Integrated Report 2021
For the Fiscal Year Ended March 31, 2021

SHIBAURA MACHINE CO., LTD.
2-2, Uchisaiwaicho 2-Chome, Chiyoda-ku, Tokyo
100-8503, Japan
TEL: 81-(0)3-3509-0200
URL https://www.shibaura-machine.co.jp/en/

SM21050-PDF-ED

Contents
1. Story of SHIBAURA MACHINE
02

Our Starting Point

04

Our History

06

Strengths Honed over More Than 80 Years

08

Value Creation Process

10

Value We Provide to Society

2. Messages from Management
12

A Message from the Chairman

14

A Message from the President

3. Strategy
20

Fiscal 2020 Performance Review

22

Fiscal 2021 Results Forecast

24

A Message from the CFO

26

New SHIBAURA MACHINE Long-Term Vision 2030

30

 edium-Term Management Plan
M
“Management Reform Plan”

34

Performance Highlights

4. Special Feature
Our Strengths—Continuing to Support Key Industries
36

 HIBAURA MACHINE Technologies ThatS
Contribute to Key Industries

38

 ransforming Ourselves So ThatT
We Can Continue Contributing to Key Industries

40

 HIBAURA MACHINE Products—
S
Supporting Key Industries

5. Management Strategy by Company
42

Metal & Plastics Industrial Machine Company

44

Machine Tools Company

46

Control Systems Company

6. Sustainability Management of SHIBAURA MACHINE
48

Sustainability Management of SHIBAURA MACHINE

50

Social Initiatives

56

Environmental Initiatives

58

Special Feature: Specific Initiatives

60

Environmental Load from Business Activities
Environmental Data

62

Corporate Governance

68

Board Members

70

Messages from the Outside Directors

SHIBAURA MACHINE’s
The HRS-500 mastergear hobbing machine, completed in 1953

7. Corporate Data
72

10-Year Financial Data

74

Corporate Information

Manufacturing Products Never Seen Before
SHIBAURA MACHINE founder Kametaro Fujishima was passionate about realizing domestic
production and building the world’s No. 1 manufacturer. Passed down from generation to generation,

Editorial Policy

To help a wide range of stakeholders understand our efforts for long-term, sustained enhancement of corporate value, we have published Integrated Report 2021, our first such report.
We have compiled the report with an emphasis on factors that are particularly importantfor corporate value creation, including management strategies and environmental, social, andgovernance initiatives. Also, we have referred to The International Integrated Reporting Framework of the Value Reporting Foundation and the Ministry of Economy, Trade and Industry’s
Guidance for Collaborative Value Creation.

this passion has become part of our corporate DNA. We continue to welcome and overcome
challenges and thereby support society’s infrastructure.

Integrated Report 2021

01

Our Starting Point

Since

19 3 8The Tsurumi Plant at the time of our foundation

import from Europe and the United States at the time. Following an

Our Starting Point

order issued by President Fujishima, in 1951 the Company launched aconcerted effort to make the world’s most precise gears. In 1953, wecompleted the HRS-500 master gear hobbing machine, whose main
operation was milling the master gears of hobbing machines for ship

O initiative that led directly to the corporate culture we subsequently

reduction gears. From then on, we relentlessly pursued ever-higher

developed.

wheel achieved the world’s highest precision with a maximum cumula-ur founder Kametaro Fujishima embarked on an ambitious

In 1913, prior to the Company’s founding, Japan’s first turbine ship
became stranded off the coast of South America. The accident waslevels of precision. As a result, the seventh iteration of the master worm
tive pitch deviation of four thousandths of a millimeter.
Even today, this level of precision remains unsurpassed anywhere incaused by the ship’s imperfectly manufactured reduction gears. When

the world. Large hobbing machines equipped with high-precision worm

the high speed rotation of the steam turbine was reduced to match thewheels manufactured by the HRS-500 master gear hobbing machinerotational speed of the screw, the load concentrated on one tooth, whichhave been used for milling the large reduction gears of numerous shipbroke as a consequence. Upon learning that the poor quality of theturbines. In 2009, HRS-500 was certified as part of Japan’s Mechanicalgears was the cause, Fujishima resolved to contribute to the develop-

Engineering Heritage by the Japan Society of Mechanical Engineers.

ment of Japan’s shipbuilding industry by making the world’s best

Since our first groundbreaking achievements, a pioneering spirit thatmachine tools for the manufacture of reduction gears. The decision

makes the “impossible” possible through untiring research and effort

reflected his understanding of how crucial the development of shipping

has been inherited by each and every one of our employees. Moreover,

was to Japan as an island nation.

our mindset is precisely what enables us to do what others cannot andIn 1938, SHIBAURA MACHINE was founded with the mission of

The creators of the master gear hobbing machine

thereby solve an array of issues.

Founder

Kametaro Fujishima
Brief history
Founder of SHIBAURA MACHINE, born in 1886
After joining Shibaura Engineering Works Co., helped establish and became presidentof Shibaura Machine Tool Co., the predecessor of SHIBAURA MACHINE
Established the foundations of SHIBAURA MACHINE by rolling out numerous state-ofthe-art machine tools, including master gear hobbing machinesachieving domestic production of machine tools, which Japan had to

03
02

Integrated Report 2021

Our History

SHIBAURA MACHINE
Always Benefiting Key Industries

By working in close partnership with customers and providing them with solutions that SHIBAURA
MACHINE is uniquely qualified to realize, the Company has remained true to its founder’s commitment
to excellence. We have helped develop society and enrich day-to-day life through the provision of an
extensive range of machines for the manufacture of products that support society’s infrastructure.

Social Backdrop
1930s to 1940s

1950s to 1960s

From military demand to postwar
reconstruction

1970s to 1980s

High economic growth(heavy industry)

1938

Machine Tool Industry Law

1950s Shift from coal to oil

1973

First oil shock1945

End of World War II

1957

Beginning of color television sales

1979

Second oil shock

1958

Completion of Tokyo Tower

1947	Resumption of commercial export trade

1940

1950

1938

Machine tools

Moldings

1978	Establishment of local subsidiary in
Singapore

1989	Establishment of local
subsidiary in Taiwan

2012	Acquisition of a company in India 2019	Establishment of local­subsidiary in Italy2012	Establishment of plant in

19 60

1970

19 8 0TOSNUC transferred from
Toshiba Corporation

Die casting machines

RIM bumper mold

High-precision optical glass
mold press machine andmicro-pattern imprinting
machine04

Integrated Report 2021

2003

Vertical boring and turning mill
TMD-C series completed Additionof sliding surface specifications

2019

Micro-pattern imprinting
machine ST50 completed

Optical glass molding press machine
Die molding transfer system (large aperture)
GMP-207-9S completed

2015

2016

High precision aspheric generator ULC-100F(S) completed
0.1 nm control

2001

Programmable logic controller (PLC)
PMC-5 completed

High precision 5-axis machining
center
UVM-700E(5AD) completed

2018

Injection molding machine
controller INJECTVISOR-V21
completed

Injection molding machine
controller INJECTVISOR-V70
completed

2011

1996

Compact cartesian coordinate
robot BA-C compact arm
completed

SCARA robot business transferredfrom Toshiba Corporation

Secondary fiber processing
machine

1979

2001

1956

1981

1998

1953

1982

First plastic extrusion
machine model completed

High-precision coating unit
(CR) developed

Magnetic tape production
machine (coater) completedFirst injection molding
machine (preplasticating
method) completed

Extra-large injection­molding machine IS5000DN
completedJapan's first hydraulic die castingmachine completed

2014

2019

SCARA robot
THE600completed

2018

High cost performancetwin-screw extruder
TEM-58SSG completed

Ultra-high-torque twin-screw
extruder TEM-37SX
completed2016

Electric injection molding machine
EC series developed

2000

Magnesium hot chamber die
casting machine DHM-300
completed

1977

2015

Transfer of stocks

Hybrid swing systemdevelopment started

2020

Electron beam drawing machine
EBM-100/105H developed

1945

1972

Sheet-fed offset printing
machine produced

Offset rotary press completed

1966

Draft beer automatic fixed
quantity dispensing machinecompletedAll-electric injection molding machine
EC-SXIII series completed

Electric clamping die castingmachine DC1300R-E completed

2007

U-series hydraulic control
valve completed

2018

2020

Die casting machine
DC350R-M/H/EM/EH
completed

1987

Technology partnership for hydraulic equipment

All-electric injection molding machine
EC280SXII - EC550SXII completed

2014

Hybrid die casting machine
DEC150MT developed

1963

Food machinery

2005

High-precision opticalglass mold press machine
GMP-211 developed

1980

2020

Double column type
machining center
MPJ-2640M completed

Linear motor drive completed

1952

Semiconductor
manufacturing equipment
Printing presses

2014

1993

High-precision flat polygon
mirror generator UFG-200P
completed

2020–F UTURE

1960

Primary fiber processing
machineHydraulic equipment

2010

High-speed double column typedie-sinking machine
MPF-2140B completed

1987

Expanded to radiator-grill mold andautomotive mold business

20 0 01994

Gantry-type NC plano mirror MG-24/14A completed

1968

Thailand2012	Establishment of local subsidiaryin Thailand

1970

Plastic mold completed

19552008	Establishment of local subsidiary in
China (Shenzhen)

19 90

Industrial robots

Injection molding machines2020	COVID-19 pandemic

2002	Establishment of plant in China

1977

Extrusion machines

2015	Adoption of Paris­Agreement at COP21

1989	Establishment of local
subsidiary in Thailand

Electronic controls

Artificial silk production
machineOpening of Tokyo Sky Tree

1977	Establishment of local subsidiary inBrazil1982

1945

2014	Start of construction ofLinear Chuo Shinkansen

2011	Establishment of local subsidiary 2019	Establishment of local
in Vietnam­subsidiary in Mexico

High precision machine tools

Textile machinery2012

1995	Establishment of the World Trade
Organization

1998	Establishment of local subsidiary in
China (Shanghai)

1956

Mold production started

1993	Collapse of the bubble economy

1989	Establishment of local
subsidiary in Europe

5-m master gear hobbing machine completed

1946

1989	Fall of the
Berlin Wall

Toward an “IoT+m” society interconnected byadvanced technologies

1974	Establishment of local subsidiary in the
United States

1953

Machine tool production started

2010s to present

From processing to molding,creation of new businesses

2008	The collapse of Lehman Brothers

History of Overseas Expansion

1930

1990s to 2000s

Overcoming recession to expand
overseas

Transfer of stocks

1983

World’s fastest print speed offset
rotary press OA-4B2T-800D
completed

1981

Coffee MasterSDM-10A completed

1990

Beer server controller
HBS completed

1998

Sectional drive system rotogravure printing press
GSN series developed

2001

Offset rotary press transfer
to business

1999

Transfer to business

Integrated Report 2021

05

Strengths Honed over More Than 80 Years

We have accumulated unique strengths
through a consistent corporate stancedating back to the philosophy of
our founder.
Corporate value enhancement will be sustained by continuing to
improve strengths while providing customers and society with solutions that
the SHIBAURA MACHINE Group is uniquely qualified to realize.

Corporate Principles Connected to
the Founding Spirit
Corporate Identity

We will contribute to maximizing value forour customers around the world.
Basic Management Policy

Adapting to the times and innovating
We remain a company which adopts the latest technologies, adapts and innovates

Solution
Capabilities

without fear of change.

The Company has been able to resolve a variety of issues
by providing solutions that it is uniquely qualified to realize and leveraging strong relationships with customers.

Customer satisfaction which exceeds expectations
We not only meet expectations, but also achieve customer satisfaction which
exceeds expectations.

As companies continue transforming their businessmodels to address social issues, technological needs
are expected to increase. Working with customers, weContributing to society by helping to create infrastructure

will use our solution capabilities to help address social
issues and remain an indispensable member of society.

We take pride in our involvement in the industrial base and benefiting
society everywhere.

Technological
Capabilities

Three
Strengths

Developing human resources for the next generation

Customer
Relationships

SHIBAURA MACHINE has always placed the utmost

The Company has developed long-term relationships ofimportance on its technological capabilities and thetrust with a wide range of customers in many different

engineers who underpin them. This emphasis has led toindustries thanks to its previous focus on large products

the formation of eight technological platforms (Pleasewith relatively long life cycles as well as its basic approachsee page 36 for details.). Based on these platforms, weto value creation, which is to work closely with eachhave developed and manufactured advanced machines­customer and solve their particular issues. As we trans-

across a broad range of industries. In evolving a busi-

form our business model, these relationships of trust

ness model that combines products and services, ourwill continue to be an irreplaceable strength.

We will continue to nurture people who are responsible, take pride in their work, anddevelop their skills.

Appreciation, inspiration, and passion
We aim to share the excitement of creating solutions while remaining thankful toour customers, business partners, and families.

technological capabilities will be a major asset.

06

Integrated Report 2021

Integrated Report 2021

07

Value Creation Process

Continuing to Contribute to Key Industries

In accordance with its Corporate Principles, SHIBAURA MACHINE will partner with customers worldwide
and solve their issues by utilizing technological capabilities to create combinations of products andservices. Furthermore, we will work with customers to address the issues faced by global society. By
deepening our relationships with customers through the provision of high-value-added solutions, we willcontinue driving a powerful virtuous cycle that sustains corporate value growth.

I N P U T

O U T P U T
Helping Key Industries Develop through
SHIBAURA MACHINE’s Cycle for Increasing Value

Our products
Injection molding machines, Die casting machines,
Extrusion machines, Machine tools, Precision machines,
Industrial robots, Control systems

Human
CapitalAddressing social
issuesContributing to the SDGs

Combinations of products
and services that leveragetechnological capabilities

Intellectual
CapitalO U T C O M E

O U T C O M E
Resolving issues faced by key industries

Technological
Capabilities
Manufactured
CapitalIssue detection

Strengths

Solution
Capabilities

Examples of industries to which we contribute

Resolution ofcustomer issues

Customer
Relationships
Social and
Relationship
CapitalAutomotive, Rechargeable battery, Renewable energy,
Smartphone, Food packaging materials,
High-speed rail, Aircraft1  Realizing GHG-reduced products,3  Improving efficiency of and spreading2  Realizing resource-saving and

4  Improving performance of and1  Realizing robots that can symbiotically3  Upgrading and spreading2  Realizing autonomous production lines

4  Upgrading and spreading1  Realizing new materials that provide

3  Upgrading and evolving weight-saving

2  Spreading next-generation

4  Upgrading and spreading intelligent

technologies, and materials
energy-saving technologies

coexist with humans

01 Issue detection

08

Integrated Report 2021

spreading energy storage devices

Climate change andresource scarcity

Deeper relationships withcustomers and know-how
accumulation

NaturalCapitalFinancial
Capitalenergy creationwater purification technologies

Rapid urbanization andchanges in population structures

sterilization technologies

03 Resolution of customer issues

Detecting potential issues ahead of time and designingsolutions for them

Solving issues by providing value that not only meets but
exceeds customer expectations

02 Combinations of products and services thatleverage technological capabilities

04 Deeper relationships with customers and knowhow accumulation

Adding intangible value to products through self-improvement Improving satisfaction of customers to deepen relationand utilization of internal and external resources
ships with them and accumulate know-how that leads tothe creation of new value

novel functions

communications (5G / 6G)

technologies

Advancements in technology

devices

Integrated Report 2021

09

Value We Provide to Society

SHIBAURA MACHINE’s Vision for the Future
Together with our customers, we are engaged in business activities aimed at realizing a better society.
SHIBAURA MACHINE will continue utilizing its technological capabilities and knowledge not only to reduce
environmental burden but also to make people’s lives safer and more rich.

Key Words

Decarbonization, Weight saving, New materials, Electric vehicles

Environmental Burden Reduction

Key Words

Digital transformation, AI and the IoT,
Improving productivity

Creation of High-Quality Products

through Products

through Technological Innovation

SHIBAURA MACHINE has developed and supplied eco-products that lower environmental impact by

We are forging ahead with “SHIBAURA DX” (digital transformation), which entails the use of digital twins

reducing the weight of components and their number. Today, we are developing products that will

and other leading-edge technologies to complete processes from development and design through tocontribute to global initiatives to realize a decarbonized and recycling-oriented society. We haveproduction planning, verification, and prototype verification in virtual spaces. The completion of 99.7%

already contributed to the development of new materials that can be used as alternatives to paperof such processes virtually will dramatically improve productivity. In addition, by creating data-based

and plastic, such as cellulose nanofibers and stone paper, which is made from limestone. Also, we

connections to all processes and automatically collecting, analyzing, and utilizing digital data in line

are helping reduce environmental burden by providing LiB separator film production lines—essential

with the “IoT+m” concept, we will efficiently create high-value-added products, thereby simultaneously

for the spread of electric vehicles.

heightening our profitability and increasing the competitiveness of our customers.

Social Value that SHIBAURA

Optimal Production Lines

MACHINE Will Provide

Natural Energy
Dissemination

Enabled by Automation
In the manufacturing industry, the shortage of labor due to a declining working population has

Through a range of products, we are contributing to the spread of renewable energy, which is being intro-

become a social issue. Expectations are growing with respect to industrial robots, including collabor-

duced worldwide as an alternative energy source to fossil fuels. Our products help improve the performance

ative robots that work with people. We are contributing to plant automation by providing system engi-

of a wide range of products for power generation, transmission, and storage. For example, our manufactur-

neering, high-precision, high-quality industrial robots and SCARA robots as well as comprehensive

ing equipment enables the production of rechargeable battery components that improve power storage

support for entire plants. Going forward, we will contribute to the innovation and competitiveness of­performance. Further, we help improve power generation efficiency through our manufacturing equipment

customers’ production lines by combining various technologies with control, mechatronics, and IoT

for Fresnel lenses used in solar power generation and our manufacturing equipment for the pivot drilling oftechnologies to realize unmanned production lines and robots that can coexist with humans.

wind power generation equipment. We will continue to support the spread of renewable energy by making
full use of the technologies we have accumulated.

Key Words

10

Integrated Report 2021

Labor productivity improvement, Collaborative robots,
System engineering, Plant automation

Key Words

Renewable energy, Wind power,
Rechargeable batteries

Integrated Report 2021

11

A Message from the Chairman

Fulfilling Our Mission through Continued Support
for Key Industries

differentiation based only on the durability and precision of our
products, we will not be able to compete with overseas manufacturers, who boast overwhelming cost competitiveness. To survive, thenewly established SHIBAURA MACHINE Group must depart from

New SHIBAURA MACHINE Long-Term Vision 2030 sets out anexisting practices and take the challenging path by providing new

ideal role for the Group, calling on it to address social issues andadded value that exceeds customer expectations.

enhance corporate value through outstanding technological innovations that help the global manufacturing industry adapt to mega-

Providing Value That Exceeds Customer
Expectations

trends. Based on the eight technological platforms that we havebuilt and tirelessly improved, we will focus on energy and the environment, labor productivity improvement, AI and the Internet ofThings (IoT), and new materials. I am convinced that our social

Yukio Iimura
ChairmanIn providing new added value that exceeds customer expectations,

mission, and the only way to sustainably enhance corporate value,

we must anticipate customer issues and offer solutions to them inis to help key industries address the challenges of a new era—an

the form of services that supplement our products. In realizing thisapproach that is in line with New SHIBAURA MACHINE Long-Term

added value, we needed to change from a vertically integrated orga-

Vision 2030 and the strategy we have consistently pursued since

nization optimized for the manufacture of individual products into

our establishment in 1938. To fulfill this social mission, the newan agile organization capable of sharing resources flexibly and to

SHIBAURA MACHINE must do whatever it takes to accomplish thefocus our energy on target growth fields. Therefore, we have shiftedManagement Reform Plan. We have been steadily implementing

from a business unit system to an in-house company system.

the plan by advancing a range of measures to strengthen corporate

The aim of this reorganization is not only to allow adjustments

governance. For example, we have established a Board of Directors

to fluctuations in the workloads associated with each productin which independent outside directors constitute a majority,

through flexible assignment of personnel but also to achieve more-

actively recruited external personnel, and reformed executive com-

fundamental improvement in productivity. As well as being anpensation. As part of management reforms, in June 2021 I ceded

advantage, our unique competence in realizing large special-purposethe position of chief executive officer to our president, Shigetomomachines has been a disadvantage in terms of management ineffi-

Sakamoto, and shifted my focus to supervising the execution ofciency due to long manufacturing cycles and retrograde adjust-

operations.

ments to processes. Another management-related disadvantage

As the SHIBAURA MACHINE Group instills its founding spirit in

has been a business portfolio that comprises multiple businessall employees and advances in concert along a challenging path, I

models based on different manufacturing cycles and asset uses.

would like to ask our shareholders, investors, and all other stake-For example, in addition to business models based on large special-holders for their continued support.

purpose machines, we have business models designed for injection

We will continue supporting key industries byadvancing along a “challenging path.”molding machines, which have annual production volumes of sev-

August 2021

eral thousand units. To eliminate the aforementioned management
inefficiencies at a fundamental level, our R&D center is leading the“SHIBAURA DX” (digital transformation) initiative.
Each in-house organization is creating a database of businessprocesses, including design, manufacturing, processing, and maintenance, and shared business process architecture. Being able to

Chairman

manufacture different products based on the same architecture willencourage collaboration among in-house organizations and enable

Regaining Our Founding Spirit

23 units. For this reason, it is difficult to say the initiative was eco-

us to concentrate our resources on priority fields. Further,nomically rational in the short term. However, our predecessors’“SHIBAURA DX” is promoting the use of digital twins with the aim

In 1940, we began developing Japan’s first large hobbing machine.

ambitious initiative was essential in enabling us to accumulateof simultaneously reducing costs, shortening lead times, andUltimately, a master worm wheel machined by the HRS-500 mastermany different technologies and create an extensive productheightening quality by verifying manufacturing processes in virtual

gear hobbing machine achieved the world’s highest precision: alineup. We have been able to continue supporting key industries inspaces rather than at customers’ production sites. “SHIBAURA DX”

maximum cumulative pitch deviation of four thousandths of a milli-

Japan and overseas precisely because we have retained the mind-

will play a pivotal role in our provision of added value that exceeds

meter, which far surpassed customer requirements. At the time, theset of our founders, who believed in the future and advanced along

the expectations of customers around the world.

Company invested an amount twice that of its capital but sold only

a “challenging path.” At the present juncture, if we continue to seek

12

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13

A Message from the President

By combining products and services to provide
high added value, SHIBAURA MACHINE will remain
a company needed by society.

The New SHIBAURA MACHINE—Continuing toSupport Key Industries
After separating from the Toshiba Group in March 2017, the Company changed its corporate name to SHIBAURA MACHINE CO., LTD.,
in April 2020 and embarked on a new journey. Since its establishment in 1938, the Company has consistently contributed to the
manufacturing operations of key industries in each era by providing“mother machines,” or “machines for making machines,” as Japan’s
industrial structure has evolved. To continue supporting Japan’s
manufacturing industry going forward, we must establish a cycle
in which we increase competitiveness and profitability, generate
profits, invest for the future, and achieve sustainable growth in corporate value. To this end, we must also chart a reliable course thatwill enable us to survive as an entity independent of the Toshiba
Group. Moreover, given the major change in our shareholder composition, this course must garner the endorsement of a wide rangeof shareholders. The senior management team’s determination to
set out a viable course for SHIBAURA MACHINE is reflected in a
medium-term management plan covering the period through to
fiscal 2023—the Management Reform Plan—and a long-term roadmap extending through to fiscal 2030—New SHIBAURA MACHINE
Long-Term Vision 2030—both of which were announced when the
new SHIBAURA MACHINE was established in February 2020.

Decisively Improving Profitability Based on theManagement Reform Plan
In recent years, we have focused on increasing the output and salesof general-purpose machines. Premised on high economic growth

Shigetomo Sakamoto
President
Chief Executive Officer
Chief Operating Officer

rates, this approach of selling large volumes of products withnarrow profit margins is no longer viable due to the stagnation ofJapan’s economy and the rise of companies with strong cost competitiveness in China and other parts of Asia. As a result of thesefactors, the Company’s low profitability became chronic. For this14

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Integrated Report 2021

15

A Message from the President

reason, the Management Reform Plan, announced in February

2020, we focused on improving our profit structure by reducing

2020, marked a clear shift in emphasis toward profitability, setting

fixed costs. However, while reaping the benefits of these reforms,

as quantitative targets for fiscal 2023 net sales of ¥135.0 billion, an

beginning from fiscal 2021 we will shift our focus onto improving

operating margin of 8.0%, a dividend payout ratio of approximately

profitability through increased productivity.

Providing High Added Value by Combining
Products and Services
New SHIBAURA MACHINE Long-Term Vision 2030 looks beyond

40.0%, and ROE of 8.5%. To achieve these targets, we first had toFirst of all, we plan to steadily reorganize our plants in line with

the Management Reform Plan to our reinvention as a highly profit-

eliminate fundamental inefficiencies that had developed over thethe in-house company system by fiscal 2023. In Japan, we will con-able company that continuously achieves ROE of more than 10.0%.

years and transform into a highly profitable organization.

centrate molding machines at the Numazu Plant, machine tools

To this end, we will pursue four overriding strategies (see page 26).

Our use of a business unit system for approximately 80 years

at the Gotemba Plant, and control machines at the Sagami Plant

Of these strategies, our Companywide strategy will be to develop

entrenched the optimization of discrete operational areas. Conse-to consolidate engineering departments that work with similar

new businesses that combine products and services and thereby

quently, our organization and work processes became rigid and var-machines but have hitherto been dispersed, thereby increasing

increase profitability and earnings opportunities.

ious inefficiencies arose. To rectify these problems, we transitioned

technological synergies and design efficiency. Through the estab-

By working in close partnership with customers and carefully

from the business unit system to an in-house company system.

lishment of a new “smart” machining factory, the Numazu Plant

investigating their needs, we have built customized machines andBy reorganizing seven business units into the Molding Machine,

will also function as the mother plant for the entire Company.

provided high added value in the form of low costs, high productiv-

Machine Tools, and Control Systems in-house companies, we have

Further, we will build an optimal production portfolio based on

improved management efficiency, clarified responsibility for busi-

the characteristics of domestic and overseas markets. We provide

partnerships we have with market-leading customers are irreplace-ness results, and delegated authority over management resources.

equipment that enables players in key industries, especially manu-

able assets for our sustained progress. In recent years, society’s

Furthermore, the reorganization has enabled overall optimization by

facturers, to grow. Therefore, in countries with mature economic

expectations have been increasing with respect to countermea-

addressing the issue of dispersed and duplicated functions. Also,

growth such as Japan, repeat orders will be our main source ofsures for climate change and other issues common to all human-

we have established the Production Center to consolidate control

orders. Meanwhile, in China and India, where economic growthkind. Consequently, increasing numbers of companies areover manufacturing functions, including production and procure-rates remain high, we expect significant increases in order volumes.

incorporating the Sustainable Development Goals (SDGs) into man-ment, casting and machining, and overseas manufacturing bases.

Accordingly, in such markets we will follow the principle of local

agement strategies and seeking economic development throughMoreover, we have established a new R&D Center at the Sagami

procurement and production for local consumption and pursue

innovation that addresses environmental and social issues. We will

Plant, in the Tokyo metropolitan area, to consolidate R&D functions,­efficiency through the mass production of a limited variety of prod-

be able to fulfill our ideal role of simultaneously addressing social

secure talented personnel, and accelerate technology development

ucts, with a focus on small and medium-sized injection molding

issues and enhancing corporate value if we can reliably continue tobased on industry–academia collaboration. In addition, we have set

machines and die casting machines. Beginning from the second

help resolve the problems of our customers as they react to theup a new head office in Tokyo with the aim of strengthening corpo-

half of fiscal 2021, in China, Thailand, and India, we will meet theinteractions with markets facilitated by their finished products andrate governance by increasing the frequency of communication

automation needs of 5G and smartphone component plants inopen up new markets in line with society’s current needs. In thesewith outside directors. Needless to say, we have taken a range ofChina and Southeast Asia by consolidating the products that eachways, we will be able to contribute to the achievement of the SDGs

measures to reduce fixed costs and thereby curb the increase inof our bases specializes in, such as small and medium-sized injec-

through our business activities. We will not only cater to our cus-

expenses arising from the establishment and relocation of bases.

tion molding machines and SCARA* robots. In India, we are moving

tomers’ requests but also unearth the seeds of new demand and

For example, while implementing the aforementioned reorganiza-

forward with plans to build a new plant in anticipation of the end ofactively offer solutions based on combinations of products andtion, we launched a voluntary retirement program and reassigned

the pandemic. Meanwhile, in Japan we will concentrate on high-­services that help address social issues.

personnel to optimize resource allocation and reduce fixed costs.

value-added products, including large injection molding machines,

In response to a major global trend toward decarbonization, theI believe that we are beginning to see certain benefits from ourlarge die casting machines, extrusion machines, and ultra-precision

automotive industry is pursuing significant structural changes thatreforms. In fiscal 2020, ended March 31, 2021, we were able to real-processing machines. We will also focus on robot technologies thatcan be summed up by the acronym “CASE,” which stands for con-ize operating profit despite the steep decrease in net sales caused

are directly linked to the Internet of Things (IoT). In this way, we will

nected, autonomous, shared and service, and electric. Through aby the COVID-19 pandemic, which led to a deterioration in the busi-

take sure-footed steps toward the accomplishment of the Manage-

variety of products, we can contribute to the realization of theseness environment and the suspension of business talks withment Reform Plan. At the same time, SHIBAURA MACHINE will

structural changes. For example, we can use large injection mold-customers.

transform into a company able to provide high added value thating machines, die casting machines, and functional resin kneading

caters to society’s future needs and facilitates dramatic technologi-

machines to help reduce the weight of car bodies, which is becom-

cal advances. This overall goal is set out in New SHIBAURA

ing essential as larger-capacity batteries are introduced. We can

MACHINE Long-Term Vision 2030.

also use ultra-precision processing machines, which boast a large* Selective compliance assembly robot arm

share of the global market, and glass molding machines to meet

Shifting Our Focus onto Productivity Improvement

ity, outstanding performance, and durability. The long-cultivated

In fiscal 2021, ending March 31, 2022, demand is showing signs ofdemand for camera lenses included in vehicle-mounted visual sen-recovering in step with the gradual normalization of the economy insors. Further, we are in the process of ramping up our production

Japan and of those overseas. Automobile-related orders are partic-

capacity to cater to an increase in orders for extrusion machinesularly robust, and we expect to increase revenues and earnings andused in the manufacture of separator films for lithium-ion batteries.

By solving customers’issues, we will
simultaneously addresssocial issues and enhance
corporate value.

achieve numerical targets for the current fiscal year. Up until fiscal

16

Integrated Report 2021

Integrated Report 2021

17

A Message from the President

We will also help address social issues by providing added value­shortens lead times and improves product performance and quality.

conduct M&As. Our policy will be to carefully select investees based

through a wide range of other products, including high-pressure

Moreover, this approach eliminates reworking as customers can ana-

on strict criteria.

continuous press machines, which save energy in production

lyze the performance of finished products in advance. Particularly for­processes by increasing productivity; injection molding machines

us, inherent inefficiencies will become advantages in the sense of

platforms for the creation of new technologies. These centers will train

and die casting machines that enable the production of light, high-offering significant scope for profitability improvement.

and deploy specialists while promoting the utilization of external

strength components; extrusion machines that save resources by

I will meet my responsibilities through the unwavering
implementation of theManagement Reform Plan.

Under “SHIBAURA DX,” we are also envisioning operations further
in the future. In 2019, we began rolling out machiNet, a platform forners. Also, we are reforming our personnel evaluation system from a­traditional plastics; and laborsaving robots.

IoT-enabled manufacturing. The platform avoids sudden production

seniority-based system into one based on performance evaluations.

Meanwhile, we will create new businesses. One example of the

stoppages by automatically collecting real-time operational data andWe have already completed the introduction of a system under which

capabilities we have developed that will form the basis of new busi-

using AI to analyze it and diagnose issues. Furthermore, machiNet will

managers are assigned to positions with specific job descriptions, andnesses is the addition of new functions through surface structure con-

help realize smart factories by connecting equipment through awe plan to extend the scope of this system to include general employ-trol. We will differentiate ourselves by providing new value-added

common protocol, thereby transforming our output-driven businessees beginning from fiscal 2022. Furthermore, we will leverage thisproducts that enable customers to generate profits, such as film cast-model into one that is stock based.

system to recruit highly skilled professionals who are well versed in theing equipment and coating machines that add dissimilar materials to

leading-edge technologies needed to advance “SHIBAURA DX.” Also,

surfaces and imprint equipment adding fine shapes to surfaces.

we will proactively take measures to promote diversity as well as

In recent years, as respective companies have realized general-

Adding Value to Our Entire Business Model

mental and physical health so that a diverse group of talented personnel can maximize their abilities in our workplaces.

petition has shifted to cost. As for large special-purpose machines,

Aiming to transform and add value to SHIBAURA MACHINE’s entire

there is a limit to how far we can differentiate and increase profit-

business model through such measures as the development of busi-

ability based on the performance of individual products. In develop-

nesses that combine products and services, each in-house company

ing new businesses that combine products and services andwill build a portfolio of highly profitable products. Specifically, while

thereby increase profitability and earnings opportunities, we will not

downsizing or withdrawing from operations for commodity machines

only use technologies to reflect social megatrends but also provide

as well as for small machine tools and other models with low profit-

Through the reforms implemented to date, SHIBAURA MACHINE is

new added value in terms of processes. At the core of these efforts

ability, we will invest heavily in high-value-added domains and growthsteadily developing a lean profit structure. However, we must also recog-

is the “SHIBAURA DX” (digital transformation) strategy.

markets where we have advantages, such as large machine tools,

nize that the corporate culture and work methods that have been estab-ultra-precision processing machines, and injection molding machines.

lished over our long history are not easy to change. With this in mind, I

Growing overseas sales is another main pillar of New SHIBAURA

intend to continue holding dialogues so that members of the senior

Pursuing Efficiency through “SHIBAURA DX”

Enhancing Corporate Value Continuously over theLong Term

MACHINE Long-Term Vision 2030. The key in this regard will be to

management team and employees develop a shared sense of crisis. In

increase overseas sales of machine tools, which account for aroundcarrying out reforms based on a long-term perspective, we must ensure

When the performance of a product has not met expectations or when a

30% of the overall sales of these products, a low level comparedthat our shareholders have a clear understanding of our management

customer has made additional requests for a product, we have solved

with the sales breakdowns of industry peers and our other products.

policies. Therefore, I would like to deepen communication with share-such problems by using the manufacturing skills of our on-site person-

In growing sales of machine tools overseas, we will avoid general-­holders, analysts, and independent outside directors, who are the repre-

nel. This craftsmanship is part of the tradition of SHIBAURA MACHINE

purpose machines, where competition is fierce, and focus on fields

sentatives of shareholders; listen sincerely to stakeholders’ valuable

and remains its unseen strength to this day. In improving productivity

in which we can provide high added value and demonstrate our

opinions; and reflect them in our management decisions.

and profitability, however, the elimination of the inefficiencies inherent

strengths, such as large machines and ultra-precision processingin our business model—such as the wastefulness of manufacturingmachines. Over the medium to long term, we will achieve differentia-

mindful of our long-term vision while unwaveringly implementing thethrough repeated revisions and reworking as well as the long construc-tion by combining products and services.

Management Reform Plan and producing results. As we reform, I would

tion periods of large machines—has become a pressing task.

Integrated Report 2021

resources through the active formation of alliances with external part-

creating new materials capable of being used as alternatives topurpose products with a certain level of quality, the focus of com-

18

The R&D and Production centers I mentioned earlier will serve as

Achieving unprecedented, bold changes through in-house

I will meet my responsibilities to all our stakeholders by remaining

like to ask our stakeholders for their continued support and guidance.

One of the aims of “SHIBAURA DX” is to change from a businessresources alone is unrealistic. For this reason, we will depart from ourmodel that relies on the aforementioned post-processes to one that

preference for self-sufficiency. We have already demonstrated this new

improves the efficiency of manufacturing as a whole by making full

approach in China by partnering with local engineering companies touse of advanced technologies in design and other front-end pro-

localize the installation of LiB separator film production lines, and we

cesses. The concept of “SHIBAURA DX” is to utilize digital twins to vir-

have seen a rapid rise in inquiries regarding this type of equipment. In

tually recreate and achieve 99.7% completion of all processes fromsimilar ways, we will further strengthen collaborations with other part-the definition of requirements, development, and design through toners who can help us expand domestic and overseas sales channels,

production planning and prototype manufacturing and verification—

improve production efficiency, and acquire technologies that address

processes that used to take an enormous amount of time. The use

social issues. In addition, we will consider reinforcing the technologies

Chief Executive Officerof digital twins is beneficial both to us and customers because itthat we need by taking advantage of our strong financial base to

Chief Operating OfficerAugust 2021

President

Integrated Report 2021

19

Fiscal 2020 Performance Review and Fiscal 2021 Results Forecast

Fiscal 2020 Performance Review

Fiscal 2020 Results by Segment
Metal & Plastics Industrial Machine Segment

Net sales decreased significantly year on year due to weak capital investment demand both in Japan and overseas as a result

Sales of injection molding machines increased in North America and China, which were among the first countries to recover from the COVID-19of the COVID-19 pandemic. In the second half of Fiscal 2020, however, signs of recovery emerged mainly in China and the

pandemic. However, sales of these machines remained lackluster in Japan and Southeast Asia. Orders rose amid conspicuous pickups in themarkets of North America, China, and India.

United States.
Lower net sales and deterioration in capacity utilization led to marked year-on-year declines in operating profit and ordi-

Die casting machine sales and orders declined, reflecting softening capital investment demand in Japan and overseas.
Although sales of extrusion machines decreased, sales of manufacturing equipment for sheets and films that are used as newnary profit. SHIBAURA MACHINE was able to secure operating profit thanks to the recovery of markets in North America andenvironment-friendly materials grew in Japan. In China, orders increased for LiB separator film production lines and optical sheet and film

India as well as reductions in activity expenses and other fixed costs.

manufacturing equipment.

Loss in this term attributable to parent company shareholders was recorded due to a partial reversal of deferred tax assets.

(Injection molding machines, die casting machines, extrusion machines, etc.)

Net sales

Consolidated Business Results

Operating profit

Summary of Business Results(Unit: billions of yen)

FY2020FY2019YoY amount change

YoY percentage change

64.3

77.2

–12.9

–16.7%

1.1

3.7

–2.6

–69.1%

Operating profit ratio

1.8%

4.9%

—

–3.1 pts

Amount of orders received

63.7

63.1

+0.6

+1.0%

(Unit: billions of yen)

FY2020Net sales
Operating profit / Profit ratio

FY2019Machine Tools Segment

Change

92.6

116.7

–24.1

Sales of industrial and construction machine tools were down in Japan and overseas. As for orders, the second half of the fiscal year saw

0.3

3.5

–3.2

capital investment in industrial machinery and wind power generation and other energy-related sectors recover, particularly in Japan, China,
and North America.

0.4%

3.0%

–2.6 pts

0.8

3.8

–3.0

0.9%

3.3%

–2.4 pts

Net profit (loss) in this term
­attributable to parent company
shareholders / Profit ratio

(2.8)

7.3

–10.1

(3.1)%

6.3%–9.4 pts

Amount of orders received

88.6

94.2

–5.6

Ordinary profit / Profit ratio

Exchange rate (US$1)

¥111

¥109

While sales of high-precision machines for optical molding rose in Japan, high-precision machine sales declined in China and Taiwan.
Orders were down for high-precision machines for optical molding in Japan and overseas.
(Machine tools (large machines, double column type machining centers, boring machines, vertical boring and turning mills, etc.), precision machines, etc.)

FY2020FY2019(Unit: billions of yen)

YoY amount change

YoY percentage change

Net sales

20.8

29.6

–8.8

Operating profit (loss)

(0.8)

0.3

–1.1

–29.7%—

Operating profit ratio(4.0)%

1.0%—–5.0 pts

Amount of orders received

17.4

22.8

–5.4

–23.6%

Control Systems Segment
Operating Profit (Segment)(Billions of yen)

Ordinary Profit / Net Profit (Loss) in This Term Attributable to Parent Company Shareholders

M&P*–2.6 (–69.1%)

3.5
0.3

4.0

–3.2 (–89.2%)

3.0

3.7

2.0

0.3

1.0

Others 0.0
0Control(0.5)
Systems (0.0)

–1.0

M&P

Machine Tools–1.1 (—%)

Machine Tools

1.1

Control Systems+0.0 (—%)(Billions of yen)

–10.1 (—%)

6.0
4.0
2.0

–3.0 (–77.2%)

7.3

3.8

Including disposal of
NuFlare Technology,
Inc., shares (approx.
¥5.0 billion)

which stemmed from postponement of capital investment in Japan—outweighed steady sales of and orders for SCARA robots for automatedequipment that is used in the assembly of smartphones and electronic devices in China and linear motors for equipment that is used in the
manufacture of semiconductors in Japan.
(Industrial robots, Electronic controls, etc.)

(Unit: billions of yen)

FY2020FY2019YoY amount change

YoY percentage change

Net sales

7.3

9.1

–1.8

Operating profit (loss)

(0.0)

(0.0)

+0.0

–19.3%—

Operating profit ratio(0.5)%(0.4)%—–0.1 pts

Amount of orders received

6.1

6.4

–0.3

–5.0%

0.8
0
–2.0

FY2020–4.0

Control Systems

Ordinary profit

8.0

Control(0.8)
Systems (0.0)

FY2019Net profit (loss) in thisterm attributable toparent company
shareholders

The control systems business saw sales and orders decrease because lower sales of and orders for servo motors and other products—

Including reversal of deferred
tax assets (¥(2.7) billion)

FY2019FY2020FY2019(2.8)

FY2020

Others* Metal & Plastics Industrial Machine

20

Integrated Report 2021

Integrated Report 2021

21

Fiscal 2020 Performance Review and Fiscal 2021 Results Forecast

Fiscal 2021 Results Forecast(As of announcement on November 9, 2021)

Fiscal 2021 Forecast by Segment
Metal & Plastics Industrial Machine Segment

In fiscal 2021, ending March 31, 2022, the economic environment is likely to remain uncertain due to geopolitical risks, theIn addition to robust demand for products related to medicine and containers, demand in Japan and overseas for products related to auto-

COVID-19 pandemic in Japan and overseas, and supply chain disruptions, such as the global shortage of semiconductors.

mobiles, including electric vehicles and rechargeable batteries, is expected to increase.

Nonetheless, the economic environment is generally picking up as national economies recover from the pandemic and(Injection molding machines, die casting machines, extrusion machines, etc.)

demand related to electric vehicles and energy grows.
Given the aforementioned recovery in orders at present, in fiscal 2021 we expect increases in orders and net sales to

FY2021
Forecast

FY2020Results

YoY change

113.0

92.6

+20.4

4.3

0.3

+4.0

3.8%

0.4%

+3.4 pts

3.8

0.8

+3.0

3.4%

0.9%

+2.5 pts

2.8

(2.8)

+5.6

2.5%

(3.1)%+5.6 pts+66.4

Operating profit / Profit ratio
Ordinary profit / Profit ratio
Net profit (loss) in this term
­attributable to parent company
shareholders / Profit ratio
Amount of orders received

155.0

88.6

Exchange rate (US$1)

¥107

¥111

Operating Profit (Segment)

4.0

工作機械

3.0

M&P
+1.8 (2.5 times)
0.4

1.0

Machine Tools+1.8 (—%)(Billions of yen)

Ordinary profit

4.5

Net profit (loss) in thisterm attributable toparent company
shareholders

0.3

1.0

Others 0.0
0

1.1

2.9
Others 0.0

Control(0.8)
Systems (0.0)–1.0

FY2020

M&P

Machine Tools

Control Systems

22

Integrated Report 2021

FY2021(forecast)Others

3.7%

1.8%

―

63.7

+50.1

+21.0%
2.5 times+1.9 pts+78.6%

Control Systems+0.4 (—%)(Machine tools (large machines, double column type machining centers, boring machine, vertical boring and turning mills, etc.), Precision Machines, etc.)

(Unit: billions of yen)

FY2021 Forecast

FY2020 Results

Net sales

26.1

20.8

+5.3

+25.0%

Operating profit (loss)

1.0

(0.8)

+1.8

―

Operating profit ratio

3.8%(4.0)%

Orders

30.7

17.4

YoY amount change

―
+13.3

YoY percentage change+7.8 pts+76.1%

Control Systems Segment
Demand is likely to increase for robots related to smartphones, linear motors for semiconductor manufacturing equipment, and automationand labor-saving systems.
(Industrial robots, electronic controls, etc.)

(Unit: billions of yen)

FY2020 Results

YoY amount change

YoY percentage change

Net sales

9.6

7.3

+2.3

Operating profit (loss)

0.4

(0.0)

+0.4

+29.8%—

Operating profit ratio

4.2%(0.5)%―+4.7 pts

Orders

9.4

6.1

+3.3

+52.8%

Basic Dividend Policy
We set a basic policy to maintain stable dividends and share profits according to business results while strengthening our management
structure with the aim of increasing profitability.
We will utilize earned surplus to make effective investments in production equipment, technology development, overseas business­expansion, and other purposes based on strategic decisions on future business development to achieve continuing corporate evolution,

3.0 +3.0 (4.4 times)

3.8

2.8

1.5
2.0

+1.8

FY2021 Forecast

Ordinary Profit / Net Profit (Loss) in This Term Attributable to Parent Company Shareholders+4.0 (11.3 times)

+13.5

1.1

lenses for smartphones and automobiles.
(Unit: billions of yen)

制御機械

64.3

2.9

YoY percentage change

We expect higher demand for machine tools for automobiles, wind power generation equipment, industrial machinery, and the molding of



4.3

77.8

113.8

YoY amount change

Machine Tools Segment

Summary of Business Results and Fiscal 2021 Results Forecast

5.0

Net sales
Operating profit
OrdersConsolidated Business Results Forecast(Billions of yen)

FY2020 Results

Operating profit ratio­surpass the targets set for fiscal 2021 in the Management Reform Plan.

Net sales(Unit: billions of yen)

FY2021 Forecast

0.8

while continuously realizing appropriate returns to our shareholders.

Dividend Results and Forecast

0

–1.5

–3.0

FY2020

FY2021(forecast)(2.8)+5.6 (—%)

FY2020

FY2021(forecast)IntermYear-end

Full year

Dividend payout ratio(consolidated)

FY2019 results¥42.5*1¥42.5*1¥ 85.0

FY2020 results

¥37.5

¥37.5

¥199.3*2

28.0%—

FY2021 forecast

¥37.5

¥37.5

¥ 75.0181.1%*1 The interim and year-end dividends each included a memorial dividend of ¥5.
*2 The Company provided a special dividend totaling ¥3 billion (¥124.30 per share) on the record date of June 30, 2020, and the full-year dividend for fiscal 2020 included the aforementioned special dividend of ¥124.30.

Integrated Report 2021

23

A Message from the CFO

Uses of Cash Flows Between Fiscal 2019 and Fiscal 2023
The Company will return a total of ¥15 billion to its shareholders by making capital and personal investments of ¥30 billion and carrying out

I will realize the mission that

M&As with the aim of achieving ¥135.0 billion in net sales and ROE of 8.5% in fiscal 2023.

I have set myself—theaccomplishment of the

Resources to maximize shareholder value

Management Reform Plan.

Operating cash flows¥21.5 billion

Hiroaki Ota

Cash-in from sale of NFT* shares¥15 billion

Investment
Structuralreformexpenses¥3 billion

Director
Chief Financial Officer, Executive Operating Officer
In charge of Corporate Strategic Planning Division

Capital investments¥25 billion

Cash on hand

Shareholder returns
R&D /personnel
investments¥2 billion

M&As

Dividends (including special dividend)¥15 billion* NuFlare Technology, Inc.

Rigorous Improvement of Productivity
Against the backdrop of trade friction between the United States andChina, the Company experienced a significant decline in profitability
around 2019. Looking back over the past decade, net sales, operating
profit, and market capitalization have all been flat, while ROE hasremained below the expected cost of shareholders’ equity. In otherwords, SHIBAURA MACHINE has not generated corporate value for along time. To continue meeting the expectations of all our stakeholders, we urgently need to transform into a highly profitable company.
Based on a sense of crisis in this regard, we are forging ahead with the

Our core measures to improve production efficiency are a shift from aand cash on hand in an optimally balanced manner. Of this cash, we

fiscal 2022. However, the negative impact on net sales of approxi-

business unit system to an in-house company system and the accom-

have earmarked ¥30.0 billion for structural reforms, capital expenditures,

mately ¥13.0 billion expected as a result of this change has alreadypanying consolidation and streamlining of production bases as well as

R&D, and personnel investments in the period through fiscal 2023. We

been factored into our plan. On the other hand, orders are currently

the relocation of production to the most suitable regions in Japan andare strictly managing investment efficiency based on a hurdle rate forpicking up. Therefore, we expect net sales to grow 14.0% year on year,

overseas. Reorganizing seven business units into three in-house com-

both the introduction of new equipment and the development of new

with particularly strong contributions from extrusion machines usedpanies and allocating categories of mechanically similar products tomodels that is linked with the 8.5% ROE target. Also, to acquire suchin the manufacture of separators for lithium-ion batteries and ultra-­individual in-house companies will allow us to assign personnel flexibly

resources as the personnel and intellectual property that we need overprecision processing machines used in the manufacture of ultra-small

across product category boundaries, which was not possible under thethe long term, we plan to invest in M&As. We will implement such invest-

lenses for smartphones and other devices. By realizing the benefits ofbusiness unit system, and level out workload peaks. In addition, we arements only after an in-house team of M&A and alliance specialists has

measures taken to date under the Management Reform Plan andimproving the efficiency of production design and production throughthoroughly verified the financial benefits of investments.

improving productivity, we aim to grow operating profit to ¥2.7 billion.

the introduction of common product designs and unitization.

will use approximately ¥15.0 billion to fund shareholder returns andManagement Reform Plan, which covers the period from fiscal 2019 to
fiscal 2023 and is strongly focused on profits.

With the maintenance of stable dividends as our basic policy, we

Enhancement of Capital Efficiency

Our total asset turnover and financial leverage have not been signif-target a dividend payout ratio of around 40% during the period of theManagement Reform Plan. In fiscal 2020, we paid a dividend of ¥199.3
per share, including a special dividend of ¥124.3 per share. In fiscal

My Mission as the CFO
In August 2020, I was appointed to the newly established position of

icantly different from those of industry peers. The reason for our low

In recent years, we kept a large amount of funds on hand in prepara-

ROE has been a narrow after tax net profit margin of 3.5%, lagging

tion for our departure from the Toshiba Group. Due to the susceptibility

behind the industry average of 7.9%. To allow us to analyze this profitof our business to economic fluctuations, we will maintain the equity

margin in greater detail and focus on productivity as well as selling,ratio at its present level so that we can not only continue steadily

general and administrative expenses as a percentage of net sales, weinvesting for the future without being affected by economic trends but

set net sales per employee as a key performance indicator. Then, we

also provide stable dividends to our shareholders over the long term.

implemented a voluntary retirement program in September 2020. How-

Accordingly, we will focus on profit growth to achieve the Management

In fiscal 2020, due to the global economic slowdown triggered by the

post-merger integration. The mission I have set myself is to utilize theever, our objective in taking this measure was not just to reduce fixed

Reform Plan’s ROE target of 8.5%. We will improve profitability by

COVID-19 pandemic, net sales decreased approximately 20.0%. Of thisexperience in all aspects of corporate management that my former posi-

costs. If we continue conventional manufacturing, fixed costs will

investing in growth areas where we can take advantage of ourdecrease, we estimate that the pandemic had a negative impact on net

tion has given me and accomplish the Management Reform Plan in myincrease again as orders recover, and the lowering of our break-evenstrengths while enhancing productivity through the various measures I

sales of approximately ¥10.0 billion. As a result of deterioration incapacities as both CFO and general manager of the Corporate Planningpoint will only be temporary. Our real objective is to achieve better

mentioned earlier and making effective use of assets. A good example

capacity utilization, operating profit declined significantly. Unfortunately,

Division. Further, I intend to increase dialogue by enhancing the quality

manufacturing with fewer personnel through the use of sales depart-of effective asset utilization is the commercialization of part of thewe were unable to reach our initial target for operating profit. Nonethe-of our communication with shareholders and investors in Japan andments and their points of contact with customers as the starting

Sagami Plant’s distribution center, which resulted from our reorganiza-

less, thanks to reductions in fixed costs, variable costs, and activity

overseas. In conjunction with these efforts, I want to increase the scope

points of production plan refinements that seek sound production fun-tion of manufacturing bases.

expenses, we were able to realize operating profit rather than the oper-of disclosure beyond just financial information, including disclosure of

ating loss forecast at the beginning of the fiscal year under review.

environmental, social, and governance information.

2021, we plan to pay a dividend of ¥75.0 per share, equivalent to a dividend payout ratio of 181.1%.

CFO as SHIBAURA MACHINE’s first externally recruited director andexecutive operating officer, and I intend to fulfill my duties while always
maintaining an objective viewpoint. Previously, I worked as an M&A advisor for 27 years. In this capacity, I sought to increase the corporate value

Fiscal 2020 Review and Fiscal 2021 Outlook

of companies and was involved in everything from the formulation ofmanagement strategies through to M&A planning, implementation, anddamentals by eliminating waste from procurement through to manu-

During the period of the Management Reform Plan, we expect tofacturing. The resulting improved production efficiency will reduce

generate ¥21.5 billion in operating cash flows. With a view to achieving

As for fiscal 2021, the adoption of new revenue recognition stan-

In closing, I would like to ask our shareholders and investors as well as

inventory, which in turn will enhance cash flows and asset turnover.

ROE of 8.5%, we will allocate cash inflows from the disposal of shares

dards will postpone the recognition of sales for certain products until

all of our other stakeholders for their continued support and understanding.

24

Integrated Report 2021

Integrated Report 2021

25

New SHIBAURA MACHINE Long-Term Vision 2030

New SHIBAURA MACHINE
Long-Term Vision 2030

 Developing New Businesses That Combine Products and Services and Thereby Increase
Profitability and Earnings Opportunities
We will increase profitability and earnings opportunities by not just selling products that meet customer needs but creating businesses thatOn March 5, 2020, we announced New SHIBAURA MACHINE Long-Term Vision 2030. We formulated

combine products and services to solve customer issues, such as increasing the efficiency of production plans and assets and enhancing
environmental friendliness.

this long-term vision to ensure sustained growth beyond fiscal 2023, the final fiscal year of theOverall Policy

Management Reform Plan.
Selling of products

Long-Term Vision 2030: Our Ideal Role and Four Overriding Strategies

Company-Specific Policies
Commodity machines

Selling of products and services

 Adding of value through a digital transformation of selected models
 Active investments in growth markets and high-value-added domains

Company that responds to challenges such as customer production
planning, improvement of asset efficiency, and environmental responses

Setting out our ideal role, Long-Term Vision 2030 calls on us toUnder Long-Term Vision 2030, we aim to transform into a highly

address social issues and enhance corporate value through out-

profitable company that continuously secures ROE above 10.0%. To

standing technological innovations that help the global manufactur-

achieve this target, we will move forward based on four overriding

ing industry adapt to megatrends. In line with this vision, we believe

strategies: evolving our business portfolio, developing new busi-

that our social mission—and the way to sustainably enhance corpo-

nesses that combine products and services and thereby increase

rate value—is to assist key industries in overcoming the challenges

profitability and earnings opportunities, growing overseas sales,of a new era.

and fostering personnel to support our technological platforms.

High-value-added machines

Customers’ production stages
Prototype / initial production
SHIBAURA
MACHINE(Present)

Full-scale production

Increased production

Individual sales of industrial machinery

Business selling products

Aging of equipment

Industrial machinery maintenance / service

Sales of restored machines (used purchases / resales)

New SHIBAURA MACHINE Long-term Vision 2030 (Outline)

Management Reform Plan toward the
new SHIBAURA MACHINEFY2019Addition of“service”
business

Long-Term Vision 2030 (Our Ideal Role)

global manufacturing industry adapt to megatrends
Megatrends

 Participate in and expand profit opportunities from start to finish of production stages

We will clarify priority fields and fields in which we reduce business or withdraw from and actively invest in growth markets and high-value-added fields.

Current

FutureMachine Tools
Company

Added value of combining products
and services(Monetization of processes and knowledge)(Breaking away from in-company management,enhancing M&A)

Metal & Plastics
Industrial MachineCompany

Business portfolio strategy (clarification of focus areas and reduction / withdrawal fields)
Improve profitability and expand profit opportunities through new businesses combining products and services
Expand overseas sales
Human resource strategy that supports technological platforms

Focus on specific domains by model selection
EnergyAircraft

OpticsDevices

Injection molding
machines and die
casting machines

New BusinessCompany

Expand local production
for local consumption
overseas

Automobiles

Extrusion machines
EnergyControl Systems
Company

New

Resource-saving

 Business expansion
through investment
Devices

New materials

Specialize in external sales and strengthen
system engineering
Automation

Labor saving

Establish technology for adding new functions
via surface structure control
Automation

Devices• Multifunction machines• Ceramic cutting machines• System engineering• Dissimilar material joining
machines• High-pressure continuouspresses (all-solid-statebatteries, etc.)• Reactive extrusion
machines (biomass, etc.)• Collaborative robots• AGV

Expand / enhance

Reduce / withdraw• Large machines• Special, dedicatedmachines• Ultra-precision
processing
machines•S mall and generalpurpose machines• Injection molding
machines• Die castingmachines•D omestic production ofstandard hydraulic machines• Extrusion
machines• Robots• Servo motors,
controllers

Digital transformation

Technologicalinnovation

Individual sales of industrial machinery

High-value-added / market expansion areas

Basic policy

Four Directions of Long-Term Vision 2030

Integrated Report 2021

Small-lot production

Evolving Our Business Portfolio (Strategies for Respective In-House Companies)

New SHIBAURA MACHINE

Climate change and resource scarcity

26

Production increase

FY2030Address social issues and enhance corporate value through outstanding technological innovations that help theAdvancements in technology

Prototyping

 Provide services in all of our customers’ production stages

FY2023

Rapid urbanization changes in
population structures

Sharing (our sharing factory and equipment)•C onical-type extruders•N C, controllers(utilizing of externalalliances)• Film casting equipment: Electronic circuit market(next-generation communications)• Coaters: High-performance films, devices market(all-solid-state batteries, ceramic capacitors, optical­components, etc.)• Imprint equipment: Water purification and sterilization
market (Deep-UV LEDs)

Integrated Report 2021

27

New SHIBAURA MACHINE Long-Term Vision 2030

Evolving Our Business Portfolio (Expanding Existing Businesses)

Growing Overseas Sales

We will continue to expand and strengthen existing businesses to provide added value through a wide range of products and help address

Overseas sales of machine tools account for around 30% of our machine tool sales, a small share when compared with an average of aroundsocial issues. Amid the global trend toward decarbonization, we have a variety of products that can contribute to decarbonization initiatives.

60% among industry peers. We will heighten overseas machine tool sales as a percentage of machine tool sales by reducing general-purpose
machines and focusing on fields where we can realize a competitive advantage, such as large machines and high-precision machines.

Contribute to reducing greenhouse gases
Power generation and storage

New materials

Resource-saving

High-pressure continuous press machines

Reactive extruders

Injection molding machines and Die casting machines

Enhanced productivity throughcontinuous processes

Creation of new materials via continuous
reaction of naturally occurring raw materials

Realization of lightweight andhigh-strength parts

Milton Keynes
Milan
ChicagoShanghai

China Plant (Shanghai)
Shenzhen

SE: solid electrolytes

LFORMER

Rechargeable batteries

Biomass

All-solid-state batteries

Wood plastics

Chennai

TaipeiI ndia Plant(Chennai)

Hanoi
BangkokSão Paulo

Thai Plant

Weight saving and recycling
Aluminum car
frames

MexicoSingapore

CFRP parts

Jakarta
Total of 46 overseas locations: 13 local sales subsidiaries /: 3 local manufacturing subsidiaries(As of March 31, 2021)

Source: FY2018 NEDO Advanced Battery and Hydrogen
Technology Department Results Report Meeting(B1-03) LIBTEC Materials

Evolving Our Business Portfolio (Creating New Businesses)

Fostering Personnel to Support Our Technological Platforms

Through the provision of film casting equipment, coating machines, and imprint equipment that add new functionality through surface struc-

The R&D Center and the Production Center, which were newly established in April 2020, will consolidate basic technologies that are laterally

ture control, we will enable our customers to generate profits. We will differentiate ourselves by realizing new added value.

distributed among in-house companies as well as train and assign specialists to support SHIBAURA MACHINE’s technological platforms.
Further, we will utilize external resources by forming industry–academia collaborations and other external alliances and by hiring people
who have advanced professional skills.

Realizing the adding of new functions via surface structure control
Electronic circuits

High-performance films / Electronic devices

Healthcare

Film casting equipment

Coating machines

Imprint equipment

Function improvement via adding dissimilarmaterials to surfaces

Function improvement via coating dissimilarmaterials to surfaces

Function improvement via adding fine
shapes to surfaces

R&D Center

Integrate basic technologies
in a cross-company way

Machine Tools Company

Next-generation communications

LiB / all-solid-state batteries / ceramic capacitors

Water purification / sterilization

Laminated wiring boards

High-performance separator films

Deep-UV LEDs

Metal & Plastics Industrial
Machine Company

Production Center

Train and assign
specialists

Control Systems Company

New Business Company

Separator
Anode material

Source: Website of Shin-Asahi Electric Ind. Co., Ltd.

28

Integrated Report 2021

Cathode material

Source: JST New Technology Presentation Meetingsmaterials

Industry–academia collaborations(external alliances)

Highly professional recruitment

Integrated Report 2021

29

Medium-Term Management Plan “Management Reform Plan”

Management Reform Plan

Goal of the Management Reform Plan and Results for Fiscal 2020

The SHIBAURA MACHINE Group’s business environment is becoming increasingly uncertain due to the COVID-19 pandemic,

In fiscal 2020, due to the COVID-19 pandemic net sales and operating income fell far short of the Management Reform Plan’s numerical

trade friction between the United States and China, and ongoing geopolitical risks. To adapt to this business environment and­targets. In fiscal 2021, we will achieve the plan’s numerical targets by improving the profit margin through efforts to reap the benefits oftransform into a new corporate group that prevails in the coming era, we will continue implementing the Management Reform
Plan, a medium-term management plan announced on February 4, 2020.

the current recovery in market conditions and the plan’s measures.

Management Reform Plan’s
Numerical Targets

Framework of Management Reform Plan

Net Sales and Operating Profit in Fiscal 2020
Operating profit ratio: 8.0%
ROE: 8.5%

Aiming to transform into a highly profitable company and achieve net sales of ¥135.0 billion, an operating margin of 8.0%, and ROE of 8.5% in
fiscal 2023 and a dividend payout ratio of approximately 40.0% during the term of the medium-term management plan, the Group will conduct management reforms centered on reorganization, invest in growth areas, and implement financial strategies designed to improve capital efficiency (ROE).

(Billions of yen)

150

116.7

Target value for
FY2023
Consolidated basis

Net sales

Operating profit ratio¥135 billion

8.0%

Payout ratio
Prospect of 40%

8.5%

Management reform centered on reorganization(ii)	Establish an R&D Center and Production Center for integrated Companywide enhancement of production efficiency, quality,
cost, and delivery(iii) Reassign personnel and launch a voluntary retirement program to optimize resource allocation and reduce fixed costs

0(2.9)*

0.9–50

FY2019(Results)

FY2020

100

8

75

2.7

4

50

0

25

右 営業利益–0.6 (–67%)(Billions of yen)

0.9

92.6

1.0

0.3

51.2

50.3

0.5

1.0
0.6

0

46.3

42.3

Management
Reform Plan

Results

(0.1)
(0.3)

Net sales (left axis): Promotion of growth investments aimed for expansion of purposes to fields expected to grow in the future(iv) Promote growth investments aimed at expanding applications in fields expected to grow in the future

90.7

62.6

97.5
12

33.6
6.0

77.2

(i)	Transition from a business unit system, stemming from which numerous inefficiencies arose, to an in-house company
system and thereby realize overall optimization

Specificmeasures

3.5

50

106.0

5.5
29.4

29.6

ROE

(during the period of the Management
Reform Plan)

97.5

135.0
10.8
120.0 10.7

Operating profit

売上高–4.9 (–5%)(Billions of yen)

12.7
100

Quantitative
targets

Net sales

左FY2021

FY2022

FY20230

Net sales of molding machines
Net sales of machine tools
Net sales of others
Consolidation
Operating profit (right axis)

Net sales:First half

Second half

–0.4 Management

Reform Plan

Operating profit:

First half

Results

Second half

* Intersegment eliminations* QCD: Quality•Cost•Delivery

Investment plan /Financialstrategies

Initiatives for Fiscal 2021

Implementation of financial strategies aimed at improving of return on equity (ROE)(v) Allocate cash on hand to investments toward transforming into a highly profitable company and enhance profitability andcapital efficiency

We will transform into a highly profitable company by continuing to reduce procurement costs while advancing the fiscal 2021 priority measures, which will focus on (1) productivity improvement, (2) the effect of increase in revenue, and (3) others.

Progress of the Management Reform Plan and Policy for Fiscal 2021

Implementation of Measures and Expected Effects of the Management Reform Plan (Operating Profit Impact)

Regarding business performance in fiscal 2020, due to the COVID-19 pandemic, net sales decreased to ¥92.6 billion, which we estimate repre-

Increase in capital­expenditures andin R&D andhuman resource
investment

sents approximately ¥10.0 billion in lost net sales. If we had not implemented the Management Reform Plan, we would have recorded an operating loss of ¥1.2 billion. However, the plan’s measures enabled us to secure operating profit of ¥0.3 billion, an improvement of ¥1.5 billion.

How we achieved
operating profit(Unit: billions of yen)*O
 f the ¥1.9 billion effect for the year, ¥1.3 billion
realized in fiscal 2020

Net sales: 92.6
VariablecostsManagement
Reform Plan
Net sales: 92.6

¥1.3 billion  

Variablecosts

Voluntary retirement effect
Fixed
costs

Approx. 250 applicantsOperating loss 1.2

30

Integrated Report 2021

FY2020 Measures(Billions of yen)

Effects of the Management Reform Plan (Fiscal 2020)

Fixed
costs

+7.0

FY2021 Ongoing measures

Fixed cost
reduction

Variable
cost
reduction

Reorganizationof under­performing
businesses

FY2021 Priority measures

Investment
in sales
growth

Productivity­improvement, effectof higher revenue

0.3

10.8
(8.0%)

4.0
Operatingprofit¥0.2 billion  

0.3

Procurement cost
reduction* effect*P rocurement cost reductions to be continued infiscal 2021 and beyond

0.2

3.8
Operating profit ratio
3.2%
0.9

Operating profit Increase in
for FY2018
depreciation
expensesrelated toROEcapital
4.9%
investment

0.4

Increase incosts related
to R&D
relations /personnel
investment

0.3

0.3

Increase inoutsourcing
costs / labor
costs

Reductionin costs

1.4

1.5

2.0

1.9

Reduction inpersonnel
throughvoluntary
retirement

Effect of
Decrease in
Effect of
Increase inproductivity
procurement
corporate
promotional
improvement
costs
restructuring /expenses(material
integration(agency
cost ratio)of basescommissions,etc.)

Effect ofincreasein revenue

OthersOperating profit
for FY2023

ROE
8.5%

Integrated Report 2021

31Medium-Term Management Plan “Management Reform Plan”

Reorganization and Relocation of Offices in Japan (Policy)

1

Productivity improvement

We will reorganize plants as part of our shift from a business unit system to an in-house company system. Specifically, we will concentrate

 Increasing Revenues by Meeting Demand for Extrusion Machines and Establishinga New Business (Utilizing Existing Plant Site)

molding machines, casting, and processing at the Numazu Plant; machine tools at the Gotemba Plant; and control machines and the R&D

We will grow revenues by ramping up production capacity for LiB separator film production lines, for which inquiries and orders are currently

Center at the Sagami Plant. These reorganized plants will improve productivity.

brisk. We will also increase revenues through the establishment of a new business by utilizing the south part of the Sagami Plant site to com-

Reorganization of Plants Necessary to Shift from a Business Unit System to an In-House Company System
Machine Tools Plant

Control Systems Plant

Gotemba Plant

Sagami Plant

mercialize a logistics facility.

Meeting Demand for Extrusion Machines

New Business (Utilization of Plant Site)
2

BSF* inquiries and orders

Consolidate machineengineering vision with­similar mechanisms

Aiming for upgrading robot /IoT technologies through collaboration with R&D Center

Aiming for technologicalsynergy and design
efficiency

Machine tools

Die casting machine(Sagami Numazu) rom 2021 onward, high level of inquiries and orders likely to continueFamid worldwide introduction of electric vehicles

2

The effect of increase in revenue

Meeting demand for BSF
Increasing annual production capacity to 48 production lines

Injection molding machines
Die casting machines
Extrusion machines rom the second half of fiscal 2021, utilizing a local engineeringF­company in China to increase local installation and adjustment

Control engineering division(Numazu / Mishima Sagami)

 ill use part of the Sagami
W
Plant site adjacent to
National Route 246 toestablish a logistics facility(scheduled to start up in
autumn 2023)
 usiness alliance withB
Mitsui Fudosan Co., Ltd.

Electronic control unit
for industrial robots

High-precision
machines

High-precision machineengineering division(Numazu Gotemba)In the second half of fiscal 2020, received orders worth approximately¥12.0 billion from China

The effect of increase in revenue

 reas of the site notArequired for the new logisA rendering of the completed MFLP
tics center to be used as an
Zama (provisional name)R&D center and as a basefor control systems, willleverage geographic advantages in terms of the ease of recruiting personnel from theTokyo metropolitan area and create an operating base that uses leading-edge
technologies* LiB separator film production lines*S ubsidiary Toei Electric (Mishima) is also scheduled to be transferred.

Casting and processing
Consolidate machine engineering
vision with similar mechanisms
Aiming for technologicalsynergy and improvement indesign efficiency

Management Reform Plan: Operational Reform

Numazu Plant
Metal & Plastics Industrial
Machines and Mother Factory

Progress of Production Facility Reorganization

agement, establish a new human resource system, reform production, and revamp sales.

1

Productivity improvement

and SCARA robots to overseas plants, by reducing outsourcing costs in Japan, and by mass-producing a limited variety of products at overseas plants. In addition, we will build a new plant on a site adjacent to our plant in India to expand the scale of operations and increase pro-

FY2020 initiatives

Built management accounting system

Business management­visualization

duction volume.

Metal Plastics
Industrial Machine

Machine Tools

Human resource system

Policy entralizing small and medium-sized electric injection molding machines in China
Cand Thailand
Centralizing hydraulic injection molding machines in India
Centralizing small die casting machines in China and Thailand
Plants in Japan specialize in large injection molding machines, large die castingmachine, and extrusion machines

Effective targets
in Fiscal 2023

 eviewing general-purpose machinery production structureRSpecializing in large and special-purpose machines and high-precision machines+¥2 billion

 ransferring SCARA robot production to China
TExpanding system engineering businessCommonEstablishing a new machine processing plant (smart factory) in Numazu

Integrated Report 2021

 tarted automated aggregation
S(from April 2021)
Established multifaceted analytic capabilities

FY2021 initiatives

 eassign accounting personnel appropriatelyR
as aggregation automatedUse multifaceted analytics to identify management losses swiftly and take rapid
countermeasures

Built new human resource system

Control Systems

32

Others

We will improve operational efficiency, productivity, and profits through operational reform and system building that visualize business man-

The SHIBAURA MACHINE Group is lowering costs by completely transferring the production of small and medium-sized molding machines

Company

3Incorporated certain elements of a positionbased human resource system
Began a system for managers(from April 2021)
Reanalyzed productivity of processing plants

Production reform ompleted analysis of overall production
C
issuesIdentified current situation and issues

Sales reform ompleted identification of issues
CStarted rebuilding sales processes repare for the start of a system for unionP
members

 nalyze measures for improving productivityAEstablish seamless information linkage
between sales and plants
 xpedite the transmission of sales information
Efrom sales to plants and improve the accuracyof information
Conduct education to change the mindset ofsales managers

Integrated Report 2021

33

Performance Highlights

Financial and Non-Financial Highlights
Consolidated Financial Highlights

Non-Financial Highlights

Amount of Orders Received / Net Sales

Overseas Sales / Overseas Sales Ratio(Billions of yen)(Billions of yen)

(%)

100

100

150

134.5
117.4

68.1

88.6 92.6

61.3

58.0

50

(%)

4,000

40

16

30

12

20

8

3,346

3,000

51.7
55.9

52.6

Ratio of Woman in Management Positions /Ratio of Female Employees (Consolidated)(Persons)

116.7
94.2

100

Employees / Non-Japanese Employees (Consolidated)

50

3,360

3,081
27.7

27.0

27.0

(%)

2,000

50
1,000

2018

0

Amount of orders received

2019

2020

(FY)

0

Net sales

3.5
3.3

3

(FY)

2020

0

Overseas sales ratio (right axis)(Billions of yen)

1

0.4
2018

Operating profit (left axis)

2019

2020

(%)

82.1

0

50

1.0

0

0

25

0.5

–30

2018

Total assets (left axis)

(%)

199.3
200

100

150

75

2019

45.0

0

2018

Dividend per share (left axis)

34

Integrated Report 2021

2019

2020

(FYE)

Ratio of female employees

66.0

67.2

1.5

56.2

1.16

0.35

0

–4.0

2018

2019

2020

(FY)

0

2018

2019

2020

(FY)

CO2 Emissions Reduction Due to Environmentally Conscious Products* /Number of Registered Environmentally Conscious Products

CO2 Emissions / Unit Requirement(Billions of yen)

(t)

(t)(t-CO2/billion yen)

3

50

(Cumulative number of models)
28,0001.8

2.2
21,0001.7

23,629

1.7

1.1

556

24,710595

23,346800

28,000600

21,00025,6454.0

24,655
21,118

645

3.0

2.28

14,000400

14,000

7,000

200

7,000

0

0

2.20

2.09

2.0

1

28.0

50

2019

Amount of Capital Investment / Research andDevelopment Costs

2

85.0

2018

Return on equity (right axis)

2.3

44.4

4.8

0.00
(FY)

2020

4.2

2.0

(3.4)
(FY)

3.9

(%)

4.0

1

12.9

Lost Time Injury Frequency Rate (Non-Consolidated)

30

2

12.9

Ratio of Woman in Management Positions

75

60

Dividend per Share / Dividend Payout Ratio

100

0

8.0

3

Operating Income to net sales (right axis)(Yen)

0

100

90

0.3
0

(FYE)

904
906(right axis)
Non-Japaneseemployees

5.0
2

2020

12.0

4

8.6

3.0

2019

4

Acquisition Rate of Paid Leave (Non-Consolidated)

87.0

83.1

2018

0

Employees (left axis)

Net Worth / Return on Equity
(%)

3.8

4

2019

Overseas sales (left axis)

Operating Profit / Operating Income to Net Sales(Billions of yen)

2018

10

12.9

25

2020

Dividend payout ratio (right axis)

(FY)

0

0

2018

Amount of capital investment

2019

2020

Research and development costs

(FY)

0

2018

2019

2020

(FY)

CO2 emissions reduction due to environmentally conscious products (left axis)
Number of registered environmentally conscious products (right axis)*R eduction in CO2 emissions resulting from the replacement of existing models with­environmentally conscious products that have superior energy-saving performance

1.0

2018

CO2 emissions (left axis)

2019

2020

(FY)

0

Unit requirement (right axis)

Integrated Report 2021

35

Special Feature

CORE TECHNOLOGIESOur Strengths—Continuing to Support Key Industries

RESEARCH AND
DEVELOPMENT

Eight Technological Platforms

TECHNOLOGIESCORESHIBAURA MACHINE Technologies
That Contribute to Key Industries

Established in April 2020, the R&D Center is a new base for the creation of SHIBAURA MACHINE’s state-of-the-art technologies and businesses. Without being limited to existing business fields, the center is conducting research and developing
new technologies based on a long-term view of both society and SHIBAURA MACHINE. Through this farsighted approach,the center will create new businesses and industries and contribute to the sustainable development of society for the next
10 years, 20 years, and beyond.

Developing and Manufacturing an Array of Advanced Industrial Equipment
Since our establishment in 1938, we have brought to market a myriad of industrial machinery, including machine tools,­textile machines, printing presses, mold making machines, extrusion machines, injection molding machines, die castingmachines, electronic controls, high-precision machines, and industrial robots, to name but a few. By accumulating anddeveloping the technologies associated with such machines, we have built eight technological platforms. Based on thesetechnological platforms, we develop and manufacture many types of advanced industrial equipment and provide optimal
solutions cultivated over many years.

18

Realizing one-stepadvanced accuracy

Using heat, light, andvacuumProfessional manufacturing, assembly,
and measuring
technologies

Nano-processing
technology

Helping Address Social Issues
through Our Business Activities

Responding to Megatrends throughTechnology Development

While developing new technologies based on our eighttechnological platforms, we create industrial solutions
to social issues. We are proud to say that, in responseto the increase in carbon neutrality initiatives, we aremaking and will continue to make a broad contribution
to the realization of a sustainable society.

The R&D Center researches and develops new technologies by taking as starting points megatrends that the
manufacturing industry is facing—such as climatechange, resource shortages, demographic changes,
and technological advances—and then calculating
backwards from the technologies that will be neededin the future. We create technologies with the functions
and performance that will be required by bringing
together element technologies from across our inhouse companies and making full use of knowledge,
experience, and information. By honing the development of existing technologies, such as IoT and 3D
Metal Additive Manufacturing Equipment, while accelerating the development of new core technologies, wewill help overcome issues in various industries that
support society, including those engaged in the production of automobiles, rechargeable batteries, medicine, renewable energy, next-generation
communications, food, and infrastructure.

2
Supporting diversified application fields

Designing technologies for processing
and molding
machinery

73
Limitless Technology

Based on understandingof target material

Integrative

Customizing
technology

Molding technology
originated frommold

6
Supporting high precision

Slide and rotation

5
Optimized for eachmachine group

Control, mechatronics, and IoTtechnology

36

Our R&D Center—Revealing the Possibilities for New
Technologies and Businesses

Integrated Report 2021

4
Maximizing machine
performance

Material technology

Megatrends (Challenges facing manufacturing industry)

Climate change andresource scarcity

Realizing GHG-reduced products, technologies, and materials

1

2

3

4

5

6

7

8

Realizing resource-saving / energy-saving technologies

1

2

3

4

5

6

7

8

Improving efficiency of and spreading energy creation

1

2

3

4

5

6

7

8

Improving performance of and spreading energy storage devices

1

2

3

4

5

6

7

8

Realizing robots that can symbiotically coexist with humans

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

Upgrading and spreading sterilization technologies

1

2

3

4

5

6

7

8

Realizing new materials that provide novel functions

1

2

3

4

5

6

7

8

Spreading next-generation communications (5G / 6G)

1

2

3

4

5

6

7

8

Upgrading and evolving weight-saving technologies

1

2

3

4

5

6

7

8

Upgrading and spreading intelligent devices

1

2

3

4

5

6

7

8

Rapid urbanization Realizing autonomous production lines
and changes in­population structures Upgrading and spreading water purification technologies

Advancements
in technology

SHIBAURA MACHINE’s technological platforms
for ­responding to challenges

Integrated Report 2021

37

Special Feature

Our Strengths—Continuing to Support Key Industries

TRANSFORMATIONDIGITAL

SMART FACTORYINNOVATION

TRANSFORMATION

Transforming Ourselves So That We Can
Continue Contributing to Key Industries

38“SHIBAURA DX” VisionMarketing

Creating the Future through “SHIBAURA DX”
By merging the real and the digital, “SHIBAURA DX” (digital transformation) will allow us to create high-value-added products that address all manner of social issues and to realize an organization that responds flexibly to change.
In virtual spaces, we will recreate our craftsmanship through digital transformation that facilitates the building of databases for the aggregation of diverse data from our operations and the leveraging of analytics technologies, simulation
technologies, AI, and the IoT. Utilizing the capabilities established by “SHIBAURA DX,” we will work closely with customers
at all stages of their production and offer customers integrated packages comprising new services and products.
Given the responsibility the manufacturing industry has to create and develop technologies as well as the possibility oflabor shortages becoming a major issue in the industry, passing on skills from person to person could become an urgent
task. We believe that the “SHIBAURA DX” initiative is one way to solve the issue of passing on skills. Therefore, in contributing to the sustained advancement of the manufacturing industry, our first priority is to realize groundbreaking technologies and business innovation through “SHIBAURA DX.”

Product and technology development

Production design

Key Points
Create processes in virtual spaces until just before the manufacture of actual machinesE stablish data-based connections to all business processes and reflect real-world data in manufacturing processes
Enable the wide application of accumulated data by sharing it among different businesses and products

Real

VirtualSales and services

Production

Product previewing

Product verification (manufacturing and maintenance)

Virtual creation that is
99.7% complete

Finishing verification
before prototyping

Realizing spaces that integrate the real and virtual

Innovating Manufacturing to Grow Corporate Value
Although focusing on the manufacture of individual products that cater to the particular needs of each customer is a differentiating factor, this approach has given rise to a variety of inefficiencies. The “SHIBAURA DX” initiative will create newvalue by realizing spaces that integrate the real and the virtual at operational stages ranging from design, product development, and verification through to production, services, and marketing. At the same time, the initiative will help create new
ways of working and as well as lifestyles that are built around the needs of individuals.
Our digital transformation of manufacturing will allow us to utilize information infrastructure to digitally connect all processes and develop them to a 99.7% degree of completion in virtual spaces. In this type of digital transformation, development, manufacturing, sales, and maintenance can be recreated in virtual spaces, enabling not only development but also
the verification of prototypes and installation. These capabilities will allow us to create a virtual lab that merges the real
and the virtual and thereby steps up the pace of development. At the same time, we will heighten profitability by eliminating the issues inherent in our business model, raising productivity, making high-value-added products, and increasing customer satisfaction in relation to all of our business processes.

Product design

Pros and Cons of SHIBAURA MACHINE’s business model

Pros: Manufacturing only SHIBAURA MACHINE
can achieve

Cons: A variety of inherent management lossesLong manufacturing cycles and frequent retrograde adjustments

Contribution to the resolution of each customer’s unique issues

to processes

through the provision of customized special-purpose productsHuge number of development and design man-hours as a result of

Realization of high levels of precision and durability that increase

single-product production

the return on investment for customers

Multiple business models with different manufacturing cycles andContribution to the heightening of customers’ competitivenessasset utilization methods

throughout entire life cycles

Evolving Manufacturing through Smart Factories
SHIBAURA MACHINE will digitally transform its operating sites to heighten production efficiency for single item indent
products. We will link and evolve all processes by coordinating management systems with unified digital data that isderived from information on production activities. This will include information on personnel as well as data acquired
from the use of the IoT for sensing, visualization of operations, predictive maintenance that reduces machine failures, andimprovement of material handling efficiency. Moreover, through AI-enabled analysis of the aforementioned unified digital
data, we will drastically improve productivity in terms of rapidity, cost, and flexibility, enhance quality, and eliminate labor
shortages. SHIBAURA MACHINE will digitally transform manufacturing by feeding back to virtual spaces a range of digital
data accumulated from production sites, analyzing it, and realizing digital twins that show how to optimize real-world­production conditions.

Integrated Report 2021

“SHIBAURA DX” Benefits

Eliminating inefficiencies inherent in the business model and increasing profitabilityImproving the efficiency of development processes (shortening
lead times, etc.)

Realizing higher quality

Reducing retrograde adjustments in manufacturing processes

Creating high-value-added products

Generating synergies among businesses through data sharing

 roviding maintenance services that are more precise andPtimelier

Integrated Report 2021

39

Special Feature

DIFFERENTIATIONOur Strengths—Continuing to Support Key Industries

スマートフォンへの取り組み

SHIBAURA MACHINE Products—
Supporting Key Industries

Approach to smart phone industry

Smartphone Industry

Camera module lensMold for plastic housing

By capitalizing on its eight technological platforms, SHIBAURA MACHINE delivers differentiated value thatmeets customers’ demanding standards in an extensive range of industries.

C apacitor film /Oriented ­polypropylene film

2

For details, please visit the product information section of our website.

9https://www.shibaura-machine.co.jp/en/product/P lastic film for LCD panel

3

Retardation film, Polarizing film

1

Automotive Industry

 roduction line of AutomaticPscrew tightening system

481Engine
2

3

11
4

2

10

4

4

Mold for LCD light guide plate

5

12 13

5

14 15

4

6

3

3
2

6

15 11

1

2

LED light source

2

13 14

1

4

1

5

10

6

11 12
1

9

1

7

3

8

Mold for magnesium housing

71

Roll mold for optical sheet andoptical film

25

エネルギー関連への取り組み

3
6

Approach to energy industry

2
7

Body
Cowl louver
2 Sunroof
3 Door glass
4 Rear fender5 Rocker molding
6 Over fender
7 Bumper
8 Door trim
9 Pillar
10 Rear garnish
1Engine head cover
2 Intake manifold

Oil pan
10 Engine block
11 Battery case19

Oil separator
2 Head cover
3 Valve body
4 Water pump bracket
5 Oil pump bracket
6 Front case
7 Rack housing
8 Transmission case1

 eparator film for batteryS
2 Fuel cell material for­electric vehicle
1

Turbo impeller
2 Crank shaft
3 Clutch housing
4 Engine block mold1

11 11 Lamp cover
12 12 Led diffusion lens
13 13 Headlight lens
14 14 Headlight reflector
15 15 Clearance lamp

Side mirror housing
2 Brake caliper
3 Headlight case
4 Steering body
5 Seat frame
6 Wheel
7 Sub frame1

芝浦機械は、エネルギー関連と深い関わりを持っております。Shibaura Machine is deeply involved in energy industry.

Energy Industries1 amp coverL
2 Tire3 Interior decoration material­elastomer sheet
4 Forming sheet
Door trim
2 Frame3 Bumper
4 Wheel5 Constant velocity universal joint
6 Copper plate● ローター Rotor

Food-Related Industries

Separator film for Lithium-ion secondary batteryS eparator film for lithium-ion
secondary batteries● 太陽電池バックシート＆封止材

Backsheet and sealing material for Solar cells
円筒型
Cylinder type

正極

Anode

光

 acksheet and sealing materialB
for solar cells

1

太陽光フレネルレンズ● LiB用セパレータフィルム

ガラス

Light

光

Light

セパレータ
Separator

光

Light

負極材

Square shape

正極

Anode

セパレータ

Fresnel lenses

Sealing material

Cell (Silicon)

Cathodematerial

正極材

Anode material

画像提供 東芝産業機器システム
（株）殿

AI合金箔

A.I. alloy foil

Cu合金箔

数百倍に集光太陽電池セル

正極材

Condensed Light
to Several Hundred
Times

Solar cell

Anode material

Cu alloy foil

Photo provided by: TOSHIBA INDUSTRIAL PRODUCTS and SYSTEMS CORPORATION● プロペラハブ加工 For rotor blade, rotor hub● ピッチ・ヨー旋回輪の歯切加工● 熱交換機・ボイラーの管板穴加工

For tube plate of the heat exchanger, boiler

風力発電風車の旋回輪穴加工■ エンジンインバータ制御発電機システム
Inverter-Controlled Engine Generator System

2

1
1
1

2

2

 CD, OLED display materials
LPrinted board

1

Instrument panel

112■ コンバータ
Converter

Steering wheal

1

3

40

Integrated Report 2021

Die Casting Machines

Extrusion Machines

ＶＳジェネレータ（ＶＳＧ２８Ａ）
VS Generator

北越工業(株)殿
東芝産業機器システム(株)殿
第５５回十大新製品賞
モノづくり賞（日刊工業新聞社）
共同受賞

AC reactor

Invertor■ 発電機本体

Awarded ten best new products of the year
prize by Nikkan Kogyo Shinbun along with
Hokuetsu Industries Co., Ltd. andToshiba Industrial Products and Systems
Corporation

Main generator unit

射出成形機

ダイカストマシン

押出成形機

工作機械

超精密加工機・ガラス成形機

電子制御装置Injection Molding Machines

Die Casting Machines

Extrusion Machines

Machine Tools

Electronic Controls

SHIBAURA SEMTEK CO., LTD.

● 型締力30トン〜350トン
射出成形機

● 型締力
135トン〜500トン
ダイカストマシン● シート・フィルム
製造装置● 旋回ベアリング加工
超硬歯切り盤High Precision Machine・Glass Mold
Press Machine

● 多関節
ロボット

製造装置部品の調査

Die locking force:
30~350t Injection
Molding Machines

型締力450トン〜1300トン
射出成形機

Die locking force:
135~500t Die
Casting Machines

Die locking force:
450~1300t Injection
Molding Machines

Injection Molding Machines

Condensor■ ACリアクトル■ インバータ

Car navigation system
Head-up display

LINEUP

1

1■ コンデンサ

Controller & Control Unit

For rotation part of the wind mill
SwitchDashboard
3 Console box

画像提供 北越工業(株)殿Photo provided by: Hokuetsu Industries Co., Ltd.

■ コントローラ
制御ユニット food packaging
Plastic+ sheet
forboilerInterior

画像提供 (株)豊栄工業殿 Photo provided by: HOEI Industry Co. Ltd.

内部の当社開発ユニット（操作面）Toshiba-Machine-developed unit embedded (operation side view)

For rotation part of the wind mill

For frame of the pitch, yaw

2

Plastic parts in machine

負極材

BackseatFor gear of the pitch, yaw

1

機械内プラスチックパーツ

Separator

バックシート 封止材(EVA) セル(シリコン)● ピッチ・ヨー加工、
フレーム加工For tube plateof the heat exchanger,

2

Recycled paper production machine

Improvement of theGeneration Eﬃciency
by Fresnel Lens

フレネルレンズ

角型

Cathodematerial

Glass● 再生原料紙生産機

Fresnel Lens for Photovoltaic Power Generation● 太陽光フレネル
レンズ金型
Heat-resistant tableware made of
Mold for
集光による
plant-based
resin
FresnelLens
効率向上

Sheet･Film
Manufacturing Equipment

Bearing / Gear Hobbling Machine● 超精密マシニングセンタ
High Precision
Machining Center● 横中ぐり盤

Table -Type Horizontal Boringand Milling Machine

旋回ベアリング加工
立形ドリルセンタ● 超精密非球面·
自由曲面加工機

Bearing / Vertical drill center

Machine Tools

High-Precision Machines,
Glass Mold Press Machines

High Precision Aspheric andFree-form Surface Grinder

芝浦セムテック
Investigation of manufacturing parts

Vertical
ArticulatedRobot■ エンジンインバータ
制御発電機システム
Inverter-Controlled
Engine Generator
System

強度試験 Strength testing
破損解析 Fracture analysis
有機・無機分析

Analysis of organic and inorganic material

環境の調査 Investigation of environment
工場排水・排ガス調査

Measurement of wastewater and exhaust gas

低周波振動調査

Measurement of low-frequency noiseElectronic Controls

Integrated Report 2021

41

Management Strategy by Company

Net Sales

Overseas Sales Ratio

StrengthD ispersal of resources due to diverse product lineup

Global supply chain centered on four overseas plants

High degree of reliance on specific markets for die casting machinesDiverse lineup ranging from small to large products

Metal & Plastics Industrial
Machine Company¥64.3 billion

69%

FY2020 xchange rate fluctuation risk associated with high percentage ofEoverseas sales

No. 1 market share among Japanese manufacturers of die casting machines¥41.1
billion64%

Film manufacturing equipment for all production line stages

FY2020

Opportunity
Growing need for new environment-friendly materials

With “molding” as its key word, the Metal & Plastics Industrial Machine (M&P) Company is engaged in businesses focused on injection

Weakness

S

W

O

T

ThreatAcceleration of investment aimed at introducing electric vehicles

 rowing trend toward plastic-free products due to marine pollutionG
caused by plastic waste

Global initiatives focused on the SDGs

E
 mergence of manufacturers of low-priced products

molding machines and extrusion machines for molding plastic resins as well as die casting machines for casting aluminum and magnesium.

 ecline in applications for internal combustion engines due to the shift toDelectric vehicles

Primarily used in the automotive industry, the M&P Company’s products also contribute to a wide range of other fields, including theEmergenceof new technologies related to rechargeable batteries, including
all-solid-state batteries that can replace lithium-ion batteries

telecommunications, optics, medicine, and food.

Main Products Business Management Injection molding machines

With manufacturing bases in Japan, China, Thailand, and India, we areshared and service, and electric) era. In addition, we will offer the best solu-

Die casting machinesadvancing initiatives aimed at local production for local consumption bytions to customers’ SDG-related issues through initiatives for biodegradable

Twin-screw extruder

developing businesses and offering solutions through our bases around theplastics and new materials that reduce environmental impact.

world. We will provide the world’s No.1 casting and molding products andFilm manufacturing equipment

Injection molding machine(EC650SX III)Die casting machine(DC800R)

Extrusion machine(SFPU-30150W)

services to maximize the customer experience and value gained by purchasing our products in Japan and overseas.
The automotive industry, which is the mainstay field of the M&P Com-

Performance Summary pany, is undergoing major changes as electric vehicles are introduced withAmount of Orders Received / Net Sales

Operating Profit / Operating Profit Ratio(Billions of yen)(Billions of yen)

120
90

113.8
92.2
80.2

91.8
79.2

77.2
63.1
63.7 64.3

77.8

4.0

5.8

4.4

2017

2018

2019

2020

2021 (forecast) (FY)Net sales

0tion lines, injection molding machines, and die casting machines—will help
the automotive industry advance into the CASE (connected, autonomous,

2.9

4.9

6.0

3.7
1.1

3.0

1.8

1.0

Amount of orders received

materials, our production technologies—such as LiB separator film produc-

9.0

3.7

3.5

2.0

30

molding of lighter, stronger products that incorporate multiple colors and
(%)

4.6

3.0

60

0

5.0

a view to society’s decarbonization. Capable of catering to the need for the2017

Operating profit (left axis)

2018

2019

2020

2021 (forecast) (FY)0Operating profit ratio (right axis)

Value Creation 
Results and topics of fiscal 2020 measures

Business Overview 
Injection Molding Machines

superior characteristics that contribute to the further development of the auto-

We have four injection molding machine plants in Japan and overseas. By

motive industry, including the electric vehicle market, which is expected to grow.

utilizing abundant know-how cultivated over many years as well as the latest
technologies, we provide products and services that are useful in trailblazing

Extrusion Machinesindustrial fields, such as automotive manufacturing, medicine, information and

The M&P Company is a pioneer in the area of twin screw kneading extruders.

communications, and semiconductor manufacturing. Going forward, we will

We manufacture equipment for all extrusion processes from upstream

utilize IoT technologies and digital technologies to provide high-value-added

through to downstream. For plastic products, we offer twin screw kneading

services. In conjunction with these efforts, we will provide proactive support

extruders, sheet manufacturing equipment, film manufacturing equipment,

through our value chain, thereby realizing optimal solutions for our customers.

coaters, and roll-to-roll equipment. In recent years, we have been moving
forward with the development of leading-edge technologies in relation to

Die Casting Machines

LiB separator film production lines, an area that is seeing rapid growth in

Based on a track record that has given us the No. 1 market share among Japa-

demand. We have also been developing advanced technologies for film

nese manufacturers of die casting machines, we actively provide advanced

manufacturing equipment for the optical, food packaging, 5G, and medical

technologies that meet the needs of the times, mainly in the automotive andindustries; coating; and imprinting. By enabling the manufacture of high-telecommunications industries. We will exploit the lightness, high rigidity, recy-

performance films and sheets, we are contributing to the realization ofclability, and other advantages of die casting products to realize offerings with

next-generation technologies.

42

Integrated Report 2021

Initiatives for fiscal 2021 and beyond

Injection molding machines: China recovered from the pandemic, and ourWe will organize domestic production bases and increase the production

bases catered to the growing demand for medical-related products bycapacity of plants in Thailand and India to enable the provision of optimaldelivering products in line with customer specifications and deadlines.

products to markets in the United States, China, and India, which are

Die casting machines: We released the industry’s first large electric die

experiencing recoveries in demand for injection molding machines. In view

casting machine, which realizes energy-saving and high-cycle perfor-of the increasing busyness of production bases in Japan and overseas, wemance. The DC1100/1300R-E, a high-productivity, low-environmental-

will improve production efficiency and enhance quality, cost, and delivery.

impact die casting machine, received a Special Jury Prize at the 51st

As the market for die casting machines is recovering from a slump, we will

Machine Industry Design Awards, organized by IDEA.

secure orders. Also, we will launch new models based on the development

Extrusion machines: The demand for equipment used to install LiB separator

technologies that improve productivity and reduce environmental impact.

film production lines is increasing as the automotive industry transforms andWe will increase extrusion machine production capacity to meet customer

switches over to electric vehicles worldwide. We are the only manufacturer

deadlines for large orders received from manufacturers in China for LiB

that can provide manufacturing equipment for all production line stages,

separator film production lines.

including extractors, and we have received inquiries and large orders frommanufacturers in China, which is a global manufacturing base.

Integrated Report 2021

43

Management Strategy by Company

Net Sales

Overseas Sales Ratio

Strength

Weakness echnical capabilities for the specifications of ultra-large special-purposeTcustom products

Machine Tools
Company

23%

FY2020Dispersal of resources due to diverse product lineup

 bility to develop world-class technologies that enable leading-edgeAnano-order processing¥8.5
billion41%¥20.8 billion

Low percentage of overseas sales esources that enable production of ultra-large products through toRhigh-precision products

FY2020

Opportunity
Increasing
demand for systemization and the introduction of the IoT
to save labor and improve productivity

The Machine Tools (MT) Company contributes to the advancement of industries around the world by manufacturing, selling, servicing, and

S

W

O

T

ThreatStrengthening of export control regulations
Technological progress of manufacturers in emerging countries

Increasing investment in new environment-friendly infrastructure and energy
Growth in new demand accompanying the shift to electric vehicles

retrofitting high-precision machine tools in a wide range of fields, including natural energy; social infrastructure; the manufacture of equipment for automobiles, railroads, ships, airplanes, and other forms of transport; construction machinery; die, mold, and component machining;high-precision molding for smartphone camera lenses; and glass lens molding.

Main Products Business Management 

Double column type machining centers

Many customers want to heighten their production efficiency by minimizing theleveraging advanced technologies in such front-end processes as marketing

Boring machines

movement of personnel through the introduction of laborsaving measures,and design—we will evolve the large special-purpose machines that are ourunmanned operations, and remote maintenance, and we must maintain capa-

forte into machines with high levels of efficiency that are comparable withbilities for catering immediately to such customers. Accordingly, we will analyze

those of general-purpose machines.

 igh-precision aspheric and free-formHsurface Grinders

Double column type machining center(MPC-E II)

Boring machine (BTD-110H.R16)

High-precision aspheric and free-form surface grinder(ULC-100F (S))

how we can be of use to customers and continue optimizing our product portfo-

Performance Summary
Amount of Orders Received / Net Sales

Operating Profit (Loss) / Operating Profit Ratio(Billions of yen)(Billions of yen)

40
30

24.1 23.7

31.3
27.3

30.7
26.1

29.6
22.8

20

20.8
17.4

–0.6

2017

2018

Amount of orders received

2019

2020

(0.1)

0

10
0

3.8

0.6

2021 (forecast) (FY)Net sales

–1.2

(0.5)
(1.1)

2017

2018

Operating profit (loss) (left axis)

optics, and semiconductors. Also, we will increase the scale of the highprecision machines business by adding Europe’s precision components
market to our current overseas markets—which are dependent on China—andronmental initiatives. As for regions, in addition to the mainstay regions ofby entering new medical markets.

6.0

North America and China, we will strengthen our presence in India and

0

(0.8)
(4.0)

–3.0

2020

–6.0

2021 (forecast) (FY)machines for advanced businesses, such as smartphones, automotive

the SDGs.

(%)

0.3

2019

we will advance the development and marketing of products aimed at realizing

projects are driving growth, such as automobiles, aircraft, energy, and envi-

3.0

1.0

(4.8)

machining and step up the development and sales of high-precision

For large machine tools, we will foray into fields where infrastructure

1.0

1.2

We will continue to hone our world-class technologies for high-precisionlio. Further, by circulating customer feedback in-house and setting benchmarks,

Europe to raise the percentage of exports and increase the scale of ourbusiness. In addition, through the “SHIBAURA DX” initiative—which is transforming our entire manufacturing process and making it more efficient by

Value Creation 

Operating profit ratio (right axis)

Results and topics of fiscal 2020 measures

Business Overview 

Initiatives for fiscal 2021 and beyond

We improved the manufacturing process for tanks and containers byFor machine tools, we will focus on fields that promise growth, such as

applying conventional “milling + friction stir welding (FSW)” technology toautomobiles, aircraft, energy, and the environment. Most recently, we

To help customers maximize value, the MT Company will establish commer-

high-speed machining centers for machining aircraft components; and rollrealize “Turning + FSW” technology.

developed a large high-speed multipurpose machine aimed at improving

cial operations for manufacturing, selling, servicing, and retrofitting machine

grinding machines used in the high-precision grinding of mill rolls for steel.

In pursuit of value-added cutting, we advanced research and development

productivity in relation to large components for wind power and hydroelec-

for 3D modeling.

tric power generation, which are increasing in size. We will use the newOrders and sales related to wind power generation increased on the backmachine to help customers improve their production efficiency.

of demand for renewable energy.

With respect to high-precision machines, we will continue enhancing theOrders and sales for onboard cameras rose due to the promotion of auton-

accuracy of high-precision aspheric surface grinders, develop equipment

omous driving.

that realizes the precision sought by the market, and help customers

tools for a broad range of industries, from large machine tools that serve as
the “mother machines” with which machine tool manufacturers produce their

High-Precision Machines

products through to high-precision machines that are required worldwide for

The Group contributes to the advancement of leading-edge markets by provid-

the manufacture of optical components.

ing high-precision aspheric surface grinders for smartphone camera lens
molds and endoscope lens die machining; high-recision optical glass molding

Machine Tools

press machines for molding automotive, security, and mirrorless camera

We support manufacturing infrastructure through the products we market,

lenses; and high-precision slicing machines for slicing semiconductor wafers.

which include ultra-large machine tools for the energy field, social infrastructure, industrial machinery, and machine tools; double column type machining

Retrofitting Businesscenters and horizontal boring and milling machines for the automotive

Available for SHIBAURA MACHINE equipment and equipment manufactured

industry, transportation equipment, and construction machinery; large verti-

by other companies, our retrofitting is an environment-friendly method ofcal boring and turning mills for renewable energy power generation equip-

extending the life cycles of existing machines and improving their production

ment and aeroengines; bridge type multipurpose machines; horizontal

efficiency and precision.

44

Integrated Report 2021

develop new products and improve the performance of their existingproducts.
With the introduction of the in-house company system, we will accelerate
the integration of resources for machine tools and high-precision
machines while revising our product portfolio and raising our technologicalcapabilities, production efficiency, and quality to even higher levels.

Integrated Report 2021

45

Management Strategy by Company

Net Sales

Control Systems
Company

Overseas Sales Ratio

Strength6%

FY2020Dispersal of resources due to high-mix, low-volume production

Establishment of servo technology as the basis of control

Dependence on specific customers

 obot control technology cultivated through the commercialization of SCARA
R
robots since their earliest days

¥1.9
billion33%¥5.8 billion

Weakness

Control technology know-how cultivated in the machine tool and molding machine fields

 n overseas production system that enables local production and local
A
consumption of robots

FY2020

Opportunity
Increasing need for unmanned and labor-saving systems

S

W

O

T

 rowing demand for semiconductor manufacturing equipment due to theGspread of 5G

As well as unique development competence that realizes constant evolution and optimization, the Control Systems (CS) Company has

Rising demand for new robots due to the shift to electric vehicles

adaptability that is based on a thorough knowledge of all kinds of manufacturing sites. We use these advantages to contribute to automation,

ThreatRise of manufacturers of inexpensive robots in China
Stricter safety standards and regulations in each country
 engthening of delivery times and higher costs for components and materials,
L
including semiconductor components

Increasing demand for servos due to the expansion of electrification in various
industries

labor-saving, and efficiency improvement in a wide range of operations at manufacturing sites, including assembly, inspection, and conveyance.
Also, our extensive capabilities are enabling the creation and expansion of control solution businesses in the global market.

Main Products

Business Management 

Industrial robots

Regarding industrial robots, for the new-model SCARA robot THE600 and the

FA controller, Servo systems

new robot controller TS5000, we are working with local sales bases andthrough the provision of products and services that cater to electrification

partners mainly in East and Southeast Asia to capture major customers inneeds, which are set to become a trend in various industries going forward.

the automobile, smartphone, and electric vehicle industries. Further, with theAlso, the CS Company will expand the system engineering business throughaim of further increasing sales of SCARA robots, we will advance the procure-strengthened collaboration with other in-house companies so that the CS

ment of important components in China, and for production in the country weCompany can capture demand related to automation projects in areas

will pursue local production for local consumption. As for the domestic

peripheral to molding machines and machine tools and create synergistic

market, the CS Company will collaborate with the M&P Company and the MT

benefits. In addition, we will build and sell logistics conveyance systems that

Company in providing solutions based on the use of robots for the automa-incorporate equipment for palletizing and depalletizing cardboard and auto-tion of pre- and post-processes, advance the packaging of systems, andmatic unpacking to meet the growing demand for the complete integration of(%)

heighten added value to increase the scale of sales and secure profits.

in-plant logistics from plant entrance to plant exit.

6

Further, we will market dual-arm collaborative robots, which are being

Linear motors
System engineering

Industrial robot (THE400)

Servo amplifier (NCBOY-120)

Controller (V70)

Performance Summary
Amount of Orders Received / Net Sales

Operating Profit (Loss) / Operating Profit Ratio(Billions of yen)(Billions of yen)

7.5

9.4 9.6

9.1

10.0

6.4

6.1

7.3
0.6

5.0

0

2.5

–0.6

0

Amount of orders received

2019

4.2

1.2

2020

2021 (forecast) (FY)Net sales

Note 1: A s of fiscal 2020, the classification of industrial robots and electronic controls has been changed
from the Others segment to the Control Systems segment.
Note 2: In the above graph, net sales include intersegment sales.

–1.2

0.4
(0.4)

3

(0.5)

developed from a market-oriented perspective, as soon as possible anduncover demand.

0

(0.0)

(0.0)

2019

2020

Operating profit (loss) (left axis)–32021 (forecast) (FY)–6

Value Creation 

Operating profit ratio (right axis)

Results and topics of fiscal 2020 measures
To increase adoption of SCARA robots for smartphone manufacturing

Business Overview We develop various types of robots, including SCARA, cartesian coordinate,provide linear motors suitable for building high-speed, high-precision stages

painting, and vertical multi-articulated robots. Our robots are used for numer-that meet customer needs—from ultra-large stages to small stages used inous conveyance and assembly applications at the manufacturing sites ofsemiconductor manufacturing equipment—by exploiting know-how gained

smartphones and electronic devices, electric vehicle batteries, and automo-

from our long experience in the development and manufacture of large

tive components. In response to the increasing diversity and complexity ofmachine tools. In addition, the CS Company offers automation systems best

work, we are also currently developing collaborative robots, intelligent robots,suited to solving the various issues that our customers face, including theand IoT-enabled robots. Used in a wide range of equipment, our servo sys-

designing of production line automation as well as production line

tems maintain high precision and stable performance even in harsh environ-labor-saving and acceleration.

ments and improve cycle time by reducing settling time. Meanwhile, we

We will scale up servo system operations by acquiring large customers

Initiatives for fiscal 2021 and beyond
We will make inroads into the electric vehicle rechargeable battery industry

equipment in China and contribute to production stability, we added theby developing SCARA robots with payload capabilities.

600mm-arm-length THE600 to THE series products, which increase theTo expand the system engineering business, we will strengthen capabili-

speed and trajectory accuracy of SCARA robots.

ties and strongly promote the development of new markets.

By incorporating new THE400 series SCARA robots into customers’ screwWe will penetrate the logistics industry by catering to in-plant logistics

tightening equipment, we helped improve the efficiency of stable screw

needs through the building of systems that incorporate equipment for

tightening operations in the manufacture of smartphones and automotive

palletizing and depalletizing cardboard and automatic unpacking.

electrical components.

In line with the shift toward electrification in various industries, we willWe helped increase the booming semiconductor industry’s production

advance product development with a view to acquiring major customers

capacity by supplying linear motors for semiconductor manufacturing

for servo systems. At the same time, we will establish capabilities for theequipment.

mass production of servo systems as soon as possible.

In anticipation of growing demand for robots going forward, we strengthened our support system for local sales in Southeast Asia.
We developed new customers by introducing palletizing equipment for
the logistics industry.

46

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Integrated Report 2021

47

Sustainability Management of
SHIBAURA MACHINE

Sustainability Advancement System
Board of Directors
ReportAs a supporter of manufacturing worldwide, the SHIBAURA MACHINE Group will address social issues andSustainability Committee

enhance corporate value through outstanding technological innovations that help the global manufacturing

Chair: President
Members: Executive officers who are also directors

industry adapt to megatrends. We conduct business activities in countries and regions around the world.
To leave a rich global environment for future generations and contribute to the sustainable development ofsociety, we will make sustainability considerations the drivers of business management and continue toSupervise, direct

Secretariat
Corporate Planning Division

take into account the viewpoints of all our stakeholders around the world, including customers, shareholders,and investors, suppliers, and business partners, employees, and local communities.

Administration Division, head office divisions
ReportSupervise, direct

In-house companies, head office divisions, affiliated companies

New “SHIBAURA MACHINE” Long-Term Vision 2030

Production Center
ReportR&D Center

Supervise, direct

In-house companies, head office divisions, affiliated companies

Coordinate

In-house companies, affiliated companies

Recommendations are made to executive bodies to ensure that the SHIBAURA MACHINE Group’s activities help sustain the

Address social issues and enhance corporate value through outstanding technological innovations that help the global manufacturing

development of the Group and society and to ensure that these activities earn appropriate evaluations from stakeholders.

industry adapt to megatrends
New SHIBAURA MACHINE

Megatrends
Climate change and resource
scarcity

Technologicalinnovations

Themes of Sustainability Management Initiatives
Item

Current Individual sales of industrial machinery

Rapid urbanization and changes in
population structures

Added value of “combining products
and services”
FutureAdvancements in technology(Monetizing processes and knowledge)(Moving away from self-sufficiency andstepping up M&As)

Relationships withcustomers
Relationships with
suppliers and business
partners

Customers

Shareholders andinvestors isclose corporate informationDin a timely manner
Ensure appropriate returns ofprofitMaintain and increase tocorporate value

 ealize expected quality andR
performance
Provide services promptlyOffer environmentallyfriendly products

Prevent global warming
Make productive use ofresources
Manage chemical
substances

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Integrated Report 2021

Local communities

 rocurement from businessP
partners who are promoting
environmental preservation
activities

Employees
Respect human rights and diversity
Ensure fairness in assessment andtreatmentCreate pleasant working environments

Relationships with
employees

Integrated procurement divisions, which had been dispersed in separate businesses,
and began centralized Companywide purchasing through the Production Center

Compliance

Conducted a periodic green procurement survey
Conducted a periodic environmental survey of 527 companies (of which
32 companies improved their ranking compared with that of the previous survey)

 revention of transactions withP
antisocial forces

Promoted our electronic data interchange (EDI) system(newly registered 19 companies including new business partners) nhancing investor relationsE
activities

Enhanced and expanded disclosure aving more dialogues withH
institutional investors
Increasing disclosure uman resourceHdevelopment
Diversity
Safety and health

Conducted dialogues with securities analysts and institutional investors(116 times)
Conducted a virtual General Meeting of Shareholders
Conducted off-line and on-line training to foster personnel capable of thinking andacting independently
Planned and implemented a training curriculum that is focused on thinking andacting independently and targets new and young employees
Promoted the empowerment of diverse personnel, implemented remote working aspart of workstyle reform, and encouraged the use of childcare and nursing caresystems
Developed our occupational safety and health management system (OSHMS),
conducted various types of safety and health related-education, and advanced
health and safety initiatives

SHIBAURA MACHINE
Group

Environment

Quality and safety

Initiatives for Major Action Plans (FY2020)
Advanced the development of the next-generation machiNet platform(enhanced and expanded the basic machiNet package)

Services

Relationships withshareholders and investors

Relationships with Stakeholders

ThemesEngineering

Suppliers andbusiness partners
 nsure fairness in supplier selection
E
and transactions
Promote CSR with business partners
Establish supply chains

Prevent accidents and disasters at plants
Cooperate in and contribute to the efforts torevitalize local communities
Respect local cultures and customs

Relationships withlocal communities ontributions to local
C
communities

Implemented a range of educational activities, such as work experience andfactory tours

 upport for technicalS
education

Organized blood donations and participated in TABLE FOR TWO activities

 oexistence with local
C
communities

Environmental Initiatives

 trengthening the environmentalS
management system
Reducing environmental loadGlobal warming prevention
Pollution control

Participated in the environmental activities of 17 external organizations

Environmental impact reduction
Tackled the environment-related goals of the SDGs
Formulated and advanced our Second Environmental Action Plan
(2021–2025)
Promoted the introduction of eco-cars to the Company-owned fleet(43.2%)

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Quality Assurance

Relationships withcustomers

In order to offer products and services that satisfy customers, the SHIBAURA MACHINE Group is striving to standardize and improve not only
product safety and quality but also its after-sales services and corporate image.

Establishment of a Quality Policy

Supply Chain Management

Relationships with suppliers
and business partners

The material departments of the SHIBAURA MACHINE Group consider environmental preservation, procurement standards,
and compliance to be three major elements of CSR procurement.

SHIBAURA MACHINE Group Procurement Policy

Green Procurement

The SHIBAURA MACHINE Group conducts procurement activities based

Committed to passing the environment of this one and only planet

SHIBAURA MACHINE Group Quality Policy for Fiscal 2020

on relationships of trust with suppliers and other business partners thaton to next generations in a healthy condition, the SHIBAURAAs well as providing products, systems, and services that satisfy the needs of customers around the world, the SHIBAURA MACHINE

have been cultivated through fair transactions in compliance with pro-

MACHINE Group promotes the procurement of products, parts,

Group fulfills its quality assurance responsibilities with respect to these offerings and ensures their safety, thereby contributing to thecurement-related laws and regulations and social norms.

materials, and raw materials that lessen environmental load, for theadvancement of daily life and culture and increasing the Group’s corporate value. Therefore, we have established the

Further, when conducting new business transactions, the SHIBAURASHIBAURA MACHINE Group Quality Policy to guide activities that are aimed at promoting effective quality control.

MACHINE Group gives priority to business partners who have endorsed

Putting customer satisfaction before everythingprocurement based on corporate social responsibility (CSR).

Enhancing the quality of our sales, engineering, manufacturing, and service activities
We will enhance work quality in every division by encouraging each employee to take the initiative in managing all processes andincorporating IT into initiatives that improve process systems and methods, based on the idea that downstream processes are“the customer.”
Advancing our quality management systems
We will realize improvements and other quality management activities by managing the operations of quality management systems
effectively and efficiently.
Complying with laws and regulations
We will always be aware of and comply with the requirements of laws, regulations, etc., relevant to product quality and safety.

Procurement Standards
Our activities are pursuant to the SHIBAURA MACHINE Group Codeof Conduct, which emphasizes the need to understand international
norms regarding human rights and respect fundamental humanrights and also sets forth a basic policy for procurement activities.
Procurement procedures are speciﬁed in the Purchasing Management Rules and are conducted by the designated procurement
departments.
Please see our Website for the SHIBAURA MACHINE GroupIn order to ensure the safety of customers, we observe relevant laws and regulations and make willing, good-faith information disclosures tocustomers.

Compliance
Aiming to ensure CSR-based procurement that does not violate laws
or social norms, we have instructed design personnel, who are thestarting point of production activities, in relation to improvements andInitiatives for Quality Enhancement
Advancing Quality-Related Capabilities to Improve Quality
Our total quality management (TQM) activities pursue and continuously improve quality and added value so that we can provide even better
products and services that reflect the diversifying needs of customers.
We are creating a system that allows customers to use our machines with peace of mind. Specifically, in the unlikely event that a quality
complaint arises in relation to a product or service, the cause is investigated and countermeasures are taken under the supervision of aquality assurance manager.

Holding Study Sessions to Heighten Safety and Quality
We use a variety of methods to prevent and solve safety and quality issues.
As 90% of the safety and quality of a product is determined at the design stage, engineering divisions regularly hold blueprint study
sessions at this stage to identify and rectify potential causes of failures or accidents.
Personnel from engineering, manufacturing, and service divisions and affiliated companies are invited to participate in training seminars
that are conducted by highly experienced engineers.

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Integrated Report 2021

Our material departments established the Green Procurement
ment criteria. The Green Procurement Guidelines were revised in
April 2020, and the list of environment-related substances wasreviewed and expanded. Our entire supply chain is environmentallyconscious in its procurement activities.

Transition to Centralized Purchasing
In fiscal 2020, we conducted a reorganization and implemented centralized purchasing. By centralizing the management of buyers and suppliers, we will improve operational efficiency and strengthen compliance.

Material Procurement Policy (Japanese only).
https://www.shibaura-machine.co.jp/jp/company/shizai/index.html

Product Safety Initiatives

friendly products (green procurement).
Guidelines to set forth procurement policies, evaluation, and judg-

We will accurately grasp and analyze customer demand, both potential and manifest, and continue our improvement activities,
considering customer satisfaction ﬁrst and foremost.

purpose of and as an integral part of developing environmentallycountermeasures, particularly with regard to such laws as the Subcontract Act, knowledge of which is indispensable for such personnel.

Compliance with the Subcontract Act
To ensure appropriate subcontracting transactions, internal audits
and education based on the Subcontract Act are conducted by theGroup in Japan (six divisions).
Also, e-learning has been used to train employees, including
those of domestic Group companies.

Education and Audits
 onducted internal compliance education (at three different times duringC
the year; 98 persons participated)
Conducted internal procurement audits (at six different times during the year)
Participated in third-party seminars (including web-based workshops), etc.

Procurement from business partners who are promoting environmental
preservation activities
Environmental preservation activities by business partners should
basically be their own initiatives, but we assist them with their improvement activities if necessary. In fiscal 2020, we conducted periodic
environmental surveys at 527 companies.
Risk management
We have Groupwide risk management systems.
Supply chain reporting system
Please visit our website for information about our supply chain
reporting system (Japanese only).
 ttps://www.shibaura-machine.co.jp/jp/company/shizai/hpartnerline.html
Global procurement
We have built a global procurement network that enables us to integrate
procurement information possessed by overseas production facilities
and identify the most appropriate sources in terms of required delivery
date, quality, and pricing. In East and Southeast Asia, we will establish
local production and consumption systems and use optimal procurement networks for cost reductions.
Promoting environmental activities with a new EDI system
We use an EDI (electronic data interchange) system in our purchasingtransactions to reduce the need to send and receive slips and documents to or from business partners by telephone, email, facsimile, or
regular mail, in addition to making processes paperless to curtailshipping and paper costs.

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IR and SR Activities

Relationships withshareholders and investors

Human Resource Development

Relationships with
employees

We provide information through various channels and on various interactive occasions so our shareholders and investors will deepen their

By focusing on the passing on of skills, the acquisition of new skills, and the development of globally competent personnel, we are developing

understanding of the SHIBAURA MACHINE Group.

and acquiring the personnel who will form the basis for advancement of the new SHIBAURA MACHINE.

Basic Policy on Information Disclosure

Education Systems

As part of its efforts to invigorate the General Meeting of Share-

The SHIBAURA MACHINE Group discloses various corporate infor-

holders and facilitate the exercise of voting rights, we send convoca-

The SHIBAURA MACHINE Group offers on-the-job training and a wide range of education and training for all Group personnel regarding

mation, such as its Basic Commitment, Code of Conduct, ﬁnancial

tion notices early and disclose them on our website before they are

specific areas of expertise necessary for specific roles and positions so that they can demonstrate their capabilities to the fullest andstatements, and other ﬁnancial information, in a timely and appro-

sent so that shareholders can fully examine the proposals of theaccomplish their goals.

priate manner so shareholders, investors, business partners, local

meeting. In addition, to enable as many shareholders as possible tocommunity residents, and other stakeholders can gain a correct

attend, we avoid holding the meeting on dates when numerous com-knowledge of the Group’s present condition.

panies hold shareholder meetings. Also, for the exercise of voting

Online education

Global production engineer education

Manufacturing education

Design consultative meetings

CAD, CAE, and basic technology education

Internal transfer-based
education of key personnel

SeniorNew employee
training

tions activities for securities analysts and institutional investors with

Sales skills training

Third-yeartraining

Basic training

The SHIBAURA MACHINE Group conducts a range of investor rela-

Applied training

with hybrid participation.

Mentor training

Shareholders, which focused on fiscal 2020, as a virtual meeting

Customer service skills
training

Investor Relations Activities

demic, in June 2021 we held the 98th Ordinary General Meeting of

Leader training

management and strive to prevent information leaks prior to disclosure.

New chief andsection chieftraining

as well as the convening of the meeting during the COVID-19 panOn-the-job skip training

In addition, to prevent insider trading, we conduct strict information

gies and providing more opportunities for shareholder participation

Chief
management
training

On-the-job skills traininghttps://www.shibaura-machine.co.jp/en/ir/DisclosurePolicy.html

Taking into consideration the importance of diversifying themeeting by catering to those wishing to attend via digital technolo-

Locally hired overseas personnel education

illustrations of the business overview, business plans, and strategies.

New section
managertraining

Education before overseas postings

Policy as a guideline on disclosure to shareholders and investors.

Evaluator
training

Globally competent personnel education

our progress in a readily understandable manner by providing graphic

Management
training

Export control education

to investors, we have established the SHIBAURA MACHINE Disclosure

Selfdevelopment

Qualification acquisition (technical proficiency tests, information processing
technology, business careers, etc.)

At the General Meeting of Shareholders, we update shareholders on

Generalmanagertraining

English conversation classes, in-house TOEIC examinations, and English skills courses

rights since the fiscal 2016 General Meeting of Shareholders.

Development of globallycompetent personnel

Technical
skillsTechnologies

Workshops (introduction of new technologies, technology-related lectures)

have established the Policy on Systems and Initiatives for the Pro-

Sales

Engineer education (management, marketing, etc.)

English and used a platform for the electronic exercising of voting

Business skills

Strategy training

to our sustained growth and medium- to long-term corporate value, we

Position-based

Management
Management
seminarsLife plan training

shareholders, we have translated part of the convocation notice into

Disclosure Policy

Career development

phones. In response to an increase in the number of non-Japanese

To ensure that constructive dialogue with shareholders contributes

motion of Shareholder Dialogue. Further, to realize equitable disclosure

Rank-based

rights, we have adopted electronic voting via the internet and smart-

Mid-career

disclosed promptly, accurately, and fairly.

global human resource development, compliance education, technique and skills improvement and transfer, and self-directed development.

JuniorAlso, whenever important corporate information arises, it is

We also have human resource development programs for employees of differing experience, from new hires to experienced employees, including

the aim of continuously increasing the corporate value of the Group.
In fiscal 2020, we held two financial results briefings, at the end of
the fiscal year and at the end of the second quarter, in which the presi-

Engineer Training

dent explained the details of and progress under the medium-term
management plan, the Management Reform Plan. The president also
held dialogues with overseas institutional investors to deepen theirunderstanding of the Group. Furthermore, the Public and Investor
Relations Division increased and enhanced dialogue by holding 116
investor relations meetings.
Through regular reporting to the Board of Directors, opinions
and recommendations obtained from constructive dialogue are fed
back to the senior management team and actively used in enhancing business management.

 ommunication with Investors and the GeneralC
Meeting of Shareholders
SHIBAURA MACHINE recognizes the importance of the General Meetingof Shareholders as a venue for direct communication with shareholders.

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Integrated Report 2021

The SHIBAURA MACHINE Group provides engineer education for mid-career and junior engineers, who will be the leaders of the future. Our
The virtual convening of the 98th Ordinary General Meeting of Shareholders

training improves skills directly related to work by covering a wide range of topics, from basic technology acquisition and computer-aided
design education through to the acquisition of certification as a professional engineer. As well as providing training on design and technical

Enhancement and Expansion of Disclosure
In fiscal 2020, as part of efforts to enhance and expand disclosure,drawing, we ensure that our engineers acquire other essential skills and knowledge related to marketing strategies, languages, and basic
manufacturing, thereby developing personnel who can play active roles in many different fields.

we extended its scope and enhanced the content of supplementary
explanatory materials for financial results. Furthermore, we
increased disclosure frequency by changing from semiannual
to quarterly disclosure on our website.
In addition, we posted English translations of our medium-term
management plan and other documents on our website as a measure for overseas investors.

Global Human Resource Development
We have two programs for developing personnel who can work in a global marketplace: training for globally competent production engineers
and training for globally competent personnel. Another objective of these programs is to have trainees study together and thereby createcross-divisional connections in the Group.

(Persons)Fiscal year

FY2016FY2017FY2018FY2019FY2020Global production engineer education

8

7

9

7

Global human resource development education

8

6

8

7

* Due to the impact of COVID-19, these programs were suspended in the middle of fiscal 2019 and resumed in fiscal 2020.

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Diversity and Inclusion Initiatives

Relationships with
employees

Work–Life Balance

Relationships with
employees

The SHIBAURA MACHINE Group carries out various initiatives to create working environments in which all employees can take pride in their work.

Respect for Human Rights
The SHIBAURA MACHINE established the SHIBAURA MACHINE Group Code of Conduct pursuant to which it will respect fundamental human

Activities

rights and diversity and provide support in the realization of a work–life balance.
We abide by the laws and regulations of all countries and regions, understand international norms regarding human rights, and respect

Childcare and family care leave systemfundamental human rights. We do not tolerate child labor and forced labor.
If any violation of fundamental human rights happens in the SHIBAURA MACHINE Group, we will take appropriate action. If any supplier isfound to be violating fundamental human rights, we will require it to take remedial action.
We hold ongoing dialogues with relevant stakeholders in order to respect human rights.
We provide an environment in which employees can work creatively and eﬃciently, supporting them in the realization of a work–life balance.
We endeavor to realize a working environment that is safe and pleasant to work in.

Addressing Diversity

Relationships with
employees

We offer our employees various forms of support so that they can fulfill their childcare and family
responsibilities with peace of mind.
[Specific forms of support available]
Maternity leave, extended leave for childcare, nursing care leave, extended leave for family care,family care leave, and shorter working hours

Promotion of planning andtaking annual paid leave

The taking of annual paid leave in a planned manner is encouraged. For example, we have introduceda system for taking leave on important occasions (birthdays, etc.) as well as a system that allows fortaking leave as required, including leave in half-day increments and leave for three consecutive days(or leave for two consecutive days twice at different times).

Accumulated reserve leave

A system for using accumulated paid leave for long-term recuperation or volunteer activities

Setting a contact point forreporting cases of harassment

We have a contact point for consultation on harassment issues and provide education to prevent
cases of harassment in order to create comfortable workplaces free from harassment of any kind(sexual, power, etc.).

Registration at public entities inrelation to gender equality

In Numazu, Shizuoka Prefecture, where its head office is located, the Company has registereda declaration endorsing gender equality (Shizuoka Prefecture) and registered as a promoter ofgender equality (Numazu City).

The SHIBAURA MACHINE Group is working to promote diversity so that employees with diverse personalities can fully demonstrate their abilities.

 hildcare and Family Care Support Programs
C
and Their Uses
In the past ﬁve years, all eligible female employees have taken(Persons)

2016

2017

2018

Persons who took childcare leave
male employees in parentheses

Fiscal year

7 (1)

5 (1)

9 (2) 12 (6) 11 (8)Percentage of those returning fromchildcare leave

100%

100%

100%

request, and leave entitlement carryovers that can now be used for

Persons who took family care leave

0

0

0

1

0

short-term family care purposes.

Persons who used the short working
hour program (for childcare)

5

9

10

9

3

Persons who used the short working
hour program (for family care)

0

0

0

0

0

childcare leave, over 90% of whom returned following the conclusion of such leave. Other mechanisms for supporting work–lifebalance include shorter working hours, overtime exemption upon orking Environments Supporting Childcare Leave
W
and Facilitating Long Service of Employment
The average length of service of employees in ﬁscal 2020 was 18.2

100% 91.6%(From fiscal 2016, the data includes five domestic affiliates.)

Fiscal year
Resignees (female employees inparentheses)

indicates that long service by many employees is one of our char-

Of whom, resignees for maternity or
childcare reasons

acteristics. With regard to resignations, the main contributing factor


2016

2017

2018

2019

0

0

0

0

(From fiscal 2016, the data includes five domestic affiliates.)

ees, which has been on the rise in recent years. As a measure to

management, and the SHIBAURA MACHINE Group is committed toPromoting Mental and Physical Healthgiving momentum to and strengthening these functions.

The SHIBAURA MACHINE Group promotes mental and physical health sothat all employees can demonstrate their capabilities to the fullest while

Development of Safety and Health Activities

maintaining good mental and physical health. Persons diagnosed witha physical ailment during a health examination or with a mental health

The Group proactively conducts safety and health activities with theissue receive individual health guidance from and have one-on-one

aims of creating working environments that are safe and comfortableinterviews with industrial physicians and nurses. We also organize healthand realizing zero industrial accidents.

events and educational courses so that all employees become moreaware of the importance of their mental and physical health.
As countermeasures to the COVID-19 pandemic, we are strengthening romoting Occupational Safety andP
Health Management Systems
Recognizing that safety and health are integral to corporate activities and based on a commitment to preventing industrial accidents

employee health management; ensuring that employees wash theirhands, wear masks, and keep personal distance; prohibiting unnecessary
business trips; canceling internal events; implementing teleworking andweb conferencing; and promoting off-peak commuting.

and the spread of infectious diseases and to promoting employee

prevent this, we are strengthening career education.
* SHIBAURA MACHINE Co., Ltd., onlyPromotion of the Employment of Diverse Personnel
We promote employment based on personal skills andSafety and health management forms the foundation of business2020

35 (6) 32 (2) 43 (7) 30 (6) 19 (1)1Relationships with
employees

2020

(Persons)

years (18.1 years for men and 19.1 years for women),* and thisover the past five years has been the departure of young employ-

2019

Safety and Healthhealth, we acquired OSHMS* certiﬁcation for our plants. The

Giving Safety Guidance and Support to Employees

OSHMS techniques are also applied at all Group companies to

Our safety and health personnel have received Ministry of Health,improve their safety and health management.

Labour and Welfare qualiﬁcations as safety and health education*O ccupational safety and health management system approved by the Japan Industrial Safety & Health
Association
(Persons)qualiﬁcations, not on gender, nationality, age, or the like, thus ensuring the assignment of the right personnel to the right positions.


Fiscal year

2016

2017

2018

2019

2020

Non-Japanese employees

11

12

13

15

15

(From fiscal 2016, the data includes five domestic affiliates.)

trainers and provide various types of education to increase the safety
awareness of employees.
In addition, once a month employees are selected from each department to participate in interactive safety training for small groups. The
purpose of this training is to help employees understand the importance of observing safety rules and acquire knowledge about safety sothat they can apply it to safety management in the workplace.

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Environmental Action Plan

Environmental
initiatives

Environmental Considerations in Product Development

Environmental
initiatives

The SHIBAURA MACHINE Group established the 2nd Environmental Action Plan, a ﬁve-year medium-term plan spanning fiscal 2021 to fiscal

The SHIBAURA MACHINE Group is committed to the development of environmentally conscious products to offer its customers products

2025, as well as a long-term plan up to 2030. These plans were prepared with reference to the COP21 international agreements and trends inwith a lesser environmental load.

Japan and overseas and cover our overseas production facilities as well. Under the plans, the key medium-term themes are to clarify how
products contribute to the environment and to strengthen our global management. Below is a summary of the progress we made under the
1st Environmental Action Plan in ﬁscal 2020.


Reference year: 2013

1st Environmental
Action Plan

2nd Environmental Action
Plan

FY2020 Achievements

FY2021 Targets

Initiatives (Indicators)

Environmental contribution throughOffering environmenenvironment-friendly products
tally friendly products(contribution to CO2 reduction) (t)Long-Term Objectives to Be Achieved
by FY2030

23,346 (181%)

26,500 (205%)

34,410 (267%)

Global warming
prevention

Reduction in CO2 emissions intensity(t/hundred million yen)

22.5 (–18%)

19.8 (–28%)

14.0 (–50%)

Making productive
use of resources

Reduction in waste discharge rate(t/hundred million yen)

2.59 (–25%)

2.54 (–26%)

1.2 (–65%)

Chemical substancesmanagement

Reduction in chemical substance discharge
rate (kg/hundred million yen)44.9 (–42%)

44.0 (–43%)

Biodiversity conservation(ecosystem network)—

Mt. Fuji Environmental Conservation Activities

Renewable energy (utilization of solar power
and untapped energy)
Green management

Overseas

Scope 3 initiatives(analysis of upstream and downstream impacts)

Developing Environmentally Conscious Products
As early as the new product development phase, we perform productEnvironmentally conscious productassessments to estimate and reduce the product's potential impact

Certificationon the environment. Engineering departments develop products

Solar power generation tocover 0.1% ofconsumption

0.1% of consumption

Continued these
initiatives

Assess environmental
load
Conduct mitigation ofdownstream load

Conduct mitigation activities

Generate more than 20.0% of electricity
consumed

Analysis of energy andwaste chemical
substance use

Building a management
systemStrengthening
communication

Investigate external infrastructure;
conduct internal investigations on
overseas environments; develop
environmental leaders at overseas plants

Strengthening management and reducing
environmental load (management upgrading)

Setting objectives forthree production centers

Assess environmental
load

Strengthen management and promote
reduction(reduce, reuse, and recycle) considerations. When a product iscompleted, an application for environmentally conscious product

Reducing Environmental Load from Products

Basic Policy

 trengthening the Environmental Management
S
SystemSince 1996, when we obtained ISO 14001 certiﬁcation for theWe will actively contribute to the creation of an environment that will
be passed on to the next generation in a healthy state as a corporatesocial responsibility (CSR).
We comply with all applicable international, regional, and nationalof certiﬁcation to cover other production centers, sales centers, andGroup companies in Japan as part of concerted Groupwide efforts,

standards, laws, regulations, agreements, industry guidelines, andin addition to strengthening our environmental management

Company rules related to the environment.

system. Regarding overseas operations, we obtained ISO 14001

environmentally conscious products.
We strive to reduce the environmental impact of our businessactivities, in order to protect biodiversity and ecosystems.

56

Numazu Plant, we have been consolidating and enlarging the scope

Integrated Report 2021

certiﬁcation for the Shanghai Plant in 2004, for the Chennai Plant in
2012, and for the Thai Plant in 2015.

6. Provision of information

standards. The term “life cycle” here includes raw material, manufacture, transportation, use, recycling, and disposal. Furthermore,(t)(Cumulative number of models)

40,000some of these products are compared with previous models to
calculate the amount of CO2 emissions reduction.*

525

30,000* The amount of CO2 emissions that is considered to have been reduced by replacing a previous model withan environmentally conscious product with higher energy-saving performance

20,000

327

～
～

556

595

800

34,410645

600

23,629 24,710 23,346

24,104400

12,886
10,000decreased sales of environmentally conscious products and otherfactors. We will achieve our long-term objective by enhancing our umulative number of environmentallyC
conscious product models (right axis)

0 2013

200

2017

2018

2019

～
～

Basic Policy for Environmental Activities

CO2 emissions reduction (left axis)
Target for CO2 emissions reduction (left axis)～～

environment-friendly products, and the advancement of initiatives to reduce the environmental impact of the Group’s business activities.

5. Recycling

3. Packaging streamlining

Number of Registered Environmentally Conscious Products andCO2 Emissions Reduction

cycle assessment (LCA) pursuant to SHIBAURA MACHINE GroupThe CO2 emissions reduction in ﬁscal 2020 was 23,346 tons due toby actively contributing to the creation of a sustainable environment through compliance with laws and regulations, the provision of

4. Ease of disconnection
and degradation

2. Raw material use
standards

environmentally conscious product list to 645 models.

CO2 emissions from our products of 34,410 tons by fiscal 2030.

In accordance with its Corporate Principles and Code of Conduct, the SHIBAURA MACHINE Group will meet its corporate social responsibility

1. Resource saving

ReduceReuse
RecycleIn ﬁscal 2020, 50 new models were registered, extending our

set ourselves a long-term objective of achieving a reduction in
Environmental
initiatives

Design Guidelines for Environmentally
Conscious Products

3Rs

it is registered as an environmentally conscious product.

In order to reduce environmental load from products, we haveWe contribute to society by developing and offering excellent

Product assessment

Products, which incorporate product design guidelines and 3R

All registered environmentally conscious products undergo a life

Consideration of global environmental
management system(strengthening of collaboration with overseas
subsidiaries)

Environmental Management

Application for environmentally conscious product certification

pursuant to the Design Guidelines for Environmentally Conscious

certiﬁcation is ﬁled for assessment, and if the product is certiﬁed,

40.0 (–48%)

LCA (life cycle assessment)

Assessment

2020

2030 (Target) (FY) 0

products‘ energy-saving performance further.

Initiatives to Reduce CO2 Emissions from
Product Use
Many of the SHIBAURA MACHINE Group’s products are used for along time, and CO2 emissions from product use account for a large
amount of all CO2 emissions generated over a product's life cycle.
Therefore, enhancing a product's energy-saving performance andreducing CO2 emissions from its use are effective ways to reduce
the environmental load of a product.

Introduction of an Environmentally
Conscious Product
All-Electric Injection Molding Machine EC450SXIII
By changing the structural mechanism to reduce the number of large
casting components, we have
reduced the machine’s weight by
3.3 tons compared with that of theprevious model. As a result, CO2
emissions at the product manufacturing stage are 5.48 tons lower.

EC-SXIII series

In ﬁscal 2017, we completed document revisions to reﬂect
ISO 14001:2015.

Integrated Report 2021

57

Sustainability Management of SHIBAURA MACHINE

01

02

Special Feature: Specific Initiatives

Creating Technologies for the Development ofEnvironment-Friendly Plastics

Retrofitting to Lay Industrial Foundations
for the Future—The M&P Company’s Ambitious Efforts for a Sustainable Society——The MT Company’s Mission to Extend Machine Tool Service Lives—

Plastic products are an integral part of our daily lives. At the same time, however, concerns are

Machine tools support the world’s key industries, including the automotive, aircraft, and shipbuild-

growing about the impact of waste plastics on the global environment. For many years, SHIBAURA

ing industries. In the context of initiatives to build a sustainable society, interest has been focusing

MACHINE has supported the development of plastic products, and this section provides a close-up

on retrofitting because it extends the service lives of machine tools. As a machine tool manufac-

on the latest efforts of the M&P Company to help commercialize environment-friendly plastics.

turer with a proven track record, SHIBAURA MACHINE is also pursuing pioneering initiatives in thefield of machine tool retrofitting.

Transitioning from Recycling to Invention—A New Frontier for Materials

Transitioning from Restoration to Retrofitting—A Major Current Trend

Worldwide, the development of biodegradable plastics

earth. Another material of great interest is cellulose

In the construction industry, the information industry,

SHIBAURA MACHINE launched its retrofitting

and new materials to replace plastics has become ananofiber, which is derived from plants. A fibrousand many other sectors, retrofitting has become abusiness in the 1970s. In the 1990s, we began retrofit-

focus of attention. We are working in partnership withmaterial extracted from cellulose—which is the main

much used term. Retrofitting is the process of recon-ting large-scale machine tools, and since the 2000s

material manufacturers to develop new plastics andcomponent of wood—cellulose nanofiber is one-fifth

ditioning machinery and equipment that has deterio-

we have been actively expanding the business over-provide manufacturing equipment for their

the weight of steel but more than five times stronger.

rated. Unlike restoration, which returns a machine to aseas. A major milestone was the widespread replace-

As well as assisting in the commercialization oflevel of precision and functionality comparable withment of manual machines with numerical control

environment-friendly raw materials, we are supportingthat of a new machine, retrofitting involves introducing

equipment in the 1980s. The subsequent need tothat comprises more than 50% inorganic materials,

initiatives that are accelerating the development ofadvanced technology and the latest equipment while

renew this numerical control equipment has greatly

such as calcium carbonate. Commonly called stone

practical applications for new higher-value-added

continuing to use the frame and other existing equip-

increased expectations with respect to retrofitting,paper, this material can be used as an alternative tomaterials.

ment as far as possible. Matching old and new equip-

and we are steadily continuing with research to meet

ment and upgrading to the most advanced equipment

the resulting demand.

commercialization.
One exciting new material is a composite material

A sample of cellulose nanofiber composite resin and a
SHIBAURA MACHINE twin screw extruder

paper and plastic. Stone paper’s raw material islimestone, a natural material found in many places on

Before retrofitting

extend service lives and reduces waste. As well as
benefiting the environment, our retrofitting contributes
After retrofitting

to technological innovation.

Evolving Factories Comprehensively to Realize New Technologies for Society
One of the drawbacks of using new materials made from natural materials is

SHIBAURA MACHINE continues to make new technologies available tothat the many processing steps required result in high costs. Therefore, tosociety.

Conducting Detailed Investigations to Retrofit the Products of All Manufacturers

popularize such materials the realization of low-cost manufacturing processes compatible with mass production is essential.
To this end, we are not only improving the efficiency of individualmachines but of entire factories. Our machiNet IoT platform improves
productivity by centrally managing digitized machine data and visualizing
the status of machines and workers. In addition, our change from a business

The Aims of Our machiNet IoT Platform

In addition to using environment-friendly raw materials, we support
efforts to invent new materials that add value. Together with customers,

58

Integrated Report 2021

trusted pioneer in machine tools, we stepped forward

domestic and overseas. For machine tools made by

to tackle this problem.
The aforementioned activities have earned

drawings of the machines. Also, we supplement

SHIBAURA MACHINE a favorable reputation for being

Sudden machine stoppage

discontinued machines with our own products andideally qualified to realize retrofitting services because

Intelligence

Predictive maintenance

Automation

Planned maintenanceimprove operator-friendliness.

it has both extensive experience in custom-madeShortage of human resources
and productivity improvementcompany system has increased linkages and synergistic benefits amongproduction stages.

in question to shut down in the meantime. As amachine tools made by all other manufacturers, bothother manufacturers, we begin by drafting internal

unit system, which was siloed according to product categories, to an in-house
all manufacturing processes, from upstream through to downstream

We retrofit not only our own products but also

Production site dispersal

Quality improvement andstabilization

Our retrofitting of all manufacturers’ machine tools

products and a full lineup of the technologies needed

can be traced back to the 1970s. Until then, overseas

for retrofitting processes, including core technologies

manufacturers such as those of Germany and Swit-

specific to large machines, technologies for casting

zerland dominated when it came to large machine

major components at foundries, and plate working
and welding technologies.

Centralized management

AI-enabled analytics

tools. However, if just a single component of aMonitoring

Reflection of findings

machine failed, a replacement component had to be

Although the Swiss manufacturer of this machine,which can simultaneously process five products, hasdiscontinued production, we have rejuvenated themachine through retrofitting.

ordered from overseas, forcing the domestic factory

Integrated Report 2021

59

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Sustainability Management of SHIBAURA MACHINE

Environmental Load from Business Activities (Input and Output)

Environmental
initiatives

Environmental Data

Environmental Load from Business Activities

Environmental
Initiatives

Input and Output Graphs* Data for domestic Group companies only

We constantly gather and analyze data on environmental load from our business activities, including product development, manufacturing,and services, and vigorously pursue its reduction.
Input
Domestic
Utility power
City gas
LPG
Fuel oil
Kerosene
Service water
Solar power generation
Overseas
Electric power
LPG
Kerosene
Water

OutputThe SHIBAURA MACHINE Group’sbusiness activities

37,080,000 kWh
234 km3
24 t
420 kl147 kl
1,150,000 ㎥
51,000 kWh

Domestic
Chemical substances
BOD
SS
N-hex
Soot and dust
Nitrogen oxide
Sulfur oxide
Waste

Energy Consumption by Fiscal Year

Electricity Consumption by Fiscal Year(GJ)

(in 10,000 kWh)

800,000

42 t
1,188 kg
981 kg563 kg
14 kg
905 kg
188 kg2,401 t600,000

200,000

2,000

0

2016

2017

2018

2019

0

(FY)

2020

Overseas

2014

Domestic

2015

4,912

2016

5,177

2017

5,073

4,896

2018

2019

4,065

Chemical Substance Consumption by Fiscal Year(in 10,000 ㎥)

(t)

(t)

Energy consumption

Waste discharge

140

153

141

5,000

145
122

135

4,164

4,325
3,588

4,000

118

4,070

4,153

120

3,775

100

2,703

3,000

80

99.1 98.0
92.6
74.2

86.0

75.4
43.6

60

Overseas
9%

Domestic
91%

Overseas
9%432,187

Domestic
91%

Overseas2%

Overseas
5%

Domestic
95%

Overseas
11%

Domestic
89%

1,180,000 m3

kWh

44 t

Since ﬁscal 2015, we have estimated and calculated CO2 emissions from our entire supply chain in accordance with the guidelines of the2014 2015 2016 2017 2018 2019 2020

Domestic

0.07

0.06

1.6

2.9 5.1 kt

CATEGORY 2

2.0 1.7 kt

18.2 11.3 kt

CATEGORY 4

1.1 1.0 kt

CATEGORY 6

22.5 18.6 kt

Downstream

Scope 2
(Electricity consumption)

CATEGORY 5

1.2 1.0 kt

0.0 0.0 kt

Business trips

797.3 790.0 kt

0.5 0.3 kt

Commutation of
employees

Scope 1
(Fuel consumption)

153.4 91.5 kt

25.5 21.4 kt-CO2

1.05

0.95

0.89

0.80

0.4
0.3

0.6

0.01

0

0.28

0.22

0.19

0.1

0.2
(FY)

0.27 0.26

0.2

0.4

0.00
2014 2015 2016 2017 2018 2019 2020

0.49

0.5

0.90

0.8

0.02

0.58

0.6

2014 2015 2016 2017 2018 2019 2020

0

(FY)

2014 2015 2016 2017 2018 2019 2020

(FY)

CATEGORY 9

CATEGORY 11
Use of soldproducts

3.0 2.8 kt

CATEGORY 7

0.7

1.31

Scope 3

Transportation, delivery(downstream)

Waste frombusiness activities

Transportation,delivery (upstream)
3.0 1.4 kt

CATEGORY 3

0

1.15

1.0

0.03 0.03

0.02

Fuel / energyrelated activities

Capital goods

1.2

0.03

0.01

Scope 3

1.4

0.05

(FY)

Overseas

(t)

0.04

SHIBAURA MACHINE
Group

2014 2015 2016 2017 2018 2019 2020

Domestic

(t)

0.05

Purchased goods
and services

0

(FY)

Overseas(t)

Results for Fiscal 2020

Upstream2014 2015 2016 2017 2018 2019 2020

Domestic

Sulfur Oxide Discharge by Fiscal Year**1 Basic guidelines regarding the calculation of greenhouse effect gas emissions from the entire supply chain*2 Out of the 15 categories, categories 8, 10, 13, 14, and 15 are not applicable to our line of business.

CATEGORY 1(FY)Overseas

20

Nitrogen Oxide Discharge by Fiscal Year*0.06

125.0 70.0 kt

0Soot and Dust Discharge by Fiscal Year*

Ministry of the Environment.*1, *2

Results for Fiscal 2019

40

1,000

2,703 tEnvironmental Load from the Entire Supply Chain

2,000

60

0

40,650,000

GJ

Domestic
98%

(FY)

2020

Overseas

Waste Discharge by Fiscal Year

120

Chemical substance consumption

2015

5,147

Service Water Consumption by Fiscal Year

Environmental Load from Domestic and Overseas Plants
Service water consumption

2014

5,671

2t
302 t

180

Electricity consumption

6,000

432,187

4,000

Domestic
Chemical substances
Waste

548,132 521,949 549,648 536,762 516,033

400,000

Overseas3,570,000 kWh
16 t
29 kl
30,000 ㎥

8,000

604,734

CATEGORY 12
Disposal of soldproducts

797.8 790.3 kt

BOD Discharge by Fiscal Year*

SS Discharge by Fiscal Year*N-hex Discharge by Fiscal Year*

(t)

(t)

(t)

2.0
1.5

1.54

1.76

2.5

1.46

2.0

1.13 1.21 1.11 1.19

1.5

1.0
0.5
0

2.21

2014 2015 2016 2017 2018 2019 2020

(FY)

1.52

1.0

2.01

0.8

1.49 1.45 1.46

0.6

0.98

1.0

0.4

0.5

0.2

0

2014 2015 2016 2017 2018 2019 2020

(FY)

0

0.61

0.72

0.79

0.68
0.56

0.61

0.56

2014 2015 2016 2017 2018 2019 2020

(FY)

976.7 903.2 kt

60

Integrated Report 2021

Integrated Report 2021

61

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Sustainability Management of SHIBAURA MACHINE

Corporate GovernanceCorporate Governance System

General Meeting of Shareholders
Appoint / Dismiss

Appoint / Dismiss

Report / State opinions

Basic Approacha specific Code of Conduct with the aim of complementing theCommittee members, we have instituted the Nomination Advisory

Corporate Principles and ensuring that the Group conducts busi-

and Remuneration Advisory committees. Moreover, we operate anness activities in compliance with statutory laws and regulations,executive officer system to separate the management andsocial norms, and sound corporate ethics. Further, all employees

execution of business, clarify management responsibilities, andare fully informed about the Code of Conduct to establish it as a set

increase the efficiency and speed of management decision-making

of standards shared Groupwide. Based on the Corporate Principles

and business execution. In addition, directors who are Audit andand the Code of Conduct, the Company has built a highly transpar-

Supervisory Committee members coordinate with the accounting

ent corporate governance system. Specifically, we have establishedauditor and the Internal Auditing Department to monitor business

an appropriate internal control system that reflects ourmanagement.

Appoint / Dismiss /Supervise

Audit /
Supervise

Chairman of the Board
President (Chief Executive
Officer)

Instruct

Nomination Advisory Committee
Remuneration Advisory Committee

Cooperate

Corporate Auditing
Department
Conduct
internal audit

ReportCooperate
Support

Audit and Supervisory
Committee Office
Auditof the remuneration of directors who are not Audit and Supervisory

Reply

Reportthis commitment, the SHIBAURA MACHINE Group has established

Consult

Audit

transparency and fairness of the nomination of directors as well as

Reportmaximizing value for our customers around the world. Based on

Supervise

Appoint /Dismiss

Fundamental Policy on Internal Controls. Further, to heighten the

Board of Auditors

Supervise

In accordance with our Corporate Principles, we will contribute to

Accounting Auditor

Cooperate

Audit

Board ofDirectors

Appoint / Dismiss

Instract / Direct

Executive Officers
Instruct

ReportBusiness / Staff Divisions
Business / Staff Divisions Led by Affiliates
Instruct

ReportAffiliates (Japanese Partner Firms / Overseas Offices)

Corporate Governance System
To ensure effective corporate governance, we have adopted a

In addition, seven outside directors, who constitute a majority on“company with committees” governance structure that includes an

the Board of Directors, utilize their expertise and business experi-

Audit and Supervisory Committee. Three Audit and Supervisoryence to ensure the rationality of the Company’s decision-making

Committee members, of whom two are outside members and one

and enhance the supervision of directors’ execution of duties.

is a full-time member, coordinate with the Internal Auditing Depart-

Further, the executive officer system clearly separates management

ment, which conducts day-to-day audits of internal operations;oversight from business execution, thereby accelerating andattend the Management Strategy Meeting, the Management Meet-

increasing the efficiency of decision-making.

Outside Directors and Composition of the Board of Directors

OutsideFiscal3

Inside7

Outside7

2017

Inside5

Fiscal

2020(Including two outside directors
who are Audit and Supervisory
Committee members)ing, and other important meetings; and state opinions as required.

1 Board of Directors
The Company’s Board of Directors comprises nine directors (excluding directors who are

3 Audit and Supervisory Committee (Progress of Measures to Strengthen

Audit Functions)Audit and Supervisory Committee members), of whom five are outside directors, and three

The Company’s Audit and Supervisory Committee has three members, of whom two are

directors who are Audit and Supervisory Committee members, of whom two are outside

outside directors and one is a full-time member. By attending meetings of the Board of

directors. As well as regular monthly meetings of the Board of Directors, extraordinary Board

Directors and other important meetings, Audit and Supervisory Committee members, who

meetings are convened as required. In addition to deliberating, making decisions, andhave voting rights, are able to audit and supervise the execution of duties by directors. In

reporting on the stipulations of statutory laws and regulations and the Company’s Articles ofIncorporation as well as important business matters, the Board of Directors develops theinternal control system and ensures its effectiveness. Furthermore, the Company has

4 Internal Auditing Department

designated the seven aforementioned outside directors as independent officers.

The Internal Auditing Department verifies the legality and appropriateness of business

Position

Nomination Advisory
Committee

Remuneration Advisory
Committee○○

Chairman

Shigetomo Sakamoto

President, Chief Executive Officer,
Chief Operating Officer

addition, the Audit and Supervisory Committee coordinates with the accounting auditor

Akiyoshi Kobayashi

Director, Executive Operating Officer

and the Internal Auditing Department to audit business management.

Hiroaki Ota

Director, Chief Financial Officer, Executive Operating Officer

Kiyoshi Sato

Outside Director(Chair)Seigo Iwasaki

Outside Director

Hiroshi Inoue

Outside Director○

Kazumine Terawaki

Outside Director

Chisa Hayakawa

Outside Director

Hiroshi Takahashi

Director(Full-Time Audit and Supervisory Committee Member)Yutaka Usami

Outside Director (Audit and Supervisory Committee Member)

Akifumi Imamura

Outside Director (Audit and Supervisory Committee Member)Also, the Nomination Advisory and Remuneration Advisory committees have been

activities, reports audit results to the representative directors, and provides guidance if
there are any matters requiring improvement. Further, the Internal Auditing Department

matters concerning the Company’s directors and other important personnel matters, while thecomprises 12 members and is under the direct control of the representative directors.

latter deliberates on the remuneration of the Company’s directors, excluding directors who are

The Internal Auditing Department shares information with the Audit and Supervisory

Audit and Supervisory Committee members, with both committees reporting their findings to

Committee and the accounting auditor in a timely manner, submits reports to the Audit andthe Board of Directors. Further, both of these committees are chaired by outside directors.

Supervisory Committee as required, and promotes mutual coordination with the committee.

2 Management Strategy and Management Meetings

5 Accounting Auditor and Lawyer

The Management Strategy and Management meetings are both held monthly to deliber-

The Company has engaged Ernst & Young ShinNihon LLC to conduct fair, appropriateate, report on, and determine management policies and strategies as well as to deliberate,accounting audits. In addition, the Company receives timely advice from a consulting

make decisions, and report on important matters related to business execution.

lawyer when legal decisions are required.

Integrated Report 2021

Name
Yukio Iimura

established as advisory committees to the Board of Directors. The former deliberates on

62

Compositions of the Nomination Advisory and Remuneration Advisory Committees

○

○

○

(Chair)○○Integrated Report 2021

63

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Sustainability Management of SHIBAURA MACHINE

Policy on the Appointment of Directors

Compensation of Directors

At present, the Company’s Board of Directors comprises nine direc-

range of experts as outside directors, including individuals withtors (maximum of 12 directors), excluding directors who are Audit

extensive experience in corporate management, attorneys withand Supervisory Committee members, and three directors who areexpertise in compliance and corporate legal affairs, a certified

Audit and Supervisory Committee members (maximum of five

public accountant with expertise in financial accounting, anddirectors). Seven of the directors are outside directors, and two of

specialists in investor relations.

the outside directors are Audit and Supervisory Committee

In addition, the Company has established the Nomination

members.

Advisory Committee, which is chaired by an outside director, in

To ensure sound, sustainable growth while increasing the com-principle, and the majority of its members are outside directors.

petitiveness of its businesses, the Company has sought a balanceThis committee deliberates on the appointment of directors andof knowledge, experience, and ability in the overall composition ofreports its findings to the Board of Directors.

the Board of Directors. Accordingly, the Company has appointed a asic Policies in Relation to the Stock CompensaBtion Planequivalent to the figure that results from dividing said monetarycompensation claims by a price. This price is determined by the

The stock compensation plan provides stock compensation to

Board of Directors based on the closing price of the Company’s

eligible directors—namely, directors other than outside directors or

shares of common stock at the Tokyo Stock Exchange on the

directors who are Audit and Supervisory Committee members—tobusiness day preceding the day of the resolution of the Board ofincrease the linkage between the compensation of eligible directors

Directors but within a scope avoiding prices that are unduly

and the medium- to long-term performance of the Company andfavorable to eligible directors. If trading was not conducted on the

promote a shared interest among eligible directors and shareholders,preceding day, the closing price of the most recent business day iswith the aim of providing an incentive to achieve the performanceused. With respect to the issuance and disposal of shares of thetargets of the medium-term management plan, the Management

common stock of the Company, the Company and eligible directors

Reform Plan, and sustainably enhance corporate value. The basic

conclude a service-based restricted stock award agreement.

policies in relation to the stock compensation plan are as follows.

(2) Performance-Based Restricted Stock
The performance evaluation period of performance-based

Reasons for the Appointment of Outside Directors
Years ofServiceName

Kiyoshi Sato

Seigo Iwasaki

Hiroshi Inoue

Kazumine Terawaki

Chisa Hayakawa

Yutaka Usami(Audit and Supervisory
Committee Member)

Akifumi Imamura(Audit and Supervisory
Committee Member)

OutsideOutsideOutsideOutsideOutsideOutsideOutsideIndependent

Independent

Independent

Independent

Independent

Independent

Independent

4

3

2

2

1

2

New
appointment

Attendance at Board of
Directors’ Meetings

Reasons for Appointment

15 of 16 (94%)

Kiyoshi Sato’s character and expertise are impressive. He has been appointed as an outside director and an independent officer based on the
expectation that he will ensure duties are being executed appropriately byutilizing the extensive experience and expertise he has gained by serving
as an officer for other companies, including executive positions in businesses overseas.

16 of 16 (100%)

Seigo Iwasaki’s character and expertise are impressive. He has been appointed as an outside director and an independent officer based on the
expectation that he will ensure duties are being executed appropriately byutilizing the extensive experience and expertise he has gained by serving
as an officer for other companies.

16 of 16 (100%)

Hiroshi Inoue’s character and expertise are impressive. He has been appointed as an outside director and an independent officer based on the
expectation that he will ensure duties are being executed appropriately byutilizing the extensive experience and expertise he has gained by serving
as an officer for other companies.

16 of 16 (100%)

Kazumine Terawaki’s character and expertise are impressive. He has been
appointed as an outside director and an independent officer based on the
expectation that he will ensure duties are being executed appropriately byutilizing the extensive experience and expertise he has gained by serving
as an attorney and as an outside officer for other companies.

13 of 13 (100%)

Chisa Hayakawa’s character and expertise are impressive. She has been appointed as an outside director and an independent officer based on the expectation that she will ensure duties are being executed appropriately by utilizing
the extensive experience and expertise she has gained through performanceof a wide range of operations in her capacity as a certified tax accountant anda securities analyst.

16 of 16 (100%)

Not applicable

Yutaka Usami’s character and expertise are impressive. He has been appointed as an outside director who is an Audit and Supervisory Committee
member and an independent officer because it is anticipated that he will
perform such roles as providing a broad range of audit-related opinions
that reflect the extensive experience and expertise he has gained by serving as a certified public accountant, a certified tax accountant, and an outside officer for other companies.
Akifumi Imamura’s character and expertise are impressive. He has been
appointed as an outside director who is an Audit and Supervisory Committee member and an independent officer because it is anticipated that hewill perform such roles as providing a broad range of audit-related opinions
that reflect the extensive experience and expertise he has gained by serving as an attorney and as an outside officer for other companies.

the performance evaluation period, monetary compensation claims
are granted to eligible directors based on the multiplication of twovalues: the compensation amounts established for the positions ofeligible directors and the degrees of achievement in relation to
performance indicators predetermined by the Board of Directors.

(3) To ensure that directors share with shareholders the benefits and risks of share pricefluctuations, the proportion of stock compensation shall be increased, and directors
shall be encouraged to hold more shares.

All said monetary compensation claims are required to be contributed in kind to the Company as property contributed in kind.

Outside directors: To ensure their independence, all outside directors receive basic
compensation but do not receive performance-linked compensation.

Restricted stock is granted based on the number of shares equivalent to the figure that results from dividing said monetary compen-

Directors who are Audit and Supervisory Committee members: Such directors only
receive basic compensation given their role, which primarily entails conducting legal
compliance audits.

sation claims by a price. This price is determined by the Board of
Directors based on the closing price of the Company’s shares ofcommon stock at the Tokyo Stock Exchange on the business day

Details of the Stock Compensation Plan

preceding the day of the resolution of the Board of Directors but(1) Service-Based Restricted Stockwithin a scope avoiding prices that are unduly favorable to eligible

The issuance and disposal of shares of the common stock of thedirectors. If trading was not conducted on the preceding day, theCompany is conducted every year, in principle, through service-closing price of the most recent business day is used. The issuancebased restricted stock. Monetary compensation claims are grantedand disposal of shares of the common stock of the Company is

to eligible directors based on resolutions of the Company’s Board

conducted, in principle, after the end of the last fiscal year of theof Directors. All said monetary compensation claims are required toperformance evaluation period. With respect to the issuance andbe contributed in kind to the Company as property contributed indisposal of these shares, the Company and eligible directors

kind. Restricted stock is granted based on the number of sharesconclude a performance-based restricted stock award agreement.

Compensation of Directors in Fiscal 2020
Total Compensation by Type (¥ Million)

Total
Compensation(¥ Million)

Basic­Compensation

Bonuses

Performance-Based
Restricted Stock
Compensation

Service-Based
Restricted Stock
Compensation

Directors(Persons)

Directors (excluding Audit and Supervisory Committee
Members)

165

143

—

—

22

10
(5)

(Of Whom, Outside Directors)

(48)

(48)

(—)

(—)

(—)

Directors (Audit and Supervisory Committee Members)

37

37

—

—

—

3

(Of Whom, Outside Directors)

(19)

(19)

(—)

(—)

(—)

(2)

203

180

—

—

22

13

(67)

(67)

(—)

(—)

(—)

(7)

Total

Integrated Report 2021

which is stipulated by the Company’s the Board of Directors. After(2) A strong incentive to achieve performance targets shall be established by linking theCompany’s medium-term management plan with stock compensation.

(Of Whom, Outside Directors)

64

restricted stock is the medium-term management plan’s period,(1) W ith a view to increasing corporate value over the medium to long term by transforming into a highly profitable company and sustaining growth, the Company shall provide
fixed compensation, in the form of basic compensation, as well as variable compensation that establishes a sound incentive through the combination in appropriate proportions of (i) stock-based compensation subject to continuous service, (ii) cash bonuses
linked to short-term performance, and (iii) stock compensation linked to medium- tolong-term performance.

Integrated Report 2021

65

E

S

G

Sustainability Management of SHIBAURA MACHINE

Effectiveness Evaluation of the Board of Directors
The Company conducts self-assessment and analysis of the effec-

Shares Held for Purposes Other Than Pure Investment
In April 2021, a questionnaire was issued to all directors who

We believe that cooperative relationships with a range of companies are

purposes other than pure investment by comprehensively considering

tiveness of the Board of Directors with the aim of improving its

comprised the Board of Directors at the time. The anonymity of theessential for the expansion and sustained development of our busi-

such factors as the purpose of holding shares, the benefits associatedfunctioning and, ultimately, enhancing corporate value.

responses was ensured by having them sent directly to an external

nesses. The Company’s policy is to hold shares that are deemed strate-with holding shares, risks, and cost of capital. As a result of such verifi-organization. Based on aggregated results reported by the external

gically necessary based on comprehensive consideration of importancecation, SHIBAURA MACHINE disposed of all shares of one company inorganization, analysis, discussion, and evaluation were conductedin terms of business strategy as well as business relationships withfiscal 2020. Also, in exercising our voting rights, we emphasize theat a meeting of the Board of Directors held in May 2021.

business partners from the perspective of corporate value enhance-

verification of each agenda item with respect to the investee’s enhance-

ment over the medium to long term. Annually, the Board of Directors

ment of corporate value over the medium to long term and its stance onverifies the appropriateness of holding individual shares held forshareholder returns, corporate governance, and social responsibility.

In light of advice from an external organization, self-evaluation
and analysis were conducted in the following manner.

A summary of the results of the aforementioned activities is as
stated below.

Results of Effectiveness Evaluation

Ongoing Tasks

We believe that the Board of Directors is effective on theOpinions provided included those to the effect that discus-

whole. Generally positive evaluations were received withsions on medium- to long-term strategies and measuresrespect to the number of members comprising the Board ofshould be promoted, further investor relations information

Internal Control System

Directors, the number of outside directors relative to insideshould be shared as appropriate to provide feedback in

Based on our Corporate Principles, we believe that establishing and operating a system for proper business execution is an important management responsibil-

directors, prior notification of the schedules and agenda items

response to dialogues with shareholders (investors), and more

ity. Accordingly, the Group has set out the Fundamental Policy on Internal Controls and established capabilities to ensure the appropriateness of operations.

of meetings of the Board of Directors, communication between

measures for enhancing discussions at Board of Directors’

Internal Controls

In addition, the internal control system is strengthened and enhanced by the Internal Auditing Department and corporate departments, which independently

inside directors and outside directors, understanding of

meetings should be taken. Improving the functions of the

conduct internal audits to confirm that internal controls are functioning properly.

agenda items in advance, coordination among outside direc-

Board of Directors even further and increasing the liveliness ofGovernance of the Grouptors or Audit and Supervisory Committee members and thediscussions were among other tasks identified.

The SHIBAURA MACHINE Group has established the SHIBAURA MACHINE Group Basic Governance Policy with the aim of maximizing corporate value by build-Internal Auditing Department, and the performance of supervi-

ing an appropriate internal control system for the Group, heightening the efficiency of Group management, and strengthening Group management capabilities

sory functions by outside directors.

while advancing the management of risks and compliance. In accordance with this policy, the governance of the Group is being strengthened and improved.

Management of Risk and Compliance
Going forward, the Board of Directors will continue enhancing its functions by thoroughly examining tasks with reference to the abovementioned effectiveness evaluation and expediting measures in accordance with findings.

To guide its daily business activities and to position human life, safety, legal compliance, adherence to social norms, and sound ethics as first priorities, the
SHIBAURA MACHINE Group has established its Corporate Principles and the Code of Conduct. In addition, we have set forth the Risk and Compliance Management Rules with a view to building, maintaining, and promoting a risk and compliance management system that actively controls risks inherent in businessactivities and ensures highly transparent business management.
Also, we have introduced systems that enable the collection of sensitive information on risks that would otherwise be challenging to report through regularchannels. For example, we have established a whistleblower system that Company employees, Group company employees, and temporary employees can use as

Policy on Training Directors

well as a supply chain whistleblower system for our business partners.

To enhance the knowledge and abilities of its directors and enable

newly appointed presidents. Further, we provide outside directors

them to fulfill their roles and functions, the Company implementswith opportunities to deepen their understanding of the Company’s

the following training programs. For newly appointed directors, webusiness, finances, and organization. In addition, training is pro-organize external training. We also organize external training forvided for directors as needed.

System for the Management of Risks and Compliance
The specific elements of the SHIBAURA MACHINE Group’s system for the management of risks and compliance are a risk management officer and the Risk
Management Committee, which meets regularly.
In the course of their daily management activities, in-house companies, centers, and corporate departments conduct prognostication, prevention, and selfinspection activities in relation to risks.

Abolition of Anti-Takeover Measures
Not applicable (The Company abolished its anti-takeover measures upon the conclusion of the 96th Ordinary General Meeting of
Shareholders, held on June 21, 2019.)

66

Integrated Report 2021

Integrated Report 2021

67

Corporate Governance

Board Members (As of June 21, 2021)

Chairman

Yukio Iimura

President, Chief Executive Officer
Chief Operating Officer

Shigetomo Sakamoto

Director and Executive Operating Officer
R&D Center General Manager, Security and Regulation Control Division
General Manager and Sagami Plant General Manager
In charge of Administration Division
In charge of System Strategy Division
Overall responsibility for quality assurance

Akiyoshi Kobayashi

Apr. 1980 Joined the Company
Oct. 2000	Injection Molding Machine Engineering Department
Senior Manager of the Company
Oct. 2004	Micro-Pattern Imprinting Device Division General
Manager of the Company
June 2006	Director of the Company
June 2008	Headquarters of Engineering Division General
Manager of the Company
June 2009	President of the Company
June 2013	President and Chief Executive Officer of the Company
Apr. 2017	Chairman (present position) and Chief Executive
Officer of the Company

Apr. 1983 Joined the Company
June 2006	Corporate Planning Division General Manager of theCompany
June 2009	Director of the Company
June 2010	Tokyo Head Office General Manager of the Company
Oct. 2010	Global Corporate Strategy Division General Managerof the Company
June 2013	Director and Managing Executive Officer, Component
Business Unit General Manager, and Corporate
Planning Division General Manager of the Company
June 2016	Representative Director and Executive Operating
Officer, Compliance Division General Manager,
Security and Regulation Control Division General
Manager, Corporate Strategic Planning Division
General Manager, Sagami Plant General Manager, and
RMO of the Company
Apr. 2017	Machine Tools Business Unit General Manager and
Gotemba Plant General Manager of the Company
June 2017	In charge of Corporate Strategic Planning Divisionand in charge of TQM Promotion Division of theCompany
June 2019 Vice President and Operating Officer of the Company
Feb. 2020	President and Chief Operating Officer of the Company(present position)
Apr. 2020	Security and Regulation Control Division General
Manager of the Company
June 2021	Chief Executive Officer of the Company (present
position)

Director, Chief Financial Officer
Executive Operating Officer
In charge of Corporate Strategic Planning Division

Outside Director

Outside Director

Kiyoshi Sato

Seigo Iwasaki

Apr. 1979	Joined Tokyo Electron Limited
Apr. 2003	Senior Executive, president’s office of Tokyo Electron
LimitedJune 2003	President and CEO of Tokyo Electron Limited
Apr. 2009	Vice Chairman of the Board of Tokyo Electron Limited
June 2011	Director of Tokyo Electron Limited
Chairman of Tokyo Electron America, Inc.
Chairman of Tokyo Electron Europe, Ltd.
Nov. 2013 President of TEL Solar AG
June 2016	Audit and Supervisory Board Member of Tokyo
Electron Yamanashi Limited
June 2017 Outside Director of the Company (present position)
June 2019	Outside Director of Mazda Motor Corporation(present position)
Outside Director of Inabata & Co., Ltd.
(present position)

Mar. 1969	Joined SHIZUOKA GAS Co., Ltd.
July 1988	General Planning Group Leader of SHIZUOKA GASCo., Ltd.
Mar. 1996	Director of SHIZUOKA GAS Co., Ltd.
Mar. 2000	Managing Director of SHIZUOKA GAS Co., Ltd.
Mar. 2001	Senior Managing Director of SHIZUOKA GAS Co., Ltd.
Mar. 2006	Representative Director and President of SHIZUOKAGAS Co., Ltd.
Jan. 2011	Representative Director and Chairman of SHIZUOKAGAS Co., Ltd.
May 2014	Outside Director of STAR MICRONICS CO., LTD.
(present position)
June 2015	Outside Director of Murakami Corporation (present
position)Jan. 2018	Director and Special Adviser of SHIZUOKA GAS Co.,Ltd.
June 2018	Outside Director of the Company (present position)
Mar. 2020	Special Adviser of SHIZUOKA GAS Co., Ltd. (present
position)

Apr. 1985	Joined the Company
Oct. 2004	Extrusion Machine Engineering Department Senior
Manager of the Company
June 2013	Extrusion Machine Division General Manager of theCompany
June 2014	Executive Officer, Advanced Machinery Business Unit
Deputy General Manager of the Company
June 2015	Director and Executive Officer, Advanced Machinery
Business Unit General Manager of the Company
June 2016	In charge of Control Systems Division of theCompany
Apr. 2017	Molding Machinery Business Unit General Manager,
Administration Division General Manager, and Sagami
Plant General Manager of the Company
June 2018	Director and Senior Managing Executive Officer,
Corporate Strategic Planning Division General
Manager, and Engineering and Quality Division
General Manager of the Company
June 2019	Director and Executive Operating Officer (present
position) and in charge of Control Systems Divisionof the Company
Feb. 2020	Compliance Division General Manager of the Company
Apr. 2020	R&D Center General Manager, Sagami Plant General
Manager, in charge of Administration Division, incharge of System Strategy Division of the Company(present position)
June 2021	Security and Regulation Control Division General
Manager of the Company (present position)

Hiroaki Ota
Apr. 1984	Joined Mitsui Bank (currently Sumitomo Mitsui
Banking Corporation)
Apr. 2001	Joined Daiwa Securities SMBC Co. Ltd. (currently
Daiwa Securities Co. Ltd.)
Feb. 2009	Joined GCA Savvian Corporation (currently GCA
Corporation)
Mar. 2014	Audit and Supervisory Board Member of Mezzanine
Corporation
Aug. 2014	Audit and Supervisory Board Member of GCA FAS
Co., Ltd.
Feb. 2015	CFO and Managing Director of GCA Savvian
Corporation (currently GCA Corporation)
Director of GCA Savvian Singapore Private Ltd.
Mar. 2015	Director, CFO and Managing Director of GCA Savvian
Corporation (currently GCA Corporation)
Apr. 2017	Managing Director of GCA Corporation
Apr. 2020	Executive Operating Officer of GCA Partners
Corporation
June 2020	Director of the Company
Aug. 2020	Director, Chief Financial Officer, Executive Operating
Officer, in charge of Corporate Strategic Planning
Division (present position)

68

Integrated Report 2021

Outside Director

Outside Director

Outside Director

Hiroshi Inoue

Kazumine Terawaki

Chisa Hayakawa

Apr. 1963 Joined Tokyo Broadcasting System, Inc.
June 1993 Director of Tokyo Broadcasting System, Inc.
June 1996	Managing Director of Tokyo Broadcasting System,Inc.
June 1997	Senior Managing Director of Tokyo
Broadcasting System, Inc.
June 2001	Vice President and Representative Director of Tokyo
Broadcasting System, Inc.
June 2002	President and Representative Director of Tokyo
Broadcasting System, Inc.
Oct. 2004	President and Representative Director of Tokyo
Broadcasting System Television, Inc.
June 2006	Outside Director of Tokyo Electron Limited
Apr. 2009	Chairman and Representative Director of Tokyo
Broadcasting System Holdings, Inc. (currently TBS
HOLDINGS, INC.)
Chairman and Representative Director of Tokyo
Broadcasting System Television, Inc.
Apr. 2012	President of The Japan Commercial
Broadcasters Association (general incorporated
association)
Apr. 2016	Honorary Chairman and Director of Tokyo Broadcasting System Holdings, Inc. (currently TBS HOLDINGS,
INC.)
Honorary Chairman and Director of Tokyo
Broadcasting System Television, Inc.
June 2018	Executive Advisor of Tokyo Broadcasting System
Television, Inc.
June 2019	Outside Director of the Company (present position)

Apr. 1980	Prosecutor of Tokyo District Public Prosecutors
OfficeJan. 2014	Director-General of Public Security Intelligence
AgencyJan. 2015	Superintending Prosecutor, Sendai High Prosecutors
OfficeSept. 2016	Superintending Prosecutor, Osaka High Prosecutors
OfficeApr. 2017	Retired from his post of Superintending Prosecutor,
Osaka High Prosecutors Office
June 2017	Lawyer registration (Tokyo Bar Association), joined
Satoshi Suzuki Law Office (present position)
Feb. 2018	Outside Corporate Auditor of Kewpie Corporation(present position)
June 2018	External Audit and Supervisory Board Member of The
Shoko Chukin Bank, Ltd. (present position)
June 2019	Outside Director of the Company (present position)
Outside Audit and Supervisory Board Member ofKajima Corporation (present position)

Apr. 1991 Joined Sanyo Securities Company Limited
Mar. 1998 Joined FANCL CORPORATION
July 2009 Joined Calbee, Inc.
Apr. 2011 Investor Relations Group Manager of Calbee, Inc.
Apr. 2013	Executive Officer (present position) and Investor
Relations Department General Manager ofCalbee, Inc.
Apr. 2014	Corporate Planning Department General Manager
and Investor Relations Department General Manager
of Calbee, Inc.
Apr. 2016	East Japan Sales Department Deputy General
Manager of Calbee, Inc.
Apr. 2017	East Japan Sales Department General Manager ofCalbee, Inc.
Apr. 2019	Financial & Accounting Department General Manager
of Calbee, Inc.
June 2020	Outside Director of the Company (present position)
Apr. 2021	Financial & Accounting Department General Manager
and Investor Relations Department General Manager
of Calbee, Inc. (present position)

Director (Full-Time Audit andSupervisory Committee Member)

Outside Director (Audit andSupervisory Committee Member)

Outside Director (Audit andSupervisory Committee Member)

Hiroshi Takahashi

Yutaka Usami

Akifumi Imamura

Apr. 1985 Joined the Company
June 2010 Finance Division General Manager of the Company
June 2013	Executive Officer and Planning Division Deputy
General Manager of the Company
June 2016	Corporate Strategic Planning Division Deputy General
Manager and Corporate Planning Department Senior
Manager of the Company
June 2017	Corporate Strategic Planning Division General
Manager of the Company
June 2018	Full-Time Audit and Supervisory Board Member of theCompany
June 2019	Director (Full-Time Audit and Supervisory Committee
Member) of the Company (present position)

Oct. 1984	Joined Tetsuzo Ota & Co. (currently Ernst & Young
ShinNihon LLC)
Aug. 1988	Registered as a Certified Public Accountant
Oct. 2006	Resigned as Representative Partner of ShinNihon &Co. (currently Ernst & Young ShinNihon LLC)
Nov. 2006	Established Management Power Exchange Ltd.
Representative Director (present position)
Jan. 2007	Established Usami Yutaka Certified Public
Accountant Office (present position)
June 2010	Established Usami Yutaka Certified Tax Accountant
Office (present position)
Sept. 2011	Outside Audit and Supervisory Board Member of
NISHIKAWA KEISOKU Co., LTD.
Apr. 2012	Auditor of National Graduate Institute for Policy
Studies
July 2012	Outside Auditor of PADECO Co., Ltd.
June 2014	Supervisory Officer of Tokio Marine Private Reit Inc.
(present position)
June 2015	Outside Audit and Supervisory Board Member of theCompany
Sept. 2015	Outside Director (Audit and Supervisory Committee
Member) of NISHIKAWA KEISOKU Co., LTD.
June 2019	Outside Director (Audit and Supervisory Committee
Member) of the Company (present position)
May 2020	Auditor (outside) of Chiyoda Co., Ltd. (present
position)
Sept. 2020	Supervisory Director of Industrial & Infrastructure
Fund Investment Corporation (present position)

Apr. 1982	Lawyer registration (DAIICHI TOKYO BAR
ASSOCIATION)
Apr. 1989 Partner Lawyer of Atago Law Office
May 2003	Partner Lawyer of Greenhill Law and Patent Office(present position)
Apr. 2005 Vice-President of DAIICHI TOKYO BAR ASSOCIATION
June 2005	Outside Audit and Supervisory Board Member of
JBCC Holdings Inc.
June 2011	Outside Audit and Supervisory Board Member of
Itoham Foods Inc.
Apr. 2016	Outside Audit and Supervisory Board Member of
ITOHAM YONEKYU HOLDINGS INC.
June 2016	Audit and Supervisory Committee Member /Outside Director of JBCC Holdings Inc.
(present position)
Mar. 2020	Outside Audit and Supervisory Board Member of
Otomo Logistics Service Co., Ltd. (present position)
June 2021	Outside Director (Audit and Supervisory Committee
Member) of the Company (present position)

Integrated Report 2021

69

Corporate Governance

Messages from the Outside Directors

Given its world-class technological capabilities,

other topics at meetings of the Board of Directors.

SHIBAURA MACHINE has the capacity to solve a

Including many highly experienced outside directors,

range of issues related to the SDGs. Therefore, aBoard meetings are a forum for unrestricted discus-feature of the Company’s business management issions. In particular, recent meetings have seenthat there are many issues related to economic

heated discussions on measures aimed at further

security that need to be kept in mind. Based on mygrowing the Company, and I am glad to be able toexperience as a legal expert, I provide opinions notplay a part in such discussions.

only on compliance but also on a wide range ofKazumine Terawaki
Outside Director

The four years since the Company left the Toshiba

Reform Plan, which represents a commitment to

SHIBAURA MACHINE is a company that has solid

The details of this dialogue are regularly reported toGroup have passed quickly. To fulfill its role as anshareholders. Convened remotely, the Nomination

technological capabilities, customizes products, andthe Board of Directors.

independently listed company, SHIBAURA MACHINE

Advisory Committee is conducting useful exchanges

advances manufacturing to meet society’s current

Going forward, I hope that SHIBAURA MACHINE

must strengthen governance. The entire Company isof opinion as appropriate. In societyneeds. Furthermore, the Company is very sincere inwill earn proper evaluations of management strate-

making a concerted effort to transform its systems.

at large, new ESG-related indicators and regulations

its approach to investor relations activities andgies from the market by increasing and enhancing

Despite the difficult conditions caused by theare being issued one after another. I would like toendeavors to meet the expectations of the stock

the disclosure of financial and non-financial infor-

COVID-19 pandemic, monthly meetings of the Board

help SHIBAURA MACHINE use this trend as an oppor-

market. Senior management’s high level of involve-

mation and grow corporate value even further bytunity to build itself into an even better company.

ment in investor relations activities and proactive

engaging in high-quality dialogue with investors.

of Directors are monitoring progress under the

Kiyoshi Satostance on dialogue with investors are praiseworthy.

medium-term management plan, the Management

Chisa Hayakawa

Outside Director

Outside Director

SHIBAURA MACHINE is in a period of great change.

I will make use of experience gained from

My work as an outside director began with thepreconditions for such reporting, namely, the accu-

In response to the need to transform governancemanagement reforms implemented at my own

observation of a manufacturing site where largeracy of orders, contract management, inventory

from that of a group company to that of an indepen-

company to advance the initiatives of SHIBAURA

machines that I had never seen before were being

control, and collection management. Also, in discus-

dent company as well as the need to change from a

MACHINE's medium-term management plan. Also,

assembled from scratch. SHIBAURA MACHINE is ansions of quality, cost, and delivery, I will keep abusiness unit system organized around products to

I will support the Company’s measures for theearnest company. As a listed Company, however, itwatchful eye on “time,” which is not easily reflecteda system that can adapt to changes in the market

decarbonization of society by drawing on mymust generate sufficient profits. From the stand-in financial figures, by using as leading indicators

environment, the Company has formulated thebackground in the energy sector.

point of a certified public accountant, I would like tothe expediting of decision-making, the shortening ofManagement Reform Plan, which is aimed at funda-

The Remuneration Advisory Committee, which

pay close attention not only to the appropriatedelivery times, and inventory turnover periods.

mentally enhancing corporate value. The progress

I chair, will consider compensation of directors thattoward reorganization and the achievement of profit

appropriately reflects the progress in reforming

Seigo Iwasaki

reporting of sales and profits but also to the

management.

Outside Director

targets are reported at each meeting of the Board of

Yutaka Usami
Outside Director (Audit andSupervisory Committee Member)

Directors and monitored by outside directors.

As I was engaged in the broadcasting industry, I do

Hiroshi Inoue
Outside Director

70Integrated Report 2021

Although Japan has advanced technological

not have any knowledge of the manufacture ofcapabilities in many industries, the global economic

machines and equipment. However, I believe thatenvironment is changing drastically with the rise ofgarnering widespread appreciation of a company’s

developing nations. Companies’ need to invest incapabilities and differentiating features from societyequipment for decarbonization will present

is good for business. SHIBAURA MACHINE is cer-

SHIBAURA MACHINE with more business opportuni-

tainly outstanding technologically, but I am not sureties. I would like the Company’s technological excel-

if business results have directly reflected thislence to gain the kind of recognition from society

competence.

that translates into business results.

In June 2021, I was appointed as an outside director

serve as public institutions by, for example, address-

who is an Audit and Supervisory Committee

ing the SDGs. Utilizing my experience as an attorney,

member. When I was a substitute Audit and Supervi-

as a corporate auditor at other companies, and assory Committee member, I was given a plant tour

the external contact of a whistleblower system, I will

and was able to see firsthand the company’s excel-

do my utmost to assist SHIBAURA MACHINE inlent technologies and wonderful products. In today’s

fulfilling this role and becoming a company that hassociety, while companies must of course fulfill thewell-developed governance and is even morebasic objective of securing profits, they must also

focused on compliance.

Akifumi Imamura
Outside Director (Audit andSupervisory Committee Member)

Integrated Report 2021

71

Corporate Data

10-Year Financial Data (Consolidated)
Management Performance

Net Sales
Gross profit
Gross profit / sales (%)
Operating profit
Operating profit / sales (%)
Ordinary profit
Ordinary profit / sales (%)
Net profit (loss) in this term attributable toparent company shareholders
Net profit (loss) in this term attributable toparent company shareholders / sales (%)
Amount of orders received

Unit: millions of yen

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

119,550
31,239
26.1
7,442
6.2
8,948
7.5

120,899
33,605
27.8
8,078
6.7
9,823
8.1

113,062
31,581
27.9
4,625
4.1
6,501
5.7

124,373
33,639
27.0
4,788
3.8
6,542
5.3

117,259
32,254
27.5
3,806
3.2
4,966
4.2

111,327
31,977
28.7
4,473
4.0
5,406
4.9

116,862
33,150
28.4
4,640
4.0
6,982
6.0

117,405
32,912
28.0
3,834
3.3
5,573
4.7

116,761
33,459
28.7
3,529
3.0
3,825
3.3

92,63524,904
26.9
381
0.4
872
0.9

6,721

7,891

4,444

4,312

4,806

1,776

5,016

4,079

7,338

(2,898)

5.6

6.5

3.9

3.5

4.1

1.6

4.3

3.5

6.3

(3.1)

123,075

112,081120,221

124,754

120,021117,021

128,139

134,501

94,224

88,619142,297
71,101
50.0
18,210142,239
79,39955.8
16,859148,680
84,217
56.6
16,596

159,549
93,66958.7
17,213

156,346
93,345
59.7
16,909138,373
77,12055.7
14,890148,763
81,334
54.7
14,390150,724
83,19755.2
14,390154,283
87,01856.4
14,390134,296
82,152
61.2
14,390

0.87
4.9
9.9

0.85
5.5
10.5

0.78
3.1
5.4

0.81
2.8
4.8

0.74
3.0
5.1

0.76
1.2
2.1

0.81
3.5
6.3

0.78
2.7
5.0

0.77
4.8
8.6

0.64
(2.0)
(3.4)

368

7,435

3,024

(457)

2,781

9,948

6,813

(2,176)

5,312

192

(947)

(2,195)(1,509)(1,281)

2,252(2,983)(3,921)(1,493)

19,772(1,537)(578)(1,094)34,1895,239(3,003)38,327

1,515(1,684)
41,279(1,739)(774)
40,2085,034(1,761)42,932

6,965(19,089)
30,0602,892(2,102)30,798(3,669)(1,785)25,59225,085(1,964)48,011(1,344)(4,956)42,41752,653
10,92552,707
3,264
119,550
56.0

46,304
17,45654,476
2,661
120,899
61.7

46,87019,25544,3352,600
113,062
58.5

51,891
22,77847,084
2,618
124,373
58.3

53,07820,75441,0902,336
117,25954.7

47,811
19,993
41,5391,983
111,327
57.1

46,356
18,49050,496
1,518
116,86260.3

49,29818,99846,142
2,964
117,405
58.0

55,393
14,91345,043
1,410
116,76152.6

40,85014,841
36,070872
92,635
55.9

Amount of capital investment
Ratio of amount of capital investment to
net sales (%)
Depreciation
Ratio of depreciation to net sales (%)

1,052

769

1,766

2,193

1,547

1,335

4,687

1,195

1,741

1,799

0.9

0.6

1.6

1.8

1.3

1.2

4.0

1.0

1.5

1.9

2,275
1.9

2,065
1.7

1,840
1.6

1,965
1.6

1,756
1.5

1,730
1.6

2,049
1.8

1,868
1.6

1,781
1.5

1,755
1.9

Research and development costsRatio of research and development costs to
net sales (%)

1,581

1,566

1,551

1,663

1,668

1,648

1,899

1,835

2,378

2,218

1.3

1.3

1.4

1.3

1.4

1.5

1.6

1.6

2.0

2.4

1,368
20.4%

1,368
17.3%

1,140
25.7%

1,216
28.2%

1,824
38.0%

1,636
101.1%

1,689
33.7%

1,810
44.4%

2,051
28.0%

4,810
－

Financial Position

Total assets
Net worth
Net worth ratio (%)
Interest-bearing debt

Important Financial Indicators

Total asset turnover (number of turnovers)
Return on assets (ROA, %)Return on equity (ROE, %)Cash FlowsNet cash provided by operating activities	Net cash provided by (used in)investing activities
Free cash flow
Net cash used in financing activities
Cash and cash equivalents at end of year

Net Sales by Region

Japan
North America
Asia Pacific
OthersTotal sales
Overseas sales ratio (%)

Amount of Capital Investment, Depreciation,
Research and Development Costs

Shareholder Returns

Total amount of dividends
Dividend payout ratio

Unit: yen

Per Share InformationNumber of shares* outstanding at end of period(thousand shares) excluding treasury stocks
Net income per share
Dividend per share

152,033

152,032

152,029

152,025

152,021

120,690

120,682

24,13624,13524,146

44.21
9.0

51.91
9.0

29.23
7.5

28.36
8.0

31.61
12.0

11.87
12.0

41.57
14.0

169.0345.0

304.0685.0(120.05)
199.3

Note: As royalty income was changed from recognition in other income to recognition in net sales in fiscal 2013, the figures for fiscal 2011 and fiscal 2012 have been retroactively adjusted.
* The Company executed a one-for-five consolidation of shares of common stock effective from October 1, 2018.

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73

Corporate Data

Domestic Offices and Plants ( Branches

Corporate Information (As of March 31, 2021)
Company NameSHIBAURA MACHINE CO., LTD.
TOKYO HEADQUARTERS

Headquarters

2-2, Uchisaiwaicho 2-Chome, Chiyoda-ku, Tokyo 100-8503, Japan
TEL: 81-(0)3-3509-0200
FAX: 81-(0)3-3509-0333

NUMAZU HEADQUARTERS 2068-3, Ooka, Numazu-shi, Shizuoka-ken, 410-8510, Japan
TEL: 81-(0)55-926-5141
FAX: 81-(0)55-925-6501

Date of Establishment

Founded December 1938
Established March 1949

Capital¥12,484 million

Number of Employees

Consolidated: 3,081 (Non-Consolidated: 1,654)

TOHOKU
BRANCH

2-11-2, Yaotome, Izumi-ku, Sendai-shi, Miyagi-ken 981-3112, Japan

CHUBU
BRANCH5-307, Kamiyashiro, Meito-ku, Nagoya-shi, Aichi-ken 465-0025, JapanKANSAIBRANCH

11F, Mainichi-Intecio Bldg., 3-4-5, Umeda, Kita-ku, Osaka-shi, Osaka
530-0001, Japan

KYUSHU
BRANCH

2-3-23 FMT Enokida Bldg., Hakata-ku, Fukuoka-shi, Fukuoka-ken
812-0004, Japan

TAKASAKI
OFFICE48 Tukasawa Bldg., Takasago-cho, Takasaki-shi, Gunma-ken
370-0047, Japan

HAMAMATSU
OFFICE

5-6-25, Takaokahigashi, Naka-ku, Hamamatsu-shi, Shizuoka-ken
433-8117, Japan

HIROSHIMAOFFICE

5-17-5 Midorii, Asaminami-ku, Hiroshima-shi, Hiroshima-ken
731-0103, Japan

ONOMICHIOFFICE

4778-1 Takasu-cho, Onomichi-shi, Hiroshima-ken 729-0141, Japan

NUMAZU
PLANT

2068-3, Ooka, Numazu-shi, Shizuoka-ken 410-8510, JapanSAGAMI
PLANT

4-29-1, Hibarigaoka, Zama-shi, Kanagawa-ken 252-0003, JapanGOTEMBA
PLANT

1-120, Komakado, Gotemba-shi, Shizuoka-ken 412-0038, Japan

Overseas Offices ( Sales Offices
East Asia

Stock-Related Information(As of March 31, 2021)

Business Offices

Manufacturing Offices)

6104

Stock listing:Tokyo Stock Exchange

SHIBAURA MACHINE TAIWAN CO., LTD. (TAIWAN)

Shareholder registryadministrator:

Sumitomo Mitsui Trust Bank, Limited

Minimum trading unit

100
72,000,000

Aggregate number ofoutstanding sharesissued:29,977,106 (including treasury stock:
5,831,373)

Number of shareholders: 13,710 (increase of 4,638 persons fromthe end of the previous fiscal year)

Individuals and others(including treasury shares)

5.10 %

Aggregate number ofauthorized shares:

Southeast Asia

40.19 %

25.96 %

26.29 %NUMAZU PLANT
HAMAMATSU OFFICEONOMICHI OFFICEHIROSHIMA OFFICESHIBAURA MACHINE UK LTD. (U.K.)

1,528,473 shares
737,184 shares

Note: Treasury shares are included.

SHIBAURA MACHINE(SHENZHEN) CO., LTD.
(CHINA)

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,237

9.27

Custody Bank of Japan, Ltd. (Trust Account)

1,697

7.03

BBH FOR GLOBAL X ROBOTICS AND ARTIFICIAL INTELLIGENCE ETF

677

2.81

Toshiba Corporation

667

2.77

Shizuoka Bank, Ltd.

596

2.47

Shibaura Machine Employee Stock Ownership Association

549

2.28

Shibaura Machine Suppliers’ Stock Ownership Association

539

2.23

Sumitomo Mitsui Banking Corporation

536

2.22

BNYM AS AGT / CLTS NON TREATY JASDEC

505

2.09

JPMBL RE UBS AG LONDON BRANCH COLL EQUITY

475

1.97

 HIBAURA MACHINES(SHANGHAI) CO., LTD. (CHINA)SHIBAURA MACHINEVIETNAM COMPANY
LIMITED (VIETNAM)

Europe andAmericaSHIBAURA MACHINE COMPANY, AMERICA (U.S.)SHIBAURA MACHINESINGAPORE PTE. LTD.
(SINGAPORE)

SHIBAURA MACHINE MEXICO, S.A. DE C.V. (MEXICO)SHIBAURA MACHINE DO BRASIL COMERCIO DE MAQUINAS LTDA.
(BRASIL)SHIBAURA MACHINE
INDIA PRIVATE LIMITED(INDIA)SHIBAURA MACHINE(THAILAND) CO., LTD.
(THAILAND)SHIBAURA MACHINEMANUFACTURING(THAILAND) CO.,LTD. (THAILAND)

Major Shareholders (As of March 31, 2021)
Percentage of shares held (%)

SHIBAURA MACHINECOMPANY, AMERICA(U.S.)SHIBAURA MACHINETAIWAN CO., LTD.
(TAIWAN)SHIBAURA MACHINE INDIA PRIVATE LIMITED (INDIA)SHIBAURA MACHINE EUROPE S.R.L. (ITALY)

Number of shares held
(thousands of shares)

 HANGHAI SHIBAURASMACHINE CO., LTD. (CHINA)SHIBAURA MACHINE (THAILAND) CO., LTD. (THAILAND)SHIBAURA MACHINE UK LTD. (U.K.)

Major shareholders

SHIBAURA MACHINEMEXICO, S.A. DE C.V.
(MEXICO)SHIBAURA MACHINE EUROPE S.R.L. (ITALY)SHIBAURA MACHINE MANUFACTURING (THAILAND) CO., LTD.
(THAILAND)

7,781,637 shares

Securities companies


GOTEMBA PLANTSHIBAURA MACHINE VIETNAM COMPANY LIMITED (VIETNAM)

7,881,977 shares

Other Japanese companies


SAGAMI PLANT

PT. SHIBAURA MACHINE INDONESIA (INDONESIA)

Foreign institutions and individuals


KANSAI BRANCHSHIBAURA MACHINE SINGAPORE PTE. LTD. (SINGAPORE)

12,047,835 sharesFinancial institutions

As of March 31,
2021

TOHOKU BRANCHCHUBU BRANCHSHIBAURA MACHINE (SHENZHEN) CO., LTD. (CHINA)

Distribution of Shares by Shareholder Type2.46 %TAKASAKI OFFICEKYUSHU BRANCHSHANGHAI SHIBAURA MACHINE CO., LTD. (CHINA)SHIBAURA MACHINE (SHANGHAI) CO., LTD. (CHINA)

Stock ticker code:

Plants)PT.
SHIBAURA
MACHINEINDONESIA(INDONESIA)SHIBAURA MACHINE DO
BRASIL COMERCIO DE
MAQUINAS LTDA.
(BRASIL)

Visit Our Website

Top Pagehttps://www.shibaura-machine.co.jp/en/

Investor Relations
https://www.shibaura-machine.co.jp/en/ir/

Sustainability
https://www.shibaura-machine.co.jp/en/sustainability/

Note 1: Although SHIBAURA MACHINE holds 5,831,373 treasury shares, it is not included in above list of major shareholders.
Note 2: The percentage of shares held is calculated after deducting treasury shares.

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Integrated Report 2021

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