200
3annual report

the MOTOR
the WORLDTURNS TO.

2
MAB
...

contents
Financial Highlights

1

Letter to Shareholders

2

About Mabuchi Motor

4

Financial Review

6Five-Year Financial Summary

9

Consolidated Balance Sheets

10

Consolidated Statements of Income

12

Consolidated Statements of Shareholders’ Equity

13

Consolidated Statements of Cash Flows14

Notes to Consolidated Financial Statements

15

Independent Auditors’ Report

23

Board of Directors / Corporate Directory

24

Investor Information25

2003 Financial Highlights
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31...................................................................................................

Net
Sales
( ¥ in millions )Net Income
Per Share

Net
Income( ¥ in millions )(¥ )105,743
2002
116,356

2003

16,731

2003

375.41

2002

18,025

2002

392.13

2001

105,129

2001

16,281

2001

345.85

2000

116,233

2000

23,472

2000

498.61

1999

117,5451999

18,792

1999

399.202003

Yen

U.S. Dollars(millions)

Net sales

2002

2003

2003

¥ 105,129¥ 116,356¥ 105,743$ 988,252

Operating income

22,079

Income before income taxes
and minority interests

23,495

Net income

16,281

Shareholders’ equity

241,859

Total assets

260,328

Cash dividends¥ $29,122

24,576229,682

27,96824,741

231,224

18,025

16,731

156,364

224,315

212,803

1,988,813

244,987

229,674

2,146,485

Yen

Per share of common stock:
Net income(thousands)

2001

U.S. Dollars¥ 345.85¥ 392.13¥ 375.41

67.00

70.00

128.00

$

3.51
1.20

Notes:
1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥107=U.S.$1, the approximate exchange rate on December 31, 2003.
2. Until the year ended December, 2002, net income per share was computed based on the net income reported in the consolidated statements of income and theweighted average number of shares of common stock outstanding during each year.
In accordance with a new accounting standard for earnings per share which became effective April 1, 2002, basic net income per share for 2003 wascomputed 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 ended December 31, 2003.

1

2003 Letter to Shareholders
MABUCHI MOTOR CO., LTD.
.................................................................

New leadership brings with it new direction, as is evident
in the bold initiative announced in the first quarter of thisyear. Innovation 2005 authorizes measures such as thereinforcement of our management base, substantial
physical improvements, and a reorganization of productionlines to be more responsive to changes in demand.
This endeavor will enable Mabuchi Motor to be even more
efficient, productive and cost-competitive as we prepare

Takaichi Mabuchi
Chairmanfor the future.
Mabuchi’s focus for the past few years has been on “creating profit when sales are stagnant,” without sacrificing market
share. By developing and implementing cost-reduction strategies, we are evolving into a stronger, more profitableenterprise, equipped to set and pursue ambitious new sales objectives.
The Iraq war and the threat of SARS took their toll on the world economy, and the yen rose sharply against the
dollar in the second half of 2003. Even so, momentum from the previous term boosted total unit sales to arecord-breaking 1.8 billion pieces — 4% over 2002. Since that term, however, we have faced the effects of adrastic shift to a strong-yen exchange level, a fall in product prices as a result of fierce and unavoidable
competition with Chinese manufacturers, and a transition period to diversify our product line in order tocapitalize on emerging market trends and opportunities.
Consolidated sales for this term fell to 105,743 million yen with an operating profit of 24,576 million yen (down 15.6%
from the preceding year), ordinary profit of 25,629 million yen (down 15.4% from the preceding year), net income of
16,731 million yen (down 7.2% from the preceding year), and an EPS of 375.41 yen — a result which closely follows ourforecast from last term. To protect our shareholders, who receive a base dividend per share of 50 yen, we increased a
supplemental dividend rate linked to results of fiscal year 2003 from 5% to 20% of the consolidated net income andcarried it out from the interim dividend in September 2003. Consequently, the dividend of this term rose to 128.00 yen(up 82.9% from the preceding year) and shareholders’ equity settled at 212,803 million yen.

Facing the Challenges Ahead with Challenge 550
The goal of our Challenge 550 is to increase sales over the next five years by 50%. Setting an operating profit
ratio of 25% and a target total cost reduction of 25 billion yen, we aim to achieve 150 billion yen in sales by
2008 — 50 billion yen of which will be generated by new businesses. The three pillars of Challenge 550
include new-business strategies for sales growth, cost-reduction strategies to maximize the potential of existing
businesses, and the consolidation of our management base to support the whole initiative.
Mabuchi has already begun to pursue new business in several areas. We have taken steps to augment our Power Unit
Motor division with power-window motors offering higher added value, as well as large high-rigidity motors underdevelopment for entry into other automotive power-unit-motor applications. We are now in the process of expanding ourBrushless Motor business for optical disc drives. We plan to expand sales activity in regions not yet aggressively enteredby Mabuchi, such as the local Chinese market, South America, and Eastern Europe, including Russia. We shall consider
broadening our horizons further by venturing into business areas new to Mabuchi, perhaps by means of corporate
alliances or mergers and acquisitions.

2

Shinji Kamei
President

Cost-reduction strategies are centered on the further reduction of manufacturing costs through the development ofsystems for optimizing each management resource, including a plan entailing in-house creation of parts. Key to the effortof strengthening our management base is establishing a Mabuchi Motor China (MMC), which would assume some of ourheadquarters’ functions, in Guangdong, China. The four missions of MMC are technology development, integration of
production and manufacturing facilities for parts in China, development of motors for the domestic Chinese market, andcreation of a sales division within China. We believe that this international specialization will contribute significantly to therealization of our targets in growth and cost-reduction alike.
First steps towards implementing Challenge 550 look most auspicious, particularly the initial expansion of our Power Unit Motor(PUM) and Brushless Motor businesses. Since the inauguration of our PUM division two years ago with the production of our own
model for automobile windows, we have reached sales of 3.9 billion yen and expect to add 5 billion yen in sales next term. We arechallenging the automotive product market, traditionally served exclusively by electrical equipment suppliers, and are actively
working towards developing our PUM business to achieve and maintain rapid growth at an annual rate of 40%. The audio-visual
market for brushless motors, on the other hand, has become intensely price sensitive, forcing stiff competition among otherbrushless suppliers. However, Mabuchi is leveraging close relationships with audio-visual manufacturers to whom we have longsupplied brush motors, and indeed have already entered that market for the portable CD-player, having sold 2.9 million pieces in
2003, and securing a market share of 24%. This product is also being favorably promoted towards other applications, and we areconfident that we can achieve the same kind of “standardization” for the Mabuchi brushless motor that has made our brush motors
so successful.
While extremely promising for future business, our PUM and Brushless Motor businesses will require a few years ofgrowth to achieve any marked impact on overall consolidated sales. A realistic sales prospect for the next term must takethis into account, along with influential factors on the world economy such as political problems after the Iraq war, a weak
dollar, and the U.S. presidential election.

Following is our forecast for fiscal year 2004:
Sales . . . . . . . . . . . . 93.0 Billion Yen (down 12.1% from the preceding year)
Operating Profit . . . . 19.5 Billion Yen (down 20.7% from the preceding year)
Ordinary Profit . . . . . 21.4 Billion Yen (down 16.5% from the preceding year)
Net Income . . . . . . . 14.5 Billion Yen (down 13.3% from the preceding year)
By strictly re-examining all of our current business endeavors and the organization of our enterprise as a whole, anddevoting ourselves to achieving our management target each term, we are confident that Mabuchi will overcome the
obstacles ahead and remain on the road to growth and prosperity.

Takaichi Mabuchi, Chairman

Shinji Kamei, President

March 30, 2004

3

2003 About Mabuchi Motor
MABUCHI MOTOR CO., LTD.
...............................................................

RUNNING SMOOTHLYAND REVVED UP FOR TOMORROWThe world’s foremost producer of small direct-current brush motors, Mabuchi has become thedominant player ina global industry. How does an established leader remain a force to be

reckoned with in an ever evolving marketplace? By evolving with it. That means balancing valuable
experience withvisionary enterprise. It means consolidating our strengths and pursuing

our goals with unwavering commitment. And it means seizing every new opportunity with the same
pioneering spirit that made us what we are today.

Mabuchi sells more

Small Brush Motors
worldwide than any other manufacturer.
Since 1954, Mabuchi has met the growing need for small direct-current brushmotors by leading the way in product development, manufacturing capability,
environmental responsibility, and superior performance. Our ability to meet exact
performance specifications with motors that work in as many diverse
applications as possible has continually enabled us to produce the low-cost,high-quality product that our customers require.

High-torqueOur new

Brushless Motoralready accounts for a 24% share of theportable CD-player market, and has comparable
potential in applications like DVD players andother digital products.
4

Power Unit
Motorslike this one for power windows
may be developed for numerous otherapplications in the automotive industry.

The Business That Keeps On Buzzing.
Leading manufacturers in so many industries trust Mabuchi quality, service and innovation to help their own
products deliver peak performance. From digital cameras and mobile phones to pagers and power tools,
Mabuchi brush motors are at work day and night in countless devices the world over. One way or another, they’vebeen making life a little easier for fifty years.

A Motor For Every Market? We’re Getting There.
Mabuchi is expanding its relatively new Brushless Motor and Power Unit Motor Businesses for entry into new
applications, markets and industries. For established customers and new prospects alike, Mabuchi will beequipped to address a broader range of high-performance motor needs than ever before — always with our
unparalleled quality and service.

How Global Can We Get? Just Watch Us.
Mabuchi is venturing into areas of burgeoning economic activity such as the local Chinese market,
South America, and Eastern Europe including Russia. An ambitious new facility in Guangdong, China withproduct development, manufacturing, sales and management operations will widen our supply network, reduce
costs, and promote growth internationally.

Meeting A World’s Demand The Mabuchi Way.
From stringent quality control and environmental responsibility to cost-effective production and timely delivery, Mabuchi Motor continues to set thestandard for the industry. Only by striving for constant improvement and tolerating no compromises can we fulfill an important need and contributeto a better tomorrow. That’s the pledge we live up to every day.

5

2003 Financial Review
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31...................................................................................................

Net Sales
In fiscal 2003, the number of motors sold grew and set a new record,
breaking last year's figure. Nontheless, adverse effects of appreciationof the yen, fall of sales price due to fiercer competition and change inmodel-mix due to the demand shift to lower priced motors resulted in adecrease of net sales. After all, consolidated net sales for this fiscal year
decreased 9.1% year on year to ¥105,743 million.

Information and Communication Equipment
Net sales decreased 12.1% to ¥14,273 million. The demand for motors
in printers is continuously growing as well as the motors in personal
computer drives. Net sales of motors for the digital camera market, into
which we entered from the previous term, has been expanding at asatisfactory pace. However, the net sales decreased due to the negative
factors mentioned above.

Audio and Visual Equipment
Net sales decreased 15.5% to ¥37,866 million due to high yen
appreciation, fall of unit sale prices, and model-mix change to lowerpriced motors which negated the demand expansion of motors for digitalappliances as represented by DVD players.

Home Appliances and Power Tools and others
Net sales decreased 8.8% to ¥23,435 million. In spite of the fact thatdemands for health care products, shavers, rotating tooth brushes andtools are good, as a whole demand remained at almost the same level.
Due to the negative factors mentioned above, the net sales decreased.

Automotive Products
Net sales increased 1.8% to ¥30,127 million. As the demand forelectrical parts for automobiles is rising seeking for safety, convenience,
comfort and economy, the number of motors used per automobile isincreasing and its growth is kept upwardly.
Especially, the use in the power-window lifters, air-conditioning damper
actuators, retractable rearview mirrors, and door locks are showing thesignificant growth which overlaid the negative factors mentioned above.

Net Sales by Application
Yen

Years ended December 31

U.S. Dollars(millions)(thousands)

1999

2000

2001

2002

2003

2003

Audio-Visual Equipment¥ 46,207¥ 45,068¥ 38,663¥ 44,800¥ 37,866$ 353,887

Automotive Products

27,59826,75825,90729,60330,127

281,560

Information &Communication Equipment

16,39917,83014,051

16,24014,273

133,392

Home Appliances &Power Tools & Others

27,266

26,52926,451

25,68823,435

219,018

Other*

75

48

57

25

39

364

Total

¥ 117,545¥ 116,233¥ 105,129¥ 116,356¥ 105,743$ 988,252*Other includes parts and equipment sales.

Audio-Visual Equipment

Automotive Products

Information andCommunication Equipment

Home Appliances &Power Tools & Others

03
02
01
00
99
0

6

30,00060,00090,000120,000

150,000

2003 Financial Review
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31...................................................................................................

Net Sales by Geographic Area of Destination
Years ended December 31

Yen

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

1999

2000

2001

2002

2003

2003

¥ 19,124¥ 16,429¥ 12,534¥ 11,942¥ 11,611$ 108,514

14,843

13,945

12,83012,624

10,183

95,168

North and Latin America
Europe14,731

13,951

14,767

15,187

14,781138,140

China and Hong Kong

42,18845,262

41,64150,73645,797428,009

Asia Pacific

26,584

26,59823,30025,842

23,331

218,046

Other*

75

48

57

25

39

364

Total

¥ 117,545¥ 116,233¥ 105,129¥ 116,356¥ 105,743$ 988,252*Other includes parts and equipment sales.

Japan

North andLatin America

EuropeChina andHong Kong

Asia Pacific

03
02
01
00
99
0

30,00060,00090,000120,000

Costs, Expenses and Net income
Cost of sales decreased by 9.2%, to ¥63,334 million ($591 million).
The cost of sales ratio was 59.9% in 2003 and remained the same as
in 2002 due mainly to the continued cost reduction and an increase of
production over 2002.
Selling, general and administrative expenses increased by 1.9%
over the previous year due to an increase of the ratio of social insurance
premium on employee’s bonuses and a reclassification of certain
manufacturing costs to administrative expenses.
As a result of these factors, operating income decreased 15.6%, to¥24,576 million ($229 million) over the previous year.

Other income (expenses) includes net other income of ¥165 million($1.5 million) in 2003 versus net other expense of ¥1,154 million in
2002. The change in 2003 was principally due to decreases in exchange
losses and loss on valuation of investment securities compared withthose in 2002.
Net income decreased 7.2%, to ¥16,731 million ($156 million).
The effective corporate income tax in 2003 decreased to 32.0% from
35.3% in 2002.

7

2003 Financial Review
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31...................................................................................................

Foreign Currency
As indicated in Note 11 “Segment Information” to consolidated financial statements, overseas sales accounted for approximately 89% ofconsolidated net sales in 2003, of which 90% was transacted by the U.S. dollar and U.S. dollar linked currencies.
In 2003, the average rate of the yen appreciated approximately 7.5% against the U.S. dollar, compared with 2002. The appreciation of the yen
against the foreign currencies resulted in decreases of net sales of approximately ¥6,700 million ($63 million) and operating income of ¥2,300
million ($21 million), respectively.
The Company uses foreign exchange forward contracts to hedge foreign exchange risks associated with accounts receivable and payables
denominated in foreign currencies (see Note 9 “Derivative Financial Instruments”).

Financial Position
Net working capital at December 31, 2002 and 2003
is summarized as follows (millions of yen):

Current assets

2002

2003

Increase(Decrease)¥ 131,065¥ 124,731¥ (6,333)

Current liabilities

11,461

10,725(736)

Net working capital¥ 119,603¥ 114,006¥ (5,597)

11.4

11.6

Current ratio

The decrease in current assets at December 31, 2003 consisted mainly of a decrease of cash and bank deposits by ¥1,478 million,a decrease of short-term investments by ¥2,432 million, and a decrease of inventories by ¥2,925 million. The decrease of cash and bank deposits
was due to the purchase of treasury stock of ¥16,166 million in June and December 2003 by tender offer and from stock market.
Long-term liabilities decreased by ¥2,984 million due mainly to a decrease of deferred tax liability on undistributed earnings of foreignsubsidiaries.
Shareholders’ equity decreased by ¥11,512 million due primarily to the purchase of treasury stock mentioned above and a decrease of foreign
currency translation adjustments by ¥8,354 million over the previous year. As a result, the shareholder’s equity ratio increased 1.1 percentage points,
to 92.7% from 91.6% at the previous year-end.

Cash Flow
The major items of cash flows for the years ended December 31, 2002 and 2003 are summarized below:

Yen

U.S. Dollars(millions)2002
Net income before income taxes and minority interests¥

27,968¥(thousands)

2003

2003

24,741$ 231,224

Depreciation

6,336

5,578

52,130

Increase in property, plant and equipment(5,068)(5,869)(54,850)

Change in short-term investments and investment securities, net

2,292

9,083

84,887

Cash dividends paid

(3,082)(4,493)(41,990)

Purchase of treasury stock(23,895)(16,182)(151,233)

Effect of exchange rate changes on cash and cash equivalents(6,028)(5,721)(53,467)

Other, net(1,888)(9,961)(93,093)(2,824)$ (26,392)

Net increase (decrease) in cash and cash equivalents¥(3,365)¥

Net cash provided by operating activities decreased ¥14,926 million from 2002, to ¥20,506 million ($191 million) due mainly to decreases in net
income and accrued income taxes.
Net cash provided by investing activities increased ¥8,857 million from 2002, to ¥3,066 million ($28 million) which was attributable to a decreasein purchase of investment securities in connection with the purchase of treasury stock in 2003.
Net cash used in financing activities increased ¥6,302 million from 2002, to ¥20,676 million ($193 million) due to the purchase of treasury stockof ¥16,166 million in June and December 2003 as aforementioned.
The Company believes that its financial condition remains very strong. The present balance of liquid assets are indispensable for the Company tofurther strengthen its existing core business and create the opportunities for new business. This should absolutely help appreciate our shareholder value.

82003 Five-Year Financial Summary
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • YEARS ENDED DECEMBER 31...................................................................................................

Yen

U.S. Dollars(millions)(thousands)

1999

2000

2001

2002

2003

2003

¥ 117,545¥ 116,233¥ 105,129¥ 116,356¥ 105,743$ 988,252

Operating income

28,48028,62422,07929,122

24,576229,682

Income before income taxes

28,49733,64323,49527,96824,741

231,224

18,792

23,472

16,281

18,025

16,731

156,364¥ 399.20¥ 498.61¥ 345.85¥ 392.13¥ 375.41

70.00

75.00

67.00

70.00

128.00Operating Results
Net salesand minority interests
Net income
Per share of common stock:
Net income

$

3.51

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

1.20(Yen and U.S. Dollars)
Depreciation and amortization

¥

7,234

¥

6,425

¥

6,599

¥

6,336

¥

5,578

$

52,130Capital expenditures

4,051

4,627

5,132

6,278

5,673

53,018R&D expenses

3,752

2,832

3,421

3,535

3,714

34,710Shareholders' equity¥ 204,403¥ 218,471¥ 241,859¥ 224,315¥ 212,803$ 1,988,813

Total assets¥ 218,083¥ 242,626¥ 260,328¥ 244,987¥ 229,674$ 2,146,485

47,07547,07547,07545,96644,22358,27960,51145,20350,762

51,796

Balance Sheet

Other Data
Number of shares outstanding(thousands of shares)
Number of employees
Notes
1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥107=U.S. $1, the approximate exchange rate on December 31, 2003.
2. Until the year ended December, 2002, net income per share was computed based on the net income reported in the consolidated statements of income andthe weighted average number of shares of common stock outstanding during each year.
In accordance with a new accounting standard for earnings per share which became effective April 1 2002, basic net income per share was computed basedon 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 ended December 31, 2003.
3. Number of employees includes contract manufacturing labor at plants in Guangdong, China.
4. Effective 2000, the Company adopted a new accounting standard for research and development costs.
The Company changed the previous scope of such costs to disclose only costs incurred in research and development activities for new products andprocesses. Those costs based on the previous scope in 2000 were ¥4,456.

9

2003 Consolidated Balance Sheets
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • DECEMBER 31, 2002 AND 2003.....................................................................................................

AssetsYen

U.S. Dollars(millions)(thousands)

2002

2003

2003

77,187$ 721,373

Current Assets:
Cash and bank deposits¥

78,665¥

Short-term investments

18,44316,011

149,635

Trade notes and accounts receivable

13,811

14,129132,046

Less-Allowance for doubtful receivables

(351)

(298)

(2,785)

17,602

14,677137,168

Deferred tax assets

1,526

1,575

14,719Other current assets

1,367

1,449

13,542

Total current assets

131,065

124,731

1,165,710

Inventories

Property, Plant and Equipment, at cost:
Land

6,146

6,130

57,289Buildings

37,072

34,222319,831

Machinery and equipment

59,27355,439518,121

Construction in progress

1,299

3,157

29,504Less-Accumulated depreciation

103,792

98,950924,766(68,522)(65,374)(610,971)

35,27033,575

313,785

75,04968,416

639,401

709

479

4,476

Investments and Other assets:
Investment securities
Long-term loans receivable
Deferred tax assets

135

138

1,289

Other investments and other assets

2,758

2,331

21,78578,652

71,367

666,981¥ 244,987¥ 229,674$ 2,146,485

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

10Liabilities and Shareholders’ Equity

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

Current Liabilities:
Trade notes and accounts payable

¥

2,647

¥

2,944

$

27,514

Accrued income taxes

4,176

2,618

24,467

Deferred tax liabilities

0

16

149

Accrued bonus to employees

306

328

3,065

Other current liabilities

4,331

4,817

45,018

Total current liabilities

11,461

10,725100,233

Accrued retirement benefits for employees

1,755

925

8,644

Accrued retirement benefits for directors and statutory auditors

452

435

4,065

Deferred tax liabilities

5,399

3,261

30,476

Other long-term liabilities

30

31

289

7,637

4,653

43,485

1,573

1,492

13,94320,70420,704

193,495

Long-term Liabilities:

Minority Interests
Contingent Liabilities
Shareholders' Equity:
Common stock, without par value:
Authorized: 100,000,000 shares:
Issued: 47,075,881 shares in 2002 and 2003
Additional paid-in capital

20,41920,419190,831

Retained earnings

204,805

216,8902,027,009

Unrealized holding (losses) gains on securities

(769)

171

1,598

Foreign currency translation adjustments

3,055(5,299)(49,523)(23,900)(40,083)(374,607)

224,315

212,803

1,988,813¥ 244,987¥ 229,674$ 2,146,485

Treasury stock, at cost; 2,009,096 shares in 2002 and
3,975,389 shares in 2003
Total shareholders' equity

112003 Consolidated Statements of Income
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003..............................................................................................................................

Yen

U.S. Dollars(millions)(thousands)

2002

2003

2003

¥ 116,356¥ 105,743$ 988,252

Cost of Sales

69,73563,334

591,906

Gross profit

46,62142,409396,345

Selling, General and Administrative Expenses

17,498

17,833

166,663

Operating income

29,122

24,576229,682

Net Sales

Other Income (Expenses):
Interest and dividend income

2,265

2,068

19,327

Exchange losses on foreign currency transactions(1,717)(1,369)(12,794)

Loss on valuation of investment securities

(623)

-

-

Other, net(1,079)(533)(4,981)(1,154)

165

1,542

27,96824,741

231,224

Current

8,757

10,036

93,794

Deferred

1,113(2,125)(19,859)

9,871

7,911

73,934

(72)

(99)

(925)

16,731$ 156,364

Income before Income Taxes and Minority Interests
Income Taxes:

Minority Interests
Net Income¥

18,025¥

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

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

392.13¥

70.00

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

12375.41128.00

$

3.51
1.20

2003 Consolidated Statements of Shareholders' Equity
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003..............................................................................................................................

Number of Shares

Yen(thousands)

U.S. Dollars(millions)(thousands)

2002

2003

2002

2003

2003

Beginning balance

47,07547,075¥ 20,704¥ 20,704$ 193,495

Ending balance

47,07547,075¥ 20,704¥ 20,704$ 193,495

Beginning balance¥ 20,419¥ 20,419$ 190,831

Ending balance¥ 20,419¥ 20,419$ 190,831

Common Stock:

Additional Paid-in Capital:

Retained Earnings:
Beginning balance¥ 189,972¥ 204,805$ 1,914,065

Net income

18,025

16,731

156,364

Cash dividends(3,083)(4,495)(42,009)

Bonuses to directors and statutory auditors

(108)

(150)

(1,401)¥ 204,805¥ 216,890$ 2,027,009

¥

¥

$

Ending balance
Unrealized (Losses) Gains on Investments:
Beginning balance
Net change during the year
Ending balance

(168)
(601)

¥

(769)
941

(769)

¥

¥ 10,936¥(7,186)
8,794

171

$

3,055

$

1,598

Foreign Currency Translation Adjustments:
Beginning balance
Net change during the year
Ending balance(7,880)(8,355)¥(5,299)28,551(78,084)

¥

3,055

$

(49,523)¥(4)¥ (23,900)$ (223,364)(23,895)(16,182)(151,233)¥ (23,900)¥ (40,083)$ (374,607)

Treasury Stock:
Beginning balance
Net change during the year
Ending balance

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

13

2003 Consolidated Statements of Cash Flows
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES • FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003..............................................................................................................................

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

24,741$ 231,224

Cash Flows from Operating Activities:
Net income before income taxes and minority interests¥

27,968¥Depreciation and amortization

6,336

5,578

52,130

Provision for retirement benefits,net payments

(147)

(817)

(7,635)Interest and dividend income(2,265)(2,068)(19,327)

Foreign exchange loss

2,434

1,941

18,140Loss (Gain) on sales of short-term investments

623

(11)

(102)

Loss on sales and disposal of fixed assets

546

183

1,710

Loss on valuation of investment securities

623

-

-

Increase in trade notes and accounts receivables(1,419)(1,217)(11,373)

Decrease in inventories

7,553

1,440

13,457

Increase in trade notes and accounts payable

882

1,014

9,476

Other, net(3,035)(229)(2,140)Sub total

40,101

30,555285,560

Interest and dividends received

2,258

2,055

19,205Interest paid

(0)

(0)

(0)

Income taxes paid

(6,927)(12,104)(113,121)

Net cash provided by operating activities

35,43320,506

191,644(1,799)(3,376)(31,551)

Proceeds from sales of short-term investments

6,093

12,348

115,401

Purchase of property, plant and equipment(5,951)(6,029)(56,345)

Cash Flows from Investing Activities:
Purchase of short-term investments

Proceeds from sales of property, plant and equipment

883

160

1,495

Purchase of investment securities(36,084)(20,212)(188,897)

Proceeds from sales of investment securities

34,083

20,323

189,934

Other, net(3,015)(147)(1,373)

Net cash (used in) provided by investing activities(5,791)

3,066

28,654

Cash Flows from Financing Activities:
Cash dividends paid

(3,082)(4,493)(41,990)

Purchase of treasury stock(23,895)(16,182)(151,233)

Net cash used in financing activities(26,978)(20,676)(193,233)

Effect of Exchange Rate Changes on Cash and Cash Equivalents(6,028)(5,721)(53,467)

Net Decrease in Cash and Cash Equivalents(3,365)(2,824)(26,392)

Cash and Cash Equivalents at Beginning of Year

84,22380,857755,672

-

55

514

78,089$ 729,803

Net Increase resulting from changes in scope of consolidation
Cash and Cash Equivalents at End of Year¥80,857¥

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

14

2003 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES...............................................................................................................

1. Summary of Significant Accounting and Reporting Policies(a) Basis of presenting financial statements
The accompanying consolidated financial statements of Mabuchi Motor Co., Ltd. (the “Company”) and its consolidated subsidiaries are compiled
from the consolidated financial statements prepared by the Company as required by the Securities and Exchange Law of Japan and are prepared on
the basis of accounting principles and practices generally accepted in Japan, which may differ in some material respects from accounting principles
and practices generally accepted in countries and jurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required under accounting principles generally
accepted in Japan but is presented herein as additional information. For the purpose of this report, certain reclassifications have been made topresent the accompanying consolidated financial statements in a format which is familiar to readers outside Japan.
For the convenience of the reader, the accompanying consolidated financial statements have also been presented in U.S. dollars by translating
yen amounts at the rate of ¥107 to U.S. $1, which was the approximate exchange rate prevailing on December 31, 2003.
Certain reclassifications have been made to the accompanying consolidated financial statements for 2002 to conform to the 2003 presentations.

(b) Principles of consolidation
The consolidated financial statements include the accounts of the Company and all significant subsidiaries. All significant inter-company balances,transactions, and profits have been eliminated in consolidation. Investments in unconsolidated subsidiaries are stated at cost.

(c) Translation of foreign currencies
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rate of exchange in effect at the balance sheet
date. Exchange differences resulting from these translations are included in income. Foreign subsidiaries’ assets and liabilities are translated into
yen at the rates of exchange in effect at the balance sheet date. The accounts of shareholders’ equity are translated at historical rates. Revenues
and expenses are translated at the average rates of exchange for the year. The resulting foreign currency translation adjustments are shown as aseparate component of shareholders’ equity.

(d) Cash equivalents
All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents.

(e) Securities
The Company classifies securities as “held-to-maturity” for which management has the positive intent and ability to hold to maturity, and“available-for-sale” which represent securities not classified as either trading or held-to-maturity.
Held-to-maturity securities are reported at amortized or accumulated cost. Available-for-sale securities are stated at fair value with changes in
unrealized holding gains or losses, net of the applicable income taxes, and are reported in a separate component of shareholders’ equity. However,when the fair value of available-for-sale securities declines significantly and is considered to be irrecoverable to the book value, such unrealized
holding losses are charged to income.
Available-for-sale securities for which fair value is not readily determinable are stated at moving average cost.

(f) Inventories
Finished goods, work in process and raw materials are principally stated at average cost. Marketable raw materials such as copper, gold, silver andpalladium are stated at the lower of average cost or market.

(g) Property, Plant and Equipment and Depreciation
Property, plant and equipment is stated at cost. Depreciation is computed primarily by the declining-balance method for the Company and principallyby the straight-line method for overseas subsidiaries over their estimated useful lives. Maintenance and repairs, including minor renewals andimprovements, are charged to income as incurred.

(h) Leases
Noncancelable leases of the Company and its consolidated subsidiaries are accounted for as operating leases (whether such leases are classified
as operating or finance leases) except that lease agreements which stipulate the transfer of ownership of the leased assets to the lessee areaccounted for as finance leases.

(i) Research and development expenses
Expenditures relating to research and development activities are charged to income as incurred and amounted to ¥3,535 million and ¥3,714 million($34,710 thousand) for the years ended December 31, 2002 and 2003, respectively.

15

2003 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES...............................................................................................................

(j) Income taxes
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets andliabilities and their reported amounts using presently enacted tax rates. Provision for Japanese income taxes on undistributed earnings of foreignsubsidiaries is made only on those amounts in excess of the funds considered to be permanently reinvested.

(k) Retirement benefits
The Company has a trusteed noncontributory pension plan covering substantially all qualified full-time employees. Under the plan, eligible employees
are entitled to a 10-year annuity or lump-sum payments based on the rate of pay at the time of retirement or termination, length of service andcertain other factors. Annual payments to the trustees for the pension plan, which are deductible for tax purposes, are based on actuariallydetermined costs of the plan.
Accrued retirement benefits are provided based on the amount of retirement benefit obligation reduced by the fair value of pension plan assets
at the end of the annual period.
Actuarial gain and loss are amortized in the year following the year in which the gain or loss recognized primarily by the straight-line method overthe period of mainly 10 years which are shorter than the average remaining years of service of the employees.
Certain subsidiaries have pension plans similar to the Company or unfunded retirement and termination allowance plans for qualified employees.
The amounts required under the plans have been fully accrued.
The Company also has an unfunded retirement benefits plan for directors and statutory auditors and has fully accrued the amount required under
the plan.

(L) 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 recognitionof gains or losses on evaluation of derivative financial instruments until the related losses or gains on the hedged items are recognized.

2. Cash and Cash Equivalents
Reconciliation of cash and cash equivalents for the accounts on statement of cash flows for the year ended December 31, 2002 and 2003 are as
follows:

Yen

U.S. Dollars(millions)

2002
Cash and bank deposits on the consolidated balance sheet¥

78,665¥(thousands)

2003

2003

77,187$ 721,373

Time deposits with original maturities over three months(4,098)(3,865)(36,121)

Short-term investments

at the time of purchase

18,44316,011

149,635

Securities under the risk of value fluctuation(12,152)(11,243)(105,074)

78,089$ 729,803

Cash and cash equivalents¥

80,857¥

3. Inventories
Inventories as of December 31, 2002 and 2003 were as follows:

Yen

U.S. Dollars(millions)2002
Finished goods

¥

¥

8,289

2003
$

77,467Work in process

1,706

1,510

14,112

Raw materials

5,698

4,876

45,57014,677$ 137,168¥

16

10,198(thousands)

2003

17,602¥

4. Securities
The cost, net of unrealized gains and losses, and fair value for securities classified as available-for-sale and held-to-maturity as of December 31,
2002 and 2003 were as follows:Yen(millions)

2002
Cost

Fair Value

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

22,653¥

22,461¥(191)

Equity securities

3,055

3,241

186

Other

23,457

22,141(1,316)¥49,167¥

47,845¥(1,321)¥

38,260¥37,838¥(421)

Held-to-maturity:
Debt securities

Yen

U.S. Dollars(millions)(thousands)

2003
Cost

Fair Value

Debt securities¥ 17,824¥ 16,951

Equity securities

3,056

4,372

Other

20,75820,605¥ 41,639¥ 41,929¥ 34,315¥ 31,976

2003
Gains
(losses)

Cost

Fair Value

Gains(losses)(872)$ 166,579$ 158,420

1,316

28,56040,85912,299(153)

194,000

192,570(1,429)¥290$ 389,149$ 391,859

$

2,710

¥

(2,339)$ 320,700$ 298,841$(21,859)

Available-for-sale:¥$(8,149)Held-to-maturity:
Debt securities

The securities for which fair values were not available as of December 31, 2002 and 2003 were as follows:

Yen

U.S. Dollars(millions)

2002
Commercial paper¥

Money Management Funds

2,271(thousands)

2003
¥

4,940

3,745

2003
$

4,257

35,00039,785Equity securities of non-consolidated subsidiaries

70

70

654

Other equity securities

104

109

1,018

¥

7,387

¥

8,182

$

76,46717

2003 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES...............................................................................................................

The contractual maturities for securities classified as available-for-sale and held-to-maturity at December 31, 2002 and 2003 were as follows:Yen(millions)

2002
Withinone yearOver one year
Over five years Over ten years
through five years through ten years

Corporate bonds¥ 11,153

Commercial paper

2,271

-

-

-

2,271

-

1,815

7,197

117

9,130

¥ 13,425¥ 24,685¥ 14,309¥ 19,703¥ 72,123

Other¥ 22,869

¥

7,112

Total

¥ 19,585

Yen¥ 60,721

U.S. Dollars(millions)(thousands)

2003
Withinone year
Corporate bonds

¥

2003

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

Over ten years

Total

Total

6,988

¥ 14,447

7,370¥ 22,461¥ 51,267$ 479,130

Commercial paper

3,745

-

-

-

3,745

35,000

Other

949

5,706

2,971

-

9,627

89,971¥ 11,683¥ 20,153

10,341¥ 22,461¥ 64,639$ 604,102¥

5. Retirement plans
The table below sets forth the plan’s funded status and amounts recognized in the balance sheets at December 31, 2002 and 2003.

Yen

U.S. Dollars(millions)(thousands)

2002
Retirement benefit obligation¥(7,437)

¥

2003

2003

(7,173)$ (67,037)

Plan assets at fair value

5,415

6,001

56,084

Unfunded retirement benefit obligation(2,022)(1,171)(10,943)

Unrecognized actuarial gain or loss

266

246

2,299

Accrued retirement benefits

¥

1,755

¥

925

$

8,644

The components of net periodic benefit cost for the years ended December 31, 2002 and 2003 were as follows:

Yen

U.S. Dollars(millions)(thousands)

2002
Service cost

¥

614

2003
¥

575

2003
$

5,373

Interest cost

141

121

1,130

Expected return on plan assets

(40)

(45)

(420)

0

26

(242)

Amortization of unrecognized actuarial gain or loss
Net periodic pension cost

¥

715

¥

678

$

6,336

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

18

2002

2003

Discount rate

2.0%

2.0%

Expected rate of return on plan assets

1.0%

1.0%

6. Income Taxes
The Company and domestic consolidated subsidiaries are subject to a number of taxes based on income with a normal tax rate aggregating
approximately 41.7% for the years ended December 31, 2002 and 2003. Foreign subsidiaries are subject to income taxes in the countries where they
operate.
The following table summarizes the significant differences between the Japanese statutory income tax rate and the effective income tax rate on
pre-tax income for the years ended December 31, 2002 and 2003:

2002

2003

Statutory income tax rate

41.7%

41.7%

International income taxed at varying rates(20.0)(18.3)

11.9

20.0

(2.9)

(5.4)

Undistributed earnings in foreign subsidiaries

4.0(10.2)

Other, net

0.6

4.2

Effective income tax rates

35.3%

32.0%

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

Provision for Japanese income taxes on undistributed earnings of foreign subsidiaries is made only on those amounts in excess of the funds
considered to be permanently reinvested.
In 2003, in connection with the Company’s strategy for reconstruction and reallocation of its global functions and operating systems, the Company
reviewed the current dividend policy on the foreign subsidiaries and changed the level of the funds to be reinvested in those operations. As a resultof this change, deferred tax liability decreased by ¥2,440 million ($22,804 thousand) at December 31, 2003, and net income for the year ended
December 31, 2003 increased by the same amount.
New legislation on enterprise tax was enacted in March 2003 which will result in a decrease of the aggregate statutory tax rate from 41.7% to40.4% effective for fiscal years beginning after December 31, 2004. However the effect of this tax rate change was immaterial.
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2002 and2003 were as follows:

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

Deferred tax assets:
Unrealized profits on inventories and fixed assets

¥

1,533

¥

1,379

$

12,887

Evaluation losses on assets

2,820

2,171

20,289Depreciation

151

162

1,514

Accrued enterprise taxes

287

420

3,925

Accrued retirements benefits

719

510

4,766

Other

116

281

2,626

Total

¥

5,628

¥

4,927

$

46,046

¥

9,207

¥

5,974

$

55,831

Deferred tax liabilities:
Tax on undistributed foreign earnings
Unrealized losses on investments
Other
Total

-

118

1,102

158

397

3,710

¥

9,366

¥

6,489

$

60,644

¥

1,661

¥

1,714

$

16,018

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

5,400

3,277

30,62619

2003 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES...............................................................................................................

7. Shareholders’ Equity
The amended Japanese Commercial Code (the “Code”) enacted effective from October 1, 2001 provides that an amount equivalent to at least 10%of cash dividends paid and other cash outlays, resulting from appropriations of retained earning with respect to each annual period, be appropriatedto the legal reserve until total of such reserve and additional paid-in capital equals 25% of the stated capital. As of December 31, 2003, the totalof the legal reserve of ¥ 3,811 million ($35,616 thousand) which is included in retained earnings at December 31, 2003, and additional paid-in
capital, already reached 25% of the stated capital. The Code also provides that additional paid-in capital and the legal reserve up to 25% of thestated capital are not available for cash dividends but may be used to reduce a capital deficit or may be capitalized. The paid-in capital and legal
reserve exceeding 25% of the stated capital are available for dividends or purchase of treasury stock upon approval of shareholders’ meeting.
The Code also provides that all share issuances after September 30, 2001 will be of shares with no par value. Prior to the date on which theAmendment came into effect, the Company’s shares had a par value of ¥50.
Year-end cash dividends are approved by the shareholders after the end of each fiscal year. Semi-annual interim cash dividends are declared by
the Board of Directors after the end of each interim six-month period. Such dividends are payable to shareholders of record at the end of each fiscal
year or interim six-month period.
In accordance with the Code, these dividends and the related appropriations of retained earnings have not been reflected in the financial
statements at the end of such fiscal year. However, dividends per share shown in the accompanying consolidated statements of income reflect
dividends applicable to the respective fiscal year.
On September 24, 2003, semi-annual interim cash dividends (¥67 or $0.62 per share) of ¥2,918 million ($27,271 thousand) were paid toshareholders of record at June 30, 2003. On March 30, 2004, the shareholders approved the declaration of cash dividends (¥61 or $0.57 per share)
totaling ¥2,629 million ($24,570 thousand) and payments of bonuses to directors and statutory auditors totaling ¥124 million ($1,158 thousand).

8. Per Share Data
Until the year ended December, 2002, 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 a new accounting standard for earnings per share which became effective April 1, 2002, basic net income per share wascomputed based on the net income available for distribution to shareholders of common stock and the weighted average number of shares ofcommon stock outstanding during the year ended December 31, 2003.

9. Derivative Financial Instruments
The Company enters into forward exchange contracts, forward precious metal contracts and currency option contracts with no option premiums as
a normal part of risk management efforts. As a result, the Company is exposed to risk of credit-related losses in the event of nonperformance ofcounterparties to foreign exchange contracts, precious metal contracts and currency option contracts. Management believes such risks are minor
because of the high credit worthiness of the counterparties and such financial instruments have not been held for trading or other speculative
purposes. Following is a summary of derivative financial instruments which are currently held by the Company.
The Company uses foreign exchange forward contracts and currency option contracts to hedge the risk of changes in foreign exchange rates
substantially associated with receivables, net of payables, denominated in foreign currencies and foreign currency bank deposits. Gains and losses
explicitly deferred, arising from foreign exchange forward contracts related to future trade transactions, are insignificant at December 31, 2002 and2003. There were no outstanding currency option contracts at December 31, 2002 and 2003.
Forward precious metal contracts are used by the Company to hedge the risk of changes in market prices resulting from purchase of precious
metals as raw materials for motor products. There were no outstanding forward precious metal contracts at December 31, 2002 and 2003.

10. Contingent Liabilities
As of December 31, 2003, there were no significant reportable contingent liabilities.

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

Segment Information by Geographic Area

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

Net sales:Japan
Outside customers¥

24,857¥

20,864$

194,990

Intersegment

50,01846,364433,308

Total

74,87567,229628,308

Outside customers

64,37860,666566,971

Intersegment

47,87443,053402,364

Total

112,253

103,719969,336

11,9709,518

88,95300

011,971

9,519

88,962

15,14914,694

137,327

9

7

65

Asia

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

15,15914,701

137,392

Corporate and elimination(97,903)(89,426)(835,757)¥ 116,356¥ 105,743$

988,252¥¥$

82,785

Consolidated
Operating Income:Japan

12,901

8,858

Asia

15,226

14,524

135,738

U.S.A.

467

257

2,401

Europe

258

(82)

(766)

Corporate and elimination

268

1,018

9,514

Consolidated¥

29,122¥

24,576$229,682

68,639¥82,151$

767,766

Assets:
Japan
Asia

¥

100,270

89,334

834,897

U.S.A.

5,348

4,421

41,317

Europe

5,724

5,149

48,121

Corporate and elimination

65,004

48,618454,373¥ 244,987¥ 229,674$ 2,146,485

Consolidated

The amount of corporate assets included in "Corporate and elimination" is ¥115,962 million in 2002 and ¥97,606 million ($912,205 thousand) in
2003, which comprises principally cash, short-term investments and investment securities.

21

2003 Notes to Consolidated Financial Statements
MABUCHI MOTOR CO., LTD. & CONSOLIDATED SUBSIDIARIES...............................................................................................................

Overseas Sales

Yen

U.S. Dollars(millions)

2002(thousands)

2003

2003

Overseas Sales
U.S.A.

¥

12,624¥$

95,16815,186

14,781138,140

Asia and Other

76,59969,150646,261

Total

94,115$ 879,579

Net Sales¥ 104,410
116,356¥

105,743988,252% of Overseas Sales to Net Sales

89.7%

89.0%

89.0%

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

22

10,183

Europe2003 Independent Auditors’ Report.................................................................................

The Board of Directors
Mabuchi Motor Co., Ltd.

We have audited the accompanying consolidated balance sheets of Mabuchi Motor Co., Ltd. and consolidated subsidiaries asof December 31, 2003 and 2002, and the related consolidated statements of income, shareholders’ equity, and cash flows forthe years then ended, all expressed in yen. These financial statements are the responsibility of the Company’s management.
Our responsibility is to independently express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards, procedures and practices generally accepted and applied inJapan. Those standards, procedures and practices require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial
position of Mabuchi Motor Co., Ltd. and consolidated subsidiaries at March 31, 2003 and 2002, and the consolidated resultsof their operations and their cash flows for the years then ended in conformity with accounting principles and practices
generally accepted in Japan.

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended December 31,
2003 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts
and, in our opinion, such translation has been made on the basis described in Note 1 (a) to the consolidated financial
statements.

Shin Nihon & Co.
March 30, 2004

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

232003 Board of Directors / Corporate Directory.........................................................................................................

Board of directors
As of March 30, 2004

Chairman

Directors

Takaichi Mabuchi

Sun Zuei Che
Seiya Nakanishi

President

Yasuo Uehara

Shinji Kamei

Shunroku Nishimura
Yoshinori Sugimoto

Managing Director
Statutory Auditors

Nobuyo Habuchi

Kiyoshi Iwakura
Ichiro Ando
Yuzaburo Nagase
Toyokuni Yazaki

Corporate Directory
Consolidated Subsidiaries

MABUCHI MOTOR (JIANGSU) CO., LTD.

MABUCHI MOTOR AMERICA CORP.

As of December 31, 2003

No.1 Liuxu Rd.

3001, West Big Beaver Rd., Suite 520

Wujiang Economic Development Zone

Troy, MI 48084 U.S.A.

MABUCHI INDUSTRY CO., LTD.

Jiangsu Province, China

Tel: 1-248-816-3100

19 Sam Chuk St., San Po Kong

Tel: 86-512-6345-1111

Fax: 1-248-816-3242

Kowloon, Hong Kong

Fax: 86-512-6345-0438
MABUCHI MOTOR (SINGAPORE) PTE. LTD.

Tel: 852-2328-5575
MABUCHI MOTOR (MALAYSIA) SDN. BHD.

111 North Bridge Rd., #12-05

Plot 15, Kanthan Industrial Estate

Peninsula Plaza, Singapore 179098

MABUCHI TAIWAN CO., LTD.

31200 Chemor, Perak, Malaysia

Tel: 65-6339-9991

6/F No.3 Sec.1 Tun Hwa South Rd.

Tel: 60-5-201-1888

Fax: 65-6339-9091

Taipei, Taiwan

Fax: 60-5-201-2288

Fax: 852-2352-5266

MABUCHI MOTOR (EUROPE) GmbH

Tel: 886-2-2579-0155
MABUCHI MOTOR VIETNAM LTD.

Hahnstrasse 38, 60528

No.28, Bienhoa Industrial Zone 2Frankfurt/Main, F.R.Germany

MABUCHI MOTOR TAIWAN LTD.

Long Binh Ward, Bienhoa City

Tel: 49-69-6690220

No.66 Kaifa Rd., N.E.P.Z.

Dongnai Province, Vietnam

Fax: 49-69-66902229

Kaohsiung, Taiwan

Tel: 84-61-836711

Tel: 886-7-362-1111

Fax: 84-61-836712

Fax: 886-2-2570-6535

MABUCHI MOTOR (SHANGHAI) CO., LTD.
Room1409, PartC, Orient International Building

Fax: 886-7-361-9111
MABUCHI PRECISION INDUSTRIES

No.85 Loushanguan Road, Shanghai 200336

MABUCHI MOTOR DALIAN LTD.

HONG KONG LTD.

China

No.41 Harbin Rd., Dalian Economic

19 Sam Chuk St., San Po Kong

Tel: 86-21-6278-7764

and Technical Development Zone

Kowloon, Hong Kong

Fax: 86-21-6278-7767

China

Tel: 852-2328-5575

Tel: 86-411-8761-1111

Fax: 852-2352-1008

Non-Condolidated Subsidiaries
As of December 31, 2003

Fax: 86-411-8761-2900
DONGGUAN MABUCHI MOTOR

24

MABUCHI MOTOR WAFANGDIAN LTD.

EQUIPMENT CO., LTD.

Laohutun Town

No.16 Tianbao Road, Dongzong Road

Wafangdian City, Liaoning Province

Dongguan City, Guangdong Province

China

China

Tel: 86-411-8537-0241

Tel: 86-769-2256985

Fax: 86-411-8537-0291

Fax: 86-769-2256984

MABUCHI REAL ESTATE CO., LTD.
TAIWAN MABUCHI (HONG KONG) CO., LTD.

2003 Investor Information..............................................................

Investor Information
As of March 31, 2004
Corporate Headquarters
MABUCHI MOTOR CO., LTD.
430 Matsuhidai, Matsudo-shi
Chiba-ken 270-2280, Japan
Tel: 81-47-384-1111
Fax: 81-47-389-5299
http://www.mabuchi-motor.co.jp
Ordinary General Meeting of Shareholders
The Ordinary General Meeting of Shareholders will be held at the end of March in Matsudo.
Independent Accountants
Shin Nihon & Co. (Member Firm of Ernst & Young)Tokyo, Japan
Transfer Agent of Common Shares Handling Office
UFJ Trust Bank Limited
Corporate Agency Department
10-11, Higashi-suna 7-chome, Koto-ku
Tokyo 137-8081, Japan
Tel: 81-3-5683-5111
Japanese Stock Exchange Listing
Tokyo stock exchange

25

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