ANNUAL REPORT 2012
Year ended March 31, 2012

ANNUAL REPORT 2012
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 completed an ambitious restructuring from which we emerged as a producer of manufacturing
equipment for LCDs, semiconductors and optical discs. At that time the company took on its present name, Shibaura
Mechatronics Corporation. Guided by our management philosophy of “contribute to the achievement of an affluent life by offeringsuperior technology and services,” and inspired by our determination to be “the infrastructure provider for the digital age,”
we support an evolving social infrastructure by supplying manufacturing equipment for the production of essential electronic
components.

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 Mechatronics Co., Ltd.
Semiconductor manufacturing

Toshiba Automation Co., Ltd. equipment and others
Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Shibaura Engineering Works Co., Ltd.
Motors, flat panel displays manufacturing
equipment 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・ ・・・・・・・・・・・・・・・・・・・06

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

Board of Directors・ ・・・・・・・・・・・・・・・・・・・48

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

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

Financial Highlights
Year ended
March 31,2012

Year ended March 31,
2012

2011

2010

2009

2008

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

(Millions of yen)

Consolidated

Net sales￥ 39,360		 ￥ 46,246		 ￥ 41,096		 ￥ 49,013		 ￥ 66,441
Operating income (loss)		
744(370 )		
(1,870 )(1,462 )		 1,647
Net income (loss)		
486 		 (1,752 )426(394 )		
(5,525 )		

$ 478,883
			 (4,506)
			 (4,796)

Depreciation and amortization		
Facilities expenditures		R&D expenses		

1,503		1,120		2,064		

1,765		1,154		2,110		

1,935			847			
2,193			

1,245
694
3,184

			 18,293
			 13,630
			 25,114

Total assets		 52,943		

54,250		

52,658			 55,649			 64,995

			 644,161

Net assets		 16,948		

17,492		

17,109			 18,870			 25,084

			 206,205

2,105			1,487			2,933			

(yen)￥

(7.98 )

Number of employees		

1,496		Net income (loss) per share

￥

9.83

(U.S. dollars)￥ (35.47 ) ￥(111.80) ￥1,532		

8.62$

(0.10)

1,631			1,694			1,802

		

1,496

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥82.19 = U.S.$1.00, as of March 31, 2012.

Net Sales(¥Billions)

Net Income(¥Billions)66

Net Assets(¥Billions)

Net Income Per Share

25
49
41

0.4

46

19

0.5

39

17

17

17

8.6

9.8

-0.4

-111.8

-5.5
'09

'10

'11

'12

'08

'09

-8.0

-35.5

-1.8

'08

(¥)

'10

'11

'12

'08

'09

'10

'11

'12

'08

'09

'10

'11

'12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201201

To Our Shareholders

We will continue to promotebusiness restructuring and cost
structure improvement and work tostrengthen our profitability.
into expanding into new growth business areas. Further tothis, we have been working on initiatives to promote cost
structure improvement in such areas as standardization,shortening lead times and reducing fixed costs. We arealso promoting improvements in employee productivity,
strengthening the management structure and working to
improve the overall business structure.
However, even as we have promoted customer expansion
and cultivated new growth business areas, the downturnin demand for large-sized LCD panel equipment has had asignificant negative impact on our operations, resulting in net
sales in FY2011 of 39,360 million yen and an operating lossof 370 million yen.

In FY2011 business conditions remained harsh, impacted
by such factors as financial instability in the EU, thecontinuing strengthening of the yen and the effects from theGreat East Japan Earthquake. In the business environment
in which Shibaura Mechatronics Group operates, the LCD
panel industry is a major source of revenue, but continued
oversupply and price declines in LCD panels for TVs
resulted in sluggish new capital investment in production
equipment for large-sized panels. On the other hand, thefast growing popularity of smartphones and tablets ensured
that capital investment in equipment for small- and mediumsized panels remained at a healthy level.
The semiconductor industry has seen aggressive in capital
investment in cutting-edge fields, driven by the increasing
demand for smartphones and tablets. However, demand forPCs has slowed and capital investment in mass production
equipment has been sluggish. Alongside this, a deteriorationin the balance of supply and demand in the solar powerindustry has caused prices to fall and capital investment has
been slow.
In these economic circumstances, Shibaura Mechatronics
Group made every effort to strengthen sales activities andwin orders in order to expand the number of customers forsemiconductors, small and medium-sized LCD panels andtouch screen panels, while at the same time directing energy

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

With concerns for a slowdown in the recovery of the US
economy and worries about the sovereign debt crisis in
the EU, as well as lower growth in China, we expect the
future to remain unclear in FY2012. In the LCD panel
market, demand for TVs is falling and capital investment inproduction equipment for large-sized panels continues tobe severely constrained. Having said that, we have seen theappearance of some signs indicating that investment may
resume. Aside from this, we expect to see continued capital
investment in production equipment for small and mediumsized panels and touch screen panels on increasing demand
for smartphones and tablets.
In the semiconductor market, the scale of capital investment
is, generally, becoming lower, however we do expect to see
growth in investment in cutting-edge areas and the forecast
is for continued growth.
Despite the fact that the company continues to operate
in a demanding environment, we will continue to promoteaccelerated launches of new products that utilize our coretechnologies and to expand our business into new growthareas in order to secure sales. We will also promote further
cost structure improvement and reduce fixed costs in order
to secure improvements in profitability.

Kenji Minami
President and Chief Executive Officer

Financial Review
Results Summary

increase sales in the field of cutting-edge packaging.

In FY2011 Shibaura Mechatronics recorded net sales of 39,360

existing customers, but we managed to expand our

million yen (a year-on-year fall of 14.9%), an operating loss ofcustomer base by winning more orders from new customers

370 million yen (against operating income of 744 million yen

for mass production equipment that is compatible with new

in the previous fiscal year), an ordinary loss of 133 million yen

production methods.

In solar cells, capital investment has been sluggish among(against ordinary income of 804 million yen in the previous fiscal
year), and a net loss of 394 million yen (against net income of
486 million yen in the previous fiscal year).
Results for each business segment were as follows:

1. Fine Mechatronics Segment
The segment recorded net sales of 23,831 million yen (ayear-on-year increase of 5.9%) and segment income of
1,412 million yen (a year-in-year increase of 131.8%).
Net sales of equipment for front-end LCD panel processes
for small- and medium-sized panels and touch screen
panels increased. However, this rise was not sufficient tocompensate for a decline in demand of equipment for largesized panels that reduced net sales , with the result that werecorded lower net sales than in the previous fiscal year. We
won increased orders in equipment for small and mediumsized panels and touch screen panels, a positive outcomeof initiatives to use wet-process technology and inkjet
technology in new growth areas.
Orders received increased in wafer cleaning equipment
and mask-related equipment for front-end semiconductor
processes, and as a result the segment reported increased
net sales.

2. Mechatronics System Segment
The segment recorded net sales of 11,936 million yen (ayear-on-year fall of 40.8%), and a segment loss of 1,597
million yen (against segment income of 211 million yen in
the previous fiscal year).
In LCD module manufacturing processes, reduced capital
investment in large-sized panels for TVs resulted in greatly
reduced net sales in our mainstay product area, outerlead bonders. In addition, sales for touch panel bonding
equipment declined as other companies entered the market
and competition intensified.
In semiconductor assembly processes we were able to

3. Vending Machines and Systems Segment
The segment recorded net sales of 1,864 million yen (ayear-on-year increase of 4.1%), and a segment loss of 53
million yen (against a segment loss of 245 million yen in theprevious fiscal year).
Sales from cigarette vending machine declined as a resultof sluggish demand and a contraction of the market.
However, we were able to increase sales of ticket vending
machines through efforts to promote sales of touch panel
ticket vending machines and of machines able to process
e-money transactions.
4. Real Estate Leasing Segment
The segment recorded net sales of 1,729 million yen (ayear-on-year fall of 3.8%) and segment income of 456
million yen (a year-on-year fall of 43.9%).

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 2,064 million yen (including
development costs of 437 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, Resarch and Development Division andby the technology divisions in our consolidated subsidiarycompanies. In addition, we are pushing forward efficientresearch and development and the commercialization ofadvanced technologies as a result of strengthening our
relations and collaboration with Toshiba Corporation’s Researchand Development Center and Manufacturing Engineering
Center and Toshiba Corporation Semiconductor & Storage
Products Company.
The research and development expenditures and research
results for each segment are as follows:

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201203

Financial Review

Current assets were evaluated at 38,481 million yen, a

1. Fine Mechatronics Segment
R&D expenditure for the segment totaled 758 million yen.
In LCD panel production equipment we have worked on thedevelopment of wet process equipment, PI inkjet coaters
and cell assembly equipment suitable for high-definition
small and medium-sized panels.
In semiconductor equipment we have worked on thedevelopment of wet cleaning equipment that can be usedon next generation devices and on dry etching equipment
for masks.

reduction of 509 million yen lower compared to the end of theprevious fiscal year. This was mainly due to a decrease in notes
and accounts receivable.
Fixed assets were evaluated at 14,462 million yen, a reductionof 797 million yen compared to the end of the previous fiscal
year. This fall was mainly due to a reduction in leased assets
and depreciation of fixed assets, etc.
Total liabilities at the end of the fiscal year stood at 35,995
million yen, a reduction of 763 million yen compared to the endof the previous fiscal year. This was mainly due to a reductionin the amount of notes and accounts payable.

2. Mechatronics System Segment
R&D expenditure for the segment totaled 708 million yen.
In LCD module equipment we have worked on thedevelopment of COG bonder for small- and medium-sizedpanels, and of vacuum bonding equipment for touch screen
panels. In semiconductor assembly equipment we haveworked on the development of high speed, high precisionbonding equipment. In the field of solar cells we haveworked on the development of sputtering equipment forsolar cells and a CF TAB stringer. In the field of electronic
and vacuum equipment we have been working on thedevelopment of sputtering equipment for semiconductor
backside contacts.

Total net assets at the end of the fiscal year were 16,948 million
yen, a reduction of 544 million yen compared to the end of
the previous fiscal year. This was mainly due to the company
recording a net loss in the period, resulting in a reduction ofretained earnings.

Cash FlowsThe balance of cash and cash equivalents at the end of thecurrent fiscal year was 5,024 million yen, an increase of 1,671
million yen compared to the end of the last fiscal year.
Cash flow from operating activities increased by 1,533 million
yen during the fiscal year (against a fall of 2,764 million in theprevious fiscal year). This was mainly due to an increase in

3. Vending Machine and Systems Segment
R&D expenditure for the segment totaled 159 million yen.
In the field of vending machines we have carried out
development work on touch screen panels that enable
vending machines to function in four different languages,
vending machines compatible with multiple types of
e-money systems, touch-screen-panel type vending
machines for the entry ticket market, and identification units
that can recognize high denomination bills inserted into
vending machines.

Financial Condition
Total assets at the end of the fiscal year were 52,943 million
yen, a reduction of 1,307 yen compared to the end of theprevious fiscal year.

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

cash resulting from a decrease in trade receivables.
Cash flow from investment activities fell by 178 million yen
during the fiscal year (against a fall of 458 million in the previous
fiscal year). This was mainly due to a decrease in cash due tothe acquisition of tangible fixed assets.
Cash flow from financing activities increased by 392 million
yen during the fiscal year (against an increase of 485 million in
the previous fiscal year). This was mainly due to an increase infunds due to an increase in short-term borrowing.

Financial Review

Sales by Segment

Overseas Sales by Region(¥Billions)

66.4

R&D Expenditures(¥Billions)

41.1

15.6

39.4

1.5
2.9

20.7
46.2

(¥Billions)

3.2

23.8

22.8
49.0

Facilities Expenditures(¥Billions)

1.2
2.2

15.0

2.1

2.1
0.8

0.7

'08

'09

'10

'11

'12

'08

'09

'10

'11

'12

'08

'09

'10

'11

1.1

'12

'08

'09

'10

'11

'12

※Major countries or regions includedin each geographical area :Fine mechatronics
Mechatronics systems
Vending machines & systems
Real estate leasing

Northeastern Asia-Taiwan,
Korea, China
Other regions-USA etc.

ROA

ROE

Free Cash Flows

D/ E Ratio

(%)

(%)

(%)

77.0

2.1
1.5

70.0

69.9

-0.2

4.4

75.1

2.8

1.7

(¥Billions)

1.4

1.3
-2.3

44.7

-9.8
-3.0

-3.0

-3.2
-25.4

'08

'09

'10

'11

'12

'08

'09

-4.7
'10

'11

'12

'08

'09

'10

'11

'12

'08

'09

'10

'11

'12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201205

FINANCIAL SECTION
ANNUAL REPORT 2012 Year ended March 31, 201206

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

Financial Section

Contents
Consolidated Balance Sheet・ ・・・・・・・・・・・・ 08
Consolidated Statement of Operations・ ・・・・・・・・・ 10
Consolidated Statement of Comprehensive Income・ ・・・・・ 11
Consolidated Statement of Changes in Net Assets・・・・・・・ 12
Consolidated Statement of Cash Flows・ ・・・・・・・・・ 13
Notes to Consolidated Financial Statements・ ・・・・・・・ 14
Other Information・ ・・・・・・・・・・・・・・・ 44
Independent Auditor's Report ・・・・・・・・・・・・・ 47

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201207

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2012
2011
(Millions of yen)
AssetsCurrent assets:
Cash and bank deposits (Notes 10 and 13)
Short-term investments
Notes and accounts receivable, trade (Note 13)
Allowance for doubtful accounts
Inventories (Note 5)
Deferred tax assets (Note 8)
Accounts receivable, other
Other current assets
Total current assets¥ 5,02443
24,576
(72)
6,864
978
793
275
38,481¥ 3,353
38
26,940
(61)
6,680
1,071
715
254
38,990$ 61,132522
299,018(873)
83,507
11,8979,644
3,347
468,194

Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Lease assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11928,225
2,090
1,075
586
32,095(19,425)
12,670119
28,822
1,343
1,751
518
32,553(19,143)
13,4101,452
343,408
25,42813,083
7,140
390,511(236,348)
154,163

199
157
1,438
(2)
1,792

203
181
1,468
(2)
1,850

2,423
1,902
17,498(19)
21,804¥ 52,943¥ 54,250$ 644,161

Investments and other assets:
Investments in securities (Notes 4 and 13)
Deferred tax assets (Note 8)
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

08

March 31,
2012
(Thousands of
U.S. dollars)(Note 1)SHIBAURA MECHATRONICS CORPORATION
Annual Report 20123

Financial Section

Liabilities and net assets
Current liabilities:
Short-term bank loans (Notes 6 and 13)
Current portion of long-term debt (Notes 6 and 13)
Notes and accounts payable, trade (Note 13)
Provision for contract losses
Current portion of lease obligations
Advances received
Accrued expenses
Accrued income taxes (Note 8)
Provision for directors' bonuses
Asset retirement obligations
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6 and 13)
Provision for retirement benefits (Note 9)
Lease obligations
Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term lease deposits (Note 13)
Total long-term liabilities
Total liabilities

March 31,2012
2011
(Millions of yen)March 31,
2012
(Thousands of
U.S. dollars)(Note 1)

¥ 9,775
500
9,932
138
189
753
2,748
182
－
11
616
24,844¥ 7,705
3,200
11,993
120
381
435
2,627
201
35
11
393
27,101$ 118,935
6,084
120,837
1,677
2,304
9,166
33,434
2,213
－
135
7,494
302,279

2,000
5,365
265
22
7
437
32
3,023
11,15135,995

500
5,211
440
22
23
407
32
3,022
9,657
36,75824,33465,276
3,224
265
90
5,316
395
36,777
135,677
437,956

6,762
9,995
1,933
(1,720)16,970

6,762
9,995
2,426
(1,719)17,46482,267
121,613
23,520(20,929)
206,471

25
(47)
(22)
－
16,948¥ 52,943

30
(2)
28
－
17,492¥ 54,250

303
(569)
(266)
－
206,205$ 644,161

Contingent liabilities (Note 11)
Net assets:
Shareholders’ equity:
Common stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2012
and 2011
Additional paid-in capital
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
Total valuation and translation adjustments
Minority interest in consolidated subsidiaries
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 201209

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations

Years ended March 31,
2012
2011
(Millions of yen)

Net sales
Cost of sales (Notes 7 and 9)
Gross profit

Year ended
March 31,
2012
(Thousands of
U.S. dollars)(Note 1)

¥ 39,360
30,9948,366¥ 46,246
35,895
10,351$ 478,883
377,096
101,787

8,736

9,607

106,293

(370)

744

(4,506)

17
(195)
199
－
(10)
(8)

35
(178)
(11)
40
(51)
(7)

202
(2,370)
2,423
－
(114)
(99)

－
－
－
－

136
35
(17)
(172)

－
－
－
－

－
234

(46)
96

－
2,845

(133)

604

(1,619)(Loss) income before minority interest

147
114
261
(394)

252
(11)
241
363

1,783
1,394
3,177
(4,796)

Minority interest in losses of consolidated
subsidiaries
Net (loss) income

－
(394)

(123)
¥ 486

－
(4,796)

Selling, general and administrative expenses(Notes 7,9 and 17)
Operating (loss) income
Other income (expenses):
Interest and dividend income
Interest expense
Foreign exchange gain (loss), net
Amortization of negative goodwill
Commission fee
Loss on abandonment of noncurrent assets
Gain on reversal of allowance for doubtful
accounts
Gain on negative goodwill
Loss on disaster
Business structure improvement expenses
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Other, net(Loss) income before income taxes andminority interest
Income taxes (Note 8):
Current
Deferred¥$

The accompanying notes are an integral part of the consolidated financial statements.
10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20125

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2012
2011
(Millions of yen)

Net (loss) income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive loss
Comprehensive (loss) income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable tominority interests

Year ended
March 31,
2012
(Thousands of
U.S. dollars)(Note 1)

¥ (394)¥ 363$ (4,796)

(5)
(45)
(50)
¥ (444)

(20)
(41)
(61)
¥ 302

(66)
(546)
(612)
$ (5,408)

(444)

343

(5,408)

－

(41)

－

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

6

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201211

Financial Section

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

Valuation and translation adjustments
Valuationdifference
Foreign
Minorityoncurrencyinterest inavailable-fortranslation consolidated-sale
adjustments subsidiaries
securities

Total

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capitalRetainedearnings

51,926,194¥ 6,762¥ 10,738(Millions of yen)
¥ 1,197¥ (1,719)

39

¥ 42

Net income

–

–

–

486

–

–

–

–

486

Net change during the year

–

–

–

–

–

(20)

(41)

(42)

(103)
(0)

Balance as of March 31, 2010

Treasury
stock

¥ 50

¥

¥ 17,109

Net decrease in treasury stock

–

–

–

–

(0)

–

–

–

Reversal of other capital surplus

–

–

(743)

743

–

–

–

–

–

Balance as of March 31, 2011

51,926,194

6,762

9,995

2,426

(1,719)

30

(2)

–

17,492Net loss

–

–

–

(394)

–

–

–

–

(394)

Net change during the year

–

–

–

–

–

(5)

(45)

–

(50)

Net decrease in treasury stock

–

–

–

–

(1)

–

–

–

(1)

Cash dividends

–

–

–

(99)

–

–

–

–

(99)

51,926,194¥ 6,762

9,995¥ 1,933¥ (1,720)¥ 25

Balance as of March 31, 2012

¥

¥

(47)

¥

–

¥ 16,948

$

(23)

$ –

$ 212,824(Thousands of U.S. dollars) (Note 1)
Balance as of March 31, 2011

$ 82,267$ 121,613$ 29,518$ (20,920)$ 369

Net loss––(4,796)

–

–

–

–

(4,796)

Net change during the year

–

–

–

–

(66)

(546)

–

(612)

Net decrease in treasury stock

–

–

–

(9)

–

–

(9)

Cash dividends––(1,202)

–

–

–

–

(1,202)$ 82,267$ 121,613$ 23,520$ (20,929)

303$ (569)$ –$ 206,205

Balance as of March 31, 2012$–

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

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20127

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2012
2011
(Millions of yen)

Operating activities:(Loss) income before income taxes and minority interest
Depreciation and amortization
Amortization of negative goodwill
Amortization of goodwill
Allowance for doubtful accounts
Increase provision for retirement benefits
Interest and dividend income
Interest expense
Loss on disposal of property, plant and equipment
Gain on sale of land
Foreign exchange gain, net
Decrease (increase) in advances received
Decrease (increase) in notes and accounts receivable, trade
Increase in inventories(Increase) decrease in notes and accounts payable, trade
Loss on adjustment for changes of accounting standard for asset
retirement obligations(Increase) decrease in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Year ended
March 31,
2012
(Thousands of
U.S. dollars)(Note 1)

¥ (133)
1,503
–
20
12
210
(17)
195
1
(44)
36
321
2,339
(801)
(1,646)

¥ 604
1,765
(40)
–
(185)
168
(35)
178
5
8
19
(369)
(4,865)(13)
1,301$ (1,619)
18,293
–
243
144
2,559
(202)
2,370
15
(531)
439
3,905
28,456(9,751)(20,033)

–
(59)
(131)
1,806
16
(195)
(94)
1,533

46
9
(1,097)(2,501)
35
(179)
(119)
(2,764)–(720)(1,588)21,980200(2,375)(1,149)18,656

Investment activities:
Payments for time deposits
Proceeds from time deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of software
Other, net
Net cash used in financing activities

(7)
–
(268)
364
(109)
(158)
（178）

(10)
19
(123)
94
(364)
(74)
（458）

(81)
–
(3,259)4,427(1,324)(1,924)(2,161)

Financing activities:
Increase in short-term bank loans, net
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from stock issuance to minority shareholders
Purchases of treasury stock
Cash dividends paid
Net cash provided by financing activities

2,068
(376)
2,000
(3,200)
–
(1)
(99)
392

977
(605)
–
–
113
(0)
–
485

25,161(4,576)24,334(38,934)–(9)(1,202)
4,774

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

(76)
1,671
3,353
¥ 5,024(27)(2,764)
6,117¥ 3,353(932)
20,33740,795$ 61,132

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

8

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201213

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2012
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, 2012 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 ¥ 82.19 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2012. 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.

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20129

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
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 on
acquisition, 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 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 period between the year end of the subsidiaries and the year end of the Company.
(2) Foreign currency translation
The revenue and expense accounts of the overseas consolidated subsidiaries aretranslated into yen at the rates of exchange in effect at the average exchange rateduring the year. The balance sheet accounts, except for the components ofshareholders’ equity, are also translated into yen at the rate of exchange in effect at thebalance sheet date. The components of shareholders’ equity are translated at their
historical exchange rates. Differences arising from translations are presented as“Foreign currency translation adjustments,” a component of net assets in theaccompanying consolidated financial statements.
Foreign currency monetary assets and liabilities are translated into Japanese yen at theexchange rates in effect at each balance sheet date and the resulting translation gains orlosses 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 gain or loss, 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.
SHIBAURA MECHATRONICS CORPORATION
Annual Report 20121015

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(5) Derivatives
All derivatives are carried at fair value.
(6) Inventories
Finished goods and raw materials

Semi-finished goods and work in process— moving average method (in cases
where the profitability has declined,
the book value is reduced
accordingly)— individual cost method (in cases
where the profitability has declined,
the book value is reduced
accordingly)(7) Depreciation and amortization (except for lease asset)
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 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.
The Company amortizes goodwill over an estimated useful life of 5 years by thestraight-line method.

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201211

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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 their historical experience with write-offs, plus an estimate ofspecific probable 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 projected amount incurred.
(10) Provision for contract losses
Provision for contract losses is provided at an amount considered to cover theestimated possible losses involved in orders for which loss occurrence is highly
anticipated where the loss amount 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 pension fund assets. Actuarial gain or loss isamortized effective the year subsequent to the year in which they arise by thestraight-line method over a period of 10 years, which is shorter than the averageremaining years of service of the employees.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20121217

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(12) Provision for directors’ retirement benefits
Certain directors, statutory auditors and corporate officers of the Company and certain
consolidated subsidiaries are entitled to lump-sum payments under their respective
unfunded retirement benefit plans. Provision for retirement allowances for theseofficers has been made at the estimated amounts which would be paid if all directors,
statutory auditors 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 requires
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) Lease assets
The depreciation of leased assets under finance lease is calculated using thestraight-line method over the lease term with residual value of zero.
(16) Hedging 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 financial instruments to hedge interest rate fluctuation risk exposed
to long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201213

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(17) Research and development costs
Research and development costs 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) Adoption of consolidated tax accounting system
The Company and some of its consolidated subsidiaries have adopted the consolidated
taxation system.
3.

Additional Information

Adoption of accounting standard for accounting changes and error corrections
The Company has adopted the “Accounting Standard for Accounting Changes and Error
Corrections” (Accounting Standards Board of Japan (ASBJ) Statement No. 24 of December
4, 2009) and the “Guidance on Accounting Standard for Accounting Changes and Error
Corrections” (ASBJ Guidance No. 24 of December 4, 2009), for accounting changes andcorrections of past errors made as of the beginning of the fiscal year under review.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201214

19

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
4.

Investments in securities

At March 31, 2012 and 2011, marketable securities classified as other (available-for-sale)securities are summarized as follows:

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

March 31,2011
2012
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
Sheet
sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

Other securities
whose market
value recorded in
the balance sheet
do not exceed
their acquisition
costs:
Equity securities
Debt securities
Other
Total

March 31,2012
Amountrecorded in
Acquisition the balance
Sheet
costs
Difference(Thousands of U.S. dollars)

¥ 52
–
–
¥ 52

¥ 93
–
–
¥ 93

¥ 41
–
–
¥ 41

¥ 101
–
–
¥ 101

¥ 142
–
–
¥ 142

¥ 41
–
–
¥ 41

$ 634
–
–
$ 634

$ 1,127––$ 1,127

$ 493
–
–
$ 493

58
–
–
¥ 58

53
–
–
¥ 53

(5)
–
–
¥ (5)

9
–
–
¥ 9

8
–
–
¥ 8

(1)
–
–
¥ (1)

713
–
–
$ 713

655
–
–
$ 655

(58)
–
–
$ (58)At March 31, 2012 and 2011, non-marketable securities carried at cost are summarized asfollows:
March 31,2012
2011
(Millions of yen)
Investments in affiliates:
Affiliates
Other

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

¥ 52
1

¥ 52
1

March 31,
2012
(Thousands of
U.S. dollars)
$ 634
7

15

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
5.

Inventories

Inventories at March 31, 2012 and 2011 are summarized as follows:
March 31,2012
2011
(Millions of yen)Finished products
Raw materials
Work in process
Total
6.

¥ 2,295
192
4,377¥ 6,864¥ 2,138315
4,227¥ 6,680

March 31,
2012
(Thousands of
U.S. dollars)$ 27,918
2,337
53,252$ 83,507

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, 2012 and 2011 were 1.2%, respectively.
Long-term debt at March 31, 2012 and 2011 are summarized as follows:
March 31,2011
2012
(Millions of yen)Unsecured:

March 31,
2012
(Thousands of
U.S. dollars)

1.24% to 1.26% loans from banks due
2011 to 2015
Lease obligations

2,500
454

3,700
821

30,417
5,529

Total
Less current portionLong-term debt and lease obligations, net

2,954
689
¥ 2,265

4,521
3,581
¥ 940

35,946
8,387$ 27,559

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201216

21

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
6. Short-Term Bank Loans and Long-Term Debt (continued)
Aggregate annual maturities of long-term debt and lease obligations at March 31, 2012 aresummarized as follows:
March 31, 2012
(Millions of(Thousands ofyen)
U.S. dollars)
2013
2014
2015
2016 and thereafter
Total

¥

689
100
2,056
109
¥ 2,954

$

8,388
1,211
25,021
1,326$ 35,946

The Company entered into one-year contracts for commitment lines of credit with six banks
in the aggregated amount of ¥5,000 million ($60,835 thousand) for efficient financial
arrangements for operating funds. These contracts have been expired on March 30, 2012.
However, the loans under these commitment lives of credit are due on April 27, 2012.
The Company has newly entered into one-year and three-month contracts for commitment
lines of credit with these six banks in the aggregating amount of ¥6,800 million ($82,735
thousand) effective on April 20, 2012.
7.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,
2012 and 2011 are as follows:Year ended March 31,
2012
2011
(Millions of yen)
¥ 2,064

22

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

¥ 2,110

Year ended
March 31,
2012
(Thousands of
U.S. dollars)$ 25,114

17

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
8. Income Taxes
The major components of deferred tax assets and liabilities as of March 31, 2012 and 2011
are summarized as follows:
March 31,2012
2011
(Millions of yen)
Deferred tax assets:
Employees’ retirement benefits
Accrued employees’ bonuses
Provision for contract losses
Accrual for periodic repairsEnterprise tax payable
Tax loss carried forward
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

March 31,
2012
(Thousands of
U.S. dollars)¥ 2,029
519
53
127
24
2,442
720
5,914
(4,709)1,205¥ 2,113
580
49
187
26
2,940
1,071
6,966
(5,650)1,316$ 24,690
6,315
638
1,544
293
29,705
8,762
71,947(57,295)
14,652

(12)

(11)

(142)

(58)
(70)
¥ 1,135(53)(64)¥ 1,252

(711)
(853)
$ 13,799

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

The reconciliation between the effective tax rate and the statutory tax rate for the year
ended March 31, 2011 was omitted since the difference between the statutory tax rate andthe effective tax rate of less than 5%.
The reconciliation between the effective tax rate and the statutory tax rate for the year
ended March 31, 2012 was omitted since loss before income taxes and minority interests
was recorded.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201218

23

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
8. Income Taxes (continued)
In response to the issuance of the “Act regulating revision of part of the Income Tax Act
and other related laws/regulations on December 2, 2011, in order to establish a taxation
system that reflects structural changes in the economy and society” (2011, Law No. 114)
and the “Act regarding securing funds necessary for implementing programs promoting
recovery from the Great East Japan Earthquake,” (2011, Law No.117), the Company haschanged the statutory tax rate used for calculating the deferred tax assets and deferred tax
liabilities as of March 31, 2012 from 40.6% to 38.0% for the three fiscal years beginning on
April 1, 2012, and to 35.6% for the fiscal years beginning on and after April 1, 2015.
The effect of changes in tax rates is immaterial.
Income taxes of the overseas subsidiaries are based on the tax rates applicable in theircountries of incorporation.
9. Retirement Benefits
The Companies 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 the plans.
The following is a summary of the plans:
March 31,2012
2011
(Millions of yen)
Projected benefit obligation
Fair value of plan assets
Funded status
Unrecognized actuarial loss
Unrecognized prior service cost (Reduced
obligation)
Prepaid pension cost
Allowance for retirement benefits

March 31,
2012
(Thousands of
U.S. dollars)¥ (9,667)
3,255(6,412)
1,478¥ (9,509)
3,223(6,286)
1,395$ (117,620)
39,600(78,020)
17,984(167)(264)¥ (5,365)–(320)¥ (5,211)(2,024)(3,216)$ (65,276)

The consolidated subsidiaries have adopted a simplified method, as permitted, to calculate
the projected benefit obligation.

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201219

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
9. Retirement Benefits (continued)
Components of net periodic pension cost for the years ended March 31, 2012 and 2011 aresummarized as follows:Year ended March 31,
2011
2012
(Millions of yen)
Service cost
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of prior service cost
Amortization of actuarial loss
Extra retirement payments
Net periodic pension cost

¥

517
181
(113)
(3)
341
–
¥ 923

Year ended
March 31,
2012
(Thousands of
U.S. dollars)

¥

517
184
(114)
–
411
127
¥ 1,125$ 6,296
2,197(1,372)
(34)
4,148
–
$ 11,235

The provision for retirement benefits was determined using the simplified method by the
consolidated subsidiaries and has been included in service cost.
Assumptions used in the actuarial calculation for the years ended March 31, 2012 and 2011
are summarized as follows:
2012
Actuarial cost method
Discount rate
Expected rate of return on plan assets
Gain on plan amendment (Prior service cost)
Amortization period for actuarial loss

March 31,2011

Projected unit credit method
2.0 % per annum 2.0 % per annum
3.5 % per annum 3.5 % per annum
10 years (within the employees’
average remaining years of service)
10 years (within the employees’
average remaining years of service)

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201220

25

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
10. Pledged Assets
Assets pledged as collateral for loans payable at foreign subsidiaries as of March 31, 2012
are summarized as follows:

Bank deposits
Total

March 31, 2012
(Millions of(Thousands ofyen)
U.S. dollars)
$ 33
¥3
$ 33
¥3

11. Contingent Liabilities
The Company had the following contingent liability as of March 31, 2012:
March 31, 2012
(Millions of(Thousands ofyen)
U.S. dollars)
Guarantee for housing loans of employees

¥ 23

$ 283

12. 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 department which has 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, 2012 and 2011, the fair value information for derivatives was not presented
since all derivatives were accounted for using the special hedge accounting and accordingly
their fair value recorded as part of fair value of the hedged bowings.

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201221

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
12. Derivatives and Hedging Activities (continued)
Ⅰ. Derivative transactions which do not qualify for hedge accounting
There is no derivative transactions which do not qualify forehead accounting for the years
ended March 31, 2012 and 2011.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
Year ended March 31, 2012
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

¥ 2,000¥ 2,000¥－

Year ended March 31, 2011
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

¥ 1,500¥－¥－

Year ended March 31, 2012
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

$ 24,334$ 24,334$－

Notes:
The current price by the exception handling of interest swap is the current price of thelong-term debt.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201222

27

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
13. Financial Instruments① Matters relating to financial instruments(1)

Policy of Financial Instruments
The Company and its consolidated subsidiaries procure capital investments suchprimarily through bank loans. Derivatives are used, not for speculative nor trading
purposes, but to manage risk exposure arising from business operations.

(2)

Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to customer’s
credit risk. Receivables from each customer are constantly checked to reduce risk of
costumer’s default.
Investment securities are mainly debt or equity securities of customers of theCompany and its consolidated subsidiaries and exposed to the issuer’s credit risk
and market price fluctuation risk.
Trade payables, which are operating payables, are due for payment within a year.
While foreign currency-denominated operating receivables are exposed to exchange
rate fluctuation risk, we evade this risk by, as a general rule, primarily utilizing aforward exchange contract of foreign currency-denominated operating payables.
Short-term bank loans are used to primarily to procure business transaction’s funds,
while long-term debt is used to procure funds required for long-term stability.
Although some items with variable interest rates are exposed to interest rate
fluctuation risk, we used derivative transactions (interest rate swaps) in part to fix
interest payments. Derivatives which are shown in the below table do not represent
the amounts exchanged by the parties and do not measure the Group’s exposure tocredit or market risk. To control credit risk related to derivatives, based on aninternal guide line, the Group has derivatives with counterparties which has highcredit grade. In addition, the Treasury Division of the Group regularly monitors risk
and profit and loss, and reports them to it’s Executive Committee.
Operating payables and bank loans are exposed to the liquidity risk.
Each of the Group performs cash management using monthly cash flow
information.

(3)

Supplements 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 usedinstead. The results of valuation may differ among assumptions because the rational
techniques include variable factors. The contract or notional amounts of derivatives
which are shown in the below table do not represent the amounts exchanged by theparties and do not measure the Companies’ exposure to credit or market risk.

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201223

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
13. Financial Instruments (continued)② Matters concerning the market value of financial instruments, etc.
Amounts on the consolidated balance sheet as of March 31, 2012, fair value and varianceare as follows.
March 31, 2012
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade(3) Investment securities:
Other securities¥¥ 5,067¥ 5,067

24,576

24,576

－

－

147

147

－

(4) Notes and accounts payable, trade(9,932)(9,932)－(5) Short-term bank loans(9,775)(9,775)－(6) Current portion of long-term debt

(500)

(500)

－

(7) Long-term debt

(2,000)(1,982)18(8) Other long-term liabilities(3,023)(2,136)887

March 31, 2011
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits¥¥ 3,391¥ 3,391

26,94026,940

－

151

151

－

(4) Notes and accounts payable, trade(11,993)(11,993)－(5) Short-term bank loans(7,705)(7,705)－(6) Current portion of long-term debt

(3,200)(3,200)－(2) Notes and accounts receivable, trade(3) Investment securities－

Other securities(7) Long-term debt
(8) Other long-term liabilities

(500)

(497)

(3)

(3,022)(2,012)(1,010)SHIBAURA MECHATRONICS CORPORATION
Annual Report 201224

29

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
13. Financial Instruments (continued)
March 31, 2012
Carrying Value

Fair Value

Difference(Thousands of U.S. dollars)(1) Cash and bank deposits(2) Notes and accounts receivable, trade$61,654$61,654$－

299,018

299,018

－

1,789

1,789

－

(4) Notes and accounts payable, trade(120,837)(120,837)－(5) Short-term bank loans(118,935)(118,935)－(3) Investment securities
Other securities(6) Current portion of long-term debt

(6,084)(6,084)－(7) Long-term debt

(24,334)(24,113)

221(8) Other long-term liabilities(36,777)(25,985)

10,792(*)A liability is persecuted 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
As these items are settled in a short period of time and the fair value is almost
equal to the book value, their book value is presented.
(3) Investment securities - Other securities
The fair value of equity securities represents the price on the stock exchange.
(4) Notes and accounts payable, trade, (5) Short-term bank loans
As these items are settled in a short period of time and the fair value is almost
equal to the book value, their book value is presented.

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201225

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
13.

Financial Instruments (continued)(6) Long-term debt
As for fair value of long-term debt, future cash flows from payments for principal
and interest are discounted at the interest rate applicable to similar new loan tothe present value. As for long-term debt with floating interest rate subject to thespecial hedge accounting with designated interest rate swap, future cash flows
from payments for principal and interest, combined with cash flows from thedesignated interest rate swap, are discounted at the interest rate applicable tosimilar new loan to the present value.
(7) Other long-term liabilities
Other long-term liabilities consist of lease deposits. The fair value of otherlong-term liabilities is discounted at the risk-free interest rates of future cash
flows to the present value.
(8) Derivatives transaction
See Note 11 for the detail of derivative transactions.

b) As non-marketable equity securities of ¥52 million ($634 thousand) do not have aquoted market price and the future cash flow cannot be estimated, we consider it
extremely difficult to determine their fair value. Hence, the items are not included in“(3) Investment securities - Other securities.”c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥5,044 million ($61,373 thousand), Notes and accounts
receivable, trade of ¥24,576 million ($299,018 thousand) are due within one year
subsequent to March 31, 2012 and Cash and bank deposits of ¥3,371 million, Notes
and accounts receivable, trade of ¥26,940 million are due within one year subsequent
to March 31, 2011.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201226

31

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
14. Investment in Rental Property
The Company owns an office building (including land) for rent for third parties in
Yokohama city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Carrying AmountMarch 31,2011
Rental property¥ 7,030

March 31,
Decrease
2012(Millions of yen)
¥ 167
¥ 6,863

At March 31,
2012 Fair
Value¥ 7,347

Carrying AmountMarch 31,2010
Rental property¥ 7,376

March 31,
Decrease
2011(Millions of yen)
¥ 346
¥ 7,030

At March 31,
2011 Fair
Value¥ 7,649

Carrying AmountMarch 31,2011
Rental property$ 85,530

At March 31,
March 31,2012 Fair
Decrease
2012
Value(Thousands of U.S. dollars)$ 2,029$ 83,501$ 89,390

Notes:

32a)

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, 2012 and 2011 is internally determined by the Company
based on the real-estate appraisal standard.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201227

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
14. Investment in Rental Property (continued)
Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2012
Rental income Rental costs Difference(Millions of yen)
¥ 1,729¥ 1,272¥ 456

Rental property

Year ended March 31, 2011
Rental income Rental costs Difference(Millions of yen)
¥ 1,797
¥ 983
¥ 814

Rental property

Year ended March 31, 2012
Rental income Rental costs Difference(Thousands of U.S. dollars)$ 21,032$ 15,479$ 5,553

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201228

33

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information① Segment Information(1) Overview of reporting segments
The Company’s reporting segments are determined as the Group's units for which
separate financial information is also obtainable, and the Board of Directors regularly
monitor in order to decide 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 about its
responsible products or services to deal with 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), Media device
manufacturing equipment (sputtering equipment, vacuum bonding equipment),Industrial vacuum evaporation equipment, Laser equipment, Microwave equipment,
Rechargeable battery manufacturing equipment, Precision parts manufacturing
equipment, Other automation equipment, Vacuum pumps, and other items.
Vending machines & systems :Vending machines, ticket vending machines, and others.
Real estate leasing :Real estate leasing and management, and other businesses.

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201229

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information (continued)(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.
(3) Information on sales, income or loss, assets and other items by reporting segment
Information for the fiscal years ended March 31, 2012 and 2011 is summarized asfollows:
Year ended March 31, 2012
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 23,831
16¥ 11,936203¥ 1,8641¥ 1,729–¥ 39,360
220

Total sales
Segment income (loss)

23,847
1,412

12,139(1,597)

1,865
(53)

1,729
456

39,580218

Segment assets

24,68615,307

1,568

7,240

48,801

646
20
12
8

417
–
0
7

61
–
0
2

379
–
–
–

1,503
20
12
17

488

550

1

81

1,120

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201230

35

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information (continued)
Year ended March 31, 2011
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 22,514
17¥ 20,145
193¥ 1,790–¥ 1,797–¥ 46,246
210

Total sales
Segment income (loss)

22,531
609

20,338
211

1,790
(245)

1,797
814

46,456
1,389

Segment assets

21,862

20,929

1,532

7,385

51,708

906
12
40
6
6

420
–
–
0
9

78
–
–
0
3

361
–
–
–
–

1,765
12
40
6
18

530

567

23

34

1,154

Real estateleasing

Total

Other
Depreciation
Depreciation of goodwill
Amortization of negative goodwill
Interest income
Interest expense
Increase in tangible and intangible
fixed assets

Year ended March 31, 2012
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 289,952
200$ 145,219
2,473$ 22,680
5$ 21,032–$ 478,883
2,678

Total sales
Segment income (loss)

290,152
17,176

147,692(19,434)

22,685(645)

21,032
5,553

481,561
2,650

Segment assets

300,350

186,242

19,072

88,087593,751

7,857
243
147
96

5,074
–
1
89

742
–
1
18

4,620
–
–
–

18,293
243
149
203

5,938

6,696

12

984

13,630

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

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201231

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information (continued)(4) Reconciliations between the reporting segment total and the amounts presented in the
consolidated financial statements.
a) Segment income
Year ended March 31,
2012
2011
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2012
(Thousands of
U.S. dollars)

Reporting segments¥ 218¥ 1,389$ 2,651

Unallocated amounts

(438)

(499)

(5,323)

87

(86)

1,053

804

$ (1,619)

Other
Consolidated¥ (133)¥

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.
b) Segment assets
Year ended March 31,
2012
2011
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2012
(Thousands of
U.S. dollars)

Reporting segments¥ 48,800¥ 51,708$ 593,752

Unallocated amounts

4,143

2,542

50,409¥ 52,943¥ 54,250$ 644,161

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.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201232

37

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information (continued)c) OtherDepreciation
Depreciation of goodwill
Interest income
Interest expense
Increase in tangible andintangible fixed assets

Year ended March 31, 2012
Reportingsegments

Adjustment
amount¥ 1,50320
12
17(Millions of yen)
¥
–
–
0
178

1,120

–

Consolidated¥ 1,503
20
13
195
1,120

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 18,293$–$ 18,293
243
–
243
149
6
155
203
2,166
2,370
13,630–13,630Year ended March 31, 2011

Depreciation
Depreciation of goodwill
Amortization of negative
goodwillInterest income
Interest expense
Increase in tangible andintangible fixed assets

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

Reportingsegments

Adjustment
amountConsolidated¥ 1,765
12(Millions of yen)¥––

¥ 1,765
12

40

–

40

6
18

1
160

7
178

1,154

–

1,154

33

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. 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, 2012
Japan

Northeastern Asia

Other

Total

¥ 1,770¥ 39,360(Millions of yen)
¥ 24,329¥ 13,261

Japan

Northeastern Asia

Year ended March 31, 2011
Other

Total

¥ 1,978¥ 46,246(Millions of yen)
¥ 22,468¥ 21,800

Japan

Northeastern Asia

Year ended March 31, 2012
Other

Total

(Thousands of U.S. dollars)$ 296,002$ 161,348$ 21,533$ 478,883

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

Year ended March 31, 2012

Japan

Northeastern Asia

Total

(Millions of yen)
¥ 12,664¥

6¥ 12,670

Year ended March 31, 2011
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 13,075¥ 335¥ 13,410

Year ended March 31, 2012
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 154,080$ 83$ 154,163

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201239

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
15. Segment Information (continued)c) Information by main customer
There are no material single unaffiliated customers greater than 10% of consolidated net
sales.
③ Impairment losses on fixed assets by reporting segment
No applicable items④ Depreciation and remaining carrying value of goodwill by reporting segment
Year ended March 31, 2012
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total

¥ –

¥ 30

Real estateleasing

Total

¥ –

¥ 50

Real estateleasing

Total

$ –

$ 365

(Millions of yen)
Balance as of March 31, 2012

¥ 30

¥ –

¥ –

Year ended March 31, 2011
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Millions of yen)

Balance as of March 31, 2011

¥ 50

¥ –

¥ –

Year ended March 31, 2012
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Thousands of U.S. dollars)
Balance as of March 31, 2012

$ 365

$ –

$ –

⑤ Gain on negative goodwill by reporting segment
Gain on negative goodwill by reporting segment at March 31, 2012 and 2011 was not
significant.

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201235

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
16. Non-cash Transactions
Lease assets and lease obligations recorded relating to lease transactions were ¥20 million($243 thousand) and ¥20 million ($243 thousand), respectively for the year ended March 31,
2012 and ¥35 million and ¥35 million, respectively for the year ended March 31, 2011.
17. Selling, General and Administrative Expenses
For the years ended March 31, 2012 and 2011, major selling, general and administrative
expenses are summarized as follows:
March 31,2012
2011
(Millions of yen)

Packing and delivery expenses
Sales commission
Advertising expenses
Employees' salaries and allowances
Provision of allowance for doubtful
accounts
Provision for retirement benefits
Provision for directors' retirement
benefits
Depreciation
Rent expenses
Development and research expenses

¥

183
251
17
4,758

¥

March 31,
2012
(Thousands of
U.S. dollars)

161
279
17
5,324

$ 2,226
3,058
205
57,885

13
381

8
484

163
4,634

3
741
150
2,064

6
847
196
2,110

42
9,015
1,821
25,112

18. Related Party Transactions
Toshiba Corporation held 39.1 % of the Company’s voting rights as of March 31, 2012.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation andreceived rent revenue from Toshiba Corporation. The aggregate amounts of thesetransactions were ¥3,048 million ($37,087 thousand) and ¥4,086 million for the years
ended March 31, 2012 and 2011, respectively.
The Company purchased raw materials from Toshiba Corporation totaling ¥325 million($3,955 thousand) and ¥330 million for the year ended March 31, 2012 and 2011,
respectively.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201236

41

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
18. Related Party Transactions (continued)
Amounts due from and to Toshiba Corporation at March 31, 2012 and 2011 were as
follows:
March 31,2012
2011
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation

¥ 650
3,222

¥ 1,0813,230

March 31,
2012
(Thousands of
U.S. dollars)$ 7,910
39,19819. 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. A net asset per share is computed based on theweighted-average number of shares of common stock outstanding at each balance sheet
date.
Year ended March 31,
2012
2011
(Yen)
Net income (loss):– Basic
Net assets¥(7.98)
342.99¥9.83
353.98Year ended
March 31,2012
(U.S. dollars)$ (0.10)
4.17

Notes:The information regarding diluted net income per share for the years ended 2012 and 2011
is omitted because of no stock with dilutive effect.

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201237

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements (continued)
20. Subsequent events
The Company’s Board of Director’s meeting held on April 26, 2012 resolved to implement
a voluntary early retirement program for employees as fallows:(1) Reason for the implementation of voluntary early retirement
The Company has achieved good results in intense global competition by businessrestructuring and personal productivity improvement after the recovery from Lehman
shock.
However, appreciation of yen against foreign currencies in the recent years and the future
global economy still remains unclear. In addition, demands of liquid crystal panel for
television are expected to continue to decline.
Under these circumstances, the Company decided to implement a voluntary early
retirement program for employees as an indispensable business structure in order to reduce
a number of employees to the proper level and further improve its productivity.
(2) Eligible employees
Shibaura Mechatronics Corporation and domestic subsidiaries(3) Number of employees
10% of eligible employees(4) Period of application
First half of the fiscal year ending March 31, 2013
(5) Contents of scheme
Currently, the Company cannot make an estimate of impact because the content of the
program is not clear.
(6) Others
Although the contents of the program are to be determined based on discussions withthe labor union. An extra retirement benefit is to be paid in abdication to the regularretirement benefits, determined on the Company’s own convenience basis. In addition,
the Company will support them for seeking new employment.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201238

43

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Balance Sheet
March 31,2012
2011
(Millions of yen)
AssetsCurrent assets:
Cash and bank deposits
Notes and accounts receivable, trade:
Notes
Accounts
Allowance for doubtful accounts
Inventories
Deferred tax assets
Short-term loans receivable from subsidiaries
and affiliates
Other current assets
Total current assets
Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Lease assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net
Investments and other assets:
Investments in securities
Investments in subsidiaries and affiliates
Deferred tax assets
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

March 31,
2012
(Thousands of
U.S. dollars)¥ 2,714¥ 1,479$ 33,023

262
21,308
(523)
5,556
801
1,490

1,794
22,308
(512)
5,146
897
1,300

3,187
259,254(6,360)67,597
9,738
18,1291,525
33,133

1,480
33,892

18,556403,124

69
27,585
1,697
585
587
30,523(18,488)
12,03568
27,579
943
1,151
518
30,259(17,923)
12,336837
335,632
20,6467,117
7,140
371,372(224,944)
146,428

124
526
109
717
571
(0)
2,047

136
683
131
688
620
(0)
2,258

1,505
6,405
8,730
1,327
6,948
(3)
24,912¥ 47,215¥ 48,486$ 574,464
39

44

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012

Financial Section

March 31,2012
2011
(Millions of yen)
Liabilities and net assets
Current liabilities:
Short-term bank loans
Current portion of long-term debt
Notes and accounts payable:
Notes
Accounts
Advances received
Lease obligations
Provision for directors' bonuses
Provision for contract losses
Accrued expenses
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Lease obligations
Long-term accounts payable-other
Provision for retirement benefits
Reserve for repair and maintenance
Other long-term liabilities
Asset retirement obligations
Total long-term liabilities
Total liabilities
Net assets:
Shareholders’ equity:
Common stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31,
2012 and 2011
Additional paid-in capital
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Net unrealized holding gain on othersecurities
Total net assets
Total liabilities and net assets

March 31,
2012
(Thousands of
U.S. dollars)¥ 9,500500¥ 7,300
3,200$ 115,586
6,083

2,226
5,524
545
124
－
138
2,500
45
320
21,422

2,209
7,889
334
290
35
120
2,332
47
137
23,89327,07967,211
6,634
1,512
－
1,677
30,420548
3,896
260,646

2,000
78
22
4,870
437
3,023
20
10,45031,872

500
206
22
4,729
407
3,023
20
8,907
32,80024,334953
265
59,251
5,316
36,777245
127,141
387,787

6,761
9,995
292
(1,720)15,328

6,762
9,995
622
(1,719)15,66082,266
121,613
3,547(20,929)
186,497

15

26

180

15,343¥ 47,215

15,686¥ 48,486

186,677$ 574,464
40
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201245

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Statement of Operations

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Other income (expenses):
Interest and dividend income
Interest expense
Business advisory fee
Commission fee
Loss on valuation of subsidiaries’ stock
Provision of allowance for doubtful accounts
for subsidiaries and affiliates
Loss on disaster
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Other, net(Loss) income before income taxes
Income taxes:
Current
Deferred
Net (loss) income

Year ended March 31,
2012
2011
(Millions of yen)

Year ended
March 31,
2012
(Thousands of
U.S. dollars)¥ 30,197
24,843
5,354¥ 36,696
29,4447,252$ 367,401
302,261
65,1406,579(1,225)

7,369
(117)

80,041(14,901)

678
(178)
279
(9)
(156)
(10)

485
(160)
290
(51)
(252)
(30)

8,246
(2,166)
3,402(113)(1,902)
(125)

–
–

(17)
(8)

–
–

450
(171)

353
493

5,476
(2,083)

(60)
121
61
¥ (232)

28
(156)
(128)
¥ 621

(728)
1,472
744
(2,827)(Yen)
Per share of common stock:
Net loss
Cash dividends applicable to the year46

¥ (4.70)
0.00$(U.S. dollars)¥ 12.60
2.00$ (0.06)
0.00

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201241

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201247

Board of Directors
As of June 21, 2012

Directors

Kenji Minami

Masahiro Abe

Shigeki Fujita

Shunichi Kishimoto

President and Chief Executive

Executive Vice President

Senior Vice President

Senior Vice President

Officer

Executive General Manager ofTechnology & Development Division

Executive General Manager ofFine Mechatronics Division

Executive General Manager of
Mechatronics System Division

Shuichi Shimada

Satoru Hara

Hitoshi Dojima

Yoshitsugu Ogawa

Vice President

Vice President

Vice President

Vice President

Deputy Executive General Manager of
Mechatronics System Division

Deputy Executive General Manager ofTechnology & Development Division

Executive General Manager ofCorporate Management Division
General Manager ofCustomer Relations & Marketing
Division

Deputy Executive General Manager ofFine Mechatronics Division

Haruhiko Washio

Yoshihiro Maeda

Sennosuke Yoshida

Auditor

Auditor

Auditor

Auditors

48

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2012Investor Information
As of March 31, 2012

Date Established

October 12, 1939

Capital6,761Million-Yen

Number of Employees

Consolidated

Common Stock

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

Number of Shareholders

7,728

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited

Independent Auditor

ERNST ＆ YOUNG SHINNIHON 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/: 1,496

1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

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

High (yen)Low (yen)

2012
344
191

2011
508
162

2010
472
244

2009
687
234

2008
824
388

Principal Shareholders

Toshiba Corporation
Japan Trustee Services Bank, Limited (trust accounts)
The Master Trust Bank of Japan, Limited (trust accounts)
Shibaura Mechatronics Employee Accumulation Stock Plan

Number of shares hold

Percentage of total shares outstanding(thousand shares)(%)

18,977

38.4
2.5
1.1
0.9

1,250
537
460

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201249

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/

SPB0314A 00 1209
12019