ANNUAL REPORT 2014
Year ended March 31, 2014

ANNUAL REPORT 2014
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 emerged as a producer of manufacturing equipment for FPDs* and semiconductors. At that time
the company took on its present name, Shibaura Mechatronics Corporation. Guided by our management philosophy of “contributeto the achievement of an affluent life by offering superior technology and services,” we support an evolving social infrastructure by
supplying manufacturing equipment for the production of essential electronic components.
*FPDs : flat panel displays

History
1932
Tokyo Electric Company

1939

1949

1991 1996

Oct.,1998

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

Shibaura Engineering Works Co., Ltd.

(Industrial Mechatronics Business)

Toshiba Automation Co., Ltd.

Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Toshiba Mechatronics Co., Ltd.

Manufacturing equipment for FPDs,
semiconductors and others

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

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

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

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

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

Financial Section・ ・・・・・・・・・・・・・・・・・・・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・ ・・・・・・・・・・・・・・・・・・・52

Investor Information・ ・・・・・・・・・・・・・・・・・・53

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

Financial Highlights
Year ended
March 31,2014

Year ended March 31,
2014

2013

2012

2011

2010

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

(Millions of yen)

Consolidated

Net sales
30,400		 ￥ 39,360		 ￥ 46,246		 ￥ 41,096￥ 35,165		
Orders received		 40,000 		41,300 		34,300
49,700		
42,500Operating income (loss)		
736 		
60 		 (370 )743		
(1,870 )Net income (loss)		
387 		 (1,416 )		 (394 )		 486			 (1,752 )$ 341,672
			 389,000
			
7,151
			
3,761

Depreciation and amortization		
Facilities expenditures		R&D expenses		

1,359		1,195		1,726		

1,424		575		1,805		

1,503		1,120		2,064		

1,765			1,154			2,110			

1,935
847
2,193

			 13,208
			 11,600
			 16,769

Total assets		 47,602		

50,767		

52,943		

54,250			 52,658

			 462,510

Net assets		 15,064		

15,697		

16,948		

17,492			 17,109

			 146,363

(yen)

￥

Net income (loss) per share

Number of employees		

7.83		 ￥ (28.66 )1,210		

(U.S. dollars)￥ (7.98 ) ￥1,285		

1,496		￥ (35.47 )

$

0.08

1,532			1,631

		

1,210

9.83

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥102.92 = U.S.$1.00, as of March 31, 2014.

Net Sales(¥Billions)

Orders Received/Order Backlog(¥Billions)

21.8

1,631

42.5
39.4
30.4

Number of Employees

17.5
49.7

46.2
41.1

(¥Billions)

26.6

22.5
19.1

Operating Income (loss)

41.3

35.2

40.0

0.7

34.3

1,532

1,496

0.7

1,285

1,210

'13

'14

0.1
-0.4

-1.9
'10

'11

'12

'13

'14

'10

'11

'12

'13

'14

'10

'11

'12

'13

'14

'10

'11

'12

Orders received
Order backlog

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201401

To Our Shareholders
Further acceleration of “business restructuring” and “cost structure improvement”
to secure the next step forward in growth and profit expansion
Although there were considerable expectations of theeconomic policy and the continuation of a weak yen, thebusiness environment in fiscal year 2013 remained uncertain,
on concerns about China’s economic slowdown.
Shibaura Mechatronics Group found itself in a businessenvironment where the LCD panel business continued to beaffected by the downturn in the TV market, though we did
see new capital investments in TV panels in China. While themarket for smartphones, tablets and other mobile devices
remained robust, investors appeared cautious when it cameto making investments in the touch panel and in small- to
medium-sized panels industry.

Forecasts for the semiconductor industry indicate continuing
investment in cutting-edge fields, and we will aim to increase
orders in this area through technical innovation.

In the semiconductor industry, investments remained strong in
cutting-edge fields.

Separately from this, in new growth areas, investments for
vacuum application equipment related to heads-up displays
for automobiles have started to take off. We intend to increase
sales in this and other areas through the release of new
products utilizing our core technologies.

In these circumstances, Shibaura Mechatronics Group focusedon enlarging the customer base for semiconductors and LCD
panels, and expanded into new growth fields, such as wafer
wet cleaning equipment and flip chip bonder for 3D package.
By doing so we succeeded in increasing sales.

Although Shibaura Mechatronics Groups continues to facea challenging business environment, we will seek to increase
revenues by accelerating our sales activities in growth areas.
Beyond that, we aim to increase profit by continuing with ourefforts to promote cost restructuring and to cut fixed costs.

As a result of the foregoing efforts, net sales in fiscal year 2013
was 35,165 million yen, and operating income stood at 736
million yen.

Shigeki Fujita
President and Chief Executive Officer

Prospects for our business activities in fiscal year 2014 remainvery unclear. While the weak yen continues and the overallmood on economic policy remains positive, there are several
risk factors that are sources of concern, China’s economic
slowdown among them.
In the LCD panel market, investments in China for TV panels

02

are expected to continue for the time being. On the other hand,in the touch panel and small- to middle-sized panel business,investment is expected to continue in mobile devices, such as
smartphones and tablets, and we will make efforts to win moreorders by launching new products in growth areas that utilize
our core technologies.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Review
Results Summary

vending machines. However, research and development

In FY2013, Shibaura Mechatronics recorded net sales of 35,165

drop in non-operating income.

costs rose, and segment profits decreased as a result of amillion yen (a year-on-year increase of 15.7%), operating incomeof 736 million yen (against operating income of 60 million yen
in the previous fiscal year), ordinary income of 560 million yen(against an ordinary loss of 359 million yen in the previous fiscal
year), and net income of 387 million yen (against a net loss of
1,416 million yen in the previous fiscal year).

4. Real Estate Leasing Segment
The trend in real estate leasing was as expected, and thesegment recorded net sales of 1,964 million yen (a year-onyear fall of 0.9%) and income of 398 million yen (a year-onyear fall of 10.3%).

The results for each business segment were as follows:

1. Fine Mechatronics Segment
The segment recorded net sales of 21,231 million yen (ayear-on-year increase of 14.6%) and income of 1,081 million
yen (a year-on-year fall of 35.8%).
In the LCD panel front-end business, the pace of investment
have been slow in small- and medium-sized panels andtouch panel, but new investments in the television panel
field were made in China, and sales rose above the previous
year.
In the semiconductor front-end process, orders for ourflagship single wafer wet processors increased dramatically,
but since those orders are concentrated in later periods
they had only a limited influence in the current period. As aresult, sales were lower than in the previous year.

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 1,726 million yen (including
development costs of 305 million yen for basic technologies
that could not be appropriated to any specific segment).
R&D is advanced by the development and design departments
in business divisions, the Research and Development
Division, and by the technology divisions in our consolidated
subsidiary companies. In addition, we are pushing forward
efficient research and development and the commercializationof advanced technologies as a result of strengthening our
relations and collaboration with Toshiba Corporation’s Researchand Development Center and Manufacturing Engineering
Center and Toshiba Corporation’s Semiconductor & Storage
Products Company.

2. Mechatronics Systems Segment
The segment recorded net sales of 9,832 million yen (ayear-on-year increase of 20.6%), and a loss of 503 million
yen (against a loss of 1,605 million yen in the previous fiscal
year).
In the LCD module process, sales of outer lead bonders andtouch panel bonding equipment increased in comparison
with the previous fiscal year.
3. Vending Machines and Systems Segment
The segment recorded net sales of 2,138 million yen (ayear-on-year increase of 23.4%), and income of 31 million
yen (a year-in-year fall of 65.3%).
Whiles sales from tobacco vending machines declined ina shrinking market and due to a falloff in demand, sales
promotion efforts won an increase in sales from ticket

The research and development expenditures and research
results for each segment are as follows:

1. Fine Mechatronics Segment
R&D expenditure for the segment totaled 785 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.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201403

Financial Review

2. Mechatronics Systems Segment
R&D expenditure for the segment totaled 519 million yen.
In LCD module equipment we have worked on thedevelopment of COG bonders 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 vacuum equipment
we have been working on the development of sputtering
equipment for optical thin films and for semiconductor
backside contacts.

Cash FlowsThe balance of cash and cash equivalents at the end of thecurrent fiscal year was 3,918 million yen, a reduction of 316
million yen compared to the end of the last fiscal year.
Cash flow from operating activities increased by 3,270 million
yen during the fiscal year (against a fall of 2,553 million in theprevious fiscal year). This was mainly due to an increase infunds as a result of a decrease in accounts receivable andrecording a net profit before income tax adjustment.
Cash flow from investment activities fell by 61 million yen during
the fiscal year (against a fall of 311 million in the previous fiscal

3. Vending Machines and Systems Segment
R&D expenditure for the segment totaled 115 million yen.
In vending machines, we have started to development of a
network system to support ticket vending machines and afree adjuster to support general-purpose vending machine.

year). This was mainly due to a decrease in cash resulting fromthe acquisition of fixed assets.
Cash flow from financing activities fell by 3,732 million yen
during the fiscal year (against an increase of 1,950 million in
the previous fiscal year). This was mainly due to a decrease infunds as a result of a decrease in short-term borrowing.

Financial Condition
Total assets at the end of the fiscal year were 47,602 million
yen, a reduction of 3,165 yen compared to the end of theprevious fiscal year.
Current assets were evaluated at 34,542 million yen, a
reduction of 2,962 million yen lower compared to the end of
the previous fiscal year. This was mainly due to a decrease innotes and accounts receivable-trade.
Fixed assets were evaluated at 13,059 million yen, a reductionof 204 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 32,538
million yen, a reduction of 2,532 million yen compared tothe end of the previous fiscal year. This was mainly due to a
reduction in short-term bank loans and long-term debt.
Total net assets at the end of the fiscal year were 15,064 million
yen, a reduction of 633 million yen compared to the end of theprevious fiscal year.
This was mainly due to application of accounting standard for
retirement benefits and other, even though retained earnings
increased with recording of the net income.

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Review

Sales by Segment

Overseas Sales by Region(¥Billions)(¥Billions)

46.2
41.1

R&D Expenditures
R&D/Sales Ratio
5.3

5.4

(¥Billions)
(％)

5.9
4.9

4.5

39.4

Facilities Expenditures
Depreciation and Amortization (¥Billions)
1.9

1.8
1.5

35.2

1.4

1.4

30.4
2.2

23.8

2.1

1.8

17.6

15.0

15.6

2.1

1.7
1.2

10.4

'10

'11

'12

'13

'14

Fine mechatronics
Mechatronics systems
Vending machines & systems
Real estate leasing

Break-even Point(¥Billions)

'10

'11

'12

'13

0.8

'14

'10

※Major countries or regions includedin each geographical area :

'11

'12

'13

'14

'10

R&D Expenditures
R&D/Sales Ratio

1.2

1.1
0.6

'11

'12

'13

'14

Facilities Expenditures
Depreciation and Amortization

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

ROA
ROE

Free Cash Flows

D/ E Ratio
(%)

(%)

(¥Billions)

4.4
48.9

2.5

2.8
45.1

-0.2
41.0

1.5
32.5

33.7

1.1

'11

'12

'13

'14

'10

70.0

69.9

75.1

3.2
73.0

1.4

-2.3

-3.0

-8.7

-9.8

'10

-0.7

93.8

'11

'12

'13

-2.9

-3.2

'14

'10

'11

'12

'13

'14

'10

'11

'12

'13

'14

ROA
ROE

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201405

FINANCIAL SECTION
ANNUAL REPORT 2014 Year ended March 31, 201406

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

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・ ・・・・・・・・・・・・・・・ 48
Independent Auditor's Report ・・・・・・・・・・・・・ 51

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201407

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2014
2013
(Millions of yen)March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Notes 14)
Short-term investments
Notes and accounts receivable, trade (Note 14)
Electronically recorded monetary claims (Note 14)
Allowance for doubtful accounts
Inventories (Note 5)
Deferred tax assets (Note 8)
Accounts receivable, other
Other current assets
Total current assets¥ 3,918
69
23,209
1
(94)
5,805
707
582
345
34,542¥ 4,234
63
24,546
527
(54)
6,646
787
523
232
37,504$ 38,070
674
225,504
9(918)
56,403
6,866
5,654
3,355
335,617

Property, plant and equipment:
Land (Note 15)
Buildings and structures (Note 15)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11928,443
2,995
457
646
32,660(21,003)
11,657

119
28,433
2,527
711
207
31,997(20,180)
11,817

1,159
276,360
29,0984,434
6,280
317,331(204,071)
113,260

112
234
1,059
(2)
1,403

241
117
1,098
(10)
1,446

1,084
2,279
10,289(19)
13,633¥ 47,602¥ 50,767$ 462,510

Investments and other assets:
Investments in securities (Notes 4 and 14)
Deferred tax assets (Note 8)
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

5

08

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

March 31,2014
2013
(Millions of yen)
Liabilities and net assets
Current liabilities:
Short-term bank loans (Notes 6 and 14)
Current portion of long-term debt (Notes 6 and 14)
Notes and accounts payable, trade (Note 14)
Provision for contract losses
Current portion of lease obligations (Note 6)
Advances received
Accrued expenses
Accrued income taxes (Note 8)
Asset retirement obligations
Provision for directors' bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6 and 14)
Provision for retirement benefits(Notes 3 and 11)
Net defined benefit liability (Notes 3 and 11)
Lease obligations (Note 6)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term lease deposits (Note 14)
Total long-term liabilities
Total liabilities

March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 8,119
2,000
8,504
8
56
393
2,190
190
11
23
521
22,015¥ 11,743
－
8,500
17
102
829
2,022
59
11
－
530
23,813$ 78,881
19,43382,62478
546
3,818
21,282
1,849
108
223
5,059
213,901

700
－
6,172
124
19
14
403
34
3,057
10,52332,538

2,700
4,801
－
182
22
12
450
33
3,057
11,25735,0706,801－
59,972
1,203
189
131
3,918
326
29,706102,246
316,147

6,762
9,108
1,788
(1,721)
15,937

6,762
9,995
514
(1,720)15,551

65,69788,494
17,379(16,720)
154,85022
313(1,208)(873)
15,064¥ 47,602

56
90
－
146
15,697¥ 50,767

212
3,038(11,737)(8,487)
146,363$ 462,510

Contingent liabilities (Note 12)
Net assets:
Shareholders’ equity:
Common stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2014
and 2013
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
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of the consolidated financial statements.
6

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201409

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2014
2013
(Millions of yen)

Net sales
Cost of sales (Notes 7 and 15)
Gross profit
Selling, general and administrative expenses(Notes 7,11 and 18)
Operating income
Other income (expenses):
Interest and dividend income
Subsidy income
Gain on sales of investment securities
Insurance premiums refunded cancellation
Interest on tax refund
Interest expense
Foreign exchange loss, net
Other, net
Ordinary income (loss)
Business structure improvement expenses
Impairment loss (Note 19)
Income (loss) before income taxes andminority interest
Income taxes (Note 8):
Current
Refund of income taxes
DeferredIncome (loss) before minority interest
Net income (loss)

Year ended
March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 35,165
26,891
8,274¥ 30,400
23,2677,133$ 341,672
261,284
80,388

7,538

7,073

73,237

736

60

7,151

59
－
76
42
－
(148)
(112)
(93)
560
－
(17)
543

18
141
－
33
35
(170)
(468)
(8)
(359)
(858)
－
(1,217)

580
－
738
408
－
(1,442)(1,091)
(902)
5,442
－
(161)
5,281

167
－
(11)
156
387

73
(97)
223
199
(1,416)

1,627
－
(107)
1,520
3,761

¥ 387

¥

(1,416)$

3,761

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20147

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2014
2013
(Millions of yen)

Net income (loss) before minority interests
Other comprehensive income: (Note 9)
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income (loss)(Breakdown)Comprehensive income attributable to ownersof the parent

Year ended
March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 387

¥ (1,416)$ 3,761

(35)
223
188
¥ 575

31
137
168
¥ (1,248)

(335)
2,165
1,830
$ 5,591575(1,248)

5,591

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

8

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201411

Financial Section

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

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capital51,926,194

6,762

9,995

Net income (loss)––

Net change during the year–

Net decrease in treasury stock

Retainedearnings

Treasurystock

Valuation and translation adjustments
Valuationdifference
Remeasure
Foreignonments ofcurrency
available-for
definedtranslation-sale
benefitadjustments
securities
plans

Total

(Millions of yen)
1,933
(1,720)

25

(47)

–

16,948–(1,416)

–

–

–

–

(1,416)

–

–

–

–

31

137

–

168

–

–

–

–

(0)

–

–

–

(0)

Deficit disposition

–

–

–

–

–

–

–

–

–

Other net

–

–

–

(3)

–

–

–

–

(3)

51,926,194¥ 6,762

9,995

¥ 514

¥ (1,720)

¥ 56

¥ 90

–

¥ 15,697

Balance as of April 1, 2012

Balance as of April 1, 2013¥¥

Net income (loss)

–

–

–

387

–

–

–

–

387

Net change during the year

–

–

–

–

–

(34)

223

(1,208)(1,019)(1)

Net decrease in treasury stock

–

–

–

–

(1)

–

–

–

Deficit disposition

–

–

(887)

887

–

–

–

–

–

Other net

–

–

–

–

–

–

–

–

–

51,926,194¥ 6,762

9,108¥ 1,788¥ (1,721)

¥ 22

¥ 313

¥ (1,208)¥ 15,064

$

873

$ –

$ 152,514

Balance as of March 31, 2014¥

(Thousands of U.S. dollars)
Balance as of April 1, 2013
Net income (loss)$ 65,697$ 97,118$ 4,994$ (16,715)

$ 547

–

–

3,761

–

–

–

–

3,761

Net change during the year

–

–

–

–

(335)

2,165

(11,737)(9,907)

Net decrease in treasury stock

–

–

–

(5)

–

–

–

(5)

Deficit disposition–(8,624)

8,624

–

–

Other net

–

–

–

–

–

$ 65,697$ 88,494$ 17,379$ (16,720)$ 212

Balance as of March 31, 2014

–

–

–

–

–

–

$ 3,038$ (11,737)$ 146,363

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

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20149

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2014
2013
(Millions of yen)

Year ended
March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

Operating activities:
Income (loss) before income taxes and minority interest
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expense
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Foreign exchange losses (gains)
Increase (decrease) in advances received
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash (used in) provided by operating activities

¥ 543
1,359
17
10
30
–
161
(59)
148
(76)
(0)
(24)
(461)
1,959
(39)
(174)
36
(26)
3,404
60
(149)
(45)
–
3,270

¥ (1,217)
1,424
–
20
(11)
(301)
–
(18)
170
–
(2)
(6)
58
(444)
48
(2,340)(41)313(2,347)
18
(171)
(151)
98
(2,553)$ 5,281
13,208
161
97
295
–
1,565
(580)
1,442
(738)
(3)
(232)
(4,477)
19,037(379)(1,691)349(256)
33,079578(1,451)(437)–
31,769Investment activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of investment securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash used in financing activities

(10)
14
171
(37)
3
(202)
（61）

(12)
–
–
(162)
4
(141)
（311）

(100)
139
1,666
(362)
27
(1,961)(591)

Financing activities:
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchases of treasury stock
Net cash provided by (used in) financing activities(3,624)
(107)
–
–
(1)
(3,732)

1,941
(191)
700
(500)
(0)
1,950

(35,214)(1,044)––(5)(36,263)

Effect of exchange rate change 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

207
(316)
4,234
¥ 3,918

124
(790)
5,024
¥ 4,234

2,012(3,073)
41,143$ 38,070

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201413

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2014
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, 2014 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 ¥ 102.92 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2014. 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.
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 intervening period between the year end of the subsidiaries and that of theCompany.
11

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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.
(5) Derivatives
All derivatives are carried at fair value.
(6) Inventories
Finished goods and raw materials— moving average method (in cases
where the profitability has declined,
the book value is reduced
accordingly)

Semi-finished goods and work in process— individual cost method (in cases
where the profitability has declined,
the book value is reduced
accordingly)

12
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201415

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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.
(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 the 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.

13

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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. Prior service cost is amortized by thestraight-line method over a period of 10 years, which is within the estimated averageremaining years of service of the eligible employees.
(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) Leased assets
The depreciation of leased assets under finance lease is calculated using thestraight-line method over the lease term with residual value of zero.

14
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201417

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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.
(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 taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.

15

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

3.

Accounting Changes
The Company adopted “Accounting Standard for Retirement Benefits” (ASBJ
Statement No.26 of May 17, 2012) and “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No.25 of May 17, 2012) (except for certain
provisions described in the main clause of Section 35 of the standard and in the mainclause of Section 67 of the guidance) as of the end of the fiscal year ended March 31 ,2014. These accounting standards require entities to apply a revised method forrecording the retirement benefit obligation, after deducting pension plan assets, as aliability for retirement benefits. In addition, unrecognized actuarial differences andunrecognized prior service costs are recorded as a liability for retirement benefits.
Concerning the application of the Accounting Standard for Retirement Benefits, basedon the provisional treatment set out in Clause 37 of the standard, the effects of suchchanges in the current fiscal year have been recorded in retirement benefits liability
adjustments through accumulated other comprehensive income. As a result of thischange, a liability for retirement benefits was recognized in the amount of ¥6,172
million ($59,972 thousand) and accumulated other comprehensive income decreased by¥1,208 million ($11,737 thousand) as of March 31, 2014, net assets per share decreasedby ¥24.25 yen.

16
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201419

Financial Section

4. Investments in securities
At March 31, 2014 and 2013, 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 312014
2013
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
costs
costs
Sheet
Sheet
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 31,2014
Amountrecorded in
Acquisition the balance
costs
Sheet
Difference(Thousands of U.S. dollars)

¥ 37
–
–
¥ 37

¥ 59
–
–
¥ 59

¥ 22
–
–
¥ 22

¥ 52
–
–
¥ 52

¥ 132
–
–
¥ 132

¥ 80
–
–
¥ 80

$ 357
–
–
$ 357

$ 572
–
–
$ 572

$ 215
–
–
$ 215

–
–
–
－

–
–
–
－

–
–
–
－

59
–
–
59

56
–
–
56

(3)
–
–
(3)

–
–
–
－

–
–
–
－

–
–
–
－

At March 31, 2014 and 2013, non-marketable securities carried at cost are summarized asfollows:
March 31,2013
2014
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,
2014
(Thousands of
U.S. dollars)

¥ 52
1

$ 506
6

At March 31, 2014, other securities sold are summarized as follows:

Sales amount
Shares
Bond
Other
Total

¥ 150
－
－
¥ 150

March 312014
Total gain on
sales(Millions of yen)
¥ 76
－
－
¥ 76

Total loss on
sales
－
－
－
－

Sales amountMarch 312014
Total gain on
sales(Thousands of U.S. dollars)$ 1,458
$ 738
－
－
－
－
$ 1,458$ 738

Total loss on
sales
－
－
－
－

At March 31, 2013, other securities sold are summarized as follows:
Not applicable
17

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

5. Inventories
Inventories at March 31, 2014 and 2013 are summarized as follows:
March 31,2014
2013
(Millions of yen)Finished products
Raw materials
Work in process
Total¥ 1,747156
3,902¥ 5,805¥ 2,351196
4,099¥ 6,646

March 31,
2014
(Thousands of
U.S. dollars)$ 16,979
1,513
37,911$ 56,403

6. 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, 2014 and 2013 were 1.1%.
Long-term debt at March 31, 2014 and 2013 are summarized as follows:
March 31,2014
2013
(Millions of yen)March 31,
2014
(Thousands of
U.S. dollars)

Unsecured:
1.24% to 1.28% loans from banks due
2014 to 2015
Lease obligations

2,700
180

2,700
284

26,234
1,749

Total
Less current portion

2,880
2,056

2,984
102

27,983
19,979824¥ 2,882$ 8,004

Long-term debt and lease obligations, net¥

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201418

21

Financial Section

6. Short-Term Bank Loans and Long-Term Debt (continued)
Aggregate annual maturities of long-term debt and lease obligations at March 31, 2014 aresummarized as follows:
March 31, 2014
(Millions of(Thousands ofyen)
U.S. dollars)
2015¥ 2,056$ 19,979
2016
740
7,189
2017
35
341
2018 and thereafter
49
474
Total
$ 27,983¥ 2,880
The Company entered into one-year contracts for commitment lines of credit with fivebanks in the aggregated amount of approximately ¥5,400 million ($52,468 thousand) for
efficient financial arrangements for operating funds on July 25, 2013, out of which thebalance of bank borrowings at March 31, 2014 is ¥200 million ($1,943 thousand).
7. Research and Development Expenses
Research and development expenses charged to income for the years ended March 31,
2014 and 2013 are as follows:Year ended March 31,
2014
2013
(Millions of yen)
¥ 1,726

22¥ 1,805

Year ended
March 31,
2014
(Thousands of
U.S. dollars)$ 16,769

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201419

Financial Section

8. Income Taxes
The major components of deferred tax assets and liabilities as of March 31, 2014 and 2013
are summarized as follows:
March 31,2013
2014
(Millions of yen)
Deferred tax assets:
Employees’ retirement benefits
Net defined benefit liability
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,
2014
(Thousands of
U.S. dollars)–¥ 1,767
319
3
113
28
2,776
855
5,861
(4,849)1,012¥ 1,814
–
336
7
151
11
3,367
709
6,395
(5,406)989–$ 17,172
3,096
28
1,102
268
26,976
8,308
56,950(47,112)
9,838

(1)

(22)

(11)

(70)
(71)
¥ 941

(62)
(84)
¥ 905

(682)
(693)
$ 9,145

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

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201423

Financial Section

8. Income Taxes (continued)
Income taxes in Japan applicable to the Company and its domestic consolidated
subsidiaries consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in theaggregate, resulted in a statutory rate of approximately 38.0% for the years ended March 31,
2014. Income taxes of the foreign consolidated subsidiaries are based generally on the tax
rates applicable in their countries of incorporation
The reconciliation between the effective tax rates reflected in the consolidated statement ofincome and the effective statutory tax rate for the years ended March 31, 2014 and 2013 aresummarized as follows:

Effective statutory tax rate
Effect of:
Non-deductible expenses
Change in valuation allowance
Unrecognized deferred tax assets
Inhabitants tax per capital
Different tax rates applied to foreign consolidated
subsidiaries
Foreign tax
Adjustments in deferred tax assets and liabilities
due to the change in tax rate
Other
Effective tax rates

March 31,
2013
2014
38.0%
Omitted sinceloss before
5.9
income taxes
11.5
and minority(51.9)
interests was
3.2
recorded.
3.8
2.1
10.6
5.6
28.8

－

Adjustment of amounts of deferred tax assets and deferred tax liabilities due to change intax rate for income taxes
In line with the promulgation on March 31, 2014 of the “Act on Partial Revision of the
Income Tax Act, etc.” (Act No.10), the corporate tax rate imposed on the Company and its
domestic consolidated subsidiaries shall be amended from the year beginning April 1, 2014.
As a result, the normal effective statutory tax rate, which is used in the calculation ofdeferred tax assets and deferred tax liabilities, has changed from 38.0% to 35.6% for
temporary differences expected to be realized from the year beginning April 1, 2014.
The effect of this change was to reduce deferred tax assets (net of deferred tax liabilities) by¥58 million ($560 thousand) and increase “Income taxes-deferred” by the same amount asof and for the year ended March 31, 2014, respectively.

20

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

9. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income for the year ended March 31, 2014 and 2013:
March 31,2014
2013
(Millions of yen)
Valuation difference on other(available-for-sale) securities
Amount arising during the year
Reclassification adjustments for gains
and losses included in net income
Amount before tax effectTax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Amount arising during the year
Reclassification adjustments for gains
and losses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Total other comprehensive income

March 31,
2014
(Thousands of
U.S. dollars)

¥ 20

¥ 42

$ 198

(76)
(56)
21
(35)

–
42
(11)
31

(738)
(540)
205
(335)

223

137

2,165

–
223
–
223

–
137
–
137

–
2,165
–
2,165

¥ 188

¥ 168

$ 1,830

10. Information on dividends
The Company paid cash dividends as follows:
Not applicable
Approval of dividends payments for which the record date is in the fiscal year and effective
date is in the following fiscal year is planned as follows:
Date of board
resolution
May 16,
2014

Class ofstock
Commonstock

Total dividend
amount¥ 98 million

Source ofdividends
Retainedearnings

Dividend
per share¥2.00

Reference
date
March 31,2014

Effective
date
June 3,
2014

21
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201425

Financial Section

11. Retirement Benefits(For the fiscal year ended March 31, 2014)
The Companies and its domestic consolidated subsidiaries have defined benefit pension
plans and lump-sum retirement payment plans which cover substantially all employees who
retire from the Companies. Eligible employees may also receive additional payments
under the plans.
The changes in the retirement benefit obligation during the year ended March 31, 2014 are
as follows:

Retirement benefit obligations at April 1,
2013
Service costs
Interest costs
Actuarial loss
Retirement benefit paid
Retirement benefit obligations at March 31,
2014Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ 7,728
313
154
572
(475)

$ 75,086
3,038
1,502
5,554
(4,611)¥ 8,292$ 80,569

The changes in plan assets during the year ended March 31,2014 are as follows:

Plan assets at April 1, 2013
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefit paid
Plan assets at March 31, 2014

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ 2,676$ 26,002
94
910
(35)
(344)
289
2,813
(351)
(3,413)¥ 2,673$ 25,968

22

Financial Section

11. Retirement Benefits (continued)
The change in net defined benefit liability that calculated by the simplified method during
the year ended March 31, 2014 are as follows:

Net defined benefit liability at April 1, 2013
Retirement benefit expense
Retirement benefit paid
Other
Net defined benefit liability at March 31,
2014Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ 479$ 4,650
182
1,769
(108)
(1,049)01¥ 553$ 5,371

The following table sets forth the funded status of the plans and the amounts recognized in
the consolidated balance sheet as of March 31, 2014 for the Company’s and theconsolidated subsidiaries’ defined benefit plans:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net liability for retirement benefits in thebalance sheet
Liability for retirement benefits
Net liability for retirement benefits in thebalance sheet

Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ 5,499$ 53,434(2,673)(25,968)
2,826
27,46632,5063,346
6,172

59,972

6,172

59,972¥ 6,172$ 59,972

Notes:Net defined benefit liability calculated by the simplified method is included.

23
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201427

Financial Section

11. Retirement Benefits (continued)
The components of retirement benefit expense for the year ended March 31, 2014 are as
follows:

Service costs
Interest costs
Expected return on plan assets
Amortization of actuarial gain (loss)
Amortization of prior service cost
Retirement benefit expense calculated by thesimplified method
Retirement benefit expense for defined
benefit plans

Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ 313$ 3,038
155
1,502
(94)
(910)
145
1,410
(17)
(165)
182

1,769

¥ 684

$ 6,644

Unrecognized prior service cost and unrecognized actuarial loss included in accumulated
other comprehensive income (before tax effect) as of March 31, 2014 are as follows:

Unrecognized prior service cost
Unrecognized actuarial loss
Total

Year ended March 31,
2014
2014
(Millions(Thousandsof yen)of U.S.
dollars)¥ (133)$ (1,288)
1,341
13,025¥ 1,208$ 11,737

The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2014 are as follows:

Bonds
General Accounts
Other
Total

Year ended
March 31,
2014
55.3%
43.4%
1.3%
100.0%The expected return on assets has been estimated based on the anticipated allocation to each
asset class and the expected long-term returns on assets held in each category.

24

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

11. Retirement Benefits (continued)
The assumptions used in accounting for the above plans were as follows:

Discount rateLong-term expected return on plan assets

Year ended
March 31,2014
Mainly 1.44%
Mainly 3.5%

At the end of the fiscal year ended March 31, 2014, the Company and subsidiaries revised
the discount rate from 2.0%, which was applied at the beginning of the fiscal year, to 1.44%
as the Company determined that the change in the discount rate would significantly affectthe amount of the retirement benefit obligation, and therefore changed the discount rate to
1.44%.
(For the fiscal year ended March 31, 2013)
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 31,2013
(Millionsof 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¥ (8,206)
2,676(5,530)879(150)–¥ (4,801)

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

25
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201429

Financial Section

11. Retirement Benefits (continued)
Components of net periodic pension cost for the years ended March 31, 2013 aresummarized as follows:Year ended
March 31,2013
(Millionsof 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

¥

527
183
(114)
(17)
244
758
¥ 1,581

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, 2013 aresummarized as follows:
March 31,2013
Actuarial cost method
Discount rate
Expected rate of return on plan assets
Gain on plan amendment (Prior service cost)

Amortization period for actuarial loss

Projected unit
credit method
2.0 % per annum
3.5 % per annum
10 years (within
the employees’
averageremaining yearsof service)
10 years (within
the employees’
averageremaining yearsof service)26

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

12. Contingent Liabilities
The Company had the following contingent liability as of March 31, 2014:
March 31, 2014
(Millions of(Thousands ofyen)
U.S. dollars)
Guarantee for housing loans of employees

¥ 15

$ 142

13. 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, 2014 and 2013, 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.
Ⅰ. Derivative transactions which do not qualify for hedge accounting
Currency-rated transaction
Year ended March 31, 2014

Not applicable

27
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Annual Report 201431

Financial Section

13. Derivatives and Hedging Activities (continued)

Foreign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars
Total assets

Year ended March 31, 2013
Contract
Fair
Contract
AmountGain/Loss
Amount Over 1 Year Value(Millions of yen)

¥－
¥－

¥ 621
¥ 621

¥ 24
¥ 24

¥ 24
¥ 24

Year ended March 31, 2014

Not applicable
Notes:
Fair value is principally based on obtaining quotes from financial institutions singing thecontract.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
Year ended March 31, 2014
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

¥ 2,700¥ 700¥－

Year ended March 31, 2013
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

¥ 2,700¥ 2,700¥－

Year ended March 31, 2014
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

$ 26,234$ 6,801$－

Notes:
The current price by the exception handling of interest swap is the current price of thelong-term debt.
28

32

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Financial Section

14. 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 to secure the principals and maintain liquidity.
Derivatives are used, not for speculative nor trading purposes, but to manage risk offoreign currency exchange rate and interest rate fluctuations arising from business
operations.

(2) Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to 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.
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.

29

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Annual Report 201433

Financial Section

14. Financial Instruments (continued)② Matters concerning the market value of financial instruments, etc.
Amounts as of March 31, 2014 and 2013 on the accompanying consolidated balance sheet
fair value and variance are as follows.
March 31, 2014
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits¥¥ 3,987¥ 3,987

23,20923,209

－

1

1

－

60

60

－

(5) Notes and accounts payable, trade(8,504)(8,504)－(6) Short-term bank loans(8,119)(8,119)－(7) Current portion of long-term debt

(2,000)(2,000)－(2) Notes and accounts receivable, trade(3) Electronically recorded monetary claims(4) Investment securities: Other securities(8) Long-term debt
(9) Other long-term liabilities

－

(700)

(695)

5

(3,057)(2,267)790

March 31, 2013
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade(3) Electronically recorded monetary claims(4) Investment securities: Other securities¥ 4,297

24,54624,546

－

527

527

－

189

189

－

－

(5) Notes and accounts payable, trade(8,500)(8,500)－(6) Short-term bank loans(11,743)(11,743)－(7) Long-term debt

(2,700)(2,684)16(8) Other long-term liabilities(3,057)(2,312)

24

24

745
－

(9) Derivatives

34¥¥ 4,297

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201430

Financial Section

14. Financial Instruments (continued)
March 31, 2014
Carrying Value

Fair Value

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

38,744$38,744$－

225,504

225,504

－

9

9

－

(3) Electronically recorded monetary claims(4) Investment securities: Other securities

578

578

－

(5) Notes and accounts payable, trade(82,624)(82,624)－(6) Short-term bank loans(78,881)(78,881)－(7) Current portion of long-term debt

(19,433)(19,433)－(8) Long-term debt

(6,801)(6,754)47(9) Other long-term liabilities(29,706)(22,025)

7,681(*)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, and(3) Electronically recorded monetary claims
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.
(4) Investment securities - Other securities
The fair value of equity securities represents the price on the stock exchange.
(5) Notes and accounts payable, trade, (6) Short-term bank loans, (7) Current portionof long –term debt
As these items are settled in a short period of time and the fair value is almost
equal to the book value, their book value is presented.
(8) 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.

31

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201435

Financial Section

14. Financial Instruments (continued)(9) 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.
(10) Derivatives transaction
See Note 13 for the detail of derivative transactions.
b) As non-marketable equity securities of ¥52 million ($506 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“(4) Investment securities - Other securities.”c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥3,967 million ($38,542 thousand), Notes and accounts
receivable, trade of ¥23,209 million ($225,504 thousand), Electronically recordedmonetary claims of ¥1 million ($9 thousand) are due within one year subsequent toMarch 31, 2014 and Cash and bank deposits of ¥4,277 million, Notes and accounts
receivable, trade of ¥24,546 million, Electronically recorded monetary claims of¥527million are due within one year subsequent to March 31, 2013.

15. 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 31,2013
Rental property¥ 6,524

March 31,
Decrease
2014(Millions of yen)
¥ 228
¥ 6,296

At March 31,
2014 Fair
Value¥ 6,343

Carrying AmountMarch 31,2012
Rental property¥ 6,863

March 31,
Decrease
2013(Millions of yen)
¥ 339
¥ 6,524

At March 31,
2013 Fair
Value¥ 7,205

Carrying AmountMarch 31,2013
Rental property

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

$ 63,388

At March 31,
March 31,2014 Fair
Decrease
2014
Value(Thousands of U.S. dollars)$ 2,218$ 61,170$ 61,631

32

Financial Section

15. Investment in Rental Property (continued)
Notes:a)

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

b)

Decrease represents depreciation during the year.

c)

Fair value at March 31, 2014 and 2013 is internally determined by the Company
based on the real-estate appraisal standard.

Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2014
Rental income Rental costs Difference(Millions of yen)
¥ 1,732¥ 1,386¥ 346

Rental property

Year ended March 31, 2013
Rental income Rental costs Difference(Millions of yen)
¥ 1,729¥ 1,370¥ 359

Rental property

Year ended March 31, 2014
Rental income Rental costs Difference(Thousands of U.S. dollars)$ 16,827$ 13,466$ 3,361

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.

33
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201437

Financial Section

16. 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.
(2) Methods of calculating amounts for net sales, income or loss, assets and other items byreporting segment
The accounting policies applied by each reporting business segment are those outlined in“Significant items for the preparation of consolidated financial statements”.
Reporting segment is an ordinary income basis.
Internal sales between segments are mainly based on price to be applied for third-party
transactions.

34

38

SHIBAURA MECHATRONICS CORPORATION
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Financial Section

16. Segment Information (continued)(3) Information on sales, income or loss, assets and other items by reporting segment
Information for the fiscal years ended March 31, 2014 and 2013 is summarized asfollows:
Year ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 21,23122¥ 9,832
155¥2,1383¥ 1,964–¥ 35,165
180

Total sales
Segment income (loss)

21,253
1,081

9,987
(503)

2,141
31

1,964
398

35,345
1,007

Segment assets

24,895

11,317

1,559

6,816

44,587

579
10
15
5

370
–
0
5

46
–
0
1

364
–
–
–

1,359
10
15
11

862

269

13

52

1,196

Real estateleasing

Total

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

Year ended March 31, 2013
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Millions of yen)

Sales
Sales to external customers
Intersegment sales or transfers¥ 18,533
7¥ 8,153169¥ 1,7333¥ 1,981–¥ 30,400
179

Total sales
Segment income (loss)

18,5401,685

8,322(1,605)

1,736
90

1,981
443

30,579613

Segment assets

25,99312,751

1,679

6,858

47,281

575
20
13
5

430
–
0
7

45
–
0
2

374
–
–
–

1,424
20
13
14

316

79

37

143

575

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

35
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201439

Financial Section

16. Segment Information (continued)
Year ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 206,283
216$ 95,533
1,508$ 20,77726$ 19,079–$ 341,672
1,750

Total sales
Segment income (loss)

206,499
10,50597,041(4,885)20,803303

19,0793,863

343,422
9,786

Segment assets

241,887

109,955

15,145

66,231

433,218

5,627
97
149
51

3,599
–
0
51

447
–
1
7

3,535
–
–
–

13,208
97
150
109

8,373

2,615

128

502

11,618

Other
Depreciation and amortization
Amortization of goodwill
Interest income
Interest expense
Increase in tangible and intangible
fixed assets(4) Reconciliations between the reporting segment total and the amounts presented in the
consolidated financial statements.
a) Segment income
Year ended March 31,
2014
2013
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2014
(Thousands of
U.S. dollars)

Reporting segments¥ 1,007¥ 613$ 9,786

Unallocated amounts

(306)

(406)

(2,970)

Other
Consolidated

(141)

(566)

(1,374)¥ 560¥ (359)$ (5,442)

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

36

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

16. Segment Information (continued)b) Segment assets
Year ended March 31,
2014
2013
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2014
(Thousands of
U.S. dollars)

Reporting segments¥ 44,587¥ 47,281$ 433,218

Unallocated amounts

3,015

3,486

29,292¥ 47,602¥ 50,767$ 462,510

Consolidated

Notes:
Included in the “Unallocated amounts” above are unallocable assets which primarily
consist of surplus funds (cash and bank deposits) and investment funds (investment
securities) owned by the Company and deferred tax assets.
c) OtherDepreciation and amortization
Amortization of goodwill
Interest income
Interest expense
Increase in tangible andintangible fixed assets

Year ended March 31, 2014
Reportingsegments

Adjustment
amount¥ 1,3591015
11(Millions of yen)
¥
–
–
1
137

1,196

–

Consolidated¥ 1,359
10
16
148
1,196

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 13,208$–$ 13,208
97
–
97
150
4
154
109
1,333
1,442
11,618–

11,618Year ended March 31, 2013

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

Reportingsegments

Adjustment
amountConsolidated¥ 1,424
20
13
13(Millions of yen)
¥
–
–
1
157

¥ 1,424
20
14
170

575

–

575

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.

37
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Annual Report 201441

Financial Section

16. Segment Information (continued)(2) Information by geographical areaa) SalesYear ended March 31, 2014
Japan

Northeastern Asia

Other

Total

¥ 1,189¥ 35,165(Millions of yen)
¥ 17,553¥ 16,423

Japan

Northeastern Asia

Year ended March 31, 2013
Other

Total

¥ 1,774¥ 30,400(Millions of yen)
¥ 19,953¥ 8,673

Year ended March 31, 2014
Japan

Northeastern Asia
Other
(Thousands of U.S. dollars)$ 170,551$ 159,568$ 11,553

Total$ 341,672

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

Year ended March 31, 2014

Japan

Northeastern Asia
(Millions of yen)Total

¥ 11,650¥¥ 11,657

7

Year ended March 31, 2013
Japan

Northeastern Asia
(Millions of yen)Total

¥ 11,810¥ 7¥ 11,817

Year ended March 31, 2014
Japan

Northeastern Asia
(Thousands of U.S. dollars)

Total$ 113,198$ 62$ 113,260

38

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

16. Segment Information (continued)c) Information by main customer
Year ended March 31, 2014
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems(Millions of yen)
¥ 4,439

Sales to Toshiba Company¥ 3,926

Sales to HEFEI XINSHENG
OPTOELECTRONICSTECHNOLOGY CO.,LTD

Year ended March 31, 2013
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems(Millions of yen)
¥ 3,369

Sales to Toshiba Company¥

Sales to HEFEI XINSHENG
OPTOELECTRONICSTECHNOLOGY CO.,LTD

294

Year ended March 31, 2014
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems(Thousands of U.S. dollars)$ 43,134

Sales to Toshiba Company$ 38,148

Sales to HEFEI XINSHENG
OPTOELECTRONICSTECHNOLOGY CO.,LTD③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total

¥ –

¥ 17

Real estateleasing

Total

$ –

$ 161

(Millions of yen)
Balance as of March 31, 2014

¥ –

¥ 17

¥ –

Balance as of March 31, 2013 Not applicableYear ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Thousands of U.S. dollars)
Balance as of March 31, 2014

$ –

$ 161

$ –

39

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201443

Financial Section

16. Segment Information (continued)④ Depreciation and remaining carrying value of goodwill by reporting segment
Balance as of March 31, 2014 Not applicableYear ended March 31, 2013
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total

¥ –

¥ 10

(Millions of yen)
Balance as of March 31, 2013

¥ 10

¥ –

¥ –

Balance as of March 31, 2014 Not applicable⑤ Gain on negative goodwill by reporting segment
Gain on negative goodwill by reporting segment at March 31, 2014 and 2013 was not
significant.
17. Non-cash Transactions
Lease assets and lease obligations recorded relating to lease transactions were ¥3 million($34 thousand) and ¥3 million ($34 thousand), respectively for the year ended March 31,
2014 and ¥21 million and ¥21 million, respectively for the year ended March 31, 2013.

40

44

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

18. Selling, General and Administrative Expenses
For the years ended March 31, 2014 and 2013, major selling, general and administrative
expenses are summarized as follows:
March 31,
2014
(Thousands of
U.S. dollars)

March 31,2013
2014
(Millions of yen)
Packing and delivery expenses
Sales commission
Advertising expenses
Employees' salaries and allowances
Provision for director’s bonuses
Provision of allowance for doubtful
accounts
Retirement benefit expenses
Provision for directors' retirement
benefits
Depreciation
Rent expenses
Development and research expenses
19.

¥

96
247
4
3,758
23

¥

59
146
7
3,584
－

$ 937
2,399
37
36,515
223

48
255

8
308

470
2,474

2
725
114
1,725

3
707
108
1,805

21
7,048
1,105
16,756

Impairment losses
The major assets with respect to which impairment losses were recorded for the fiscal
year ended March 31, 2014 are as follows.
Location

Use

Classification

Shibaura Hi-tech Corporation (Obama Fukui)

Idle assets

Buildings and equipment

The Companies mainly groups their assets by each operating division for the assets
held and used at the Company, by each subsidiary for the assets held and used at
subsidiaries and by each asset for idled assets with no plan to use.
The book values of above assets were written down to recoverable amounts due tofollowing reasons: it was in idle condition, its future use was undetermined.
The Company recorded a loss on impairment of fixed assets of ¥17 million, thebreakdown of which is as follows; “Buildings” -¥14 million and “Equipment” -¥3
million.
In addition, recoverable amounts is performed based on the memorandum value sinceno future cash flow can be expected.

41
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201445

Financial Section

20. Related Party Transactions
Toshiba Corporation held 39.1 % of the Company’s voting rights as of March 31, 2014.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation andreceived rent revenue from Toshiba Corporation. The aggregate amounts of thesetransactions were ¥4,439 million ($43,134 thousand) and ¥3,369 million for the years
ended March 31, 2014 and 2013, respectively.
The Company purchased raw materials from Toshiba Corporation totaling ¥447 million($4,343 thousand) and ¥198 million for the year ended March 31, 2014 and 2013,
respectively.
Amounts due from and to Toshiba Corporation at March 31, 2014 and 2013 were as
follows:
March 31,

2014
2013
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation¥ 1,346
3,269

¥ 587
3,281

March 31,
2014
(Thousands of
U.S. dollars)$ 13,080
31,767

42

46

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

21. 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,
2013
2014
(Yen)
Net income (loss):– Basic
Net assets¥

7.83
304.87¥(28.66)
317.68Year ended
March 31,2014
(U.S. dollars)$ 0.082.96

Notes:The information regarding diluted net income per share for the years ended 2014 and 2013is omitted because of no stock with dilutive effect.
As stated in “Changes in method of accounting” the Company applies the accounting
standard and guidance for retirement benefits and follows the transitional treatment asprovided for in Item 37 of the Accounting Standard for Retirement Benefits.
This change decreased net assets per share by 24.25 yen for the current fiscal year.

43
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201447

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Balance Sheet

AssetsCurrent assets:
Cash and bank deposits
Notes and accounts receivable, trade:
Notes
Electronically recorded monetaryclaims
Accounts
Allowance for doubtful accounts
Inventories
Deferred tax assets
Short-term loans receivable fromsubsidiaries and affiliates
Other current assets
Total current assets
Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net
Investments and other assets:
Investments in securities
Investments in subsidiaries andaffiliates
Deferred tax assets
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

March 31,
March 31,2014
2013
(Millions of yen)March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 1,704¥ 2,093$ 16,559

24
1

193
527

234
9

19,967
(613)
4,859
501
1,846

21,350
(595)
5,359
606
1,796

194,001(5,953)47,2094,866
17,933

1,827
30,116

1,277
32,606

17,755
292,61369
27,8402,565
89
646
31,209(19,996)
11,213

69
27,824
2,136
243
207
30,479(19,196)
11,283

668
270,497
24,922867
6,280
303,234(194,288)
108,946

59
372

159
372

578
3,618

187
612
298
(0)
1,528

73
642
310
(8)
1,548

1,821
5,941
2,897
(3)
14,852¥ 42,857¥ 45,437$ 416,411
44

48

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Financial Section

March 31,

2013
2014
(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 director’s 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, 2014 and 2013
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,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 7,5182,000¥ 11,260－$ 73,051
19,433

1,794
5,210
283
15
23
8
2,003
126
183
19,163

1,573
4,960
712
46
－
17
1,919
41
113
20,641

17,43350,618
2,749
141
223
78
19,463
1,222
1,780
186,191

700
18
19
4,412
403
3,057
21
8,630
27,793

2,700
33
22
4,323
450
3,057
20
10,60531,246

6,801
175
189
42,863
3,918
29,706
203
83,855270,046

6,761
9,108
895
(1,721)
15,043

6,761
9,995
(887)
(1,720)14,14965,69688,494
8,690(16,719)
146,161

21

42

204

15,064¥ 42,857

14,191¥ 45,437

146,365$ 416,411

45
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201449

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Statement of Operations

Year ended March 31,
2014
2014
(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Other income (expenses):
Interest and dividend income
Interest expense
Business advisory fee
Foreign exchange loss ,net
Other, net
Ordinary income (loss)
Business structure improvement expenses
Loss on valuation of subsidiaries’ stock
Provision of allowance for doubtful accounts
for subsidiaries and affiliates
Loss before income taxes
Income taxes:
Current
Refund of income taxes
Deferred
Net income (loss)¥ 26,227
20,646
5,581¥ 21,906
17,2664,640$ 254,824
200,598
54,226

5,575
6

5,272
(632)

54,169
57

732
(137)
299
(107)
80
873
－
－
－

523
(157)
245
(467)
235
(253)
(582)
(154)
(82)

7,111
(1,332)
2,909(1,039)
776
8,482
－
－
－

873

(1,071)

8,482

(26)
－
5
(21)
¥ 894

(16)
(98)
222
108
¥ (1,179)

(250)
－
43
(207)
8,689

(Yen)
Per share of common stock:
Net income (loss)
Cash dividends applicable to the year

50

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Year ended
March 31,
2014
(Thousands of
U.S. dollars)(Note 1)

¥ 18.10
2.00¥ (23.86)
0.00$(U.S. dollars)$ 0.180.02

46

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201451

Board of Directors
As of June 19, 2014

Directors

Shigeki Fujita

Makoto Fujino

Hitoshi Dojima

President and Chief Executive Officer

Senior Vice President

Senior Vice President

Executive General Manager ofFine Mechatronics Division

Executive General Manager ofCorporate Management Division

Yoshitsugu Ogawa

Satoru Hara

Takashi Nozawa

Senior Vice President

Vice President

Vice President

Deputy Executive General Manager ofFine Mechatronics Division

Executive General Manager ofTechnology & Development Division
General Manager of Quality
Assurance Division

Deputy Executive General Manager of
Mechatronics System Division

Keigo Imamura

Hisashi Shindo

Vice President
Executive General Manager of
Production & Procurement Division

Vice President
Deputy Executive General Manager of
Mechatronics System Division

Auditors

52

Yoshimi Sekiya

Hideo Kitamura

Sennosuke Yoshida

Auditor

Auditor

AuditorSHIBAURA MECHATRONICS CORPORATION
Annual Report 2014

Investor Information
As of March 31, 2014

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

6,669

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/: 1,210

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

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

High (yen)Low (yen)

2014
333
181

2013
252
112

2012
344
191

2011
508
162

2010
472
244

Principal Shareholders

Toshiba Corporation
Japan Trustee Services Bank, Limited (trust accounts)
The Master Trust Bank of Japan, Limited (trust accounts)

Number of shares hold

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

18,977

38.4
2.2
2.2

1,108
1,066

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201453

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/

SKB0316A 1409
EDC140263