Mabuchi Motor
The motor the world turns to.

20 Annual ReportMOTORS NOs. FF-N20PN, RFM50WC, RF-N60CA
Motorizing the camerathat will take the picturesthat last a lifetime.

Mabuchi Motor
The motor the world turns to.
Contents
01

Financial Highlights

02

Letter from the President

03

About Mabuchi Motor

06

Financial Review

09

Five-Year Financial Summary

10

Consolidated Balance Sheets

12

Consolidated Statements of Income

13

Consolidated Statements ofShareholders’ Equity

14

Consolidated Statements of Cash Flows

15

Notes to Consolidated Financial
Statements

23

Independent Auditors’ Repor t

24

Corporate Information
Board of Directors
Corporate Directory
Investor Information

N E T S A L E S (¥ in millions)2001

105,129

2000

116,233

1999

117,545

1998

20
01

FINANCIAL HIGHLIGHTS
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31(thousands)

2000

2001

2001

¥ 117,545¥ 116,233¥ 105,129$ 796,432

Operating income

28,481

28,62422,079167,265

Income before income taxes

28,49833,64423,495

177,992

Net income

18,793

23,472

16,281

123,341

Shareholders’ equity

204,403

218,472

241,860

1,832,273

Total assets

218,083

242,626

260,329

1,972,189

124,652
121,835

N E T I N C O M E (¥ in millions)

2001

U.S. Dollars

1999
Net sales
1997

Yen(millions)

16,281

Net income
2000

23,472

1999

18,793Yen

Per share of common stock:

Cash dividends

NOTES:

U.S. Dollars¥ 399.20¥ 498.61¥ 345.85

70.00

75.00

67.00

$

2.62
0.51

1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of¥ 132=U.S. $1, the approximate exchange rate on December 31, 2001.

1998

1997

17,016

2. Net income per share figures are based on the weighted average number of shares of common stock outstanding during each fiscal year.

16,664345.85

MOTOR NO. FF-H30WA
Motorizing the telephonethat allows friends to2000

498.61

1999

399.201998

362.001997

354.69stay in touch.

01
MABUCHI MOTOR CO., LTD.

2001

THE MOTOR THE WORLD TURNS TO.

NET INCOME PER SHARE (¥)

20
01

LETTER FROM THE PRESIDENT

Dear Shareholder,
While we at Mabuchi Motor are not immune to an ailing

On December 6, 2001 Mabuchi Motor was awarded theeconomy, our unchallenged leadership position in the indus-

Porter Prize by Harvard University Professor Michael E. Porter

try, our established and diversified international customer

for excellence in continued profitability, unique value propo-

base, and our solid foundation as a company with a purpose

sition, and consistency of strategy and innovation. Naturally,in today's global society all provide us some protection in

we are proud to receive such an accolade from a distinguishedeven the most difficult times. Indeed, we have fared betterbusiness scholar affiliated with one of the world's most pres-than most in the past couple of years. A sluggish general

tigious institutions. But more importantly, this affirmation

economy has neither shaken our resolve nor tarnished ourvalidates the confidence in us shown by our shareholders andoutlook. Our prospects remain very strong for the years ahead

demonstrates - with greater objectivity than I can fairly claim

and we anticipate continued growth over the long term. Such- that our powers of innovation and our potential for growth

optimism is based not only on a history of outstanding per-remain firmly intact. Needless to say, we require no suchformance, but also on a deeply rooted commitment to con-recognition to fuel our abiding commitment to continued

tinually advancing product development, manufacturing

advancement and a growing contribution to the global mar-capability, and management practices.

ketplace and the society it serves.

THE MOTOR THE WORLD TURNS TO.

“...Mabuchi Motor was awarded the Porter Prize by Harvard University Professor
Michael E. Porter for excellence in continued profitability, unique value proposition,and consistency of strategy and innovation”.

MABUCHI MOTOR CO., LTD.

02

Although the world economy has suffered a lull this past

There is no doubt that competition will continue to intensify

fiscal year, Mabuchi posted consolidated sales of 105,129

in this market. By discerning and anticipating the inevitable

million yen with net income and net income per share ofchanges in the marketplace with precision, by responding to

16,281 million yen and 345.85 yen, respectively. With athe needs of clients and consumers with responsibility and21.0% operating income on sales, 15.5% net income oncare, and by providing solutions of quality and innovation, we

sales, 7.1% return on equity, and 6.5% return on assets,strive to build an ever stronger Mabuchi Motor.

Mabuchi far exceeded the industry average. Mabuchi Motor
has also maintained more than 50% of the world market share

Takaichi Mabuchi

of small DC brush motors for decades. For fiscal year 2001,

President
March 28, 2002

Mabuchi provides our shareholders with a stable dividendbase of 50 yen per share plus a supplemental dividend(calculated as a defined proportion of our consolidated net
profits) of 17 yen, totaling 67 yen per share.

20
01

ABOUT MABUCHI MOTOR

Motorizing the electric
toothbrush that keeps
her smile bright.

03
MABUCHI MOTOR CO., LTD.

MOTORS NOs. FF-180PH/SH

THE MOTOR THE WORLD TURNS TO.

Corporate Overview

20
01

ABOUT MABUCHI MOTOR
Corporate Overview

Since Mabuchi Motor first brought smiles to children's faces bymaking motorized toys run longer, our pioneering electricmotors have contributed more and more to the quality of life theworld over. Though you may not know it, there's probably a
Mabuchi motor powering your electric toothbrush, your car windows, your ink jet printer,and your video camera. Hardly a day goes by when your life isn't made just a little bit morelivable by the products we manufacture. Founded in 1954, Mabuchi Motor is the largest
producer of small direct-current brush motors today.

Motors that touch millions of
MOTORS NOs. RS-545PH,
RS-455PA , RS-385PH
Motorizing the printerthat bring to life thedesigns that dazzle the

THE MOTOR THE WORLD TURNS TO.

fashion world.

MOTORS NOs. FF-N20PA ,RF300CA/FA
Motorizing the gamethat will make him anintergallactic star.

MABUCHI MOTOR CO., LTD.

04

MOTOR NO. CO -261PA
Motorizing the juicer
that keeps her family ingood health.

MOTORS MATTERS.

WHEN YOU CAN DO SEVERAL
THINGS BETTER?

Dozens of product makers and countless consumers depend

That's the principle behind Mabuchi Motor's APPLICATION

on it. The finest brands in Asia, Europe, and the Americas rely

DIVERSITY & PRODUCT STANDARDIZATION. Once we've met

on Mabuchi Motor to meet their exact performance and pro-a customer's exact specifications for product performance, we

duction requirements, however unusual or demanding. From

continue to develop that product to work in as many diverse

product development to prompt delivery, Mabuchi is commit-

applications for as many types of equipment as possible. By

ted to excellence and dedicated to continually improving themeeting multiple needs, our motors can be more efficiently

products that power your life.

mass produced. That's how we're able to offer such COSTEFFECTIVE PRICING.

A MOTOR OPERATES ONLY AS WELL
AS THE COMPANY THAT MAKES IT.

OUR MOTORS LEAVE
THE FACTORY RUNNING.

That's our corporate philosophy in a nutshell. And that's why
we've made the manufacture of our motors such an exact sci-

Even the best product won't satisfy a customer if it doesn't

ence. Our passion for what we do is guided by our principles

get to him on time. Mabuchi maintains EXACT DELIVERY

for doing it in the most efficient, productive, and responsible

SCHEDULES. And we're always implementing new and

way we possibly can.

improved MANUFACTURING TECHNOLOGIES to optimize effi-

lives every day.

ciency and maximize output. That way our customers candeliver their own products to market on schedule and withcomplete confidence.

OUR PIONEERING SPIRIT DRIVESEVERY MOTOR WE MAKE.

Our forward-thinking approach to PRODUCT DEVELOPMENT
remains the key to our success. Every year our customers present us with new and exciting challenges. And every year werise to them, whether that means adapting existing products for
special new applications or designing entirely new motors.
Taking novel approaches and harnessing new technologies
and materials set Mabuchi Motor apart. It's as true of the products coming off our assembly line today as it was of our very
first creation.

UNDER NO CONDITION WILL WE
PRODUCE ANYTHING LESS THAN
A SUPERIOR PRODUCT.

That includes blistering heat, freezing cold, extreme humidity,
aridity, and salinity. Our motors undergo stringent testing tosimulate even the most adverse operating conditions. Maybe
that's why Mabuchi's QUALITY CONTROL system has earned
two ISO accreditations from the Dutch Council for Certification.

MOTORS NOs. FC -280PT,
JC/LC -578VA
Motorizing the car par ts
that will give her acomfor table ride to work.

THE MOTOR THE WORLD TURNS TO.

WHY DO ONE THING WELL

05
MABUCHI MOTOR CO., LTD.

THE QUALITY OF OUR

2001

FINANCIAL REVIEWNET SALES

In fiscal 2001, consolidated sales amounted
to ¥105,129 million ($796 million), down by

HOME APPLIANCES AND

Net sales decreased in all overseas markets

POWER TOOLS

except Europe due to the downturn in the U.S.

9.6% from the previous year due primarily toMotor sales in this market soared 8.4% toeconomy and an adverse effect in Asia. Net

decreased sales in Audio/Visual Equipment¥19,509 million ($ 148 million) due to asales increased 5.8% in Europe while net

and Toys/Hobbies markets, declining sellingstrong demand for toothbrushes, shavers,

sales decreased 8.0% in North and Latin

prices caused by fierce worldwide competi-

kitchen utensils and power tools motors.

America, 8.0% in China and Hong Kong, andtion, and user's shift to economy motor mod-12.4% in Asia Pacific, respectively.

els. Following is the trend of our markets by

PRECISION INSTRUMENTS AND

application in 2001:

OFFICE EQUIPMENT

Motor sales for printers were brisk for the firsthalf of the year but total sales decreased

AUDIO & VISUAL EQUIPMENT

12.2% to ¥10,684 million ($ 81 million) due
While a demand for DVD/game player motors
increased, a demand for disc-driving andto the decrease in sales for camera and clock
products.

audio motors decreased due to the weakening
PC market and production control by major
customers. Motor sales fell 16.8% to ¥44,244
million ($335 million).

T OY S A N D H O B B I E S

Motor sales decreased 22.1% to ¥4,728
million ($36 million) due to overall weak
demands in this market.

AUTOMOTIVE PRODUCTS

Motor sales for all main items such as

Reviewing net sales by geographic area in

retractable rear view mirrors, door lock and2001, net sales in Japan decreased 23.7% toair-conditioning damper actuators were brisk,¥12,534 million ($95 million) due to thebut sales decreased 3.2% to ¥25,907 million

Japanese economic recession during the year($196 million) due to the decrease in sales

despite continuing fiscal and financial poli-

for high priced motors.

cies designed to help recover the economy.

THE MOTOR THE WORLD TURNS TO.

N E T S A L E S B Y A P P L I C AT I O N

MABUCHI MOTOR CO., LTD.

06

Years ended December 31

Yen

U.S. Dollars(millions)(thousands)

1997

1998

1999

2000

2001

Audio-Visual Equipment¥ 55,236¥ 58,524¥ 54,429¥ 53,182¥ 44,244

Automotive Products

29,03627,80927,59926,75825,907

196,265

Home Appliances & Power Tools

17,316

18,056

17,58518,004

19,509147,796

Precision Instruments & Office Equipment

12,502

11,554

10,92912,173

10,68480,939Toys and Hobbies

7,608

8,522

6,928

6,068

4,728

35,818

Other

137

187

75

48

57

432

Total

¥ 121,835¥ 124,652¥ 117,545¥ 116,233¥ 105,129$ 796,432

Other includes parts and equipment sales.

2001$

335,182(Millions of Yen)

NET SALES BY APPLICATION

Audio-Visual Equipment

Automotive Products

14 0 , 0 0 0

42%

12 0 , 0 0 0
10 0 , 0 0 025%80,00060,000Home Appliances & Power Tools

Precision Instruments

40,000Toys and Hobbies& Office Equipment

19%

20,000
0
1997

1998

1999

2000

10%

4%

2001

Yen

U.S. Dollars(millions)(thousands)

NET SALES BY GEOGRAPHIC AREA

1997

1998

1999

2000

2001

¥ 20,832¥ 20,634¥ 19,124¥ 16,429¥ 12,534

North & Latin America

16,107

16,17014,843

13,945

12,83097,197

Europe13,838

16,22814,731

13,951

14,767

111,871

China & Hong Kong

39,12944,051

42,18845,262

41,641

315,462

Asia Pacific

31,792

27,382

26,584

26,59823,300176,515

Other

137

187

75

48

57

432

Total

¥ 121,835¥ 124,652¥ 117,545¥ 116,233¥ 105,129$ 796,432

Japan

2001
$

94,955

Other includes parts and equipment sales.

14 0 , 0 0 0

China & Hong Kong

Asia Pacific

12 0 , 0 0 0
10 0 , 0 0 0

22%

40%

80,000Europe14%

20,000
0
1997

1998

1999

2000

COSTS, EXPENSES AND
NET INCOME

Cost of sales decreased by 7.5%, to ¥66,247
million ($502 million). The cost of sales ratiorose 1.4%, to 63.0% from 61.6% in 2000, due
mainly to an adverse effect on unit costs
resulting from a production volume decreaseby 19.7% over 2000.
Selling, general and administrative expenses
increased by 4.9% over the previous year
since the headquarters utilized professional
consultants for certain strategic planning andNorth & Latin America

Japan

12%

12%

2001

made active R&D expenditures for new
products, while continuous efforts by the
manufacturing subsidiaries successfully
reduced indirect manufacturing and administrative costs. Research and development
expenses amounted to ¥3,422 million ($26
million) in 2001 and ¥2,832 million in 2000.
As a result of these factors, operating income
decreased 22.9%,to ¥22,079 million ($167
million) over the previous year.
Other income (expense) includes net otherincome of ¥1,416 million ($11 million) in
2001 versus net other income of ¥5,020 mil-lion in 2000. The decrease in 2001 was due
mainly to a loss on valuation of investment
securities of ¥4,113 million ($31 million)
while there were increases in interest income
and exchange gains. As a result, income
before income taxes and minority interests
decreased by 30.2%, to ¥23,495 million($178 million).
Net income also decreased 30.6%, to¥16,281 million ($123 million). Our effective
corporate income tax rate in 2001 was 30.3%,
which approximated the rate in 2000.

07
MABUCHI MOTOR CO., LTD.

40,000

THE MOTOR THE WORLD TURNS TO.

60,0002001

FINANCIAL REVIEWContinued

FOREIGN CURRENCY

As indicated in Note 9 “Segment Information” to consolidated financial statements, overseas sales accounted for approximately 88% of consolidated net
sales in 2001, of which 92% was transacted by the U.S. dollar and U.S. dollar linked currencies.
During 2001, the average rate of the yen depreciated approximately 12.7% against the U.S. dollar. The depreciation of the yen against the foreign currencies resulted in increases of net sales of approximately ¥9,900 million ($75 million) and operating income of ¥4,800 million ($36 million).
The Company uses foreign exchange forward contracts to hedge foreign exchange risks associated with accounts receivable and payables denominatedin foreign currencies. It is our current policy to hedge 100% of net receivables and payables (see Note 7 “Derivative Financial Instruments”).

FINANCIAL POSITION

Net working capital at December 31, 2000 and 2001 is summarized as follows (millions of yen):
Current assets
Current liabilities

2000

2001

Decrease¥ 148,331¥ 132,144¥ (16,187)

14,216

9,465(4,751)

Net working capital¥ 134,115¥ 122,679¥ (11,436)

Current ratio

10.4

14.0

The decrease in current assets at December 31,2001 consisted of mainly an increase of cash and cash equivalents by ¥23,954 million and decreases of short-term investments by ¥36,615 million and inventories by 2,931 million. The decrease of short-term investments was due primarily toreclassifying available-for-sale securities of ¥32,538 million ($247 million) to investment securities to comply with a new accounting standard forfinancial instruments in 2001, considering management’s intent (see Note 1(e)”Securities”). Current liabilities decreased by ¥4,751 million due
mainly to a decrease of accrued income taxes in 2001. Shareholders’ equity increased by ¥23,388 million compared to the previous year. The shareholders’ equity ratio increased 2.9 percentage points, to 92.9% at the end of 2001 from 90.0% at the previous year-end due to a decrease of total liabilities.

CASH FLOW

The major items of cash flows for the years ended December 31,2000 and 2001 are summarized below:
Net income

THE MOTOR THE WORLD TURNS TO.

Depreciation and amortization

MABUCHI MOTOR CO., LTD.

08

2000

2001

¥ 23,472¥ 16,281

6,425

6,600

Additions to plant and equipment(4,629)(5,145)Purchase of short-term investments and investment securities(31,474)(30,478)

Proceeds from sale of investment securities

18,082

28,734

Cash dividends paid

(3,811)(3,482)Other, net
Net increase in cash and cash equivalents

3,072

11,444¥ 11,137¥ 23,954

Net cash provided by operating activities increased ¥1,769 million from 2000, to ¥30,070 million ($228 million) due mainly to decreases in tradenotes and accounts receivable and inventories resulting from a decrease in sales and efforts to lower inventory balances.
Net cash used in investing activities decreased ¥8,391 million from 2000, to ¥7,792 million ($59 million) which was attributable to an increase inproceeds from sale of investment securities
Net cash used in financing activities decreased ¥321 million from 2000, to ¥3,486 million ($26 million) since cash dividends paid decreased ¥329
million from 2000, to ¥3,482 million ($26 million) based on a decrease in consolidated net income in 2001. Dividends per share decreased from¥75 to ¥67.
The Company believes that the financial condition remains very strong and the present balance of cash and cash equivalents are adequate for theCompany to further strengthen the existing core business, expand the opportunities for new business and create shareholder value.

2001

F I V E -Y E A R F I N A N C I A L S U M M A R Y
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31

Yen

U.S. Dollars(millions)(thousands)

1997

1998

1999

2000

2001

2001

¥ 121,835¥ 124,652¥ 117,545¥ 116,233¥ 105,129

24,06228,30028,481

28,62422,079167,265

30,672

28,48728,49833,64423,495

177,992

16,66417,016

18,793

23,472

16,281

123,341498.61¥ 345.85

75.00

67.00

Operating Results
Net sales
Operating income$

796,432

Income before income taxes
and minority interests
Net income

Per share of common stock:
Net income¥

354.69¥362.00¥399.20¥$

2.62(Yen and U.S. Dollars)
Cash dividends per share

40.00

45.00

70.00

0.51

(Yen and U.S. Dollars)

Depreciation and amortization

¥

7,837

¥

7,314

¥

7,234

¥

6,425

¥

6,600

$

50,000Capital expenditures

9,753

6,832

4,051

4,627

5,132

38,879R&D expenses

3,702

3,780

3,752

2,832

3,422

25,924

Balance Sheet
Shareholders’ equity¥ 172,422¥ 187,841¥ 204,403¥ 218,472¥ 241,860$ 1,832,273

Total assets¥ 213,045¥ 207,682¥ 218,083¥ 242,626¥ 260,329$ 1,972,189

46,99947,07647,07647,07647,07656,54755,53058,27960,51145,203

Other Data
Number of shares outstanding(thousands of shares)
Number of employees

exchange rate on December 31, 2001.
2. Net income per share figures are based on the weighted average number of shares of common stock outstanding during eachfiscal year.
3. Number of employees includes contract manufacturing labor at plants in Guang Dong, China.
4. Effective 2000, the Company adopted a new accounting standard for research and development costs. The Company
changed the previous scope of such costs to disclose only costs incurred in research and development activities for new
products and processes. Those costs based on the previous scope in 2000 were ¥4,456 ($33,758 thousand).

THE MOTOR THE WORLD TURNS TO.

1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥132=U.S. $1, the approximate

09
MABUCHI MOTOR CO., LTD.

NOTES:

20
01

CONSOLIDATED BAL ANCE SHEETS
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2000 and 2001

ASSETS

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2001

Current Assets:
Cash and cash equivalents

60,270¥ 84,224

Short-term investments

42,6055,990

45,379Trade notes and accounts receivable

15,16413,08899,152Less-Allowance for doubtful receivables

(289)

(425)

(3,220)Inventories

26,46323,532

178,273

Deferred income taxes-current

2,021

1,691

12,811Other current assets

2,097

4,044

30,635

148,331

132,144

1,001,091

Total current assets¥$

638,061

Plant and Equipment, at cost:
Land

4,014

4,774

36,167

Buildings

38,43041,252

312,515

Machinery and equipment

55,321

64,839491,205

Construction in progress

1,501

1,345

10,18999,266112,210850,076(61,907)(73,203)(554,568)

37,35939,007295,508

Investment securities

52,94985,879650,598

Long-term loans receivable

2,027

970

7,348

Deferred income taxes-long-term

161

138

1,045

Other investments and other assets

1,609

2,191

16,59956,74689,178675,590190--¥ 242,626¥ 260,329$ 1,972,189

Less-Accumulated depreciation

THE MOTOR THE WORLD TURNS TO.

Investments and Other assets:

MABUCHI MOTOR CO., LTD.

10

Foreign Currency Translation Adjustments

The accompanying notes to consolidated financial statements are an integral part of these balance sheets.

LIABILITIES AND SHAREHOLDERS’ EQUITY

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2001

Current Liabilities:
Trade notes and accounts payable

¥

4,572

¥

3,462

$

26,227

Accrued expenses

3,453

3,117

23,614

Accrued income taxes

5,707

2,246

17,015

Deferred income taxes-current
Other current liabilities
Total current liabilities

4

3

23

480

637

4,825

14,216

9,465

71,704Long-term Liabilities:
Estimated retirement and termination allowances

380

-

-

Allowance for severance and pension benefits

-

1,982

15,015Retirement allowances for directors and statutory auditors

564

419

3,174

Deferred income taxes-long-term

6,632

4,888

37,030

866

22

167

8,442

7,311

55,386

1,496

1,693

12,826

Other long-term liabilities

Minority Interests
Contingent Liabilities
Shareholders’ Equity:
Common stock, par value ¥50 per share:

20,705

156,856

20,42020,420154,697

Retained earnings

177,348

189,972

1,439,182

-

(168)

(1,273)Foreign currency translation adjustments-

10,936

82,849Treasury stock

(1)

(5)

(38)

218,472

241,860

1,832,273¥ 242,626¥ 260,329$ 1,972,189

Issued: 47,075,881 shares in 2000 and 2001

Unrealized losses on investments

Total shareholders’ equity

11
MABUCHI MOTOR CO., LTD.

20,705Additional paid-in capital

THE MOTOR THE WORLD TURNS TO.

Authorized: 100,000,000 shares:

20
01

CONSOLIDATED STATEMENTS OF INCOME
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2000 and 2001

Yen

U.S. Dollars(millions)(thousands)

2000

2001

¥ 116,233¥ 105,129

Cost of Sales

71,592

66,247

501,871

Gross profit

44,641

38,882

294,561

Selling, General and Administrative Expenses

16,017

16,803

127,296

Operating income

28,62422,079167,265

3,054

3,368

25,515Net Sales

2001$

796,432

Other Income (Expenses):
Interest and dividend income
Interest expense
Exchange gains on foreign currency transactions
Loss on valuation of investment securities

(1)

(1)

(8)

3,372

4,047

30,659-(4,113)(31,159)(1,405)(1,885)(14,280)

5,020

1,416

10,72733,64423,495

177,992

Current

10,9488,396

63,606

Deferred(951)(1,288)(9,758)

9,997

7,108

53,848

(175)

(106)

(803)

23,472¥ 16,281

Other, net

Income before Income Taxes and Minority Interests
Income Taxes:

Minority Interests
Net Income

¥

Yen

$

123,341

U.S. Dollars

2000

2001

498.61¥ 345.85

75.00

67.00

2001

THE MOTOR THE WORLD TURNS TO.

Per Share of Common Stock:

MABUCHI MOTOR CO., LTD.

12

Net income
Cash dividends applicable to earnings of the year¥

The accompanying notes to consolidated financial statements are an integral part of these statements.

$

2.62
0.51

20
01

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2000 and 2001

Number of Shares

Yen

U.S. Dollars(thousands)(millions)(thousands)

2000

2001

2000

2001

2001

Beginning balance

47,07647,076¥

20,705¥20,705$

156,856

Ending balance

47,07647,076¥

20,705¥20,705$

156,856

Beginning balance¥

20,420¥20,420$154,697

Ending balance¥

20,420¥20,420$154,697

Common Stock:

Additional Paid-in Capital:

Retained Earnings:
Beginning balance¥ 163,284¥ 177,348$ 1,343,546

Cumulative effect of applying deferred tax accounting(5,447)--

Net income

23,472

16,281

123,341

Cash dividends(3,813)(3,484)(26,394)

Bonuses to directors and statutory auditors

(148)

(173)

(1,311)¥ 177,348¥ 189,972$ 1,439,182

Ending balance

THE MOTOR THE WORLD TURNS TO.

The accompanying notes to consolidated financial statements are an integral part of these statements.

MABUCHI MOTOR CO., LTD.

13

20
01

CONSOLIDATED STATEMENTS OF CASH FLOWS
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2000 and 2001

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2001

23,472¥ 16,281

Depreciation and amortization

6,425

6,600

50,000

Provision for allowance for severance and pension benefits, net of payments

990

639

4,841

Provision for income taxes - deferred(951)(1,288)(9,758)Losses on valuation of marketable securities

362

-

-

-

4,113

31,159

(172)

3,259

24,689Cash Flows from Operating Activities:
Net income¥$

123,341

Adjustments to reconcile net income to net cash provided
by operating activities:

Losses on valuation of investment securities(Increase)Decrease in trade notes and accounts receivables(Increase)Decrease in inventories(2,609)5,849

44,311

Increase(Decrease) in trade notes and accounts payable(643)(1,565)(11,856)

Increase(Decerease) in accrued income taxes

1,840(3,461)(26,220)

Other, net

(413)

(357)

(2,704)28,301

30,070227,803(4,629)(5,145)(38,977)

Net cash provided by operating activities

Cash Flows from Investing Activities:
Additions to plant and equipment
Change in short-term investments(15,304)

10,054

76,167Purchase of investment securities(16,170)(40,532)(307,061)

Proceeds from sale of investment securities

18,082

28,734

217,682

Other, net

1,838

(903)

(6,841)(16,183)(7,792)(59,030)(3,811)(3,482)(26,379)

4

(4)

(30)

(3,807)(3,486)(26,409)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

2,826

5,162

39,106Net Increase in Cash and Cash Equivalents

11,137

23,954

181,470

Cash and Cash Equivalents at Beginning of Year49,13360,270456,591¥

60,270¥ 84,224$

638,061

¥

1

¥

$

8

Net cash used in investing activities

Cash Flows from Financing Activities:
Cash dividends paid
Other, net

THE MOTOR THE WORLD TURNS TO.

Net cash used in financing activities

MABUCHI MOTOR CO., LTD.

14
14

Cash and Cash Equivalents at End of Year

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest
Income taxes

9,128

1
11,881

The accompanying notes to consolidated financial statements are an integral part of these statements.

90,008

20
01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries

1. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES(a) Basis of presenting financial statements
The accompanying consolidated financial statements of Mabuchi Motor Co., Ltd. (the “Company”) and its consolidated subsidiaries have been
prepared from the consolidated financial statements filed with the Ministry of Finance as required by the Securities and Exchange Law of Japan.
The Company maintains the accounts in accordance with the provisions set forth in the Japanese Commercial Code and in conformity with accounting
principles and practices generally accepted in Japan, which may differ in some material respects from accounting principles and practices generally
accepted in countries and jurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required under accounting principles generally accepted in Japan but is presented herein as additional information. For the purpose of this report, certain reclassifications have been made to present theaccompanying consolidated financial statements in a format which is familiar to readers outside Japan.
For the convenience of the reader, the accompanying consolidated financial statements have also been presented in U.S. dollars by translating yen
amounts at the rate of ¥132 to U.S.$1, which was the approximate exchange rate prevailing on December 31, 2001.
Certain reclassifications have been made to the accompanying consolidated financial statements for 2000 to conform to the 2001 presentations.
(b) Principles of consolidation
The consolidated financial statements include the accounts of the Company and all significant subsidiaries. All significant inter-company balances,transactions, and profits have been eliminated in consolidation. Investments in unconsolidated subsidiaries are stated at cost.
(c) Translation of foreign currencies
Prior to January 1, 2001, monetary current assets and liabilities denominated in foreign currencies were translated into Japanese yen at the rates of
exchange in effect at the balance sheet date. All other accounts were translated at historical rates in effect at the time of each transaction. Foreignsubsidiaries’ assets and liabilities were translated into yen at the rates of exchange in effect at the balance sheet date except for shareholders’ equity
which were translated at historical rates. Revenues and expenses were translated at the average rates of exchange for the year. Translation adjustments
were not included in income but were dealt with as an account of assets or liabilities.
Effective January 1, 2001, the Company and its domestic subsidiary adopted the revised Accounting Standard for Foreign Currency Transactions.
Under the new method, all monetary assets and liabilities denominated in foreign currencies are translated into yen at the rate of exchange in effectat the balance sheet date. Exchange differences resulting from these translations are included in income. Foreign subsidiaries’ assets and liabilities
are translated into yen at the rates of exchange in effect at the balance sheet date. The accounts of shareholders’ equity are translated at historicalrates. Revenues and expenses are translated at the average rates of exchange for the year. The resulting foreign currency translation adjustments areshown as a separate component of shareholders’ equity. The effect of adopting the revised standard was immaterial.
(d) Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments, generally with original maturities of three months or less, that are readily convertible
to known amounts of cash and are so near maturity that they present insignificant risk of changes in value because of changes in interest rates.

cost, determined by the moving average method, or market. Other securities were stated at cost.
Effective January 1, 2001, the Company adopted a new accounting standard for financial instruments. Under the standard, the Company classifies
securities as “held-to-maturity” for which management has the positive intent and ability to hold to maturity, and “available-for-sale” which
represent securities not classified as either trading or held-to-maturity.
Held-to-maturity securities are reported at amortized or accumulated cost. Available-for-sale securities are reported at fair value, with corresponding unrealized gains and losses, net of applicable taxes, reported in a separate component of shareholders’ equity. However, when the fair value ofavailable-for-sale securities declines significantly and is considered to be irrecoverable from the book value, such unrealized holding losses arecharged to income. Available-for-sale securities for which fair value is not readily determinable are stated at moving average cost.
As a result of adopting the new accounting standard for financial instruments, income before income taxes and minority interests decreased by¥3,306 million ($25,045 thousand), and short-term investments classified as current assets decreased by ¥32,538 ($246,500 thousand) and investment securities increased by the same amount as of January 1, 2001.

15
MABUCHI MOTOR CO., LTD.

Prior to January 1, 2001, marketable securities that were included in “Short-term investments” or “Investment securities” were stated at the lower of

THE MOTOR THE WORLD TURNS TO.

(e) Securities

20
01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries(f) Inventories
Finished goods, work in process and raw materials are principally stated at average cost. Marketable raw materials such as copper, gold, silver andpalladium are stated at the lower of average cost or market.
(g) Depreciation
Depreciation of plant and equipment is computed principally by the declining-balance method for the Company and its domestic subsidiary andprincipally by the straight-line method for overseas subsidiaries over their estimated useful lives. Maintenance and repairs, including minor renewals
and improvements, are charged to income as incurred.
(h) Research and development expenses
Expenditures relating to research and development activities are charged to income as incurred and amounted to ¥2,832 million and ¥3,422 million($25,924 thousand) for the years ended December 31, 2000 and 2001, respectively.
(i) Income taxes
Prior to 2000,income taxes of the Company and most of its subsidiaries are provided based on the amount required by the tax returns.
In 2000, the Company and its consolidated subsidiaries account for income taxes using a new accounting standard issued by the BusinessAccounting Deliberation Council of Japan. This standard requires recognition of deferred taxes under the liability method, whereby deferred tax assets
and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and theirreported amounts using presently enacted tax rates. Provision for Japanese income taxes on undistributed earnings of foreign subsidiaries is madeonly on those amounts in excess of the funds considered to be permanently reinvested.
As a result of this change in accounting for income taxes, 2000 net income increased by ¥943 million ($7,144 thousand) and retained earnings
decreased by ¥4,504 million ($34,121 thousand) as of and for the year ended December 31, 2000 over the amounts which would have been recorded
if the prior year’s method had been applied. Also, the cumulative effect of this change to retained earnings as of January 1, 2000 has been reported
as a “Cumulative effect of applying deferred tax accounting” in the consolidated statements of shareholders’ equity.
(j) Retirement benefits
The Company has a trusteed noncontributory pension plan covering substantially all qualified full-time employees. Under the plan, eligible employees
are entitled to a 10-year annuity or lump-sum payments based on the rate of pay at the time of retirement or termination, length of service and certain
other factors. Annual payments to the trustees for the pension plan, which are deductible for tax purposes, are based on actuarially determined costsof the plan.
In 2000, the Company changed its method of charging prior service costs of the pension plan to an accrual basis from a cash basis. Under the
cash basis, the Company had charged the annual payments to income, including the amortization of prior service costs. Under the accounting methodchange in 2000, the Company charged to income past service costs through the recognition of long-term accrued expense of ¥840 million ($6,364
thousand). This was the balance of past service liability as of November 30, 2000.
Effective January 1, 2001, the Company adopted a new accounting standard for employees’ retirement benefit. In accordance with the new stan-

THE MOTOR THE WORLD TURNS TO.

dard, allowances for severance and retirement benefits are provided based on the amount of projected benefit obligation reduced by the fair value of

MABUCHI MOTOR CO., LTD.

16

pension plan assets at the end of the annual period. The effect of this adoption was to decrease income before income taxes and minority interests
for the year ended 31, 2001 by ¥933 million ($7,068 thousand).
The excess of the projected benefit obligation over the fair value of plan assets as of January 1, 2001 amounted to ¥762 million ($5,773 thousand)and was recognized as “net transition obligation”, and was fully amortized for the year ended December 31, 2001.
Certain subsidiaries have pension plans similar to the Company or unfunded retirement and termination allowance plans for qualified employees.
The amounts required under the plans have been fully accrued.
The Company also has an unfunded retirement and termination allowance plan for directors and statutory auditors and has fully accrued the amountrequired under the plan.
(k) Derivative and hedging activities
Effective January 1, 2001, the Company adopted a new accounting standard for financial instruments. Under the new standard, if a forward foreignexchange contract is executed to hedge a future transaction denominated in a foreign currency, the Company defers recognition of gains or losses
on evaluation of derivative financial instruments until the related losses or gains on the hedged items are recognized.

2. INVENTORIESInventories as of December 31, 2000 and 2001 were as follows:

Yen

U.S. Dollars(millions)(thousands)

2000

2001

15,132¥ 14,916

Work in process

3,187

2,539

19,235

Raw materials

8,144

6,077

46,03826,463¥ 23,532

Finished goods

¥

¥

2001
$

113,000$

178,273

3. SECURITIESShort-term investments and investment securities as of December 31, 2000 include marketable debt and equity securities and investment trusts ofwhich market value is as follows:

Yen

U.S. Dollars(millions)(thousands)

2000

2000

Book
value

Marketvalue

Gains(losses)

Book
value

Marketvalue

Gains(losses)

Short-term investments:
Debt securities¥

Equity securities

7,425

¥

1,293

Investment trusts

7,291

¥

1,772

32,387

(134)

$

479

29,86256,250$9,795

55,235$

13,424(1,015)
3,629(2,525)245,356

226,227(19,129)¥

41,105¥38,925¥(2,180)$ 311,401$ 294,886$ (16,515)

¥

2,054

¥

2,537

¥

483

$

$

$

Investment securities:
Equity securities

15,561

19,2203,659

The cost, net unrealized gains and losses, and fair value for marketable for securities classified as availalble-for-sale and held-to-maturity as of

U.S. Dollars(thousands)

2001

2001

Cost

Fair
value

Gains
(losses)

Cost

Fair
value

Gains
(losses)(625)$ 188,909$ 184,174$ (4,735)

Available-for-sale:
Debt securities¥

24,936¥24,311¥Equity securities

3,172

3,877

705

24,03029,371

5,341

Other

39,14838,841(307)

296,576

294,250(2,326)¥

67,256¥67,029¥(227)$ 509,515$ 507,795$ (1,720)¥

24,750¥24,159¥(591)$ 187,500$ 183,023$ (4,477)

Held-to-maturity:
Debt securities

17
MABUCHI MOTOR CO., LTD.

Yen(millions)

THE MOTOR THE WORLD TURNS TO.

December 31, 2001 are as follows:

20
01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries

The contractual maturities for securities classified as available-for-sale and held-to-maturity at December 31, 2001 were as follows:

Yen

U.S. Dollars(millions)(thousands)

2001
Withinone year
Held-to-maturity securities¥

Available-for-sale securities¥

Over one year
Over five years
through five years through ten years

8,701¥ 22,080¥ 14,991-

10,254

5,259

8,701

¥ 32,334¥ 20,250

2001
Over ten years

¥
¥

Total

Total

6,000

¥ 51,772$ 392,212-

15,513

117,523

6,000¥ 67,285$ 509,735

4. RETIREMENT PLANS

Effective January 1, 2001, the Company and certain subsidiaries adopted a new accounting standard for employees’ retirement benefit (See note 1(j)).
The table below sets forth the plan’s funded status and amounts recognized in the balance sheet at December 31, 2001.

Projected benefit obligation

Yen

U.S. Dollars(millions)(thousands)¥ 6,940$ 52,576(4,958)(37,561)Fair value of plan assets
Unrecognized actuarial differences
Allowance for severance and pension benefits00¥ 1,982$ 15,015

The components of net periodic benefit cost for the year ended December 31, 2001 were as follows:

Service cost

THE MOTOR THE WORLD TURNS TO.

Interest cost

MABUCHI MOTOR CO., LTD.

18

Yen

U.S. Dollars(millions)(thousands)¥

585$ 4,432

136

1,030

Expected return on plan assets

(38)

(288)

Amortization of net transition obligation

762

5,773

¥ 1,445$ 10,947

Net periodic pension cost

Assumtions used for the year ended December 31, 2001 were as follows:
Discount rate

2.5%

Expected rate of return on plan assets

1.0%

Allocation method of the retirement benefits expected to be paid at the retirement date

Flat allocation

Amortization period for actuarial gains/loss

10 years

Amortization of prior service costst

1 year5 . I N C O M E TA X E S

The Company is subject to several taxes based on income with a normal tax rate aggregating approximately 41.7% for the years ended December 31,
2000 and 2001. Foreign subsidiaries are subject to income taxes in the countries where they operate.
The following table summarizes the significant differences between the Japanese statutory income tax rate and the effective income tax rate on pretax income for the years ended December 31, 2000 and 2001:

2000

2001

Statutory income tax rate

41.7%

41.7%

International income taxed at varying rates(13.6)(17.3)

Effect on elimination of dividend income fromforeign subsidiaries for consolidation purposes
Foreign and R & D tax credit utilization

5.6

16.2

(3.7)

(12.3)

Other, net

(0.3)

2.0

Effective income tax rate

29.7%

30.3%

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2001 were as follows:

Yen

U.S. Dollars(millions)(thousands)

2000

2001

Deferred tax assets:
Unrealized profits on inventories and fixed assets

¥

1,560

$ 11,818

2,114

16,015

Depreciation

138

1,046

Accrued enterprise taxes

421

3,189

Accrued pension benefits and retirement allowances

833

6,311

Other

143

1,083

¥

5,209

$ 39,462¥

8,091$ 61,295

180

1,364

8,271

$ 62,659

1,829$ 13,856

4,891

37,053

Evaluation losses on assets

Total

Other
Total

¥

As reported in the consolidated balance sheet:
Deferred tax assets
Deferred tax liabilities¥

19
MABUCHI MOTOR CO., LTD.

Tax on undistributed foreign earnings

THE MOTOR THE WORLD TURNS TO.

Deferred tax liabilities:

20
01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries

6 . S H A R E H O L D E T S ’ E Q U I T Y A N D P E R S H A R E D ATA

The amended Japanese Commercial Code (the “Code”) enacted effective from October 1, 2001 provides that an amount equivalent to at least 10%of cash dividends paid and other cash outlays resulting from appropriations of retained earning with respect to each annual period, be appropriatedto the legal reserve until total of such reserve and additional paid-in capital equals 25% of the stated capital. As of December 31, 2001, the total of
the legal reserve of ¥ 3,812 million ($28,879 thousand) which is included in retained earnings at December 31, 2001, and additional paid-in capital,
already reached 25% of the stated capital. The Code also provides that additional paid-in capital and the legal reserve up to 25% of the stated capitalare not available for cash dividends but may be used to reduce a capital deficit or may be capitalized. The paid-in capital and legal reserve exceeding
25% of the stated capital are available for dividends or purchase of treasury stock upon approval of shareholders’ meeting.
Year-end cash dividends are approved by the shareholders after the end of each fiscal year. Semi-annual interim cash dividends are declared by
the Board of Directors after the end of each interim six-month period. Such dividends are payable to shareholders of record at the end of each fiscal
year or interim six-month period.
In accordance with the Code, these dividends and the related appropriations of retained earnings have not been reflected in the financial statements
at the end of such fiscal year. However, dividends per share shown in the accompanying consolidated statements of income reflect dividends applicableto the respective fiscal year. Net income per share is computed based on the weighted average number of shares of common stock outstanding.
On September 25, 2001, semi-annual interim cash dividends (¥35 or $0.27 per share) of ¥1,648 million ($12,485 thousand) were paid to shareholders of record at June 30, 2001. On March 28, 2002, the shareholders approved the declaration of cash dividends (¥32 or $0.24 per share) totaling¥1,506 million ($11,409 thousand) and payments of bonuses to directors and statutory auditors totaling ¥104 million ($788 thousand).

7 . D E R I VAT I V E F I N A N C I A L I N S T R U M E N T S

The Company enters into forward exchange contracts and forward precious metal contracts as a normal part of risk management efforts. As a result,
the Company is exposed to risk of credit-related losses in the event of nonperformance of counterparties to foreign exchange contracts and precious
metal contracts. Management believes such risks are minor because of the high credit worthiness of the counterparties and such financial instruments have not been held for trading purpose. Following is a summary of derivative financial instruments which are currently held by the Company.
The Company uses foreign exchange forward contracts to hedge the risk of changes in foreign exchange rates substantially associated with accounts
receivable and payable denominated in foreign currencies. Gains and losses explicitly deferred, arising from contracts related to future trade transactions, are insignificant.
Forward precious metal contracts are used by the Company to hedge the risk of changes in market prices resulting from purchase of precious metals as raw materials for motor products. The contracted amounts outstanding at December 31, 2000 and 2001 were ¥150 million and ¥81 million($614 thousand), respectively. The estimated fair values at December 31, 2000 and 2001 were ¥153 million and ¥90 million ($682 thousand), respectively.

THE MOTOR THE WORLD TURNS TO.

8. CONTINGENT LIABILITIESMABUCHI MOTOR CO., LTD.

20

As of December 31, 2001, certain subsidiaries were contingently liable principally for bank guarantees in the amount of ¥36 million ($273
thousand).

9 . S E G M E N T I N F O R M AT I O N

The Company and consolidated subsidiaries manufacture and sell small electric motors, parts and equipment used for production purposes.
Substantially all of the consolidated net sales and operating income are generated from a broad range of motor products. The information on net sales,
operating income and assets by geographic area, and overseas sales is summarized as follows:
Segment Information by Geographic Area

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2001

29,240¥ 23,772Intersegment50,51643,721

331,220

Total

79,75667,493511,31160,881

54,122410,015Intersegment

48,21942,983

325,629

Total

109,100

97,105735,644

12,757

12,467

94,447

Net sales:Japan
Outside customers¥$

180,091

Asia
Outside customers

U.S.A.
Outside customers
Intersegment
Total

14

2

15

12,771

12,46994,462

13,355

14,768111,879

EuropeOutside customers
Intersegment
Total
Corporate and elimination

2

0

0

13,357

14,768111,879(98,751)(86,706)¥ 116,233¥ 105,129$

796,432¥

16,067¥ 10,081$

76,371

Asia

11,336

10,474

79,348

U.S.A.

721

560

4,242

Consolidated(656,864)

Europe

727

538

4,076

Corporate and elimination

(227)

426

3,228

¥

28,624¥ 22,079$¥

65,344¥ 64,003$

88,86099,930757,045

U.S.A.

5,964

6,074

46,015

Europe

5,322

5,942

45,015

Corporate and elimination

77,13684,380639,243¥ 242,626¥ 260,329$ 1,972,189

Consolidated

167,265

Assets:Japan
Asia

Consolidated

484,871

The amount of corporate assets included in “Corporate and elimination” is ¥129,621 million in 2000 and ¥135,276 million ($1,024,818 thousand)in 2001, which comprises principally cash, short-term investments and investment securities.

21
MABUCHI MOTOR CO., LTD.

Japan

THE MOTOR THE WORLD TURNS TO.

Operating Income:20
01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries

Overseas Sales

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2001

Overseas Sales
U.S.A.

¥

13,945¥

THE MOTOR THE WORLD TURNS TO.

97,197

13,951

14,768111,879

Asia and Other

71,89964,975492,235

92,573$ 701,311

Net Sales¥

116,233

99,795¥

105,129

796,432% of Overseas Sales to Net Sales

85.9%

88.1%

88.1%

Overseas sales are the total of exports by the Company and sales by consolidated overseas subsidiaries.

MABUCHI MOTOR CO., LTD.

$

EuropeTotal

22

12,83020
01

INDEPENDENT AUDITORS’ REPORTTo the Board of Directors of Mabuchi Motor Co., Ltd.

We have audited the consolidated balance sheets of Mabuchi Motor Co., Ltd. and consolidated subsidiaries as of December 31,
2001 and 2000, and the related consolidated statements of income, shareholders' equity, and cash flows for the years then ended,
all expressed in yen. Our audits were made in accordance with auditing standards, procedures and practices generally accepted
and applied in Japan and, accordingly, included such tests of the accounting records and other auditing procedures as we considerednecessary in the circumstances.

In our opinion, the accompanying consolidated financial statements, expressed in yen, present fairly the consolidated financial
position of Mabuchi Motor Co., Ltd. and consolidated subsidiaries at December 31, 2001 and 2000, and the consolidated resultsof their operations and their cash flows for the years then ended, in conformity with accounting principles and practices generally
accepted in Japan applied on a consistent basis.

As described in Note 1(c), (e), (j) and (k) to the consolidated financial statements, Mabuchi Motor Co., Ltd. and consolidated
subsidiaries have adopted new accounting standards for transactions denominated in foreign currencies, financial instruments andemployees' retirement benefits in the preparation of their consolidated financial statements for the year ended December 31, 2001.

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended December 31, 2001
are presented solely for convenience of the reader. Our audit also included the translation of yen amounts into U.S. dollar amounts
and, in our opinion, such translation has been made on the basis described in Note 1(a) to the consolidated financial statements.

See note 1(a) to the consolidated financial statements which explains the basis of preparing the consolidated financial statementsof Mabuchi Motor Co., Ltd. under Japanese accounting principles and practices.

23
MABUCHI MOTOR CO., LTD.

March 28, 2002

THE MOTOR THE WORLD TURNS TO.

Shin Nihon & Co.

20
01

BOARD OF DIRECTORSAs of March 28, 2002

EXECUTIVE
MANAGING
DIRECTOR

Shinji KameiPRESIDENT

MANAGING
DIRECTOR

Takaichi Mabuchi
Shoji Nishimura

Sun Zuei Che

Nobuyo Habuchi

Seiya Nakanishi

Yasuo Uehara

Shunroku
Nishimura

Chiaki Kajiwara

Ichiro Ando

Yuzaburo Nagase

THE MOTOR THE WORLD TURNS TO.

DIRECTORSMABUCHI MOTOR CO., LTD.

24

S TAT U T O R Y
AUDITORS

Kiyoshi Iwakura

C O N S O L I D AT E D

N O N - C O N S O L I D AT E D

SUBSIDIARIESSUBSIDIARIESAs of December 31, 2001

As of December 31, 2001

MABUCHI TAIWAN CO., LTD.
6/F No.3 Sec.1 Tun Hwa South Rd.
Taipei, Taiwan
Tel: 886-2-2579-0155
Fax: 886-2-2570-6535
MABUCHI MOTOR TAIWAN LTD.
No.66 Kaifa Rd., N.E.P.Z.
Kaohsiung, Taiwan
Tel: 886-7-362-1111
Fax: 886-7-361-9111
MABUCHI MOTOR DALIAN LTD.
No.41 Harbin Rd., Dalian Economic
and Technical Development Zone
China
Tel: 86-411-761-1111
Fax: 86-411-761-2900
MABUCHI MOTOR WAFANGDIAN LTD.
Laohutun Town
Wafangdian City, Liaoning Province
China
Tel: 86-411-537-0241
Fax: 86-411-537-0291
MABUCHI MOTOR (JIANGSU) CO., LTD.
No.1 Liuxu Rd., Songling
Economic and Technical Development Zone
Wujiang City, Jiangsu Province, China
Tel: 86-512-6345-1111
Fax: 86-512-6345-0438
MABUCHI MOTOR (MALAYSIA) SDN. BHD.
Plot 15, Kanthan Industrial Estate
31200 Chemor, Perak, Malaysia
Tel: 60-5-201-1888
Fax: 60-5-201-2288

MABUCHI MOTOR VIETNAM LTD.
No.28, Bienhoa Industrial Zone 2Long Binh Ward, Bienhoa City
Dongnai Province, Vietnam
Tel: 84-61-836711
Fax: 84-61-836712

MABUCHI REAL ESTATE CO., LTD.

MABUCHI PRECISION INDUSTRIES LTD.
1087 Hinata-cho,Tatebayashi-shi
Gunma-ken, 374-0076, Japan
Tel: 81-276-72-1941
Fax: 81-276-72-1943

I N V E S T O R I N F O R M AT I O N

MABUCHI PRECISION INDUSTRIESHONG KONG LTD.
19 Sam Chuk St., San Po Kong
Kowloon, Hong Kong
Tel: 852-2328-5575
Fax: 852-2352-1008
DONGGUAN MABUCHI MOTORTAIWAN MABUCHI(HONG KONG) CO., LTD.

As of March 31, 2002
Corporate Headquarters
MABUCHI MOTOR CO., LTD.
430 Matsuhidai, Matsudo-shi
Chiba-ken 270-2280, Japan
Tel: 047-384-1111
Fax: 047-389-5299
http://www.mabuchi-motor.co.jp
Ordinary General Meeting of Shareholders
The Ordinary General Meeting of Shareholders
will be held at the end of March in Matsudo.

EQUIPMENT CO., LTD.
No.16 Tianbao Road, Dongzong Road
Dongguan City, Guangdong Province
China
Tel: 86-769-225-6985
Fax: 86-769-225-6984
MABUCHI MOTOR AMERICA CORP.
3001, West Big Beaver Rd., Suite 520
Troy, MI 48084 U.S.A.
Tel: 1-248-816-3100
Fax: 1-248-816-3242
MABUCHI MOTOR (SINGAPORE) PTE. LTD.
111 North Bridge Rd., #12-05
Peninsula Plaza, Singapore 179098
Tel: 65-6339-9991
Fax: 65-6339-9091
MABUCHI MOTOR (EUROPE) GmbH
Hahnstrasse 38, 60528
Frankfurt/Main, F.R.Germany
Tel: 49-69-6690220
Fax: 49-69-66902229

Independent Accountants
Shin Nihon & Co. (Member Firm of KPMGInternational) Tokyo, Japan
Transfer Agent of Common Shares
Handling Office
UFJ Trust Bank Limited
Corporate Agency Department
10-11, Higashi-suna 7-chome, Koto-ku
Tokyo 137-8081, Japan
Tel: 03-5683-5111
Japanese Stock Exchange Listing
Tokyo stock exchange

THE MOTOR THE WORLD TURNS TO.

MABUCHI INDUSTRY CO., LTD.
19 Sam Chuk St., San Po Kong
Kowloon, Hong Kong
Tel: 852-2328-5575
Fax: 852-2352-5266

25
MABUCHI MOTOR CO., LTD.

2001

CORPORATE DIRECTORY / INVESTOR INFORMATIONC O R P O R AT E H E A D Q U A R T E R S

430 Matsuhidai, Matsudo-shi
Chiba-ken 270-2280, Japan
Tel: 047-384-1111
Fax: 047-389-5299

http://www.mabuchi-motor.co.jp