Profile
Shibaura Mechatronics Corporation commenced operations in 1939 under the name of Shibaura
Engineering Works Co., Ltd. as an electric power equipment manufacturer, mainly of electric motors. The
Company significantly contributed to building the infrastructure of the industrialized society in the 20th
century.
In the last decade, however, the Company carried out a bold business restructuring and changed its nameto Shibaura Mechatronics Corporation to reflect its new objective of supplying electronic device
manufacturing equipment. At the same time, the Company defined its corporate identity as The Providerof Infrastructure for the Digital Age .
The 21st century is the age of the Internet and of the environment. To fulfill the demands of this century,
the Company has declared that it will become e-Shibaura , a truly electronic enterprise, as well as EShibaura , an enterprise that places priority on the Earth's environment. In other words, as e & EShibaura we will supply products and services that are suitable for the age of the Internet and of theenvironment while encouraging innovative behavior and thinking among our employees in the pursuit ofglobal business expansion.

History

1875
Shibaura Engineering Works Co.,Ltd.

Tokyo Electric Company

1939

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

Shibaura Engineering Works Co.,Ltd.
Electric motors

Industrial Mechatronics Business Unit

1932

1949

1991

Tokuda Seisakusho Co.,Ltd.

1996
Vacuum applied equipment

Toshiba Automation Co.,Ltd.
Manufacturing automation equipment

Shibaura Engineering Works Co.,Ltd.
Toshiba Mechatronics Co.,Ltd.

Motors, FPD manufacturing equipment, etc

Semiconductor manufacturing equipment, etc

Motor business
was transferredOct.,1998
SHIBAURA MECHATRONICS CORPORATION

Contents
Financial Highlights

1

Message from the President

2

Shibaura ready for "e" & Environment

6

Environment Activities 2001 in Shibaura

9Financial Data

10

Board of Directors

12

Corporate Data

13

The Leaf symbolizes E , the Environment

Thousands of U.S. dollars

Millions of yen

2002
Consolidated

2001

2002

Years ended March 31

Net sales¥ 54,917

Operating income（loss）（1,536）

3,262（11,528）

Net income（loss）（1,118）（141）（8,397）

Total shareholders' equity

18,514

19,704

138,946

Total assets

67,64775,394

507,674¥（22.43）¥ （2.83）$ （0.16）

Net sales¥ 45,406¥ 63,149$ 340,759

Operating income（loss）（1,679）2,649（12,602）

Net income（loss）（1,168）（2,213）（8,765）

Total shareholders' equity

17,264

18,774

129,561

Total assets

61,88270,716464,410¥（23.42）¥（44.25）$ （0.17）

Net income（loss）per share¥ 71,117$ 412,140

Non-Consolidated

Net income（loss）per share                      ￥ ! ""   #  ""

To Our Shareholders
At the end of the 20th century, the Company carried out
a bold business restructuring and changed its company
name to Shibaura Mechatronics Corporation to reflect
its new objective of supplying electronic device
manufacturing equipment. At the same time, theCompany defined its corporate identity as The Providerof Infrastructure for the Digital Age .
Now in the 21st century, the development of electronic
technology seems limitless, and the widespread use ofmobile equipment and the Internet is accelerating the
globalization of markets. Electronic device manufacturing
equipment for such products as semiconductors, LCDs,
optical discs and rechargeable batteries, which supports
this trend, is an area where large changes occur in theeconomic environment, but it is also an area thatdefinitely promises to see continued high growth.
Therefore, as The Provider of Infrastructure for the
Digital Age , we will pursue business expansion while
focusing on this area.
As we push forward with this endeavor, we will
implement an electronic revolution that makes effective
use of networks in all our business operations with the aimof becoming e-Shibaura , a truly electronic enterprisethat is in tune with the age of the Internet.
Since the 21st century is also the century of theenvironment, we aim to become E-Shibaura , anenterprise that places priority on the Earth's environment.
As e & E-Shibaura , we will therefore supply products
and services that are suitable for the age of the Internet
and the environment while instituting innovative
management reforms.

Fiscal 2001 in review
In fiscal 2001, to clarify group management responsibility
further, we turned our domestic affiliated company
Shibaura EMS Corporation into a new consolidated
subsidiary. As a result, all our domestic affiliatedcompanies became subject to consolidated accounting.
Shibaura Mechatronics Taiwan Corporation became an
equity-method subsidiary because of its businessexpansion.

During fiscal 2001, the Company's performance wasadversely affected by the deep recession in the global
economy caused by a rapid drop in IT industry, and net
sales consequently fell well short of expectations:(1) consolidated sales reached only ￥54.9 billion, adecline of 23% compared with the previous term. As
regards earnings, we made efforts to improve profitability
by pursuing rationalization and cost cutting based on a
management innovation movement, as well as byexecuting the action plan that included reducing fixed
costs and other expenses. Nevertheless, these measures
were insufficient to make up for the impact of lower
sales and a decline in prices stemming from intensifiedcompetition. As a result, the Company reported on aconsolidated basis (2) an operating loss of ￥1.5 billion,(3) an ordinary loss of ￥1.9 billion, and a net loss of ￥1.1 billion. In consequence, the Company was forced tocancel payment of dividends.
The Shibaura Group is confronting this slowdown of themarket, and intends to accelerate the action plan designed
to reduce fixed costs, carry out various measures toreinforce the management, and achieve an earnings
recovery.
The Company made the following main achievements
in fiscal 2001. As overseas sales account for roughly 50%
of our total sales, we set up Shibaura Mechatronics(Shanghai) Co., Ltd., after setting up overseas subsidiaries
in Taiwan in 1999 and South Korea in 2000, and havethereby made way for business expansion in China,
where growth is most remarkable at present. Further,with the aim of speeding up and improving the qualityof maintenance services, as well as providing support
for product installation and start-up, we opened thee-Service Cente , which operates 24 hours a day.
In fiscal 2001, we also reorganized the operations of ourdomestic affiliated companies by selecting the form oforganization expected to ensure the greatest development
for each business unit and actively transferring businessto affiliated companies. More specifically, we took steps
in two areas.
Bussiness expansion in Chinese market
Supplied Equipment Example■FPD Manufacturing Equipment
・Outer Lead Bonder■Semiconductor Manufacturing Equipment
・Chemical Dry Etching System
・Eutectic Die Bonder

CHINA
Shanghai

Shibaura Mechatronics（Shanghai）Co.,Ltd.
Co.,Ltd■Media Device Manufacturing Equipment
・Sputtering Epuipment with Bonding System
・BM Sputtering epuipment
・Rechargeable Battery Manufacturig Epuipment■Laser Applied Equipment
・IC Marker
・Welding Epuipment for Rechargeable Batteries
・YAG Laser Repair System for LCD Panel(1) We transferred the sorting and gathering equipment

Company also aims to ensure that all products are easy tosection to our affiliate Tosei Engineering Co., Ltd. anddisassemble at the end of their life cycles and are able tointegratedit

be recycled.

equipment

section

with

our
to

previous

enablebusinessbusinessform

expansion

resulting from the synergies produced. In addition,

Not only our products, but also our various business

we transferred the operations of the machining andprocesses themselves must be electronically networked

assembling

division

andattempted

toreinforce

e-innovationand in harmony with the environment

external sales in the component machining business.

E- innovation . I believe that shortening business cycles

In association with these measures, we changed theby promoting e-innovation enhances corporate productivity

company name of Tosei Engineering to Shibaura

and gives customers the great satisfaction.

Precision Co., Ltd.
What is even more essential in order to reform products(2)

We

establishedtransferred
vending

ShibauraalmostmachineMechatronics

all

of

EMS
the

Corporation

operations

Works

to

such

and business processes is actually reforming the behavior

asof every one of our employees and their corporateat

Shibaura

culture. Interfacing through networks that are suitable forthatcompany.

themanufacturing

Obama

and

Shibaura EMS also concentrates in Shibaura Group's
electrical panel controller manufacturing. As a result,digital

age

as

well

as

enjoying

communication

between people and reunions with customers is thee-Culture

we are aiming at.

we can expect cost competitiveness by improving
operatingefficiency.

We

aim

to

expandthemanufacturing service business.

Shibaura

Mechatronics

Sumitomo

Heavy

companySynexreachedIndustries,

Ltd.

corporationagreement
and
to

its

with

affiliatedtransferoursemiconductor auto-molding equipment business, andwe transferred this business to Synex in June 2002.
Meanwhile, we intend to expand our operations in the
field

of

semiconductor

assembling

equipmentbyfocusing our resources more on such new packaging fieldas Flip Chip Bonder.

Shibaura ready foreand Environment

Regarding the Company's environmental activities, we
explicitly describe the achievements we have made and

The 21st century is the age of the Internet as well as theour planned activities in the Environmental Report,

age of the environment.

which is published annually. Declaring these activities
both

withinandoutsidetheCompany

not

only

Manufacturers that wish to succeed in the 21st century

accelerates our activities, but also shows our sincerity as

have a duty to develop products that show considerationa manufacturer.

for

the

regards

Earth'salltheenvironment.

Shibaura

products

itthatenvironmentally designed products

will

Mechatronics
developas

E-Products , andbesides working to develop products with high efficiency

If we didn't conducte-innovation , we wouldn't

be alive. If we couldn't carry out

E-innovation ,we wouldn't deserve to be alive.

and low-energy consumption that use less installation

Therefore,

space

robustly together with its customers in the 21st century.

andconsiderthe

Earth'senvironment,

the

e

&

E-Shibauraisdetermined

to

live

(5) Settlement of the Self-Assessment Program

Focus on Corporate Governance

We will formulate a program designed to improve
In fiscal 2001, exports to mainly Taiwan, South Korea,

our business efficiency. This involves establishing

and

the

items to check regarding major business processes

Company's total sales, and we expect to keep this export

and performing a self-assessment to ensure there are

ratio. Consequently, Shibaura Mechatronics Corporation

no factors that will hinder the execution of thesewishes to be a global and open-minded company with aprocesses.

high

the

U.S.

degreeaccounted

offortransparency.

roughly

We

are

50%

of

putting

intopractice several policies to realize this aim. In last fiscal(6) Issue of the Management Book

year's annual report, we reported on the following

We will summarize in a single management bookmeasures.

various matters, including the basic preparedness
that manager are required to display and the various
regulations that they have to comply with. We will
distribute this book to all managers, and this will
raise

every

manager's

awarenessofCorporate

Governance.

Further, we are striving to reinforce our IR activities. We
hold regular IR meetings for institutional investors andsecurities analysts both in Japan and abroad, and wewill make efforts to provide general investors withvarious opportunities to gain a clearer understanding of
the Company. We also intend to adopt further measures
to ensure that the general shareholders' meeting is
open-minded.

In anticipation of the Company's vigorous development,
we ask all our shareholders for their continued supportand understanding.

June, 2002

(1) Appointment of an outside company director(June 2001)(2) Appointment of CRO (Chief Risk Management Officer)(April 2001)(3) Establishment of Management Audit Division(April 2001)(4) Publication of Environmental Report(First edition published in June 2001)
In fiscal 2002, we will also carry out the following
measures.

 President and Chief Executive Officer          

Our focus on electronic networks e-innovation shares some common points with our focus on the environment
E-innovation in both the scope of our business activities and in our behavior. Both strategies must address the products
and systems that we supply, Products , all the business processes involved in manufacturing and selling these products,
Processes , and the thinking and behavior of all of our employees, Culture .
Corporate Identity

Corporate Philosophies

The Provider of Infrastructure for
The Digital Age① Innovative in all things② Pursuit of rationality③ Respect humanity

Internet-age
Internet-age
21st Century

Environment-age

e-Shibaura

E-Shibaura

e & E-ShibauraeE

Products

Software-oriented machineIntelligence system

Minimization（foot print / weight / volume）
Energy saving（Reduce power consumption）

Process

Shorten business cycle time

Minimize industrial waste
Reduce release of chemical substances

CultureSpeed, Digital Mind, Profit, Communication

Commitment to the earth and humane-Products and E-Products
The e-innovation and the E-innovation are fused together, and the relationship produces synergies. Reductions in volume,
weight, power consumption, and installation space (particularly important for the efficiency of clean rooms) are key indicators for
E-Products , but these goals will be achieved for the first time through more intelligent software-oriented e-Products .

Etching and Ashing equipment for 300mm wafer
with platform AllegroeRemote diagnosis
Self-diagnosis

E
Power consumption
WeightVolumeFoot print
Oxygen consumption

1/3
1/2
1/2
1/2
1/2

Per chip, Compared with the previous one

High-output LD（Laser Diode）pumped YAG lasereE
1/4
Remote diagnosis
Power consumption
1/3
Self-diagnosis
Volume1/2
Foot print
LD life time 20 times longer
than Pumping Lamp
Compared with the previous one 
Progress of e-Shibaura

e-Service Center
Remote Supervising

In conducting business centered on its corporate identity
as The Provider of Infrastructure for the Digital Age ,Shibaura is promoting the e-innovation by applying
network functions to all of its business activities andprocesses.
In fiscal 2001, the Company made the following
e-innovation achievements:

e-Service Center
CustomerInternet

Telephone

FAX

On October 1, 2001, we opened an e-Service Center
within our Yokohama Operations. This center is designed
to shorten the period of installation and start-up for
equipment delivered to our customers and to improvecustomer service through the provision of faster andhigher-quality maintenance service.
Based on a 24-hour operation utilizing the Internet andother networks, we are providing support for both ourcustomers and our field engineers.

Service Location

e-Sales/Procurement■e-Sales of Cartesian robot
・Create potential customer
・Shorten the period through inquiry
to order receipt
・Provide the brand-new technicalinformation
・Deliver in five days

■Web EDI procurement■Create suppliers in the web pagefor materials procurement

Moreover, the Company is able to remotely monitor theoperating status of equipment delivered to our customers
via networks. Constantly monitoring the status ofequipment, conducting surveillance of abnormal
equipment conditions and status, analyzing the causes,
and contacting service personnel enables us to solve
problems promptly and fosters preventive maintenance.

e-Sales and e-Procurement
Shibaura began e-Sales of its Compoarm Series ofrobots in August 2001, utilizing a Company-developed
web system that handles such functions as model
selection and cost estimation. As a result, we were able toshorten the period from inquiry to order receipt and at
the same time thoroughly standardize components interms of design and production. This enabled us todeliver products in five days from the time when they
were ordered.
We also have been actively promoting e-Procurement
as an innovative way of obtaining materials, and this has
led to significant cost reductions. In January 2002,
Shibaura created an exclusive web page for materials
procurement, and a month later the Company initiated
Web EDI (Electronic Data Interchange) transactions.

  

E-Shibaura
E-ProcessAll of the Company's various corporate activities(Processes) must be in harmony with the environment.
By promoting the e-innovation in all of our internal
production activities, ranging from design to manufactureand service, we have shortened business cycles. Enhancing
productivity also leads directly to the lightening ofcorporate activity, and this in turn helps to lighten theburden placed on the Earth's environment.

E-Products
Manufacturers wishing to succeed in the 21st century
have a duty to develop products that show consideration
for the Earth's environment. Shibaura regards all the
products that it will develop as E-Products , and in
addition to working to develop highly efficient productsthat save energy consumption and installation space, theCompany also aims to ensure that all products are easy todisassemble at the end of their life cycles and are able tobe recycled.

E-Culture
Regarding the Company's environmental activities, we
explicitly describe the achievements we have made as
well as our planned activities in our Environmental
Report, which is published annually. Declaring these
activities both within and outside the Company not only
accelerates our activities, but also shows our sincerity asa manufacturer.

The Voluntary Environment Plan
For the establishment of the recycling-based society, it is incumbent on companies to assume greater social responsibility
and act as good corporate citizens, and the voluntary environmental plan by which companies make a public commitment
to voluntary action holds a particular significance.
Shibaura Mechatronics Corporation has formulated the following voluntary environmental plan and is continuously
carrying out its activities of environmental protection.
Prevention of global warming◆Reduce by 28% in fiscal 2010 compared with fiscal 1990 the ratio of CO2 release to net sales

Zero emission of waste◆Starting in fiscal 2000, achieve zero emissions of waste by fiscal 2005
(The quantity of final disposal to be 1% or less of total discharge )Reduce release of chemical substances◆Reduce by 30% in fiscal 2005 compared with fiscal 2000

Voluntary restrictions on noise, vibration,water and air pollution◆Comply with self-imposed restrictions based on legal restrictions

Disclosure and contribution to society◆Expand environmental information disclosure and make environmental contributions to local communities◆Publish environmental report and employ environmental accounting continuously

Green procurement◆Set target for fiscal 2005 with fiscal 2000 as a benchmark

Create environmentally designed products◆Create environmentally designed products, assessed by weight reduction and energy savings
Based on fiscal 2000 standards, by fiscal 2005:
・Achieve
30% reductions in weight and electricity consumption per production function
・・Ensure that greater than 50% of total products are environmentally designed     Fundamental Principles for Environmental Protection
Shibaura Mechatronics Corporation, in its principles for environmental protection based on the Environmental Charter, has
three basic concepts of environment Ð conscious activities in the name of E-Shibaura .
Shibaura Mechatronics promotes environmental protection activities, in a technically and financially appropriate way,recognizing that the earth is an irreplaceable asset, and that it is mankind's duty to hand it on to future generations in asound state.

Basic Policy for Environmental Protection
As The Provider of Infrastructure for the Digital Age ,Shibaura Mechatronics Corporation contributes to society
with environment-conscious
production activities and byproviding environmentallydesigned products to theworld.
The Company makes activities
of environmental protection a
primary concern in conducting
its business, recognizing thatthe earth is an irreplaceable
asset, and that it is mankind's
duty to hand it on to future
generations in a sound state.

Environmental Considerations
in Business Activities
Prevention of Global Warming
Measures to reduce greenhouse gases in an effort toprevent global warming are an international challenge. In
Japan as well there is a need to adopt reduction measures
as part of corporate activities.
Shibaura has established and is implementing a
voluntary plan under which it aims by the year 2010 to
reduce net production of CO 2 by 28% (compared to thelevel of CO 2 production in 1990). This represents a
reduction of 3% on top of the industry benchmark, whichcalls for a corresponding reduction of 25%.
◆The ratio of CO 2 emissions to production（t-C/100 millions of yen）

21.9

History

21.6

21.2

20.9

20.6

20.7

17.2

15.1

15.8

18.8

98

99

00

01

02

◆Transition of CO 2 emissions（t-C）

3000.22356.81768.01969.6

1960.6

98

99

00

01

02

Zero Emission of Waste
Recycling（t）

Total output◆Transition of the volume and recycling rate

Waste（t）…◆2001………………………………………………………
・Won the Award for Environmental contribution from
Yokohama City…◆2000………………………………………………………
・Achieved zero-level use of heavy oil
・Obtained ISO 14001 certification…◆1998………………………………………………………
・Acquired certification as Environmental Management
Office from Kanagawa Prefecture
・Formulation of Basic Policy for Environmental Protection…◆1997………………………………………………………
・Installation of raw garbage processing facility (volume
reduction of raw garbage and conversion into
fertilizer for trees on site)…◆1989-1996………………………………………………
・Formulation of first voluntary plan・Total abolition of trichloroethane・Total abolition of fluorocarbons (CFCs)
・Basic regulations on environmental preservation:
publication of first edition

Year ended March 31

Year ended March 31

75.3

83.6

93.3

51.6

54.1

622.5

643.5

790.5

1044.31055.8

583.2

546.1

292.2

205.1

75.7

99

00

01

02

98

Recycling（t）

Recycling Rate（%）

Corporate
Data
As of March 31, 2002
・Date Established・Common Stock Price Range (The Tokyo Stock Exchange)

October 1939

・Paid - in Capital
5,868 Million -Yen

FY1999FY2000FY2001

FY2002High (yen)

790

1,885

1,330

710

Low (yen)

255

511

445

253

・Common Stock
Issued and outstanding :50,033,312 shares

・Number of Employees

・Principal Shareholders

1,058

・Shareholders
9,248

・Stock Listings
The Tokyo Stock Exchange

・Accounting Auditor
Century Ota Showa & Co.

Number of shares held
（thousand shares）

Percentage of total shares
outstanding（%）

Toshiba Corporation

23,477

46.9

MITSUI & CO., LTD.

715

1.4

UFJ Trust Bank Limited

340

0.7

The Mitsubishi Trust andBanking Corporation

313

0.6

2-5-1, Kasama, Sakae-ku,
Yokohama,Japan, 247-8610
PHONE：+81-45-897-2421
FAX：+81-45-897-2470
http://www.shibaura.co.jp/
Printed on Recycled Paper
SEB-0003A 1T 0206