ANNUAL REPORT 2018Year ended March 31, 2018

ANNUAL REPORT 2018
ProfileShibaura Mechatronics was established in 1939 as Shibaura Engineering Works Co., Ltd. Initially, our primary focus was on
the motor business, but in 1998 we struck out in a new direction, and reestablished ourselves as a producer of manufacturing
equipment for flat panel displays (FPDs) and semiconductors. We also took on a new name, Shibaura Mechatronics Corporation.
Extensive know-how and skills we have cultivated over many years guide us in delivering total solutions in areas as diverse as
high-accuracy mechatronics, cleaning, vacuum processing, sputtering, etching and bonding technologies. Our capabilities range
from the development of manufacturing equipment for FPDs, semiconductors, electronic components and optical thin films, to theprovision of comprehensive service support.

History
1932
Tokyo Electric Company

1939

1949

1991 1996

Oct.,1998

Tokyo Shibaura Electric Co., Ltd. (now, Toshiba Corporation)

Shibaura Engineering Works Co., Ltd.

(Industrial Mechatronics Business)

Toshiba Automation Co., Ltd.

Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Toshiba Mechatronics Co., Ltd.

Manufacturing equipment for FPDs,
semiconductors and others

Shibaura Engineering Works Co., Ltd.
Motors, manufacturing equipment for
FPDs and semiconductors, and others

Contents
Financial Highlights・ ・・・・・・・・・・・・・・・・・・01

To Our Shareholders・ ・・・・・・・・・・・・・・・・・・02

Financial Review・・・・・・・・・・・・・・・・・・・・・03

Forward-Looking Statements
This annual report contains forward-looking statements concerning Shibaura
Mechatronics' future plans, strategies and performance. These forward-looking
statements are not historical facts, rather they represent assumptions and beliefs

Financial Section・ ・・・・・・・・・・・・・・・・・・・05

based on data currently available. Furthermore, they are subject to a numberof risks and uncertainties that, relate to economic conditions, worldwide megacompetition in the electronics business, customer demand, foreign currency
exchange rates, tax rules, regulations and other factors. Shibaura therefore

Directors, Vice Presidents and Auditors・ ・・・・・・・・・・・48

Investor Information・ ・・・・・・・・・・・・・・・・・・49

wishes to caution readers that actual results may differ materially from our
expectations.

Financial Highlights
Year ended
March 31,2018

Year ended March 31,
2018

2017

2016

2015

2014

(Thousands of
U.S. dollars)(Note 1)

(Millions of yen)

Consolidated

Net sales￥ 49,257		 ￥ 42,737		 ￥ 45,550		 ￥ 43,799		 ￥ 35,165
Orders received		 53,355
42,651 		45,077 		45,300 		40,000
Operating income 		 2,498 		 1,500 		 1,292 		 1,022 		
736
Net income 		 1,747 		
931 		
743 		 697			
387$ 463,637
			 502,212
			 23,512
			 16,442

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,406		1,126		2,492		

1,566		1,222		2,210		

1,411		1,536		2,065		

1,271		797		1,856		

1,359
1,195
1,726

			 13,233
			 10,603
			 23,459

Total assets		 59,939		

53,721		

56,253		

54,720		

47,602

			 564,190

Net assets		 16,129		

16,533		

15,675		

16,058		

15,064

			 151,818(yen)(U.S. dollars)￥ 36.58 		 ￥ 18.84		 ￥ 15.04		 ￥ 14.11		 ￥Net income per share

Number of employees		

1,207		

1,202		

1,177		

1,174		

7.83

$

0.34

1,210

		

1,207

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of 106.24 = U.S.$1.00, as of March 30, 2018.

Net Sales(¥Billions)

Orders Received(¥Billions)Operating Income(¥Billions)

Net Income(¥Billions)

53.4
43.8

45.5

49.3
45.3

42.7

45.1

42.7

40.0

35.2

2.5

0.7
'14

'15

'16

'17

'18

'14

'15

'16

'17

'18

'14

1.0

1.3

1.7

1.5
0.4

'15

'16

'17

'18

'14

0.7

0.7

0.9

'15

'16

'17

'18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201801

To Our Shareholders

We will accelerate business structural reform initiatives and also
continue to strengthen our management structure.
We saw positive growth and results in Shibaura Mechatronics
Group’s key businesses in FY2017. In the FPD (Flat Panel
Display) industry capital investment remains active, mainly in
China, for large-sized panels to meet the trend to larger, higher
definition TVs. This was alongside continued capital investment
for small and medium-sized panels, largely for OLEDs (organicEL) for smartphones.
In the semiconductor industry, aggressive capital investment
continued, on increased demand for servers for data centers,
etc. In addition, capital investment in China continued togrow, and active capital investment by OSAT (outsourced
semiconductor assembly and test companies) also continued.
Against this background, our results for FY2017 were as
follows.
In respect of orders received, both FPD and semiconductors
performed well, reaching 53,355 million yen. Net sales
increased on strong orders received, and totaled 49,257
million yen. Operating income increased to 2,498 million yen,
on factors that included increased net sales, changes in the
net sales composition and our strengthened management
structure.

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

Forecasts indicate that the business environment in FY2018 will
be generally favorable.
In the FPD industry, some limited adjustments are expectedin capital investments for small and medium-sized panels for
smartphones, but forecasts show continued capital investments
for large panels, mainly in China, sustained by the continuing
trend to larger sized, higher definition TVs.
The semiconductor industry is also expected to see favorable
capital investment, driven by the expanded application ofsemiconductors and other factors. In this connection, capital
investment in China is expected to expand.
The range of use of vacuum application equipment is expected
to expand in the automotive market and IoT markets.
In these circumstance, Shibaura Mechatronics Group willfurther accelerate the business restructuring that we have been
pursuing, and also continue to strengthen our management
structure.

Shigeki Fujita
Representative Director
President and Chief Executive Officer

Financial Review
Results Summary

mainly in automotive-related equipment and electronic

In FY2017 Shibaura Mechatronics recorded orders received

net sales declined as a result of changes in customer capitalof 53,355 million yen (a year-on-year increase of 25.1%), net

investment plans.

sales of 49,257 million yen (a year-on-year increase of 15.3%),

The division as a whole saw increases in both orders

operating income of 2,498 million yen (a year-on-year increase

received and net sales, and segment profit also increased.

component-related equipment, both orders received andof 66.5%), ordinary income of 2,353 million yen (a year-on-yearincrease of 107.8%), and net income of 1,747 million yen (a yearon-year increase of 87.6%).
The Results for each business segment were as follows:

1. Fine Mechatronics Segment
Net sales were 26,995 million yen, an increase of 2.4%
against the previous year, and segment profit was 1,108
million yen, an increase of 221.7%.
In FPD front-end processes, orders received for both largesized panels and small and medium-sized panels performed
well. In net sales, we saw a slight decrease in the first half,
the result of a decline in orders received during the first halfof the previous year, but an increase in the second half.
In semiconductor front-end processes, orders received for
China increased significantly, and both orders received andnet sales increased.
The division as a whole saw increased orders received andnet sales. In addition to the increase in net sales, changes intheir composition, and a strengthening of the management
structure, contributed to a significant increase in segment
profit.

3. Vending Machines and Systems Segment
Net sales were 2,057 million yen, an increase of 0.6%
against the previous year, and segment profit was 52 million
yen, a decrease of 37.1%.
Although net sales of new products were sluggish, mainstay
ticket vending machines, general-purpose vending
machines and card equipment saw slightly expanded sales
that increased net sales for the division as a whole.
Despite this, segment profit decreased due to increased
development costs and other factors.
4. Real Estate Leasing Segment
Real estate rental income performed as planned, with net
sales of 1,982 million yen, a decrease of 4.3% against
the previous year, and segment profit of 464 million yen, adecrease of 22.4%.

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 2,492 million yen (including

2. Mechatronics Systems Segment
Net sales were 18,223 million yen, an increase of 48.6%
against the previous year, and segment profit was 1,357
million yen, an increase of 57.2%.
In FPD back-end processes, we recorded a strong
performance in orders received, most notably in equipment
for large-sized panels, while in small and medium-sizedpanels we secured expanded market share, which together
generated increases in both orders received and net sales.
In semiconductor back-end processes, orders received
made steady progress, contributing to an increase in bothorders received and net sales.
In vacuum application equipment, despite steady growth,development costs of 507 million yen for basic technologies
that could not be appropriated to any specific segment).
R&D is advanced by the development and design departments
in business divisions, the Research and Development
Division, and by the technology divisions in our consolidated
subsidiary companies. In addition, we are pushing forward
efficient research and development and the commercializationof advanced technologies by strengthening our relations
and collaboration with Toshiba Corporation’s Research andDevelopment Center and Manufacturing Engineering Center.
Research and development expenses and research results foreach segment are as follows:

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201803

Financial Review

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 974 million yen.
I n F P D p ro d u c t i o n e q u i p m e n t w e w o r k e d o n t h edevelopment of wet process equipment, and on PI inkjet
coaters suitable for high-definition small- and medium-sizedpanels.
In semiconductor equipment we worked on thedevelopment of wet cleaning equipment that can be used innext generation devices, single wafer nitride film wet etchingequipment and dry etching equipment for masks.
2. Mechatronics Systems Segment
R&D expenses for the segment totaled 837 million yen.
In liquid crystal and OLED module assembly equipment,
we worked on the development of OLB equipment forsmall- and medium-sized panels, and for large-sized highdefinition panels.
In semiconductor assembly equipment we worked on
the development of high speed, high precision bonding
equipment. In the field of vacuum equipment we areworking on the development of sputtering equipment for
optical thin films, and for electromagnetic wave shielding
films.

due to trade notes and accounts payable of 5,027 million yen,
and an increase in accrued expenses of 1,154 million yen.
Net assets decreased by 403 million yen from the end of theprevious fiscal year to 16,129 million yen. This was mainly
due to recording a 1,747 million yen increase in net income
attributable to parent company shareholders on the one hand,and a decrease of 2,400 million yen from the acquisition oftreasury stock on the other.

Cash FlowsThe fiscal year-end balance of cash and cash equivalents(referred to below as net cash) was 1,905 million yen higher
than a year earlier, at 13,384 million yen.
The increase in net cash provided by operating activities
was 5,149 million yen (last year we recorded an increase of
5,790 million yen). This was mainly due to an increase in net
cash from posting income before income taxes and minority
interests, as well as a decrease in accounts receivable.
The decrease in net cash from investing activities was 655
million yen (last year we recorded a decrease of 538 millionyen). This was mainly due to a decrease in net cash due toacquisitions of fixed assets, etc.

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 172 million yen.
In the ticket vending machine field, we promoted
development of large-screen touch panel ticket vending
machines. In addition, as part of our advance into a newarea of business, we promoted development of card
readers.

Furthermore, free cash flow, combining cash flow fromoperating activities and cash flow from investing activities,
increased by 4,494 million yen (last year we recorded anincrease of 5,252 million yen).
The decrease in net cash from financing activities was 2,641
million yen (last year was a decrease of 675 million yen).
This was mainly due to a decrease in net cash owing to theacquisition of treasury stock, etc.

Financial Condition
Total assets at fiscal year-end were 6,218 million yen higher
than a year earlier, and stood at 59,939 million yen. This was
mainly due to an increase in cash and deposits of 1,905 million
yen, and an increase in accounts receivable of 4,394 million
yen.
Total liabilities increased by 6,622 million yen from the end of
the previous fiscal year to 43,810 million yen. This was mainly

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

FINANCIAL SECTION
ANNUAL REPORT 2018 Year ended March 31, 2018

Contents
Consolidated Balance Sheet・ ・・・・・・・・・・・・ 06
Consolidated Statement of Operations・ ・・・・・・・・・ 08
Consolidated Statement of Comprehensive Income・ ・・・・・ 09
Consolidated Statement of Changes in Net Assets・・・・・・・ 10
Consolidated Statement of Cash Flows・ ・・・・・・・・・ 11
Notes to Consolidated Financial Statements・ ・・・・・・・ 12
Independent Auditor's Report ・・・・・・・・・・・・・ 46

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201805

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2018
2017
(Millions of yen)March 31,2018
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Note 15 and 18)
Notes and accounts receivable, trade (Note 15)
Electronically recorded monetary claims (Note 15)
Allowance for doubtful accounts
Inventories (Note 6)
Deferred tax assets (Note 9)
Accounts receivable, other
Other current assets
Total current assets¥ 13,399
28,339
640
(367)
3,283
565
1,477
777
48,113¥ 11,494
23,834
623
(11)
3,587
537
926
601
41,591$ 126,122
266,741
6,026(3,457)30,897
5,319
13,902
7,318
452,868

Property, plant and equipment:
Land (Note 16)
Buildings and structures (Note 16)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11928,612
5,320
366
330
34,747(24,333)
10,414

119
28,505
5,151
355
624
34,754(23,964)
10,7901,123
269,31450,0783,447
3,108
327,070(229,043)
98,027

124
231
1,059
(2)
1,412

122
247
972
(1)
1,340

1,170
2,173
9,967
(15)
13,295¥ 59,939¥ 53,721$ 564,190

Investments and other assets:
Investments in securities (Notes 5 and 15)
Deferred tax assets (Note 9)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

3

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

Financial Section

March 31,2018
2017
(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade (Note 15)
Short-term bank loans (Notes 7 and 15)
Current portion of long-term debt (Notes 7 and 15)
Current portion of lease obligations (Note 7)
Advances received
Accrued expenses
Accrued income taxes (Note 9)
Provision for directors’ bonuses
Provision for loss on order received
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 7 and 15)
Net defined benefit liability (Note 12)
Lease obligations (Note 7)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term guarantee deposits (Note 15)
Total long-term liabilities
Total liabilities

March 31,2018
(Thousands of
U.S. dollars)(Note 1)

¥ 15,000
5,100
500
16
1,242
4,063
578
44
5
496
27,044¥ 9,972
5,100
800
37
605
2,909
305
33
854
20,615$ 141,185
48,005
4,706
147
11,687
38,247
5,444
418
49
4,669
254,557

6,000
7,309
19
2
13
309
36
3,078
16,76643,810

5,700
7,404
25
2
9
320
35
3,078
16,57337,18856,476
68,794
180
22
126
2,906
337
28,974
157,815412,372

6,762
9,038
5,264
(4,054)17,010

6,762
9,108
3,715
(1,723)
17,862

63,64485,06849,552(38,158)
160,10631
361(1,273)(881)
16,129¥ 59,93928
286(1,643)(1,329)16,533¥ 53,721

290
3,404(11,982)(8,288)151,818$ 564,190

Contingent liabilities (Note 13)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2018and 2017
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of the consolidated financial statements.
4

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201807

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2018
2017
(Millions of yen)

Net sales
Cost of sales (Notes 6,8 and 16)
Gross profit
Selling, general and administrative expenses(Notes 8,12 and 20)
Operating income
Other income (expenses):
Interest and dividend income
Foreign exchange gain (loss), net
Interest expense
Commission fee
Loss on valuation of derivatives, net
Compensation income
Other, net
Ordinary income
Income before income taxes
Income taxes (Note 9):
Current
Deferred
Net income
Net income attributable to owners of parent

Year ended
March 31,2018
(Thousands of
U.S. dollars)(Note 1)

¥ 49,257
35,635
13,622¥ 42,737
32,24010,497$ 463,637
335,422
128,215

11,124

8,997

104,703

2,498

1,500

23,512

7
(60)
(131)
(31)
(1)
72
(1)
2,353
2,353

6
56
(134)
(32)
(270)
6
1,132
1,132

64
(568)
(1,233)
(296)
(11)
682
(7)
22,14322,143

616
(10)
606
1,747

256
(55)
201
931

5,797
(96)
5,701
16,442¥ 1,747¥ 931$ 16,442

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

08

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

5

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2018
2017
(Millions of yen)

Net income
Other comprehensive income: (Note 10)
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof parent

Year ended
March 31,2018
(Thousands of
U.S. dollars)(Note 1)

¥ 1,747¥ 931$ 16,442

3
370
75
448
¥ 2,195

6
175
(56)
125
¥ 1,056

22
3,483
709
4,214
$ 20,656

2,195

1,056

20,656

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

6
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201809

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Changes in Net Assets
Shareholders’ equity

Valuation and translation adjustments
Valuationdifference
Foreign
Remeasureoncurrency
ments ofavailable-fortranslation
defined-sale
adjustments benefit planssecurities

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capital51,926,194

6,762

9,108

22

342

(1,818)Net income

–

–

–

931

–

–

–

–

931

Dividends of surplus (Note 11)

–

–

–

(198)

–

–

–

–

(198)

Net change during the year

–

–

–

–

–

6

(56)

175

125

Purchase of treasury shares

–

–

–

–

(0)

–

–

–

(0)

Disposal of treasury shares

–

–

–

–

–

–

–

–

–

Balance as of April 1, 2017

Balance as of April 1, 2016

Retainedearnings

Treasurystock(Millions of yen)
2,982
(1,723)

Total net
assets

15,67551,926,194¥ 6,762¥ 9,108¥ 3,715¥ (1,723)

¥ 28

¥ 286

¥ (1,643)¥ 16,533

Net income

–

–

–

1,747

–

–

–

–

1,747

Dividends of surplus (Note 11)

–

–

–

(198)

–

–

–

–

(198)

Net change during the year

–

–

–

–

–

3

75

370

448

Purchase of treasury shares

–

–

–

–

(2,474)–––(2,474)

Disposal of treasury shares
Balance as of March 31, 2018

–

–

(70)

–

143

–

–

–

73

51,926,194¥ 6,762¥ 9,038¥ 5,264¥ (4,054)

¥ 31

¥ 361

¥ (1,273)¥ 16,129(Thousands of U.S. dollars) (Note 1)
Balance as of April 1, 2017

$ 63,644$ 85,728$ 34,970$ (16,219)$ 268$ 2,695$ (15,465)$ 155,621

Net income––

16,442––––

16,442

Dividends of surplus (Note 11)––(1,860)

–

–

–

–

(1,860)Net change during the year

–

–

–

–

22

709

3,483

4,214

Purchase of treasury shares

–

–

–

(23,287)–––(23,287)

Disposal of treasury shares

–

(660)

–

1,348

–

–

–

688

$ 63,644$85,068$ 49,552$ (38,158)$ 290$ 3,404$ (11,982)$ 151,818

Balance as of March 31, 2018

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20187

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2018
2017
(Millions of yen)

Net cash provided by Operating activities
Income before income taxes and non-controlling interest
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase in net defined benefit liability
Interest and dividend income
Interest expense
Foreign exchange losses
Increase (decrease) in advances received
Decrease (increase) in notes and accounts receivable-trade
Increase in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Year ended
March 31,2018
(Thousands of
U.S. dollars)(Note 1)

¥ 2,353
1,406
356
275
(7)
131
27
622
(4,489)
(188)
5,842
(13)
(700)
5,615
6
(131)
(341)
5,149

¥ 1,132
1,566
(12)
287
(6)
134
41
(646)
5,661
(237)
(2,347)
8
561
6,142
6
(134)
(224)
5,790

$ 22,143
13,233
3,349
2,588
(64)
1,233
251
5,860
(42,252)(1,766)54,984(124)(6,587)
52,84860(1,232)(3,214)
48,462

Net cash used in Investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash used in investment activities

(0)
(392)
2
(265)
（655）

(0)
0
(293)
2
(247)
（538）

(0)
(3,690)17(2,492)(6,165)

Net cash used in Financing activities
Net decrease in short-term loans payable
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchases of treasury stock
Proceeds from disposal of treasury shares
Cash dividends paid
Net cash used in financing activities

(42)
800
(800)
(2,474)73(198)(2,641)

(440)
(37)
(0)
(198)
(675)

(397)
7,530
(7,530)(23,287)
688(1,860)(24,856)

52
1,905
11,479¥ 13,384

(110)
4,467
7,012
¥ 11,479

494
17,935108,049$ 125,983

Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 18)

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

8

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201811

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2018
1.

Basis of Presentation

Shibaura Mechatronics Corporation (the “Company”) and its consolidated subsidiaries(collectively, the “Companies” or the “Group”) maintain their accounting records andprepare their financial statements in accordance with accounting principles generally
accepted in Japan. The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in Japan, which differ
in certain respects from the application and disclosure requirements of International
Financial Reporting Standards, and have been compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments andExchange Act of Japan. Certain reclassifications have been made to present theaccompanying consolidated financial statements in a format that is familiar to readers
outside Japan. In addition, the non-consolidated balance sheet of the Company as of March
31, 2018 and the non-consolidated statement of operations for the year then ended areincluded, as other information, in the accompanying consolidated financial statements.
The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company is incorporated and operates. The translation of yen
amounts into U.S. dollar amounts has been included solely for the convenience of readers
outside Japan. The translation has been made at the rate of ¥ 106.24 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2018. This translation should not be
construed as a representation that yen could be converted into U.S. dollars at the above or
any other rate.

9

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements(1) Basis of consolidation
The accompanying consolidated financial statements include the accounts of Shibaura
Mechatronics Corporation and eight subsidiaries over which the Company exerts
substantial control, either through majority ownership of voting stock and / or by othermeans. All assets and liabilities of the subsidiaries are revalued at fair value uponacquisition, if applicable. All significant intercompany balances and transactions
have been eliminated in consolidation.
Investment in an unconsolidated subsidiary that is not deemed material to theconsolidated financial statements is stated at cost.
Certain subsidiaries have a fiscal year end which differs from that of the Company. As
a result, adjustments have been made for any significant transactions which took place
during the intervening period between the year end of the subsidiaries and that of theCompany.
(2) Foreign currency translation
The revenue and expense accounts of the overseas consolidated subsidiaries aretranslated into Japanese yen at the average rate of exchange in effect during each fiscal
year. The balance sheet accounts, except for the components of shareholders’ equity,
are also translated into Japanese yen at the rate of exchange in effect at each balance
sheet date. The components of shareholders’ equity are translated at their historicalexchange rates. Differences arising from translations are presented as “Foreign
currency translation adjustments,” a component of net assets in the accompanying
consolidated financial statements.
Foreign currency monetary assets and liabilities are translated into Japanese yen at therate of exchange in effect at each balance sheet date and the resulting translation gains
or losses are credited or charged to income.
(3) Cash and cash equivalents
The Company and its subsidiaries consider all highly liquid investments with amaturity of three months or less from their purchase dates to be cash equivalents.
(4) Securities
Marketable securities categorized as other securities are carried at fair value withunrealized holding gains or losses, net of applicable income taxes, accounted for as aseparate component of net assets. Non-marketable securities classified as othersecurities are stated at cost. Cost of securities sold is computed based on the moving
average method.
(5) Derivatives
All derivatives are carried at fair value
specific hedge criteria.

except for interest rate swaps which meet
10

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(6) Inventories
Finished goods and raw materials— moving average method (in cases
where profitability has declined, thebook value is reduced accordingly)

Semi-finished goods and work in process— individual cost method (in cases
where profitability has declined, thebook value is reduced accordingly)(7) Depreciation and amortization (except for leased assets)
Depreciation of property, plant and equipment is generally computed by the
declining-balance method, based on the estimated useful lives of the respective assets.
The straight-line method is applied to certain research facilities acquired during theyear ended March 31, 1995, and buildings acquired on or after April 1, 1998. Foreign
consolidated subsidiaries compute depreciation primarily using the straight-line
method. The following summarizes the estimated useful lives of property, plant andequipment by major category:
Buildings and structures
Machinery and equipment

3 – 60 years
2 – 17 years

Intangible assets, which are included in “other assets” of the accompanying
consolidated balance sheet, are amortized by the straight-line method. Capitalized
software for internal use is amortized by the straight-line method over a period of 5
years, based on the estimated useful life of the software.
(8) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to coverpossible losses on the collection of receivables. The amount of the allowance isdetermined based on the Company’s historical experience with write-offs, plus anestimate of specific doubtful accounts based on a review of the collectibility of
individual receivables.
(9) Provision for directors’ bonuses
To provide for the payment of bonuses to directors and statutory auditors, an allowance
is made based on the projected amount incurred.

14

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(10) Provision for loss on order received
A provision for losses on orders received is provided at an amount to cover theestimated possible losses involved on orders for which a loss occurrence is probableand can be reasonably estimated at the balance sheet date.
(11) Provision for retirement benefits
An allowance for employees’ retirement benefits is provided, based on the projected
retirement benefit obligation and the fair value of the pension plan assets as of thebalance sheet date. The retirement benefit obligation for employees is attributed toeach period by the straight-line attribution method. Actuarial gains or losses arecharged to expenses from the fiscal year subsequent to the fiscal year when incurred
using a straight-line method over a period of 10 years within the average remaining
years of service of the employees. Prior service cost is amortized by the straight-line
method over a period of 10 years, which is within the estimated average remaining
years of service of the eligible employees.
Unrecognized prior service cost and unrecognized actual gains and losses are included
in remeasurements of defined benefit plans under Remeasurements of defined benefit
plans in net assets after the tax effect adjustment.
(12) Provision for directors’ retirement benefits
Certain directors, audit & supervisory board members and corporate officers of theCompany and certain consolidated subsidiaries are entitled to lump-sum payments
under their respective unfunded retirement benefit plans. Provision for retirement
allowances for these officers has been made at the estimated amounts which would be
paid if all directors, audit & supervisory board members and corporate officers
resigned as of the balance sheet date.
(13) Reserve for repair and maintenance
Certain research facilities acquired during the year ended March 31, 1995 require
periodic repairs and maintenance. An accrual for these repair and maintenanceexpenses is recorded based on the current portion of the total expenses estimated forsuch repairs.
(14) Revenues and costs of construction contracts
Revenues and costs of construction contracts are recognized by the percentage ofcompletion method. The percentage of completion is calculated at the cost incurred asa percentage of the estimated total cost.
The completed-contract method continues to be applied for contracts for which thepercentage of completion cannot be reliably estimated.
(15) Leased assets
The depreciation of leased assets under finance leases is calculated using thestraight-line method over the lease term with residual value of zero.
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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(16) Hedge accounting
Interest rate swaps which meet specific hedge criteria and qualify for special hedge
accounting treatment are not remeasured at fair value.
Hedging instruments and hedged items are summarized as follows:
Hedging instruments
Interest rate swap agreements･･･

Hedged items
Interest on long-term debt

The Company uses derivative transactions to hedge its exposure to interest rate
fluctuation risk on long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
(17) Research and development expenses
Research and development expenses are expensed as incurred and included in cost of
sales or selling, general and administrative expenses.
(18) Income taxes
Deferred tax assets and liabilities are determined based on the differences between
financial reporting and tax-based reporting of the assets and liabilities, and aremeasured using the statutory tax rates which will be in effect when the differences are
expected to be realized.
(19) Consumption tax
The tax-excluded method is used with respect to consumption tax and local
consumption taxes.
(20) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.

16

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Financial Section

3.

Accounting Standard Issued but Not Yet Effective･“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan(“ASBJ”) Statement No.29, March 30, 2018)･“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ
Guidance No.30, March 30, 2018
(1) Summary
The International Accounting Standards Board (“IASB”) and Financial
Accounting Standards Board of the United States of America (“FASB”) jointly
developed a comprehensive accounting standard for revenue recognition andissued “Revenue from Contracts with Customers” (IFRS No.15, issued by IASB
and Topic 606 issued by FASB) in May 2014. Considering that IFRS No.15
isapplicable from the fiscal year beginning on and after January 1, 2018 and Topic
606 from the fiscal year beginning after December 15, 2017, the ASBJ developed acomprehensive accounting standard for revenue recognition and issued it alongwith implementation guidance.
The ASBJ developed its standard for revenue recognition based on a policy ofaligning the Japan standards to the basic principles of IFRS No. 15 in order to haveconsistency and comparability with other bases of financial statement presentation.
However, the ASBJ also gave consideration to alternative treatments so as to not
impair comparability across other practices in Japan(2) Date of application
The Company and its domestic subsidiaries expect to apply the new standard forthe fiscal year ending March 31, 2022.
(3) Effect of application
The effect of applying the “Accounting Standard for Revenue Recognition,” on the
consolidated financial statements is currently under assessment.
･“Revised Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No28,
February 16, 2018)･“Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No26, February 16, 2018)(1) Summary
In order to provide practical guidance regarding tax effect accounting prescribedby the Japanese Institute of Certified Public Accountants, the ASBJ provided
updated modifications and guidance to the document “Implementation Guidanceon Tax Effect Accounting,” etc.
(Major modified accounting treatments)･ Treatment of taxable temporary differences relating to subsidiary shares in
non-consolidated financial statements.
･ Treatment of recoverability of deferred tax assets for entities fall under
Category 1.
14

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Financial Section

3.

Accounting Standard Issued but Not Yet Effective (continued)(2) Date of application
The Company and its domestic subsidiaries expect to apply the updated guidance
for the fiscal year ending March 31, 2019.
(3) Effect of application
The effect of applying the “Implementation Guidance on Tax Effect Accounting”
etc. on the consolidated financial statements is currently under assessment.
4. Additional Information(Performance-based stock compensation plan for the Company’s directors)
The Company has introduced a performance-based stock compensation plan (the “Plan”)
for directors of the Company (excluding outside directors) and executive officers who
have entered into an engagement agreement with the Company (hereinafter “Directors,etc.”).
(1) Transaction summary
The Company will set up a monetary trust. This trust will be used to acquire commonshares of the Company. A director shall be granted shares in each fiscal year. The
stock-based compensation will be delivered to the Directors via the trust. Note that inprinciple the Directors will receive delivery of said shares at the scheduled time every
year.
(2) Shares remaining in the trust
The shares of the Company that remain in the trust are recorded as treasury stock under
net assets at book value (excluding associated costs). The book value of these treasury
stock shares at the end of the fiscal year under review was ¥73 million ($688 thousand)and there were 210 thousand shares.

18

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Financial Section

5.

Investments in Securities

At March 31, 2018 and 2017, marketable securities classified as other (available-for-sale)securities are summarized as follows:

Other securities
whose market
value recorded in
the balance sheet
exceeds theiracquisition costs:
Equity securities
Debt securities
Other
Total

March 312018
2017
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
sheet
sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 37
–
–
¥ 37

¥ 71
–
–
¥ 71

¥ 34
–
–
¥ 34

¥ 37
–
–
¥ 37

¥ 69
–
–
¥ 69

March 31,2018
Amountrecorded in
Acquisition the balance
sheet
costs
Difference(Thousands of U.S. dollars)

¥ 32
–
–
¥ 32

$

351
–
–
$ 351

$ 674
–
–
$ 674

$ 323
–
–
$ 323

At March 31, 2018 and 2017, non-marketable securities carried at cost are summarized asfollows:
March 31,2018
2017
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,2018
(Thousands of
U.S. dollars)

¥ 52
1

$ 490
6

For the year ended March 31, 2018, other securities sold are summarized as follows:
Not applicable
For the year ended March 31, 2017, other securities sold are summarized as follows:
Not applicable

16

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Financial Section

6.

Inventories

Inventories at March 31, 2018 and 2017 are summarized as follows:
March 31,2018
2017
(Millions of yen)Finished products
Raw materials
Work in process
Total¥ 1,049
188
2,046¥ 3,283

¥ 897
212
2,478
¥ 3,587

March 31,2018
(Thousands of
U.S. dollars)$ 9,873
1,767
19,257$ 30,897

Inventories as of March 31, 2018 and 2017 were written down due to lower profitability
and unrealized loss on inventories was charged to cost of sales in the amounts of ¥557
million ($5,240 thousand) and ¥1,004 million, respectively.
7. Short-Term Bank Loans and Long-Term Debt
The weighted average interest rate per annum on the short-term bank loans outstanding at
March 31, 2018 and 2017 was 1.0%.
Long-term debt and lease obligations at March 31, 2018 and 2017 are summarized asfollows:
March 31,2018
2017
(Millions of yen)Unsecured:
0.8% to 1.3% loans from banks due 2019
to 2023
Lease obligations
Total
Less current portionLong-term debt and lease obligations, net

March 31,2018
(Thousands of
U.S. dollars)

6,500
35

6,500
62

61,182
327

6,535
516
¥ 6,019

6,562
837¥ 5,725

61,5094,853$ 56,656

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2018 aresummarized as follows:
March 31, 2018
(Millions of(Thousands ofyen)
U.S. dollars)
2019
2020
2021
2022 and thereafter
Total

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

¥ 516
4,505
704
810
¥ 6,535$ 4,853
42,4086,626
7,622$ 61,509
17

Financial Section

7. Short-Term Bank Loans and Long-Term Debt (continued)
The Company entered into one-year contracts for commitment lines of credit with six banks
in the aggregated amount of approximately ¥6,000 million ($56,476 thousand) to optimize
the free cash flow on August 1, 2017. The outstanding balance of bank borrowings underthese commitment lines at March 31, 2018 was zero.
8.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,2018 and 2017 are as follows:Year ended
March 31,2018
(Thousands of
U.S. dollars)Year ended March 31,
2018
2017
(Millions of yen)
¥ 2,4929.

¥ 2,210$ 23,459

Income Taxes and Deferred Tax Assets

The major components of deferred tax assets and liabilities as of March 31, 2018 and 2017
are summarized as follows:
March 31,2018
2017
(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Reserve for repair and maintenanceEnterprise tax payable
Tax loss carried forward
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

March 31,2018
(Thousands of
U.S. dollars)¥ 1,836
423
99
46
273
1,657
4,334
(3,411)923¥ 1,755
338
99
39
759
1,323
4,313
(3,431)882$ 17,283
3,985
933
435
2,568
15,59140,795(32,107)
8,688

(4)

(4)

(40)

(123)
(127)
¥ 796

(94)
(98)
¥ 784

(1,156)(1,196)$ 7,492

Deferred tax liabilities:
Unrecognized holding gain on othersecurities
Other
Total deferred tax liabilities
Net deferred tax assets

18

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Financial Section

9.

Income Taxes and Deferred Tax Assets (continued)

Income taxes in Japan applicable to the Company and its domestic consolidated
subsidiaries consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in theaggregate, resulted in a statutory rate of approximately 30.8% for the years ended March 31,2018 and 2017. Income taxes of the foreign consolidated subsidiaries are generally basedon the tax rates applicable in their countries of incorporation.
The reconciliations between the effective tax rates reflected in the consolidated statements
of income and the effective statutory tax rates for the years ended March 31, 2018 and 2017
are summarized as follows:
March 31,

Effective statutory tax rates
Effect of:
Non-deductible expenses
Change in valuation allowance
Inhabitants tax per capital
Different tax rates applied to foreign consolidated
subsidiaries
Foreign tax
Experimental and research expense tax credit
Other
Effective tax rates

22

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

2018
30.8%

2017
30.8%

(0.5)
(0.7)
0.6
(1.1)

2.1
(10.7)
1.1
(2.2)

1.4
(5.0)
0.3
25.8%

1.9
(4.7)
(0.5)
17.8%

19

Financial Section

10.

Other Comprehensive Income

The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income for the years ended March 31, 2018 and 2017:
Year ended March 31,
2018
2017
(Millions of yen)
Valuation difference on other(available-for-sale) securities:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income

Year ended
March 31,2018
(Thousands of
U.S. dollars)

¥3

¥7

$ 21

–
3
0
3

–
7
(1)
6

–
21
1
22

75

(56)

709

–
75
–
75

–
(56)
–
(56)

–
709
–
709

70

(146)

656

300
370
–
370

321
175
–
175

2,827
3,483
–
3,483

¥ 448

¥ 125

$ 4,214

20

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Financial Section

11.

Information on Dividends

The Company paid cash dividends as follows:
Date of board
resolution
May 19,2017Class ofstock
Commonstock

Total dividend
amountDividend
per share¥ 198 million¥4.00

Record date
March 31,2017

Effective
date
June 6,2017

Approval of dividends payments for which the record date is in the fiscal year and effective
date is in the following fiscal year is planned as follows:
Date of board
resolution
May 22,
2018
12.

Class ofstock
Commonstock

Total dividend
amount¥ 354 million

Source ofdividends
Retainedearnings

Dividend
per share¥8.00

Recorddate
March 31,2018

Effective
date
June 6,2018

Retirement Benefits

The Company and its domestic consolidated subsidiaries have defined benefit pension plans
and lump-sum retirement payment plans which cover substantially all employees who retire
from the Companies. Eligible employees may also receive additional payments under theplans.
Certain consolidated subsidiaries use a simplified method for calculating retirement benefit
expenses and liabilities.
① Defined benefit plans(1) The changes in the retirement benefit obligation for the years ended March 31, 2018 and2017 are as follows:Year ended March 31,
2018
2017
(Millions of yen)
Balance at the beginning of the year
Service costs
Interest costs
Actuarial (gain) loss
Retirement benefit paid
Balance at the end of the year

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

¥ 9,431
386
32
(64)
(344)
¥ 9,441¥ 9,468
392
32
13
(474)
¥ 9,431

Year ended
March 31,2018
(Thousandsof U.S.
dollars)$ 88,766
3,629
304
(601)
(3,237)$ 88,861

21

Financial Section

12.

Retirement Benefits (continued)(2) The changes in plan assets for the years ended March 31, 2018 and 2017 are as follows:Year ended March 31,
2018
2017
(Millions of yen)
Balance at the beginning of the year
Expected return on plan assets
Actuarial (gain) loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

¥ 2,951
103
6
347
(236)
¥ 3,171¥ 2,924
102
(133)
351
(293)
¥ 2,951

Year ended
March 31,2018
(Thousandsof U.S.
dollars)$ 27,774
972
55
3,266
(2,222)$ 29,845(3) The changes in net defined benefit liability that are calculated by the simplified method
for the years ended March 31, 2018 and 2017 are as follows:Year ended March 31,
2018
2017
(Millions of yen)
Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

¥ 924
181
(65)
(1)
¥ 1,039

¥ 748
225
(47)
(2)
¥ 924

Year ended
March 31,2018
(Thousandsof U.S.
dollars)$ 8,696
1,704
(612)
(9)
$ 9,779

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Annual Report 201825

Financial Section

12.

Retirement Benefits (continued)(4) The following table sets forth the funded status of the plans and the amounts recognizedin the consolidated balance sheet as of March 31, 2018 and 2017 for the Group’s defined
benefit plans:¥ 6,133(3,171)
2,962
4,347

¥ 6,166(2,951)
3,215
4,189

March 31,2018
(Thousandsof U.S.
dollars)$ 57,728(29,846)
27,88240,912

7,309

7,404

68,794

7,309

7,404

68,794¥ 7,309¥ 7,404$ 68,794

March 31,2018
2017
(Millions of yen)
Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net liability for retirement benefits in thebalance sheet
Liability for retirement benefits
Net liability for retirement benefits in thebalance sheet
Notes:Net defined benefit liability calculated by the simplified method is included.

(5) The components of retirement benefit expense for the years ended March 31, 2018 and2017 are as follows:

¥ 386
32
(103)
317
(17)

¥ 392
32
(102)
337
(17)

March 31,2018
(Thousandsof U.S.
dollars)$ 3,629
304
(972)
2,987
(159)

181

226

1,704

¥ 796

¥ 868

$ 7,493

March 31,2018
2017
(Millions of yen)
Service costs
Interest costs
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expense calculated by thesimplified method
Retirement benefit expense for defined
benefit plans

26

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Financial Section

12.

Retirement Benefits (continued)(6) The components of remeasurements of defined benefit plans included in othercomprehensive income (before tax effect) for the years ended March 31, 2018 and 2017 are
as follows:
March 31,2018
2017
(Millions of yen)
Prior service cost
Actuarial gains
Total

¥ 17
(387)
¥ (370)¥ 17(192)¥ (175)

March 31,2018
(Thousandsof U.S.
dollars)$ 160(3,643)$ (3,483)(7) The components of remeasurements of defined benefit plans included in accumulated
other comprehensive income (before tax effect) as of March 31, 2018 and 2017 are as
follows:
March 31,2018
2017
(Millions of yen)
Unrecognized prior service cost
Unrecognized actuarial losses
Total¥ (65)
1,338¥ 1,273¥ (82)
1,725¥ 1,643

March 31,2018
(Thousandsof U.S.
dollars)$ (610)12,592$ 11,982(8) The fair value of plan assets, by major category, as a percentage of total plan assets asof March 31, 2018 and 2017 are as follows:

Bonds
SharesCash and deposits
General accounts
Other
Total

March 31,
2018
2017
16.7%
15.9%
21.3%
20.0%
-%
7.0%
42.0%
43.1%
20.0%
14.0%
100.0%
100.0%

24

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Annual Report 201827

Financial Section

12.

Retirement Benefits (continued)(9) The expected return on assets has been estimated based on the anticipated allocation toeach asset class and the expected long-term returns on assets held in each category.
The assumptions used in accounting for the above plans are as follows:
March 31,

Discount rateLong-term expected return on plan assets
Salary increase rate
Lump-sum election rate

2018
0.31－0.36%
3.5%
4.2%
70.0%

2017
0.31－0.36%
3.5%
4.2%
70.0%

② Defined contribution plans
The amount required to be contributed to the defined contribution plans is ¥11 million($106 thousand) for the year ended March 31, 2018.
13.

Contingent Liabilities

The Company had the following contingent liability as of March 31, 2018 and 2017 :March 31,2018
2017
(Millions of yen)
Guarantee for housing loans of employees

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

¥6

¥8

March 31,2018
(Thousands of
U.S. dollars)
$ 56

25

Financial Section

14.

Derivatives and Hedging Activities

The Company has entered into interest-rate swap contracts to manage its exposure tointerest-rate risk on long-term debt. As a matter of policy, the Company does not enter into
derivative transactions for trading purposes. The Company does not anticipate
nonperformance by any of the counterparties to the above transactions, all of whom aredomestic financial institutions with high credit ratings.
In accordance with the Company’s policy, derivative transactions are entered into under thedecision-making rules approved by the Management Strategy Committee of the Company.
The Treasury Division with the responsibility to enter into such contracts monitors andcontrols the inherent risk and performance on a daily basis and reports these to managementof the Company, if and when necessary.
In accordance with the special hedge accounting under the Accounting Standard for
Financial Instruments, the Company does not record certain interest-rate swap
arrangements at fair value but charges or credits the net cash flows from the swap
arrangements to the interest arising from the respective hedged borrowings.
At March 31, 2018 and 2017, the fair value information for derivatives, for which hedge
accounting was applied, was not presented since all derivatives were accounted for using
the special hedge accounting and accordingly their fair value was recorded as part of thefair value of the hedged borrowings.

26

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Annual Report 201829

Financial Section

14.

Derivatives and Hedging Activities (continued)

Ⅰ. Derivative transactions which do not qualify for hedge accounting
Currency-related transactions

Contract
amountForeign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars
Total
To buy foreign
currencies
U.S. Dollars
Total

Total
To buy foreign
currencies
U.S. Dollars
Total

¥ 189
¥ 189

¥ (7)
¥ (7)

¥ (7)
¥ (7)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

Total
To buy foreign
currencies
U.S. Dollars
Total

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

As of March 31, 2017
Contract
amountover 1 year Fair value(Millions of yen)

Unrealizedgain(loss)¥ 3,177¥ 3,177

¥ 368
¥ 368

¥ (224)¥ (224)¥ (224)¥ (224)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

Contract
amountForeign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars

Unrealizedgain(loss)¥ 3,118¥ 3,118

Contract
amountForeign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars

As of March 31, 2018
Contract
amountover 1 year Fair value(Millions of yen)

As of March 31, 2018
Contract
amountUnrealized
over 1 year Fair valuegain(loss)(Thousands of U.S. dollars)$ 29,345$ 29,345$ 1,776$ 1,776$ (68)$ (68)$ (68)$ (68)

$－
$－

$－
$－

$－
$－

$－
$－

27

Financial Section

14.

Derivatives and Hedging Activities (continued)

Notes:
Fair value is principally based on obtaining quotes from counterpaty financial institutions.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
As of March 31, 2018
Type of derivativetransaction

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

¥ 6,000¥ 6,000¥－

As of March 31, 2017
Type of derivativetransaction

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

¥ 6,000¥ 5,200¥－

As of March 31, 2018
Type of derivativetransaction

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Thousands of U.S. dollars)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

$ 56,476$ 56,476$－

Notes:
The fair value of interest rate swaps accounted for using the special treatment is included in
the fair value of the underlying long-term debt.

28

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Financial Section

15.

Financial Instruments① Matters relating to financial instruments(1)

Policy of financial instruments
The Group makes capital investments primarily through bank loans to secure thenecessary principal and maintain liquidity. Derivatives are used, not for speculative
nor trading purposes, but to manage risk of foreign currency exchange rates andinterest rate fluctuations arising from business operations.

(2)

Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to a customer’s
credit risk. Receivables from each customer are constantly checked to reduce risk of
the costumer’s default.
Investment securities are equity securities of customers of the Group and exposed tothe market price fluctuation risk.
While foreign currency-denominated operating receivables are exposed to exchange
rate fluctuation risk, the Group hedges this risk by, as a general rule, primarily
utilizing forward exchange contracts for foreign currency-denominated operating
payables. Trade payables, which are operating payables, are settled within a year.
Short-term bank loans are used to primarily to procure working capital, while
long-term debt is used to procure funds required for long-term stability. Althoughsome items with variable interest rates are exposed to interest rate fluctuation risk,
derivative transactions (interest rate swaps) are utilized in part to fix interest
payments. To control credit risk related to derivatives, based on internal guidelines,
the Group enters into derivative transactions with counterparties with high credit
ratings. In addition, the Treasury Division of the Group regularly monitors risk andgain or loss, and reports them to management of the Company.
Operating payables and bank loans are exposed to liquidity risk.
Each entity of the Group performs cash management using monthly cash flow
information.

(3)

Supplementary information on fair value of financial instruments
Fair values of financial instruments are based on their quoted price in active markets.
If the quoted price is not available, other rational valuation techniques are used.
Because various assumptions and factors are reflected in estimating fair value,
different assumptions could result in different fair value. The contract or notionalamounts of derivatives which are shown in the below table do not represent theamounts exchanged by the parties and do not measure the Companies’ exposure tocredit or market risk.

32

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Annual Report 201829

Financial Section

15.

Financial Instruments (continued)② Matters concerning the fair value of financial instruments, etc.
Amounts as of March 31, 2018 and 2017 on the accompanying consolidated balance sheet
fair value and the difference between them are as follows.
March 31, 2018
Carrying value

Fair value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade¥ 13,399¥ 13,399¥ －28,33928,339－(3) Electronically recorded monetary claims

640

640

－

(4) Investment securities - Other securities

72

72

－

(5) Notes and accounts payable, trade(15,000)(15,000)－(6) Short-term bank loans(5,100)(5,100)

－

(500)

(500)

－

(8) Long-term debt

(6,000)(5,991)9(9) Other long-term liabilities(3,078)(2,787)291(10) Derivative transactions

(42)

(42)

－

(7) Current portion of long-term debt

March 31, 2017
Carrying value

Fair value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade¥ 11,494¥ 11,494¥ －23,834

23,834－(3) Electronically recorded monetary claims

623

623

－

(4) Investment securities - Other securities

70

70

－

(5) Notes and accounts payable, trade(9,972)(9,972)－(6) Short-term bank loans(5,100)(5,100)

－

(800)

(800)

－

(8) Long-term debt

(5,700)(5,704)(4)(9) Other long-term liabilities(3,078)(2,712)366(10) Derivative transactions

(201)

(201)

－

(7) Current portion of long-term debt

March 31, 2018
Carrying value

Fair value

Difference(Thousands of U.S. dollars)(1) Cash and bank deposits$$ 126,122$ 126,122

266,741

266,741－(3) Electronically recorded monetary claims

6,026

6,026

－

(4) Investment securities - Other securities

679

679

－

(5) Notes and accounts payable, trade(141,185)(141,185)－(6) Short-term bank loans(48,005)(48,005)－(7) Current portion of long-term debt

(4,706)(4,706)－(8) Long-term debt

(56,476)(56,387)89(9) Other long-term liabilities(28,974)(26,230)2,744(10) Derivative transactions

(391)

(391)

－

(2) Notes and accounts receivable, trade－30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201833

Financial Section

15.

Financial Instruments (continued)(*) Liabilities are presented in parentheses in the above table.
Notes:a)Method of measurement of fair value of financial instruments and matters concerning
securities and derivative transactions(1) Cash and bank deposits, (2) Notes and accounts receivable, trade, and(3) Electronically recorded monetary claims
As these items are settled in a short period of time, their fair value approximatesthe carrying value of these instruments.
(4) Investment securities - Other securities
The fair value of equity securities represents the price on the stock exchange.
(5) Notes and accounts payable, trade, (6) Short-term bank loans, (7) Current portionof long-term debt
As these items are settled in a short periof of time, their fair value approximatesthe carrying value of these instruments.
.
(8) Long-term debt
As for the fair value of long-term debt, future cash flows from payments ofprincipal and interest are discounted at the interest rate applicable to a similar
new loan to the present value. As for long-term debt with floating interest rates
subject to the special hedge accounting hedged by designated interest rate swaps,
future cash flows from payments for principal and interest, combined with cash
flows from the designated interest rate swaps, are discounted at the interest rateapplicable to a similar new loan to the present value.
(9) Other long-term liabilities
Other long-term liabilities consist of long-term guarantee deposits. The fair valueof other long-term liabilities is discounted at the risk-free interest rates of future
cash flows to the present value.
(10) Derivative transactions
See Note 14 for details on derivative transactions.

b) As non-marketable equity securities of ¥52 million ($490 thousand) do not have aquoted market price and the future cash flow cannot be estimated, the Group considers
it extremely difficult to determine their fair value. Hence, the items are not included in“(4) Investment securities - Other securities.”

34

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Annual Report 201831

Financial Section

15.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥13,382 million ($125,959 thousand), Notes and accounts
receivable, trade of ¥28,339 million ($266,741 thousand), Electronically recordedmonetary claims of ¥640 million ($6,026 thousand) are due within one year
subsequent to March 31, 2018 and Cash and bank deposits of ¥11,475 million, Notes
and accounts receivable, trade of ¥23,834 million, Electronically recorded monetaryclaims of ¥623 million are due within one year subsequent to March 31, 2017.

16.

Investment in Rental Property

The Company owns an office building (including land) for rent by third parties in
Yokohama city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Fair value
March 31,2018

Rental property

Carrying amount
April 1,March 31,2017
Decrease
2018(Millions of yen)
¥ 5,690¥ 59¥ 5,631

Fair value
March 31,2017

Rental property

Carrying amount
April 1,March 31,2016
Decrease
2017(Millions of yen)
¥ 5,812¥ 122¥ 5,690¥ 7,616¥ 7,513

Carrying amount
Fair value
March 31,
March 31,
Decrease
2018
2018(Thousands of U.S. dollars)$ 53,557$ 554$ 53,003$ 71,684

April 1,
2017
Rental property

Notes:a)

The carrying amount on the consolidated balance sheet is determined at the amount ofacquisition costs less accumulated depreciation and impairment loss.

b)

Decrease represents depreciation during the year.

c)

Fair value at March 31, 2018 and 2017 is internally determined by the Company
based on the real-estate appraisal standard.

32

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201835

Financial Section

16.

Investment in Rental Property (continued)

Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2018
Rental income Rental costs
Difference(Millions of yen)
¥ 1,682¥ 1,249¥ 433

Rental property

Year ended March 31, 2017
Rental income Rental costs
Difference(Millions of yen)
¥ 1,732¥ 1,233¥ 499

Rental property

Year ended March 31, 2018
Rental income Rental costs
Difference(Thousands of U.S. dollars)$ 15,830$ 11,759$ 4,071

Notes:
Because the rental property includes an office space internally used by the Company, rental
income related to such office space is not included in the above table. Costs incidental tothis real estate, such as depreciation, repair cost, insurance cost, taxes and public charges,
are included in rental costs.

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201833

Financial Section

17.

Segment Information① Segment Information(1) Overview of reporting segments
The Company’s reporting segments are determined as the Group’s units for which
discrete financial information is available, which the Board of Directors regularly
monitors in order to decide on the allocation of business resources and evaluate businessperformance.
The Company adopts the division system in its Group organization based on the productor service lines.
Each division draws up a domestic and overseas comprehensive strategy for its products
or services to manage and develop operations.
The Company has four reporting segments: Fine mechatronics, Mechatronics systems,
Vending machines & systems, and Real estate leasing．
The product or service lines belonging to each reporting segment are as follows.
Fine mechatronics:
Flat Panel Display (“FPD”) manufacturing equipment (wet cleaning equipment,
developing equipment, Etching equipment, Stripping equipment, PI inkjet coater, Cell
assembly equipment), Semiconductor manufacturing equipment (wafer inspection
equipment, etching equipment, ashing equipment, wet cleaning equipment), Railroad
maintenance equipment, and other items.
Mechatronics systems:
FPD manufacturing equipment (outer lead bonders), Semiconductor manufacturing
equipment (die bonders, flip chip bonders, inner lead bonders), Vacuum equipment(sputtering equipment, vacuum bonding equipment, industrial vacuum evaporationequipment), Rechargeable battery manufacturing equipment, Precision parts
manufacturing equipment, Other automation equipment, and other items.
Vending machines & systems:
Vending machines, ticket vending machines, and others.
Real estate leasing:
Real estate leasing and management, and other businesses.
(2) Methods of calculating amounts for net sales, income or loss, assets and other items byreporting segment
The accounting policies applied by each reporting business segment are those outlined in“Significant items for the preparation of consolidated financial statements”.
Reporting segment is an ordinary income basis.
Internal sales between segments are mainly based on price to be applied for third-party
transactions.

34

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Annual Report 201837

Financial Section

17.

Segment Information (continued)(3) Information on sales, income or loss, assets and other items by reporting segment
Information for the fiscal years ended March 31, 2018 and 2017 is summarized asfollows:
Year ended March 31, 2018
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 26,995
48¥ 18,223110¥ 2,057
0¥ 1,982–¥ 49,257
158

Total sales
Segment income

27,043
1,108

18,333
1,357

2,057
52

1,982
464

49,415
2,981

Segment assets

28,15913,035

1,544

6,513

49,251

774
5
6

310
0
3

38
0
5

284
–
–

1,406
5
14

393

451

43

239

1,126

Other
Depreciation and amortization
Interest income
Interest expense
Increase in tangible and intangible
fixed assets

Year ended March 31, 2017
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 26,355
48¥ 12,266152¥ 2,0440¥ 2,072–¥ 42,737200

Total sales
Segment income

26,403345

12,418
863

2,044
83

2,072
597

42,937
1,888

Segment assets

25,851

10,572

1,586

6,370

44,379

956
4
5

296
0
6

38
0
6

276
–
–

1,566
4
17

778

249

22

173

1,222

Other
Depreciation and amortization
Interest income
Interest expense
Increase in tangible and intangible
fixed assets

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201835

Financial Section

17.

Segment Information (continued)
Year ended March 31, 2018
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 254,099
449$ 171,522
1,036$ 19,358
1$ 18,658–$ 463,637
1,486

Total sales
Segment income

254,548
10,431

172,558
12,771

19,359493

18,6584,363

465,123
28,058Segment assets

265,047

122,693

14,53861,306

463,585

7,281
45
54

2,918
0
30

357
0
48

2,677
–
–

13,233
45
132

3,701

4,245

410

2,247

10,603

Other
Depreciation and amortization
Interest income
Interest expense
Increase in tangible and intangible
fixed assets(4) Reconciliations between the reporting segment total and the amounts presented in the
consolidated financial statements.
a) Segment income
Year ended March 31,
2018
2017
(Millions of(Millions of
yen)
yen)

Year ended
March 31,2018
(Thousands of
U.S. dollars)

Reporting segments¥ 2,981¥ 1,888$ 28,058

Unallocated amounts

(507)

(443)

(4,778)

Other
Consolidated

(121)

(313)

(1,137)¥ 2,353¥ 1,132$ 22,143

Notes:
Included in the “Unallocated amounts” above are unallocable operating expenses
which primarily relate to research and development expenses incurred over the entire
Group as part of the Company’s research and development activities.

36

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Annual Report 201839

Financial Section

17. Segment Information (continued)b) Segment assets
As of March 31,
2018
2017
(Millions of(Millions of
yen)
yen)

As of
March 31,2018
(Thousands of
U.S. dollars)

Reporting segments¥ 49,251¥ 44,379$ 463,585

Unallocated amounts

10,688

9,342

100,605¥ 59,939¥ 53,721$ 564,190

Consolidated

Notes:
Included in the “Unallocated amounts” above are unallocable assets which primarily
consist of surplus funds (cash and bank deposits) and investment funds (investment
securities) owned by the Company and deferred tax assets.
c) OtherYear ended March 31, 2018

Depreciation and amortization
Interest income
Interest expense
Increase in tangible andintangible fixed assets

Reportingsegments

Adjustment
amount¥ 1,406
5
14(Millions of yen)
¥
–
0
117

1,126

Consolidated¥ 1,406
5
131

–

1,126

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 13,233$–$ 13,233
45
3
48
132
1,102
1,233
10,603–

10,603

Year ended March 31, 2017

Depreciation and amortization
Interest income
Interest expense
Increase in tangible andintangible fixed assets

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

Reportingsegments

Adjustment
amountConsolidated¥ 1,566
4
17(Millions of yen)
¥
–
1
117

¥ 1,566
5
134

1,222

–

1,222

37

Financial Section

17.

Segment Information (continued)② Related information(1) Information by each product and service
Information by each product and service is omitted because equivalent information has
been disclosed in segment information.
(2) Information by geographical areaa) SalesYear ended March 31, 2018
Japan

Northeastern Asia

Other

Total

(Millions of yen)
¥ 16,271¥ 31,960¥ 1,026¥ 49,257

Year ended March 31, 2017
Japan

Northeastern Asia

Other

Total

(Millions of yen)
¥ 17,827¥ 23,595¥ 1,315¥ 42,737

Year ended March 31, 2018
Japan

Northeastern Asia

Other

Total

(Thousands of U.S. dollars)$ 153,150$ 300,833$ 9,654$ 463,637

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
As of March 31, 2018
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 10,404¥ 10¥ 10,414

As of March 31, 2017
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 10,780¥ 10¥ 10,790

As of March 31, 2018
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 97,932$ 95$ 98,027

38

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Annual Report 201841

Financial Section

17.

Segment Information (continued)c) Information by main customer
Year ended March 31, 2018
Fine mechatronics andMechatronics systems

Sales to Xianyang Caihong
Optoelectronics Technology
Co.,LTD.

(Millions of yen)
¥ 7,930

Year ended March 31, 2017: Not applicableYear ended March 31, 2018
(Thousands of U.S. dollars)Fine mechatronics andMechatronics systems

Sales to Xianyang Caihong
Optoelectronics Technology
Co.,LTD.

$ 74,643③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2018: Not applicableYear ended March 31, 2017: Not applicable④ Depreciation and remaining balance of goodwill by reporting segment
Year ended and as of March 31, 2018: Not applicableYear ended and as of March 31, 2017: Not applicable⑤ Gain on negative goodwill by reporting segment
Year ended March 31, 2018: Not applicableYear ended March 31, 2017: Not applicable

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201839

Financial Section

18.

Cash and Cash Equivalents

Reconciliations of cash and cash equivalents as of March 31, 2018 and 2017 between theamounts shown in the consolidated balance sheets and the consolidated statements of cash
flows are as follows:
As of March 31,
2018
2017
(Millions of(Millions of
yen)
yen)
Cash and time deposits

As ofMarch 31,2018
(Thousands of
U.S. dollars)¥ 13,399¥ 11,494$ 126,122

(15)

(15)

(139)

¥ 13,384¥ 11,479$ 125,983

Time deposits with maturities inexcess of three months
Cash and cash equivalents

19. Non-cash Transactions
Lease assets and lease obligations recorded relating to lease transactions were ¥14 million($136 thousand) and ¥14 million ($136 thousand), respectively for the year ended March 31,2018 and ¥7 million and ¥7 million, respectively for the year ended March 31, 2017.
20.

Selling, General and Administrative Expenses

For the years ended March 31, 2018 and 2017, major selling, general and administrative
expenses are summarized as follows:Year ended March 31,
2018
2017
(Millions of yen)
Packing and delivery expenses
Sales commissions
Advertising expenses
Employees’ salaries and allowances
Provision for director’s bonuses
Provision of allowance for doubtful
accounts
Retirement benefit expenses
Provision for directors’ retirement
benefits
Depreciation
Rent expenses
Research and development expenses

Year ended
March 31,2018
(Thousands of
U.S. dollars)

¥ 76
742
12
4,746
44

¥ 57
205
14
4,273
33

$ 715
6,981
115
44,669
418

454
388

(7)
374

4,270
3,656

3
924
73
2,490

3
1,100
68
2,205

24
8,698
690
23,43640

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201843

Financial Section

21.

Related Party Transactions

Toshiba Corporation held 39.1% of the Company’s voting rights as of March 31, 2017.
Toshiba Corporation sold the Companiy’s share in December 2017, however, Toshiba
Corporation remains 10% of the Company’s share, therefore Toshiba and its subsidiaries
are the related parties of the Company.
The Company sold semiconductor manufacturing equipment to Toshiba Memory
Corporation, The Company also lend the office space to Toshiba Memory Corporation. The
aggregate amounts of these transactions were ¥2,022 million ($19,035 thousand) for theyears ended March 31, 2018.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation, The
Company also lend the office space to Toshiba Corporation. The aggregate amounts ofthese transactions were ¥2,415 million for the years ended March 31, 2017.
The Company purchased raw materials from Toshiba Corporation totaling ¥282 million forthe years ended March 31, 2017.
The terms and conditions of the above transactions were determined with consideration ofmarket prices.
Amounts due from and to Toshiba Corporation and Toshiba Memory Corporation at March
31, 2018 and 2017 were as follows:
March 31,

2018
2017
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation
Due from Toshiba Memory Corporation
Due to Toshiba Memory Corporation

44

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

¥

75
3,199

¥

236
3,382
-

March 31,2018
(Thousands of
U.S. dollars)$ 705
30,10741

Financial Section

22.

Per Share Information

Basic net income per share is computed based on the net income available for distribution
to shareholders of common stock and the weighted-average number of shares of common
stock outstanding during each year. Diluted net income per share is computed based on
the net income available for distribution to the shareholders and the weighted-average
number of shares of common stock outstanding during each year, assuming full dilution ofcommon stock equivalents. Net assets per share are computed based on theweighted-average number of shares of common stock outstanding at each balance sheet
date.
As of March 31,
2018
2017
(Yen)
Net income:– Basic
Net assets¥ 36.58
364.49¥ 18.84334.67

As ofMarch 31,2018
(U.S. dollars)$ 0.34
3.43

Notes:The information regarding diluted net income per share for the years ended March 31, 2018and 2017 is omitted because there was no stock with dilutive effect.
The weighted average number of shares of common stock outstanding excludes treasury
stock shares held by the Company. Treasury stock shares held in trust as aperformance-based stock compensation plan for the Company’s directors and executive
officers, are included in those treasury stock shares as of March 31, 2018..

42

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Annual Report 201845

Financial Section

46

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201847

Directors, Vice Presidents and Auditors
As of June 22, 2018

Directors and Vice Presidents
Shigeki Fujita

Keigo Imamura

Representative Director

Senior Vice President

President and Chief Executive Officer

Deputy Executive General Manager of Fine Mechatronics
Division

Makoto Fujino
Director

Hisashi Shindo

Executive Vice President

Senior Vice President

Executive General Manager of Fine Mechatronics Division

Deputy Executive General Manager of Mechatronics System
Division

Yoshitsugu Ogawa
Director

Takashi Arai

Executive Vice President

Vice President

Executive General Manager of Mechatronics System Division

Deputy Executive General Manager of Fine Mechatronics
Division

Masatoshi Higuchi
Director

Vice President

Executive General Manager of Technology & Development

Executive General Manager of Production & Procurement

Division

Division

Kenichi Ikeda
Director
Vice President
Chief Financial Officer

Tomoko Inaba
Outside Director

Yuichiro Takada
Outside Director

Auditors
Yasuhiko Yamato
AuditorKazumasa Uchida
Outside Auditor

Hiroyuki Matsumoto
Outside Auditor

48

Kazuyuki Yamanaka

Senior Vice President

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2018

Yoshio Yuyama
Vice President
Deputy Executive General Manager of Mechatronics System
Division

Kazuhiko Okui
Vice President
Executive General Manager of General Affairs & Human
Resources Division

Investor Information
As of March 31, 2018

Date Established

October 12, 1939

Capital6,762Million-Yen

Number of Employees

Consolidated

Common Stock

Authorized			 : 100,000,000 shares
Issued and outstanding : 51,926,194 shares

Number of Shareholders

5,156

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited

Independent Auditor

PricewaterhouseCoopers Aarata LLC

Headquarters

2-5-1, Kasama, Sakae-ku, Yokohama, Kanagawa Pref. 247-8610, Japan
TEL : +81-45-897-2421 FAX : +81-45-897-2470
http://www.shibaura.co.jp/: 1,2071-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Common Stock Price Range (The Tokyo Stock Exchange)
Year ended March 31,

High (yen)Low (yen)

2018
528
240

2017
317
179

2016
320
170

2015
384
220

2014
333
181

Principal Shareholders

Toshiba Corporation
Shin-Etsu Engineering Co., Ltd.
NuFlare Technology, Inc.

Number of shares hold

Percentage of total shares outstanding(thousand shares)

(%)

5,193

11.73
5.86
5.86

2,597
2,597

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201849

2-5-1, Kasama, Sakae-ku, Yokohama, Kanagawa Pref.
247-8610, JAPAN
TEL：+81-45-897-2421
FAX：+81-45-897-2470
http://www.shibaura.co.jp/

SKB0320A 1809
EDC180394