芝浦PDF用 01.6.9 3:49 PM ページ 2

芝浦PDF用 01.6.9 3:49 PM ページ 3

Shibaura Mechatronics Corporation was founded in 1939, succeeding the well-established"Shibaura Engineering Works Co., Ltd.", which was famous as one of Japan's largest◆

manufacturers of heavy electrical equipment. The company significantly contributed tobuilding the infrastructure of the industrialized society of the 20th century by supplying
electric power equipment, mainly industrial motors.
Now in the 21st century, there is no limit to the progress of electronic technology. The◆

widespread use of mobile equipment and the Internet is accelerating the globalization ofmarkets. And the company's business of producing electronic device manufacturing
equipment for such products as semiconductor devices, LCDs, optical discs and rechargeable◆

batteries has become an increasingly important mission as a "provider of infrastructure forthe digital age".
Entering a new century, the company has declared it will become "e-Shibaura", a true "eCompany". The company is newly determined to meet global customers' requests, not only
by providing products and services that are suitable for the Internet age, but by encouraging
innovative behavior and thinking among its employees.

◆

Contents
Financial Highlights ………………………

1

Message from the President ……………

2

e-Shibaura …………………………………

6

Financial Data ……………………………… 10
Board of Directors ………………………… 12
Corporate Data …………………………… 13

出力用 01.6.9 3:19 PM ページ 2

Thousands of U.S. dollars

Millions of yen

2001

2001

2000

Consolidated

Years ended March 31

Net sales¥ 71,117¥ 75,935$ 573,989

Operating income

3,262

2,735

26,325

Net income (loss)

(141)

(215)

(1,139)Total shareholders' equity

19,704

19,684

159,033

Total assets

75,394

83,090608,508¥

Net income (loss) per share(2.83)¥(4.65)$(0.02)

Non-Consolidated
Net sales¥ 63,149¥ 52,562$ 509,681

Operating income

2,649

1,995

21,380Net income (loss)(2,213)610(17,862)

Total shareholders' equity

18,774

21,176

151,525

Total assets

70,716

66,691

570,752¥ (44.25)¥ 13.18

Net income (loss) per share$(0.35)

Note 1: The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only,at the rate of ¥123.90=U.S.$1.00, as of March 31, 2001.

(¥ Billions)
76

71
83

63
52
50

49 44

53

1
0.2

0.3 0.3

0.6
0.2
-0.1

98

99

2000 2001

Net sales

20
71

42

97

21

75

52

97

98

99

61
60

56

54
52

53

97

98

67

16

20
19

17

12 12 12 12-0.2 -0.1-2.2
2000 2001

Net income

99

2000 2001

Total assets

97

98

99

2000 2001

Total shareholders' equity

Years ended March 31

Consolidated

Non-Consolidated

Note 2: Amounts in fiscal 1997 indicate the financial results of Shibaura Engineering Works Co., Ltd.
before the merger with Toshiba Mechatronics Co., Ltd.

1

出力用 01.6.9 3:19 PM ページ 3

TO OUR SHAREHOLDERS
Shibaura Mechatronics Corporation is a high-tech, global company headquartered in Yokohama City, Japan.
The Company manufactures and supplies manufacturing equipment for semiconductors, LCDs, and opticaldiscs as well as automated machines and laser equipment.
We started operations in 1939, succeeding Shibaura Engineering Works Co., Ltd.'s well-established name,which was famous as one of the largest manufacturers of heavy electrical equipment in Japan. The Company
significantly contributed to building the infrastructure of the industrialized society throughout the 20th century
by supplying electric power equipment, particularly industrial motors.
As the 21st century neared, we succeeded in shifting our business to supplying manufacturing equipment forelectronic devices, which are known as the "staple of industry" in today's Information society. In 1991, Shibaura
Engineering Works Co., Ltd., merged with Tokuda Seisakusho Co., Ltd., a manufacturer of vacuum pumps andequipment. In 1998, the Company spun off the small motor business, one of the Company's main businesses
since its establishment. At the same time, we merged with Toshiba Mechatronics Co., Ltd., a mechatronics andautomation equipment manufacturing company in the Toshiba group, changed our name to Shibaura
Mechatronics Corporation and established a new corporate image and identity as "The Provider ofInfrastructure for the Digital Age".
Now in the 21st century, the progress of electronic technology seems limitless. The widespread use of mobile
equipment and the Internet is accelerating the globalization of markets. We are committed to producing
electronic device manufacturing equipment for such products as semiconductors, LCDs, optical discs andrechargeable batteries, therefore, remaining the provider of infrastructure for the information age.
Now at the threshold of a new century, we are geared to become "e-Shibaura", a true and unique"e-Company". We are newly determined to meet global customers' requests, not only by providing products
and services that are suitable for the Internet age, but by encouraging innovative behavior and thinking among
our employees.
2出力用 01.6.9 3:19 PM ページ 6

FISCAL 2000 IN REVIEWThe first half of fiscal 2000 was favorable thanks to active
capital investment for semiconductors and LCDs
manufacturing equipment in Japan, Taiwan and Korea.
However, the second half was less favorable, because themarket began to head toward the bottom of the silicon andcrystal cycles. During the fiscal year under review, we
launched new businesses in semiconductor wet cleaning
equipment. We also took system orders for Li-ion polymer
battery manufacturing equipment for new rechargeable
batteries for mobile equipment. Finally, we developed andcommercialized the high productivity sputtering equipment
OCTAVA for rewritable CD-RWs and DVDs. In spite of adifficult operating climate, we again reported record results
for net sales, operating income and ordinary income: (1)consolidated sales declined 6.0%, to ¥71.1 billion due to
Shibaura Nidec Corporation no longer being consolidated
because of sales of its shares. Non-consolidated sales rose
20%, to ¥63.1 billion, (2) consolidated operating income of¥3.3 billion (¥2.6 billion on non-consolidated basis), (3)consolidated ordinary income of ¥2.9 billion (¥2.5 billion on
non-consolidated basis), which was double that in theprevious year.
In accordance with a change in the accounting standard
for retirement benefit schemes, the Company posted a ¥5.1
billion extraordinary loss due to a special provision to its
retirement benefit allowance. The Company also booked a¥1.2 billion extraordinary loss on sale of Shibaura Nidec
Corporation's stocks in its non-consolidated statements. As
a result, the Company registered a loss on both aconsolidated and non-consolidated basis, but we believethat the Company's actual operating performance wasprofitable. Consequently, we decided to pay annual cash
dividends of ¥5 per share.
We scored a number of achievements in fiscal 2000. In
August, because exports account for more than 40% of oursales, we established a joint venture company, SCK Co.,
Ltd. (Shibaura Chisan Korea Corporation), with a local
company in Korea. The joint venture is our second
company in Asia following a company in Taiwan. In
October, we invested in Toshiba Socio-Engineering Co.,
Ltd., working to strengthen our skilled engineering staff.
Three years ago, to enhance the competitiveness of ourbusiness of home-appliances that use small motors, weestablished a joint venture company, Shibaura Nidec Co.,
Ltd. in October 1998.
3

出力用 01.6.9 3:20 PM ページ 7●
However, we decided to transfer all our shares to Nidec Corporation, another joint company, in September,and unify their operations for quick management restructuring. In March, to strengthen the business, we
decided to consolidate the Shibaura Vending Machine Corporation, an affiliated company for sales and service
for cigarette and ticket vending machines, with our Vending Machines & Systems Division at our Tokyo bay
office in Minato-ku, Tokyo.
In January 2001, the division was transferred and the system was unified, from planning and sales to service.
Even after this, we will be in charge of their development and manufacturing. This action was taken to ensure
quick response to the rapidly changing business environment in the information age, such as the conversion of
products to IT-versions.
In February 2001, Shibaura Mechatronics Corporation received the Corporate Prize at the Ansoff Award
from the Japan Strategic Management Society (JSMS). The Ansoff Award is an award for pioneering andexcellence in strategic management. This award was named for an honorary chairman of JSMS, Dr. H. Igor
Ansoff and goes to a company that achieves remarkable results in strategic management. The reason that ourcompany received this award was a high evaluation of our management reformation over the past three years
and our excellent results. This award has further motivated us to work toward furthering management
revolution.

e
sup
W
Ser
rea
ade
ins
glo

T

Ansoff Award commendation ceremony on February 26, 2001

ON THE WAY TO BECOMING A BILLION DOLLAR COMPANY
Shibaura Mechatronics Corporation has declared it will become an "e-Shibaura": a true "e-Company", which
provides e-Products, e-Service, e-Process and e-Culture. Based on this slogan we are determined to meet global
customer's requests. Not only by providing products and services that are suitable for the Internet age,concurrent with introducing new electronics applied business processes, but by encouraging innovative
behavior and thinking from our employees. To ensure the success of our transformation to "e-Shibaura", we arepromoting a management innovation movement called SM2001 throughout the Shibaura Group, which will
finish in fiscal 2001. This movement uses the Six Sigma methodology. This program will lead directly to
improved corporate performance. In fiscal 2002, we believe we will reach ¥100 billion in sales and become abillion dollar company.
4

●
A
eva
eng
the
O
hop
fro
pro

出力用 01.6.9 3:21 PM ページ 10

FOCUS ON CORPORATE GOVERNANCE
Exports to Taiwan, Korea and the U.S. constitute 44% of our total sales in fiscal 2000. As the export ratio is forecast
to increase in the future, Shibaura Mechatronics Corporation wishes to be a global and open-minded company. Eachof our major targets is guided by the following basic business strategies:(1) Appointment of an outside company director
We will introduce an outside company director at the shareholder's meeting this June.
(2) Appointment of CRO (Chief Risk management Officer)
Mr. Amano, the senior vice president, was appointed as the CRO in April 2001, who will be responsible for risksensitive management.
(3) Management Audit Division
The Management Audit Division was newly established in April 2001, for the purpose of auditing groupcompanies and the sections inside the Company more effectively, and reporting directly to the President.
(4) Environmental Report
One of our corporate philosophies is to respect humanity. Thus we think environmental activity is fundamental
to the Company's administrative actions. So we plan to issue an environmental report, and express the details
directly to people inside/outside the Company.
(5) Reinforcing Investor Relations activities
The Company plans to hold periodic IR meetings for investors and analysts not only in Japan and Europe, butalso in the U.S. As well as every other meeting that can be held to explain the Company's status precisely andclearly to domestic general investors from this year. The Company will make efforts to ensure that the generalshareholders' meeting will be open-minded.
As the new century begins, we ask our shareholders and business partners for their continuous support andunderstanding as we proceed with this major undertaking.
June 2001

TADAO SUMI
President and Chief Executive Officer

ers

ld
ho

are

Sh

Stakeholder

So
cie
ty

Pursuit ofcustomersatisfaction

Employees

e-Shibaura
s
es
Pr
oc

ic

e

e-

ts
uc

rv

ure

rod

Se

ult

e-P

e-

e-C

e-Shibaura

Corporate
Philosophies

Shibaura Company Strategy

Company

Innovative in all things

Pursuit of rationality

Respect humanity

The Provider of Infrastructure for the Digital AgeManagement Innovation Movement SM2001

5

e-Shibaura

出力用 01.6.9 3:21 PM ページ 11●Progress of the Internet Society●B

With the popularization of the Internet, the widespread use of PC's in offices and home, and the increasing
prevalence of cellular phones worldwide, the Internet society is already coming true today.
In the first stage of the Internet society, infrastructure providers of the Internet have achieved outstanding
performance by providing PC's, cellular phones, optical fibers, software packages and related products.
In the second stage, cyber companies that provide various kinds of services, such as online music, online video,
e-commerce, and electronic banking, are expanding rapidly.
The special features of this society are: no time lag, no degradation of information, an infinite number of users
and infinite business possibilities. Making the most of these features, it is taken for granted that the society will
be changed dramatically and globally.
In the third stage, bricks & mortar companies as represented by industrial manufacturers will have to makechanges suitable for the Internet society and steadily develop.
In the 21st century, Shibaura Mechatronics Corporation aims to become "e-Shibaura", a company in which allactivities are linked to the Internet as appropriate for an e-revolution company, and we will endeavor to innovate
our management to reach this goal.

In
"pr
Co
bus
A
dev
Int
age

A

The Internet Society

Cyber Companies
OnlineMusic / Video
Online Shopping
e-Commerce

Weather Forecast/ Events

Electronic Banking/ Stocks

Infrastructure
ProvidersElectronics

Network
Equipment

SoftwareEducation

DevicePCs

Manufacturing
Equipment

Shibaura● ● ● ● ● ● ● ● Mechatronics●
Corporation

Real Companies
6

Manufacturing

Bank / Securities●●●●●●●●●

S

出力用 01.6.9 3:21 PM ページ 12●Becoming "e-Shibaura"

Four areas of e-Shibaura

In carrying out its business in keeping with its aim of becoming a"provider of infrastructure for the digital age", Shibaura Mechatronics
Corporation will spur the e-revolution by applying network functions to allbusiness activities and processes.
Aiming to become "e-Shibaura", the company will focus on four areas ofdevelopment, e-Products, e-Process for business activities utilizing theInternet, e-Service, and the establishment of e-Culture for the Internetage.

An example of installing an e-Product

Supervising
Production Control
Availability Control
Process Control

The Internet

Customer's Factory

e-Service Center

On a 24-hour basis,
Supervising/Diagnosis/
MaintenanceHelp Desk
Inner Company
Network

Intra-net
Urgent contact byInformation
cellular phone
retrieval/e-mail

MobileShibaura's e-Products
Operator

Shibaura's
service staff

Rush tothe site
Respond・Technicalimmediately consultation/assistance・Maintenance/assistanceby remote accessTechnical assistantserverEquipment/Customer
management server

Products expert

Shibaura's first e-Product: YAG laser marker LAY-700 Series■Digital Link
Realizing digital communication
to improve reliability
・Remote editing of marking fonts
・Remote evaluation of marking image
・Remote diagnosis of errors and failures■Laser Oscillator

LAN●Development of e-Products
e-Products are intelligent machinesthat are equipped with self-diagnostic
functions, remote software upgrade
and install functions, and remote
maintenance functions.
e-Products are not only connected
to customers' CIM (Computer Integrated Manufacturing system), but also
to Shibaura's service center and data
center by all kinds of communicationlines, and are placed under thesupervision of the company.
e-Products acquire the latest
information through an online
connection with the data center at all
times. They can thus improve andmaintain operations and functions at
the most immediate level.
The YAG laser marker LAY-700
Series, which made its sales debut in
October 2000, is the company's firste-Product.
We intend to successively launch
new e-Products in the future.

Telephone line

■LAYMARK 2

7出力用 01.6.9 3:20 PM ページ 9●e-Process
e-Process is a new business model intended to improve the company's productivity and serviceability by connecting
all business activities, such as sales, procurement, designing, manufacturing and service to the Internet.
At our Sagamino Operations, the new production system SUMMIT started operations in March 2000. It manages arange of jobs from designing and outputting drawings for the workshop and manufacturing partner, to cost estimationand ordering, in real time.
The system works even more effectively than expected. The drawings recycling rate has increased to 80%, and theestimation lead times have been cut to one third of previous levels.
We plan to introduce this system more widely in the company.

Manufacturer's e-Process Model

E
to i
of o
(1)
(2)

(3)
Demand Chain

DesignDevelopment

Product Development

Design House

Research
Institute

Alliance

Pre-Production(4)

Process control
Production
Partners

FAT Company

Installation &Commissioning

A
und
Jun

DealerMaterial Suppliere-Production

Sales

E
C

(5)
Service OfficeE
C

e-Sales / Service

e-Procurement

CAD / CAM data

Procurement

Machining Center

e-Design

Design data / Remote maintenance

Cooperative development

CustomerPrototype
Producer

Production / Logistics

Supply Chain

New production system SUMMIT at Sagamino Operations
Plan
Planning

DesignEstimation

Procurement

Designcontrol

Design Control

Drawings
management

Estimation

Production cost estimation

Logistics

8

Shipment

Production
planning

DesignManufacturing

Manufacturing

Procurement

Outputting&
SortingCor
Ph
Production
control
Delivery control

出力用 01.6.9 3:20 PM ページ 8●e-Service
e-Service is a synthetic service in which customers can obtain various services, such as quick installation,
supervision and maintenance of e-Products through the Internet in real time on a 24-hour basis.
We are pressing ahead with commercialization of new e-Products. At the same time, we plan to open an eService Center in our Yokohama Operations in October 2001, and to expand our facilities step by step. In
realizing the functions of e-Service, we aim to adjust the infrastructure to establish an e-Process with anadequate working system. This system will supervise already installed equipment and to support its engineers'
installation work on site. Accordingly, Shibaura Mechatronics Corporation will provide advanced services toglobal customers with no time lag and no regional discrepancies.

The conceptual diagram of e-Service Center■Engineer■Operator■Equipment

The Internet

Customer

Telephone lines

Service Location■Service center

Installation &Commissioning Site
■Field engineer

Cellular phone network■Service person

e-Service Center
Web SiteHomepage
New productreleaseQ&A

customer's equipment■Troubleshooting■Responding to customer's

inquiries

Assist customer

Customer
Service Section

e-Data Center
Equipment monitoring
Customer management
Technical support

Sales■Operational status ofSupervisor

Assist field engineers
Call center / Help desk

Technical Center■Sample test

Support Desk

■Demonstration■Evaluation

Experts of each productBasic Information
Systems■America■Taiwan■KoreaA private line

Overseas Location

Engineering &designing section●e-Culture
A revolution is taking place in our workplace by adopting digital thinking management. For example, digital
evaluation of the outgoing product quality, which we have already started to use in the workplace, allows every
engineer to represent results visibly, resulting in everyone understanding without explanations. Making use of
the Internet accelerates this small but significant revolution in the workplace.
On the other hand, we believe face-to-face communication will be more important in the Internet society. We
hope that the humanity and friendliness of our corporate culture and our employees as expressed to customers
from Japan and overseas, who visit us for business discussions and inspections, will become our most prized
product.
9

出力用 01.6.9 3:19 PM ページ 5

Millions of yen●Five-Year Summary
2001

2000

1999

1998

1997

Years ended March 31

Consolidated¥ 71,117¥ 75,935¥ 43,875¥ 52,192¥ 52,124

Cost of sales

55,17559,85333,86840,58540,968Gross profit

15,942

16,082

10,007

11,607

11,156

Selling, general and administrative expenses

12,68013,347

9,506

11,112

11,200Operating income (loss)

3,262

2,735

501

495

(44)

Income (loss) before income taxes(1,197)

(968)

45

982

598

Income taxes(1,056)

566

156

717

354

-

(1,319)

-

(67)

-

(141)

(215)

(111)

332

244

Net income (loss) per share¥ (2.83)¥ (4.65)¥ (2.80)¥ 9.95¥ 7.31

Total current assets

49,71853,82534,16028,262

27,072

Net property, plant and equipment

22,037

26,051

24,82926,306

9,718

Total current liabilities

41,033

48,72927,58928,40926,534

Total long-term liabilities

14,657

14,677

17,054

15,471

14,882

Total shareholders' equity

19,704

19,684

16,127

12,34012,404

Total assets

75,394

83,09060,77056,22053,820Financial Data

Net sales

10

Minority interests in loss of
consolidated subsidiaries
Net income (loss)

T
cap
ma
Ho
ma
cry
lau
equ
bat
bat
com
OC
diff
for
con
Shi
bec
20%
¥3.
con
non
pre
In
for
bill
ret
¥1.
Co
a
con
tha
pro
div
W
Au
sal
Ltd
com
com
Oc
Ltd
T
bu
est
Ltd

出力用 01.6.9 3:19 PM ページ 4●Financial Analysis
Consolidated Sales by Segment

Consolidated Overseas Sales by Region

Years ended March 31(¥ Billions)

71.1

2001
2000

75.9

2000

75.9

Years ended March 31(¥ Billions)

2001

27.9

2000

27.5

9.0

1999
43.9

1999
1998
0

10.5

1998

52.2
45

90

0

10

20

30

1998〜2000
Electric power components

Electronic equipment

Automation equipment

Real estate leasing

2000,2001
Fine mechatronics equipment

Automation systems &vacuum equipment

Vending machine & systems

Real estate leasing

Northeastern Asia

Other regions

Note: Major countries or regions included in each geographical area
Northeastern Asia -- Korea, Taiwan
Other regions -- U.S.A.,the Netherlands

Capital Expenditures

R&D Expenses(¥ Billions)(¥ Billions)Years ended March 31

2001

2.6

2000

2.1

0

0.5

1

1.5

2

1.0

2000

1.0

1999

1.4

1999

Years ended March 31

2001

2.5

3.5

0

3

1

2

3

D/E Ratio

Cash Flows(¥ Billions)(%)
Years ended March 31

2001

1.7

4.6

＊ Note 1

1

2

3

132.7

1999

2.3

1999

Years ended March 31

91.3

2001
2000

2.8

2000

0

4

5

151.1

0

50

100

ROE
(%)

Years ended March 31

2001

-1

200

Years ended March 31

-2.2

-1.2

2000
-0.8

-2

(%)

2001

-1.2

1999

150

ROI

-0.7

2000

4

1.4

1999
0

1

2

-2

-2

-1

0

1

2

Note 1: The dotted bar in FY2001 indicates cash flows excluding the increase in retirement benefit allowance.

11

出力用 01.6.9 3:19 PM ページ 1(As of April 1, 2001)

Co
Ne
Op
Ne
To
To
Ne
No

Board ofDirectors

Standing, from left; Osamu Ushiku, Michirou Ishii, Yoshio Amano, Iwao Komatsu, Kunihiko Wada, Toshio Yokouchi, Tadao Sumi, Tetsurou Yanagiya, Hajime Okado, Kiyoshi Ozawa,
Hiroshi Yamamoto, Toshimichi Sanada, Choichi Kimura, Shunichi Kato

■President and Chief Executive Officer:
Tadao Sumi
■Executive Vice President:
Kunihiko Wada
SHIBAURA VENDING MACHINE CORPORATION
President and Chief Executive Officer

Tetsurou Yanagiya
Assistant to President
Chief Technical Officer(Technology Planning & Coordination Division)(Research & Development Division)■Senior Vice President:
Hiroshi Yamamoto
Chief Manufacturing Officer
Executive Quality Leader
Chief Procurement Officer(SAGAMINO Operations)(OBAMA Works)(Precision Machining Center)

Kiyoshi Ozawa
General Manager of Finance & Accounting Group

Yoshio Amano
President of Fine Mechatronics Company(Marketing Planning Group)(Chief Risk Management Officer)(Seibu Branch Office)General Manager of Export Control Division
General Manager of TOKYO Office■Vice President:
Toshio Yokouchi(General Affairs Division)(Corporate Planning Division)

Choichi Kimura

Ne
Op
Ne
To
To
Ne

General Manager of Fine Mechatronics Division

Iwao Komatsu
General Manager of Laser Systems Division
General Manager of Laser & Microwave Heating
Systems Sales Department
General Manager of Laser Systems
Assistant to President of Automation System &Vacuum Equipment Company(Automation Systems)

Not

(¥ B

Michirou Ishii
General Manager of Semiconductor Manufacturing
Equipment Division

Shunichi Kato
General Manager of YOKOHAMA Operations
Assistant to Chief Manufacturing Officer
SHIBAURA ENGINEERING WORKS CO., LTD.
President and Chief Executive Officer■Auditors:
Osamu Ushiku
Hajime Okado
Yasuaki Nakazawa (Outside)
Toshio Tsukuno (Outside)

Yea

Toshimichi Sanada
President of Automation Systems &Vacuum Equipment Company(Automation Systems & Vacuum Equipment Division)

12

Not

芝浦PDF用 01.6.9 3:49 PM ページ 4(As of March 31, 2001)◆ Date Established
October 1939

◆ Paid - in Capital
5,868 Million -Yen

◆ Common Stock◆ Stock Listings◆ Number of Employees
1,295

The Tokyo Stock Exchange◆ Shareholders◆ Accounting Auditor

9,108

Century Ota Showa & Co.

◆ Common Stock Price Range (The Tokyo Stock Exchange)

Issued and outstanding :50,033,312 shares

FY1998FY1999FY2000FY2001High (yen)

540

790

1,885

1,330

Low (yen)

215

255

511

445

◆ Principal Shareholders
Number of shares held
(hundred shares)

Percentage of total shares
outstanding (%)

23,477

46.9

Sumitomo Mitsui Banking Corporation

946

1.9

MITSUI & CO., LTD.

673

1.3

Japan Securities Finance Co., Ltd.

618

1.2

Toshiba Corporation

芝浦PDF用 01.6.9 3:48 PM ページ 1