Annual Report

2013
Year ended December 31, 2013

Small, Lightweight Motors
Spearheading the Industry

Power Window Lifter
GD-558RC/LCProfile

Small DirectCurrent Electric Motors
Market Research
We engage in market research to rapidly, sufficiently
and appropriately ascertain market and technology
trends around the world and the motor functions that
customers require. We provide our customers with
low-cost, high-quality products and excellent delivery
response times, while analyzing information we collecton diverse customer needs to discover commonalities
that permit standardization.

Research and Development
Continuing to respond to a variety of needs with regard
to motors, primarily the ability to be highly efficient andlow in noise, Mabuchi Motor has always been leading
the market in small motors.
From basic research, product development, productdesign, and production technology to motor-applied
technology in these small machine components,
Mabuchi has collected a wide range of technicalcapabilities over many years.

Small, Lightweight
Motors Spearheading
the Industry
1

MABUCHI MOTOR CO., LTD.

Production
Mabuchi has established production bases across Asia withthe aims of developing a competitive motor production systemand providing employment opportunities in host countries.
Furthermore, we strive to combine high quality and low cost in
our production process by seeking an optimal balance between
people and machines.

Quality Assurance
Small motors from Mabuchi play an important role in manydifferent settings in everyday life, mainly in the automotive
products industry. To enable people to use our motors
with confidence even in demanding environments, we
conduct rigorous quality testing of every aspect of productperformance, including the material quality and processing
accuracy of parts, noise, change in temperature and humidity,
and vibration.

Ever since its founding, Mabuchi Motor Co., Ltd. has been a specialist manufacturer of small motors that deliverconsistently high quality and efficiency at low prices in line with our basic policy “Bringing better and more reasonably
priced goods to the market.” Small motors from Mabuchi contribute to convenient, comfortable living for people the world
over as functional components in a wide variety of applications in many industries, including automotive products, audio
and visual equipment, optical and precision instruments, home appliances, power tools, toys, and hobbies.
The Mabuchi Group is the world’s leading producer of small motors. Our annual production volume of approximately
1,461 million units (2013 results) is testimony to the excellent reputation and trust we have built with our customers
and a source of great pride for us. In the coming years, we will continue to aspire to create new value through productdevelopment adaptable to market needs, and a flexible supply system.

Annual Report 20132

Table of Contents

Our Business1

ProfilePresident’s Message
4

To Our Shareholders

How We’re Doing
9	Segment Information by Motor Application
11	Research and Development Activities

Activities for Sustainable Management
12	Mabuchi’s Management Vision
13 Corporate Governance15	Board of Directors, Audit & Supervisory Board Members,
and Executive Officers
16 Corporate Social Responsibility

Financial Section
Forward-Looking Statements
This annual report contains forward-looking
statements about Mabuchi’s future plans, beliefs,
strategies, and performance that are not historicalfacts. These statements are based on current
expectations, forecasts, estimates, and projections
about the industry in which Mabuchi operates andthe beliefs and assumptions made by its
management. As such expectations, forecasts,
estimates, and projections are subject to a numberof risks, uncertainties, and assumptions, they may
cause actual results to differ materially from thoseprojected. Mabuchi therefore cautions readers not
to place undue reliance on forward-looking
statements. Furthermore, the Company undertakes
no obligation to update any forward-looking
statements as a result of new information, future
events, or other developments.
Risks, uncertainties, and assumptions mentioned
above include, but are not limited to, exchange rates
and economic conditions; the outcome of pending
and future litigation; commodity prices; and thecontinuing status of financing, financial instruments,and financial resources.

3

MABUCHI MOTOR CO., LTD.

17	Financial Summary
19	Management’s Discussion and Analysis
21 Business and Other Risks
23 Consolidated Balance Sheets
25 Consolidated Statements of Income
25 Consolidated Statements of Comprehensive Income
26	Consolidated Statements of Changes in Net Assets
27	Consolidated Statements of Cash Flows28	Notes to Consolidated Financial Statements
41 Independent Auditor’s ReportCompany Information
42
43

Investor Information
Corporate DataTo Our Shareholders
Underpinned by a recovering global economy, Mabuchi will advance its strategic measures toleverage its strength in the automotive industry and cultivate new customers.

Hiroo Okoshi
Representative Director President and CEO

Overview of Sales during Fiscal 2013

Under these business conditions, the Mabuchi Group

During the fiscal year ended December 31, 2013, the world

automotive products business and new activities in theeconomy began to gradually recover in the second half. The

consumer and industrial products businesses, sales expan-

U.S. economy remained strong due to solid consumer

sion in China, reorganization of production bases, andspending and capital investment. Although economic stag-

manufacturing process innovation.

addressed several issues: continued strengthening of thenation continued in Europe, signs of recovery began toappear in key countries. The economies of emerging countries showed only gradual growth, with domestic demandvarying from region to region. In Japan, the historically
unprecedented yen appreciation was corrected, corporate
performance showed improvement, and gradual economic
recovery continued.
In the markets in which the Mabuchi Group operates, in the
Automotive Products Market, demand in the U.S. andemerging countries was strong, while in Europe demand
appeared to have bottomed out in some areas. In the Home
Appliances, Power Tools & Toys Market and the Precision &Office Equipment Market, the U.S. market, where housingrelated spending and consumer spending were strong,
acted as a locomotive for demand, and demand in emerging countries continued as well. On the other hand, the
Audio & Visual Equipment Market continued to contract.

Financial Highlights
Thousands of
U.S. dollars

Rate ofchange

2013

2013

YoY

¥108,401$1,032,390+27.2%

9,335

88,904+84.8%

10,519100,180+64.7%

227,253

2,164,314+15.5%

208,791

1,988,485+15.1%

Millions of yen

2012
Net sales ¥ 85,254
Operating
5,052
incomeNet
6,385
incomeTotal
196,702
assetsNet assets 181,372

Annual Report 20134

In fiscal 2013, the Mabuchi Group actively implemented measuresto achieve further progress with sales and market share expansion,
realizing results that will lead to future business growth.

Specifically, the Group actively implemented measures to

Operating income for the year was ¥9,335 million (anachieve further progress with sales and market share expan-

84.8% increase on a year-on-year basis) due to improve-sion, and high quality and high efficiency, and achieved

ment in the gross profit ratio as a result of stabilization of

results that will lead to future business growth. These mea-

the steep rise in materials costs, a trend toward improve-sures included 1) expansion of the customer base for new

ment in the product mix, and further yen depreciation

motors for power window lifters; 2) development andcoupled with improvement in the selling, general andstrengthening of sales of new medium-size automotive

administrative expenses ratio accompanying the net sales

motors, such as products that do not use neodymium; 3)

increase. By geographical segment, the Group posted

full-scale entry into the commercial office equipment sector;

operating income of ¥1,490 million in Japan, ¥7,535 million4) building of an organizational structure for developingin Asia, ¥328 million in North America, and ¥536 million in

new applications and commencement of activities; 5)Europe, as well as an operating loss of ¥555 million onstrengthening of the business in China by means of a locallyeliminations of intersegment transactions.

self-contained business unit structure; 6) expansion ofhigh-end product production capacity at the coastal pro-

Income before income taxes was ¥15,015 million (a 78.2%

duction bases in China; 7) expansion of automotive motor

increase on a year-on-year basis) as a result of improvement

production capacity at the two production sites in Vietnam;in the balance of extraordinary items due to the non-recur-

and 8) laborsaving in production processes and man-hour

rence of restructuring expenses and loss on sales of invest-

reduction through expanded introduction of facilities toment securities recorded in the previous year, despite an

rationalize production.

impairment loss on fixed assets in connection with lower
profits at some consolidated subsidiaries as a result of

As a result, consolidated net sales for the period were

contraction of the DVD player market. Net income was¥108,401 million (a 27.2% increase on a year-on-year basis).

¥10,519 million (a 64.7% increase on a year-on-year basis),

Motors sales, which account for the majority of consolidat-

despite a slight increase in the consolidated effective tax

ed net sales, were ¥108,340 million (a 27.3% increase on arate due to the impact of an increase in foreign exchange

year-on-year basis). By geographical segment, sales in Japangains at the parent company, which carries a comparativelyrose 2.8% to ¥10,461 million; sales in Asia climbed 28.0%high tax burden among its Group companies.

to ¥66,750 million; sales in North America grew 31.7% to¥11,475 million; and sales in Europe jumped 38.7% to¥19,713 million.

5

MABUCHI MOTOR CO., LTD.

on further expansion of sales of motors for these applica-	Implementation of Growth and Cost
Strategies in Preparation for New
Breakthroughs

tions and aim to expand adoptions to new related applications. We will also undertake cost reduction and profitability
improvement by boosting sales and production quantities

In fiscal 2014, Mabuchi will focus on the following threeand by optimizing production base location.

strategies for the establishment of new growth axes andcost optimization aligned with the business environment.

Next, in the consumer and industrial product sector, while
making the small brush motor business the linchpin, Mabuchi

Acceleration of Growth in the Automotive
Products Business and Development of New
Applications in the Consumer and Industrial
Products Businessis reinforcing initiatives for medium-size and large brushless

In the Automotive Products Business, the Mabuchi Group

printers (MFPs), a market sector Mabuchi has already entered,will work to expand sales of two new motors for power

we will seek sales expansion into related applications. Largewindow lifters for which development has been completed:brushless motors are products developed for vehicles,

a medium-torque and a high-torque product. We will work

including electrically assisted bicycles, and full-scale mass

to increase the number of models equipped with theseproduction of these motors for such application has alreadyproducts by stepping up sales activities. For the medium-

begun. It is possible to apply these motors in other wide-

torque product, we will target a Japanese automaker that

ranging fields, such as assistive equipment, gardening

has already decided to adopt the product. For the high-equipment, and industrial equipment, and we will work totorque product, we will target a North American automaker

open up new applications and win orders for these motors.

motors to uncover latent needs. For medium-size brushless
motors, in addition to increasing orders and opening up
new customers for motors for copiers and multifunction

for which Mabuchi became an authorized supplier in theboard, we will aim to win orders by focusing on acquiring

Cost Reduction through Manufacturing
Innovation

new customers in Japan, North America, and Europe. In the

In order to prevail in global competition, the Mabuchi Group

Chinese market, we will maintain our top-level market sharewill continue to undertake development of a manufacturing

by working to increase the number of automobile models

base that cannot be easily imitated by competitors.

previous year. Furthermore, using these motors as a spring-equipped with Mabuchi products.
During the past three years, in response to sharp increases
Applications for medium-size automotive motors such as

in labor costs accompanying economic development in

power seats, parking brakes, and engine air intake andcountries where production bases are located, the Mabuchi

exhaust constitute a market sector in which an increase inGroup has engaged in laborsaving activities and achieved a

installation rates can be expected. By completing prepara-target of laborsaving equivalent to 30% of direct employees

tion of a line of new products meant to become standard

from the fiscal 2010 level. In the coming three years as well,

products for each of these applications, Mabuchi will focus

we aim to achieve further laborsaving exceeding 30% by

Power Window Lifter Motor Sales Results and Forecast

Mid-sized Automotive Motor Sales Results and Forecast(Billion yen)

20

Sales amount
Sales quantity (2010=100%)(%)(Billion yen)

200

15

15

150

10

100

5

50

0

2010

2011

2012

2013

2014
Plan

0

Sales amount
Sales quantity (2010=100%)

(%)

500

12

400

9

300

6

200

3

100

0

0
2014
Plan
* Mid-sized automotive motor applications: power seats, electric parking brakes, steering column
adjusters, engine air intake and exhaust, seatbelt pretensioners
2010

2011

2012

2013

Annual Report 2013

6

Production Base Strategy: Priority Activities
To accelerate growth of the mid-sized automotive motor business, accelerate investigation of
construction of a global production and supply structure.
Asia-Centered Production

Global Production and Supply Structure
Change in conditions
Products

Main
Applications

Manufacturing

Small

Consumerequipment

People-centeredMid-sized

Automotive
products

Facilitiescentered

Important considerations when
deciding location of production base.
Abundant labor supply
Supplying the world from production bases in
China, Taiwan, and Vietnam

Proximity to markets

leveraging the laborsaving know-how and automatedfor medium-size automotive motors, which Mabuchi haslaborsaving facilities accumulated through activities imple-

positioned as a strategically important application, andmented to date and the structure we have developed to

manufacturing innovation has brought about a shift frommake acceleration of their deployment possible.

people to facilities as the core element of production.

In addition to these measures, we will push forward withTaking these developments into consideration—i.e., changes

comprehensive activities to increase productivity, includingin the industry with regard to applications, changes in

reduction of non-value-added processes through improve-

manufacturing, customs duties, and other factors—Mabuchi

ment in production indicators and creation of quality inwill accelerate its efforts to develop a global production andproduction processes, and make every effort to not merely

supply structure with the principal aim to expand theeliminate the impact of labor cost increases, but to realize

medium-size automotive motor business, which includes

cost reduction.

products such as power window motors.

Construction of a New Global Production and
Supply Structure
In an era in which labor-intensive manufacturing was preva-	Basic Policy on Returning Profit to
Shareholders and Dividends for the Yearlent, the ability to secure an abundant supply of workers

Our basic policy on the appropriation of retained earnings iswith manual dexterity was an important consideration in

to retain necessary earnings for sound business activities, todeciding the location of production bases. Mabuchi has

maintain healthy financial strength and to ensure adequate

developed a structure in which production is concentrated

dividends to our shareholders based on performance for thein Asia, an optimal region in that regard, and suppliedyear. Based on the above policy, the Company makes it a

motors from Asia to the rest of the world.

principle to consistently distribute an ordinary dividend of¥60 per share on an annual basis plus a special dividend

7

Meanwhile, the concept of local production for local con-equivalent to 20% (paid out on a per share basis) of the

sumption has become a strong tendency among customers

annual consolidated net income.

MABUCHI MOTOR CO., LTD.

Mabuchi will accelerate its efforts to develop a global
production and supply structure with the principal aim to
expand the medium-size automotive motor business,
which includes products such as power window motors.

In addition, the actual full-year dividend amount shall be

The situation in the markets in which the Mabuchi Group

based in principle on the above calculation standards andoperates is mixed. In the Automotive Products Market,

calculated in consideration of the dividend payout ratio,worldwide automobile production is expected to grow anddividend levels prior to the previous period, internal reserves,

remain strong. In the Home Appliances, Power Tools & Toys

cash flows, and other factors. The amount shall not be lessMarket, demand is expected to be stable in developed

than the expected full-year dividend amount announced

countries and to grow gradually in emerging countries. On

during the full-year period.

the other hand, we expect market conditions for key items
to soften in the Precision & Office Equipment Market andIn addition to the aforementioned calculation standards, theforecast continued market contraction in the Audio & VisualCompany declared a commemorative dividend of ¥20.00

Equipment Market.

per share to mark its 60th anniversary. This brought total
annual dividends to ¥140.00 per share, consisting of aConcerning the dividend policy for fiscal 2014, to further¥60.00 ordinary dividend, a ¥60.00 special dividend, and a

increase the profit returns to shareholders, we have partially¥20.00 commemorative dividend.

revised the calculation standards. Specifically, with regard to
the performance-based special dividend, we will raise the

The Company purchased a total of 12 million shares ofprevious “equal to 20% of consolidated net income (per-treasury stock through public tender offers or market pur-share calculation)” to “equal to 30% of consolidated net

chases and purchases of fractional shares from fiscal 2002

income (per-share calculation)” to boost the connection

to fiscal 2012, and has canceled 9.2 million of these shares.

between dividend and performance. In addition, by returning to the originally intended performance-based dividend

The Company will continue to consider purchases of trea-

policy, we have withdrawn from the previous policy statingsury stock as appropriate as a flexible response to changes

that “the actual full-year dividend payment shall not fallin the share price or management environment and capital

below the projected dividend amount announced during

policy and as a method of returning profits to shareholders.

the period.”	Outlook

With respect to total dividends for fiscal 2014, based on the
new calculation standards, we plan to pay annual dividends

In the outlook for 2014, the forecast for the U.S. economy isof ¥140.00 per share, consisting of a ¥60.00 ordinary

for firm corporate earnings and consumer spending, and thedividend and an ¥80.00 special dividend.

European economy is expected to shift to gradual recovery
centered on key countries. In Japan, an increase in exports is

We look forward to the renewed support and understand-forecast, and the economy is likely to remain firm despite

ing of all shareholders in the years ahead.

the impact of a consumption tax increase. On the other
hand, only modest growth is forecast for emerging countries, where a sense of uncertainty regarding the economic
outlook lingers.
Annual Report 2013

8

Segment Information by
Motor Application
In fiscal 2013, the Mabuchi Group actively implemented measures to achieve further progresswith sales and market share expansion, realizing results that will lead to future business growth.
A 27.3% year-on-year increase in motor sales, which accounts for the majority of the Group’s
consolidated net sales, reaching 108,340 million yen, further ensured the Group’s progress.

Automotive Products
Major Applications
Power window lifters, door locks, mirrors, power seats, air conditioner dampers, etc.

Automotive Products Market
Net sales in this market rose sharply to 66,220 million yen (a 35.0% increase on a year-on-year basis). Sales of products for all
applications including motors for mirrors, door lock actuators, and air conditioning damper actuators, which are applications forcompact motors, and motors for power window lifters, power seats, and electronic parking brakes, which are applications for
medium- or large-sized motors, developed favorably due to growth in worldwide automobile production as well as an increasein Mabuchi’s market share. Furthermore, the weak yen also contributed to the sharp increase.
Net sales

Net sales by principal item

(Millions of yen)(100 millions of yen)

(Year-on-year change)

66,22023

49,05540,063

55
11
36
37
97

59

73
49

133.4%
195.6%
135.1%
159.9%

128131.1%

151

129.2%

135

177

131.3%

20122013

40,651

30,346

117

2009

2010

2011

2012

2013

Power window lifters
Door lock actuators
Mirrors(including folding)Power seats
Air conditioner
damper actuators
Electric parking brakes
OthersHome Appliances, Power Tools & Toys
Major Applications
Beauty-related equipment, power tools, toys, health-related equipment, etc.

Home Appliances, Power Tools & Toys Market
Net sales in this market rose sharply to 19,786 million yen (a 26.1% increase on a year-on-year basis). Sales of motors for hairdryers and toothbrushes developed favorably in preparation for the year-end sales season, sales of motors for power tools also
increased due to a strong U.S. market and higher sales of motors for high-end products, and the weak yen also contributed tothe sharp increase.
Net sales

Net sales by principal item

(Millions of yen)(100 millions of yen)

(Year-on-year change)

19,786
16,23017,337

15,792

52

15,6957

8

63122.3%

7

104.6%
119.8%

1042138.7%

72

126.6%

30
57
2009

9

MABUCHI MOTOR CO., LTD.

2010

2011

2012

2013

2012

2013

Beauty-related
Power tools
Health-related
Toys and models
OthersPrecision & Office Equipment
Major Applications
Inkjet printers, multifunction printers (MFPs), laser printers, etc.

Precision & Office Equipment Market
Net sales in this market increased to 13,479 million yen (an 18.9% increase on a year-on-year basis). Sales of motors for inkjet
printers increased due to product mix improvement and the impact of the weak yen. Sales of motors for multifunction printers(MFPs) and laser printers, existing products and newly launched products alike, developed favorably.
Net sales

Net sales by principal item

(Millions of yen)(100 millions of yen)

(Year-on-year change)

820
13,024

13,821

12,58955.4%
174.8%

15
11

13,479Inkjet printers
Multifunction printers (MFPs) andlaser printers

11,334

Others

106122.7%

86

2009

2010

2011

2012

2013

2012

2013

Audio & Visual Equipment
Major Applications
CD players, DVD players, etc.

Audio & Visual Equipment Market
Net sales in this market decreased to 8,854 million yen (a 2.1% decrease on a year-on-year basis). Sales of motors for CD players
in cars in the after-market sector decreased, and the market for motors for DVD players continued to contract. Sales of bothproduct lines decreased as a result of a greater selectivity in accepting orders to maximize profitability.
Net sales

Net sales by principal item

(Millions of yen)

10,679(100 millions of yen)

(Year-on-year change)

11,435
9,725

9,045

8,854

7
18

6
11

85.2%
65.6%

70

108.4%CD players
DVD players
Others

64

2009

2010

2011

2012

2013

2012

2013

Annual Report 201310

Research andDevelopment Activities
The Mabuchi Motor Group’s R&D activities are spearheaded by Mabuchi
Motor Co., Ltd. (the parent company) and MABUCHI MOTOR (DONGGUAN) CO., LTD. (in the Asia segment). In this section, we provide an
overview of the Group’s R&D activities.
The R&D organization consists of the Research and Development
Headquarters and its subordinate organizations: the Research andDevelopment Dept. 1, the Research and Development Dept. 2, and theProduction Engineering Dept. In addition, the Research and Development Headquarters directly controls groups that engage in activities
pertaining to fundamental technology, intellectual property, test evaluation, technology research, and engineering management. The organization engages mainly in high-value-added work, including the development of elemental technologies based on the Group’s technology
roadmap, described below, as well as new product development centered on strategically important applications. From its inception, theResearch and Development Center of MABUCHI MOTOR (DONGGUAN)
CO., LTD. (the “R&D Center”) has mainly engaged in design improvement work. The R&D Center also handles new product development
aimed at rapidly launching products in the Chinese local market, as well
as new product development tasks entrusted by the parent company.
To materialize timely new product development and new productintroductions, Mabuchi has prepared the technology roadmap based on
information obtained from market research and benchmarking-based
technical investigation, and is steadily developing elemental technologies
in accordance with the roadmap. In fiscal 2013, we established a CrossFunctional Team (CFT) to spearhead initiatives across departmental lines,
thus further strengthening our R&D system.
Among these development projects, Mabuchi is focusing particularattention on the strategies described below for examination and implementation of urgent measures, with the aims of strengthening its
responsiveness to new motor-related fields and applications and addressing
the steep rise in labor costs in overseas countries where it operates plants.
1) S trengthen our expertise in circuit design technologies required toincrease our market share for brushless motors (a high-priority sector)
2) Adopt innovative perspectives to broaden the application of major
reductions in production line workers3) R eturn to generation principles to deepen our fundamental expertisein mechanical noise and vibration reduction technologies4) Strengthen and broaden the application of optional mechanism
attachment technologies
With respect to specific applications, at present we are focusing mainlyon the automotive products business. Our R&D and sales departments
work together to address specific applications in this business.

Motors for power seats
The introduction of distinctive, small, high-torque motors has seen
increasing adoption by large customers. We will reinforce our productlineup to further raise our share of this market.

Motors for power window lifters
Thanks to increasing sales to large-scale customers in Japan and overseas,
sales of motors for power window lifters exceeded ¥17 billion in fiscal
2013, making this a core business for the Group. We set up production ofcompact, lightweight power window lifter motors (more details later inthis section), and we also acquired certification as a supplier from a major
automaker in North America for a model currently under development.
This success has brought an increase in trade inquiries from customers,
and we are ramping up relevant personnel accordingly.

3) Medium-size brushless motor (IS-94B)

Motors for other small automotive applications
Mabuchi has long enjoyed a competitive advantage in this market.
Nevertheless, we are striving to further increase our competitive edge by
promoting small, high-torque motors featuring low mechanical noiseand low vibration.
With regard to existing models for other markets, Mabuchi willcontinue harnessing its know-how to improve its product features while
promoting remodeling to enhance added value. At the same time, wewill deploy the aforementioned R&D Center to build a structure forpromptly meeting market and customer needs.
In fiscal 2013, R&D expenses amounted to ¥3,763 million. At fiscal
year-end, the total number of industrial property rights held by theCompany stood at 600 (95 in Japan and 505 overseas), and the total
number of domestic and overseas new industrial property applications
during the year was 30. A total of 425 employees engaged in R&D
activities (238 at our headquarters and 178 at the R&D Center of
MABUCHI MOTOR (DONGGUAN) CO., LTD.).
Below are major new products launched in fiscal 2013:
1) Small, high-torque automotive motor (RS-656WA)
Similar in size to existing types, this model features improvements inquietness, longevity, and rigidity. Significantly reduced vibration during
operation has improved this product’s quietness in actual-use environments. It also features higher rigidity, higher output, and longer life inresponse to demand for improved durability. In the automotive area, theRS-656WA is now being fitted to electric parking brakes (EPBs), andother applications are earmarked for the future.
2) Small, lightweight motor for power window lifters (GD-558)
Mabuchi’s strengths lie in small, lightweight, low-cost products, and thismodel features enhancements in these areas. With reduced weight, italso meets the strong market need for improved fuel efficiency andlower costs. Despite using a general ferrite magnet instead of a neodymium magnet, we have achieved 15% reductions in weight and size
vis-à-vis comparable existing models thanks to a new gear unit designand our original self-locking mechanism. We have started selling the
GD-558 to major Japanese automakers.

Mabuchi’s first 700W brushless motor, the IS-94B features enhancements in compactness and cost reduction over existing models. Its
magnetic circuit design and overall structural design help maximize
efficiency and lower noise and vibration. We have commenced sales tomanufacturers of power-assisted bicycles, and plan to approach makers
of welfare equipment, gardening equipment, and the like in the future.

R&D expenses/R&D expenses ratio

R&D personnel

Number of intellectual properties(Millions of yen)

(Persons)(Intellectual properties)

4.7
3,298

4.0

3,337

4.4

4.5
3.5

3,493

3,794

3,763

348

368

386

414

425

545
126

419

2009

2010

2011

2012

R&D expenses ratio (%)

11

MABUCHI MOTOR CO., LTD.

2013

2009

2010

2011

2012

2013

2009

624

607

600

108

99

95

473

516

508

505

2010

2011

2012

2013

591
118

Overseas

Domestic

Activities for Sustainable
Management
The “Management Principle” of Mabuchi Motor encompasses the belief that we at Mabuchi
must elevate our level of contribution to society and persevere as a prominent entity the world
cannot do without. This principle is not only a guide for running our corporation but a gene to
be carried down to subsequent generations of the Mabuchi enterprise.

Mabuchi’sManagement
VisionMANAGEMENT PRINCIPLE
Contributing to International
Society and Continuously
Increasing Our Contribution

Our Missions
Mabuchi’s missions
embrace a set ofvalues for all Mabuchi
Group employees toshare in overcoming
various difficulties
and conflicts that
occur in carrying out
their duties andachieving further
growth.

Our Management Vision◦ MANAGEMENT GUIDELINES
Mabuchi’s management guidelines, which flowfrom our management principle, spell out
specifically how we “contribute.” These guidelines
outline the mission of Mabuchi’s business activities.

◦ MANAGEMENT POLICIESMabuchi’s management policies provide guidelines
for its corporate activities, which are a starting
point for creating value and lead to greater levels ofsocial contribution and achieving sound growth.

Mabuchi believes that a company cancontinue to exist and grow only if its
business activities contribute to society on
an ever-expanding basis. It goes without
saying that a company cannot expand oreven remain in business unless it
generates profits. However, profit is not
Mabuchi’s sole management objective.
Our ultimate objective is to continue
raising our level of contribution to society
through our business activities andremain a company that society considers
essential. This management principle is at
the core of all our activities, unchanging
through time and irrespective of thepeople at the management helm.

◦ MANAGEMENT SCHEME
Based on Mabuchi’s business policy of maximizing the potential ofsmall DC brush motors as our core business, we mobilize our organizational skills and promote business activities in which we can continuously exert a unique “Mabuchi-ism” that cannot easily be emulated. Naturally, we do not aim at diversification without contributing
to society, namely, diversification only to expand sales. We generate
revenues and profits as a result of our contributions to markets inwhich we are truly welcome. We plan to continue reflecting this management philosophy, which has served us well in the past, into the
future.
Annual Report 201312

Corporate Governancesocial impartiality and are fundamental to living up to the trustand expectations of all stakeholders; andBasic Approach to Corporate GovernanceWe understand that realizing this principle is our raison d’être,and we recognize that corporate governance comprises theorganizational/management systems and various managerial
measures that support those systems. Accordingly, we believethat the fundamental objective in establishing and implementing
an appropriate corporate governance framework is to further theinterests of our shareholders and other stakeholders on an ongoingbasis through the creation of fair profits and the enhancement ofcorporate value.
Constructing and maintaining a corporate governance systemalong the lines given below are indispensable for Mabuchi as alisted company.
1. To clearly separate management decision-making and efficientbusiness execution, and to clarify the scope of accountability;
2. To build and operate a sound internal control system, namely, toeffectively work the internal check system and the management
supervision system;
3. To appoint a suitable number of independent officers whose
interests do not conflict with those of general shareholders toensure the objectivity and neutrality of management supervisionfunctions;
4. To foster a corporate culture in which all Group employees
recognize and share the understanding that the practices ofcorporate ethics and compliance support the organization’s

5. To disclose corporate information to shareholders and otherstakeholders in an appropriate, fair, timely and clear mannerand to ensure accountability through the Board of Directors, theAudit & Supervisory Board, and other bodies.
The Mabuchi Group employs a simple corporate management
structure by establishing a corporate group consisting of Mabuchi
Motor Co., Ltd., and its wholly owned subsidiaries as well as
focusing and specializing its business resources on and in the small
DC motor business. The Mabuchi Group employs the Audit &Supervisory Board System as the best-suited organizational design
after considering such matters as directors’ duties, management
efficiency, and the maintenance of a management supervisorysystem that is appropriate to the above business contents andcorporate management structure.

Outline of Corporate Institutions
Board of Directors and Executive Committee
Significant management decision-making is carried out by the
Board of Directors, consisting of six inside directors and one
independent outside director who are familiar with the Company’s
management environment and business. The Board of Directors
quintessentially serves the functions of management decisionmaking and supervision of the execution of directors’ duties
and, as required by laws and ordinances, reporting on important

General Meeting of Shareholders
Appoint/Dismiss
LiaiseIndependent
Auditors

ReportAudit & Supervisory Board
Advise(Including three outside Audit &Supervisory Board members/
independent outside officers) Audit

Department for Audit &Supervisory Board Members

ReportDirectAdviseMABUCHI MOTOR CO., LTD.

Group Ethical Standards

Other Supervisory Frameworks

Consult
Executive Committee(Executive Managing Officers)(One Executive Officer in
Charge of Internal Control)

Company Departments(Responsible for Compliance)

13

Basic Policy on Internal Control

Supervise

ExecuteInternal
Audit

Group Management Vision

Subsidiaries(One Director in Chargeof Compliance)(Internal Audit Committee)

Meeting of Head of Group Offices(Risk Management Committee)

ReportInternal Reporting
SystemManagement Principle

ReportRepresentative Directors

Internal Audit Department

Accounting
Audit

Board of Directors(Including one outside director/
independent outside officer)• Environmental Management
Committee (Audit of the Environmental
Management System)• Quality Management Committee (Auditof the Quality Management System)• Design Reviews• Division of Duties/Company Rules andRegulations• Ringi System and Other Regulations• (Subsidiaries) Regulations on Powers ofApproval

executive management decisions and conditions. Responsibility forexecuting decisions that have been made by the Board of Directors
is transferred to the representative directors and the executive
officers. The Board of Directors convenes regularly once a monthand at other times as required.
The Company deems that the independent outside director
shall act in a supervisory and advisory role to the Company’s
management at the Board of Directors’ meetings to not only ensure
but also enhance transparency.
Mabuchi has established an Executive Committee, primarily
composed of executive officers, with the objectives of supporting
the functions of the Board of Directors, conducting preliminary
consultations relating to important issues for deliberation by the
Board of Directors, carrying out executive business decision-making
outside the scope of the Board of Directors’ legal powers, andreporting on executive business conditions. This arrangement
enhances the Board of Directors’ function, as it allows the Board toprioritize deliberation of reports and proposals, making decisions
on these topics and monitoring and supervising the execution ofduties. The Executive Committee meets regularly twice a month.
In addition, Mabuchi has introduced an Executive Officer
System that centralizes strategic decision-making and supervisionfunctions on directors and delegates powers and responsibilities to
executive officers for the everyday execution of their duties. Thissystem serves to enhance the functions of both directors and theexecutive officers.
Audit & Supervisory Board
Mabuchi has appointed four Audit & Supervisory Board members,
three of whom are outside members with a high degree of
independence. Mabuchi has also established a department for
Audit & Supervisory Board members and has made it possible for
the Audit & Supervisory Board members to request audit-related
assistance from employees of the Internal Audit Department andother departments where appropriate.
The Audit & Supervisory Board members (three of whom areoutside members) carry out audits of the execution of duties bydirectors and other bodies in accordance with legal stipulations
and the auditing standards, policies, plans, and apportioned
duties determined by the Audit & Supervisory Board. Specifically,
Audit & Supervisory Board members attend meetings of the Boardof Directors and the Executive Committee and other important
meetings and oversee major business execution decisions anddocumentation related to their execution, if necessary, requesting
directors and employees to provide such documents or submit
reports, in order to audit and supervise the execution of duties
by the directors. The Audit & Supervisory Board convenes every
second month and holds regular monthly meetings for theexchange of opinions between Audit & Supervisory Board members
and essential deliberations regarding the execution of duties bydirectors.
Internal Audit Department
Mabuchi has established an Internal Audit Department, with one
full-time member, under the direct control of the president. Thisbody liaises with the Audit & Supervisory Board (members), theExecutive Officer Responsible for Internal Control, and the Internal
Control Department on a timely basis and conducts ongoingsupervision of the upgrading, running, and effectiveness of theinternal control framework for Mabuchi and its Group companies.
The Internal Audit Department reports its findings to the president,
directors, and Audit & Supervisory Board members.

Internal Control System
In accordance with the Basic Policy on Internal Controls approved
at a meeting of the Board of Directors under the provisions of theCompanies Act, Mabuchi is working to establish an internal control
system that includes systems for risk management, complianceassurance, document management, Group management, and Audit& Supervisory Board members’ audits. In this way, inadequacies ininternal controls and other issues discovered in risk management
activities, compliance activities, Audit & Supervisory Board
members’ audits, and internal audit activities are reported to thedirectors and Audit & Supervisory Board members on a periodic
or nonperiodic basis, and appropriate corrective measures aretaken in a timely manner. These efforts provide the Company
with a framework for continuously enhancing the functioning
and effectiveness of the internal control system. By establishingand ensuring the appropriate application of internal regulations
governing the approval system, job authority and division of
responsibilities, and other matters, the Company seeks to further
ensure the appropriate conduct of business. These various internalmechanisms serve to support the directors and Audit & Supervisory
Board members in their monitoring and supervision of the conductof business by directors.

Risk Management System
In accordance with the Basic Policy on Internal Controls, Mabuchi
has designated an executive officer with overall control overrisk management and the departments responsible for risk
management; has prepared and established internal rules andprocedures necessary for appropriate management of risk; andhas taken necessary measures, including informing and educating
employees about risk management.
In addition, Mabuchi has established the Risk Management
Committee, whose members are the persons responsible forrisk management at each company department and subsidiary;
has made possible cross-organizational activities concerning risk
awareness and assessment in routine business activities, risk
response, and information provision; and has put in place a Group
Emergency Response System to prepare for contingencies, with theobjective of protecting all the Group business activities in the eventof an emergency.
Furthermore, the Internal Audit Department periodically audits
the status of risk management and reports the audit results to theBoard of Directors and Audit & Supervisory Board. The Board of
Directors reviews the report and takes any necessary measures.
In this way, Mabuchi pursues continuous improvement of the risk
management system.

Disclosure of Corporate Management Data
Mabuchi’s basic policy is to strive to carry out impartial, timely,
and clear information disclosure to ensure a fair evaluation of theCompany’s corporate value and to gain the trust of its shareholders
and investors. We innovate and improve our information disclosure
to ensure highly effective data delivery that will cultivate broad
understanding of the Company’s business activities.

Annual Report 201314

Board of Directors, Audit & Supervisory Board
Members, and Executive Officers(As of March 28, 2014)

Directors

Shinji Kamei

Hiroo Okoshi

Takashi Kamei

Representative Director
and Chairman

Representative Director
President and CEO

Executive Managing Director
Senior Managing Executive Officer and General Manager ofOperations Control Headquarters, in charge of China Business

Tadashi Takahashi

Akihiko Kitahashi

Masato Itokawa

Iwao Nakamura

Director
Executive Officer and General
Manager of Research andDevelopment Headquarters

Director
Executive Officer and General
Manager of Sales & Marketing
Headquarters

Director
Executive Officer and General
Manager of Quality Assurance
Dept., in charge of Quality andEnvironmental Management

Director (Outside)

Audit & Supervisory Board Members

Masahiro Gennaka

Keiichi Horii

Nobutaka Motohashi

Toru Masuda

Audit & Supervisory Board
Member (Full-time)

Audit & Supervisory Board
MemberAudit & Supervisory Board
MemberAudit & Supervisory Board
MemberExecutive Officers (excluding those also serving as directors)

15

Tadahito Iyoda

Chin Tai Yen

Katsuhiko Katayama

Tsuyoshi Nakamura

Executive Officer
General Manager of
Administration Headquarters, incharge of Internal Controls

Executive Officer
Chairman of the Board andPresident, MABUCHI TAIWAN
CO., LTD.

Executive Officer
Director of the Board andPresident, MABUCHI MOTORDALIAN CO., LTD.

Executive Officer
Deputy General Manager –Sales & Marketing Headquarters

MABUCHI MOTOR CO., LTD.

Corporate Social Responsibility
Mabuchi’s wide-ranging CSR activities include a social action program for which theGroup is particularly well suited—sharing the importance and wonder of manufacturing.
Basic Approach to CSR Activities
Mabuchi believes that no company can exist without thedevelopment of a better society. With this in mind, we undertake proactive CSR initiatives while continuously broadening
our social contribution through our business activities.

Science Lessons for Elementary School Students
by the Company’s Technical Staff

the leaders of the next generation—with experience in themagnificence of making things and in the mysteries ofscience, thus stimulating their interest in manufacturing.
During the summer holidays, we invited approximately
160 parent–child duos who used motors as power generators
to create handicrafts using readily available waste materials
such as discarded CDs and PET bottle caps.

Workshop Event at Tokyo Motor Show

Seeking to help children experience the joys and wonders ofscience and understand how knowledge learned in scienceclass contributes to their lives, Mabuchi has been dispatching
staff to teach children about science since 2008. In 2013, we
held classes at four elementary schools in Matsudo City in
Chiba Prefecture, the Science Museum in Tokyo, and theJapanese School of Suzhou in China.
Using Mabuchi-made motors as learning tools, the children gained hands-on experience in disassembling andexamining motors, while learning about how electromagnetic
properties are used inrotating mechanisms
and generate electricity. We also exhibited
actual products thatincorporate motors to
help the children
realize how extensively
motors are used in ourdaily lives.

During the year, Mabuchi
held children’s
workshops under the
SMART MOBILITY CITY
2013 project, which waspart of The 43rd Tokyo
Motor Show 2013.
Around 200 parent–childgroups participated in
the project, held overthree days. They madewooden automobiles powered by Mabuchi prototype motors
and experienced the joy of manufacturing.

Provision of Learning Materials

Providing Educational Opportunities

Each year Mabuchi provides a large amount of learningmaterials to support science education. In 2013, Mabuchi
provided approximately 15,000 motors as well as caseexamples of handicrafts powered by motors. These learningmaterials are put to good use in science classes at public
elementary schools in Matsudo City and at handicraft workshops held by numerous educational institutions all overJapan.

Since 1996, Dalian Mabuchi has been supporting the establishment of schools and carrying out other activities with theobjective of providing children with the opportunity ofgaining an education. To date, the company has helped toestablish three elementary schools and one junior highschool. Subsequently, the company has continued to furnish
the school’s students with invitations to tour its factories andto provide them with facilities and equipment. In addition,
Dalian Mabuchi has established a scholarship system tosupport children and young people whose economic circumstances prevent them from attending schools and universities,
providing assistance that enables them to grow into adults
who will benefit society.

Summer Vacation Handicraft Workshops
Every year since 2008,
Mabuchi has held Summer
Vacation Handicraft Workshops for parents andchildren to provide kids—

Robot Contest SponsorshipTo support the education of tomorrow’s technologists andencourage developments in science and technology, Mabuchi
has sponsored ABU Robocon, NHK University Robocon andKosen (technical college) Robocon every year since 2002,
providing funding and motors.

Annual Report 201316

Financial SummaryMarket Environment

Net Sales and Operating Income Margin

In the Automotive Products Market, the primary market inwhich the Mabuchi Group operates, demand in the U.S. andemerging countries was strong, while in Europe demand
appeared to have bottomed out in some areas. In the Home
Appliances, Power Tools & Toys Market as well as thePrecision & Office Equipment Market, housing-related
spending and consumer spending in the U.S. were strong,
acting as a locomotive for demand, and demand in emerging
countries continued as well. On the other hand, the Audio &Visual Equipment Market continued to contract.
Under these business conditions, the Mabuchi Groupaddressed several issues in fiscal 2013, which included
further strengthening of the automotive products business,the undertaking of new activities in the consumer andindustrial products businesses, sales expansion in China,
reorganization of production bases, and the introduction of
manufacturing process innovations.

Net sales(%)
Operating income margin
10
8.6%(Millions of yen)

120,000
8.0%

100,000

8

80,000

5.9%
6
4.3%

60,0003.9%
82,75240,00078,88670,369108,401
4

85,2542

20,000
0

2009

2010

2011

2012

Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries (Years Ended December 31)
Millions of yen

Thousands of
U.S. dollars

2009

2010

2011

2012

2013

2013

¥70,369
51,805
15,544
3,019
3,013
5,450
3,659
4,031
3,298

¥82,752
60,062
16,064
6,624
7,291
5,260
3,210
3,603
3,337

¥78,886
59,83815,981
3,066
3,248
(466)
6,524
3,326
3,493

¥85,254
64,214
15,987
5,052
8,426
6,385
6,825
3,579
3,794

¥108,401
81,546
17,5199,335
15,015
10,519
5,755
4,571
3,763

$1,032,390
776,628
166,847
88,904143,000
100,180
54,80943,53335,838¥10,708¥ 5,457¥696¥ 9,091¥11,750$111,904(1,630)8,601(2,874)

8,230

4,264

40,609(3,927)(3,507)(3,507)(3,509)(3,031)(28,866)

At year-end:
Total assets
Net assets¥192,362
180,311¥185,408
174,570¥181,351
168,538¥196,702
181,372¥227,253
208,791$2,164,314
1,988,485

Per share data:
Net income (loss)
Net assets
Dividends payable¥ 155.54
5,146.04
100.00¥ 150.14
4,982.43
100.00(13.31)4,810.36
100.00¥ 182.25
5,176.75
100.00¥ 300.21
5,956.04
140.00$ 2.85
56.72
13.33

4.3
3.0
93.7

8.0
3.0
94.2

3.9
(0.3)
92.9

5.9
3.5
92.2

8.6
5.4
91.9

—
—
—

35,03835,03735,03635,03535,145—38,251

37,46633,91829,05828,132—For the year:
Net sales
Cost of sales
Selling, general and administrative expenses
Operating income
Income before income taxes
Net income (loss)
Capital expenditures
Depreciation and amortization
R&D expenses
Cash flows:
Net cash provided by operating activities
Net cash (used in) provided by investing
activities
Net cash used in financing activities

Other data:
Operating income margin (%)
ROE (%)
Shareholders’ equity ratio (%)
Number of shares outstanding(Thousands of shares)
Number of employees (Persons)(Yen and U.S. dollars)

¥

Notes
1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥105=U.S.$1, the approximate exchange rate on December 31, 2013.
2. ROE is calculated by dividing net income by the average of total shareholders’ equity plus the revaluation/translation adjustment during the period.
3. The shareholders’ equity ratio is calculated by dividing the sum of total shareholders’ equity and the revaluation/translation adjustment as of the end of theperiod by total assets as of the end of the period.

17

0

2013

MABUCHI MOTOR CO., LTD.

Net Sales

Operating Income

Net Income¥108,401
million¥9,335
million¥10,519
millionConsolidated net sales in fiscal 2013rose 27.2% from the previous fiscal
year to ¥108,401 million(US$1,032,390 thousand).

Operating income rose 84.8% to¥9,335 million (US$88,904 thousand).

The Mabuchi Group recorded a 64.7%
increase in net income, reaching¥10,519 million.

Net Sales by Application
2012

49,0552013

Net Sales by Geographic Area

66,22002012 9,664 8,714 14,211

15,695 11,334 9,045 122

25,00019,78650,00013,479 8,854 61

75,000100,0002013 10,109 11,475
0

32,27020,27019,71325,00041,52850,00025,51375,000(Millions of yen)

Automotive ProductsHome Appliances, Power Tools & Toys
Precision & Office Equipment

122

61

100,000(Millions of yen)

Audio & Visual Equipment
Other

Japan
North & Latin America
EuropeChina & Hong Kong
Asia Pacific
Other

Analysis of Operating Income
Cost decrease¥0.5 billion

Improvement inselling prices andproduct mix¥0.5 billion

Decrease incommodities prices(copper, steel,precious metals)¥1.0 billion

Sales quantity
decrease¥0.1 billion

Other¥0.5 billion

Foreign exchange¥2.9 billion

Fiscal 2012 Results¥5.0 billion

Fiscal 2013 Results¥9.3 billion

Factors Affecting FY2009–FY2013 Consolidated Operating Income
Selling, General and Administrative Expenses(Millions of yen)

20,000

SG&A

Exchange Gain/Loss

SG&A ratio

22.1%
19.4%

20.3%

18.8%

16.2%

15,00010,00015,544

16,064

15,981

15,987

17,519

5,000
0

2009

2010

2011

2012

2013

(%)

(Millions of yen)

25

6,000

20

4,500

15

3,000

10

1,500

5

0

0

-1,500

5,624
3,647

596
2009

-272
2010

2011

2012

2013

-1,036

Annual Report 201318

Management’s
Discussion and Analysis
Market Conditions

Net sales/Gross profit margin(Millions of yen)
26.4

During the fiscal year ended December 31, 2013, the world economy began to gradually recover in thesecond half. The U.S. economy remained strong due to solid consumer spending and capital investment.
Although economic stagnation continued in Europe, signs of recovery began to appear in key countries.
The economies of emerging countries showed only gradual growth, with domestic demand varying fromregion to region. In Japan, the historically unprecedented yen appreciation was corrected, corporate
performance showed improvement, and gradual economic recovery continued.
In the markets in which the Mabuchi Group operates, in the Automotive Products Market, demand in
the U.S. and emerging countries was strong, while in Europe demand appeared to have bottomed out insome areas. In the Home Appliances, Power Tools & Toys Market and the Precision & Office Equipment
Market, the U.S. market, where housing-related spending and consumer spending were strong, acted as alocomotive for demand, and demand in emerging countries continued as well. On the other hand, the
Audio & Visual Equipment Market continued to contract.

27.4
24.8

24.7

24.1

108,401
82,75278,8862010

2011

70,3692009

85,2542012

2013

Gross profit margin (%)

Operating Results

Operating income/Operating income margin

Net Sales
Consolidated net sales in fiscal 2013 increased 27.2% from the previous fiscal year to ¥108,401 million(US$1,032 million). Sales of motors, which account for the majority of consolidated net sales, rose 27.3%
to ¥108,340 million (US$1,031 million). Sales volume of motors edged down 1.0% to 1,460 million units.
In addition to the Automotive Products Market, a high-priority business, we generated solid sales in the
Home Appliances, Power Tools & Toys Market and the Precision & Office Equipment Market. An
improvement trend in the product mix, together with the weakened yen, pushed up unit selling prices,
contributing to the year-on-year increase in revenue.

(Millions of yen)
8.6

8.0
4.3

5.9

3.9

9,335
6,624

Costs, Expenses and Operating Income

5,052
3,019

2009

Operating income for the year jumped 84.8% to ¥9,335 million (US$88 million). The main factors for thisincrease are as follows. Improvements in unit selling prices and the product mix boosted operating incomeby ¥500 million (US$4 million). Also, stabilization of the steep rise in costs of major materials, such ascopper and iron, bolstered operating income by ¥1,000 million (US$9 million). Successful efforts to reduce
various costs, as well as the curtailment of selling, general and administrative expenses, pushed up operating income by ¥500 million (US$4 million). In addition, the weakened yen boosted operating income by¥2,900 million (US$27 million). By contrast, the decline in sales volume pushed down operating income by¥100 million (US$0.9 million).

3,066

2010

2011

2012

2013

Operating income margin (%)

Net income (loss)/ROE(Millions of yen)

3.0

Other Income (Expenses), Income before Income Taxes, and Net Income

5.4

Other income totaled ¥5,679 million (US$54 million), up ¥2,304 million (US$21 million) from the previous
fiscal year. This was due mainly to a foreign exchange gain, stemming from the yen’s progressive decline
during the year, as well as the absence of items incurred in the previous fiscal year, namely restructuring
expenses and a loss on sales of investment securities. By contrast, the Company posted an impairment loss
on fixed assets associated with weakened earnings of some consolidated subsidiaries resulting fromcontraction of the DVD player market.
As a result, income before income taxes climbed 78.2% to ¥15,015 million (US$143 million).
Income taxes totaled ¥4,496 million (US$42 million), up ¥2,454 million (US$23 million) from theprevious fiscal year. This resulted from a slight increase in the consolidated effective tax rate due to theimpact of an increase in foreign exchange gains at the parent company, which carries a relatively high tax
burden among its Group companies.
Consequently, net income for the year amounted to ¥10,519 million (US$100 million).

3.5

3.0

10,519

5,450

5,260

2009

2010

6,385

-466

2011

2012

2013

ROE (%)Net Sales by Application

Net Sales by Geographic Area
Thousands of
U.S. dollars

Millions of yen

2009

2010

2012

2013

2013

2009

Automotive
Products¥30,346 ¥40,063 ¥40,651 ¥49,055 ¥ 66,220

Home Appliances,Power Tools & Toys

16,23017,337

15,792

15,695

19,786

188,438

Precision & Office
Equipment

13,024

13,821

12,58911,334

13,479128,371

Audio & Visual
Equipment

10,67911,435

9,725

9,045

8,854

84,323

88

93

126

122

61

580

Other

¥70,369 ¥82,752 ¥78,886 ¥85,254 ¥108,401$1,032,390

Total

Other
Total

Note: Other includes parts and equipment sales.

19

2011

MABUCHI MOTOR CO., LTD.

$  630,666

Thousands of
U.S. dollars

Millions of yen

Japan

2010

2011

2012

2013

¥ 8,056 ¥10,069 ¥ 8,773 ¥ 9,664 ¥ 10,109

2013$   96,276

North & Latin
America

5,995

7,438

7,461

8,714

11,475109,285

Europe10,476

11,79312,362

14,211

19,713

187,742

China & HongKong

29,423

34,47732,13532,27041,528395,504

Asia Pacific

16,327

18,88018,027

20,27025,513242,980

88

93

126

122

61

580

¥70,369 ¥82,752 ¥78,886 ¥85,254 ¥108,401$1,032,390

Note: Other includes parts and equipment sales.

Financial Position
AssetsTotal assets

Total assets as of December 31, 2013 stood at ¥227,253 million (US$2,164 million), an increase of ¥30,551
million (US$290 million) from the previous year-end. The most noticeable changes included an increase in
cash and bank deposits of ¥21,981 million (US$209 million), an increase in trade notes and accounts
receivable of ¥5,071 million (US$48 million), an increase in inventories of ¥3,676 million (US$35 million),and a decrease in investment securities of ¥5,172 million (US$49 million). In addition, although total
property, plant and equipment increased by ¥5,139 million (US$48 million), this is mainly attributable toyen conversion of assets of overseas subsidiaries.

(Millions of yen)

Liabilities

227,253
192,362 185,408

181,351

196,702

Total liabilities stood at ¥18,461 million (US$175 million), an increase of ¥3,131 million (US$29 million)
from the previous year-end. The most noticeable changes were an increase in trade notes and accounts
payable of ¥1,608 million (US$15 million), an increase in accrued income taxes of ¥1,200 million (US$11
million), increases in short-term loans payable and long-term loans payable of ¥113 million (US$1 million)and ¥397 million (US$3 million), respectively, in connection with the introduction of the ESOP Trust
Utilizing Employee Shareholding Association, and a decrease in the provision for business structure
improvement of ¥1,126 million (US$10 million).

Net Assets
2009

2010

2011

2012

2013

Shareholders’ equity/
Shareholders’ equity ratio

Cash Flows(Millions of yen)
93.7

94.2

193,895 195,644

Total net assets increased ¥27,419 million (US$261 million) to ¥208,791 million. Net unrealized holding
gains on securities increased ¥2,321 million (US$22 million), and foreign currency translation adjustments
increased ¥18,089 million (US$172 million). In addition, retained earnings decreased by ¥14,359 million(US$136 million) and treasury stock decreased by the same amount, due to the cancellation of treasury
stock.

Net Cash Provided by Operating Activities
92.9

92.2

191,671

194,55191.9
201,529

Net cash provided by operating activities amounted to ¥11,750 million (US$111 million), an increase of¥2,659 million (US$245 million) from the previous fiscal year. Cash flows from operating activities increased
as a result of factors including an increase in income before income taxes of ¥6,588 million (US$62 million).

Net Cash Provided by Investing Activities
Net cash provided by investing activities amounted to ¥4,264 million (US$40 million), a decrease of ¥3,966
million (US$37 million) from the previous fiscal year. Cash flows from investing activities decreased as a resultof factors including a decrease of ¥3,506 million (US$33 million) in the balance of purchases and sales ofshort-term investments and investment securities.

2009

2010

2011

2012

2013

Shareholders’ equity ratio (%)(Millions of yen)
12.4

11.5

Capital Investments, Depreciation and Amortization
10.0

10.7
145,921117,373

103,186 105,935

102,980

2009

2011

2010

2012

2013

Current ratio (Times)(Millions of yen)
6,524

6,825
5,755

2009

4,571
3,603
3,210

2010

Capital investments decreased ¥1,070 million (US$10 million) year on year to ¥5,755 million (US$54
million).
Major components were ¥1,274 million (US$12 million) for building construction costs at MABUCHIMOTOR (JIANGSU) CO., LTD., MABUCHI MOTOR (JIANGXI) CO., LTD., and MABUCHI MOTOR (DONGGUAN) CO., LTD.; ¥262 million (US$2 million) for facilities and equipment for research and development;and ¥4,218 million (US$40 million) for other facilities for expanding and updating motor production
capacity.
Depreciation and amortization increased ¥992 million (US$9 million) year on year to ¥4,571 million(US$43 million).

Outlook

Capital expenditures/
Depreciation and amortization

4,031
3,659

Net cash used in financing activities amounted to ¥3,031 million (US$28 million).
As a result, the balance of cash and cash equivalents amounted to ¥102,462 million (US$975 million), an
increase of ¥22,557 million (US$214 million) from the end of the previous year.

Working capital/Current ratio
11.3

Net Cash Used in Financing Activities

3,326

2011

3,579

2012

Capital expenditures
Depreciation and amortization2013

In the outlook for 2014, the forecast for the U.S. economy is for firm corporate earnings and consumer
spending, and the European economy is expected to shift to gradual recovery centered on key countries.
In Japan, an increase in exports is forecast, and the economy is likely to remain firm despite the impact ofa consumption tax increase. On the other hand, only modest growth is forecast for emerging countries,
where a sense of uncertainty regarding the economic outlook lingers.
The situation in the markets in which the Mabuchi Group operates is mixed. In the Automotive
Products Market, worldwide automobile production is expected to grow and remain strong. In the Home
Appliances, Power Tools & Toys Market, demand is expected to be stable in developed countries and togrow gradually in emerging countries. On the other hand, we expect market conditions for key items tosoften in the Precision & Office Equipment Market and forecast continued market contraction in the Audio &Visual Equipment Market.
As a result, in 2014 we expect to record net sales of ¥113,000 million (US$1,076 million) (a 4.2%
increase on a year-on-year basis).
In terms of our business results, we expect profit growth factors such as continuation of the productmix improvement trend and the effects of cost reduction measures. Consequently, we expect to record
operating income of ¥11,300 million (US$107 million) (a 21.0% increase on a year-on-year basis). We also
anticipate net income of ¥9,400 million (US$89 million) (a 10.6% decrease), owing to the expected
non-recurrence of foreign exchange gains or losses.

Annual Report 201320

Business and Other Risks
Changes in Economic Conditions
The demand for Mabuchi products, which are incorporated into our customers’ products, is influenced by the economic conditions
present in the diverse markets in which our Group sells. Consequently, our Group’s business results and financial position may be
adversely affected by economic recessions and the corresponding contraction in demand in Mabuchi’s key markets, including Japan,
North America, Europe and Asia.

Fluctuations in Foreign Exchange Rates
Items denominated in local currencies on the financial statements of our overseas subsidiaries are converted into Japanese yen
when the consolidated financial statements are prepared. Consequently, amounts which are to be recorded after being converted
into Japanese yen are subject to the foreign exchange rates at the time of conversion. In particular, appreciation of the Japanese yen
against the U.S. dollar will have a negative effect on our Group’s consolidated business results, and conversely any depreciation of
the Japanese yen will have a positive effect.
Appreciation of local currencies in regions where the Mabuchi Group carries out production will push up manufacturing andprocurement costs which are denominated in those local currencies. Increased costs will lower our Group’s profit margins and pricecompetitiveness, and will impact negatively on our business results.

Development of New Products and New Technologies
The development and sale of new products, by their very nature, involve both complexities and uncertainties, and include a broadarray of risks.
In the event our Group cannot fully predict the changing needs of the market, or cannot develop appealing new products in atimely fashion, or in the event a technological innovation emerges which causes our products to become obsolete, then our Group’sbusiness results and financial position may be subject to significant adverse effects.

Price Competition
Our customers are businesses in a diverse range of sectors that belong to the electrical and electronic equipment and machinery
manufacturing industries, and price competition in these industries is extremely severe. In these kinds of environments, prices are amajor contributing factor to competition in all sectors, and with the prominence of rival Chinese manufacturers, competition is
becoming even more intense.
If our cost-reduction activities cannot keep up with falling prices over the long-term, then our Group’s business results andfinancial position may be subject to significant adverse effects.

Potential Risks in International Economic Transactions and Expanding Business Overseas
The majority of our Group’s business activities are conducted in the various countries in Europe, North America and Asia.
Within these overseas business activities there are certain inherent risks, including changes in political and economic
environments, undeveloped infrastructures, changes in laws, tax affairs or various other systems, or social unrest.
For example, much of our Group’s production activity is conducted in China and Vietnam. The occurrence of an unexpected
event (such as changes in the political or legal environment, changes in economic conditions, problems related to the employment
environment, or other changes to the social environment) may lead to significant problems for our production and/or sales
activities, and these may lead to our Group’s business results and financial position being subject to significant adverse effects.

21

MABUCHI MOTOR CO., LTD.

Product Quality
There is no guarantee that all of our Group products will have no major quality issues. If a quality issue occurs, the amount ofcompensation may be influenced by the effect on the quality of the final product in which the Mabuchi product is incorporated.
The unlikely event of a product defect that leads to a large-scale product complaint, recall or product liability compensation may
trigger an accrual of large amount of costs or downturn in sales due to a loss of credibility, and may have significant adverse effects
on our Group’s business results and financial position.

Protection of Intellectual Property
We recognize that the acquisition of intellectual property can greatly influence the growth of the Mabuchi Group. However, incertain regions, for certain inherent reasons, our Group’s intellectual property rights may not be completely protected. In such
instances, our Group’s intellectual property may be used without authority by third parties, and through the manufacture of similar
products, we may suffer damages. Or we may lose our competitive advantage through the outflow of other technology orexpertise, and then having it exploited by other companies. Or even still, there is a possibility that it could be claimed that our Grouphas impinged on the intellectual property of another company.
The failure of protection or the violation of intellectual property rights, or the outflow of other intellectual property may lead to
our Group’s business results and financial position being subject to significant adverse effects.

Securing and Developing Human Resources
The Mabuchi Group operates in a highly competitive corporate arena. This situation renders essential the recruitment anddevelopment of employees who are highly skilled in related areas: engineers with specialist scientific and technological expertise,and managers with top business strategy acumen and executive capacities. Mabuchi is fully cognizant of the need for thecontinuous enhancement and improvement of its human resources for the next generation and beyond. Meanwhile, the Groupshould put in a great deal to recruit and develop such a workforce.
The failure to recruit and cultivate such a workforce on an ongoing basis through the requisite expenditure and long-term
human resource development vision would invite adverse impact on the Group’s future performance and financial position.

Procurement of Raw Materials
Depending on the type of raw material that our Group procures from external sources, we may be dependent on a limited numberof suppliers.
There is a possibility that supply of the raw material is suspended due to an accident befalling the supplier or for some otherreason, or that a shortage of supply transpires due to a sudden upsurge in demand. If such conditions were to continue long-term
and alternative materials were not easily available, then there is a possibility that our Group’s production activities would be affected
dramatically, and in turn this would undermine the assurance of delivery and quality of products to our customers. It is also possible,that the prices of such materials would escalate, which would trigger a rise in manufacturing costs.
If such an event were to occur, then our Group’s business results and financial position may be subject to significant adverse effects.

Natural Disasters and Accidents
The Mabuchi Group has established a system of international division of labor. We conduct business activities in countries
throughout the world, and we own facilities and equipment at our various bases, including plants and offices. Our Group has
implemented measures to prevent our exposure to risks associated with the occurrence of disasters and accidents at these centers,
and we have implemented measures to reduce damages, including by insuring. However, there is no guarantee that completely
protects us against, or which can reduce as planned, the effects of disruptions to our business activities caused by disasters or
accidents at our Head Office or individual bases. In the event these kinds of unforeseeable events occurred, our Group’s businessresults and financial position may be subject to significant adverse effects.

Annual Report 201322

Consolidated Balance Sheets
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2012 and 2013

Yen
(Millions)

U.S. Dollars(Thousands)

2012

2013

2013

¥ 79,071¥101,053$  962,409

14,381

19,453

185,266

(79)

(58)

(552)

Short-term investments

12,675

12,113

115,361

Merchandise and finished goods

14,03016,819160,180

Work in process

1,055

1,262

12,019Raw materials and supplies

5,391

6,071

57,819Deferred tax assets – current

751

685

6,523

3,111

3,461

32,961

130,390

160,862

1,532,019

Land

6,023

6,029

57,419Buildings

38,422

43,831

417,438

Machinery and equipment

36,33145,806436,247

Construction in progress

4,316

2,163

20,60085,095

97,830931,714(45,220)(52,816)(503,009)

39,87445,014

428,704

24,34919,176

182,628

Long-term loans receivable

30

20

190

Deferred tax assets – non-current

357

325

3,095

Other investments and other assets

1,699

1,853

17,647

26,436

21,376

203,580¥196,702¥227,253$2,164,314

ASSETS
Current Assets:
Cash and bank deposits
Trade notes and accounts receivable
Less – Allowance for doubtful receivables

Other current assets
Total current assets

Property, Plant and Equipment:Less – Accumulated depreciation
Property, plant and equipment, net

Investments and Other Assets:
Investment securities

Total investments and other assets

Total Assets

23

MABUCHI MOTOR CO., LTD.

Yen
(Millions)

U.S. Dollars(Thousands)

2012

2013

¥  4,028¥  5,637$    53,685

–

113

1,076

1,040

2,241

21,342

Accrued bonuses due to employees

209

220

2,095

Accrued bonuses due to directors

44

74

704

1,126

–

–

15

49

466

6,551

6,719

63,99013,017

15,055

143,380

–

397

3,780

Provision for retirement benefits for employees

440

484

4,609

Asset retirement obligations

15

22

209

1,586

2,193

20,885

270

308

2,933

Total long-term liabilities

2,312

3,406

32,438

Total liabilities

15,33018,461

175,819

Net Assets:
Shareholders’ Equity
Common stock, no par value:
Authorized: 100,000,000 shares
Issued: 39,875,881 shares in 2012
37,875,881 shares in 2013
Additional paid-in capital

20,704
20,41920,704
20,419197,180
194,466

188,175

180,490

1,718,952(34,749)(20,084)(191,276)

194,551

201,529

1,919,323

(158)

2,162

20,590Foreign currency translation adjustments(13,020)

5,069

48,276

Total accumulated other comprehensive income(13,179)

7,232

68,876–29

276

Total net assets

181,372

208,791

1,988,485

Total Liabilities and Net Assets¥196,702¥227,253$2,164,314

LIABILITIES AND NET ASSETS

2013

Current Liabilities:
Trade notes and accounts payable
Short-term loans payable
Accrued income taxes

Provision for business structure improvement
Deferred tax liabilities – current
Other current liabilities
Total current liabilities
Long-term Liabilities:
Long-term loans payable

Deferred tax liabilities – non-current
Other long-term liabilities – non-current

Retained earnings
Treasury stock, at cost: 4,840,007 shares in 2012 and
2,825,415 shares in 2013
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gains (losses) on securities

Subscription rights to shares

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

Annual Report 201324

Consolidated Statements of Income
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2012 and 2013
Yen
(Millions)
Net Sales
Cost of Sales
Gross profit
Selling, General and Administrative Expenses
Operating income
Other Income (Expenses):
Interest and dividend income
Exchange gain, net
Gain on sale of raw material scrap
Loss on disposal of fixed assets
Gain on sales of investment securities
Business structure improvement expenses
Impairment loss
Loss on sales of investment securities
Loss on revaluation of investment securities
Other, net
Income before Income Taxes
Income Taxes:
Current
DeferredIncome before Minority Interests
Net income

U.S. Dollars(Thousands)

2012¥85,254
64,214
21,03915,987
5,052

2013¥108,401
81,546
26,854
17,5199,335

2013$1,032,390
776,628
255,752
166,847
88,904

617
3,647
1,045
(75)
–
(1,046)
–
(806)
(11)
4
3,374
8,426

600
5,624
1,182
(196)
13
–
(1,473)
–
–
(71)
5,679
15,015

5,714
53,561
11,257(1,866)123–(14,028)––(676)
54,085143,000

2,422
(381)
2,041
6,385
¥ 6,385

4,090
405
4,496
10,519¥ 10,519

38,952
3,857
42,819100,180$  100,180

2012

2013

U.S. Dollars
2013¥182.25–100.00¥ 300.21
300.18140.00$     2.85
2.85
1.33

Yen
Per Share Data:
Basic net income
Diluted net income
Dividends applicable to current year earnings

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

Consolidated Statements of Comprehensive Income
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2012 and 2013
Yen
(Millions)
Income before Minority Interests
Other Comprehensive Income
Net unrealized holding gains on securities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Minority interests

U.S. Dollars(Thousands)

2012¥ 6,3852013¥10,5192013$100,180

1,298
8,656
9,954
¥16,3392,321
18,08920,411¥30,930

22,104
172,276
194,390$294,571¥16,339–¥30,930–$294,571–

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

25

MABUCHI MOTOR CO., LTD.

Consolidated Statements of Changes in Net Assets
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2012 and 2013

Number of Shares(Thousands)

Yen(Millions)

U.S. Dollars(Thousands)

2012

2013

2012

2013

2013

39,875–39,87539,875(2,000)37,875¥ 20,704–¥ 20,704¥ 20,704–¥ 20,704$  197,180–$  197,180

Additional Paid-in Capital:
Beginning balanceEnding balance¥ 20,419¥ 20,419¥ 20,419¥ 20,419$  194,466$  194,466

Retained Earnings:
Beginning balance
Net income
Dividends paid
Treasury stock disposal
Treasury stock cancellation
Ending balance¥185,294
6,385(3,502)––¥188,175¥188,175
10,519(3,614)(231)(14,359)¥180,490$1,792,142
100,180(34,419)(2,200)(136,752)$1,718,952

Treasury Stock:
Beginning balance
Treasury stock acquisition
Treasury stock disposal
Treasury stock cancellation
Ending balance¥ (34,747)(2)––¥ (34,749)¥ (34,749)
(575)
881
14,359¥ (20,084)$  (330,942)(5,476)8,390
136,752$  (191,276)

Net Unrealized Holding Gains (Losses) on Securities:
Beginning balance
Net change during the year
Ending balance¥   (1,457)
1,298¥    (158)¥    (158)2,321¥  2,162$     (1,504)
22,104$   20,590

Foreign Currency Translation Adjustments:
Beginning balance
Net change during the year
Ending balance¥ (21,676)
8,656¥ (13,020)¥ (13,020)
18,089¥  5,069$  (124,000)
172,276$   48,276

Total Accumulated Other Comprehensive Income:
Beginning balance
Net change during the year
Ending balance¥ (23,133)
9,954¥ (13,179)¥ (13,179)
20,411¥  7,232$  (125,514)
194,390$   68,876

–
–
–

–
¥     29¥     29–$      276$      276

¥168,538
6,385(3,502)(2)–¥181,372
10,519(3,614)(575)
649$1,727,352
100,180(34,419)(5,476)
6,180

9,954

20,440

194,666¥181,372¥208,791$1,988,485

Common Stock:
Beginning balance
Treasury stock cancellation
Ending balance

Subscription Rights to Shares:
Beginning balance
Net change during the year
Ending balance
Total Net Assets:
Beginning balance
Net income
Dividends paid
Treasury stock acquisition
Treasury stock disposal
Net changes in items other thanthose in shareholders’ equity
Ending balance

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

Annual Report 201326

Consolidated Statements of Cash Flows
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2012 and 2013

Yen
(Millions)2012
Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Increase in allowance for retirement benefits, net of payments
Interest and dividend income
Exchange gain
(Gain) loss on sales of short-term investments and investment
securities
Loss on disposal of fixed assets
Loss on revaluation of investment securities
Increase in trade notes and accounts receivable
Decrease in inventories
Increase (decrease) in trade notes and accounts payable
Increase (decrease) in provision for business structure improvement
Other, net
SubtotalInterest and dividends received
Interest paid
Payments for directors retirement benefits
Income taxes paid
Net cash provided by operating activities

2013

2013

¥ 8,426 ¥ 15,015
3,579
4,571
–
1,473
5
32
(617)
(600)
(1,164)(1,877)$143,000
43,533
14,028304(5,714)(17,876)

806

(13)

(123)

71
11
(968)
508
(516)
1,034
(741)
10,435645(0)–(1,988)
9,091

196
–
(1,823)1,226
221(1,290)(1,534)
15,597611–(935)(3,522)
11,7501,866–(17,361)
11,6762,104(12,285)(14,609)148,5425,819–(8,904)(33,542)
111,904

Cash Flows from Investing Activities:
Increase in time deposits
Proceeds from withdrawal of time deposits
Purchases of short-term investments
Proceeds from sales of short-term investments
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by investing activities(7,511)
8,541(5,599)16,999(6,763)
24
–
2,702
(161)
8,230

(8,128)
7,437(5,901)
10,180(5,658)95(1,703)
8,020
(77)
4,264

(77,409)70,828(56,200)
96,952(53,885)904(16,219)
76,380(733)
40,609Cash Flows from Financing Activities:
Repayment of long-term loans payable
Proceeds from long-term loans payable
Cash dividends paid
Purchases of treasury stock
Proceeds from sales of treasury stock
Net cash used in financing activities––(3,507)(2)–(3,509)(56)
567(3,617)(575)
649(3,031)

(533)
5,400
(34,447)(5,476)
6,180(28,866)

4,824
18,637
61,266¥79,904

9,575
22,557
79,904¥102,462

91,190214,828
760,990$975,828

Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and Cash Equivalents at the Beginning of Year
Cash and Cash Equivalents at the End of Year

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

27

U.S.Dollars(Thousands)

MABUCHI MOTOR CO., LTD.

Notes to Consolidated Financial Statements
Mabuchi Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2012 and 2013

1. Summary of Significant Accounting Policies
a Basis of presentation
The accompanying consolidated financial statements of Mabuchi Motor Co., Ltd. (the “Company”) and consolidated subsidiaries areprepared in accordance with accounting principles generally accepted in Japan, which are different in certain respects to theapplication and disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated
financial statements prepared by the Company as required by the Financial Instruments and Exchange Law of Japan.
For the purpose of this report, certain reclassifications have been made to present the accompanying consolidated financial
statements in a format which is familiar to readers outside Japan.
The consolidated financial statements are expressed in Japanese yen. However, the consolidated financial statements as of, and forthe year ended, December 31, 2013 have been translated into United States dollars at a rate of ¥105 = U.S.$1, the approximate
exchange rate prevailing on December 31, 2013. Those U.S. dollar amounts presented in the consolidated financial statements andrelated notes are included solely for the reader. This translation should not be construed as a representation that all the amounts
shown could be converted into U.S. dollars.
b Principles of consolidation
The consolidated financial statements include the accounts of the Company and all significant subsidiaries. All significant intercompany balances, transactions, and profits have been eliminated on consolidation. Investments in unconsolidated subsidiaries arestated at cost.
c Translation of foreign currencies
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rate of exchange in effect at thebalance sheet date. Exchange gains and/or losses resulting from such translations are included in income before income taxes.
Foreign subsidiaries’ assets and liabilities are translated into yen at the rates of exchange in effect at the balance sheet date. The
components of net assets are translated at historical rates. Revenues and expenses are translated at the average rates of exchange forthe year. The resulting foreign currency translation adjustments are shown as a separate component of net assets.
d Cash equivalents
For the purposes of the statements of cash flows, the Company considers all highly-liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.
e Short-term investments and investment securities
The Company classifies securities as “trading securities,” when they are held for the purpose of earning capital gains in the short-term,“held-to-maturity,” where management has the positive intent and ability to hold the securities to maturity, and “other securities,”
where those securities are not classified as either trading or held-to-maturity, which represent primarily available-for-sale securities.
Held-to-maturity securities are reported at amortized cost. Available-for-sale securities are stated at fair value with changes in
unrealized holding gains or losses, net of the applicable income taxes, presented in a separate component of net assets. However,when the fair value of held-to-maturity securities and available-for-sale securities declines significantly and the decline is considered tobe irrecoverable, such unrealized holding losses are recognized as impairment losses. Available-for-sale securities for which fair value is
not readily determinable are stated at moving average cost.
Corporate bonds classified as held-to-maturity securities and debt securities (corporate bonds) classified as available-for-salesecurities include compound financial instruments.
The Company considers a decline in the value of securities to be irrecoverable where market values decline to more than 50% of
acquisition costs. Where market values decline to between 30% and 50% of acquisition costs, the Company judges the necessity ofrecognizing any impairment losses by assessing the potential of market values to recover taking into consideration declining pricetrends and other individually relevant factors.
f Inventories
Finished goods, work in process and raw materials are stated at average cost, however, where net realizable value is lower than cost,
the carrying value of the inventory is reduced.
g Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost. Depreciation is computed primarily using the declining-balance method for theCompany (except for certain buildings) and for overseas subsidiaries, principally using the straight-line method over their estimateduseful lives. Buildings acquired by the Company on or after April 1, 1998 are depreciated using the straight-line method. Maintenanceand repairs, including minor repairs and improvements, are charged to income as incurred.
h Leased assets
Assets under finance leases, except for those under lease agreements which stipulate the transfer of ownership of the leased assets tothe lessee, are depreciated using the straight-line method over the lease period and making the assumption that there is no residual
value.
i 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 current enacted tax rates.
j Retirement benefits
The Company and certain subsidiaries have funded noncontributory pension plans covering substantially all qualifying full-time
employees. Under the plan, eligible employees are entitled to a 10-year annuity or a lump-sum payment 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 the actuarially determined costs of the plan.
The allowance for retirement benefits is provided based on the amount of the retirement benefit obligation, reduced by the fairvalue of pension plan assets at the end of each fiscal year.
Actuarial gains and losses are amortized commencing from the year following the year in which the gains or losses arose, primarily
using the straight-line method within the average remaining years of service of the employees, which is mainly 10 years.
Prior service costs are amortized using the straight-line method mainly over 10 years.
Certain subsidiaries have pension plans similar to the Company or unfunded retirement and termination allowance plans for
qualifying employees. Any amounts required under the rules of the plans have been fully accrued.
k Derivative and hedging activities
If a forward foreign exchange contract is executed to hedge a future transaction denominated in a foreign currency, the Company
defers recognition of gains or losses on revaluation of the forward foreign exchange contract until the related losses or gains on the

Annual Report 201328

hedged items are recognized.
l Standards issued but not yet effective“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No. 26 of May 17, 2012) andthe “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 of May 17, 2012)
1) Overview
From the perspective of improving financial reporting and in light of global trends, the accounting standard and related guidance
have been revised mainly in the areas of the accounting treatment for unrecognized actuarial gains and losses, unrecognized priorservice costs, the calculation method for retirement benefit obligations and service costs, and the enhancement of disclosures.
2) Scheduled date of application
The Company will apply this standard from the beginning of annual periods beginning on or after January 1, 2014. However, theCompany will apply this standard regarding the revision of the determination of the calculation method for retirement benefit
obligations and service costs from the fiscal year beginning January 1, 2015.
3) Impact of application of accounting standards
The Company is currently evaluating the impact of the application of these accounting standards on the consolidated financial
statements.
“Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30 ofDecember 25, 2013)
1) Overview
From the date of application of this standard, the Company will account for common stock held by the ESOP Trust Utilizing
Employee Shareholding Association (the “ESOP Trust”) as treasury stock in the net assets section; however, the Company willrecognize disposal of treasury stock when it sells to the ESOP Trust. Also, any capital gain in the ESOP Trust fund will be accounted
for as a suspense liability to be settled in the future. If the ESOP Trust fund reports a loss, a suspense asset will be recorded.
Additionally, when a debt obligation is expected to remain on termination of the ESOP Trust fund, a provision will be recorded.
2) Scheduled date of application
The Company will apply this standard from the fiscal year beginning January 1, 2014.
3) Impact of application of accounting standard
The impact of the application of this accounting standard on the consolidated financial statements will be immaterial.
m Additional information
The ESOP Trust is a trust-type employee incentive plan that uses the mechanism of an employee shareholding association, with the
purpose of attempting to expand the savings system that promotes the asset accumulation of employees who own the Company’s
shares (enhancement of the employee welfare programs).
A major purpose of introducing the ESOP Trust is to improve welfare programs for employees who support the Company’s growth.
The introduction thereof also aims to enhance the Company’s corporate value over the medium to long term by granting an incentive
toward high stock prices and creating greater awareness of the Company’s business performance and stock value among its
employees.
The Company established a trust in which certain employee members of the Mabuchi Motor Employee Shareholding Association(hereinafter “Our Shareholding Association”) who meet certain requirements were its beneficiaries. During a predetermined period for
acquisition, said trust, or the ESOP Trust, acquired the number of the Company’s shares that Our Shareholding Association was
expected to acquire over the next several years. Afterward, the ESOP Trust sells off the Company’s shares to Our Shareholding
Association on a fixed day every month.
From the beginning of the year ended December 31, 2013, the Company considers common stock held by the ESOP Trust as treasury
stock. As a result the common stock held by the ESOP Trust is accounted for as “Treasury Stock” in the net assets section of theconsolidated balance sheet as of December 31, 2013. For the purpose of calculating net income per share, the common stock held by
the ESOP Trust is included in treasury stock.
The number of shares of common stock held by the ESOP Trust at December 31, 2013 was 95 thousand with a book value of ¥485
million ($4,619 thousand).
Details of the loans payable for the borrowings of the ESOP Trust that have been guaranteed by the Company at December 31, 2013
were as follows:
Yen (Millions)Short-term loans payable
Long-term loans payable
Total

2012
–
–
–

U.S. Dollars (Thousands)
2013$1,076
3,780$4,866

2013
¥113
397
¥511

2. Accounting Changes
In accordance with an amendment to the Corporation Tax Law of Japan, effective April 1, 2012, the Company has changed thedepreciation method for property, plant and equipment, except for certain buildings, acquired on or after January 1, 2013 to reflect
the methods prescribed in the amended Corporation Tax Law. The previously applied 250% declining-balance method was changed to
the 200% declining-balance method. The impact of the application of this accounting change on the consolidated financial
statements was immaterial.

3. Changes in Net Assets
Information regarding changes in net assets for the years ended December 31, 2012 and 2013 is as follows:a Shares issued and outstanding / Treasury stock2012
Type of shares
Number of shares as of December 31, 2011
Increase in number of shares
Decrease in number of shares
Number of shares as of December 31, 2012

Shares Issued (Thousands)
Common stock
39,875––39,875

Treasury Stock (Thousands)
Common stock
4,839
0
–
4,840

Note: 1. The increase in the number of shares of treasury stock was due to the purchase of 0 thousand shares of less than one unit.

29

MABUCHI MOTOR CO., LTD.

Dividends paid during the fiscal year ended December 31, 2012
2012
Shareholders’ Meeting
March 29, 2012
¥1,751 million¥50
December 31, 2011
March 30, 2012

Resolution by
Total amount of dividends
Dividend per share
Record date
Effective date

Board of Directors’ Meeting
August 10, 2012
¥1,751 million¥50
June 30, 2012
September 14, 2012

Dividends whose record date was in the fiscal year ended December 31, 2012 but whose effective date was in the following fiscal year.
2012
Shareholders’ Meeting
March 28, 2013
¥1,751 million¥50
December 31, 2012
March 29, 2013

Resolution by
Total amount of dividends
Dividend per share
Record date
Effective date2013

Shares Issued (Thousands)
Common stock
39,875–2,000
37,875

Type of shares
Number of shares as of December 31, 2012
Increase in number of shares
Decrease in number of shares
Number of shares as of December 31, 2013

Treasury Stock (Thousands)
Common stock
4,840
112
2,127
2,825

Notes: 1. The decrease in the number of shares issued was due to the cancellation of 2,000 thousand shares by resolution of the Boardof Directors.
2. The increase in the number of shares of treasury stock was due to the purchase of 111 thousand shares by the ESOP Trustand the purchase of 1 thousand shares of less than one unit.
3. The decrease in the number of treasury stock was due to cancellation of 2,000 thousand shares by resolution of the Board of
Directors, sales of 111 thousand shares to the ESOP Trust and sales of 16 thousand shares to Our Shareholding Association by
the ESOP Trust.
4. There were 95 thousand shares of treasury stock held by the ESOP Trust included in the number of treasury stock as ofDecember 31, 2013.
Dividends paid during the fiscal year ended December 31, 20132013
Shareholders’ Meeting
March 28, 2013
¥1,751 million($16,676 thousand)¥50($0.47)
December 31, 2012
March 29, 2013

Resolution by
Total amount of dividends
Dividend per share
Record date
Effective date

Board of Directors’ Meeting
August 13, 2013
¥1,862 million($17,733 thousand)¥53($0.50)June 30, 2013
September 13, 2013

Note: D
 ividends paid to the ESOP Trust in the amount of ¥5 million ($47 thousand) have been included in the total amount ofdividends.
Dividends whose record date was in the fiscal year ended December 31, 2013 but whose effective date was in the following fiscal year.
2013
Shareholders’ Meeting
March 28, 2014
¥3,057 million($29,114 thousand)¥87($0.82)
December 31, 2013
March 31, 2014

Resolution by
Total amount of dividends
Dividend per share
Record date
Effective date

Note: D
 ividends paid to the ESOP Trust in the amount of ¥8 million ($76 thousand) have been included in the total amount ofdividends.
b Share subscription rights
Number of shares issued
Company

Description

Parentcompany

Subscription
rights as stock
options
Total

Type of sharesissuedNumber ofshares at
January 1,
2013

Increase

Decrease

Number ofshares at
December 31,
2013

Balance at
December 31,
2013(Millions)

U.S. Dollars(Thousands)

Common stock

–

–

–

–

¥29

$276

–

–

–

–

–

¥29

$276

c Stock options
The Company issued the following share subscription rights for the purchase of new shares of common stock in accordance with the
Corporation Law of Japan

Annual Report 201330

For the years ended December 31, 2013 the Company recognized and allocated share-based compensation costs as follows:
Yen (Millions)
Selling, general and administrative expenses
Total

2012
–
–

U.S. Dollars (Thousands)
2013
$276
$276

2013
¥29
¥29

A description of the 2013 Stock Option Plan as of December 31, 2013 is summarized as follows:2013 Stock Option Plan
6 directors of the Company
5,970 shares of common stock
May 20, 2013
None
None
May 21, 2013 to May 20, 2033

Grantee categories and number of grantees
Number of shares
Grant date
Vesting conditions
Service period
Exercisable period

The following table summarizes the option activity under the stock option plan referred to above during the year ended December 31,
2013
2013 Stock Option Plan
Non-vested:
Beginning of the year
GrantedForfeited
VestedEnd of the year

–
5,970
–
5,970
–

Vested:Beginning of the year
VestedExercised
Forfeited
End of the year

–
5,970
–
–
5,970

Price information of stock options for the 2013 Stock Option Plan as of December 31, 2013 is summarized as follows:2013 Stock Option Plan
1
–
4,967

Exercise price (yen)Average price on exercise (yen)Fair value on grant date (yen)Fair value as of the grant date for the stock options issued during the year ended December 31, 2013 was estimated using the BlackScholes option pricing model with the following assumptions:2013 Stock Option Plan
26.5%
5.6 years¥100 per share
0.43%

Expected volatility *1
Expected remaining period *2
Expected dividend yield *3
Risk-free interest rate *4

Expected volatility is estimated based on a period of 5 years and 7 months (October 8, 2008 to May 13, 2013).
Expected remaining period is based on the estimated term of incumbency of directors.
*3
Expected dividend yield is based on the actual dividend amount for interim and year end dividend of 2012.
*4	Risk-free interest rate represents the interest rate of Japanese government bonds whose remaining period corresponds to the
expected remaining period of the stock options.
*1*2

Because it is difficult to estimate the forfeited number of stock options for future periods, an estimation of the vested number is based
upon actual forfeitures in prior periods.

4. Cash and Cash Equivalents
Cash and cash equivalents at the end of the year in the accompanying consolidated statements of cash flows are reconciled to cash
and bank deposits reported in the accompanying consolidated balance sheets as of December 31, 2012 and 2013 as follows:
Yen (Millions)
Cash and bank deposits
Time deposits with maturities over three months at the time of purchase
Short-term investments
Securities exposed to price risk
Cash and cash equivalents

2012¥79,071(3,679)12,675(8,164)¥79,9042013¥101,053(5,104)
12,113(5,600)¥102,462

U.S. Dollars (Thousands)
2013$962,409(48,609)
115,361(53,333)$975,828

Significant non-cash transactions for the years ended December 31, 2012 and 2013 were as follows:
Yen (Millions)
2012
Treasury stock cancellation

31

MABUCHI MOTOR CO., LTD.

–2013
¥14,359

U.S. Dollars (Thousands)
2013$136,752

5. Financial Instruments(1) Financial Instrumentsa. Policies for financial instruments
The Company funds R&D expenditure and equipment investment through retained earnings to maintain a sound financial position.
According to this policy, the Company limits the management of surplus funds to short-term deposits and other highly secure financial
assets. The Company uses derivatives to mitigate risks as described below, and does not engage in speculative transactions.
b. Financial instruments description and risks
Trade notes and accounts receivable are exposed to customer credit risk and some are also exposed to foreign currency risk.
Short-term investments and investment securities, primarily held-to-maturity securities, other securities and investments in thestocks of trading partners, are exposed to the risk of fluctuations in market price.
Trade notes and accounts payable are due within one year, and some are exposed to foreign currency risk.
The Company uses forward foreign exchange contracts to hedge the risk of foreign exchange fluctuations associated withreceivables and payables denominated in foreign currencies.
c. Risk management of financial instruments
1. Management of credit risk (risks associated with the default of counterparties)
The Company and its consolidated subsidiaries manage credit risk in compliance with internal control rules and procedures. The due
dates and the balances of trade notes and accounts receivable from major counterparties are monitored and managed regularly toensure early detection and to mitigate the risk of doubtful receivables.
2. Management of market risk (risks associated with fluctuations in foreign exchange rates and interest rates)
The Company and some of its consolidated subsidiaries hedge the risk of foreign exchange rate fluctuations on foreign currency
denominated receivables and payables, using foreign exchange forward contracts on a monthly and individual currency basis. The
Company enters into exchange contracts based on the decision of the Board of Directors and these are monitored regularly by thehead office administrative department.
The Company monitors the fair value and the financial position of the respective issuers of short-term investments and investment
securities regularly in the head office administrative department, and continually reviews the condition of stocks held. The Company
reports the condition of stocks held and their fair value to the Board of Directors, and monitors the rating and financial conditions ofissuers.
3. Management of liquidity risk related to financing activities (risk of non-payment on due date)
The Company manages liquidity risk centrally through the administrative department, which ensures a certain amount of liquidity
through the preparation and update of cash forecasts based on reports from each department and the finance plans prepared by theaccounting departments of each subsidiary.
d. Supplemental information on the fair value of financial instruments
The Company calculates the fair value of financial instruments based on market prices, or by using reasonable estimates when market
prices are not available.
These estimates include variable factors, and therefore may change depending on changes in the underlying assumptions. The
contract amounts of the derivatives are described in Note 7. Derivative Financial Instruments below and are not indicative of themarket risk associated with derivatives transactions.
(2) Fair Value of Financial Instruments
The carrying value, fair value and variance for financial instruments as of December 31, 2012 and 2013 are as follows. Fair values thatare not readily determinable are not included in the following table.

Assets:(1) Cash and bank deposits(2) Trade notes and accounts receivable(3) Short-term investments and investment securities
Total assets
Liabilities:(1) Trade notes and accounts payable
Total liabilities

Carrying value

Yen (Millions)2012
Fair value

79,071
14,381
36,914130,368

79,071
14,381
36,686130,140

–
–
(228)
(228)

4,028
4,028

4,028
4,028

–
–

Yen (Millions)

Variance

U.S. Dollars (Thousands)
2013

Carrying value

Fair value

Variance

Assets:(1) Cash and bank deposits

101,053

101,053(2) Trade notes and accounts receivable

19,453(3) Short-term investments and investment
securities
Total assets
Liabilities:(1) Trade notes and accounts payable
Total liabilities

Carrying value

Fair value

Variance–

962,409

962,409–19,453–

185,266

185,266–

31,17931,810631

296,942302,952

6,009

151,686

152,317631

1,444,628

1,450,638

6,009

5,637
5,637

5,637
5,637

–
–

53,68553,68553,68553,685––

1. Method for calculating the fair values of financial instruments, short-term investments and derivative transactions
Assets:(1) Cash and bank deposits and (2) Trade notes and accounts receivable
The carrying value is used for the fair value of these short-term items because these amounts are approximately the same.
(3) Short-term investments and investment securities
Market prices on securities exchanges are used to determine the fair value of stock. Prices quoted by exchanges or financial institutions
are used to determine the fair value of bonds.
Liabilities:(1) Trade notes and accounts payable
The carrying value is used for the fair value of these short-term items because these amounts are approximately the same.

Annual Report 201332

Derivative instruments
Please refer to Note 7. Derivative Financial Instruments.
2. Carrying value of financial instruments for which fair values were extremely difficult to determine
Yen (Millions)
2012
110

Unlisted stocks

Yen (Millions)
2013
111

U.S. Dollars (Thousands)
2013
1,057

These items are not included in “(3) Short-term investments and investment securities” because market prices do not exist for these
items and their fair values are not readily determinable.
3. Redemption schedule for receivables and marketable securities with maturities at December 31, 2012 and 2013

Cash and bank deposits
Trade notes and accounts receivable
Short-term investments and investment securities
Held-to-maturity securities
Corporate bonds
Other securities
Corporate bonds
Certificates of deposit
Investment trust
Total

Within 1 year
79,071
14,381

Yen (Millions)2012
1-5 years––

5-10 years
–
–

1,800

4,375

13,000

6,199
2,000
180
103,633

1,200
–
–
5,575

–
–
–
13,000Yen (Millions)

U.S. Dollars (Thousands)
2013

Cash and bank deposits
Trade notes and accounts
receivable
Short-term investments andinvestment securities
Held-to-maturity securities
Corporate bonds
Commercial paper
Other securities
Corporate bonds
Certificates of deposit
Investment trust
Total

Within 1 year
101,053

1-5 years–

5-10 years–

Within 1 year
962,40919,453

–

–

–
500

5,375
–

5,600
2,000
1,500
130,106

700
–
–
6,075

1-5 years–

5-10 years–

185,266

–

–

4,000
–

–
4,761

51,190–38,095
–

–
–
–
4,000

53,33319,047
14,285
1,239,104

6,666
–
–
57,857–––38,095

6. Investment Securities
The carrying value, fair value and variance for held-to-maturity securities as of December 31, 2012 and 2013 were as follows:(1) Held-to-maturity securities

Carrying value

Yen (Millions)2012
Fair value

2,375
2,375

2,977
2,977

602
602

16,80016,80019,175

15,96915,96918,947

(830)
(830)
(228)

Securities whose fair value exceeds their carrying value
Corporate bonds
Subtotal
Securities whose carrying value exceeds their fair value
Corporate bonds
Subtotal
Total
Yen (Millions)

Variance

U.S. Dollars (Thousands)
2013

Securities whose fair value exceeds
their carrying value
Corporate bonds
Subtotal
Securities whose carrying value
exceeds their fair value
Corporate bonds
Subtotal
Total

33

MABUCHI MOTOR CO., LTD.

Carrying value

Fair value

Variance

Carrying value

Fair value

Variance

4,375
4,375

5,096
5,096

721
721

41,666
41,666

48,53348,533

6,866
6,866

5,499
5,499
9,875

5,409
5,409
10,506

(90)
(90)
631

52,371
52,371
94,04751,51451,514
100,057

(857)
(857)
6,009

The acquisition cost, carrying value and variance for other securities as of December 31, 2012 and 2013 were as follows:(2) Other securities

Acquisition cost

Yen (Millions)
2012
Carrying value

Variance

983
1,000
1,983

1,858
1,002
2,860

874
2
877

1,856
6,399
7,430
15,686
17,669

1,561
6,391
6,924
14,877
17,738

(294)
(8)
(505)
(808)
68

Securities whose carrying value exceeds their acquisition cost
Stock
Corporate bonds
Subtotal
Securities whose acquisition cost exceeds their carrying value
Stock
Corporate bonds
Other
Subtotal
Total
Yen (Millions)

U.S. Dollars (Thousands)
2013

Acquisition cost

Carrying value

Variance

Acquisition cost

Carrying value

Variance

3,285
2,103
1,627
7,016

5,804
2,104
2,092
10,001

2,519
0
464
2,984

31,28520,02815,49566,81955,276
20,03819,923
95,24723,9900
4,419
28,419

54
4,201
7,116
11,373
18,389

44
4,200
7,058
11,302
21,304

(9)
(1)
(58)
(70)
2,914

514
40,00967,771
108,314
175,133

419
40,00067,219107,638
202,895

(85)
(9)
(552)
(666)
27,752

Securities whose carrying value
exceeds their acquisition cost
Stock
Corporate bonds
Other
Subtotal
Securities whose acquisition costexceeds their carrying value
Stock
Corporate bonds
Other
Subtotal
Total

Unlisted stocks are not included in “Other securities” because their market prices do not exist and their fair values are not readily
determinable.

7. Derivative Financial Instruments
The Company enters into forward exchange contracts and options, and forward precious metal contracts, as a normal part of risk
management efforts. The Company also utilizes compound financial instruments for the purpose of efficient management of surplus
funds. However, only principal guaranteed instruments are used, and derivatives are not used for speculative trading purposes. As aresult, the Company is exposed to risk of currency rate fluctuations and commodity price risk. The Company is also exposed to credit
related losses in the event of the nonperformance of the counterparties to foreign exchange contracts, precious metal contracts andcompound instruments. Management believes such credit risks are minor because of the high credit worthiness of the counterparties
and as such financial instruments are not held for trading purposes.
Forward precious metal contracts are used by the Company to hedge the risk of changes in market prices resulting from thepurchase of precious metals as raw materials for motor products. The contracted amounts outstanding at December 31, 2012 and2013 were ¥1,509 million and ¥3,604 million ($34,323 thousand), respectively.
The estimated fair values at December 31, 2012 and 2013 were ¥1,697 million and ¥ 3,579 million ($34,085 thousand), respectively.
These forward contracts are long-term purchase contracts of raw materials, and are also not in the scope of the accounting
standards of financial instruments.

8. Retirement Benefit Plans
The table below sets forth the plans’ statuses and amounts recognized in the balance sheets at December 31, 2012 and 2013.
Yen (Millions)
Projected benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized prior service cost
Unrecognized actuarial gains
Net retirement benefit obligation
Prepaid pension costAccrued retirement benefits

2012¥(9,456)
9,196
(260)
106
(153)
(307)
133
¥   (440)2013¥(10,280)
9,869
(411)
85
(46)
(372)
111
¥   (484)

U.S. Dollars (Thousands)
2013$(97,904)
93,990(3,914)809(438)(3,542)
1,057$ (4,609)

Annual Report 201334

The components of net periodic pension cost for the years ended December 31, 2012 and 2013 were as follows:
Yen (Millions)
Service cost
Interest cost
Amortization of prior service cost
Expected return on plan assets
Amortization of unrecognized actuarial gain
Net periodic pension cost

2012
¥ 551
161
20
(111)
(44)
¥ 578

2013
¥ 661
171
20
(105)
(56)
¥ 691

U.S. Dollars (Thousands)
2013$ 6,295
1,628
190(1,000)(533)$ 6,580

Other than the above pension cost, temporary severance benefit costs of ¥142 million for the year ended December 31, 2012 wereincurred. There were no temporary severance benefit costs incurred for the year ended December 31, 2013.
The assumptions used in accounting for the above plans were as follows:2012
mainly 2.0%
mainly 1.0%

Discount rate
Expected rate of return on plan assets

2013
mainly 2.0%
mainly 1.0%

9. Income Taxes
The Company is subject to a number of taxes based on income with normal aggregate tax rates of approximately 40.4% and 37.8%
for the years ended December 31, 2012 and 2013, respectively. Foreign subsidiaries are subject to income taxes in the countries inwhich 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, 2012 and 2013.
2012
%
40.4
(0.3)
(10.0)
1.6
(9.4)
(0.6)
2.5
24.2

Statutory income tax rate
Tax credits on dividend income
Different tax rates applied to foreign subsidiaries
Undistributed earnings in foreign subsidiaries
Valuation allowance
Tax deduction
Other, net
Effective income tax rate

2013
%
37.8
0.5
(10.9)
0.6
0.7
(2.5)
3.7
29.9

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets andliabilities at December 31, 2012 and 2013 were as follows:
Yen (Millions)Deferred tax assets:
Unrealized profits on inventories and fixed assets
Evaluation losses on investment securities and other assets
Depreciation
Allowance for retirement benefits
Unrealized loss on available-for-sale securities
Net operating loss carry forwards
Allowance for restructuring of production bases
Impairment loss
Other
Valuation allowance
Total
Deferred tax liabilities:
Tax on undistributed earnings in foreign subsidiaries
Unrealized holding gain on securities
Other
Total
As reported in the consolidated balance sheet:
Deferred tax assets
Deferred tax liabilities

35

MABUCHI MOTOR CO., LTD.

2012

2013

U.S. Dollars (Thousands)
2013¥    752
911
91
89
286
108
281
–
742
(2,048)¥ 1,216¥    871
911
114
148
25
325
–
368
531
(2,149)¥ 1,147$   8,295
8,676
1,085
1,409
238
3,095
–
3,504
5,057
(20,466)$ 10,923¥ 1,368228
114¥ 1,710¥ 1,457751
169¥ 2,379$ 13,876
7,152
1,609
$ 22,657¥ 1,108¥ 1,602¥ 1,011¥ 2,243$   9,628$ 21,361

10. Consolidated Statements of Comprehensive Income
The following table presents reclassification adjustments and tax effects for each component of other comprehensive income for theyears ended December 31, 2012 and 2013.
Yen (Millions)
Unrealized holding gains on securities:
Amount arising during the year
Reclassification adjustments for gains and losses included in net income
Amount before tax effectTax effectUnrealized holding gains on securities
Foreign currency translation adjustments:
Amount arising during the year
Total other comprehensive income

2012

2013

U.S. Dollars (Thousands)
2013¥2,154
(817)
1,337
(39)
1,298

¥ 2,858
(13)
2,844
(522)
2,321

$ 27,219(123)
27,085(4,971)
22,104

8,656¥9,95418,089¥20,411

172,276$194,390

11. Shareholders’ Equity
Under the Japanese Corporation Law (“the Law”), the entire amount paid for new shares is required to be designated as common
stock. However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price ofthe new shares as additional paid-in capital, which is included in capital surplus.
Under the Law, where a distribution of earnings is made, the smaller of an amount equal to 10% of the dividend or the excess, ifany, of 25% of common stock over the total of additional paid-in capital and the legal earnings reserve must be set aside as additional
paid-in capital or as part of the legal earnings reserve. The legal earnings reserve is included in retained earnings in the accompanying
consolidated balance sheets.
As of December 31, 2013, the total amount of additional paid-in capital and the legal earnings reserve exceeded 25% of thecommon stock, therefore, no additional transfer is required.
Additional paid-in capital and the legal earnings reserve may not be distributed as dividends. However, by a resolution at ashareholders’ meeting, additional paid-in capital and the legal earnings reserve may be transferred to other retained earnings andcapital surplus, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial statementsof the Company in accordance with the Law.
Year end dividends are approved by the shareholders after the end of each fiscal year, and semiannual interim cash dividends are
declared by the Board of Directors after the end of each interim six-month period.
On September 13, 2013, interim dividends (¥53 or $0.50 per share) totaling ¥1,862 million ($17,733 thousand) were paid toshareholders based on the shareholders’ record at June 30, 2013. On March 28, 2014, the shareholders approved a declaration ofdividends (¥87 or $0.82 per share) totaling ¥3,057 million ($29,114 thousand).

12. Per Share Data
Net income per share was computed based on the net income reported in the consolidated statements of income and the weighted
average number of shares of common stock outstanding during each year. In accordance with the accounting standard for earnings
per share, basic net income per share was computed based on the net income available for distribution to shareholders of common
stock and the weighted average number of shares of common stock outstanding during the year.
Diluted net income per share was computed based on the net income available for distribution to the shareholders and theweighted average number of shares of common stock outstanding during each year after giving effect to the dilutive potential ofshares of common stock to be issued upon exercise of stock subscription rights.
Net assets per share are computed based on total net assets, excluding share subscription rights, and the number of shares ofcommon stock outstanding at the year end.
Reconciliation of the number of shares for computation of basic and diluted net income per share for the years ended December 31,
2012 and 2013 were as follows:(Thousands of shares)
Weighted average number of shares for basic net income
Increase in shares of common stock
Exercise of share subscription rights
Number of shares for dilutive net income

2012
35,0362013
35,039–35,036

3
35,043

13. Selling, General and Administrative Expenses
The main components of “Selling, General and Administrative Expenses” for the years ended December 31, 2012 and 2013 were as
follows:
Yen (Millions)
Packing and freightage expenses
Salaries and wages
Provision for bonuses due to employees
Provision for bonuses due to directors
Retirement benefit expenses
Employee benefit costs
Depreciation
Provision (Reversal) of allowance for doubtful debts
Research expenses

2012¥  846
6,747
207
44
347
1,191
1,231
14
894

2013
¥1,050
7,315
228
74
564
1,282
1,285
(28)
1,031

U.S. Dollars (Thousands)
2013$10,000
69,666
2,171
704
5,371
12,20912,238(266)
9,819

Annual Report 201336

14. Contingent Liabilities
As of December 31, 2013, the Company is contingently liable principally for forward precious metal contracts in the amount of ¥3,604
million ($34,323 thousand).

15. Research and Development Expenses
Expenditures relating to research and development activities are charged to income as incurred and amounted to ¥3,794 million and¥3,763 million ($35,838 thousand) for the years ended December 31, 2012 and 2013, respectively.

16. Impairment of Fixed Assets
There were no impairment losses relating to fixed assets for the year ended December 31, 2012. Impairment losses relating to a fixed
asset group in a subsidiary in China of ¥1,473 million ($14,028 thousand) were incurred due to the decline in demand for small motors
for DVD players during the year ended December 31, 2013. The recoverable amount of the fixed asset group was calculated bydiscounting the estimated future cash flows at a discount rate of 9.9% per annum. Accumulated losses on impairment are directlydeducted from the related assets.

17. Segment Information
1. Overview of reporting segments
The reporting segments of the Company and its consolidated subsidiaries are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment of the Company and its consolidated subsidiaries, to determine theallocation of management resources and evaluate business results.
The Company and its consolidated subsidiaries specialize in small motors manufacturing and sales as a single line of business. The
Company is in charge of the business activities in Japan. Meanwhile, subsidiaries located overseas are in charge of operations in Asia,
the U.S.A., Europe, etc. Subsidiaries located overseas are independent management units and propose comprehensive productstrategies while pursuing business expansion.
Since the Company and its consolidated subsidiaries are composed of regional segments based on a manufacturing and sellingsystem, the Company and its consolidated subsidiaries have designated “Japan,” “Asia,” “U.S.A.” and “Europe” as their reporting
segments.
2. Basis of measurement for reporting segment income or loss, segment assets and other material items
The accounting policies and methods for the Group’s reporting segments are the same as described in “1. Summary of Significant
Accounting Policies.”

37

MABUCHI MOTOR CO., LTD.

3. Information concerning net sales, income or loss, assets, liabilities and other items by reporting segment
Yen (Millions)
Net sales:Japan
External customers
Intersegment
Total
Asia
External customers
Intersegment
Total
U.S.A.
External customers
Intersegment
Total
EuropeExternal customers
Intersegment
Total
Corporate and elimination
Consolidated
Segment Income (Loss):
Japan
Asia
U.S.A.
EuropeCorporate and elimination
Consolidated
Segment Assets:
Japan
Asia
U.S.A.
EuropeCorporate and elimination
Consolidated
Others:Depreciation and Amortization:
Japan
Asia
U.S.A.
EuropeCorporate and elimination
Consolidated
Increase in Tangible and Intangible Fixed Assets:
Japan
Asia
U.S.A.
EuropeCorporate and elimination
Consolidated

2012

2013

U.S. Dollars (Thousands)
2013¥   10,177
53,58063,757¥   10,461
70,26380,725$    99,628
669,171
768,809

52,151
54,579106,73166,75068,871
135,622635,714655,914
1,291,638

8,714
–
8,714

11,475–
11,475109,285–
109,285

14,211–
14,211(108,160)¥   85,254

19,713–
19,713(139,135)¥ 108,401

187,742–
187,742(1,325,095)$ 1,032,390¥     (1,663)
4,964
498
805
447
¥   5,052¥   1,490
7,535
328
536
(555)
¥   9,335$    14,190
71,761
3,123
5,104(5,285)$    88,904¥   67,451
110,813
4,122
7,216
7,097
¥ 196,702¥   75,051
133,718
4,894
9,767
3,821
¥ 227,253$   714,771
1,273,504
46,60993,01936,390$ 2,164,314¥     944
2,819
3
6
(194)
¥   3,579¥     862
3,972
5
10
(278)
¥   4,571$     8,209
37,82847
95(2,647)$    43,533¥     2708,335
5
4
(1,170)¥   7,445¥     500
5,479
7
11
(204)
¥   5,795$     4,761
52,18066
104(1,942)$    55,190

Notes: 1. (1) T he reported “segment income (loss) corporate and elimination” of ¥447 million in fiscal 2012 and ¥(555) million($(5,285) thousand) in fiscal 2013 represent intersegment transaction eliminations.
		 (2) The reported “segment assets corporate and elimination” include: corporate assets of ¥80,799 million in fiscal 2012 and¥85,535 million ($814,619 thousand) in fiscal 2013, not allocated to each segment; intersegment debt and credit
eliminations of ¥73,701 million in fiscal 2012 and ¥81,714 million ($778,228 thousand) in fiscal 2013.
		 (3) T he reported “depreciation and amortization corporate and elimination” of ¥194 million in fiscal 2012 and ¥278 million($2,647 thousand) in fiscal 2013 represent intersegment transaction eliminations.
		 (4) The reported “increase in tangible and intangible fixed assets corporate and elimination” of ¥1,170 million in fiscal 2012and ¥204 million ($1,942 thousand) in fiscal 2013 represent intersegment transaction eliminations.
2. Segment income (loss) is adjusted for operating income reported in the consolidated statements of income.
Related information
Information on net sales, tangible fixed assets and impairment losses by geographic area is summarized as follows. There is no
information on major customers because individual sales ratios for major customers are lower than 10% of total net sales.
Geographical Information
Net Sales
Japan
Asia
U.S.A.
EuropeTotal

2012

Yen (Millions)2013

U.S. Dollars (Thousands)
2013¥ 9,718
52,6098,714
14,211¥85,254¥ 10,113
67,09911,475
19,713¥108,401$   96,314
639,038
109,285
187,742$1,032,390

Annual Report 201338

Yen (Millions)Tangible Fixed Assets
Japan
Asia
U.S.A.
Europe
Total

2012

2013

U.S. Dollars (Thousands)
2013¥16,526
23,30712
28¥39,874¥16,172
28,7891734¥45,014$154,019
274,180161
323$428,704

2013

U.S. Dollars (Thousands)
2013¥    –
1,473––¥1,473$     –
14,028––$14,028

Yen (Millions)2012
Impairment Loss
Japan
Asia
U.S.A.
Europe
Total

¥–
–
–
–
¥–

18. Subsequent Events(Stock-based compensation)
On March 28, 2014, the Company resolved, at the Board of Directors’ meeting, to issue subscription rights to shares for directors
based on Articles 236, 238 and 240 of the Law, for the purpose of increasing their willingness to serve and motivation toward
improved corporate value and raised share prices.
Details
Resolution date
Classification and number of grantees
Type of shares to be issued under the subscription rights to shares
Number of shares
Amount to be paid at the time of exercise of the subscription rights to shares
Period during which the subscription rights to shares may be exercised
Conditions for the exercise of the subscription rights to shares
Matters relating to restriction on transfer of the subscription rights to shares
Matters relating to the distribution of the subscription rights to shares following a reorganization

March 28, 2014
Six directors of the Company (excluding outside directors)
Common stock
3,990 shares¥1 per share
Note 8Note 9Note 11
Note 13

Notes:(1) Designation of the subscription rights to shares
Mabuchi Motor Co., Ltd. 2nd Subscription Rights to Shares (Stock-compensation Type)(2) Eligible persons to whom the subscription rights to shares are allotted and the number thereofSix (6) directors of the Company(3) Total number of the subscription rights to shares: 399 units
The above figure is the planned number to be allotted and therefore if the total number of the subscription rights to shares allotteddecreases, for example, in the case where applications for the subscription are not made, the total number of the subscription rights toshares to be allotted shall be the total number of the subscription rights to shares issued.
(4) The type and number of shares underlying the subscription rights to shares
The type of shares underlying the subscription rights to shares shall be the Company’s common stock, and the number of shares
underlying for each subscription right to shares (hereinafter the “Number of Granted Shares”) shall be ten (10).
In case where the Company conducts stock splits or reverse stock splits for the Company’s common stock, the Number of Granted
Shares shall be adjusted according to the following formula, and the resulting fractions of less than one (1) share, if any, shall be
rounded down.
Number of Granted Shares after adjustment = Number of Granted Shares before adjustment × Ratio of the stock split or reverse
stock split
In case where the Company conducts a merger, a demerger or a gratis allotment of shares after the allotment date or any
adjustment to the Number of Granted Shares is necessary mutatis mutandis to these cases, the Number of Granted Shares shall beappropriately adjusted within a reasonable range.
(5) Subscription amount for the subscription rights to shares
The subscription amount for the subscription rights to shares shall be the value based on the fair value, which is calculated using theBlack-Scholes value calculation model as of the allotment date of the subscription rights to shares. Persons to whom the subscription
rights to shares have been allotted (hereinafter the “Subscription Right Holders”) shall offset the claim for compensation held thereby
toward the Company instead of payment of said subscription amount.
(6) Allotment date of the subscription rights to shares
April 24, 2014
(7) Amount to be paid at the time of exercise of the subscription rights to shares
Amount to be paid per share in exercising subscription rights to shares shall be one (1) yen, and total amount to be paid is calculated
by multiplying one (1) yen by the number of shares to be issued.
(8) Period during which the subscription rights to shares may be exercised
The period during which the subscription rights to shares may be exercised shall be from April 22, 2014 to April 21, 2034.
Provided, however, that if the last day of such exercise period falls on a holiday of the Company, the business day preceding said
date shall be the last exercisable day.
(9) Conditions for the exercise of the subscription rights to shares
1) A Subscription Right Holder shall be allowed to exercise the subscription rights to shares, solely in a lump sum, only within aperiod of ten (10) days after he/she forfeits the director’s position of the Company.
2) In case where a Subscription Right Holder dies, his/her heir may exercise the subscription rights to shares. Provided, however,39

MABUCHI MOTOR CO., LTD.

that any person who has inherited the subscription rights to shares from the heir of an allotted person is not allowed to exercise
the subscription rights to shares.
(10) Matters relating to acquisition of the subscription rights to shares
1) In case where a Subscription Right Holder forfeits his/her subscription rights to shares before the exercise thereof pursuant toeither of the clauses in Item (9) above or any provision(s) of the Subscription Rights to Shares Allotment Agreement, the Company
may acquire said subscription rights to shares without charge as of a date separately specified by the Board of Directors of theCompany.
2) In case a General Meeting of Shareholders of the Company (the Board of Directors if such a General Meeting of Shareholders is
unnecessary) approves a proposal for (i) a merger agreement by which the Company becomes extinct; (ii) an absorption-typecompany split agreement or an incorporation-type company split plan by which the Company becomes a splitting company; or (iii)a share exchange agreement or a share transfer plan by which the Company becomes a wholly owned subsidiary of anothercompany or companies, the Company may acquire the subscription rights to shares that have not been exercised as of a dateseparately specified by the Board of Directors of the Company without charge as of such a date.
(11) Restriction on transfer of the subscription rights to shares
Approval of the Board of Directors of the Company via resolution thereat shall be required for the transfer of the subscription rights toshares.
(12) M atters relating to common stock and additional paid-in capital that will be increased in case of stock issuance as aresult of the exercise of subscription rights to shares
1) The amount of common stock that will be increased in case of stock issuance as a result of the exercise of the subscription rights
to shares shall be one-half (1/2) of the maximum limit of common stock, etc., which is calculated in accordance with Article 17,
Paragraph 1, of the Ordinance on Company Accounting, and the resulting fractions of less than one (1) yen, if any, shall be
rounded up.
2) The amount of additional paid-in capital that will be increased in case of stock issuance as a result of the exercise of thesubscription rights to shares shall be the amount of the maximum limit of common stock, etc., stated in 1) above after deducting
the amount of common stock to increase, which is set forth in 1) above.
(13) Treatment of the subscription rights to shares in conducting organizational restructuring
In cases where the Company conducts mergers (limited to cases where the Company is to become extinct as a result of the merger),absorption-type company splits, incorporation-type company splits, share exchanges or share transfers (hereinafter collectively an“Organizational Restructuring Action”), the subscription rights to shares of any of the joint-stock corporations (hereinafter the“Reorganized Company”), which are listed in sub-items (a) through (e) of Article 236, Paragraph 1, Item 8, of the Law, shall be newly
issued pursuant to the following conditions with regard to the subscription rights to shares that remain as of the effective date of theOrganizational Restructuring Action (hereinafter the “Residual Subscription Rights to Shares”). In such cases, the Residual Subscription
Rights to Shares shall be extinguished and the subscription rights to shares of the Reorganized Company shall be newly issued.
Provided, however, that the aforementioned clause shall apply only to cases where such issuance of subscription rights to shares of
the Reorganized Company pursuant to the following conditions has been stipulated in the statement to that effect in the relevant
merger agreement, the absorption-type company split agreement, the incorporation-type company split plan, the share exchange
agreement or the share transfer plan.
1) Number of the subscription rights to shares of the Reorganized Company to be issued
The subscription rights to shares of the Reorganized Company shall be issued in the same number as the Residual Subscription
Rights to Shares held by the Subscription Right Holders.
2) The type and number of the Reorganized Company’s shares underlying the subscription rights to shares
The type of shares underlying the subscription rights to shares shall be the Reorganized Company’s common stock, and thenumber of such Reorganized Company’s common stock to be issued as a result of the exercise of the subscription rights to sharesshall be determined mutatis mutandis to Item (4) above by taking into account the conditions for the Organizational Restructuring
Action and the like.
3) Amount to be paid at the time of exercise of the subscription rights to shares
The exercise price after the restructuring shall be one (1) yen per share of the Reorganized Company’s shares that could be issued
as a result of the exercise of the subscription rights to shares issued. Amount to be paid at the time of exercise of the subscription
rights to shares is calculated by multiplying the exercise price after the restructuring by the number of shares underlying each
subscription rights to shares.
4) Period during which the subscription rights to shares may be exercised
Period during which the subscription rights to shares may be exercised shall be from the later date of either the start date of theperiod during which the subscription rights to shares may be exercised, which is set forth in the aforementioned Item (8), or theeffective date of the Organizational Restructuring Action, until the expiration date of the period during which the subscription
rights to shares may be exercised, which is set forth in the aforementioned Item (8).
5) Matters relating to acquisition of the subscription rights to shares
Acquisition of the subscription rights to shares shall be determined mutatis mutandis to Item (10) above.
6) Restriction on transfer of the subscription rights to shares
Approval of the Board of Directors of the Reorganized Company shall be required for the transfer of the subscription rights toshares.
7) Matters relating to common stock and additional paid-in capital that will be increased in case of stock issuance as a result of theexercise of subscription rights to shares
Common stock and additional paid-in capital to be increased in case of stock issuance as a result of the exercise of subscription
rights to shares shall be determined mutatis mutandis to Item (12) above.
(14) Treatment of fractions of less than one (1) share
In case where there are fractions of less than one (1) share in the number of shares to be issued to a Subscription Right Holder when
the subscription rights to shares are exercised by said Subscription Right Holder, the resulting fractions shall be rounded down.
(15) Non-issuance of certificates for subscription rights to shares
The Company shall not issue certificates for the subscription rights to shares.
(16) Place for payment in exercising the subscription rights to shares
Asakusabashi Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
23-6, Yanagibashi 1-chome, Taito-ku, Tokyo

Annual Report 201340

Independent Auditor’s Report

41

MABUCHI MOTOR CO., LTD.

Investor Information(As of December 31, 2013)

Stock Data

Composition of Shareholders

Number of Shares Authorized...................... 100,000,000
Number of Shares Issued.................................. 37,875,881

Treasury Shares

Number of Shareholders..........................................10,139

Financial Institutions
18.8%

7.2%

Financial Instruments
Firms
0.6%

Major Shareholders
Number of
Ratio of
Shares Held Shareholders(Thousands)(%)

Major Shareholders
Takaichi Mabuchi
Northern Trust Co. (AVFC) Sub-account
American Clients
Mabuchi International ScholarshipFoundation
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Japan Trustee Services Bank, Ltd.
(Trust Account)
Takashi Mabuchi
Tamotsu Mabuchi
Premiere Corporation
Taka Corporation Co., Ltd.
TEXAS Inc.

2,500

7.1

2,286

6.5

1,500

4.3

1,181

3.4

1,155

3.3

1,130
1,130
1,034
1,028
1,028

3.2
3.2
2.9
2.9
2.9

Individuals andOthers23.8%

By type ofshareholders

Other Corporations
14.4%

Foreign Corporations
35.2%

Less than 100 0.1%

100-499 3.1%
500-999 1.3%
1,000-9,999 4.9%

1,000,000 and above
44.1%

10,000-99,999 13.3%

By number ofshares held

Notes: 1. In addition to the above, Mabuchi Motor Co., Ltd. retains
2,730,215 treasury shares.
2. The number of shares of treasury stock is excluded from “Ratioof Shareholders.” The percentages are rounded to one decimal
place.
3. 95,200 shares held by the ESOP Trust Utilizing Employee
Shareholding Association are included in the calculation of“Percentage of shares held.”

Cash Dividends per Share/Payout Ratio

64.3

43.8

123.0

123.0

62.0

62.0

61.0

2007
Interim

Total Dividend/Amount for Repurchase of
Own Stocks/Total Dividend Payout Ratio
516.8

(%)

129.8

(Yen)

100,000-999,999 33.2%

66.6

54.9

46.6

140.0
100.0

100.0

100.0

100.0

50.0

50.0

50.0

50.0

61.0

50.0

50.0

50.0

50.0

53.0

2008

2009

2010

2011

2012

2013

Year-end

122.7

(%)

64.3

66.6

54.9

46.6

4,920

(Millions of yen)

87.0
8,682

13,957

4,703

4,468

2007

2008

Total Dividend

Payout Ratio

3,503

3,503

3,503

3,503

2009

2010

2011

2012

Amount for Repurchase of Own Stocks

2013
Total Dividend Payout Ratio

Note: The above graph does not show the payout ratio for 2011, as theCompany recorded a net loss for the year.

Note: The above graph does not show the total dividend payout ratio for
2011, as the Company recorded a net loss for the year.

Changes in Standards for Calculating
Dividends

Trend of Stock Price and Related Indicators

Ordinary Dividendper Share

Standard Value for Calculating
Special Dividend

2007

60 yen20% of consolidated net income

2005

60 yen20% of consolidated net income

2003

50 yen1999

50 yen

Year

2009

2010

2011

2012

2013

High (Yen)

5,010

5,520

4,305

3,930

6,380

Low (Yen)

3,230

3,920

3,075

2,931

3,675

20% of consolidated net income

At Year-end (Yen)

4,580

4,185

3,205

3,655

6,250

5% of consolidated net income

PER

29.4

27.9

−

20.1

20.8

(* Additional policy) Actual full-year dividend amount shall be based on
the above calculation standards and shall not be less than the expected
dividend amount announced during the full-year period unless asignificant profit warning is issued.

PBR

0.9

0.8

0.7

0.7

1.0

(*)

Annual Report 201342

Corporate Data
(As of December 31, 2013)

Company Name

Number of Employees

Shareholders’ Register Custodian

MABUCHI MOTOR CO., LTD.

717 (Non-consolidated)
28,132 (Consolidated)

Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Department
10-11, Higashi-suna 7-chome, Koto-ku,
Tokyo 137-8081, Japan
Tel: 81-120-232-711

Corporate Headquarters
430 Matsuhidai, Matsudo City,
Chiba 270-2280, Japan
Tel: 81-47-710-1111

Ordinary General Meeting of
Shareholders
The Ordinary General Meeting of Shareholders
will be held at the end of March in Matsudo.

Established
January 18, 1954
Paid-in Capital

Independent Accountants

Stock Listing
Japanese Stock Exchange Listing
Tokyo Stock Exchange

Ernst & Young ShinNihon LLC
Tokyo, Japan¥20,704,818,800

Corporate Directory
Consolidated Subsidiaries[North America]
MABUCHI MOTOR AMERICA CORP.
3001, West Big Beaver Road, Suite 328,
Troy, MI 48084, U.S.A.
[Europe]
MABUCHI MOTOR (EUROPE) GmbH
Herriotstrasse 1, 60528 Frankfurt am Main,
Germany[China & Hong Kong]
MABUCHI INDUSTRY CO., LTD.
19 Sam Chuk Street, San Po Kong,
Kowloon, Hong Kong
MABUCHI MOTOR DALIAN CO., LTD.
No. 41 Harbin Road, Dalian Economic andTechnical Development Zone,
Dalian 116600, China
MABUCHI MOTOR (JIANGSU) CO., LTD.
No. 100 Liuxu Road, Wujiang Economic andTechnological Development Zone,
Jiangsu Province 215200, China
MABUCHI MOTOR (DONGGUAN) CO., LTD.
Guancheng Science & Technology Park,
Shilong Road, Guanlong Road’s Section,
Dongguan City, Guangdong Province
523119, China

MABUCHI MOTOR WAFANGDIAN CO.,LTD.
Laohutun Town, Wafangdian City,
Liaoning Province 116322, China[Asia Pacific]

MABUCHI MOTOR (SHANGHAI) CO., LTD.
Room 1901, Kirin Plaza Building, No. 666
Gubei Road, Changning District,
Shanghai 200336, China

MABUCHI MOTOR TAIWAN LTD.
No. 66 Kai-Fa Road, N.E.P.Z., Kaohsiung
81170, Taiwan

MABUCHI MOTOR TRADING(SHENZHEN) CO., LTD.
Room 1704-05 Great China International
Exchange Square, Jintian Road,
Futian District, Shenzhen City,
Guangdong Province 518034, China

MABUCHI MOTOR CO., LTD.

MABUCHI MOTOR (SINGAPORE) PTE. LTD.
111, North Bridge Road, #12-05
Peninsula Plaza, Singapore, 179098
MABUCHI MOTOR VIETNAM LTD.
No. 2 5A Street, Bien Hoa II Industrial Zone,
Bienhoa, Dong Nai, Vietnam

MABUCHI MOTOR (YINGTAN) CO., LTD.
Yingtan Economic and Technological
Development Zone, Yingtan City,
Jiangxi Province 335000, China

MABUCHI MOTOR DANANG LTD.
Lot A2, No. 3 Street, Hoa Khanh Industrial
Zone, Lien Chieu District, Da Nang City,
Vietnam

MABUCHI PRECISION (DONGGUAN) CO.,LTD.
Ludong Industrial Area, Humen Town,
Dongguan City, Guangdong Province
523935, China

MABUCHI MOTOR KOREA CO., LTD.
G-five Central Plaza 328, 27,
Seochojungang-Ro 24-Gil, Seocho-Gu,
Seoul, 137-882 Korea

MABUCHI MOTOR DONGGUAN DAOJIAO
CO., LTD.
Industrial Main Road, Daojiao Town,
Dongguan City, Guangdong Province
523179, China

Non-consolidated Subsidiary

MABUCHI MOTOR (JIANGXI) CO., LTD.
Jinlong Road, Ganzhou Development Zone,
Jiangxi 341000, China

43

MABUCHI TAIWAN CO., LTD.
No. 18, Chunghwa Road, Hsinchu Industrial
District, Hsinchu 30352, Taiwan

MABUCHI REAL ESTATE CO., LTD.

Annual Report 201344