0.4 5.9

Non-operating expenses 18 0.2 9 0.1 △48.4

Ordinary income 1,131 11.1 849 8.0 △25.0

Extraordinary income 372 3.6 112 1.1 △69.7

Extraordinary loss 17 0.2 114 1.1 553.1

Income taxes and others 458 4.5 253 2.4 △44.7

Net income 1,028 10.0 594 5.6 △42.2

4. Sales and profit factors

Net sales 10,565 million yen 3.2% (year-to-year)

Operating income 817 million yen △26.4% (year-to-year)

Operating income margin 7.7% 10.9%

• Thermistor elements for automobiles keep strong sales. Thermistor Thermistor elements for automobiles keep strong sales. Thermistor sensors for air conditioning and industrial equipment increased.• Sensors for small home appliances decreased.

• Personnel expenses in overseas factories increased.

• Depreciation associated with capital expenditures increased.

Mar. 31, 2015

Sept. 30,2015 Change

Current liabilities 6,217 5,953 △264

Account payable 2,956 3,086 129

Short-term loan payable 1,082 1,048 △33

Others 2,178 1,818 △360

Mar. 31, 2015

Sept. 30,2015 Change

Current assets 17,757 17,534 △222

Cash and deposits 6,957 6,250 △707

Account receivable 5,603 5,877 274

Inventory assets 4,340 4,725 385

5. Balance sheet (Summary)

Assets Liabilities and shareholders’ equity (Million yen)

Noncurrent assets 2,118 1,927 △191

Long-term loanpayable 1,740 1,547 △193

Others 377 379 1

Total liabilities 8,336 7,881 △455

Net assets 18,126 18,289 163

Total liabilities and net assets 26,462 26,170 △292

Others 856 681 △175

Noncurrent assets 8,704 8,635 △69

Property, plant andequipment 7,740 7,745 4

Intangible assets 139 163 23

Other assets 824 726 △98

Total assets 26,462 26,170 △292

19,258 21,688 20,828 22,998 26,462

26,170

0

10,000

20,000

End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of March, 2015 End of September, 2015

4,000

6. Balance sheet items

Total assets

Inventory assets

(Million yen)

(Million yen)

12,493 13,441 14,334 15,971 18,126

18,289

64.3 61.4 68.2 68.8 68.1 69.5

0

10

20

30

40

50

60

70

80

0

10,000

20,000

End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of March, 2015 End of September, 2015

3,353 3,672 3,878 3,786 4,340 4,725

0

2,000

End of March, 2011 End of March, 2012 End of March, 2013 End of March, 2014 End of March, 2015 End of September, 2015

Shareholders’ equity and equity ratio(Million yen)

-866

-261 242

1,411 -1,047

822 1,184

1,087 955 967

-44

923

1,329

-456 -80

-500

500

1,500

7. Cash flowsFree cash flow(Million yen)

-1,500

-120 -193 -131

439

-638 -700

-350

0

350

700

1H FY2013 2H FY 2013 1H FY2014 2H FY2014 1H FY2015

1H FY2013 2H FY2013 1H FY2014 2H FY2014 1H FY2015

Cash flow used in financing activities(Million yen)

1,000

1,500

568 851 1,305 2,625 1,409 1,769 1,060 0

1,000

2,000

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015Outlook

1,850

1,450

8. Capital expenditure, depreciation, R&D expenditure

Capital expenditure

Depreciation

(Million yen)

(Million yen)

848 827 958 995 1,076 1,217 656 0

500

1,000

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

138 117 219 326 331 445 238 0

100 200 300 400

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Outlook

Outlook

450

1H FY2015

Research and development expenditure(Million yen)

1,993

2,270

2,757

1,789

1,907

2,065

1,740

2,051

1,726

1 099

2,000

3,000

9. Sales amount by application | Results for the first half

(Million yen)

879

891

896

1,740

964

1,069

1,099

493 538

606 1,022 1,104

1,074

263 402

343

0

1,000

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

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OAThermistorelement

Householdequipment

Airconditioning

Home appliances

Industrial equipment

Automobiles Others

296

175

1552,000

3,000OthersOAAir conditioningIndustrial equipmentHousehold equipmentHome appliancesAutomobiles

10. Sales amount by application | Thermistor element(Million yen)

1,1881,411

1,778

243

221152

0

1,000

FY2013 FY2014 FY2015

Automotive27%

Sensor

Thermistorelement

11. Proportion of automotive sales to total sales

element

Other applications

2,757

4,043

4,715

3,312 3,429 3,514

3,823

3000

4000

5000

5,200

3,5003,850

2,300 2,300

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

(Million yen)

896

2,065 1,726

1,099

606

1,074

343

1,900 1,805

2,046 2,193

1,141 1,153

2,156 2,204

645 791

0

1000

2000

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

15

FY20

13

FY20

14

FY20

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

1,850

2,300

1,200800

OAThermistorelement

Householdequipment

Airconditioning

Home appliances

Industrial equipment

Automobiles Measuring& others

1H FY2015results

2H FY2015outlook

FY2015 full year outlook

Net sales10,565 10,435 21,000

(3.2) (5.6) (4.4)

817 1,183 2,000

13. FY2015 business outlook(Amount: million yen, comparison: ％)

Operating income817 1,183 2,000

(△26.4) (52.1) (5.9)

Ordinary income849 1,151 2,000

(△25.0) (44.8) (3.8)

Net income594 786 1,380

(△42.2) (26.8) (△16.3)( ): Year‐to‐year comparison

Topics

16. Local corporation established in the U.S.

Name Shibaura Electronics of America Corporation（SEA）Location Detroit, Michigan, U.S.

Operation Started from October 1st, 2015

Thank you for your attention

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.

Thermistor<Reference>

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.

PSB thermistor elementShibaura 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.)

HouseholdSolar system Shower toilet Water heater Highly efficient hot

water supply system

1- 3 2 - 3 2 - 5 10 - 20

A/CFan heater Room A/C Industrial A/C

2 - 3 2 - 5 5 - 15

Homeappliance

Microwave oven Rice cooker Refrigerator IH cooker

2 - 3 2 - 3 2 - 8 5 - 15

Number of thermistors installed in a product<Reference>

appliance 2 - 3 2 - 3 2 - 8 5 - 15

OAPrinter Copy machine Multi-functional

copier

2 - 3 2 - 3 3 - 5

IndustrialFire alarm Machine, robot Freezing showcase Freezing container

2 1 - 2 2 - 5 5 - 10

AutomotiveCar A/C Intake air, exhaust gas, water, fuel, oil Hybrid system

4 - 5 8 - 10 8 - 10

Glass coated thermistors Glass coated thermistors for(Existing products) high temperatures

-50℃ 1,000℃Shibaura’s thermistors cover from -50℃ to 1,000℃

Applications for various temperature ranges

0℃ 50℃ 100℃ 300℃ 500℃

(Tuna) stock freezer Hot-water supply IH cooker Automotive(EGR)

<Reference>

22

Applications

(Tuna) stock freezerRefrigerator

Air conditioner

EcoCute(CO2 heat pomp)

Dishwasher& dryer)

Automotive(Water)

Rice cooker

Microwave oven

Automotive(HV & EV motors)

Copy machine

Fan heater

(EGR)

Oven

Household(Gas flame)

Automotive(DPF)

22