THE MOTOR

THE WORLDTURNS TO.

20
02

Annual ReportMABUCHI

MOTOR CO.
LTD.

Contents
Financial Highlights

1

Letter to Shareholders

2

About Mabuchi Motor

4

Financial Review

6Five-Year Financial Summary

9

Consolidated Balance Sheets

10

Consolidated Statements of Income

12

Consolidated Statements of

13

Shareholders’ Equity
Consolidated Statements of Cash Flows14

Notes to Consolidated Financial

15( ¥ in millions )Statements
Independent Auditors’ Report

23

Board of Directors / Corporate Directory

24

Investor Information

Net Sales

25

2
2002

116,357

2001

105,129

2000

116,233

1999

117,545

1998

124,652

1

2002 Financial Highlights
MABUCHI MOTOR CO., LTD.

2000

¥ $
Yen

U.S. Dollars(millions)(thousands)

2001

2002

2002

¥ 116,233¥ 105,129¥ 116,357$ 969,642

Operating income

28,62422,07929,123242,692

Income before income taxes
and minority interests

33,64423,49527,968233,067

Net income

23,472

16,281

18,025150,208

Shareholders’ equity

218,472

241,860

224,315

1,869,292

Total assets

242,626

260,329

244,988

2,041,567

Net sales

Per share of common stock:Yen

Net income
Cash dividends

NOTES:

U.S. Dollars¥ 498.61¥ 345.85¥ 392.13

75.00

67.00

70.00

$

3.27
0.58

1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120=U.S. $1, the approximate
exchange rate on December 31, 2002.
2. Net income per share figures are based on the weighted average number of shares of common stock outstanding during
each fiscal year.

Net Income

Net Income Per Share( ¥ in millions )

(¥)

02

0

2002

18,025

2002

392.13

2001

16,281

2001

345.85

2000

23,472

2000

498.61

1999

18,793

1999

399.201998

17,016

1998

362.002002 Letter to Shareholders
MABUCHI MOTOR CO., LTD.

D

Dear Shareholder:
Harsh global economic conditions in 2002 tested the mettle of even the most robust businesses. Indeed, few fared
as well as Mabuchi Motor. The leading producer of small direct current motors, we touch the lives of millions ofpeople around the world every day. It has been our profound and abiding commitment to build a transparent andhighly efficient global management structure in order to fulfill our mission year in and year out. By meeting theprevailing economic challenges head-on, Mabuchi has successfully demonstrated the strength and wisdom of ourmanagement vision.

It brings us great pleasure to report a 10.7% increase in net income over the preceding year. Mabuchi earnings settled at
18,025 million yen or 392.13 yen per share, and total unit sales climbed to an all-time high of 1.746 billion motors. Total sales
for fiscal year 2002 came in at 116,357 million yen. A base dividend per share of 50 yen with a supplemental dividend of 20
yen totaled 70 yen per share.
We are also proud to announce that Mabuchi Motor has been named one of Japan’s Top Ten Excellent Companies
Building Global Business Models by the Japanese government’s Council on Economic and Fiscal Policy. Thisaccolade has provided a welcome validation of our efforts, and has augmented an already steadfast determination
to persist in our endeavors. Honoring our continuing commitment to the field of education and the development ofyoung minds, we participated this past year in the sponsorship of events such as the ABU Asia Pacific Robot
Contest and the National Technical College Robot Contest.
In 2004, Mabuchi Motor will celebrate its 50th anniversary. Beyond the evolution and reform of our management andbusiness, in which we are continually engaged, we have set ambitious new goals. Our Innovation 2005 initiative scheduled forcompletion by the end of that year will encompass the following projects developed to intensify the synergy between all
Mabuchi Motor activities:• Reconstruction and Reallocation of our Global Functions and Operating Systems.
• Strengthening Product Planning and Cost Planning Strategies.
• Reconfiguring our Management Information System to achieve maximum flexibility and optimize
all aspects of our business.
• Erecting a new Global Headquarters to serve as the heart and hub of all future worldwide operations,and the wellspring of discovery, dedication, and renewed purpose.
By all indications, recovery from a distressed Japanese economy and a slumping world economy is going to take time.
Assuming our role as a leader in the global marketplace, we will strive to develop strategies to support growth in this difficult
climate. We will actively observe the market, adapt and respond to changing conditions, further secure our managementfoundation, and resolutely forge ahead towards the continued realization of our management goals.
Finally, you will notice that this letter is jointly signed by Chairman and President newly elected by the Board of
Directors after the shareholders’ meeting held this morning. It reflects our unwavering commitment to this company’s greatest ideal of contributing with all our efforts to a better world. It is a philosophy that we have embraced withardor and pride since our founding, and which we pledge to honor with even greater determination going forward.

Takaichi Mabuchi - Chairman

Shinji Kamei - President
March 28, 2003

2

CORPORATEOVERVIEW

About Mabuchi Motor

4

Financial Review

6Five-Year Financial Summary

9

Consolidated Balance Sheets

10

Consolidated Statements of Income

12

FINANCIALSECTION

Board of Directors /Corporate Directory

24

Investor Informaton

25

CORPORATEINFORMATION

Consolidated Statements ofShareholders’ Equity

13

Consolidated Statements of Cash Flows14

Notes to Consolidated Financial
Statements

15

Independent Auditors’ Report2342002 About Mabuchi Motor
MABUCHI MOTOR CO., LTD.

THE LITTLE MOTOR THAT COULD.
Since Mabuchi gave new joy to children whose
toys had once been powered by rubber bands
and springs, we’ve sought to improve the lives ofpeople everywhere with the pleasures and conveniences our motors can provide. That noble mission

OUTPERFORMING

has spawned a vast and rewarding global enterprise.

THE COMPETITION.

AND THE ECONOMY.

Founded in 1954, Mabuchi is the foremost producerof small direct current brush motors in the world
today.

H

How does a motor small enough to hide inyour closed fist pack such a mighty punch?
Just imagine the combined power andearning potential of millions of Mabuchi
motors at work all over the world in countless life-enriching devices from digital
cameras to mobile phones, DVD/CD-ROM
drives to pagers, car navigation systems to
MD players. Leading manufacturers in somany industries rely on Mabuchi quality,
service, and innovation to keep theirproducts on the cutting edge.

AUDIO & VISUAL
EQUIPMENT MARKETINFORMATION &COMMUNICATIONEQUIPMENT MARKET

AUTOMOTIVE PRODUCTS
MARKET

HOME APPLIANCES,
POWER TOOLS, TOYS
& HOBBIES MARKET

5
M A B U C H I M O T O R C O . , LT D .

ACCEPTING NO LIMITS. ACKNOWLEDGING NO BORDERS.
Anticipating a global marketplace, Mabuchi established its first overseas office in 1964. And we’vebeen aggressively expanding our production, supply,and sales network ever since. With a presence
throughout Asia, as well as in Europe and the U.S.,
we’re optimally poised to serve the world’s markets
and meet the ever- increasing demand for lowpriced, high-performance motors.

PUTTING OUR CUSTOMER FIRST. EVERY STEP OF THE WAY.
First we develop a motor to meet the customer’s
exact performance specifications. Then we makethat motor work in as many diverse applications as
possible so we can mass-produce it at a much lower
cost per unit. Next comes quality control management so stringent it’s won two ISO accreditations
from the Dutch Council for Certification. Finally, ourexact delivery schedules ensure that our customers
get their own products to market on time. From start
to finish, no Mabuchi Motor customer ever getsanything less.

PROFITING FROM OUR PRINCIPLES.
From the very beginning, our philosophy of contributing to a better tomorrow has guided everything we
do. Never content to rest on our laurels, we continually strive to lead the way in product development,
manufacturing capability, environmental responsibility, and superior performance. The relentless pursuitof perfection is the key to our success.

62002 Financial Review
MABUCHI MOTOR CO., LTD.

NET SALES
In fiscal 2002, consolidated sales amounted to ¥116,357 million

INFORMATION AND COMMUNICATION EQUIPMENT($970 million), increase 10.7% from the previous year due primarily

Motor sales for printers were increased 15.6% to ¥16,240 million

to increased sales in Audio/Visual Equipment, Information and($135 milion) in spite of a decrease in sales for other items.

Communication, and Automotive Product markets, supported bysteady demand.

HOME APPLIANCES AND POWER TOOLS AND OTHERS

Following is the trend of our markets by application in 2002:

Motor sales were brisk but total sales decreased 2.9% to¥25,688 million ($214 million) due to a decrease in demand forhair dryer, shaver and toothbrushes.

AUDIO & VISUAL EQUIPMENT
Motor sales for DVD/CD soared 15.9% to ¥44,801 million ($373
million) due to the making a round of production control by major
customers.

AUTOMOTIVE PRODUCTS
Motor sales for all main items such as air-conditioning damper
actuators, door lock, retractable rear view mirrors and motor
unit for power window lifters increased 14.3% to ¥29,603 million($247 million) due to a strong demand.

NET SALES BY APPLICATION
Years ended December 31

98

99

00

01

02

1998

1999

¥

$

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2002

¥ 45,068¥ 38,663¥ 44,8012002

140,000

Audio-Visual Equipment¥ 49,013¥ 46,207

120,000

Automotive Products

27,80827,59826,75825,90729,603

246,692

Information &Communication Equipment

18,033

16,39917,83014,051

16,240135,333

Home Appliances &Power Tools & Others

29,611

27,266

26,52926,451

25,688214,067

40,00020,000

Other*

187

75

48

57

25

208

Total

¥ 124,652¥ 117,545¥ 116,233¥ 105,129¥ 116,357$ 969,642

100,000
80,00060,0000$ 373,342*Other includes parts and equipment sales.

AUDIO-VISUAL EQUIPMENTAUTOMOTIVE PRODUCTS

HOME APPLIANCES &POWER TOOLS & OTHERSINFORMATION &COMMUNICATION EQUIPMENT

39% 25% 22% 14%

72002 Financial Review
MABUCHI MOTOR CO., LTD.

NET SALES BY GEOGRAPHIC AREA OF DESTINATION
Years ended December 31

Reviewing net sales by geographic area in 2002, net sales in

98

99

00

01

Net sales increased in all overseas markets except North andJapan decreased 4.7% to ¥11,943 million ($100 million) due toLatin America due to the upturn in the Asian economy.

the Japanese economic recession during the year despite

Net sales increased 2.8% in Europe, 21.8% in China and Hongcontinuing fiscal and financial policies designed to help recover

Kong, and 10.9% in Asia Pacific, while net sales decreased

the economy.

1.6% in North and Latin America, respectively.

1998

1999

¥ 20,634¥ 19,124

02

¥

$

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2002

¥ 16,429¥ 12,534¥ 11,943

2002

140,000Japan

120,000

North & Latin America

16,17014,843

13,945

12,83012,624105,200

Europe16,22814,731

13,951

14,767

15,187

126,559

China & Hong Kong

44,051

42,18845,262

41,64150,736422,800

40,000Asia Pacific

27,382

26,584

26,59823,30025,842

215,350

20,000

Other*

187

75

48

57

25

208

Total

¥ 124,652¥ 117,545¥ 116,233¥ 105,129¥ 116,357$ 969,642

100,000$ 99,525

80,00060,0000*Other includes parts and equipment sales.
CHINA & HONG KONG

ASIA PACIFICEUROPE

44% 22%13%

NORTH & LATIN
AMERICAJAPAN

11% 10%COSTS, EXPENSES AND NET INCOME
Cost of sales increased by 5.3%, to ¥69,735 million ($581

Other income (expenses) includes net other expense of ¥1,155

million). The cost of sales ratio improved 3.1 percentage points,

million ($9.6 million) in 2002 versus net other income of ¥1,416

to 59.9% from 63.0% in 2001, due mainly to decreases in raw

million in 2001. The change in 2002 was principally due tomaterials and overhead costs and reduced unit costs resulting

exchange losses of ¥1,717 million in 2002 and exchange gains offrom a production volume increase by 16.8% over 2001. Selling,¥4,047 million and loss on valuation of investment securities ingeneral and administrative expenses increased by 4.1% over the

2001.

previous year as a result of translation of the financial statements
Net income increased 10.7%, to ¥18,025 million ($150 million).
of the foreign subsidiaries using weaker yen rate to U.S. dollar
Our effective corporate income tax in 2002 was increased toand a reclassification of certain administrative expenses from
35.3% from 30.3% in 2001, due mainly to a decrease of foreign
manufacturing costs.
tax credit in 2002 over the prior year.
As a result of these factors, operating income increased
31.9%, to ¥29,123 million ($243 million) over the previous year.

8

2002 Financial Review

MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31

FOREIGN CURRENCY
As indicated in Note 9 “Segment Information” to consolidated financial statements, overseas sales accounted for approximately 90% ofconsolidated net sales in 2002, of which 93% was transacted by the U.S. dollar and U.S. dollar linked currencies.
In 2002, the average rate of the yen depreciated approximately 3.1% against the U.S. dollar, compared with 2001. The depreciation of
the yen against the foreign currencies resulted in increases of net sales of approximately ¥4,200 million ($35 million) and operating
income of ¥2,500 million ($21 million), respectively.
The Company uses foreign exchange forward contracts to hedge foreign exchange risks associated with accounts receivable andpayables denominated in foreign currencies (see Note 7 “Derivative Financial Instruments”).
FINANCIAL POSITION
Net working capital at December 31, 2001 and 2002
is summarized as follows (millions of yen):
Current assets

2001

2002

Increase(Decrease)¥ 132,144¥ 131,065¥ (1,079)

Current liabilities

9,465

11,462

1,997

Net working capital¥ 122,679¥ 119,603¥ (3,076)

14.0

11.4

Current ratio

The decrease in current assets at December 31, 2002 consisted mainly of a decrease of cash and cash equivalents by ¥3,366 million, an
increase of short-term investments by ¥6,163 million, and a decrease of inventories by ¥5,930 million. The decrease of cash and cash
equivalents was due to purchase of treasury stock of ¥23,800 million in June 2002 by tender offer.
Long-term liabilities increased by ¥326 million due mainly to an increase of deferred tax liability on undistributed earnings of foreignsubsidiaries.
Shareholders’ equity decreased by ¥17,545 million due primarily to the purchase of treasury stock mentioned above and a decrease offoreign currency translation adjustments by ¥7,880 million over the previous year. As a result, the shareholders’ equity ratio declined 1.3
percentage points, to 91.6% from 92.9% at the previous year-end.
CASH FLOW
The major items of cash flows for the years ended December 31, 2001
and 2002 are summarized below:¥

U.S. Dollars(thousands)

2001
Net income¥

16,281$Yen(millions)

2002

¥

18,0252002$ 150,208

Depreciation

6,600

6,337

52,808Additions to plant and equipment(5,145)(5,952)(49,600)

Change in short-term investments and investment securities, net(1,744)

2,292

19,100Cash dividends paid

(3,482)(3,083)(25,692)

Purchase of treasury stock(4)(23,896)(199,133)

Effect of exchange rate changes on cash and cash equivalents

5,162(6,029)(50,242)

Other, net

6,286

8,940

74,501(3,366)$ (28,050)

Net increase (decrease) in cash and cash equivalents¥

23,954¥

Net cash provided by operating activities increased ¥5,363 million from 2001, to ¥35,433 million ($295 million) due mainly to increases
in net income and accrued income taxes and a decrease in inventories resulting from the robust operating performance in 2002.
Net cash used in investing activities decreased ¥2,001 million from 2001, to ¥5,791 million ($48 million) which was attributable to adecrease in purchase of investment securities in connection with the purchase of treasury stock in 2002.
Net cash used in financing activities increased ¥23,943 million from 2001, to ¥26,979 million ($225 million) due to the purchase oftreasury stock of ¥23,800 million in June 2002 by tender offer.
The Company believes that its financial condition remains very strong. The present balance of liquid assets are indispensable for theCompany to further strengthen its existing core business and create the opportunities for new business. This should absolutely help
appreciate our shareholder value.

92002 Five-Year Financial Summary
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31

1998

1999

Operating Results
Net sales

¥

$

Yen

U.S. Dollars(millions)(thousands)

2000

2001

2002

2002

¥ 124,652¥ 117,545¥ 116,233¥ 105,129¥ 116,357

Operating income

28,30028,481

28,62422,07929,123$

969,642
242,692

Income before income taxes

28,48728,49833,64423,49527,968233,067

17,016

18,793

23,472

16,281

18,025150,208¥ 362.00¥ 399.20¥ 498.61¥ 345.85

45.00

70.00

75.00

67.00

and minority interests
Net income

Per share of common stock:
Net income¥

392.13$

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

70.00

0.58

(Yen and U.S. Dollars)

Depreciation and amortization

¥

7,314

¥

7,234

¥

6,425

¥

6,600

¥

6,337

$

52,808

Capital expenditures

6,832

4,051

4,627

5,132

6,278

52,317

R&D expenses

3,780

3,752

2,832

3,422

3,536

29,467

Shareholders' equity¥ 187,841¥ 204,403¥ 218,472¥ 241,860¥ 224,315$ 1,869,292

Total assets¥ 207,682¥ 218,083¥ 242,626¥ 260,329¥ 244,988$ 2,041,567

47,07647,07647,07647,07645,96755,53058,27960,51145,20350,762

Balance Sheet

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

1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120=U.S. $1, the approximate exchange rateon December 31, 2002.
2. Net income per share figures are based on the weighted average number of shares of common stock outstanding during each fiscal
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.

102002 Consolidated Balance Sheets
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • DECEMBER 31, 2001 and 2002ASSETS¥

U.S. Dollars(thousands)

2001
Current Assets:
Cash and cash equivalents¥

84,224$Yen(millions)

2002

¥

80,858

2002$

673,817

Short-term investments

5,990

12,153

101,275

Trade notes and accounts receivable

13,08813,811

115,092

Less-Allowance for doubtful receivables

(425)

(351)

(2,925)Inventories

23,532

17,602

146,683

Deferred income taxes-current

1,691

1,526

12,717

Other current assets

4,044

5,466

45,549Total current assets

132,144

131,065

1,092,208

Land

4,774

6,147

51,225

Buildings

41,252

37,073308,942

Machinery and equipment

64,83959,273493,942

Construction in progress

1,345

1,299

10,824112,210

103,792

864,933(73,203)(68,522)(571,016)

39,00735,270293,91785,87975,049625,408

Long-term loans receivable

970

710

5,917

Deferred income taxes-long-term

138

136

1,133

Other investments and other assets

2,191

2,758

22,984

89,17878,653

655,442¥ 260,329¥ 244,988$ 2,041,567

Property, Plant and Equipment:Less-Accumulated depreciation

Investments and Other assets:
Investment securities

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

11
LIABILITIES ANDSHAREHOLDERS’ EQUITY¥

U.S. Dollars(thousands)

2001
Current Liabilities:
Trade notes and accounts payable

¥

3,462

$

Yen

(millions)

2002

¥

4,084

2002

$

34,033

Accrued expenses

3,117

2,788

23,233

Accrued income taxes

2,246

4,177

34,808Deferred income taxes-current

3

0

0

Other current liabilities

637

413

3,443

Total current liabilities

9,465

11,462

95,517

1,982

1,756

14,633Long-term Liabilities:
Allowance for severance and pension benefits
Retirement allowances for directors and statutory auditors

419

452

3,767

Deferred income taxes-long-term

4,888

5,400

45,000

22

29

242

7,311

7,637

63,642

1,693

1,574

13,116

Other long-term liabilities

Minority Interests

Contingent Liabilities
Shareholders'Equity:
Common stock, without par value :Authorized: 100,000,000 shares:
20,70520,705

172,542

Additional paid-in capital

Issued: 47,075,881 shares in 2001 and 2002

20,42020,420170,167

Retained earnings

189,972

204,805

1,706,708

(168)

(770)

(6,417)

10,936

3,056

25,467(5)(23,901)(199,175)

241,860

224,315

1,869,292¥ 260,329¥ 244,988$ 2,041,567

Unrealized holding loss on securities
Foreign currency translation adjustments
Treasury stock, at cost; 479 shares in 2001 and 2,009,096 shares in 2002
Total shareholders'equity

12

2002 Consolidated Statements of Income
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2001 and 2002

¥

$

Yen

U.S. Dollars(millions)(thousands)

2001

2002

¥ 105,129¥ 116,357

Cost of Sales

66,247

69,735581,125

Gross profit

38,882

46,622

388,517

Selling,General and Administrative Expenses

16,803

17,499145,825

Operating income

22,07929,123242,692

3,368

2,266

18,883

(1)

(1)

(8)

Exchange gains(losses) on foreign currency transactions

4,047(1,717)(14,308)

Loss on valuation of investment securities(4,113)(624)(5,200)

Other, net(1,885)(1,079)(8,992)

1,416(1,155)(9,625)23,49527,968233,067

Current

8,396

8,758

72,983

Deferred(1,288)

1,113

9,275

7,108

9,871

82,258

(106)

(72)

(601)

Net Sales

2002$

969,642

Other Income (Expenses):
Interest and dividend income
Interest expense

Income before Income Taxes and Minority Interests

Income Taxes:

Minority Interests
Net Income¥

16,281¥

18,025¥Yen

2001
Per Share of Common Stock:
Net income
Cash dividends applicable to earnings of the year¥

345.85
67.00$$

U.S. Dollars

2002

¥

150,208

392.13
70.00

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

2002

$

3.27
0.58

13

2002 Consolidated Statements of Shareholders’ Equity
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2001 and 2002

¥ $Number of Shares(thousands)

Yen

U.S. Dollars(millions)(thousands)

2001

2002

2001

Beginning balance

47,07647,076¥

20,705¥20,705$

172,542Ending balance

47,07647,076¥

20,705¥20,705$

172,542

Beginning balance¥

20,420¥20,420$170,167

Ending balance¥

20,420¥20,420$170,167

Common Stock:

2002

2002

Additional Paid-in Capital:

Retained Earnings:
Beginning balance¥ 177,348¥ 189,972$ 1,583,100

Net income

16,281

18,025150,208

Cash dividends(3,484)(3,084)(25,700)

Bonuses to directors and statutory auditors

(173)

(108)

(900)

¥ 189,972¥ 204,805$ 1,706,708

¥

¥

$

Ending balance
Unrealized Holding Loss on Securities:
Beginning balance
Net change during the year
Ending balance

(168)

(168)
(602)

(1,400)(5,017)

¥

(168)

¥

(770)

$

(6,417)¥-¥

10,936$

91,134Foreign Currency Translation Adjustments:
Beginning balance
Net change during the year
Ending balance

10,936(7,880)(65,667)¥

10,936

¥

3,056

$

25,467

¥

(1)

¥

(5)

$

(42)

Treasury Stock:
Beginning balance
Net change during the year
Ending balance¥(4)(23,896)(199,133)(5)¥ (23,901)$ (199,175)

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

14

2002 Consolidated Statements of Cash Flows
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2001 and 2002¥

U.S. Dollars(thousands)

2001
Cash Flows from Operating Activities:
Net income¥

16,281$Yen(millions)

2002

¥

18,025

2002$

150,208

Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization

6,600

6,337

52,808Provision for allowance for severance and

639

(148)

(1,233)

Provision for income taxes-deferred(1,288)

1,114

9,283

Losses on valuation of investment securities

4,113

624

5,200

(Increase) Decrease in trade notes and accounts receivables

3,259(1,419)(11,825)

Decrease in inventories

5,849

7,554

62,950

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

882

7,350

Increase (Decrease) in accrued income taxes(3,461)

1,830

15,250

Other, net

(357)

634

5,284

30,07035,433295,275(5,145)(5,952)(49,600)

pension benefits, net payments

Net cash provided by operating activities
Cash Flows from Investing Activities:
Additions to plant and equipment
Change in short-term investments

10,054

4,294

35,783Purchase of investment securities(40,532)(36,085)(300,708)

Proceeds from sale of investment securities

28,73434,083

284,025

Other, net(903)(2,131)(17,758)

Net cash used in investing activities(7,792)(5,791)(48,258)(3,482)(3,083)(25,692)(4)(23,896)(199,133)

Net cash used in financing activities(3,486)(26,979)(224,825)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

5,162(6,029)(50,242)Net Increase (Decrease) in Cash and Cash Equivalents

23,954(3,366)(28,050)

Cash and Cash Equivalents at Beginning of Year

60,27084,224

701,867

Cash Flows from Financing Activities:
Cash dividends paid
Purchase of treasury stock

Cash and Cash Equivalents at End of Year¥

84,224¥80,858$673,817

¥

1

¥

0

$

0

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

11,881

6,927

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

57,725

2002 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & 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 arecompiled from the consolidated financial statements prepared by the Company as required by the Securities and Exchange Law of Japanand are prepared on the basis of 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 havebeen made to present the accompanying 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 bytranslating yen amounts at the rate of ¥120 to U.S.$1, which was the approximate exchange rate prevailing on December 31, 2002.
Certain reclassifications have been made to the accompanying consolidated financial statements for 2001 to conform to the 2002
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
Effective January 1, 2001, the Company and its domestic subsidiary adopted the revised accounting standard for foreign currencytranslation.
Under the new method, all monetary assets and liabilities denominated in foreign currencies are translated into yen at the rate ofexchange in effect at the balance sheet date. Exchange differences resulting from these translations are included in income. Foreignsubsidiaries’ assets and liabilities are translated into yen at the rates of exchange in effect at the balance sheet date. The accounts ofshareholders’ equity are translated at historical rates. Revenues and expenses are translated at the average rates of exchange for theyear. The resulting foreign currency translation adjustments are shown 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 ofchanges in interest rates.
(e) Securities
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 “availablefor-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 stated at fair value withchanges in unrealized holding gain or loss, net of the applicable income taxes, and are reported in a separate component of shareholders’ equity. However, when the fair value of available-for-sale securities declines significantly and is considered to be irrecoverable to thebook value, such unrealized holding losses are charged 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, and short-term investments classified as current assets decreased by ¥32,538 million and investment securities increased by the same amount as of January 1, 2001.
(f) Inventories
Finished goods, work in process and raw materials are principally stated at average cost. Marketable raw materials such as copper, gold,
silver and palladium are stated at the lower of average cost or market.

15

2002 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES(g) Property, Plant and Equipment and Depreciation
Property, plant and equipment is stated at cost. Depreciation is computed principally by the declining-balance method for the Company
and its domestic subsidiary and principally 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) Leases
Noncancelable leases of the Company and its consolidated subsidiaries are accounted for as operating leases (whether such leases areclassified as operating or finance leases) except that lease agreements which stipulate the transfer of ownership of the leased assets tothe lessee are accounted for as finance leases.
(i) Research and development expenses
Expenditures relating to research and development activities are charged to income as incurred and amounted to ¥3,422 million and¥3,536 million ($29,467 thousand) for the years ended December 31, 2001 and 2002, respectively.
(j) Income taxes
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases ofassets and liabilities and their reported amounts using presently enacted tax rates. Provision for Japanese income taxes on undistributed
earnings of foreign subsidiaries is made only on those amounts in excess of the funds considered to be permanently reinvested.
(k) 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 costs of the plan.
Effective January 1, 2001, the Company adopted a new accounting standard for employees’ retirement benefit. In accordance with the
new standard, allowances for severance and retirement benefits are provided based on the amount of retirement benefit obligation
reduced by the fair value of 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 December 31, 2001 by ¥933 million.
The excess of the retirement benefit obligation over the fair value of plan assets as of January 1, 2001 amounted to ¥762 million andwas recognized as “net transition obligation”, and was fully amortized for the year ended December 31, 2001.
Actuarial gain and loss are amortized in the year following the year in which the gain or loss recognized primarily by the straight-line
method over the period of mainly 10 years which are shorter than the average remaining years of service of the employees.
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 amount required under the plan.
(l) Derivative and hedging activities
Effective January 1, 2001, the Company adopted a new accounting standard for financial instruments. Under the new standard, if aforward foreign exchange 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 arerecognized.

16

17
2. INVENTORIES

2001

2002

Finished goods¥ 14,916¥ 10,198$

Work in process

2,539

1,706

14,217

Raw materials

6,077

5,698

47,483¥ 23,532¥ 17,602$ 146,683¥

Inventories as of December 31, 2001 and 2002 were as follows:

Yen

U.S. Dollars(millions)(thousands)

2002

$

84,983

3. SECURITIESThe cost, net of unrealized gains and losses, and fair value for securities classified as

Cost

¥

¥ 24,936¥ 24,311

Yenavailable-for-sale and held-to-maturity as of December 31, 2001 and 2002 were as follows:(millions)

2001

Fair Value

Gains(losses)Available-for-sale:
Debt securities

¥

(625)

Equity securities

3,172

3,877

705

Other

39,08338,757(326)¥ 67,191¥ 66,945¥(246)¥ 24,750¥ 24,159¥(591)

Held-to-maturity:
Debt securities

Cost

¥

¥ 22,653¥ 22,461

Cost$$ 188,775$ 187,175

Yen

U.S. Dollars(millions)(thousands)

2002

2002

Fair Value

Gains(losses)

Fair Value

Gains(losses)Available-for-sale:
Debt securities

¥

(192)

$

(1,600)Equity securities

3,056

3,242

186

25,46727,017

1,550

Other

23,39122,064(1,327)

194,925

183,866(11,059)¥ 49,100¥ 47,767¥ (1,333)$ 409,167$ 398,058$ (11,109)¥ 38,260¥ 37,838¥$ 318,833$ 315,316$

Held-to-maturity:
Debt securities

The securities for which fair values were not available
as of December 31, 2001 and 2002 were as follows:

CP

(422)

¥

$

Yen

U.S. Dollars(millions)(thousands)

2001

2002

¥

¥ 1,000-(3,517)2002$ 8,334

Equity securities

70

70

583

Other

104

105

875

174

¥ 1,175$ 9,792¥

18

2002 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIESThe contractual maturities for securities classified as available-for-sale¥Yenand held-to-maturity at December 31, 2001 and 2002 were as follows:(millions)

2001

Withinone year
Government bonds¥

Corporate bonds

800

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

-

¥

-

¥

-

¥ 11,153

CP

800

22,081

14,991

6,000

48,262-

10,254

5,259-

15,513¥ 5,990¥ 32,335¥ 20,250¥ 6,000¥ 64,575

Total$¥ 60,721$ 506,008¥
Yen

U.S. Dollars(millions)(thousands)

2002

Corporate bonds

¥

5,190

Other

Withinone year

Total

2002

Over one year
Over five years Over ten years
through five years through ten years¥ 22,870¥ 7,112¥ 19,586

Total

1,000

-

-

-

1,000

8,333

-

1,815

7,197

118

9,130

76,084¥ 12,153¥ 24,685¥ 14,309¥ 19,704¥ 70,851$ 590,425

Other

4. RETIREMENT PLANS
Effective January 1, 2001, the Company and certain subsidiaries adopted a new accounting standard for employees’ retirement benefit
plans (See note 1(k)).
The table below sets forth the plan’s funded status and amounts

2001

2002

¥ (6,940)¥ (7,438)$

Plan assets of fair value

4,958

5,416

45,133

Unfunded retirement benefit obligation(1,982)(2,022)(16,850)

0

267

2,225

1,982

¥ 1,755¥

recognized in the balance sheets at December 31, 2001 and 2002.

Retirement benefit obligation

Unrecognized actuarial gain or loss
Allowance for severance and pension benefits¥

The components of net periodic benefit cost for the years ended

Yen

U.S. Dollars(millions)(thousands)

2002$ (61,983)$

14,625615$

Interest cost

136

141

1,175

Expected return on plan assets

(38)

(41)

(342)

Amortization of net transition obligation

762

-

-

Amortization of actuarial gain or loss

-

(0)

(0)

715

$ 5,958

December 31, 2001 and 2002 were as follows:¥
Yen

U.S. Dollars(millions)(thousands)

2001
Service cost

Net periodic pension cost¥585

¥ 1,445

2002

¥

¥

2002

$ 5,125

19
The assumptions used in accounting for the above plans were as follows:

2001

2002

Discount rate

2.5%

2.0%

Expected rate of return on plan assets

1.0%

1.0%

5. INCOME TAXESThe Company is subject to several taxes based on income with a normal tax rate aggregating approximately 41.7% for the years ended
December 31, 2001 and 2002. 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 pre-tax income for the years ended December 31,2001 and 2002:

2001

2002

Statutory income tax rate

41.7%

41.7%

International income taxed at varying rates(17.3)(20.0)

Effect on elimination of dividend income fromforeign subsidiaries for consolidation purposes

16.2

11.9

(12.3)(2.9)

Other, net

2.0

4.6

Effective income tax rate

30.3%

35.3%

Foreign and R & D tax credit utilization

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 and 2002 were as follows:

¥

$

Yen

U.S. Dollars(millions)(thousands)

2001

2002

1,560

¥ 1,533

Evaluation losses on assets

2,114

2,821

23,508Depreciation

138

151

1,258

Accrued enterprise taxes

421

287

2,392

Accrued pension benefits and retirement allowances

833

719

5,992

Other

143

117

975

¥

5,209

¥ 5,628$

46,900¥8,091¥ 9,207$76,725

180

159

¥

8,271

¥ 9,366$

78,050¥1,829¥ 1,662$

13,850

4,891

5,400

Deferred tax assets:
Unrealized profits on inventories and fixed assets

Total

¥

2002

$

12,775

Deferred tax liabilities:
Tax on undistributed foreign earnings
Other
Total

1,325

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

45,0002002 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES

6. SHAREHOLDERS’ EQUITY AND PER SHARE DATA
The amended Japanese Commercial Code (the “Code”) enacted effective from October 1, 2001 provides that an amount equivalent to atleast 10% of cash dividends paid and other cash outlays, resulting from appropriations of retained earning with respect to each annual
period, be appropriated to the legal reserve until total of such reserve and additional paid-in capital equals 25% of the stated capital. As
of December 31, 2002, the total of the legal reserve of ¥3,812 million ($31,767 thousand) which is included in retained earnings at
December 31, 2002, 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 capital are not available for cash dividends but may be used to reduce acapital 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.
In addition, the Code eliminates the stated par value of the Company’s outstanding shares, which resulted in all outstanding shares
having no par value as of October 1, 2001.
The Code also provides that all share issuances after September 30, 2001 will be of shares with no par value. Prior to the date on
which the Amendment came into effect, the Company’s shares had a par value of ¥50.
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 ofincome reflect dividends applicable to the respective fiscal year. Net income per share is computed based on the weighted average
number of shares of common stock outstanding.
On September 24, 2002, semi-annual interim cash dividends (¥35 or $0.29 per share) of ¥1,578 million ($13,150 thousand) were paid
to shareholders of record at June 30, 2002. On March 28, 2003, the shareholders approved the declaration of cash dividends (¥35 or $0.29
per share) totaling ¥1,577 million ($13,142 thousand) and payments of bonuses to directors and statutory auditors totaling ¥149 million($1,242 thousand).

7. DERIVATIVE FINANCIAL INSTRUMENTS
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 associatedwith 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, 2001 were ¥81 million. The
estimated fair values at December 31, 2001 were ¥90 million. There were no outstanding forward precious metal contracts at December
31, 2002.

8. CONTINGENT LIABILITIESAs of December 31, 2002, there were no significant reportable contingent liabilities.

20

21
9. SEGMENT INFORMATIONThe 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

Net sales:

¥

$

Yen

U.S. Dollars(millions)(thousands)

2001

2002

2002

Japan
Outside customers¥ 23,772¥ 24,857Intersegment

43,72150,018$416,817

207,141

Total

67,49374,875623,958

Outside customers

54,12264,379536,492

Intersegment

42,98347,875398,958

Total

97,105112,254935,450

12,467

11,97199,7592

1

812,46911,972

99,767

14,76815,149126,242

0

10

83

Total

14,76815,159126,325

Corporate and elimination(86,706)(97,903)(815,858)¥ 105,129¥ 116,357

$

Japan

¥ 10,081¥ 12,902$

Asia

10,474

15,226

126,883

U.S.A.

560

467

3,892

Europe

538

259

2,158

Corporate and elimination

426

269

2,242

¥ 22,079¥ 29,123$

242,692Japan¥ 64,003¥ 68,639$

571,992

Asia

99,930100,270

835,584

U.S.A.

6,074

5,349

44,575

Asia

U.S.A.
Outside customers
Intersegment
Total
EuropeOutside customers
Intersegment

Consolidated

969,642

Operating Income:Consolidated

107,517

Assets:Europe

5,942

5,725

47,708

Corporate and elimination

84,38065,005

541,708¥ 260,329¥ 244,988$ 2,041,567

Consolidated

The amount of corporate assets included in “Corporate and elimination” is ¥135,276 million in 2001 and ¥115,963 million ($966,358
thousand) in 2002, which comprises principally cash, short-term investments and investment securities.

22

2002 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES

Overseas Sales

¥

$

Yen

U.S. Dollars(millions)(thousands)

2001

2002

U.S.A.

¥ 12,830¥ 12,624

Europe14,76815,187

126,558

Asia and Other

64,97576,600638,334

Overseas Sales

Total

2002

$ 105,200¥ 92,573¥ 104,411$ 870,092

Net Sales

105,129

116,357

969,642% of Overseas Sales to Net Sales

88.1%

89.7%

89.7%

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

23

2002 Independent Auditors’ Report

To 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, 2002 and 2001, 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 considered necessary in the circumstances.

In our opinion, the consolidated financial statements referred to above, expressed in yen, present fairly the financial
position of Mabuchi Motor Co., Ltd. and consolidated subsidiaries at December 31, 2002 and 2001, and the results of theiroperations 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),(k)and(l) to the consolidated financial statements, Mabuchi Motor Co., Ltd. and consolidated
subsidiaries adopted new accounting standards for transactions denominated in foreign currencies, financial instruments
and employees’ 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, 2002 are presented solely for the 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 theconsolidated financial statements.

Shin Nihon & Co.
Tokyo, Japan
March 28, 2003

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

24

2002 Board of Directors / Corporate Directory
BOARD OF DIRECTORSAs of March 28, 2003
CHAIRMAN
Takaichi Mabuchi
PRESIDENT
Shinji Kamei

DIRECTORSSun Zuei Che
Seiya Nakanishi
Yasuo Uehara
Shunroku Nishimura
Yoshinori Sugimoto

STATUTORY AUDITORS
Kiyoshi Iwakura
Chiaki Kajiwara
Ichiro Ando
Yuzaburo Nagase

MANAGING DIRECTOR
Nobuyo Habuchi

CORPORATE DIRECTORYCONSOLIDATED SUBSIDIARIESAs of December 31, 2002
MABUCHI INDUSTRY CO., LTD.
19 Sam Chuk St., San Po Kong
Kowloon, Hong Kong
Tel: 852-2328-5575
Fax: 852-2352-5266
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

DONGGUAN MABUCHI MOTOR
EQUIPMENT CO., LTD.
No.16 Tianbao Rd., Dongzong Rd.
Dongguan City, Guangdong Province
China
Tel: 86-769-2256985
Fax: 86-769-2256984

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

MABUCHI MOTOR (SINGAPORE) PTE. LTD.
111 North Bridge Rd., #12-05
Peninsula Plaza, Singapore 179098
Tel: 65-6339-9991
Fax: 65-6339-9091

MABUCHI PRECISION INDUSTRIES LTD.
1087 Hinata-cho,Tatebayashi-shi
Gunma-ken, 374-0076, Japan
Tel: 81-276-72-1941
Fax: 81-276-72-1943
MABUCHI PRECISION INDUSTRIESHONG KONG LTD.
19 Sam Chuk St., San Po Kong
Kowloon, Hong Kong
Tel: 852-2328-5575
Fax: 852-2352-1008

MABUCHI MOTOR (EUROPE) GmbH
Hahnstrasse 38, 60528
Frankfurt/Main, F.R.Germany
Tel: 49-69-6690220
Fax: 49-69-66902229
NON-CONSOLIDATED SUBSIDIARIESAs of December 31, 2002
MABUCHI REAL ESTATE CO., LTD.
TAIWAN MABUCHI (HONG KONG) CO., LTD.
MABUCHI MOTOR (SHANGHAI) CO., LTD.

25

2002 Investor Information
INVESTOR INFORMATIONAs of March 31, 2003
Corporate Headquarters

Ordinary General Meeting ofTransfer Agent of Common Shares

MABUCHI MOTOR CO., LTD.

Shareholders

Handling Office

430 Matsuhidai, Matsudo-shi

The Ordinary General Meeting of

UFJ Trust Bank Limited

Chiba-ken 270-2280, Japan

Shareholders will be held at the end of

Corporate Agency Department

Tel: 81-47-384-1111

March in Matsudo.

10-11, Higashi-suna 7-chome, Koto-ku
Tokyo 137-8081, Japan

Fax: 81-47-389-5299
http://www.mabuchi-motor.co.jp

Independent Accountants

Tel: 81-3-5683-5111

Shin Nihon & Co. (Member Firm of Ernst& Young) Tokyo, Japan

Japanese Stock Exchange Listing
Tokyo Stock Exchange

CHIBA-KEN,
TAIWANJAPAN

KOWLOON,

HONG

KAOHSIUNG,TAIWANDALIANTECHNICALDEVELOPMENTPROVINCE, CHINA
MALAYSIA
JAPAN

CHINA

KONG

SHANGHAI,KOWLOON,

ZONE,

HONG

T R O Y, M I C H I G A N U . S . A .

TAIWANECONOMICDONGNAI PROVINCE, VIETNAMGERMANYHONG

TAIPEI,

CHINA

KONG

TAIPEI,PERAK,GUNMA-KEN,

GUANGDONG
SINGAPORE

PROVINCE

F R A N K F U R T,

CHIBA-KEN,
TAIWANAND

LIAONING

JIANGSU PROVINCE, CHINA

KOWLOON,

CHINA

ZONE,

KONG

JAPAN

KAOHSIUNG,DALIAN ECONOMIC AND TECHNICAL DEVELOPMENT
CHINA

LIAONINGPROVINCE, CHINAVIETNAMPERAK, MALAYSIAGUNMA-KEN,

GUANGDONG PROVINCESINGAPORE

PROVINCE,CHINA

JIANGSUDONGNAI PROVINCE,JAPAN

KOWLOON,

HONG

KONG

CHINA

T R O Y, M I C H I G A N U . S . A .

FRANKFURTCORPOR ATE HEADQUARTERS
430 Matsuhidai, Matsudo-shi
Chiba-ken 270-2280, Japan
Tel: 81-47-384-1111
Fax: 81-47-389-5299
http://www.mabuchi-motor.co.jp%