Integrated
Report2022
For the Fiscal Year Ended March 31, 2022

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/

SM22036-PDF-ED

Contents

SHIBAURA MACHINE Story
02

Our Starting Point

04

SHIBAURA MACHINE’s Value Creation06

Our History

08

Strengths Honed Over More Than 80 Years

10

Value Creation Process

12

 HIBAURA MACHINE Products
S—Supporting Manufacturing

Sustainability Management of
SHIBAURA MACHINE38

 ustainability Management of
S
SHIBAURA MACHINE

40

Human Resource Strategy

44

Environment

48

Corporate Governance

54 Board Members
56 Messages from the Outside Directors

Messages from Management
14

A Message from the Chairman

16

A Message from the PresidentManagement Strategy

Management Strategy by Company
58

Metal & Plastics Industrial Machine Company

60

Machine Tools Company

62

Control Systems Company

22

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

26

 ew SHIBAURA MACHINEN
Long-Term Vision 2030

64

Financial and Non-Financial Highlights

66

10-Year Financial Data (Consolidated)

30

A Message from the CFO

68

Corporate Information

Corporate Data

Special Feature
Our Strengths—Continuing to Support Key Industries
32

 ight Technological Platforms Developing andE
Manufacturing an Array of Advanced
Industrial Equipment

34

High-Precision Machine Tools

36

 ocial Issues Addressed byS
SHIBAURA MACHINE

Editorial Policy
We have published Integrated Report 2022 to help a wide range of stakeholders better understand our initiatives aimed at the long-term, sustained
enhancement of corporate value. The report has been compiled with an emphasis on factors that are particularly important for corporate value creation,
including management strategies and environmental, social, and governance initiatives. Also, we have referred to the Integrated Reporting Frameworkof the International Financial Reporting Standards (IFRS) Foundation and the Ministry of Economy, Trade and Industry’s Guidance for Collaborative
Value Creation.

The HRS-500 master gear hobbing machine, completed in 1953

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

Integrated Report 2022

01

SHIBAURA MACHINE STORYOur Starting Point

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

Since
Founder

Kametaro
Fujishima

19 38

without fear of change.
02

Brief history
Founder of SHIBAURA MACHINE, born in 1886
After joining Shibaura Engineering Works Co., helped establish and became president of Shibaura Machine Tool Co., the predecessor of SHIBAURA MACHINE
Established the foundations of SHIBAURA MACHINE by rolling out numerous state-of-the-art machine tools, including mastergear hobbing machines

Our founder Kametaro Fujishima embarked on an ambitious initiative that led directly to thecorporate culture we subsequently developed.

02

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

Contributing to society by helping to create infrastructure
We take pride in our involvement in the industrial base and beneﬁting
society everywhere.

In 1913, prior to the Company’s founding, Japan’s first turbine

hobbing machine, whose main operation was milling the mastership became stranded off the coast of South America. The acci-

gears of hobbing machines for ship reduction gears. From thenDeveloping human resources for the next generation

dent was caused by the ship’s imperfectly manufactured reduc-on, we relentlessly pursued ever-higher levels of precision. As a

We will continue to nurture people who are responsible, take pride in their work, andtion gears. When the high speed rotation of the steam turbine

result, the seventh iteration of the master worm wheel achieved

develop their skills.

was reduced to match the rotational speed of the screw, the load

the world’s highest precision with a maximum cumulative pitchconcentrated on one tooth, which broke as a consequence.

deviation of four thousandths of a millimeter. Even today, thisUpon learning that the poor quality of the gears was the cause,level of precision remains unsurpassed anywhere in the world.

Fujishima resolved to contribute to the development of Japan’s

Large hobbing machines equipped with high-precision worm

shipbuilding industry by making the world’s best machine tools

wheels manufactured by the HRS-500 master gear hobbing

for the manufacture of reduction gears. The decision reflected

machine have been used for milling the large reduction gears of

his understanding of how crucial the development of shipping

numerous ship turbines. In 2009, HRS-500 was certified as partwas to Japan as an island nation.

of Japan’s Mechanical Engineering Heritage by the Japan Soci-In 1938, SHIBAURA MACHINE was founded with the mission

ety of Mechanical Engineers. Since our first groundbreakingof achieving domestic production of machine tools, which Japan

achievements, a pioneering spirit that makes the “impossible”

had to import from Europe and the United States at the time.

possible through untiring research and effort has been inherited

Following an order issued by President Fujishima, in 1951 theby each and every one of our employees. Moreover, our mindset

Company launched a concerted effort to make the world’s mostis precisely what enables us to do what others cannot andprecise gears. In 1953, we completed the HRS-500 master gear

thereby solve an array of issues.

Integrated Report 2022

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

Integrated Report 2022

03

SHIBAURA MACHINE STORYSHIBAURA MACHINE’sValue Creation
About SHIBAURA MACHINE

Aspirations and Passion for Creation
We will continue to maintain our passion for benefiting key industries,
our underlying principle since our founding, and pursue both
solutions to social issues and enhancement of corporate value in the future.

04

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Integrated Report 2022

05

SHIBAURA MACHINE STORYO u r H i s to r y

SHIBAURA MACHINE
Always Benefiting Key Industries

Working in close partnership with customers, SHIBAURA MACHINE has provided them with solutions
that the Company is uniquely qualified to realize. Through the provision of machines for the manufacture of products that support society’s infrastructure, we have helped develop society and enrich day-today life.

Business Evolution
1930s to 1940s

Concentration on heavy industry andthe development of molding machine operations

A textile machine

The HRS-500 master gear
hobbing machine

As a company aligned with national policy, we manufactured
numerous large machine tools. In the post-war period, the textile industry helped drive the recovery of Japan’s economy.
Catering to this industry, we focused on applying core technologies for machine tools to the manufacture of such textile
machinery as raw nylon yarn manufacturing equipment andspinning machines.

19 3 0Machine tools

A 65mm single screw extrusion
machineDemand for large machine tools recovered due to the flowering ofheavy industry. We supported the shipbuilding industry by completing the first domestically produced master gear hobbing
machine. Further, our efforts to meet customer needs through theuse of technical competence established for machine tools
resulted in the development of a series of molding machinesthat now form the basis of our core businesses.

19 4 019 5 0197 0

Moldings

1946

19 8 01987

RIM bumper mold

1982

1977

TOSNUC transferred from
Toshiba Corporation

Electronic controls

19 9 01945

Artificial silk production
machineExtrusion machines
Injection molding machines
Die casting machines

1955

Primary fiber processing
machineSecondary fiber­processing machine06

Integrated Report 2022

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

2005

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

Injection molding machine
controller INJECTVISOR-V70
completed

2011

1996

Compact cartesian coordinate
robot BA-C compact arm
completed

SCARA robot business transferredfrom Toshiba Corporation

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

2018

Injection molding machine
controller INJECTVISOR-V21
completed

2001

1956

1981

1998

1953

1982

First injection molding
machine (preplasticating
method) completed

2014

High-precision coating unit
(CR) developed

Extra-large injection­molding machine IS5000DN
completedJapan’s first hydraulic die
casting machine completed

2022

SCARA robot
THE 1000
completed

2000

Magnesium hot chamber die
casting machine DHM-300
completed2016

All-electric injection molding machine
EC280SXII - EC550SXII completed

2007

U-series hydraulic control
valve completed

Hybrid swing systemdevelopment started

Electron beam drawing machine
EBM-100/105H developed

1945

1972

Offset rotary press completed

Sheet-fed offset printing
machine produced

1966

Draft beer automatic fixed
quantity dispensing machinecompleted2018

All-electric injection molding
machine EC-SXIII series
completed2020

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

1987

1977

Ultra-high-torque twin-screw
extruder TEM-37SX
completed2014

Hybrid die casting machine
DEC150MT developed

Technology partnership for hydraulic equipment

2018

High cost performancetwin-screw extruder
TEM-58SSG completed

Electric injection molding machine
EC series developed

1963

Food machinery

2020

Double column type
machining center
MPJ-2640M completed

Linear motor
drive completed

Magnetic tape production
machine (coater) completed

Semiconductor
manufacturing equipment
Printing presses

2020–FUTURE

2014

2003

1980

Utilization of digitaltransformation

1960

First plastic extrusion
machine model completed

Hydraulic equipment

2 010

1993

1979

1952

20 0 0High-precision flat polygon mirror generator
UFG-200P completed

Our plant in Thailand

We strengthened our global supply chain through the establishment of plants in India andThailand. By capitalizing on our technological prowess and digital transformation, we will
convert to businesses focused on providing high-value-added combinations of products
and services that solve the issues of key industries.

High-precision optical glass
High-precision opticalmold press machine and micro- glass mold press machine
GMP-211 developed
pattern imprinting machine

Industrial robots

Textile machinery

Our plant in India

High-speed double column type die-sinking
machine MPF-2140B completedExpanded to radiator-grill mold andautomotive mold businessHigh precision machine tools

Our plant in China

1994

1968

Plastic mold completed

Strengthening of the global supply chain andconversion to businesses that combine products and services

In response to an economic recession, we advanced selection and concentration anddivested our food machinery and offset rotary press businesses. Meanwhile, theCompany strengthened its molding machine business and established a production
base in China. We also created a new business by combining ultra-precision machine
tool technologies and molding technologies.

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

1956

Mold production started

A micro-pattern imprinting
machine1970

5-m master gear hobbing machine completed

Machine tool production started

An electric injection molding
machineDuring an era of global economic turmoil caused by the oilshocks and other factors, the Company established a numberof local subsidiaries in major overseas markets. Thanks to rigorous marketing, sales, and service capabilities, overseas
sales increased.

1953

1938

From processing to molding and the creationof new businesses

Our subsidiary in Singapore

19 6 0

Toward a society interconnected by advanced
technologies

Collapse of Japan’s asset-inflated bubble economy, global economic downturn triggered by
the bankruptcy of Lehman Brothers, and the beginning of a low-growth era

Active forays into overseas markets

Our U.S. subsidiary2010s to present

1990s to 2000s

Overcoming recession to
expand overseas

High economic growth

Development of large machine tools andconcentration on the textile industry

A double column type planingmachine1970s to 1980s

1950s to 1960s

From military demand to postwar
reconstruction

Electric clamping die castingmachine DC1300R-E completed

2015

Transfer of stocks

2020

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

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07

SHIBAURA MACHINE STORY
S t r e n g t h s H o n e d O v e r M o r e T h a n 8 0 Ye a r s

We have accumulated unique strengths
through a consistent corporate stancedating back to the philosophy of
our founder.

Technological Capabilities

Technological
Capabilities力

SHIBAURA MACHINE has always placed the utmost importance on its technologicalcapabilities and the engineers who underpin them. Also, by building the equipment
needed—even if the equipment is the first of its kind—and delivering a wide variety ofcustomized products, we have accumulated technological capabilities in many different
fields. This innovation-focused process has led to the formation of eight technologicalplatforms. Based on these platforms, we are developing and manufacturing advanced
machines across a broad range of industries. In evolving a business model thatcombines products and services, our technological capabilities will be a major asset.

Strength

By combining and establishing reciprocal relationships among strengths honed over many years,
SHIBAURA MACHINE has provided values that only it can realize. We will continue enhancing thesecapabilities to unleash even greater potential.

Eight
Technological
Platforms
For details, please see P.32

Technological
Capabilities

Solution
Capabilities

Customer
Relationships

Customer
Relationships

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3

4

Realizing one-stepadvanced accuracy

Supporting diversiﬁed
application ﬁelds

Integrative

Maximizing machine
performance

Professional
manufacturing,assembly, andmeasuring technologies

Designing technologies
for processing andmolding machinery

Customizing
technology

Material
technology

5

6

7

8

Optimized for eachmachine group

Supporting high precision

Based on understanding oftarget material

Using heat, light,
and vacuumControl,mechatronics, andIoT technology

Slide and rotation

Molding technology
originated from moldNano-processing
technology

Solution
Capabilities

The Company has been able to resolve a variety of issues by providing solutions that
it is uniquely qualified to realize, alongside leveraging strong relationships with customers. As companies continue transforming their business models to addresssocial issues, technological needs are expected to increase. We will realize solutions
by detecting social trends more quickly, identifying new issues, and finding countermeasures and by leveraging the expertise and technological capabilities that ourbusinesses have garnered. Taking advantage of our strength as a solutions provider,we will work with customers to help address social issues, thereby remaining an entitywith an important role to play in the creation of a new society.

Customer Relationships
Strength

08

2

Solution Capabilities
Strength

Strengths

1

Although rarely used directly by consumers, the machines that we produce are used
to solve our customers’ issues, which in turn helps to address social issues. We havedeveloped long-term relationships of trust with customers during the process of providing them with large customized machines with relatively long life cycles and in collab­
orating closely with customers to realize products suited to particular needs. Goingforward, the long-term relationships of trust we have built with customers throughintensive collaboration will give us an advantage as we transform our business model.

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09

SHIBAURA MACHINE STORY
Va l u e C r e a t i o n P ro c e s sContinuing 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 will continue 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, High-precision
machine tools, Industrial robots, Control systems

Human
CapitalCombinations 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

Addressing social
issuesContributing to the SDGs

Technological
Capabilities
Manufactured
CapitalIssue detection

Strengths

Solution
Capabilities

Customer
Relationships

Resolution ofcustomer issues

Examples of industries to which we contribute
Automotive, Rechargeable battery, Renewable energy,
Smartphone, Food packaging materials,

Social and
Relationship
CapitalHigh-speed rail, Aircraft

Deeper relationships withcustomers and know-how
accumulation

NaturalCapital1 Realizing GHG*-reduced products,

3 Improving efficiency of and spreading

2 Realizing resource-saving and4 Improving performance of and

1 Realizing robots that can symbiotically

3 Upgrading and spreading

2 Realizing autonomous production lines

4 Upgrading and spreading

1 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

Financial
Capital01 Issue detection

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 that04 Deeper relationships with customers and know-

Adding intangible value to products through self-improvement
and utilization of internal and external resources

Improving satisfaction of customers to deepen relationships with them and accumulate know-how that leads tothe creation of new value

leverage technological capabilities

how accumulationnovel functions

communications (5G / 6G)energy creation

Climate change andresource scarcity

spreading energy storage devices

water purification technologies

Rapid urbanization andchanges in population structures

sterilization technologies

technologies

Advancements in technology

devices* greenhouse gas

10Integrated Report 2022

Integrated Report 2022

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SHIBAURA MACHINE STORYS H I B A U R A M AC H I N E P ro d u c t s — S u p p o r t i n g M a n u f a c t u r i n g

SHIBAURA MACHINE Products—
Supporting Manufacturing

Smartphone Industry

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

 apacitor film /C
Oriented p­ olypropylene film

102

For details, please visit the product information section of our website.
3Plastic film for LCD panel
Retardation film, Polarizing film

1
4

Automotive Industry

1

8Engine

11 12

2

1

10

12 13
14 15

1

2

5

4

6
2

1

9

7

3

1

4

6

5

7
5

2

6

Roll mold for optical sheet andoptical film

Body

Engine head cover
Intake manifold

9

Oil pan

10 Engine block
11 Battery case

Oil separator
2 Head cover
3 Valve body
4 Water pump bracket
5 Oil pump bracket
6 Front case
7 Rack housing
8 Transmission case112

 eparator film for battery
SFuel cell material for­electric vehicle

Turbo impeller
Crank shaft
3 Clutch housing
4 Engine block mold
1

1

11 11 Lamp cover

1

2

Cowl louver
Sunroof3 Door glass
4 Rear fender5 Rocker molding
6 Over fender
7 Bumper
8 Door trim
9 Pillar
10 Rear garnish

12 12 Led diffusion lens2

2

13 13 Headlight lens
14 14 Headlight reflector
15 15 Clearance lamp

Side mirror housing
Brake caliper
3 Headlight case
4 Steering body
5 Seat frame
6 Wheel
7 Sub frameLamp coverTire
3 Interior decoration material­elastomer sheet
4 Forming sheet
Door trim mold
Frame mold3 Bumper mold4 Wheel5 Constant velocity universal joint
6 Copper plate

1

1

2

2

Interior
2
2

1

1
1

1

Mold for LCD light guide plate

2

3

8

7

2

3

3

LED light source

4

15 11

4

1

3

2

13 14
1

6

 roduction line of AutomaticPscrew tightening system

4

1

5

2

Mold for magnesium housing9https://www.shibaura-machine.co.jp/en/product/

11

Mold for plastic housing

1

1

2

SwitchDashboard
3 Console box

2 CD, OLED display materials
LPrinted board

1

Instrument panel mold

2
1

1
2

Car navigation system
Head-up display

Energy Industries

Food-Related Industries

Separator film for lithium-ion
secondary batteries
Backsheet and sealing material
for solar cells eat-resistant tableware made ofH
plant-based resin

For tube plate of the heatexchanger, boiler
For rotation part of the wind millPlastic sheet for food packaging

Steering wheal

13Injection Molding Machines

Die Casting Machines

Extrusion Machines

Machine Tools

High-Precision Machine Tools

Electronic Controls

These machines mold plastic by injecting heatedmolten plastic into metal molds, which is thencooled and hardened.

These machines cast products by applying highpressure to molten aluminum and magnesium andinjecting it into molds.

These machines form plastic by extruding heatedmolten plastic through extrusion ports and thencooling it through the use of air or water. Depending on the shape of the extrusion ports, the plastic
is formed into sheets or hose shapes.

These machines mainly cut and grind metal workpieces into the required shapes. They are also
called mother machines because they are indispensable in the manufacture of machines.

As types of machine tools, our high-precision
machine tools are suitable for cutting and grinding
optical and medical components that call for­ultra-high-precision nanometer-level processing.

Our industrial robots include horizontal multi-­
articulated (SCARA), cartesian coordinate,­painting, and vertical multi-articulated robots.
SHIBAURA MACHINE’s electronic controls areused in a diverse range of equipment and include
servo systems, FA controllers, and linear motors.

12

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Integrated Report 2022

13

Messages fromManagement

Balancing Enhancement and Exploration

A Message from the Chairman

The SHIBAURA MACHINE Group has taken various measures to

as lithium-ion battery separator film production lines, has taken

strengthen its corporate governance, including the establishment

more than 20 years. After many years of obscurity, theseof a Board of Directors in which independent outside directors

machines are finally seeing the light of day. The production line

constitute a majority. As we formerly belonged to a large conglom-

for the injection molding machines is now being operated at full

erate, the external perspective-based opinions and recommenda-

capacity by our subsidiary SHIBAURA MACHINE INDIA PRIVATE

tions of our outside directors have been especially valuable to us

LIMITED in India, where domestic demand is growing amid popu-

in the steady implementation of the Management Reform Plan.

lation growth and rising income levels. A long time was required

Meanwhile, I provide a different perspective from those of the out-

before the subsidiary was able to contribute to the Group’s profits.

side directors as I was involved in management execution as theAfter acquiring the injection molding machine operations of achief executive officer, but have transitioned to monitoring andlocal manufacturer in 2012, we developed local management,

supervising management execution since June 2021.

built relationships of trust, and transferred technology from Japan.

Since the postwar period, SHIBAURA MACHINE has consis-

Yukio Iimura
Chairman

We have a responsibility to transform our profitability and fur-tently enhanced the performance and quality of existing products

ther improve existing businesses by advancing the Management

while exploring potential new products and realizing innovation

Reform Plan. On the other hand, focusing too much on suchthrough the combination of existing technologies and products.

enhancement and only pursuing near-term profits would jeopar-

Precisely because we conduct management in this “ambidextrous”

dize the future of SHIBAURA MACHINE. As someone who is wellmanner—which in recent years has been highlighted as an ability

versed in the inner workings of management, my responsibility is

all companies should possess—we have been able to continue

to encourage the creation of a corporate entity that constantly

contributing to the development of key industries in each era.

renews businesses and plants the seeds of future businesses bySince the beginning of this century, finding a balance between
enhancement and exploration has been of at most importance.

devoting the same amount of energy to ambitious long-term exploration initiatives as it devotes to enhancement-focused initiatives.

For example, the exploration and commercialization of extrusion
machines for lithium-ion battery separator film, often referred toWith our sights set on our 2030 target profile,
we will take on the challenge of innovation.
Becoming an Even More Resilient Company
Given the turmoil in the world at present, companies must be

reap the rewards of our reform efforts. At the moment, however,highly adaptable and resilient when faced with risk actualization.

our reforms are still underway. In particular, reforms will not be

Drivers of this turmoil include a struggle against the COVID-19

complete until we resolve the issues that underly inefficiency,

pandemic with seemingly no end in sight, a shortage of semicon-such as the long manufacturing cycles of large special purpose

ductors, inflation fueled by soaring resource prices and excess

machines, which are our forte; reworking; and an imbalanceliquidity, and further acceleration of geopolitical fragmentation

between development costs and production volume.

due to the conflict between Russia and Ukraine.
Although we are facing changes in the business environment

14

As a matter of urgency, we must create a database of business processes, establish a shared business process architec-that differ significantly from the assumptions made when theture that transcends organizational boundaries, and realize

Management Reform Plan was announced in February 2020,“SHIBAURA DX (digital transformation),” which can simulate

we have been able to minimize the impact of these unforeseen

99.7% of all processes in virtual space through the use of digitalchanges through the introduction of an in-house company

twins. Once we have established highly dynamic capabilities thatsystem and other management reforms. In fiscal 2022, ending

allow the realization of profits from inaugural machines—even if

March 31, 2023, we will make further progress to improve ourthey are special-purpose machines—we will be a truly resilient

profit structure, and, beginning from fiscal 2023, we will graduallycompany that readily adapts to volatility.

Integrated Report 2022

Meeting Modern Corporate Management Responsibilities

At our annual welcome ceremony in April, when I see bright-eyedinnovations that help the global manufacturing industry adapt to18-year-old employees who have just graduated high school,

megatrends. To realize this ideal role, we will increase our focus on

I always have the same thought. Corporate managers bear thethe future and step up exploration-based initiatives. In this way, byextremely weighty responsibility of creating a stable place where

fulfilling a fundamental corporate commitment to helping key indus-

these employees can improve their standard of living, have families,

tries overcome challenges—which dates back to the philosophy

raise children, and lead happy lives, as many employees will work for

expounded by our founder in 1938—we will achieve sustained

SHIBAURA MACHINE for more than 50 years until retirement. Someenhancement of corporate value.

see shareholder capitalism and stakeholder capitalism as opposing
concepts. However, I believe that this opposition vanishes if one

In closing, I would like to ask our shareholders, investors, and allother stakeholders for their continued support.

conducts business management based on a longer time frame. In
other words, in fulfilling their long-term responsibility to sharehold-August 2022

ers as the owners of companies, today’s corporate managers must
equally meet responsibilities to local communities, the global environment, and the employees whose lifestyles will be influenced bysuch companies for more than 50 years.
New SHIBAURA MACHINE Long-Term Vision 2030 sets out anideal role for the Group, calling on it to address social issues andenhance corporate value through outstanding technological

Chairman

Integrated Report 2022

15

Messages fromManagement

A Message from the President
We are fully committed to accomplishing the Management Reform Planso that we can take our next step forward and continue contributing to
the manufacturing operations of key industries.

Conversion of Social Change into Opportunity
In February 2020, SHIBAURA MACHINE announced the Manage-

society. Although energy security concerns have led to a tempo-

ment Reform Plan, which ends in fiscal 2023. Around the samerary return to fossil fuels, a medium- to long-term trend toward

time, the COVID-19 pandemic emerged in earnest, and the two

decarbonization has begun unfolding and is unlikely to be

and a half years since have seen the pandemic cycle throughreversed. In fact, thanks to the rapid growth of the electric vehicle

phases of containment and resurgence. In February 2022, Russia

market, demand for our extrusion machines for lithium-ion bat-

invaded Ukraine, and the global economy has been shaken bytery separator film, is burgeoning. On the other hand, this demandfurther hikes in resource prices and disruptions in the supply

will not last forever. Eventually the market will mature, and tech-chains of semiconductors and other commodities. Althoughnological innovation is likely to form new markets. A good exam-

these unforeseen events have forced us to take short-term

ple of this process is the emergence of all-solid-state batteries,

emergency measures, our medium- to long-term direction

which promise to become a means of energy storage in theremains unchanged.

coming generation. For these products, we have another technol-

As Japan’s economy transitioned through periods of highgrowth and stable growth to reach maturity, companies introduced new manufacturing equipment that enabled low-cost,

ogy at our disposal, which is distinct from lithium-ion battery separator film production lines.
SHIBAURA MACHINE is not just a machine tool manufacturer,

high-quality production in step with the changing needs ofnor is it an extrusion machine manufacturer or an injection mold-society and people. To cater to this evolving social demand,ing machine manufacturer. We want to remain a manufacturing

SHIBAURA MACHINE has provided products in a growing number

equipment supplier that continues contributing to key industries’of fields since its founding in 1938. After beginning with the man-

manufacturing capabilities as they evolve with the times. For thisufacture of machine tools, we moved on to produce injection

reason, we must maintain and advance our technologies andmolding machines, die casting machines, extrusion machines,

expertise. However, as long as we are a listed company, we will

high-­precision machine tools, industrial robots, and electronic

not be able to earn endorsement for such efforts if our busi-

control systems.

nesses continue at record low or negative profitability. To main-

As for the future, society is sure to change drastically, and aseries of new markets will emerge. Just as we have in the past,tain and continue developing our technologies, we must
accomplish the Management Reform Plan.

we will see a significant increase in opportunities for us to benefit

Management Reform Plan to Date

16

In realizing New SHIBAURA MACHINE Long-Term Vision 2030,

in R&D and human resources. The Management Reform Plan, ourwhich provides a road map for seizing the opportunities arising

medium-term management plan covering the period throughfrom megatrends, we have to build a profit structure that estab-fiscal 2023, focuses on profits and decisive reform of our low-

lishes a virtuous cycle of stable profit generation and investment

profit structure. The plan’s fiscal 2023 quantitative targets are

Integrated Report 2022

Shigetomo
Sakamoto
President
Chief Executive Officer
Chief Operating Officer

Integrated Report 2022

17

system—which was premised on the steady growth that eachprofitability. The benefits of reorganizing overseas bases sup-factors that could potentially place downward pressure on earn-business achieved in previous eras—had begun to weigh heavily

ported our performance in fiscal 2021. For example, the consoli-

ings. As in fiscal 2021, we will continue to give first priority toon profitability amid softening market growth and increased

dation of general purpose products improved the capacity

meeting our supply responsibilities, and the Production Center will

uncertainty. We reorganized seven business units into the Molding

utilization and profitability of our plants in Thailand.

lead all-out efforts to source components and materials. At theMachine, Machine Tool, and Control System in-house com­panies.
At the same time, we consolidated overlapping R&D and procurement functions to establish the R&D Center and the Production
Center, which oversees production and procurement. In conjunction with this reorganization, we lowered fixed costs through the

In fiscal 2022, we aim to achieve net sales of at least ¥120.0

same time, we will provide customers with detailed explanations

billion and operating income of ¥6.0 billion, which are the targets

and request higher selling prices. Needless to say, we will alsoof our medium-term management plan. We will move forward

forge ahead more vigorously than ever with productivity improve-

while diligently implementing countermeasures for a range of risk

ment based on the Management Reform Plan.

launch of a voluntary retirement program and the reassignmentof personnel. Also, we are reorganizing plants to consolidate
closely related machines, thereby creating technological synergies, improving design efficiency, and increasing the liquidity ofFurther Advancement of Reforms

fixed costs that are centered on human resources. We are in the
net sales of ¥135.0 billion, an operating margin of 8.0%, a divi-

process of consolidating molding machines at the Numazu Plant,

dend payout ratio of approximately 40.0%, and ROE of 8.5%.

machine tools at the Gotemba Plant, and control systems at the

For nearly 80 years, we belonged to the Toshiba Group andSagami Plant.

conducted business activities under the protection and gover-We have also relocated production to the most suitable

nance of certain major shareholders. This history has made ourregions in Japan and overseas. In China, India, and other parts

corporate culture and organization rigid and inward-looking. Ourof Asia, cost competitiveness will be required given the expected

low profitability is due more to these in-house factors and less toincrease in the volume of general-purpose products. With this insuch external factors as fiercer competition with companies frommind, we have established a strategy of shifting the production

China and other Asian countries or stagnation in the domesticof general-purpose products overseas while focusing on themarket. With more than five years having passed since our depar-­production of high-value-added products, such as large special-

ture from the Toshiba Group, we must fundamentally change

purpose machines and large machines, in Japan. Also, we con-an ingrained culture of inefficiency if we are to survive on oursolidated the production of selective compliance assembly robot

own. However, changing the ways we approach work, which havearm (SCARA) robots and small and medium-sized injection mold-become entrenched over our long history is not easy. Rather thaning machines in China, Thailand, and India.

communicating messages that appeal to employees’ emotions,

Other initiatives include the consolidation and elimination of

we are explaining logically what the changes mean and introduc-

small inefficient bases in Japan and overseas. In addition, we areing new systems without hesitation.

improving asset efficiency by utilizing part of the Sagami Plant

As a first step, we abolished a business unit system that hadsite to jointly commercialize a logistics facility through a busi-

been in place since the Company’s founding about 80 years ago

ness alliance with Mitsui Fudosan Co., Ltd. In fiscal 2021, theand replaced it with an in-house company system. We reorga-

aforementioned reforms began to produce concrete benefits.

nized because the vertically rigid structure of the business unit

impact of exchange rate fluctuations by pursuing the mass pro-system led by the Production Center, we have made progress induction of a limited variety of products, increasing the percentage

eliminating inefficiencies, which is the main focus of the Manage-of locally procured components and materials, and advancing

ment Reform Plan. However, we still have some way to go. In June

local production for local consumption. Among these overseas

2022, a new assembly line for high-precision machine tools started

efforts, we have particularly high expectations of India’s market.

up at the Gotemba Plant, which plans to improve profitability by

In 2012, SHIBAURA MACHINE acquired an injection molding

increasing sales to around ¥10.0 billion. Although the manage-

machine manufacturer in India and began local production. Since

ment of investment efficiency is on track with regard to such newthen, we have increased production several times, and our plant infacilities, considerable scope remains for eliminating wastefulIndia is currently operating at full capacity. The country is moving

work practices, which have built up over the years. For example,

into a phase of development where the working-age population is

we must advance the integration of injection molding machinesa rising percentage of the total population, and disposable income

and die casting machines not only with respect to manufacturing

is increasing. Given this demographic and economic change, sub-but also in development and sales. Also, the huge number of con-stantial growth is expected in the markets for automobiles, hometrol systems that we have accumulated over the course of busi-

appliances, medical equipment, construction materials, containers,

ness development has resulted in inefficiencies in terms ofand other products. Further, various global manufacturers aremaintaining components and expertise. In rectifying these ineffi-

expected to enter the market as a way of dispersing geopoliticalciencies, we will persevere with efforts to raise awareness of sales

risk. To capture this significant potential, we are ramping up the

per person and ROA among frontline personnel, efforts that can

production capacity of our plant in India. The start-up of a newalso be called a reform of our corporate culture.

plant in the second half of fiscal 2023, which will be capable of

At present, due to the ongoing depreciation of the yen andmanufacturing not only small but also medium-sized to large

soaring labor costs overseas, some products are seeing a reversal

hydraulic injection molding machines, will raise annual productionof the disparity in manufacturing costs between Japan and else-

capacity from the current level of 1,200 units to 3,200 units. With

where. Therefore, we must carefully allocate production so that we

demand for all-electric injection molding machines increasing inmaintain capacity utilization at overseas plants while realizing therelation to medical devices, general-purpose products, andhighly profitable domestic production that is currently possible.

Japanese automobiles, this market is expected to nearly triple in

However, we have no intention of changing our medium- to long-

size over the next 10 years, and we will cater to this demand by

in-house company is responsible for the maximization of profits

term strategy of producing standard equipment overseas and high-establishing a new plant. Our most important efforts to increase

orders rose in all business segments, production leveled off due

has become well established. Also, the visualization of businessvalue-added products in Japan. In China, Thailand, and India,

production will focus on lithium-ion battery separator film

to difficulties in procuring components. Further, our plant inmanagement has enabled a more accurate understanding of thewe will increase production efficiency, grow profits, and curb the

production lines.

Shanghai suspended operations, and logistics were disrupted.

effects of investments. As target industries and fields have been

Due to such factors, net sales fell short of an upwardly revised

clarified, rapid responses to changes have become possible.

forecast. On the other hand, operating income and the operating

The integration of the injection molding machine and die castingmargin were in line with targets thanks to reforms implemented

machine production departments has enabled us to transfer per-Concrete benefits are beginning to be produced by the reforms implemented so far.

to date, which absorbed cost-increasing factors.

sonnel to the lithium-ion battery separator film production lines

To complete these reforms, we will forge ahead even more vigorously.

Results of Fiscal 2021 Management Reforms
In fiscal 2021, both sales and profits were up year on year. WhileIn particular, the transition to an in-house company system
has proven very effective, and the system whereby each18

As I mentioned, through the establishment of an ideal production

Integrated Report 2022

—which continues to operate at full capacity—and to increase
production capacity. This reorganization has also improved

Integrated Report 2022

19

Lithium-ion Battery Separator Film Production Lines: Our Advantages

needs, and we sought added value and competitivenessbased on customization, performance, durability, and low cost.
In contrast, developing new businesses that combine products

Convened in October 2021, COP26 (the 26th session of the Con-

expected to begin in earnest.

ference of the Parties to the United Nations Framework Conven-

Worldwide, only about three manufacturers can supply lith-tion on Climate Change) issued a declaration: “Together, we will

ium-ion battery separator film production lines. However, high-work towards all sales of new cars and vans being zero emission

precision full-line engineering capabilities make SHIBAURA

globally by 2040, and by no later than 2035 in leading markets.”

MACHINE the only manufacturer able to supply customers withIn response, the shift to electric vehicles is accelerating in China,

entire production lines that extend from raw material supply

the world’s largest electric vehicle market, and in other major

through to take-up units. Against the backdrop of heightenedmarkets. As a result, our orders for lithium-ion battery separator

geopolitical risks and other factors, end-product manufacturers

film production lines have grown to ¥80.0 billion as of March 31,

are increasingly reshoring production and moving it in-house.

2022. Going forward, given that sales of this equipment are

We help such customers to shift production bases promptly andexpected to reach to ¥100.0 billion—which is equivalent to ourreliably by guaranteeing all processes through to the completion

consolidated sales—we will significantly strengthen our produc-of customer products. The leveraging of this differentiatingtion capacity by utilizing machine tool space and reassigning per-factor will ensure that we tap demand. That said, since excessive

sonnel under an organization dedicated to lithium-ion battery

dependence on lithium-ion battery separator film production lines

separator film production lines, which was established in the cur-could become a long-term risk, we will invest the earned capitalrent fiscal year. We expect demand to remain robust until aroundin the development of our future mainstays.

2030, when the commercialization of all-solid-state batteries isand services and thereby increase earnings opportunities andprofitability—a Companywide strategy set out in New SHIBAURA
MACHINE Long-Term Vision 2030—entails anticipating customer
issues and proactively proposing solutions based on productsthat are packaged with high-value-added services. As a platform
for creating new technologies, the R&D Center is leading efforts
to advance and prepare for the further evolution of “SHIBAURADX” that is aimed at developing new functionality and providing
new process-related services“SHIBAURA DX” is reforming our business model by focusing
on two goals. The first goal is to utilize digital twins to virtually
recreate and achieve 99.7% completion of all processes, from thetoward this second goal. These packages include planning-stage

definition of requirements, development, and design through toengineering services as well as after-sales services that predictproduction planning and prototype manufacturing and verifica-

the failure of operating machines. By introducing these services

tion processes. Our use of digital twins will enable customers to

to Japan and other countries and extending the scope of ser-shorten lead times and realize further improvements in perfor-

vices to encompass many different products and ultimately

mance and quality. For us, digital twins will dramatically improve

entire plants, we will transform from a business model that is

productivity by eliminating reworking, a perennial problem associ-focused on the stand-alone sale of products into a stock-based

ated with special-purpose machines. We hope to establish somebusiness model.

digital twin capabilities during the period of the current medium-

New SHIBAURA MACHINE Long-Term Vision 2030

term management plan.

In heightening added value through the aforementioned business model transformation, attracting and developing humanThe other main goal of “SHIBAURA DX” is to help realize

resources is essential. In particular, we must hire personnel withsmart factories by connecting equipment through a common

advanced professional skills to accelerate “SHIBAURA DX.” To

protocol, collecting operational data, and using AI for issue analy-

this end, we are strategically revamping our personnel system.

Under the Management Reform Plan, we have set out measures

range of issues. For example, the automotive industry is undergoingsis and diagnosis that avoids sudden production stoppages. The

In fiscal 2021, we introduced a job-based personnel system forthat will prepare for the realization of the next medium-term man-major structural changes, which are needed to enable the manufac-

packages of peripheral subscription services that we have begun

some management positions, and plan to introduce a similar

agement plan. Specifically, we will complete productivity improve-ture of connected, autonomous, shared, and electric (CASE) vehi-

rolling out for products in the United States are the first step

system for general employees in the current fiscal year.

ment measures. Then, with a lean profit structure firmly in placecles. Consequently, this industry is confronting many critical tasks,

and an eye on M&As, we will pursue profitable top-line growth. All

including energy storage and reduction in the weight and number ofof our initiatives will align with New SHIBAURA MACHINE Long-

components. We assist automakers by providing a wide range ofTerm Vision 2030, which establishes the overall direction of

products, such as die casting machines and large injection molding

growth by calling on us to address social issues and enhance cor-machines, both of which realize thin structural components andporate value through outstanding technological innovations thatmaterials for car bodies. Our SCARA robots and other industrial

help the global manufacturing industry adapt to megatrends.

robots also help mitigate labor shortages, which have become a

The significant opportunities that megatrends are producing forpressing social issue for the manufacturing industry. In addition,

SHIBAURA MACHINE are not limited to those resulting from thewe have a variety of products that save energy and resources indecarbonization trend I mentioned at the beginning of this message.

production processes.

A major wave of change is sweeping through virtually all key industries as they advance toward the achievement of the Sustainable
Development Goals, and we can help these industries solve a wide

P.36

Social Issues Addressed by SHIBAURA MACHINE

For many years, our industrial machinery operations focusedon contract development and production tailored to customer

Our Determination to Achieve Goals

Since changing our trade name to SHIBAURA MACHINE and setting out on a path of independence and self-reliance, we havesometimes received kind support and sometimes harsh criticism

As we continue reforms, I would like to ask our stakeholders
for their continued support and guidance.
August 2022

from our shareholders, investors, and other stakeholders. I
believe that such involvement and intensity on the part of
stakeholders will transform us into a robust corporate entity.
We understand that the numerical targets of the Management
Reform Plan may not seem exceptional when compared withthose of other companies. Nonetheless, the achievement of

We will help solve the array of issues faced by key industries as

President

these targets is a responsibility that we are extremely determined

Chief Executive Officer

to fulfill.

Chief Operating Officer

they undergo major transformations.

20

Integrated Report 2022

Integrated Report 2022

21

Management Strategy

Medium-Term Management Plan “Management Reform Plan”

Management Reform Plan

Results during the First Half of the Management Reform Plan (Fiscal 2020–Fiscal 2021)
Our management reform centered on reorganization, which included the introduction of an in-house company system as well as the estab-

The SHIBAURA MACHINE Group’s business environment is becoming increasingly uncertain due to thelishment of the R&D Center and the Production Center. This reorganization was accompanied by the realignment of domestic and overseas

COVID-19 pandemic, trade friction between the United States and China, and ongoing geopolitical risks.

production bases and the introduction of voluntary retirement. Also, we introduced a human resource system that enables diversified

To adapt to this business environment and transform into a new corporate group that prevails in the
coming era, we will continue implementing the Management Reform Plan, a medium-term management

employee compensation and career development as well as the utilization of diverse expert personnel. Moreover, we made management
reform and business management more visible.
Policyplan announced on February 4, 2020.
Production reform

Framework of “Management Reform Plan”
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 manage-

Sales reform

Progress in FY2020 and FY2021

 eorganization of domestic production system
R(Structuring according to the shift of theinternal company system)
Transfer of general purpose machine
production to overseas plants

Integration of manufacturing divisions of injection molding machinesand die casting machines
Transfer of production of small injection molding machines,
die casting machines, and SCARA robots to overseas plants⇒Improved profitability of overseas production plants
Reorganizationof sales process
Review of domestic offices and overseas offices

 peration commencement and stabilization of business activityOvisualization system (Monitoring of negotiation amounts and negotiation)
Closure of UK distributors

Construction of a new HR system pplication of the system for managers (Commenced in April 2021)
A
Application of the system for union members (Commenced in April 2022)

ment reforms centered on reorganization, invest in growth areas, and implement financial strategies designed to improve capital efficiency (ROE).

Quantitative targets

Sales

Target value for FY2023
Consolidated basis

Operating profit ratio¥135 billion yen

8.0%

Payout ratio

Prospect of 40%(During the period of“Management Reform Plan”)

HR system reform

ROE

P.40

Introduction of some elements of a JOB
based HR system

8.5%Management reform centered on reorganization(i)	Transition from a business unit system, stemming from which numerous inefficiencies arose, to an in-housecompany system and thereby realize overall optimization

Construction of a management account system
Automatic aggregation of management figures
Installation of a multiaxial analysis function

Visualization ofbusinessmanagement

 egan automated aggregation of management figures
BCompleted introduction of multifaceted analytic capabilities(ii)	Establish an R&D Center and Production Center for integrated Companywide enhancement of production efficiency,
quality, cost, and delivery

Specificmeasures(iii) Reassign personnel and launch a voluntary retirement program to optimize resource allocation and reduce fixed costs

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 futureManagement Reform Plan―Effects of Reform of the First Half (FY2020-FY2021)
Near-term procurement costs increased significantly due to shortages of procurement items—mainly semiconductors and electricalInvestment plan /Financial strategies

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 and capital efficiency

Management Reform Plan

Change of the external business environment
Factors that are newly introduced since the planning of the Management
Reform Plan (February 2020) due to the change of the business environment

Operating profit ratio: 8.0%
ROE: 8.5%(Billions of yen)

150.0

100.0

116.7
3.6
9.1

107.7

92.6

1.1
8.7
24.2

1.3
9.2
23.6

2.0
7.3
20.8

29.6

120.0

77.2

4.2

64.3

0.5
10.2
33.6
10.8

87.8

90.7

0

FY2019(Results)

FY2020(Results)

FY2021(Results)

Net sales (left axis):
Net sales of molding machines
Net sales of control systems
Net sales of others

FY2022(Forecast)

FY2023(Target)Integrated Report 2022

–5.0

Net sales of machine tools
Elimination
Operating profit (right axis)

Note: The net sales of respective segments include intersegment transactions.

22

5.0

0.3

0

–50.0

15.0

10.0

6.0

75.5
3.5

50.0

135.0

Positive

Negative✓ Stepped-up pace of vehicle
introduction → Increase inorders for lithium-ion battery
separator film production lines✓ Acceleration of transition to
EV → Decrease of orders
received for die castingmachines✓ Materialization of the India
production plants of Japanese
automobile manufacturers✓ Restriction of sales and service activities and production
due to the outbreak and prolonged COVID 19 pandemic✓ Efficiency improvement andreduction of business trip
expenses by utilization of
WEB tools

components—as well as the soaring prices of components, materials, energy, and logistics. However, the benefits of various measuresemerged, including lower fixed costs as a result of voluntary retirement implemented in fiscal 2020 as well as improvement in the profitabilityof overseas plants accompanying the reorganization of domestic and overseas production bases.

Implementation of Measures and Expected Effects of the Management Reform Plan (Operating Profit Impact) and
Progress Evaluation as of the End of Fiscal 2021
(Billions of yen)

Capital investment and
R&D / human investment
increase portion

Fixed cost
reduction

Variablecost
cutting

3.8(Operating profit
ratio 3.2%)

0.3
0.9

0.4

0.3

1.9

Unprofitablebusiness
restriction

Investment
to increase
sales

Productivity
improvement /revenueincrease effect

0.2
1.4

1.5

2.0

10.8
(8.0%)

Satisfactory

0.3
Growth of net
sales progressing steadily

4.0

Despite a ¥1.4 billion procurement
cost reduction target, procurement
costs rose due to a steep increasein material prices.

✓ Difficulty in procurement ofelectrical components including semiconductors✓ Soaring steel and energy
prices and transport costs+7.0

Improved profitability ofoverseas production plants
Benefits of improvements beginning
to appear while they are being
introduced

Deteriorated

Completed
FY2018operating proﬁt

ROE
4.9%

Increased
depreciation
cost relating
to capital
investment

Increased cost
relating to R&D
and human
investment

Personnel
reduction
throughvoluntary
retirement

Outsourcing
cost and labor
Cost increase

Cost reduction

Procurement
Cost(material cost
ratio) cutting

Businessorganization /ofﬁce
consolidation
effectSales
promotion
cost (agent
commissions,etc.) increase

Effects ofproductivity
improvement

Revenue
Increase effect

Others

FY2023Operating proﬁt

ROE
8.5%

Integrated Report 2022

23

Management Strategy
Medium-Term Management Plan “Management Reform Plan”

Management Tasks for Management Reform Plan FY2022

Increase of Lithium-ion Battery Separator Film Production Lines
The demand for lithium-ion batteries, which power electric vehicles, is growing dramatically as the introduction of electric vehicles

Productivity Improvement

progresses amid a worldwide trend toward decarbonization. SHIBAURA MACHINE lithium-ion battery separator film production lines,

We will continue reorganizing domestic and overseas production bases to improve productivity. In fiscal 2022, we will generate profits byincreasing productivity through the mass-production of a limited variety of products. As part of these efforts, our plant in China will increase
production of SCARA robots, while our plant in Thailand will ramp up production of electric injection molding machines.

which manufactures separator film―a component of these batteries― and is seeing a significant rise in orders.
To cater to this demand, in the first half of fiscal 2022 we doubled monthly production capacity from two to four production lines.

Aiming at lithium-ion battery separator film production lines sales of 100 billion yen

Create profits by improving productivity through small variety mass production
FY2020

China
plant

Thailand
plant

India
plant

• Transfer of SCARA robot
production• Increase in percentage of locallyprocured components andmaterials

FY2022

Production
850 units / year•B
 enefits of the increased production of electric injection molding
machines• Increase in the percentage of
locally procured components
and materials•C onsolidation of hydraulic injection
molding machines• Increase in the production of
medium- to large-sized hydraulicinjection molding machines•C onsideration of electric injection
molding machine production

FY2021

FY2023

Production
2,300 units / year

Production
4,800 units / year

Production
50-60 units / month

Production
60 units / month

From October 2021

2nd half of FY2022

Production, 2 lines / month*

Production, 4 lines / month* Full line

Consolidated the production of small electric
injection molding machines

Production
19 units / month

Production
50 units / month
Consolidated hydraulicmachines

Acquisition of neighboring land

Plant investment plan

The strength of our company is the ability to provide high precision products (thin and uniform)
from our full engineering line

Convert to in-house production oflarge-structure injection molding machines

Construction of new plantOperation of
new plant

Capital Investment
SHIBAURA MACHINE will proceed with investments focused on growth fields (India’s market and high-precision machine tools), digitaltransformation, and the reorganization of the Numazu Plant.

Expansion of Indian Market

We are revising the prioritization of capital investment. For example, we are giving priority to construction that will raise production

To meet the higher demand expected from India’s rapidly growing market, we will establish a new plant at our plants with the aim ofcapacity for lithium-ion battery separator film production lines, thereby responding to the dramatic rise in demand for lithium-ion batteries.

increasing production capacity for medium- to large-sized hydraulic injection molding machines and small hydraulic injection molding

Meanwhile, we will postpone a plan to rebuild the Numazu Plant.

machines. Also, we will consider the production of electric injection molding machines to capture demand for conversion from hydraulicmachines to electric machines, which is rising due to a growing need to decarbonize.

Sales promotion of injection molding machines to the fast growing Indian market
Increase of medium- to large-sized machines(In particular, for the automobile industry) rowth in the markets of white goods, building materials,
G
containers, and automobiles is expected due to population
growth.
Japan’s automakers are expected to enter India’s market.

Demand for switching from hydraulic machines
to electric machines
 ed by the medical / container industry and JapaneseL
automobile manufacturers
 ate of electrificationR
FY2021 11.5% ⇒ After 10 years 20pts.UP (31.5%) forecast

Major capital investment plan and operation schedule (about 23 billion yen)

Category

Management

Sales
ServiceTechnology

Increased production of medium- to large-sized hydraulicinjection molding machines

Consideration of electric injection molding machine production
Production(Domestic)

Plan to start operation during FY2023

Expansion of the plant production area + Updating of process facilities
1,200 units/year ⇒ 3,200 units/year (including the new plant operation)

24

Integrated Report 2022

Production(Overseas)

Investment purpose

FY2022
H1

FY2023
H2

H1

H2

•P
 rofit creation by the effective
use of company assets•E xpansion of the service
business by DX utilization•U se of DX to eliminate reworking
in development and design(Productivity Improvement)•R ealization of the sales achievedby the high precision machine
tools to the 10 billion yen scale

Start of joint operations at
Sagami Logistic Center

Start of injection subscription service (in USA)DX

Horizontal development to other regions

DX

Operation of new 3D CAD

Operation of Gotenba precision assembly plant

Marshalling Center•R eorganization of Numazu Plant•C apturing of demand in India’s
growing market

Operation of Gotenba
Start of designing Numazu
Plant

Installation and operation of India plant machine tools
Operation of
new India Plant

Integrated Report 2022

25

Management Strategy

New SHIBAURA MACHINE Long-Term Vision 2030

New SHIBAURA MACHINE
Long-Term Vision 2030

 eveloping New Businesses That Combine Products and Services and Thereby Increase
D
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 thiscombine products and services to solve customer issues, such as increasing the efficiency of production plans and assets and enhancing
environmental friendliness.

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

Reform Plan.
Selling of products

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

standing technological innovations that help the global manufactur-

To achieve this target, we will move forward based on four overrid-

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

ing 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.

Company-Specific Policies

Selling of products and services

Commodity machines

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

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

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

Full-scale production

Increased production

Individual sales of industrial machinery

Business selling products

FY2019

Sales of restored machines (used purchases / resales)
Addition of“service”
business

Long-Term Vision 2030 (Our Ideal Role)FY2023

global manufacturing industry adapt to megatrends
Megatrends

Technologicalinnovation

FutureIndividual sales of industrial machinery

Machine Tools
Company

Metal & Plastics
Industrial MachineCompany

Control Systems
Company

Human resource strategy that supports technological platforms

New

Focus on specific domains by model selection
EnergyAircraft

OpticsDevices

Injection molding
machines and die
casting machinesE xpand local production
for local consumption
overseas

Automobiles

Extrusion machines
EnergyImprove profitability and expand profit opportunities through new businesses combining products and services
Expand overseas sales

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

High-value-added / market expansion areas

Basic policy

Four Directions of Long-Term Vision 2030

Business portfolio strategy (clarification of focus areas and reduction / withdrawal fields)

Small-lot production

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.

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

Production increase

Resource-saving

 usiness expansion
Bthrough investment
Devices

New materials

Specialize in external sales and strengthen
engineering solutions
Automation

Labor saving

Establish technology for adding new functions
via surface structure control
New Business

Automation

Devices• Multifunction machines• Ceramic cutting machines

Expand / enhance

Reduce / withdraw• Large machines• Special, dedicatedmachines• High-precision
machine tools•S mall and general-purpose
machines• Injection molding
machines• Die castingmachines•D omestic production ofstandard hydraulicmachines• Engineering solutions• Dissimilar material joining
machines• High-pressure continuouspresses (batteries, etc.)• Reactive extrusion
machines (biomass, etc.)• Collaborative robots• AMR*• Extrusion
machines

DX (Digital transformation)

Advancements in technology

Current

Prototyping

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

New SHIBAURA MACHINE

Climate change and resource scarcity

Sharing (our sharing factory and equipment)

Provide services in all of our customers’ production stages

FY2030Address social issues and enhance corporate value through outstanding technological innovations that help the

Rapid urbanization changes in
population structures

Aging of equipment

Industrial machinery maintenance / service

New SHIBAURA MACHINE Long-Term Vision 2030 (Outline)

Management Reform Plan toward the
new SHIBAURA MACHINE

High-value-added machines• Robots• Servo motors,
controllers•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(batteries, ceramic capacitors, optical components, etc.)• Imprint equipment: Water purification and sterilization
market(Deep-UV LEDs)* Autonomous Mobile Robot

26

Integrated Report 2022

Integrated Report 2022

27

Management Strategy
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

The SHIBAURA MACHINE Group has 46 overseas production bases, and overseas sales account for more than 50% of Companywide net

social issues. Amid the global trend toward decarbonization, we have a variety of products that can contribute to decarbonization initiatives.

sales. However, overseas sales of machine tools account for around 30% of our machine tool sales, a small share given that, on average,
industry peers sell around 60% of their machine tools overseas. 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 machine tools.

Contribute to reducing greenhouse gases
Power generation and storage

New materials

Resource-saving

High-pressure continuous press machines

Reactive extrusion machines

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

Milan

ShenzhenTaipeiChennai
SE: solid electrolytes

Biomass

All-solid-state batteries

Wood plastics

BangkokSão Paulo

Thai Plant

Weight saving and recycling
Aluminum car
frames

MexicoHanoi

I ndia Plant(Chennai)

Rechargeable batteries

ChicagoShanghai
China Plant (Shanghai)）Singapore

CFRP parts

Jakarta
Total of 46 overseas locations

12 local sales subsidiaries / 3 local manufacturing subsidiaries

Source: FY2018 NEDO Advanced Battery and Hydrogen
Technology Department Results Report Meeting(B1-03) LIBTEC Materials(As of March 31, 2022)

Evolving Our Business Portfolio (Creating New Businesses)

Fostering Personnel to Support Our Technological Platforms

Through the provision of film casting equipment, coating machines, and Imprinting 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 whohave advanced professional skills.

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

High-performance films and 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

Metal & Plastics Industrial
Machine Company

Next-generation communications

Batteries, ceramic capacitors, and optical components

Water purification and sterilization

Laminated wiring boards

High-performance separator films

Deep-UV LEDs

Machine Tools Company

Production Center

Train and assign
specialists

Control Systems Company

New BusinessSeparator
Anode material

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

28

Integrated Report 2022

Cathode material

Source: JST New Technology Presentation Meetingsmaterials

Industry–academia collaborations(external alliances)

Highly professional recruitment

Integrated Report 2022

29

Management Strategy

MESSAGE

OrdersA Message from the CFO(Billions of yen)

Setting our sights on the completion of theManagement Reform Plan and beyond,we will seize opportunities through steadyinvestment and realize appropriate risk control.

140.7

Given current orders and the orderenvironment, we are well within reach of
realizing net sales of ¥120.0 billion andoperating income of ¥6.0 billion in
fiscal 2022.

84.2
69.7

Hiroaki Ota

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

Second Year of the Management Reform Planproduction, installation, and acceptance inspection, caused bya resurgence of the COVID-19 pandemic, difficulties in procuring

End of ﬁscal 2020

capacity by advancing measures to double the number of pro-on year, to 66.0%, and this percentage is expected to continue

duction lines from 24 to 48. As orders are expected for several

on this trend. Therefore, as we need to ensure risk tolerance

years to come, we will consider raising production capacity

amid rising geopolitical risks, we will focus on maintaining theeven further.

components, a lockdown in Shanghai, and logistics disruption.

of 8.5% by fiscal 2023, which is above the expected cost of

On the other hand, operating income and the operating marginshareholders’ equity, and to establish profitability that will sus-

were approximately in line with the forecast, despite hikes intain the improvement of corporate value. Given the susceptibility

material prices and transportation costs. The Managementof our business to economic fluctuations, our basic policy is to

Reform Plan calls for a ¥1.4 billion reduction in procurement

maintain the equity ratio at its present level so that we cancosts. In fiscal 2021, difficulties in procuring semiconductors

steadily implement investments in line with the New SHIBAURA

and other components and materials in fact led to an unavoid-and Strategy

MACHINE Long-Term Vision 2030 and provide stable dividends

able increase in costs of about ¥2.0 billion. Nonetheless, profit-

In fiscal 2022, we are targeting year-on-year increases of 11.0%

to our shareholders. During the period of the Management

ability improved thanks to enhanced productivity, which resulted

in net sales, to ¥120.0 billion; 42.0% in operating income, to ¥6.0

Reform Plan, we have earmarked approximately ¥15.0 billion

from our previous reduction of fixed costs and the introduction

billion; and 1.1 percentage points in the operating margin, toto fund shareholder returns, and we are targeting a dividendof an in-house company system.

5.0%. Although foreseeing the effects of various risk factors is

improvement efforts will focus on increasing profits. Aiming
to achieve our targets, we have established net sales per

equity ratio at its current level or improving it to a higher one.

At the same time, we will continue rigorously advancing
reform of overall operational flows aimed at changing mind-

Fiscal 2022 Medium- to Long-Term Outlook

difficult, given current orders for lithium-ion battery separator

Progress of Capital Efficiency Improvement

End of ﬁscal 2021

as a percentage of net sales rose 10.0 percentage points year

Based on the Management Reform Plan, we aim to achieve ROE

payout ratio of around 40.0%. To reach this target, our ROE

30

End of ﬁscal 2019

sets, enhancing productivity, and promoting sales. From a
medium- to long-term perspective, other initiatives based on
the Management Reform Plan will include the developmentof mainstay products to succeed lithium-ion battery separator film production lines, investment in research and devel­
opment aimed at reforming our business model through“SHIBAURA DX,” and investment in the personnel who will
support SHIBAURA MACHINE going forward.

film production lines and other products together with the orderenvironment, achievement of these targets is well within reach.

More Committed Than Ever

employee as a key performance indicator and endeavored to

At the end of fiscal 2021, total assets had increased, while theIn the first half of fiscal 2022, we faced challenging conditions

improve selling and general and administrative expenses as aequity ratio had decreased significantly from 61.0% at the previ-

due to a lockdown in Shanghai, soaring component prices, andTo adapt to changes in the business environment, we arepercentage of net sales. Moreover, we are effectively utilizing

ous fiscal year-end to 50.0%. Beginning from the first quarter oflogistics disruptions. However, we aim to realize our targets

taking emergency measures that differ from those set out in

assets through such initiatives as a reorganization of plants infiscal 2021, due to the adoption of new revenue recognition

through measures in the second half of the current fiscal year to

the Management Reform Plan, and we are responding flexibly

Japan that will enable the utilization of part of the Sagami Plant

standards, our recognition of product sales changed from theappropriately manage downside risks, curb cost increases

to changes in the order environment. However, our medium-site to jointly commercialize a logistics facility in alliance withrecognition of revenue at the time of shipment to the recogni-

through productivity improvements, and revise product pricing.

to long-term goal of realizing the New SHIBAURA MACHINE

Mitsui Fudosan Co., Ltd. In addition, we will concentrate invest-

tion of revenue at the time of acceptance inspection. Against

As for investment plans, while our strategy of adhering to theLong-Term Vision 2030 as well as the focus of reforms aimed

ment on fields where we enjoy competitive advantages.

this backdrop, the pandemic disrupted sea and land transporta-

Management Reform Plan and allocating capital in an optimallyat realizing the vision remain unchanged. While the unpredict-In fiscal 2021, the year ended March 31, 2022, and thetion, and restrictions on overseas travel delayed installations atbalanced manner to achieve ROE of 8.5% remains unchanged,

ability of the environment is likely to continue, we will imple-

second year of the Management Reform Plan, sales and profits

customer sites. Consequently, we accumulated product invento-

we will adjust the strategy’s details to reflect changes in thement the initiatives of the Management Reform Plan with angrew year on year due to an increase in orders for lithium-ion

ries, one of the main reasons for a temporary rise in total

environment. The increased pace at which electric vehicles areeven greater focus and determination, thereby laying the foun-battery separator film production lines, which resulted fromassets. Another factor was that inventories, which we had been

being introduced is providing a strong tailwind. In particular, wedations for the next medium-term management plan. In addi-

higher electric vehicle-related capital investment; a rise in orders

reducing by shortening production lead times, rose in fiscal

are accumulating a significant volume of orders for lithium-ion

tion, the president and I will redouble our efforts to effectively

for all-electric injection molding machines, which reflected a

2021 because we gave priority to securing components andbattery separator film production lines, which will continue toconvey this unwavering commitment to stock markets.

trend toward decarbonization in North America; and an increasematerials. Since a dramatic improvement in the procurement

drive growth in Companywide net sales and profits in fiscal

I would like to ask our shareholders and investors as wellin orders for injection molding machines in India. In light of ourenvironment is unlikely, in fiscal 2022 we will continue placing

2023 and beyond. Therefore, we will give first priority to invest-

as all of our other stakeholders for their continued support andposition in the first half of fiscal 2021, we upwardly revised ouremphasis on procurement and production rather than improve-

ment aimed at ensuring that we capture the demand for thisunderstanding.

performance forecast in November 2021. However, full-year net

ment of asset efficiency, but our basic stance on achieving the

product. We have already begun raising annual production

sales fell short of the revised forecast due to delays in

ROE target remains unchanged. In fiscal 2021, overseas sales

Integrated Report 2022

Integrated Report 202231

Special Feature

CORE TECHNOLOGIESOur Strengths—Continuing to Support Key Industries

Eight Technological Platforms

Eight Technological
Platforms

Developing and Manufacturing an Array of Advanced Industrial Equipment

1
2
3
4

Realizing one-stepadvanced accuracy

Professional
manufacturing,assembly, andmeasuring
technologies

Supporting diversified
application fields

Designing technologies
for processing andmolding machinery

Integrative

Customizing
technology

Maximizing machine
performance

Material
technology

32

Integrated Report 2022

Application Example

Large-Scale Processing Technologies
Technologies for the Manufacture of Large-Scale High-Precision Machines

Around the world, key industries engaged in the manufacture of aircraft, ships,
railcars, automobiles, and generators use components that range in size fromseveral meters to several tens of meters. To manufacture these components,
machines as large or larger than the components are required. SHIBAURA
MACHINE has developed the knowledge to design ultra-large, high-precision
machine tools as well as the craftsmanship to realize these designs throughthe manufacture and measurement of large-scale components and the highprecision assembly and measurement of machines.

Application Example

Control,mechatronics, andIoT technology

Die Casting

Acceleration

High-Quality Die Casting through Super High-Speed Injection

Many of the aluminum and magnesium components required for the mass
production and weight reduction of automobiles are manufactured by die casting machines. To heighten the quality of these components and to accommodate larger components, super high-speed injection is needed so that molten
metal can be quickly poured into molds. SHIBAURA MACHINE’s die castingmachines boast outstanding high-speed injection and responsiveness. Acceleration, which determines the speed of these machines, reaches 100G, or 100
times the 1G acceleration of a sports car, while responsiveness is 0.01 at asecond, or one-thirtieth of the 0.3 second blink time of humans.

Technology

SHIBAURA
MACHINE

100G

Supporting highprecision

1G

Sports car

Slide and rotation

ResponsivenessTechnology

SHIBAURA
MACHINE

Blink

Application Example

0.01 seconds
0.3 seconds

Additive Manufacturing Equipment
Realization of New Manufacturing and Integration with All Kinds of Product Technologies

Mass-produced components are generally manufactured by molding processes that use metal molds,
such as plastic molding and die casting. While these manufacturing methods offer excellent productivity for mass production applications, they are not suitable for small-lot production of a large variety
of products or for prototyping, due to the time and cost required to fabricate molds. Additive manufacturing equipment is attracting attention as a new manufacturing method that solves this problem.
This equipment forms three-dimensional objects by layering materials in sequence and then using chemical reactions such as
melting and sintering. Our product lineup includes large metal additive manufacturing machines, which we have created by
combining technologies for manufacturing large high-precision machines, laser and thermal technologies, and our expertise inmaterials. Based on our metal additive manufacturing equipment, we are offering new manufacturing methods that realize
mass customization—which cannot be achieved with traditional manufacturing methods—and that can also form complex
three-dimensional structures to create new functionality.

Application Example

Composite Material Molding Technologies
Molding Made Possible by Our Expertise in Materials

Composite materials and fiber-reinforced plastics used in aircraft, automobiles, and other vehicles, as well as in robots and drones, can warp or develop
weaknesses when molded in the manner of ordinary plastics. We have developed molding methods that eliminate the warping of molded products andenable the stabilization or enhancement of their strength by molding multiple
layers of materials from different directions.

56
7
8
Optimized for eachmachine group

Molding method using our injection molding equipment(1) The first layer of plastic flows in from left to right.

Based on understandingof target material

Molding technology
originated from mold

Using heat, light,
and vacuum(2) The second layer of plastic flows in from the bottom to the top.

Nano-processing
technology

Application Example

1

2

3

4

Realizing one-stepadvanced accuracy

Supporting diversiﬁed
application ﬁelds

Integrative

Maximizing machine
performance

Professional
manufacturing,assembly, andmeasuring
technologies

Designing technologies
for processing andmolding machinery

Customizing
technology

Material
technology

5

6

7

8

Optimized for eachmachine group

Supporting highprecision

Based on understandingof target material

Using heat, light,
and vacuumControl,mechatronics, andIoT technology

Slide and rotation

Molding technology
originated from moldNano-processing
technology

Collaborative Robots
Control Technologies That Coexist and Coordinate with People

In developed countries, working-age populations are declining due to the aging of
populations. Consequently, demand is increasing for robots that enable the automation of production and allow people to engage in more creative activities. Meanwhile,industries are increasing mass customization and the manufacture of large varietiesof products. As a result, there are still numerous tasks that require human skills.
SHIBAURA MACHINE’s offerings include collaborative robots, which coexist andcoordinate with people. Given the intelligence to understand people and their surroundings, these robots control force and movement speed so as not to harm
people. For this reason, our robots can work in the same environments as people,
alongside people, and in partnership with people.

Application Example

High-Precision Positioning
Nanometer-Level Ultra-High-Precision Control

The precision to control objects andmove them 0.1 nanometer

High-precision lenses of many different shapes are used in increasingly sophisticated and high-resolution smartphone cameras as well as in the sensors andheadlights that are helping make automobiles safer and more intelligent. The
manufacture of these high-precision lenses requires high-precision machine tools.
We provide high-precision machine tools that boast world-leading levels of preciP.34–35 . Incorporating control and manufacturing technologies forsion
moving objects on a nanometer level, these machines are capable of controlling
objects and moving them 0.1 nanometer (one-10 billionth of a meter). This is so
precise that, for example, movement by a single atom is possible.

Precision so advanced that movement by the spaceof one atom is possible

Application Example

Extrusion Technologies
Forming Thin, Flat Films

Thin, flat films are used in everything around us, including smartphones, LCD televisions, solar panels, lithium-ion batteries, medical and household products, andfood containers. Our film forming machines produce thin, flat films that have consistent quality.
These machines can realize ultra-thin films with thicknesses of less than five
micrometers (0.005 mm), which is less than one-sixteenth the thickness of photocopy paper, or less than one-sixth the diameter of cedar pollen. Also, the manufactured films are extremely flat, with edge-to-edge variances of less than 0.1 mm infilms with widths of 2,000 mm.

Application Example

Flatness
Extreme flatness due to uniform thickness
across given widths

Thickness Less than five micrometers
Flatness	Variance of less than 0.1 mm for
a 2,000 mm widthGlass Molding Technologies
High-Precision Glass Molding through Heat and Vacuum Control

High-performance glass lenses are used in mirrorless single-lens reflex cameras, which are becoming
increasingly advanced and of a higher resolution. In the manufacture of high-performance glass lenses
that control light as designed, die machining and glass lens molding are required. We offer high-precision
machine tools with levels of accuracy that are unsurpassed worldwide as well as high-precision optical glass
molding press machines that achieve excellent productivity. Glass molding is made possible by heat andvacuum control technologies and technologies that control high-precision machines. By creating vacuums andoptimally controlling temperatures, our machines enable the mass production of high-quality, high-precision
glass lenses.
In addition, our high-precision machine tools are used to machine the dies used when molding lenses.

Integrated Report 2022

33

Special Feature

SOLUTION

Our Strengths—Continuing to Support Key Industries

High-Precision Machine Tools

Case 2High-Precision TechnologyEnabled Achievements

What Are High-Precision Technologies?
The development of an information-driven society is making day-to-day life faster paced aswell as more fulfilling and convenient. As portals to information, digital devices such as PCs
and smartphones have become ubiquitous, formed a huge markets, and become indispensable
both for industry and daily life.
Further, digital devices use such precision optical components as aspheric lenses, whichremove distortion when cameras are used, and light guide plates, which illuminate entire lightemitting surfaces. Moreover, these precision components are key components that determine
the performance and popularity of the products into which they are built. The precision needed to
manufacture the components can only be achieved by using high-precision technologies capableof realizing nanometer-level manufacturing and control. As well as manufacturing precisioncomponents themselves, high-precision technologies are used to manufacture the molds used in
the production of precision components. Thus, high-precision machine tools play an essential rolein supporting the development of an information-driven society because they enable the creationof precision components that that meet exacting requirements in terms of compactness, lightness, multifunctionality, precision, density, mass producibility, and affordability.

Automotive LED Headlight Molds
Another field where we can apply high-precision technologies is themachining of automotive optical components, such as headlight lenses
and reflectors. In recent years, LEDs have been incorporated into automotive headlights and other lighting devices. However, LEDs are highly directional, meaning that they strongly emit light in one direction. Needed for
driving safety, the emission of light in all directions calls for special lenses
and reflectors that are machined with high levels of precision, have complex shapes, and are larger.
One challenging aspect of automotive LED headlight molds, whichmust have highly precise and complex shapes, is that machining themtakes time. To satisfy automaker requirements, we have developed highprecision technologies that realize even higher levels of precision as wellas the machining of complex shapes. Moreover, these technologies
improve production efficiency by eliminating certain component manufacturing processes.
By shortening the lead time needed to machine molds and realizing
advanced light distribution control, we are helping introduce automotive
LED headlights and contributing to driving safety.

Case 1High-Precision TechnologyEnabled Achievements
Smartphone Lenses
Since manufacturing our inaugural high-precision aspheric surface
grinders for machining lenses in 1992, we have continued developing
machines that meet the precision specifications of our customers.
Manufacturers’ efforts to develop cameras with increasingly advanced
performance coupled with the penetration of smartphones led to theneed for further improvements in the quality and mass producibilityof aspherical lenses—core components that determine camera performance. Ultra-precise nanometer-level machining is required to manufacture the molds used for the mass production of high-quality lenses.
Therefore, in addition to increasing the precision of high-precision
machine tools even further, we have established software and incor­
porated measuring instruments and other peripheral technologies toachieve smoothly machined surfaces. In this way, we are contributing
to the realization of higher-performance cameras and smartphones.
In addition to demand for smartphones, since 2010 demand forvehicle-mounted cameras has been growing, creating still greater
demand for lenses. To meet this demand and benefit society, we havefurther developed our high-precision machine tools, manufacturing anddelivering more than 1,000 such machines to date.

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Integrated Report 2022

Lens molds

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

Our high-precision machining center (UVM-700E(5AD))

An automotive LED headlight mold

Potential for Addressing Future
Social Issues

Initiatives to Detect
Social Issues

Upgraded optical technologies are being incorporated into smart
devices, which have further spread since becoming a focus interest
around the time of the COVID-19 pandemic. As well as being used
to enhance automotive accident prevention and autonomous driving
capabilities, advanced optical technologies are used in combination
with augmented reality and virtual reality technologies and used foradvanced medical applications. As conventional optical technologies become less able to realize the array of more-sophisticatedoptical functionality required in the future, the presence and importance of machined components and molds is likely to increase.
Against this backdrop, while working in tandem with customers,
we can help address future social issues by catering to market
demand through the proposal of processes that include highprecision technologies and peripheral technologies that we havedeveloped to date.

In 1977, we began focusing on high-precision machining with theaim of differentiating and adding value by enhancing the precisionof machine tools. The 1990s were a phase in which we exploredtechnologies related to high-precision aspheric surface grinding.
Based on our development experience, we realized that dedicating
ourselves to incorporating customers’ specifications and feedback
would lead to the development of the machines required by society.
While adding improvements, we gradually built up a track record ofdelivered products. Further, the research conducted by industry–
academia–government partnerships in Japan and overseas greatly
contributed to our subsequent development of optical components.
High-precision machine tools help create smartphones, advanced
safety devices, and the vehicle-mounted cameras used in autonomous
driving, all of which would have been unimaginable 50 years ago. We
believe that these achievements are the result of our efforts to detectcustomer issues and then use our technologies to address them.
Going forward, SHIBAURA MACHINE will continue detecting andaddressing social issues by deepening relationships with customers,
participating in industry–academia–government partnerships, anddeveloping unique, high-performance technologies and products.

Integrated Report 2022

35

Special Feature

SOLUTION

Our Strengths—Continuing to Support Key Industries

Social Issues Addressed by SHIBAURA MACHINE
Improving Power Generation Efficiency by Machining Generator Components with Machine Tools
Machines Utilized

Ultra-large machine tools and multi-axis double column type machining centers

SHIBAURA MACHINE’s ultra-large machine tools and multi-axis double column type machining centers enable the machining of components forthe large turbines, wind turbine hubs, and speed-increasing gears that are required for power generation. In realizing these machine tools andmachining centers, we utilize our design capabilities for ultra-large, high-precision machine tools; technologies for component manufacturing,assembly, and measurement; and machining expertise. Our machines improve power generation efficiency through the machining of components that heighten the performance of turbines used in all types of power generation, including wind, hydro, thermal, nuclear, geothermal,hydrogen, ammonia, synthetic fuel, and biomass generation. Consequently, we help reduce CO2 emissions during energy production, thereby
contributing to the prevention of climate change. In response to the energy security issues that have arisen in recent years, we will accelerate
initiatives focused on contributing to small-scale nuclear, hydrogen, and ammonia power generation.

Contributing to Decarbonization by Providing Lithium-Ion Battery Separator Film Production Lines
Machines Utilized

Extrusion machines

Through our involvement in the facilitation of battery separator film production since the 1980s, we have accumulated mechanisms and technologies for realizing film that is wider and more uniform in thickness as well as molding expertise grounded in scientific knowledge. We haveapplied these capabilities to enable the mass production of lead storage, alkaline, manganese, and nickel-hydrogen batteries. Having capitalized on this experience and evolved our technologies even further, we are currently providing solutions that allow customers to produce large
volumes of extremely thin separator films for lithium-ion batteries. By enabling the practical realization of smartphones, the electrification ofdaily commodities, the introduction of electric vehicles, and the renewable energy storage that enhances electricity supply stability, we are helping to enrich day-to-day life and reduce CO2 emissions.

To
What kind of

What kind ofTechnology (+ Machine) makes

Product (+ Component)

Large-scale machining technologies

Wind turbine hubs and speed-increasing gears

Ultra-large
machine tools

A windturbine hub

Double column type
machining centers

A speedincreasing
gear

Solve
which social issue
Contributing to a decarbonizedsociety by heightening the efficiencyof energy creation

What kind ofTechnology (+ Machine) makes

Product (+ Component)

Technologies that fully integrate extrusion
machines and printing presses

Lithium-ion battery separator film

Lithium-ion battery separator film production lines

separator film

Contributing to the spread of electricvehicles and smart grids by enabling themass production of lithium-ion batteries

Advancing New Workstyles Based on Collaborative Robots

Injection molding machines and die casting machines

Machines Utilized

By using a molding method that generates air bubbles in plastic molded products, our injection molding machines reduce the weight andvolume of materials used for such automotive components as door trims. Similarly, structural design technologies, which are based on our
expertise in materials, and the super high-speed injection of our die casting machines enable the casting of subframes and other aluminum andmagnesium automotive components that are lighter and require less material. By reducing the weight of automotive interior and exterior components and structural components, we are lowering the CO2 emissions generated when vehicles are driven, helping prevent global warming.

Industrial robots

The combination of mechanical structures, control technologies, and AI that operate all kinds of industrial machinery as desired will enable therealization of intelligent collaborative robots able to work safely with people. Thus, the realization of new manufacturing through cooperative
robots will advance the introduction of new ways of working. For example, these robots will augment the labor force in societies with declining
working-age populations, allow the reassignment of personnel to more-creative work, and realize ways of working and living that align with the
Sustainable Development Goals.

To
What kind of

What kind ofTechnology (+ Machine) makes

Product (+ Component)

Foam molding technologies

Door trims and other automotive interior
components and subframes

Injection molding
machines
Structural design technologies
and super high-speed injection

Die casting machines

Solveswhich social issue

A rendering

Helping Reduce Automobile Weight
Machines UtilizedTo
What kind ofSolvewhich social issue

To
What kind ofTechnology (+ Machine) makes
Control, mechatronics, and IoT technologies

Lowering the weight of automobiles toreduce their CO2 emissions when driven

Solveswhich social issue
Advancing new workstyles by realizing
a society in which humans
and robots coexist

Automotive interior
components

Subframes
Collaborative robots

36

Integrated Report 2022

Integrated Report 2022

37

Sustainability Management of
SHIBAURA MACHINE

New “SHIBAURA MACHINE” Long-Term Vision 2030
Address social issues and enhance corporate value through outstanding technological innovations that help the global
manufacturing industry adapt to megatrends.

As a supporter of manufacturing worldwide, the SHIBAURA MACHINE Group will address social issues and enhance
corporate value through outstanding technological innovations that help the global manufacturing industry adapt tomegatrends. 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 of society,we will make sustainability considerations the drivers of business management and continue to take into account the
viewpoints of all our stakeholders around the world, including customers, shareholders, and investors, suppliers, andbusiness partners, employees, and local communities.

Megatrends

New SHIBAURA MACHINE

Climate change and resource
scarcity

Technologicalinnovations

Current

Rapid urbanization and changes
in population structures
FutureAdvancements in technology

Individual sales of industrial
machinery
Added value of “combining
products and services”(Monetizing processes and knowledge)(Moving away from self-sufficiency andstepping up M&As)

Fundamental Policy of Sustainability
Pursuant to our corporate principles, we are committed to realizing a sustainable society and increasing corporate value by
solving the issues of customers throughout the world using our technological strength, and by contributing to the development of key industries.

Themes of Sustainability Management Initiatives
Item• We address global social issues with outstanding technologies our company possesses to solve the issues and at thesame time increase corporate value.
• We strengthen our supply chain, taking into account the environment and human rights, which contributes to sustainable
use of resources.
• We realize fair and highly transparent business management.

Sustainability Advancement System

ReportEmployees

 nhancing investor relations and stakeholderE
relations activities
Having more dialogues with institutional
investors

Human resource development
Diversity
Safety and health

Initiatives for Major Action Plans in FY2021
Completed introduction of the machiNet platform
Issued SHIBAURA MACHINE Engineering Review (vol. 28),
featuring Sustainable Development Goals initiatives, in December
Continued three “milk run” routes covering 31 suppliers in total
Promoted electronic data interchange system registration(33 companies newly registered)
When concluding contracts, concluded memoranda of understanding on theprevention of transactions with antisocial forces (85 companies)
Conducted dialogues with securities analysts and institutional investors(194 times)
Increased and enhanced English-language investor relations materials
Issued Integrated Report 2021
Fostered personnel who can think and act independently
Conducted follow-up training for junior employees (in their second, third, andfifth years with the Company) three months after training to entrench thebenefits of training
Utilized telecommuting system and remote working
Encouraged employees to take childcare and nursing care leave
Promoted mental and physical health by developing our occupational safety
and health management system (OSHMS), conducting various types of healthand safety related-education, and advancing health and safety initiatives
Conducted manufacturing lectures (15 times)
Conducted various educational activities such as plant tours

Secretariat

Local communities

Corporate Planning Division

Administration Division, head office divisions
Supervise, direct

In-house companies, head office divisions,affiliated companies

Production Center
ReportSupervise, direct

In-house companies, head office divisions,affiliated companies

R&D Center
Coordinate

E

The environment

In-house companies, affiliated companies

Recommendations are made to executive bodies to ensure that the SHIBAURA MACHINE Group’s activities help sustain
the development of the Group and society and to ensure that these activities earn appropriate evaluations from stakeholders.

Integrated Report 2022

Suppliers and business
partners

 rocurement from business partners who arePpromoting environmental preservation
activities
CompliancePrevention of transactions with antisocial
forcesSupervise, direct

Chair: President
Members: Executive officers who are also directors

38

EngineeringQuality and safetyServicesS

Sustainability Committee

ReportCustomers

Shareholders andinvestors

Board of Directors

ThemesG Governance ontributions to local communities
CSupport for technical education
Coexistence with local communities

 trengthening the environmental managementSsystemReducing environmental loadGlobal warming prevention
Pollution control

 urther strengthening of the Group’s governanceFRigorous management of risk and compliance

Implemented beautification activities around plants
Participated in the environmental activities of external organizations(17 groups)
Reduced environmental impact
Implemented initiatives addressing the environment-related Sustainable
Development Goals
Moved forward with the 2nd Environmental Action Plan (2021–2025)
Promoted the introduction of eco-cars to the Company-owned fleet (44.7%)
Conducted education to promote eco-driving
Implemented an evaluation on the effectiveness of the Board of Directors
Took measures to instill the SHIBAURA MACHINE Group Code of Conduct
Established an external contact point for the in-house whistleblowing system
Conducted various training programs for all employees

Integrated Report 2022

39

Sustainability Management of SHIBAURA MACHINES

E

Human Resource Strategy

HiringG

Number of New Hires and Employees (Non-Consolidated)

With passing on skills and technologies to the next generation, acquiring new skills and technologies, and fostering globally competent per-

We hire personnel based on two main approaches: the conventionalsonnel as its main aims, the SHIBAURA MACHINE Group is developing and acquiring personnel who will underpin the Group’s advancement.

mass hiring of new graduates (the continuation of membership-type(Employees)(Employees)
120

employment) and the mid-career hiring of personnel with the skills

Basic Policy on Human Resource Strategy

1,770

1,772

1,654

needed to realize our management and business strategies. Our mass

Under the Management Reform Plan, a medium-term management plan ending in fiscal 2023, we have reorganized by introducing an
in-house company system and establishing an R&D Center and a Production Center. We are advancing such initiatives with our sights set on
becoming a corporate group which responds to megatrends in global manufacturing industry with innovative technology, which is the goal ofLong-Term Vision 2030. To respond to an ever-changing external environment, we are placing particular emphasis on strengthening humanresources by seeking personnel who have insight into and expertise in new aspects of R&D, digital transformation strategy, production
technologies, and sales as well as in such corporate areas as planning, human resources, and finance. At the same time, we are reforming
workstyles and increasing diversity with a view to achieving sustained enhancement of corporate value by retaining personnel, improving
productivity, and encouraging innovation.
In addition, as a corporate group with bases worldwide, we have established a global policy on human resources. While advancing global
strategies through the promotion of a common Companywide human resource strategy, we operate localized regional human resource
systems that are tailored to suit the institutions and business practices of the countries and regions where we have bases.

hiring of new graduates is people-centered. We focus on selecting stu-90

14

dents who exhibit leadership and an overseas orientation, regardlessof their gender or nationality. We conduct training and job rotation withthe expectation that, after being with SHIBAURA MACHINE for five or

60

15

2,000

1,796

1,500

6

13
1,000

ten years, these employees will lead the Company forward.
73

Meanwhile, our mid-career hiring mainly entails job based recruitment.
To adapt to an ever-changing external environment, we have set out a

30

54

76

500

30

engineering but also in physics, chemistry, information engineering, and ais focused on new areas related to IT and energy. For highly skilled professionals, we have established a flexible salary system that is distinct from2259

policy of hiring specialists not only in our mainstay field of mechanicalwide range of other academic fields. Moreover, our hiring under this policy

1,664

0

2017

2018

New graduate hires (left axis)
Total employees (right axis)

2019

2020

2021

(FY)

0

Mid-career hires (left axis)

the salary system for career-track employees.

Global Human Resource Policy
Our human resource systems reflect the history, culture, laws, and regulations of each country and region, and the differences between thesesystems must be properly understood and recognized.
The SHIBAURA MACHINE Group shall establish human resource systems that appropriately reflect the circumstances of each country
and region based on the following fundamental principles.
1. The diverse values of individuals shall be recognized, and individuality and privacy shall be respected.
2.	Each person shall be assessed and treated fairly and impartially. Discriminatory language related to race, religion, gender, nationality,
mental or physical disability, age, or sexual orientation shall not be permitted. Acts of violence and sexual harassment shall not be permitted.

Stepped-Up Investment in Human Resources under the Management Reform Plan
Strengthening of core technologies

Acquisition of control software engineers

Acquisition of new technologies

Acquisition of IT and IoT personnel to promote the transition to smart factories

Strengthening of operating resources
Strengthening of recruitment

Increase in overseas sales personnel
Advancement of a recruitment plan reflecting the priorities of highly-skilled professionals

3. Efforts shall be made to create safe, healthy, and comfortable work environments.
4. The design and administration of respective systems shall be conducted in a manner that is satisfactory to employees.

Human Resource Development
Human Resource System

Our basic policy is to both address future social issues and enhance corporate value by fostering personnel who can think and act indepen-

Aiming to realize Long-Term Vision 2030, in April 2021 we introduced a human resource system that enables diversified employee compen-

dently and take the initiative to develop their own careers.

sation and career development as well as the utilization of diverse expert personnel.

Engineer Training
Grade System
Appropriately reflects employees’
growth stages and job
performances

Determining
compensation levels

Compensation System
Providing compensation linked toresults and performance

40

Integrated Report 2022

Reflecting incompensation

Grade
SystemDetermining promotion anddemotion
Determining assessment
criteria

Compensation
System nabling appropriate compensation and long-term develE
opment by redefining criteria for promotion and demotion and by linking positions and roles to grades stablishing specialist positions as well as promotingEthe development of specialists and the external hiring oftalented specialists

 roviding compensation commensurate with results andP
performance by appropriately reflecting roles and results
 ompensating talented specialists in accordance withC
market compensation levels without setting an upper
limit on such compensation

The SHIBAURA MACHINE Group provides engineer education for

As workstyles diversify and technologies progress, industry is

mid-career and junior engineers, who will be the leaders of theundergoing fundamental structural changes. To ensure that our

future. Our training improves skills directly related to work by cover-workforce has the new knowledge and skill sets necessitated bying a wide range of topics, from basic technology acquisition andthese changes, we have begun reskilling employees.

computer-aided design education through to the acquisition of certification as a professional engineer. As well as providing training
on design and technical drawing, we ensure that our engineers
acquire other essential skills and knowledge related to marketing

Assessment System
Appropriately measures required
results, abilities, and skills andencourages employee growth

Reskilling

strategies, languages, and basic manufacturing, thereby developing
Assessment
System stablishing assessment items corresponding theEdefinitions of respective grades

personnel who can play active roles in many different fields.

Integrated Report 2022

41

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

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

Respect for Human Rights
The SHIBAURA MACHINE established the SHIBAURA MACHINE Group Code of Conduct pursuant to which it will respect fundamental humanrights and diversity and provide support in the realization of a work–life balance.

Childcare andfamily care leavesystemWe abide by the laws and regulations of all countries and regions, understand international norms regarding human rights, and respect fundamental 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.

Promotion of the Employment of Diverse Personnel
We promote employment based on personal skills and qualiﬁcations, not on gender, nationality, age, or the like, thus ensuring the assignment of
the right personnel to the right positions.

In the past ﬁve years, all eligible female employees have taken
childcare leave, 100% of whom returned following the conclusion ofsuch leave. Other mechanisms for supporting work–life balance
include shorter working hours, overtime exemption upon request,
and leave entitlement carryovers that can now be used for shortterm family care purposes.

In ﬁscal 2021, the average length of service of employees was 18.9
years (18.8 years for men and 19.7 years for women),* a testament to
the long periods of service that characterize the Company. Over the
past five fiscal years, there have been no employee resignations attrib-

We offer our employees various forms of support so thatthey 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 careleave, and shorter working hours

Fiscal year

2017

2018

2019

2020

2021

Persons who tookchildcare leave male
employees in parentheses(for male employees)

5 (1)

9 (2)

9 (5)

10 (7)

18 (14)

Percentage of those
returning from childcare
leave

100%

100%

100%

100%

100%

Persons who took familycare leave

0

0

1

0

0

Persons who used theshort working hour
program (for childcare)

9

10

9

3

6

Persons who used theshort working hour
program (for family care)

0

0

0

0

0

(Persons)Fiscal year

2017

2018

2019

2020

2021

Resignees (female
employees in parentheses)

32 (2)

43 (7)

30 (6)

19 (1)

54 (8)Of whom, resignees forreasons of maternity
or childcare

0

0

0

0

0

The data includes domestic affiliates.

Percentage of Childcare Leave Taken
(%)

100.0

100.0

100.0

Including domestic affiliates.

100.0

100.0

100
80

50.0
43.8

60

Promotion ofplanning andtaking annual
paid leave

Taking annual paid leave in a planned manner is encouraged. For example, we have introduced a system fortaking leave on important occasions (birthdays, etc.) as
well as a system that allows for taking leave as required,including leave in half-day increments and leave for threeconsecutive 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, self-enlightment or volunteer activities

Setting a contact
point for reportingcases ofharassment

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

Average Annual Overtime Hours and Percentage of Paid
Leave Taken (Non-Consolidated)

Registration at
public entities inrelation to genderequality

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

(Hours)(%)
227.4
225.9
100
250
196.6
197.2

40

4.7

0

2017

Men

Women

24.4
18.4

22.5
13.9

18.0

10.9
2.4

20

2018

2019

2020

2021

(FY)

Combined average

200

61.6

150

(Persons)

The data includes domestic affiliates.

 ork Environments Conducive to Child-RearingW
and Long-Term Employment

G

Work–Life Balance

Diversity and Inclusion Initiatives

 hildcare and Family Care Support Programs
C
and Their Uses

S

E

66.0

67.2

80

140.9

62.9

56.2

60

100

40

50

20

0

2017

2018

2019

2020

2021

0

(FY)

Average annual overtime hours (left axis)
Percentage of paid leave taken (right axis)

Health and Safety
As health and safety form the foundation of business management, the entire SHIBAURA MACHINE Group will make a concerted effort tostep up health and safety initiatives with the aim of establishing workplaces where all employees can work with peace of mind.

Development of Health and Safety Activities
The Group proactively conducts health and safety activities withLost Time Injury Frequency Rate (Non-Consolidated)

the aims of creating working environments that are safe andcomfortable and realizing zero industrial accidents.

 romoting Occupational Safety andP
Health Management Systems

uted to childbirth or child-rearing.

Recognizing that health and safety are integral to corporate activi-* SHIBAURA MACHINE Co., Ltd., non-consolidated

ties and based on a commitment to preventing industrial accidents
and the spread of infectious diseases and to promoting employee

2.0

1.5

1.16

1.0

0.5

0.35

health, we have acquired OSHMS* certiﬁcation for our plants.
The OSHMS techniques are also applied at all Group companies

0

2019

2020

0.00
2021

(FY)

to improve their health and safety management.
*O ccupational health and safety management system approved by the Japan Industrial
Safety & Health Association

42

Integrated Report 2022

Integrated Report 2022

43

E

Sustainability Management of SHIBAURA MACHINE

Environment

S

G

Initiatives Aimed at Achieving the Environmental Action Plan

In accordance with its Corporate Principles and Code of Conduct, the SHIBAURA MACHINE Group will meet its corporate social responsibility
by actively contributing to the creation of a sustainable environment through compliance with laws and regulations, the provision ofenvironment-friendly products, and the advancement of initiatives to reduce the environmental impact of the Group’s business activities.

Prevention of Climate Change
In fiscal 2021, CO2 emissions intensity was 205 tons of CO2 emissions per ¥1.0 billion, a 26% reduction comparedwith that of fiscal 2013.
Fiscal 2021 initiatives to reduce Scope 1 and Scope 2 CO2 emissions in fiscal 2021 included the replacement

Basic Policy for Environmental Activitiesof the Numazu Plant’s ceiling lights with LEDs and other equipment upgrades.

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 national standards, laws, regulations, agreements, industry guidelines, andAiming to reach our long-term fiscal 2030 target, we will lower CO2 emissions by utilizing solar power generation and other renewable energy sources. Specifically, we will install solar panels in accordance with the reorganization of plants set out in the Management Reform Plan.

Company rules related to the environment.

Effective Utilization of Resources

We contribute to society by developing and offering excellent environmentally conscious products.
We strive to reduce the environmental impact of our business activities, in order to protect biodiversity and ecosystems.

Management of Chemicals

In fiscal 2021, waste emissions intensity was 26.0 tons of waste

In fiscal 2021, chemical emissions intensity was 500.0 kilograms ofemissions per ¥1.0 billion, a 24% reduction compared with that ofchemical emissions per ¥1.0 billion, a 35% reduction comparedfiscal 2013.

with fiscal 2013.

Fiscal 2021 initiatives to reduce waste emissions included mini-

Strengthening the Environmental Management System

Fiscal 2021 initiatives to reduce chemical emissions included

mizing the use of casting sand to reduce emissions of slag and otherthe use of highly efficient paint guns and environment-friendly

Since 1996, when we obtained ISO 14001 certiﬁcation for the Numazu Plant, we have been consolidating and enlarging the scope ofindustrial waste, introducing simplified wooden packaging boxes,

paints as well as the implementation of a plan to improve the effi-

certiﬁcation to cover other production centers, sales centers, and Group companies in Japan as part of concerted Groupwide efforts, inand promoting the digital preparation and storage of documents.

ciency of painting methods.

Aiming to reach our long-term fiscal 2030 target, we will lower

Aiming to reach our long-term fiscal 2030 target, we will lower

waste emissions through a range of measures. For example, at thechemical emissions through a range of measures. For example,

product design and development stage, we will take into consideration

at the product a design stage, we will endeavor to eliminate the use

waste emission volumes. At the manufacturing stage, we will reduceof paint. At the manufacturing stage, we will adopt the latest

packaging materials through the introduction of common components

environment-friendly paints, improve the efficiency of painting

and through the minimization of component numbers, and we willprocesses through the utilization of AI robots, and promote theintroduce returnable boxes for the convenience of components.

utilization of optimal volumes of paint.

products contribute to the environment and to strengthen our global management. Below is a summary of the progress we made under theContribution to CO2 Reduction throughEnvironment-Friendly Products

Reduction in CO2 Emissions Intensity

2nd Environmental Action Plan in fiscal 2021.

(t)

addition to strengthening our environmental management system. Regarding overseas operations, we obtained ISO 14001 certiﬁcation
for the Shanghai Plant in 2004, for the Chennai Plant in 2012, and for the Thai Plant in 2015.
In fiscal 2017, we completed document revisions to reﬂect ISO 14001:2015.

Environmental Action Plan
The SHIBAURA MACHINE Group established the 2nd Environmental Action Plan, a ﬁve-year medium-term plan spanning fiscal 2021 to fiscal
2025, as well as a long-term plan up to 2030. These plans were prepared with reference to the COP21 international agreements and trends inJapan and overseas and cover our overseas production facilities as well. Under the plans, the key medium-term themes are to clarify how

34,410167

40,000Percentages in parenthesis are the decreases compared with the fiscal 2013 reference year.

Initiatives (Indicators)

19.3 (–30%)

13.8 (–50%)

2.44 (–29%)

1.20 (–65%)

44.0 (–43%)

40.0 (–48%)

Reduction in waste emissions (t/hundred million yen)

2.60 (–24%)

Reduction in chemical emissions(kg/hundred million yen)50.0 (–35%)

Biodiversity conservation (ecosystem network)—

Renewable energy(utilization of solar power and untapped energy)
Scope 3 initiatives(analysis of upstream and downstream impacts)

Generated 0.1% ofelectricity consumed
Analyzed downstream
impacts

64

45

2013
(reference year)

2020

2021

2022
(target)

2.0

0

0

2013
(reference year)

10.0

0.260

–29

–20

2021

2030
(target)

(FY)

–60

0

8.0

–10

4.49

4.0

–65
0.120

2020

2022
(target)

7.70

–40

0.1

2013
(reference year)

2021

(%)

6.0

0.244

0.2

0

2020

Reduction in Chemical Emissions Intensity(kg/¥ billion)

0.259

–20

1.38

Intensity (left axis)
Percentage decrease compared with reference year (right axis)

0

0.3

–30

–40

(%)

0.4

1.93

–50

0.5

–24

–26

1.0

(t/¥ billion)

–25

2.05

2022
(target)2030(target)

–60

(FY)

–80

4.40

–20

4.00

–30

–35
–43

–42

2.0
0

5.00

2013
(reference year)

2020

2021

～
～

Integrated Report 2022

(FY)

Reduction in Waste Emissions Intensity

Intensity (left axis)
Percentage decrease compared with reference year (right axis)

44

2030
(target)Contribution to CO2 reduction (left axis)
Percentage change compared with reference year (right axis)

0.345

0

2.25
–18

～
～

Analyzed environmental impacts

0

(%)

2.76

90

～
～

Strengthening management and reducing environmentalload (management upgrading)

135

112

10,000～～OverseasMonthly reporting

Participation in Mount Fuji environmental conservation
activities
Generated 0.1% ofGenerate more than 20.0% ofelectricity consumed
electricity consumed
Analyzed downstream Strengthen environmental burden
impacts
reduction activities
Investigate external infrastructure,
conduct in-house investigations ofMonthly reporting
overseas environments, and develop environmental leaders atoverseas plants
Strengthen management and proAnalyzed environmenmote reduction of environmental
tal impacts
burden

81

3.0

～
～

20.5 (–26%)

12,886(t/¥ billion)～～

34,410 (167%)

20,00027,35021,108～～27,350 (112%)

Chemical substancesmanagement

Consideration of global Environmental Management
System (EMS) (strengthening of collaboration with overseas subsidiaries)

Long-Term Objectives to Be
Achieved by FY2030

21,108 (64%)

Making productive use ofresources

Green management

FY2022 Targets

23,346～～

Environmental contribution through environmentallyfriendly products (contribution to CO2 reduction) (t)Reduction in CO2 emissions intensity
Global warming prevention(t/hundred million yen)
Offering environmentallyfriendly products

FY2021
Achievements

30,000

(%)

180

2022
(target)

–40

–48

2030
(target)

(FY)

–50

Intensity (left axis)
Percentage decrease compared with reference year (right axis)
Integrated Report 2022

45

E

Sustainability Management of SHIBAURA MACHINE

Environmental Considerations in Product Development

S

G

Environmental Data

Input and Output Graphs

CO2 emissions at the product use stage account for the majority of CO2 emissions over the entire life cycles of SHIBAURA MACHINE
products. Therefore, improving the energy-saving performance of our products and reducing CO2 emissions during the product use stage
is effective in reducing the environmental impact of our products.
Environmentally conscious product eveloping Environmentally Conscious Products andD
Reduce Potential Impact on the Environment

LCA (life cycle assessment)

Assessment

Certification

Application for environmentally conscious
product certification

When developing new environmentally conscious products, we performthe environment. These development activities are conducted pursuant to
the Design Guidelines for Environmentally Conscious Products, which incorporate product design guidelines and consideration of the 3Rs (reduce,

1. R esource saving
2. Raw material use
standards
3. Packaging
streamlining

ReduceReuse
Recyclereuse, and recycle). When a product is completed, an application for environmentally conscious product certiﬁcation is ﬁled for assessment, and, if thea life cycle assessment pursuant to SHIBAURA MACHINE Group
standards. This assessment encompasses raw materials, manufacture,transportation, use, recycling, and disposal. Moreover, certain of theseCO2 emissions reduction.** The amount of CO2 emissions that is considered to have been reduced by replacing a previous
model with an environmentally conscious product with a better energy-saving performance556

30,000Fiscal 2021 Initiatives and Long-Term Targets

595

689

645

200,000

2,000

327

20,000attributable to environmentally conscious products totaled 21,008 tons.

～～

21,108

CATEGORY 4

2018

2019

2020

2021

1.4

2.7 ktCATEGORY 1

SHIBAURA
MACHINE Group

2030(Target)1.1 ktCATEGORY 6

18.6

Scope 2 (Electricity
consumption)

CATEGORY 5

0.9 kt2.8

Integrated Report 2022

0.0

0.0 kt790.0

705.1 kt

CATEGORY 9

0.3

0.4 kt21.4

841.8 kt

21.5 kt-CO2

CATEGORY 12
Disposal of soldproducts

Scope 1 (Fuel consumption)

114.8 kt

CATEGORY 11
Use ofsold products

2.7 ktCATEGORY 7

903.2

46

18.8 kt

Scope 3

Transportation,delivery (downstream)Commutation of
employees

Business trips

91.5

CATEGORY 3

Waste frombusiness activities

1.0

2019

2020

(FY)

2021

135

118

133

3,588

4,000

4,070

120

3,775
2,703

100

3,206

99.1 98.0
92.6

86.0

80

75.4

2015 2016 2017 2018 2019 2020 2021

0

(FY)

Overseas

65.9
43.6

40
20
2015 2016 2017 2018 2019 2020 2021

Domestic0(FY)

Overseas2015 2016 2017 2018 2019 2020 2021

Domestic(FY)

Overseas

Domestic Soot and Dust Emissions
by Fiscal Year

Domestic Nitrogen Oxide Emissions by
Fiscal Year

Domestic Sulfur Oxide Emissions by
Fiscal Year

(t)

(t)

(t)

1.6

0.07

(FY) 0Downstream

Fuel / energy
related activities

1.0

122

4,153

2,000

0.06

1.4

0.05

1.2

0.05

0.02

790.3

705.5 kt

0.95

0.89

0.80

0.4
0.3

0.6

0.00

0

0.26

0.28

0.22

0.19

0.2

0.15

0.1

0.2
(FY)

0.49

0.5

0.90 0.83

0.42015 2016 2017 2018 2019 2020 2021

0.58

0.6

0.8

0.02
0.01

0.02

0.7

1.31
1.05

1.0

0.03 0.03

0.04
0.03

Purchased goods
and services

Transportation,delivery (upstream)

145

4,325

3,000

Domestic

400

～
～

～
～

24.0 kt

11.3

2018

Overseas

1,0000Results for Fiscal 2021

Capital goods

141

5,000

120

0

1.5 kt

2017

(t)

153

0.01

1.7

Domestic

2016

4,457

(t)

180

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

CATEGORY 2

Overseas

2015

4,065

(in 10,000 m3)

Ministry of the Environment.*2

5.2 kt

0

(FY)

2021

4,896

Chemical Emissions by Fiscal Year

Since ﬁscal 2015, we have estimated and calculated CO2 emissions from our entire supply chain*1 in accordance with the guidelines of the

5.1

2020

5,073

Waste Emissions by Fiscal YearCO2 emission reductions attributable to environmentally conscious products (left axis)
Number of registered environmentally conscious products (right axis)

Environmental Load from the Entire Supply Chain

Scope 3

2019

600

200

0 2013through the provision of environmentally conscious products.

Upstream

2018

5,177

60

10,0002030 target, which calls for a 34,410 ton reduction in CO2 emissions

79.4 kt

2017

4,912

Service Water Consumption by Fiscal Year800

We will advance development aimed at reaching our long-term fiscal

70.0

2016

5,147

12,886

In fiscal 2021, 44 new models were registered, and CO2 emission reductions

Results for Fiscal 2020

2015

60

23,629 24,710 23,346

6,000

474,964

4,000

Domestic

34,410432,187

400,000

models)(t)

40,0008,000

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

0

CO2 Emission Reductions Attributable to Environmentally
Conscious Products and Number of Registered
Environmentally Conscious Products(Cumulative number of

products are compared with previous models to calculate volumes of(in 10,000 kWh)

4. Ease of
disconnection anddegradation
5. Recycling
6. Provision of
information

product is certiﬁed, it is registered as an environmentally conscious product.
Further, all registered environmentally conscious products undergo(GJ)

600,000

Design Guidelines for Environmentally Conscious
Products

3R

Electricity Consumption by Fiscal Year

800,000

Product assessment

product assessments to estimate and reduce products’ potential impact on

Energy Consumption by Fiscal Year2015 2016 2017 2018 2019 2020 2021

0

(FY)

2015 2016 2017 2018 2019 2020 2021

(FY)

Domestic BOD* Emissions by Fiscal
Year

Domestic SS* Emissions by Fiscal
Year

Domestic N-hex Emissions by Fiscal
Year

(t)

(t)

(t)

2.0

1.76

1.62

1.46
1.5

2.5
2.0

1.13 1.21 1.11 1.19

1.5

1.0
0.5
0

2015 2016 2017 2018 2019 2020 2021

 iochemical oxygen demand: The volume of oxygenBconsumed when organic material is decomposed by
microorganisms in water

(FY)

2.21

1.0

2.01
1.49 1.45 1.46

0.8

1.48

0.6

0.98

1.0

0.4

0.5

0.2

0

2015 2016 2017 2018 2019 2020 2021

(FY) uspended substance: Particles that have diameters ofS
two millimeters or less and which are floating in water

0

0.72

0.79

0.68
0.56

0.61

0.56

0.63

2015 2016 2017 2018 2019 2020 2021

(FY) -hex (Normal Hexane Extractable Substance Content)nSubstances extracted from water with the chemicaln-hexane, such as oils and detergents that are difficult
to volatilize.

Integrated Report 202247

Sustainability Management of SHIBAURA MACHINE

E

Corporate GovernanceCorporate Governance System
General Meeting of Shareholders

Basic ApproachAppoint /Dismissa specific Code of Conduct with the aim of complementing themembers, we have instituted the Nomination Advisory and Remu-

Corporate Principles and ensuring that the Group conducts businessneration Advisory committees. Moreover, we operate an executive

activities in compliance with statutory laws and regulations, social

officer system to separate the management and execution of busi-

norms, and sound corporate ethics. Further, all employees are fully

ness, clarify management responsibilities, and increase the effi-

informed about the Code of Conduct to establish it as a set of stan-ciency and speed of management decision-making and businessdards shared Groupwide. Based on the Corporate Principles andexecution. In addition, directors who are Audit and Supervisory

the Code of Conduct, the Company has built a highly transparent

Committee members coordinate with the accounting auditor andcorporate governance system. Specifically, we have established an

the Internal Auditing Department to monitor business management.

Supervise

Consult
Reply

Appoint / Dismiss /Supervise

Cooperate

Audit /
Supervise

Chairman of theBoard President(Chief Executive Officer)

Corporate Auditing
Department

Instruct

Conduct
internal audit

ReportNomination Advisory
Committee
Remuneration Advisory
Committee

Cooperate
Support

Audit and Supervisory
Committee Office

Audit

neration of directors who are not Audit and Supervisory Committee

Accounting Auditor

Audit and Supervisory Committee

Reportthis commitment, the SHIBAURA MACHINE Group has establishedAppoint /Dismiss

Cooperate

Audit

Board ofDirectors

Audit

and fairness of the nomination of directors as well as of the remu-

Report /State opinions

Reportmaximizing value for our customers around the world. Based on

Appoint /Dismiss

Policy on Internal Controls. Further, to heighten the transparency

Appoint /Dismiss

Supervise

In accordance with our Corporate Principles, we will contribute toInstruct /DirectExecutive Ofﬁcers

appropriate internal control system that reflects our Fundamental

Instruct

ReportBusiness / Staff Divisions

Corporate Governance System
To ensure effective corporate governance, we have adopted aG

SBusiness / Staff Divisions Led by Afﬁliates
Instruct

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.

ReportAfﬁliates (Japanese Partner Firms / Overseas Ofﬁces)

Composition of the Board of Directors

The Company left the Toshiba Group in March 2017. Since then, the Company has continuously strengthened corporate governance through such measures as transitioning to aing, and other important meetings; and state opinions as required.

“company with committees” governance structure, which includes an Audit and Supervisory Committee and increasing the number of outside directors.

1 Board of Directors

The Company’s Board of Directors comprises nine directors (excluding direc-

3 Audit and Supervisory Committee (Progress of Measures to Strengthen

Audit Functions)tors who are Audit and Supervisory Committee members), of whom five are

The Company’s Audit and Supervisory Committee has three members, ofoutside directors, and three directors who are Audit and Supervisory Commit-

whom two are outside directors and one is a full-time member. By attending

tee members, of whom two are outside directors. As well as regular monthly

meetings of the Board of Directors and other important meetings, Audit andmeetings of the Board of Directors, extraordinary Board meetings are con-Supervisory Committee members, who have voting rights, are able to audit

vened as required. In addition to deliberating, making decisions, and report-

and supervise the execution of duties by directors. In addition, the Audit anding on the stipulations of statutory laws and regulations and the Company’s

Supervisory Committee coordinates with the accounting auditor and the

Articles of Incorporation as well as important business matters, the Board ofInternal Auditing Department to audit business management.

Directors develops the internal control system and ensures its effectiveness.
Furthermore, the Company has designated the seven aforementioned outside

4 Internal Auditing Department

directors as independent officers.

The Internal Auditing Department verifies the legality and appropriateness of

Outside2

Fiscal 2016

Inside6Outside7(Including two outside
directors who are Audit
and Supervisory Committee members)

Fiscal 2021

Inside5(Including one
director who is an
Audit and Super­visory Committee
member)Policy on the Appointment of Directors
At present, the Company’s Board of Directors comprises nine directors

while increasing the competitiveness of its businesses, the Company has

provides guidance if there are any matters requiring improvement. Further,(maximum of 12 directors), excluding directors who are Audit and Super-sought a balance of knowledge, experience, and ability in the overall com-deliberates on matters concerning the Company’s directors and other importantthe Internal Auditing Department comprises 12 members and is under thevisory Committee members, and three directors who are Audit andposition of the Board of Directors. Accordingly, the Company has appointed

personnel matters, while the latter deliberates on the remuneration of the Com-

direct control of the representative directors.

Supervisory Committee members (maximum of five directors). Seven ofa range of experts as outside directors, including individuals with extensive

the directors are outside directors, and two of the outside directors areexperience in corporate management, attorneys with expertise in compli-

Audit and Supervisory Committee members.

ance and corporate legal affairs, a certified public accountant with exper-

Also, the Nomination Advisory and Remuneration Advisory committees havebusiness activities, reports audit results to the representative directors, andbeen established as advisory committees to the Board of Directors. The former

pany’s directors, excluding directors who are Audit and Supervisory Committee

The Internal Auditing Department shares information with the Audit andmembers, with both committees reporting their findings to the Board ofSupervisory Committee and the accounting auditor in a timely manner, sub-Directors. Further, both of these committees are chaired by outside officers.

mits reports to the Audit and Supervisory Committee as required, and promotes mutual coordination with the committee.

2 Management Strategy and Management Meetings

The Management Strategy and Management meetings are both held monthly
to deliberate, report on, and determine management policies and strategies
as well as to deliberate, make decisions, and report on important mattersrelated to business execution.

Further, with respect to the skills that are particularly important for thetise in financial accounting, and specialists in investor relations.

achievement of the current medium-term management plan, in addition to

In addition, the Company has established the Nomination Advisory

The Company has engaged Ernst & Young ShinNihon LLC to conduct fair,conventional abilities in the areas of business management, sales, andCommittee, which is chaired by an outside director, and the majority of

appropriate accounting audits. In addition, the Company receives timely

technological specialization, the Company emphasizes the appointment of

its members are outside officers. This committee deliberates on theadvice from a consulting lawyer when legal decisions are required.

directors who have financial expertise and an ability to communicate effec-

appointment of directors and reports its findings to the Board of Directors.

5 Accounting Auditor and Lawyer

tively with stock markets. Moreover, to ensure sound, sustainable growth48

Integrated Report 2022

Integrated Report 2022

49

Sustainability Management of SHIBAURA MACHINE

E

Reasons for the Appointment of Outside Directors
Years ofServiceName

Kiyoshi Sato

Seigo Iwasaki

Hiroshi Inoue

Kazumine
Terawaki

Independent

Independent

Independent

Independent

Chisa Hayakawa

Independent

4

3

3

2

16 of 16 (100%)

16 of 16 (100%)

16 of 16 (100%)

16 of 16 (100%)

16 of 16 (100%)

Yutaka Usami(Audit andSupervisory
Committee Member)

Akifumi Imamura(Audit and Supervisory
Committee Member)

Independent

Independent

Matrix of Directors’ Skills

Attendance at Board of
Directors’ Meetings

5

3

1

16 of 16 (100%)

12 of 12 (100%)

Areas of Expertise and Experience

Reasons for Appointment

Kiyoshi Sato’s character and expertise are impressive. He was appointed as an outside
director and an independent officer based on the expectation that he will ensure duties arebeing executed appropriately by providing recommendations and proposals in light of theextensive experience and expertise he gained while serving as an officer for other companies,
including executive positions in businesses overseas.
Seigo Iwasaki’s character and expertise are impressive. He was appointed as an outside
director and an independent officer based on the expectation that he will ensure duties arebeing executed appropriately by providing recommendations and proposals in light of theextensive experience and expertise he gained while serving as an officer for other companies.
Hiroshi Inoue’s character and expertise are impressive. He was appointed as an outside
director and an independent officer based on the expectation that he will ensure duties arebeing executed appropriately by providing recommendations and proposals in light of theextensive experience and expertise he gained while serving as an officer for other companies.
Kazumine Terawaki’s character and expertise are impressive. He was appointed as an outside
director and an independent officer based on the expectation that he will ensure duties arebeing executed appropriately by providing recommendations and proposals in light of theextensive experience and expertise he gained while serving as an attorney and as an outside
officer for other companies.
Chisa Hayakawa’s character and expertise are impressive. She was appointed as an outside
director and an independent officer based on the expectation that she will ensure duties are being
executed appropriately by providing recommendations and proposals in light of the extensive
experience and expertise she gained through performance of a wide range of operations in her
capacity as a certified tax accountant and a securities analyst.
Yutaka Usami’s character and expertise are impressive. He was appointed as an outside
director who is an Audit and Supervisory Committee member and an independent officer
because it is anticipated that he will provide a broad range of audit-related opinions thatreflect the extensive experience and expertise he gained while 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 was appointed as an outside
director who is an Audit and Supervisory Committee member and an independent officer
because it is anticipated that he will provide a broad range of audit-related opinions thatreflect the extensive experience and expertise he gained while serving as an attorney and as
an outside officer for other companies.

Compositions of the Nomination Advisory and Remuneration Advisory Committees
Name

G

S

Position

Nomination Advisory Committee

Remuneration Advisory Committee

Name
Yukio
IimuraShigetomo
Sakamoto
Akiyoshi
Kobayashi
Hiroaki Ota
KiyoshiSato
Seigo
Iwasaki
Hiroshi
Inoue
Kazumine
Terawaki
Chisa
Hayakawa
HiroshiTakahashi
YutakaUsami
AkifumiImamuraPosition

GenderChairmanMale

President, Chief Executive Officer,
Chief Operating Officer

MaleDirector, Executive Operating Officer

MaleDirector, Chief Financial Officer,­Executive Operating Officer

MaleOutside Director

Male

Outside Director

Male

Outside Director

Male

Outside Director

Male

Outside Director

FemaleDirector (Full-Time Audit and­Supervisory Committee Member)
Outside Director (Audit and­Supervisory Committee Member)
Outside Director (Audit andSupervisory Committee Member)

Corporate
management

Internal
Legal
Finance /control /affairs /Accounting
Governance Compliance

M&A /Alliances

Investor
relations / Manufacturing /Stakeholder
Development
relationsMarketingInternational
experience

Male
Male

Male

Note: The content of the above table does not represent all of the knowledge, experience, and abilities possessed by directors.

Policy on Training Directors
To enhance the knowledge and abilities of its directors and enable

external training for newly appointed presidents. Further, we provide

them to fulfill their roles and functions, the Company implements

outside directors with opportunities to deepen their understanding

Yukio Iimura

Chairmanthe following training programs. We organize external training spe-of the Company’s business, finances, and organization. In addition,

Shigetomo Sakamoto

President, Chief Executive Officer,
Chief Operating Officercifically designed for newly appointed directors. We also organize

training is provided for directors as needed.

Akiyoshi Kobayashi

Director, Executive Operating Officer

Hiroaki Ota

Director, Chief Financial Officer,
Executive Operating Officer

Kiyoshi Sato

Outside Director

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)

Shares Held for Purposes Other Than Pure Investment(Chair)(Chair)We believe that cooperative relationships with a range of companies

considering such factors as the purpose of holding shares, theare essential for the expansion and sustained development of our­benefits associated with holding shares, risks, and cost of capital.

businesses. The Company’s policy is to hold shares that are deemed

As a result of such verification, SHIBAURA MACHINE disposed ofstrategically necessary based on comprehensive consideration of

all shares of three companies in fiscal 2021. Also, in exercising ourimportance in terms of business strategy as well as business relation-

voting rights, we emphasize the verification of each agenda item

ships with business partners from the perspective of corporate value

with respect to the investee’s enhancement of corporate value overenhancement over the medium to long term. Annually, the Board of

the medium to long term and its stance on shareholder returns,

Directors verifies the appropriateness of holding individual shares­corporate governance, and social responsibility.

held for purposes other than pure investment by comprehensively

Agenda Items
Nomination Advisory Committee

Remuneration Advisory Committee

1. Personnel matters related to the Company’s directors
2. Personnel matters related to the Company’s representative directors and executive
directors
3. Plan for training candidates for the position of director
4. Personnel matters related to the Company’s executive officers
5. Personnel matters related to the Company’s the chief executive officer, the chief operating officer, and the chief financial officer
6. Establishment, revision, or abolition of important rules and regulations related to each of
the preceding items
7. O ther important personnel matters on which the Board of Directors seeks advice

1. The Company’s system for the compensation of directors
2. Specific amounts of compensation for individual directors of the Company, excluding
directors who are Audit and Supervisory Committee members
3. Establishment, revision, or abolition of important rules and regulations related to eachof the preceding items
4. Other important director compensation matters on which the Board of Directors seeks
advice50

Integrated Report 2022

Integrated Report 2022

51

Sustainability Management of SHIBAURA MACHINE

E

G

S

Internal ControlsCompensation of Directors
Monetary compensation claims are granted to eligible directors based on

Internal Control System

The stock compensation plan provides stock compensation to eligible

resolutions of the Company’s Board of Directors. All said monetary compen-

Based on our Corporate Principles, we believe that establishing and operating a system for proper business execution is an important management responsibil-­directors—namely, directors other than outside directors or directors who aresation claims are required to be contributed in kind to the Company as prop-

Audit and Supervisory Committee members—to increase the linkage between

erty contributed in kind. Restricted stock is granted based on the number ofity. Accordingly, the Group has set out the Fundamental Policy on Internal Controls and established capabilities to ensure the appropriateness of operations.

the compensation of eligible directors and the medium- to long-term perfor-

shares equivalent to the figure that results from dividing said monetary com-mance of the Company. It also promotes a shared interest among eligible

pensation claims by a price. This price is determined by the Board of Directors

directors and shareholders, with the aim of providing an incentive to achieve

based on the closing price of the Company’s shares of common stock at theGovernance of the Groupthe performance targets of the medium-term management plan, the Manage-

Tokyo Stock Exchange on the business day preceding the day of the resolu-

The SHIBAURA MACHINE Group has established the SHIBAURA MACHINE Group Basic Governance Policy with the aim of maximizing corporate value by build-ment Reform Plan, and sustainably enhance corporate value. The basic poli-tion of the Board of Directors but within a scope of avoiding prices that arecies in relation to the stock compensation plan are as follows.

unduly favorable to eligible directors. If trading was not conducted on the pre-ing an appropriate internal control system for the Group, heightening the efficiency of Group management, and strengthening Group management capabilities

Basic Policies in Relation to the Stock Compensation Planceding day, the closing price of the most recent business day is used. With
(1) W ith a view to increasing corporate value over the medium to long term

respect to the issuance and disposal of shares of the common stock of theby transforming into a highly profitable company and sustaining growth,Company, the Company and eligible directors conclude a service-based

the Company shall provide fixed compensation, in the form of basic com-restricted stock award agreement.
(2) Performance-Based Restricted Stockbased compensation subject to continuous service, (ii) cash bonuses

The performance evaluation period of performance-based restricted stock islinked to short-term performance, and (iii) stock compensation linked tothe medium-term management plan’s period, which is stipulated by the Com-medium- to long-term performance.

pany’s the Board of Directors. After the performance evaluation period, mone-compensation.
(3) To ensure that directors share with shareholders the benefits and risksof share price fluctuations, the proportion of stock compensation shallbe increased, and directors shall be encouraged to hold more shares.

Management of Risk and ComplianceTo guide its daily business activities and to position human life, safety, legal compliance, adherence to social norms, and sound ethics as first priorities, thement Rules with a view to building, maintaining, and promoting a risk and compliance management system that actively controls risks inherent in business activi-

incentive through the combination in appropriate proportions of (i) stock-by linking the Company’s medium-term management plan with stock

while advancing the management of risks and compliance. In accordance with this policy, the governance of the Group is being strengthened and improved.

SHIBAURA MACHINE Group has established its Corporate Principles and the Code of Conduct. In addition, we have set forth the Risk and Compliance Manage-pensation, as well as variable compensation that establishes a sound(2) A strong incentive to achieve performance targets shall be establishedIn addition, the internal control system is strengthened and enhanced by the Internal Auditing Department and corporate departments, which independently
conduct internal audits to confirm that internal controls are functioning properly.

tary compensation claims are granted to eligible directors based on themultiplication of two values: the compensation amounts established for the
positions of eligible directors and the degrees of achievement in relation to
performance indicators predetermined by the Board of Directors. All saidmonetary compensation claims are required to be contributed in kind to theCompany as property contributed in kind. Restricted stock is granted basedon the number of shares equivalent to the figure that results from dividing

Outside directors: To ensure their independence, all outside directors receive

said monetary compensation claims by a price. This price is determined bybasic compensation but do not receive performance-linked compensation.

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 precedingties 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
well as a supply chain whistleblower system for our business partners.
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.

Effectiveness Evaluation of the Board of Directors

Directors who are Audit and Supervisory Committee members: Such direc-

the day of the resolution of the Board of Directors but within a scope avoiding

tors only receive basic compensation given their role, which primarily entails

prices that are unduly favorable to eligible directors. If trading was not con-

The Company conducts evaluations of the effectiveness of the

In April 2022, a questionnaire was issued to all directors who

conducting legal compliance audits.

ducted on the preceding day, the closing price of the most recent business

Board of Directors with the aim of improving how it functions and,comprised the Board of Directors at the time. The anonymity of the

day is used. The issuance and disposal of shares of the common stock of theultimately, enhancing corporate value.

responses was ensured by having them sent directly to an external

Company is conducted, in principle, after the end of the last fiscal year of the

Details of the Stock Compensation Plan

In light of recommendations received from external organiza-organization. Based on aggregated results reported by the external(1) Service-Based Restricted Stockperformance evaluation period. With respect to the issuance and disposal of

The issuance and disposal of shares of the common stock of the Company

these shares, the Company and eligible directors conclude a performance-

tions, we conducted an effectiveness evaluation in the mannerorganization, analysis, discussion, and evaluation were conducted

is conducted every year, in principle, through service-based restricted stock.

based restricted stock award agreement.

shown in the chart below.

at a meeting of the Board of Directors held in May 2022.
A summary of the results of the aforementioned activities is as
stated below.

Results of Effectiveness Evaluation

Compensation of Directors in Fiscal 2021
Total Compensation by Type (¥ Million)
Total
Compensation(¥ Million)

Basic
Compensation

Bonuses

Directors (excluding Audit andSupervisory Committee Members)

191

140

(Of Whom, Outside Directors)(50)

Directors (Audit and Supervisory­Committee Members)

37

PerformanceBased Restricted
Stock
Compensation

Service-Based
Restricted Stock
Compensation

Directors(Persons)

28

—

22

9

(50)

(—)

(—)

(—)

(5)

37

—

—

—

4

(Of Whom, Outside Directors)

(19)

(19)

(—)

(—)

(—)

(3)

Total

229

178

28

—

22

13

(Of Whom, Outside Directors)

(69)

(69)

(—)

(—)

(—)

(8)

52

Integrated Report 2022

Results of Effectiveness Evaluation

Questionnaire Implementation

We believe that the Board of Directors is effective on the whole. Generally

All directors were asked to anonymously complete a questionnaire formulated with the assistance of an external consultant and under the editorial
supervision of a law firm with expertise in the field of governance.

bers comprising the Board of Directors, the number of outside directors

Questionnaire focuses(1) C omposition, administration, deliberations, and monitoring functionsof the Board of Directors(2) Dialogue with shareholders(3) Directors’ own initiatives
etc.

Third-party
evaluation
Based on the responsesof all directors, a thirdparty evaluation was
conducted by an­external consultant.

Analysis andassessment of
results
Based on the thirdparty evaluation, future
improvements weredeliberated by the
Board of Directors.

Responses topriority issues
Improvements were
implemented with reference to the deliberations of the Board of
Directors.

positive evaluations were received with respect to the number of memrelative to inside directors, prior notification of the schedules and agenda
items of meetings of the Board of Directors, communication between
inside directors and outside directors, understanding of agenda items inadvance, coordination among outside directors or Audit and Supervisory
Committee members and the Internal Auditing Department, and the performance of supervisory functions by outside directors.

Ongoing Tasks
Although the evaluation concluded that the Board of Directors had
improved with respect to follow-ups on the progress of the management
plan and the provision of feedback on dialogue with shareholders andinvestors, certain opinions stressed the importance of further deepening
deliberations on sustainability.

Integrated Report 2022

53

Board Members(As of June 30, 2022)

Chairman

Yukio Iimura

President, Chief Executive Officer
Chief Operating Officer

Shigetomo Sakamoto

Director and Executive Operating Officer
Security and Regulation Control Division General Manager, R&D Center
General Manager, and Sagami Plant General Manager
Overall responsibility for quality assurance

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 ofTokyo 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 Agency
Jan. 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 and Investor Relations Department
General Manager of Calbee, Inc.
Apr. 2014 Corporate Planning Department General Manager andInvestor Relations Department General Manager ofCalbee, 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)
Mar. 2022 Outside Director of Milbon Co., Ltd. (present position)
Apr. 2022 Managing Executive Officer and CFO 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)
Oct. 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 andSupervisory Board Member of ITOHAM YONEKYUHOLDINGS 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)

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
May 2017 Chairman of Japan Machine Tool Builders’
Association(general incorporated association)
May 2021 Senior Advisor of Japan Machine Tool Builders’­Association (general incorporated association)­(present position)

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 Manager of
the Company
June 2013 Director and Managing Executive Officer, Component
Business Unit General Manager, and Corporate­Planning Division General Manager of the Company
June 2016 Representative Director and Executive Operating­Officer, 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 Division andin charge of TQM Promotion Division of the Company
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 General­Manager 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
In charge of Corporate Administration 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 Tokyo­Electron 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 GASCo., 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
the Company
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 the Company
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 General­Manager, 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 Division of theCompany
Feb. 2020 Compliance Division General Manager of the Company
Apr. 2020 R&D Center General Manager, Sagami Plant General
Manager (present position), in charge of Administration Division, in charge of System Strategy Division of
the Company
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 Houlihan
Lokey, Inc.)
Mar. 2014 Audit and Supervisory Board Member of Mezzanine
Corporation
Aug. 2014 Audit and Supervisory Board Member of GCA FAS Co.,
Ltd. (currently G-FAS Corporation)
Feb. 2015 CFO and Managing Director of GCA Savvian Corporation (currently Houlihan Lokey, Inc.) Director of GCA
Savvian Singapore Private Ltd. (currently Houlihan
Lokey Advisers Singapore Private Limited)
Mar. 2015 Director, CFO and Managing Director of GCA Savvian
Corporation (currently Houlihan Lokey, Inc.)
Apr. 2017 Managing Director of GCA Corporation (currently
Houlihan Lokey, Inc.)
Apr. 2020 Executive Operating Officer of GCA Partners
Corporation (currently Houlihan Lokey, Inc.)
June 2020 Director of the Company
Aug. 2020 Director, Chief Financial Officer, Executive Operating
Officer, in charge of Corporate Strategic Planning­Division (present position)
June 2022 In charge of Corporate Administration Division of theCompany (present position)

54

Integrated Report 2022

Integrated Report 2022

55

Messages from the Outside Directors

numerous discussions with employees, which signif-

SHIBAURA MACHINE. During this time, the Company

icantly changed the employees’ mindset.

has undergone significant changes. Initially, theIn fiscal 2021, the Company posted favorable

Company had an easygoing corporate culture based

business results despite the COVID-19 pandemic.

on the assumption that as long as quality products

In the current social climate, predicting the future iswere produced, favorable results would follow. This

challenging. Amid a global trend toward decarbon-

culture has been changed by the strong leadershipization, what will the Company’s next mainstay be?

of the chairman and president, who set forth the

SHIBAURA MACHINE has the technological capabili-

Management Reform Plan in the form of a medium-ties to meet the new demand expected to accom-term management plan. Now, the focus is very muchpany decarbonization. It must work even moreon increasing profits. A testament to this Company-

closely and proactively with customers’ forward-

wide change in mindset is the solicitation of volun-

looking initiatives and develop new types of prod-tary retirement as part of efforts to reduce fixed

ucts and services. As the Company’s technologicalcosts. Reducing employees is not something thatcapabilities are sufficiently strong enough to earnsenior executives want to do. In implementing volun-customer trust, I believe the coming decarbonization

tary retirement, I feel that senior executives had

era is a positive for SHIBAURA MACHINE.

Hiroshi Inoue
Outside Director

The industry has been struggling against headwindsof the Company’s revenues is accounted for by over-stemming from the prolongation of both the COVID-19

seas markets, the recruitment and training of execu-

pandemic and the Russia–Ukraine situation. Difficul-

tives at overseas subsidiaries is a task we must

Since formulating the Management Reform Plan,

members of the senior management team are utiliz-

ties in procuring components and materials haveachieve going forward.

SHIBAURA MACHINE has been advancing manage-

ing various opportunities to receive explanations

ment reforms one a step at time. Moreover, execu-

and engage in useful discussions about future initia-

become an everyday occurrence due to the paralysis

As for the Sustainable Development Goals, in 2021

of logistics, while lockdowns have entailed restrictions

the Sustainability Committee was launched and began

tive officers provide detailed reports on the progress

tives. Solid progress is also being made in relation

on travel that have significantly impacted machinery

activities. In fiscal 2022, I expect this committee toof these reforms at each meeting of the Board of

to human resource strategy. In consultation withinstallation. Despite this environment, SHIBAURA

conduct full-fledged activities based on in-depth dis-

Directors. Although, of course, the impact of recent

labor unions, the Company is gradually establishing

MACHINE has energetically engaged in business activ-

cussions. The performance of the Company’s manufac-

dramatic changes in the external environment

an open corporate culture that allows a more diverse

ities, focusing on its mainstay lithium-ion battery sepa-

turing equipment is highly effective in reducing carbon

cannot be denied, the initiatives implemented underrange of personnel to play active roles. As an attor-

rator film production lines for electric vehicles.

emissions at customers’ production sites, and thethe Management Reform Plan are progressing rela-

ney with experience in duties related to humanCompany also plays a role in the production of environ-tively smoothly and yielding favorable results.

resource policies, immigration control, and security,

system is solid and managed satisfactorily. The Nomi-

ment-friendly plastics. With this in mind, I believe that

I expect the Company to utilize its technologicalI also make statements at meetings of the Board of

Kiyoshi Satonation Advisory Committee appropriately communi-

the SHIBAURA MACHINE can benefit the world

capabilities and expertise even more actively andDirectors from a variety of perspectives, including

cates with other in-house bodies and deliberates andthrough further technological development. At theeffectively in helping customers address environ-compliance, human rights, and economic security.

Outside Director

reports on the evaluation and appointment of directors

same time, I view the improvement of production lines

and executive officers. Given that an increasing shareand supply chains as a task to tackle going forward.

SHIBAURA MACHINE’s most important manage-

to favorable sales of large extrusion machines—ament issue is the advancement of the Management

field in which SHIBAURA MACHINE excels—and isI believe that stock markets expect SHIBAURA

over the past year with respect to efforts to further

Reform Plan, a medium-term management plan

driving the Company toward the achievement of the

MACHINE to steadily implement the Management

understanding of businesses and strategies. For

aimed at transforming into a highly profitable com-

medium-term management plan’s targets.

Reform Plan launched in 2020 and to enhance cor-example, members of the senior management teamporate value as a regenerated entity. At monthly

have become actively involved in investor relations

I believe that the Company’s corporate governanceKazumine Terawaki

mental, social, and governance issues, Therefore, all

Outside Directorpany. In my estimation, the Company has madeMeanwhile, the widespread introduction of elec-

steady progress during the first half of this plan’s

tric vehicles is forcing automakers to rapidly pursue

meetings of the Board of Directors, we monitor the

initiatives, and the number of investor relations

period. The Company has steadily improved its prof-changes aimed at realizing new batteries and lighter

progress of and engage in lively discussions on themeetings has risen. Also, the Company has orga-

itability by enhancing production efficiency throughautomotive bodies. Also, the global trend toward

plan’s initiatives. The COVID-19 pandemic and othernized factory tours. In particular, the use of virtual

the advancement of reorganization, optimized per-sustainability is making the development of sustain-

factors have changed the external environment inreality technologies and other innovations in factorysonnel assignment, other painful reforms, and byable technologies inevitable. Accordingly, the Com-ways that could not have been anticipated when the

tours has helped to clearly explain what differenti-

focusing more than ever on securing profit margins

pany will concentrate efforts on such emerging fields.

plan was formulated. Nonetheless, the Company

ates the Company from competitors and has been

has adapted to changes, advanced structural

well received. I hope that the Company will utilize

in order-taking activities. The progress of these

The Remuneration Advisory Committee, whichreforms is reported to each meeting of the Board

I chair, will consider setting compensation levels

reforms, and made sure-footed progress with initia-

investor relations activities as a way of encouraging

Seigo Iwasakiof Directors and monitored by outside directors.

that are commensurate with the progress of man-tives aimed at realizing the plan. With this in mind,

investors to reacknowledge its advantages and con-agement reforms as well as increasing the percent-

the Company deserves praise.

tinue conducting sound, high-quality dialogues with

Outside Director

carried out by all three in-house companies, higher

In addition to the aforementioned reforms being
demand for lithium-ion battery separator film has led

56This is my fourth year as an outside director of

Integrated Report 2022

age of compensation that is performance linked.

SHIBAURA MACHINE’s investor relations activities have seen significant change and improvement

them over the medium to long term.

Chisa Hayakawa
Outside Director

Integrated Report 2022

57

Management Strategy
by Company

Net Sales

Metal & Plastics Industrial
Machine Company

Overseas Sales Ratio¥75.5 billion

Strengths¥56.8
billion70%

Dispersal of resources due to diverse product lineup

Diverse lineup ranging from small to large products

High degree of reliance on specific markets for die casting machines o. 1 market share among Japanese manufacturers ofN
die casting machines xchange rate fluctuation risk associated with high percentage ofEoverseas sales

Film manufacturing equipment for all production line stages

75%

FY2021

Weaknesses

Global supply chain centered on four overseas plants

S

W

O



FY2021

Opportunities

T

Threats

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

Growing need for new environment-friendly materials

on injection molding machines and extrusion machines for molding plastic resins as well as die casting machines for castingAcceleration of investment aimed at introducing electric vehiclesE mergence of manufacturers of low-priced products

Global initiatives focused on the SDGs

D
 ecline in applications for internal combustion engines due to the shift to electric vehiclesG rowing trend toward plastic-free products due to marine pollution caused by plastic wasteE mergence of new technologies related to rechargeable batteries, including all-solid-statebatteries that can replace lithium-ion batteries

aluminum and magnesium. Primarily used in the automotive industry, the M&P Company’s products also contribute to a wide
range of other fields, including the telecommunications, optics, medicine, and food fields.

Business Management 

Main Products With manufacturing bases in Japan, China, Thailand, and India, we are advancing initiatives aimed atInjection molding machines

local production for local consumption by developing businesses and offering solutions through ourDie casting machinesbases around the world. We will provide the world’s No.1 casting and molding products and services toTwin-screw extruder

maximize the customer experience and value gained by purchasing our products in Japan and overseas.

Film manufacturing equipment

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

The automotive industry, which is the mainstay field of the M&P Company, is undergoing major

Extrusion machine (SFPU-30150W)

changes as electric vehicles are introduced with a view to society’s decarbonization. Capable of cateringto the need for the molding of lighter, stronger products that incorporate multiple colors and materials,
our production technologies—such as lithium-ion battery separator film production lines, injection mold-

Performance Summary 

ing machines, and die casting machines—will help the automotive industry advance into the CASE (connected, autonomous, shared, and electric) era. In addition, we will offer the best solutions to customers’

Amount of Orders Received / Net Sales

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

150

100

123.8
91.8
79.2

77.2
63.7 64.3
63.1

75.5

135.1
87.8

4.6
3.7

3.5

3

4.4

2

50

2018

2019

Amount of orders received

2020

2021

2022 (forecast) (FY)Net sales0

4.9Operating profit (left axis)

2019

5.2

4.9
1.1

2018

9

3.6

1
0

mental impact.
(%)

5
4

SDG-related issues through initiatives for biodegradable plastics and new materials that reduce environ-

3

1.8

2020

6

Value Creation 
Results and topics of fiscal 2021 measures
Injection molding machines: Despite a chal-

2021

2022 (forecast) (FY)0Operating profit ratio (right axis)

lenging external environment—which was characterized by difficulties in procuring components
and materials, rising costs, and the suspensionof operations at our plant in China because of
a lockdown—orders were favorable thanks to

Business Overview burgeoning demand in India, which is seeing

Injection Molding Machines

contribute to the further development of the automotive industry, including

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

the electric vehicle market, which is expected to grow.

lizing abundant know-how cultivated over many years as well as the latest
technologies, we provide products and services to many different industries,
such as automotive manufacturing, medicine, and information and communications. Going forward, we will utilize digitalization technologies to provide
products and services with even higher levels of added value. In conjunction
with these efforts, we will offer optimal solutions that help address environmental issues and other social issues.

Extrusion Machines
The M&P Company is a pioneer in the area of twin-screw kneading extruders.
We manufacture production equipment covering all extrusion product processes—from upstream operations through to downstream operations. For
plastic products, we offer twin-screw kneading extruders, sheet manufacturing equipment, film manufacturing equipment, coaters, and roll-to-roll equipment. We have been moving forward with the development of leading-edge

Die Casting Machines

technologies in relation to lithium-ion battery separator film production lines,

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

an area that is seeing rapid growth in demand. We are also developing

Japa­nese manufacturers of die casting machines, we actively provide

advanced technologies for film manufacturing equipment for the optical,

advanced technologies that meet the needs of the times, mainly in the auto-

food packaging, 5G, and medical Industries, coating, and imprinting. Throughmotive and telecommunications industries. We will exploit the lightness, highsuch initiatives, we will contribute to the realization of next-generation

rigidity, recyclability, and other advantages of die casting products totechnologies.

58

Integrated Report 2022

increasingly dynamic economic activity, andhigher demand for medium- and large-sizedExtrusion machines: With the transformation
resulting from automakers’ global introduction ofelectric vehicles, we are experiencing a rise inlarge-scale inquiries and orders for lithium-ion
battery separator film production lines, especiallyin China. Aiming to ramp up production, prioritized increasing monthly production capacity tofour production lines.

Initiatives for fiscal 2022 and beyond

electric machines in North America, which

We will advance digital transformation initia-

reflected an emerging decarbonization trend.

tives, such as digital twin-enabled improve-

Further, we proceeded with the reorganization

ments in quality, cost, and delivery. Also, we willof domestic and overseas production bases bycontinue making investments aimed at improv-

completing the transfer of the production of

ing operational efficiency and profitability.

small and medium-sized electric machines toWith respect to injection molding machines,

Thailand and China and by expanding our plant

we will enhance and expand production basesin India.

and increase their efficiency so that we canDie casting machines: We won orders as aprovide optimal products mainly for the North

delay in the recovery of domestic demand was

American, Chinese, and Indian markets.

outweighed by a combination of new demandAs for die casting machines, the Company will

related to electric vehicles in East Asia centeredendeavor to win more orders for equipment thaton China—which reflected the global introduc-

facilitates the introduction of electric vehicles totion of electric vehicles—and growth in demand

the automotive market and develop new machinefor die casting machines equipped with electri-models that help reduce environmental impact.

cal die locking systems that realize superior

Regarding extrusion machines, we will raise pro-productivity and environmental performance.

duction capacity to meet major orders for lithium-ion battery separator film production lines.

Integrated Report 2022

59

Management Strategy
by Company

Net SalesOverseas Sales Ratio

Strengths
 echnical capabilities for the specifications of ultra-large, special-purpose, andTcustom products

Machine Tools Company¥23.5 billion

 esources that enable production of ultra-large products through toRhigh-precision products

53%

FY2021

Dispersal of resources due to diverse product lineup

 bility to develop world-class technologies that enableA
leading-edge nano-order processing¥12.4
billion22%

Weaknesses
Low percentage of overseas sales

S

W

O



FY2021

Opportunities
The Machine Tools (MT) Company contributes to the advancement of industries around the world by manufacturing, selling,
servicing, and 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 machin-Increasing demand for systemization and the introductionof the IoT to save labor and improve productivity

TIncreasing investment in new environment-friendly infrastructure and energy

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

Growth in new demand accompanying the shift to electric vehicles

ery; die, mold, and component machining; high-precision molding for the lenses of smartphone and vehicle-mounted cameras; and glass lens molding.

Main Products Business Management 
Many customers want to heighten their production efficiency by minimizing the movement of personnel

Double column type machining centersthrough the introduction of labor-saving measures, unmanned operations, and remote maintenance, andBoring machines

we must maintain capabilities for catering immediately to such customers. Accordingly, we will analyze

High-precision aspheric andcustomer needs and continue optimizing our product portfolio.

free-form surface Grinders

Double column type machining
center (MPC-E II)

Boring machine (BTD-110H.R16)

Further, by circulating customer feedback in-house and setting benchmarks, we will advance theHigh-precision aspheric and free-form surface
grinder (ULC-100F (S))

development and marketing of products aimed at realizing the SDGs. For large machine tools, we will
foray into fields where infrastructure projects are driving growth, such as automobiles, aircraft, energy,
and environmental initiatives. As for regions, in addition to the mainstay regions of North America andPerformance Summary 

China, we will strengthen our presence in India and Europe to raise the percentage of exports andincrease the scale of our business. In addition, through the “SHIBAURA DX” initiative—which is transform-

Amount of Orders Received / Net Sales

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

40
30

31.3
27.3

34.4

29.6
22.8
17.4

20

20.8

28.7
23.6

24.2

0

10

–0.6

0

–1.2

2018

2019

2020

2021

2022 (forecast) (FY)

Amount of orders received
Net sales
Note: N et sales, operating income, and the operating margin include intersegment
transactions.

in such front-end processes as marketing and design—we will evolve the large special-purpose machines
(%)

0.9

1.2
0.6

ing our entire manufacturing process and making it more efficient by leveraging advanced technologies

0.3
–0.1

3.7

2018

3

0.0

1.0

0

0.0

–0.5

Operating profit (left axis)

6

2019

purpose machines.
We will continue to hone our world-class technologies for high-precision machining and step up
the development and sales of high-precision machine tools for advanced businesses, such as smartphones,
automotive optical components, and semiconductors. Also, we will increase the scale of the high-­
precision machine tools business by adding Europe’s precision components market to our current

–4.0
–0.8

–3

2020

–6

2021

that are our forte into machines with high levels of efficiency that are comparable with those of general-

2022 (forecast) (FY)Operating profit ratio (right axis)­overseas markets—which are dependent on China—and by entering new medical markets.

Value Creation 
Results and topics of fiscal 2021 measures

Business Overview 

Initiatives for fiscal 2022 and beyond

By applying conventional technology for theFor machine tools, we will focus on fields thatfriction stir welding of identical materials topromise growth, such as automobiles, aircraft,

realize friction stir welding of dissimilar materi-energy, and the environment. Most recently, weals, we developed a technology capable of ahave been helping customers improve their

High-Precision Machine Tools

kind of welding that is difficult to achieve withproduction efficiency by advancing the devel-

The Group contributes to the advancement of leading-edge markets by pro-conventional welding technology.

opment of a large high-speed multipurpose

viding high-precision aspheric surface grinders for the molds of lenses forSHIBAURA MACHINE advanced the develop-

machine that is designed to improve productiv-

smartphone and vehicle-mounted cameras and endoscope lens die machin-ment of a high-speed five-axis double column

ity in the manufacture of large components for

Machine Tools

ing; high-precision optical glass molding press machines for molding lenses

type machining center that realizes the extremely

bigger wind power and hydroelectric power

We support manufacturing infrastructure through the products we market,

for vehicle-mounted, security, and mirrorless cameras; and high-precision

precise shapes required for automobile weight

generation facilities—which are being estab-

which include ultra-large machine tools for the energy field, social infrastruc-slicing machines for slicing semiconductor wafers.

reduction.

lished to increase electricity generation inAgainst the backdrop of demand for renewable

anticipation of electricity supply shortages.

energy, we grew orders and sales of machineWith respect to high-precision machine tools, wetools for wind power generation equipment.

will continue enhancing the accuracy of high-The promotion of autonomous driving was

precision aspheric surface grinders, thereby

accompanied by an increase in orders for anddeveloping equipment that meets market

sales of high-precision machine tools for vehi-

demand for increased precision and efficiency,

cle-mounted camera lens molds.

which includes demand for equipment that

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

machining centers for machining aircraft components; and roll grinding

cial operations for manufacturing, selling, servicing, and retrofitting machinemachines used in the high-precision grinding of mill rolls for steel.

tools for a broad range of industries, from large machine tools that serve as
the “mother machines” with which machine tool manufacturers produce theirproducts, through to high-precision machines that are required worldwide forthe manufacture of optical components.

ture, industrial machinery, and machine tools; double column type machining
centers and horizontal boring and milling machines for the automotive industry, transportation equipment, and construction machinery; large verticalboring and turning mills for renewable energy power generation equipment
and aeroengines; bridge type multipurpose machines; horizontal high-speed

Retrofitting Business
Available for our machines and machines manufactured by other companies,
retrofitting is an environment-friendly method of extending the life cycles ofexisting machines and improving their production efficiency and precision.

improves the efficiency of front-end processes.

60

Going forward, we will raise our production
Integrated Report 2022

capacity for high-precision machine tools,
which promise further growth.

Integrated Report 2022

61

Management Strategy
by Company

 Overseas Sales Ratio

Net Sales

Control Systems Company

Strengths¥1.9
billion¥7.6 billion

FY2021

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

26%

7%

WeaknessesC ontrol technology know-how cultivated in many different areas inside and outside the Company

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

S

W

O

T

FY2021

Opportunities

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

Increasing need for unmanned and labor-saving systems

Company has adaptability that is based on a thorough knowledge of all kinds of manufacturing sites. We use these advan-

 rowing demand for semiconductor manufacturing equipment due to theGspread of 5G and 6G next-generation telecommunications

tages to contribute to automation, labor-saving, and efficiency improvement in a wide range of operations at manufacturingRising demand for new robots due to the shift to electric vehicles

Threats
 estrictions due to stricter standards and regulations for safety andR
information security in each country
 engthening of delivery times and higher costs for components andLmaterials, including semiconductor components

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

sites, including assembly, inspection, and conveyance. Also, through the creation and expansion of control solution businesses in the global market, we are contributing to the realization of a sustainable society.

Business Management 

Main Products With regard to industrial robots, we will start full-scale production of SCARA robots at our plant in China

Industrial robots

to increase our share of the country’s market. In particular, we will strive to win orders from major electric

Servo systems, Linear motors

vehicle-related customers for the THE800 and THE1000, which are new models, and TS5000, which is a

FA controller

new controller. In the domestic market, the CS Company will collaborate with the M&P Company and the
MT Company to develop robot-enabled system packages that meet demand for the automation of pre-Engineering solutions

Industrial robot (THE1000)

Servo system (NCBOY-120)

and post-processes. Further, in fiscal 2022 we will market dual-arm collaborative robots—which are being

Controller (V70)developed from a market-oriented perspective—and establish the value of these products. We will further
increase the scale of servo system sales by providing products and services that facilitate the introduc-

Performance Summary tion of electric vehicles, which is set to become a trend in various industries going forward. Also, theCompany will expand the engineering solutions business by meeting the increasing demand for in-plant

Amount of Orders Received / Net Sales

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

12
9

10.6
9.2

9.1
6.4

6.1

7.3

9.2 8.7

0.6

0.4
–0.4

–0.5

–0.0

–0.0

5.7

ing and depalletizing equipment as well as equipment for the automatic unpacking of cardboard packages.
(%)
6

0.5

3

0

6

0

–0.6

3
0

4.6

1.2

logistics through the construction and selling of logistics conveyance systems, which incorporate palletiz-

2019

Amount of orders received

2020

2021

2022 (forecast) (FY)Net sales

–1.2

–3

2019

Operating profit (left axis)

2020

2021

2022 (forecast) (FY)–6

Operating profit ratio (right axis)

Note 1: A s of fiscal 2020, the classification of industrial robots and electronic control systems has been changed from the Others segment to the Control Systems segment.
Note 2: N
 et sales, operating income, and the operating margin include intersegment
transactions.

Business Overview We develop various types of industrial robots, including SCARA, cartesianhigh-precision stages that meet customer needs—from ultra-large stages tocoordinate, painting, and vertical multi-articulated robots. Our robots are

small stages used in semiconductor manufacturing equipment—by exploitingused for numerous conveyance and assembly applications at the manufac-

know-how gained from our long experience in the development and manufac-

turing sites of smartphones and electronic devices, electric vehicle batteries,

ture of large machine tools. In addition, the CS Company offers automation

and automotive components. In response to the increasing diversity andsystems best suited to solving the various issues that our customers face,complexity of work, we are also currently developing collaborative robots,

including the designing of production line automation as well as production

intelligent robots, and IoT-enabled robots. Used in a wide range of equipment,

line labor-saving and acceleration. Also, over many years, for our own prod-

our servo systems maintain high precision and stable performance evenucts, we have developed and manufactured high-performance controllers,in harsh environments and improve cycle time by reducing settling time.

which help heighten the performance and functionality of machine tools andMeanwhile, we provide linear motors suitable for building high-speed,

various types of molding machines.

Value Creation 
Results and topics of fiscal 2021 measures

Initiatives for fiscal 2022 and beyond

We launched THE800 and THE1000, which areWe will grow sales in the electric vehicle

large, highly portable SCARA robots that cater

rechargeable battery industry of the newly

to the need for manufacturing equipment forcommercialized THE800 and THE1000 SCARA

electric vehicle rechargeable batteries.

robots.

By incorporating the new high-speed high-In engineering solutions, we will further

precision THE600 SCARA robot into customers’

increase sales by proposing systems thatscrew tightening equipment, we helped

cover multiple in-plant logistics processes

improve the efficiency of stable screw tighten-

from upstream operations through to down-

ing operations in the manufacture of smart-stream operations, focusing on equipment forphones and automotive electrical components.

palletizing and depalletizing and equipment

We completed the transfer of SCARA robot

for the automatic unpacking of cardboard

production to our plant in China.

packages.

We expanded our engineering solutions busi-

In proposing composite molding systems

ness by developing new customers throughthe introduction of in-plant logistics equipment, such as palletizing equipment andequipment for the automatic unpacking of
cardboard packages.

compatible with carbon fiber reinforced plastic—
which help realize lighter weight automobiles—
we will expand system packages that use
robots to meet needs related to the automation of pre- and post-processes.
In line with various industries’ introduction ofelectric vehicles, we aim to further increase
sales of servo systems and establish capabilities for their mass production.

62

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63

Corporate Data

Financial and Non-Financial Highlights
Consolidated Financial Highlights

Non-Financial Highlights

Orders Received / Net Sales

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

(%)

100

100

164.2

180

120

116.7
94.2

61.3

107.7

88.6 92.6

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

(%)

4,000

71.2
66.1

51.7

3,360

3,000

55.9

52.6

50

Employees / Non-Japanese Employees (Consolidated)

50

3,081
27.7

27.0

3,049
29.0

2,000

40

16

30

12

20

8

4.2

60
1,000

0

Orders received

2019

2020

2021

(FY)

0

2020

(%)

3.9

6.0

3.0

(FY)

2021

0

Overseas sales ratio (right axis)

4

90

3

60

(%)

3.5

1.5

0.4
0.3
2019

Operating profit (left axis)

2020

(FYE)

0

0

904
906(right axis)
Non-Japaneseemployees

83.5

82.1

12

100

2019

(FY)

8

75

67.2
56.2

62.9

1.5

30

4

50

1.0

1

0

0

25

0.5

Operating profit ratio (right axis)

–30

2019

Net worth (left axis)

2020

4.8

2020

2021

1.16

0.35
(FY)

2021

0

–4

2019

2020

2021

(FY)

0

2019

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

CO2 Emissions / Unit Requirement(Yen)(%)(Billions of yen)

(t)

(t)

100

150

75

2.7

3

2.3
2
100

48.6
75.0

85.0

Dividend per share (left axis)

24,7102.2
1.7

21,000

1.8

25

2019

(FY)

595

23,346645(t / billion yen)

1,000

28,000750

21,00040

24,655

21,10820,836

689

30

20.9

14,000500

14,000

7,000

250

7,000

0

0

22,136

22.5
20.5

20

1

50

0

1.7

(Cumulative number of models)
28,000

50

28.0

2021

Return on equity (right axis)

Capital Investment / Research and Development Costs

200

0.00

2020

Dividend per Share / Dividend Payout Ratio
199.3

(FYE)

Lost Time Injury Frequency Rate (Non-Consolidated)

2

0

4.8

Ratio of Woman in Management Positions
Ratio of female employees

–3.4
2021

12.9

2.0

4.6

3.0

2021

4

12.9

(%)

8.6

4.2

2020

10

Acquisition Rate of Paid Leave (Non-Consolidated)(Billions of yen)

87.0

2019

0

Employees (left axis)

Net Worth / Return on Equity(Billions of yen)

0

2019

Overseas sales (left axis)

Net sales

Operating Profit / Operating Profit Ratio

4.5

12.9

2020

2021

Dividend payout ratio (right axis)

(FY)

0

0

Capital investment

2019

2020

Research and development costs

2021

(FY)

0

2019

2020

2021

(FY)

CO2 emissions reduction due to environmentally conscious products (left axis)

10

2019

CO2 emissions (left axis)

2020

2021

(FY)

0

Unit requirement (right axis)

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

64

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65

Corporate Data

10-Year Financial Data (Consolidated)
Millions of yen
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

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

107,777
32,515
30.2
4,236
3.9
4,544
4.2

7,891

4,444

4,312

4,806

1,776

5,016

4,079

7,338

(2,898)

3,725

6.5

3.9

3.5

4.1

1.6

4.3

3.5

6.3

(3.1)

3.5

112,081120,221

124,754

120,021117,021

128,139

134,501

94,224

88,619164,277

142,239
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
14,390166,989
83,51550.0
14,217

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)

0.69
2.4
4.6

7,435
(2,195)
5,239(3,003)38,3273,024(1,509)1,515(1,684)
41,279(457)(1,281)(1,739)(774)
40,208

2,781
2,252
5,034
(1,761)42,932

9,948(2,983)
6,965(19,089)
30,060

6,813(3,921)
2,892(2,102)30,798(2,176)(1,493)(3,669)(1,785)25,592

5,312
19,77225,085(1,964)48,011192(1,537)(1,344)(4,956)42,417

11,299(1,264)
10,035(2,108)51,71046,304
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
92,63555.9

36,49017,06653,214
1,006
107,777
66.1

769
0.6
2,065
1.7
1,566

1,766
1.6
1,840
1.6
1,551

2,193
1.8
1,965
1.6
1,663

1,547
1.3
1,756
1.5
1,668

1,335
1.2
1,730
1.6
1,648

4,687
4.0
2,049
1.8
1,899

1,195
1.0
1,868
1.6
1,835

1,741
1.5
1,781
1.5
2,378

1,799
1.9
1,755
1.9
2,218

1,810
1.7
1,952
1.8
2,771

1.3

1.4

1.3

1.4

1.5

1.6

1.6

2.0

2.4

2.6

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
–

1,811
48.6

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 to parent
company shareholders
Net profit (loss) in this term attributable to parent
company shareholders / sales (%)
Amount of orders received
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 (used in) 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 (%)
Capital Investment, Depreciation, ­Research andDevelopment Costs
Capital investment
Ratio of capital investment to net sales (%)
Depreciation
Ratio of depreciation to net sales (%)
Research and development costs
Ratio of research and development costs to
net sales (%)
Shareholder Returns
Total amount of dividends
Dividend payout ratio (%)

Yen
Per Share InformationNumber of shares* outstanding at end of period(thousand shares) excluding treasury stocks
Net income per share
Dividend per share

152,032

152,029

152,025

152,021

120,690

120,682

24,13624,13524,14624,154

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

154.2775.0

Note: As royalty income was changed from recognition in other income to recognition in net sales in fiscal 2013, the figures for fiscal 2012 have been retroactively adjusted.
* The Company executed a one-for-five consolidation of shares of common stock effective from October 1, 2018.

66

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67

Corporate Data

Corporate Information

Domestic Offices and Plants ( Headquarters

Headquarters

2-2, Uchisaiwaicho 2-Chome, Chiyoda-ku, Tokyo 100-8503, JapanNUMAZUHEADQUARTERS

2068-3, Ooka, Numazu-shi, Shizuoka-ken, 410-8510, Japan

TOHOKU BRANCH

2-11-2, Yaotome, Izumi-ku, Sendai-shi, Miyagi-ken 981-3112, Japan

CHUBU BRANCH

5-307, Kamiyashiro, Meito-ku, Nagoya-shi, Aichi-ken 465-0025, JapanSHIBAURA MACHINE CO., LTD.

KANSAI BRANCH

Mainichi-Intecio Bldg., 3-4-5, Umeda, Kita-ku, Osaka-shi, Osaka
530-0001, JapanTOKYO HEADQUARTERS

KYUSHU BRANCH

2-3-23 FMT Enokida Bldg., Hakata-ku, Fukuoka-shi, Fukuoka-ken
812-0004, Japan

TAKASAKI OFFICE

48 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

HIROSHIMA OFFICE

5-17-5 Midorii, Asaminami-ku, Hiroshima-shi, Hiroshima-ken
731-0103, Japan

ONOMICHI OFFICE

4778-1 Takasu-cho, Onomichi-shi, Hiroshima-ken 729-0141,
Japan

NUMAZU HEADQUARTERS andNUMAZU PLANTNUMAZU PLANT

2068-3, Ooka, Numazu-shi, Shizuoka-ken 410-8510, Japan

HAMAMATSU OFFICE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

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
Founded December 1938
Established March 1949

Date of Establishment

Plants) OKYOT
HEADQUARTERS(As of March 31, 2022)
Company Name

Branches and Business Offices

Capital¥12,484 million

Number of Employees

Consolidated: 3,049 (Non-Consolidated: 1,664)

TAKASAKI OFFICE
KYUSHU BRANCHKANSAI BRANCH

Stock-Related Information
Stock ticker code

6104

Stock listing

Prime Market, Tokyo Stock Exchange

GOTEMBA PLANT

ONOMICHI OFFICEHIROSHIMA OFFICE

Shareholder registryadministrator

Sumitomo Mitsui Trust Bank, Limited

Minimum trading unit

100

Aggregate number ofauthorized shares

72,000,000

Aggregate number ofoutstanding shares issued(As of March 31, 2022)

29,977,106(including treasury stock: 5,822,705)

Number of shareholders(As of March 31, 2022)

10,697 (decrease of 3,013 persons
from the end of the previous fiscal year)

35.61 %

Individuals and others(including treasury shares)

10,675,448 shares

2.65 %

Foreign institutions and individuals

28.86 %SHIBAURA SEMTEK CO., LTD.

2068-3, Ooka, Numazu-shi, Shizuoka-ken 410-8510, JapanSHIBAURA SANGYO CO., LTD.

2068-3, Ooka, Numazu-shi, Shizuoka-ken 410-8510, Japan

Overseas Affiliates ( Sales and Service Offices
East Asia

8,650,977 shares

Other Japanese companies

SHIBAURA MACHINE (SHANGHAI) CO., LTD. (CHINA)Southeast Asia

792,920 shares

SHIBAURA MACHINE（SHENZHEN) CO., LTD.
(CHINA)SHIBAURA MACHINE (THAILAND) CO., LTD. (THAILAND)

PT. SHIBAURA MACHINE INDONESIA (INDONESIA)

1,150,897 shares

SHIBAURA MACHINE INDIA PRIVATE LIMITED (INDIA)
Europe and Americas

Shareholder nameSHIBAURA MACHINECOMPANY, AMERICA(U.S.)SHIBAURA MACHINE（SHANGHAI) CO., LTD. (CHINA)SHIBAURA MACHINETAIWAN CO., LTD.
(TAIWAN)SHIBAURA MACHINE VIETNAM COMPANY LIMITED (VIETNAM)

SHIBAURA MACHINE MANUFACTURING (THAILAND) CO., LTD. (THAILAND)

Major Shareholders (As of March 31, 2022)

SHANGHAI SHIBAURA
MACHINE CO., LTD. (CHINA)SHIBAURA MACHINE SINGAPORE PTE. LTD. (SINGAPORE)

Securities companies
Note: Treasury shares are included.

SHIBAURA MACHINEMEXICO, S.A. DE C.V.
(MEXICO)SHIBAURA MACHINE EUROPE S.R.L. (ITALY)SHANGHAI SHIBAURA MACHINE CO., LTD. (CHINA)SHIBAURA MACHINE TAIWAN CO., LTD. (TAIWAN)

Financial institutions

29.05 %

Manufacturing Offices)

SHIBAURA MACHINE (SHENZHEN) CO., LTD. (CHINA)

8,706,864 shares

As of March
31, 2022

267-2, Nishi-sawada, Numazu-shi, Shizuoka-ken 410-0007, JapanTOEI ELECTRIC CO., LTD. 131, Matsumoto, Mishima-shi, Shizuoka-ken 411-8510, Japan

Distribution of Shares by Shareholder Type3.84 %TOKYO HEADQUARTERS
SAGAMI PLANT

Domestic Affiliates
SHIBAURA MACHINEENGINEERING CO., LTD.

TOHOKU BRANCH

CHUBU BRANCHSHIBAURA MACHINEVIETNAM COMPANY
LIMITED (VIETNAM)

SHIBAURA MACHINE COMPANY, AMERICA (U.S.)SHIBAURA MACHINE MEXICO, S.A. DE C.V. (MEXICO)

Number of shares held
(thousands of shares)

Percentage of shares held (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

4,033

16.70

Custody Bank of Japan, Ltd. (Trust Account)

2,049

8.48

MSIP CLIENT SECURITIES

880

3.64

Shizuoka Bank, Ltd.

596

2.47

BNYM AS AGT/CLTS NON TREATY JASDEC

559

2.32

Shibaura Machine Employee Stock Ownership Association

552

2.29

Mitsui Sumitomo Banking Corporation

536

2.22

Shibaura Machine Suppliers’ Stock Ownership Association

522

2.16

GOLDMAN SACHS INTERNATIONAL

411

1.70

BBH FOR GLOBAL X ROBOTICS AND ARTIFICIAL INTELLIGENCE ETF

383

1.59

Note 1: Although Shibaura Machine holds 5,822,705 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.

SHIBAURA MACHINESINGAPORE PTE. LTD.
(SINGAPORE)

SHIBAURA MACHINE DO BRASIL COMERCIO DE MAQUINAS LTDA. (BRAZIL)SHIBAURA MACHINE EUROPE S.R.L. (ITALY)SHIBAURA MACHINE
INDIA PRIVATE LIMITED(INDIA)SHIBAURA MACHINE(THAILAND) CO., LTD.
(THAILAND)SHIBAURA MACHINEMANUFACTURING(THAILAND) CO., LTD.
(THAILAND)PT.
SHIBAURA
MACHINEINDONESIA(INDONESIA)SHIBAURA MACHINE DO
BRASIL COMERCIO DE
MAQUINAS LTDA.
(BRAZIL)

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/

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