ANNUAL REPORT 2021
Year ended March 31, 2021

ANNUAL REPORT 2021
ProfileShibaura Mechatronics was established in 1939 as Shibaura Engineering Works Co., Ltd. Initially, our primary focus was on
the motor business, but in 1998 we struck out in a new direction, and reestablished ourselves as a producer of manufacturing
equipment for flat panel displays (FPDs) and semiconductors. We also took on a new name, Shibaura Mechatronics Corporation.
Extensive know-how and skills we have cultivated over many years guide us in delivering total solutions in areas as diverse as
high-accuracy mechatronics, cleaning, vacuum processing, sputtering, etching and bonding technologies. Our capabilities range
from the development of manufacturing equipment for FPDs, semiconductors, electronic components and optical thin films, tothe provision of comprehensive service support.

History
1932
Tokyo Electric Company

1939

1949

1991 1996

Oct.,1998

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

Shibaura Engineering Works Co., Ltd.

(Industrial Mechatronics Business)

Toshiba Automation Co., Ltd.

Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Toshiba Mechatronics Co., Ltd.

Manufacturing equipment for FPDs,
semiconductors and others

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

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

To Our Shareholders・・・・・・・・・・・・・・・ 02

Financial Review・・・・・・・・・・・・・・・・・ 03

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

Financial Section・・・・・・・・・・・・・・・・・ 05

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

Directors, Vice Presidents and Auditors・・・・・ 54

Investor Information・・・・・・・・・・・・・・・ 55

therefore wishes to caution readers that actual results may differ materially fromour expectations.

Financial Highlights
Year ended
March 31,2021

Year ended March 31,
2021

2020

2019

2018

2017

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

(Millions of yen)

Consolidated

Net sales￥ 44,794		 ￥ 47,141		 ￥ 53,090		 ￥ 49,257		 ￥ 42,737
Orders received		 41,969
46,632 		 51,021 		 53,355 		 42,651
Operating income 		Net income 		

2,957 		 3,123 		 4,000 		 2,498 		 1,500
1,970 		 1,944 		 2,481 		 1,747 		
931$ 404,614
			 379,090
			 26,715
			 17,793

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,667		1,242		2,494		

1,389		2,231		2,729		

1,556		1,717		2,743		

1,406		1,126		2,492		

1,566
1,222
2,210

			
			
			

Total assets		 58,294		

57,421		

61,967		

59,939		

53,721

			 526,554

Net assets		 21,855		

19,720		

18,369		

16,129		

16,533

			 197,407

Net income per share

15,06011,216
22,531(yen)(U.S. dollars)￥ 446.18 		 ￥ 440.73		 ￥ 562.90		 ￥ 365.82		 ￥ 188.44

		 $ 4.03

Number of employees		

1,224		

1,260		

1,221		

1,207		

		

1,202

1,224

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥110.71 = U.S.$1.00, as of March 31, 2021.
Note 2 : With an effective date of October 1, 2018, the Company conducted a stock consolidation at a ratio of one share for every 10 shares of common stock.
Net income per share is calculated on the assumption that the share consolidation took place in April 2016.

Net Sales

49.3(¥Billions)

Orders Received

53.4

53.1
47.1

42.7

44.8

(¥Billions)Operating Income(¥Billions)

Net Income(¥Billions)

51.0
46.6

42.7

42.0

4.0
3.1

3.0

2.5

2.5
1.7

1.5

1.9

2.0

'20

'21

0.9

'17

'18

'19

'20

'21

'17

'18

'19

'20

'21

'17

'18

'19

'20

'21

'17

'18

'19

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

01

To Our Shareholders

Cutting-edge technologies and solutions from our understanding of
manufacturing equipment contribute to our customers’ value creation.
In the business environment surrounding Shibaura
Mechatronics Group in fiscal 2020, the semiconductor industry
saw strong demand generated by IoT, 5G, AI, and otherfactors, and there was steady progress in capital investments
in logic and foundries, memories, power devices, andother products. In the FPD industry, customers delayed theirinvestment plans.
In these circumstance, our fiscal 2020 business results were as
follow.
Net sales were higher against the previous fiscal year in
the semiconductor business, but lower in the FPD business,
resulting in total sales of 44,794 million yen.
While operating income saw a year-on-year decrease to 2,957
million yen, reflecting lower net sales, ordinary income of 2,820
million yen and net income attributable to owners of the parent
company of 1,970 million yen were at levels almost equivalent
to the previous fiscal year.
The business outlook for fiscal year 2021 remains uncertain,
due to the continuing impact of the coronavirus pandemic,
but demand for semiconductors is strong, and the industry
is expected to remain favorable to investments in logic andfoundries, memories, and power devices.

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

In the FPD industry, some customers are expected to move
forward with delayed investment plans, particularly for OLEDs(organic EL). Beyond this, advances in IoT, 5G, AI and otherareas are expected to spur demand for semiconductors andFPDs, and capital investment is expected to increase in themedium to long term.
In this age of IoT, 5G, AI and ever-expanding data growth,
we contribute to our customers’ value creation with cuttingedge technologies and solutions for semiconductor and FPD
manufacturing equipment, from design and development
through to service.

Keigo Imamura
Representative Director
President and Chief Executive Officer

Financial Review
Results Summary

Overall results in vacuum application equipment were also

In FY2020 Shibaura Mechatronics recorded net sales of 44,794

Overall segment sales were lower than in the previous

million yen (a year-on-year decrease of 5.0%), operating

fiscal year. Segment income declined on the impact of theincome of 2,957 million yen (a year-on-year decrease of 5.3%),

lower sales.

sluggish.

ordinary income of 2,820 million yen (a year-on-year increaseof 1.8%), and net income of 1,970 million yen (a year-on-yearincrease of 1.3%).
Orders received increased in the semiconductor business, but
decreased in the FPD business, and the overall figure stood at
41,969 million yen (a year-on-year decrease of 10.0%).
The results for each business segment were as follows:

1. Fine Mechatronics Segment
Net sales were 29,644 million yen, a year-on-year increaseof 6.7%, and segment income was 1,993 million yen, a
35.9% improvement over the previous fiscal year.
In front-end process equipment for semiconductors,
investments in logic and foundries and in wafers remained
at a high level, as planned, and sales improved over theprevious fiscal year.
In front-end process equipment for FPDs, higher year-onyear sale mainly reflected an increase in equipment forsmall- and medium-sized panels in the first half of the
fiscal year, and firm sales of equipment for large panels.
Sales for the segment as a whole were higher than in theprevious fiscal year. Segment income increased on the
improved sales and a decrease in SG&A expenses.

3. Vending Machines and Systems Segment
Net sales were 1,954 million yen, down 13.2% year-onyear, and segment income was 8 million yen, a significant
186.2% improvement over the previous fiscal year.
The prolonged impact of the coronavirus pandemic
resulted in sluggish overall sales of ticket vending
machines, though sales did pick up on special demand
from large customers, and segment income increased.
4. Real Estate Leasing Segment
Rental income from real estate was largely in line withplans, with net sales of 1,910 million yen, a 0.2% decreaseyear-on-year, and segment income of 570 million yen, a
1.3% increase.

Research and Development Expenditure
Shibaura Mechatronics Group as a whole recorded research anddevelopment costs of 2,494 million yen, including development
costs of 446 million yen for basic technologies that could not beappropriated to any specific segment.
R&D is advanced by the development and design departments
in business divisions, the Research and Development Division,

2. Mechatronics Systems Segment
Net sales were 11,286 million yen, down 25.7% year-onyear, and segment income also fell to 792 million yen, a
43.6% decrease.
In back-end process equipment for semiconductors, sales
for advanced packages were firm, but overall sales werelower than in the previous fiscal year, despite a recovery indemand for equipment for display driver ICs in the second
half of the fiscal year.
In back-end process equipment for FPDs, customers
pushed back implementation of investment plans, andsales for large panels and small- and medium-sized panels
remained sluggish, resulting in lower year-on-year sales.

and by the technology divisions in our consolidated subsidiarycompanies. In addition, we are pushing forward efficient researchand development and the commercialization of advanced
technologies by strengthening our relations and collaborations
with Toshiba Group and business partners.
Research and development expenses and research results foreach segment are as follows:

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 1,127 million yen.
In flat panel manufacturing equipment, we have developed
a wet process equipment for high-definition small- andmedium-sized panels and a high-vacuum clean oven for

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

03

Financial Review

flexible OLED.

parent company.

In semiconductor equipment we continued to work on
the development of wet cleaning equipment for next
generation devices, single-wafer nitride-film wet-etchingequipment, and dry-etching equipment for masks.

Cash FlowsThe balance of cash and cash equivalents (hereinafter referred
to as “cash”) at the end of the period was 19,586 million yen,

2. Mechatronics Systems Segment
R&D expenses for the segment totaled 775 million yen.
In liquid crystal and OLED module assembly equipment,
we worked on the development of OLB equipment forsmall- and medium-sized panels, and for large-sized highdefinition panels.
In semiconductor assembly equipment, we developed
high-speed, high-accuracy bonding equipment for FOWLP / PLP and μLED.
In the field of vacuum equipment, we are working on thedevelopment of sputtering equipment for optical thin films
and for electromagnetic wave shielding films.

a year-on-year increase of 6,876 million yen.
Net cash from operating activities increased by 7,669 million
yen (following an increase of 1,279 million yen in the previous
fiscal year). This was mainly due to increased funds resulting
from recording net income before adjustments for taxes and adecrease in trade receivables, thought there was a decrease in
cash due to a decrease in trade payables.
Cash from in investment activities decreased by 258 million
yen (following a decrease of 901 million yen in the previous
fiscal year). This was mainly due to a decrease in cash
following the acquisition of fixed assets.
Free cash flow, the aggregate of cash flow from operations
and cash flow from investment activities, increased by 7,411

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 145 million yen.
In the field of ticket vending machines, we have promoted
the development of cashless machines that, alongside
cash, can handle payments by credit cards, electronicmoney, and QR codes.

Financial Condition
Total assets at the end of the current fiscal year showed ayear-on-year rise of 873 million yen, to 58,294 million yen.
This was largely due to an increase of 6,876 million yen in
cash and deposits, a decrease of 4,779 million yen in notes
and accounts receivable, and a decrease of 434 million yen
in construction in progress.
Liabilities were 1,261 million yen lower than at the end of theprevious fiscal year, and stood at 36,439 million yen. This was
mainly due to decreases of 588 million yen in bills payable, of
541 million yen in accrued expenses, and of 659 million yen
in liabilities related to retirement benefits.
Net assets increased by 2,134 million yen to 21,855 million
yen. This was mainly due to an increase of 1,970 million yen,
the result of recording net income attributable to owners of

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

million yen (following an increase of 378 million yen in theprevious fiscal year).
Cash from financing activities decreased by 553 million yen(following a decrease of 826 million yen in the previous fiscal
year). This was mainly due to a decrease in cash from thepayment of dividends.

FINANCIAL SECTION
ANNUAL REPORT 2021 Year ended March 31, 2021

Contents
Consolidated Balance Sheet・ ・・・・・・・・・・・・・ 06
Consolidated Statement of Operations・ ・・・・・・・・ 08

Consolidated Statement of Comprehensive Income・・・・ 09
Consolidated Statement of Changes in Net Assets・ ・・・ 10
Consolidated Statement of Cash Flows・ ・・・・・・・・ 11
Notes to Consolidated Financial Statements・ ・・・・・・ 12
Independent Auditor's Report ・ ・・・・・・・・・・・・ 48

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

05

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2020
2021
(Millions of yen)
AssetsCurrent assets:
Cash and bank deposits (Notes 17 and 20)
Notes and accounts receivable, trade (Note 17)
Electronically recorded monetary claims (Note 17)
Allowance for doubtful accounts
Inventories (Note 8)
Accounts receivable, other
Other current assets
Total current assets¥19,601
22,538602(1,440)
2,792
1,514
238
45,845¥ 12,725
27,318497(1,074)
2,869
1,684
450
44,469177,046
203,578
5,441(13,012)25,223
13,6782,145
414,099

Property, plant and equipment:
Land (Note 18)
Buildings and structures (Note 18)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

120
29,5376,847
93
541
37,138(26,377)
10,761

119
29,472
6,029
86
975
36,681(25,577)
11,104

1,083
266,799
61,845841
4,886
335,454(238,254)
97,200

91
715
887
(5)
1,688

80
768
1,005
(5)
1,848

825
6,464
8,011
(45)
15,255¥ 58,294¥ 57,421$ 526,554

Investments and other assets:
Investments in securities (Notes 7 and 17)
Deferred tax assets (Note 11)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

06

March 31,
2021
(Thousands of
U.S. dollars)(Note 1)SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

7

Financial Section

March 31,2021
2020
(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade (Note 17)
Short-term bank loans (Notes 9 and 17)
Current portion of long-term debt (Notes 9 and 17)
Current portion of lease obligations (Note 9)
Advances received
Accrued expenses
Accrued income taxes (Note 11)
Provision for directors' bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 9 and 17)
Net defined benefit liability (Note 14)
Lease obligations (Note 9)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term guarantee deposits (Note 17)
Total long-term liabilities
Total liabilities

March 31,
2021
(Thousands of
U.S. dollars)(Note 1)

¥10,684
5,050
17
672
2,749
533
38
550
20,293¥ 11,107
5,100
1,200
15
484
3,290
151
37
713
22,09796,50945,615152
6,075
24,829
4,819
343
4,965
183,307

5,800
6,792
48
2
23
311
92
3,078
16,14636,439

4,600
7,452
59
2
21
301
91
3,078
15,60437,701

52,38961,351
431
21
204
2,812
828
27,804
145,840
329,147

6,762
9,038
10,199(4,014)21,985

6,762
9,038
8,716
(4,023)
20,49361,074
81,633
92,125(36,256)
198,576

16
279
(425)
(130)
21,855¥ 58,2945
260(1,038)(773)
19,720¥ 57,421

141
2,524(3,834)(1,169)197,407$ 526,554

Contingent liabilities (Note 15)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 10,000,000 shares
Issued: 5,192,619 shares at March 31, 2021 and2020
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of the consolidated financial statements.
8

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

07

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2020
2021
(Millions of yen)

Net sales
Cost of sales (Notes 8,10 and 18)
Gross profit
Selling, general and administrative expenses(Notes 10,14 and 22)
Operating income
Other income (expenses):
Interest and dividend income
Gain on sales of investment securities
Gain on sales of property, plant andequipment
Foreign exchange loss, net
Interest expense
Commission fee
Gain on valuation of derivatives, net
Office relocation expenses
Other, net
Ordinary income
Income before income taxes
Income taxes (Note 11):
Current
Deferred
Net income
Net income attributable to owners of parent

Year ended
March 31,
2021
(Thousands of
U.S. dollars)(Note 1)

¥ 44,794
31,10013,694¥ 47,141
32,287
14,854$ 404,614
280,921
123,693

10,737

11,731

96,978

2,957

3,123

26,715

7
-

9
22

59
-

18
(19)
(94)
(28)
25
(46)
2,820
2,820

(28)
(120)
(30)
23
(154)
(76)
2,769
2,769

164
(172)
(848)
(256)
226
(416)
25,47225,472

793
57
850
1,970

764
61
825
1,944

7,162
517
7,679
17,793¥ 1,970¥ 1,944$ 17,793

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

08

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

9

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2020
2021
(Millions of yen)

Net income
Other comprehensive income: (Note 12)
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof parent

Year ended
March 31,
2021
(Thousands of
U.S. dollars)(Note 1)

¥ 1,970¥ 1,944$ 17,793

11
613
19
643
¥ 2,613

(24)
57
(22)
11
¥ 1,955

94
5,546
174
5,814
$ 23,607

2,613

1,955

23,607

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

1009

Financial Section

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

Valuation and translation adjustments
Valuation
Remeasurdifference
Foreign
ements ofoncurrency
definedavailabletranslation
benefitfor-saleadjustments
plans
securities

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capital51,926,194¥ 6,762¥ 9,038

¥ 29

¥ 282

¥ (1,095)¥ 18,369

Net income

–

–

–

1,944

–

–

–

–

1,944

Dividends of surplus (Note 13)

–

–

–

(619)

–

–

–

–

(619)

Purchase of treasury shares

–

–

–

–

(1)

–

–

–

(1)

Disposal of treasury shares

–

–

—

–

16

–

–

–

16

Net change during the year

–

–

–

–

–

(24)

(22)

57

11

Balance as of April 1, 2020

51,926,194¥ 6,762¥ 9,038¥ 8,716¥ (4,023)

¥ 5

¥ 260

¥ (1,038)¥ 19,720

Balance as of April 1, 2019

Retainedearnings

Treasurystock(Millions of yen)
¥ 7,391¥ (4,038)

Total net
assets

Net income

–

–

–

1,970

–

–

–

–

1,970

Dividends of surplus (Note 13)

–

–

–

(487)

–

–

–

–

(487)

Purchase of treasury shares

–

–

–

–

(0)

–

–

–

(0)

Disposal of treasury shares

–

–

–

–

9

–

–

–

9

Net change during the year

–

–

–

–

–

11

19

613

643

51,926,194¥ 6,762¥ 9,038¥ 10,199¥ (4,014)

¥ 16

¥ 279

¥ (425)¥ 21,855$ 47$ 2,350$ (9,380)$ 178,124

Balance as of March 31, 2021

(Thousands of U.S. dollars) (Note 1)
Balance as of April 1, 2020

$ 61,074$ 81,633$ 78,729$(36,329)

Net income––

17,793––––

17,793

Dividends of surplus (Note 13)––(4,397)

–

–

–

–

(4,397)Purchase of treasury shares

–

–

–

(2)

–

–

–

(2)

Disposal of treasury shares

–

–

–

75

–

–

–

75

Net change during the year

–

–

–

–

94

174

5,546

5,814

$ 61,074$81,633$ 92,125$ (36,256)$ 141$ 2,524$ (3,834)$ 197,407

Balance as of March 31, 2021

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

11

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2021
2020
(Millions of yen)

Year ended
March 31,
2021
(Thousands of
U.S. dollars)(Note 1)

Net cash provided by Operating activities
Income before income taxes and non-controlling interest
Depreciation and amortization
Increase in allowance for doubtful accounts(Decrease) increase in net defined benefit liability
Interest and dividend income
Interest expense
Foreign exchange losses (gains)
Increase (decrease) in advances received
Decrease in notes and accounts receivable-trade
Increase in inventories
Decrease in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities¥ 2,820
1,667
367
(46)
(7)
94
1
191
4,679
(915)
(1,116)
27
374
8,136
7
(94)
(380)
7,669

¥ 2,769
1,389
879
160
(9)
120
(15)
(579)
2,914
(537)
(4,149)
(39)
201
3,104
10
(121)
(1,714)
1,279$ 25,472
15,060
3,317
(415)
(59)
848
10
1,722
42,264(8,262)(10,078)
241
3,376
73,49659(845)(3,431)
69,279Net cash used in Investment activities
Payments into 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 investment activities

(0)
(134)
(124)
（258）

(0)
36
(843)
177
(271)
（901)

(0)
(1,219)(1,116)(2,335)

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

(50)
(17)
1,200
(1,200)
(0)
(486)
(553)

(6)
4,300
(4,500)
(1)
(619)
(826)

(452)
(145)
10,839(10,839)(2)(4,397)(4,996)18
6,876
12,709¥ 19,586

(14)
(462)
13,171¥ 12,709

161
62,109114,804$ 176,913

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 (Note 20)

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

1211

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2021
1.

Basis of Presentation

Shibaura Mechatronics Corporation (the “Company”) and its consolidated subsidiaries(collectively, the “Companies” or the “Group”) maintain their accounting records and prepare
their financial statements in accordance with accounting principles generally accepted inJapan. The accompanying consolidated financial statements have been prepared inaccordance 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 and Exchange Act ofJapan.
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 ¥ 110.71 = U.S. $ 1.00, the approximate
rate of exchange in effect on March 31, 2021. This translation should not be construed as arepresentation that yen could be converted into U.S. dollars at the above or any other rate.

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Financial Section

2.

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

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14

13

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(5)

Derivatives
All derivatives are carried at fair value except for interest rate swaps which meet specifichedge criteria.

(6) Inventories
Finished goods and raw materials— moving average method (in cases
where profitability has declined, thebook value is reduced accordingly)

Semi-finished goods and work in process— individual cost method (in cases
where profitability has declined, thebook value is reduced accordingly)(7) Depreciation and amortization (except for leased assets)
Depreciation of property, plant and equipment is generally computed by the decliningbalance method, based on the estimated useful lives of the respective assets. The
straight-line method is applied to certain research facilities acquired during the year
ended March 31, 1995, and buildings acquired on or after April 1, 1998. Foreign
consolidated subsidiaries compute depreciation primarily using the straight-line method.
The following summarizes the estimated useful lives of property, plant and equipmentby 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 consolidatedbalance sheet, are amortized by the straight-line method. Capitalized software forinternal use is amortized by the straight-line method over a period of 5 years, based on
the estimated useful life of the software.
(8) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to coverpossible losses on the collection of receivables. The amount of the allowance isdetermined based on the Company’s historical experience with write-offs, plus anestimate of specific doubtful accounts based on a review of the collectibility of
individual receivables.
(9) Provision for directors’ bonuses
To provide for the payment of bonuses to directors and statutory auditors, an allowance
is made based on the projected amount incurred.

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Financial Section

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

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(16) Hedge accounting
Interest rate swaps which meet specific hedge criteria and qualify for special hedge
accounting treatment are not remeasured at fair value.
In addition, from the current consolidated fiscal year, "Practical Solution on theTreatment of Hedge Accounting for Financial Instruments that Reference LIBOR"(ASBJ PITF No. 40, September 29, 2020) has been applied.
Hedging instruments and hedged items are summarized as follows:
Hedging instruments
Hedged items
Interest rate swap agreements ･･･ Interest on long-term debt
The Company uses derivative transactions to hedge its exposure to interest rate
fluctuation risk on long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
(17) Research and development expenses
Research and development expenses are expensed as incurred and included in cost of
sales or selling, general and administrative expenses.
(18) Consumption tax
The tax-excluded method is used with respect to consumption tax and local consumption
taxes.
(19) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.
Application of tax effect accounting on transition from the consolidated taxation system
to the group tax sharing system.
With regard to the transition to the group tax sharing system introduced by the “ActPartially Amending the Income Tax Act, etc.” (Act No. 8 of 2020) and items under the
non-consolidated taxation system reviewed in line with the transition to the group tax
sharing system, the Company and certain consolidated subsidiaries have applied theprovisions of the Tax Act before the revisions in determining the amount of deferred tax
assets and liabilities pursuant to Paragraph 3 of the “Practical Solution on the Treatment
of Tax Effect Accounting for the Transition from the Consolidated Taxation System to
the Group Tax Sharing System” (ASBJ PITF No. 39, March 31, 2020), instead of
applying Paragraph 44 of the “Implementation Guidance on Tax Effect Accounting”(ASBJ Guidance No. 28, February 16, 2018).

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Financial Section

3. Significant Accounting Estimates(1) Allowance for doubtful accounts
The Group has receivables in Japan and overseas, including accounts receivables
related to its contracts with customers which are recognized in accordance with thepercentage-of-completion method (“PoC”) of ¥17,434 million ($157,476 thousand) as
of March 31, 2021.
Considering the progress of projects, domestic and overseas economic trends, the credit
status of creditors and the expected timing of collection, we classify receivables as a
general for which the credit risk has not been materialized or doubtful for which therisk, such as customer financing and delays in project, has materialized.
For general receivables, an allowance for doubtful accounts is recorded for each Group
company with an estimate of uncollectible receivables at the end of the fiscal year basedon the actual bad debt ratio against the receivables for the past three years. For doubtfulreceivables, an allowance for doubtful accounts is recorded with an estimate of
uncollectible receivables based on actual expected recoverability of the receivables
based on the facts and circumstances associated with the specific customer or project.
As of the end of the current consolidated fiscal year, the Group recorded an allowancefor doubtful accounts of ¥1,445 million (($13,057 thousand) (of which ¥1,366 million($12,339 thousand) is for accounts receivable under PoC)). In case the collectability ofreceivables is affected by any external factors that cannot be known by the Group as ofthe end of the current consolidated fiscal year, the amount may increase or decrease in
the consolidated financial statements for the following fiscal year and thereafter.
(2) Estimation of total costs used in the percentage-of-completion method
The Group applies PoC to manufacturing and installation contracts for machinery andequipment to meet customer specifications and records revenue based on the progressof the contracts. Revenues of ¥19,031 million ($171,901 thousand) were recorded in
the current fiscal year on contracts that were still in process as of March 31, 2021. The
progress is measured by comparing the costs incurred up to the end of the current
consolidated fiscal year to the estimated total costs.
Estimated total costs are based on a variety of information, including specifications,work details and actual costs incurred in similar contracts in the past.
Contracts are highly customized and based on customer requirements and specifications.
In addition, most of contracts are completed over long periods. As a result, the estimatedtotal costs may change due to the incurrence of manufacturing costs and other costs foradjustments to satisfy customer requirements that are not initially expected. In casethe actual results differ from the estimates due to unexpected future events, the Group’s
future income may be changed.
(3)

Recoverability of deferred tax assets
The Group evaluates the recoverability of deferred tax assets based on the future taxable
income before adjusting for temporary differences and deductions and also considers
the reversing schedule of temporary differences and tax loss carried forward based on
the future business plan including tax planning.
For the Company and its consolidated tax group in Japan, the future reasonableestimated period of taxable income before temporary differences and deductions is
assessed as one year in consideration of the business environment in which the Groupis located.
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Financial Section

As of the end of the current consolidated fiscal year, the Group records ¥582 million($5,257 thousand) as deferred tax assets related to corporate tax of the Company andits consolidated tax group in Japan. In case the future reasonable estimated period of
taxable income before temporary differences and deductions is changed, the deferred
tax assets may increase or decrease in the consolidated financial statements for thefollowing fiscal year and thereafter.
4.

Accounting Standard Issued but Not Yet Effective

Accounting Standards issued by March 31, 2021 but not yet effective are as follows;･“Accounting Standards for Revenue Recognition” (Accounting Standards Board of Japan(“ASBJ”) Statement No.29, March 31, 2020)･ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ
Guidance No.30, March 26, 2021
(1) Summary
The International Accounting Standards Board (“IASB”) and Financial AccountingStandards Board of the United States of America (“FASB”) jointly developed acomprehensive accounting standard for revenue recognition and issued “Revenue
from Contracts with Customers” (IFRS No.15, issued by IASB and Topic 606 issued
by FASB) in May 2014. Considering that IFRS No.15 is applicable from the fiscal
year beginning on and after January 1, 2018 and Topic 606 from the fiscal year
beginning after December 15, 2017, the ASBJ developed a comprehensive
accounting standard for revenue recognition and issued it along with implementation
guidance.
The ASBJ developed its standard for revenue recognition with the objective to alignthe Japan standards to the basic principles of IFRS No. 15 in order to allow
consistency and comparability with other international bases of financial statement
presentation. However, the ASBJ also gave consideration to alternative treatments
so as to not impair comparability across other practices in Japan(2) Date of application
The Company and its domestic subsidiaries expect to apply the new standard for the
fiscal year ending March 31, 2022.
(3) Effect of application
The effect of applying the “Accounting Standard for Revenue Recognition,” on the
consolidated financial statements is currently under assessment.

18

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Financial Section

5.

Changes in presentation Methods(Application of "Accounting Standards for Disclosure of Accounting Estimates")
The Company applied “Accounting Standard for Disclosure of Accounting Estimates”(ASBJ Statement No. 31, March 31, 2020) to the consolidated financial statements for theend of the consolidated fiscal year ended March 31, 2021, and provided notes to significant
accounting estimates in the consolidated financial statements. However, in line with thetransitional treatment stipulated in the proviso of Paragraph 11 of this accounting standard,details for the previous fiscal year are not provided in these notes.
6.

Additional Information(Performance-based stock compensation plan for the Company’s directors)
The Company has introduced a performance-based stock compensation plan (the “Plan”)
for directors of the Company (excluding outside directors) and executive officers who
have entered into an engagement agreement with the Company (hereinafter “Directors,etc.”).
(1) Transaction summary
The Company will set up a monetary trust. This trust will be used to acquire commonshares of the Company. A director shall be granted shares in each fiscal year. The stockbased compensation will be delivered to the Directors via the trust. Note that in principle
the Directors will receive delivery of said shares at the scheduled time every year.
(2) Shares remaining in the trust
The shares of the Company that remain in the trust are recorded as treasury stock under
net assets at book value (excluding associated costs). The book value and number ofshares of the treasury stock were ¥39 million ($358 thousand) and 11 thousand shares,in the previous consolidated fiscal year and ¥31 million and 9 thousand shares in thecurrent consolidated fiscal year.

20

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Financial Section

7.

Investments in Securities

At March 31, 2021 and 2020, marketable securities classified as other (available-for-sale)securities are summarized as follows:

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

March 312021
2020
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
sheet
Sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 22
–
–
¥ 22

¥ 39
–
–
¥ 39

¥ 16
–
–
¥ 16

¥ 13
–
–
¥ 13

¥ 18
–
–
¥ 18

March 31,2021
Amountrecorded in
Acquisition the balance
sheet
costs
Difference(Thousands of U.S. dollars)

¥5
–
–
¥5

$

202
–
–
$ 202

$ 349
–
–
$ 349

At March 31, 2021 and 2020, non-marketable securities carried at cost are summarized asfollows:
March 31,2020
2021
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,
2021
(Thousands of
U.S. dollars)

¥ 52
1

$ 471
5

For the year ended March 31, 2020, other securities sold are summarized as follows:

Equity securities
Debt securities
Other
Total

Year ended March 31
2020
Total gain on
sales
Sales proceeds(Millions of yen)
¥ 38
¥ 22
－
－
－
－
¥ 22
¥ 38

Total loss on
sales
－
－
－
－

For the year ended March 31, 2021, no other securities were sold.

20

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21

$ 147
–
–
$ 147

Financial Section

8.

Inventories

Inventories at March 31, 2021 and 2020 are summarized as follows:
March 31,2020
2021
(Millions of yen)Finished products
Raw materials
Work in process
Total

¥

910
198
1,684
¥ 2,792

¥

939
214
1,716
¥ 2,869

March 31,
2021
(Thousands of
U.S. dollars)$ 8,222
1,787
15,214$ 25,223

Inventories as of March 31, 2021 and 2020 were written down due to lower profitability andunrealized loss on inventories was charged to cost of sales in the amounts of ¥117 million($1,059 thousand) and ¥128 million respectively.
9.

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, 2021 and 2020 was 0.9%.
Long-term debt and lease obligations at March 31, 2021 and 2020 are summarized as follows:
March 31,2020
2021
(Millions of yen)Unsecured:
0.4% to 1.2% loans from banks due 2022
to 2026
Lease obligations
Total
Less current portionLong-term debt and lease obligations, net

March 31,
2021
(Thousands of
U.S. dollars)

5,800
65

5,800
74

52,389
583

5,865
17
¥ 5,848

5,874
1,215
¥ 4,659

52,972152$ 52,820

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2021 aresummarized as follows:
March 31, 2021
(Millions of(Thousands ofyen)
U.S. dollars)
2022
2023
2024
2025 and thereafter
Total

¥ 17
817
16
5,015
¥ 5,865

$ 152
7,375
141
45,304$ 52,972
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Financial Section

9.

Short-Term Bank Loans and Long-Term Debt (continued)

The Company entered into one-year contracts for commitment lines of credit with six banks
in the aggregated amount of approximately ¥6,000 million ($54,196thousand) to optimize
the free cash flow on August 3, 2020 The outstanding balance of bank borrowings underthese commitment lines at March 31, 2021 was zero.
10.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,
2021 and 2020 are as follows:Year ended March 31,
2021
2020
(Millions of yen)
¥ 2,494

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

¥ 2,729

Year ended
March 31,
2021
(Thousands of
U.S. dollars)$ 22,531

23

Financial Section

11.

Income Taxes and Deferred Tax Assets

The major components of deferred tax assets and liabilities as of March 31, 2021 and 2020are summarized as follows:
March 31,
2021
(Thousands of
U.S. dollars)

March 31,2020
2021
(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Reserve for repair and maintenanceEnterprise tax payable
Costs of construction for the percentage
of completionTax loss carried forward
Other
Gross deferred tax assets
Valuation allowances
for tax loss carryforwards
Valuation allowancefor temporary differences
Total deferred tax assets¥ 1,945378
9739¥ 1,962423
94
26$ 17,573
3,417
875
357

115
－
1,944
4,518

155
－
1,827
4,487

1,039
－
17,55640,817－－－(3,664)854(3,591)896(33,095)
7,722

(1)

0

(13)

(138)
(139)
¥ 715

(128)
(128)
¥ 768

(1,245)(1,258)$ 6,464

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

24

23

Financial Section

11.

Income Taxes and Deferred Tax Assets (continued)

Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries
consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in the aggregate,
resulted in a statutory rate of approximately 30.6% and 30.6% for the years ended March 31,
2021 and 2020. Income taxes of the foreign consolidated subsidiaries are generally based on
the tax rates applicable in their countries of incorporation.
The reconciliations between the effective tax rates reflected in the consolidated statements ofincome and the effective statutory tax rates for the years ended March 31, 2021 and 2020 are
summarized as follows:
March 31,

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

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

2021
30.6%

2020
30.6%

0.7
1.2
0.5
(1.5)

1.1
2.7
0.5
(1.5)

1.4
(5.1)
0.9

1.9
(5.9)
0.4

1.5
30.1%

0.0
29.8%

25

Financial Section

12.

Other Comprehensive Income

The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income for the years ended March 31, 2021 and 2020:
Year ended March 31,
2020
2021
(Millions of yen)
Valuation difference on other (availablefor-sale) securities:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income

Year ended
March 31,
2021
(Thousands of
U.S. dollars)

¥ 12

¥ (7)

$ 105

–
12
(1)
11

(22)
(29)
5
(24)

–
105
(11)
94

19

(22)

174

–
19
–
19

–
(22)
–
(22)

–
174
–
174

422

(102)

3,817

191
613
–
613

159
57
–
57

1,729
5,546
–
5,546

¥ 643

¥ 11

$ 5,814SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

26

25

Financial Section

13.

Information on Dividends

The Company paid cash dividends as follows:
Date of board
resolution
May 21,
2020

Class ofstock
Commonstock

Total dividend
amountDividends
per share¥ 487 million¥110.00

Recorddate
March 31,2020

Effective
date
June 8,2020

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 20,2021
14.

Class ofstock
Commonstock

Total dividend
amount¥ 487 million

Source ofdividends
Retainedearnings

Dividends
per share¥110.00

Recorddate
March 31,2021

Effective
date
June 8,2021

Retirement Benefits

The Company and its domestic consolidated subsidiaries have defined benefit pension plans
and lump-sum retirement payment plans which cover substantially all employees who retire
from the Companies. Eligible employees may also receive additional payments under theplans.
Certain consolidated subsidiaries use a simplified method for calculating retirement benefit
expenses and liabilities.
1

Defined benefit plans(1) The changes in the retirement benefit obligation for the years ended March 31, 2021 and2020 are as follows:Year ended March 31,
2020
2021
(Millions of yen)
Balance at the beginning of the year
Service costs
Interest costs
Actuarial (gain) loss
Retirement benefit paid
Balance at the end of the year

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

¥ 9,488
359
32
(145)
(728)
¥ 9,006¥ 9,416
364
32
(36)
(288)
¥ 9,488

Year ended
March 31,
2021
(Thousandsof U.S.
dollars)$ 85,709
3,246
293(1,315)(6,583)$ 81,350

27

Financial Section

14.

Retirement Benefits (continued)(2) The changes in plan assets for the years ended March 31, 2021 and 2020 are as follows:Year ended March 31,
2020
2021
(Millions of yen)
Balance at the beginning of the year
Expected return on plan assets
Actuarial (gain) loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

¥ 3,295
66
277
345
(420)
¥ 3,563¥ 3,214
64
(138)
350
(195)
¥ 3,295

Year ended
March 31,
2021
(Thousandsof U.S.
dollars)$ 29,760
595
2,502
3,119
(3,791)$ 32,185(3) The changes in net defined benefit liability that are calculated by the simplified method
for the years ended March 31, 2021 and 2020 are as follows:Year ended March 31,
2020
2021
(Millions of yen)
Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

¥ 1,258
227
(135)
(1)
¥ 1,349¥ 1,147
208
(92)
(5)
¥ 1,258

Year ended
March 31,
2021
(Thousandsof U.S.
dollars)$ 11,363
2,055(1,226)(6)$ 12,186

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

28

27

Financial Section

14.

Retirement Benefits (continued)(4) The following table sets forth the funded status of the plans and the amounts recognizedin the consolidated balance sheet as of March 31, 2021 and 2020 for the Group’s defined
benefit plans:¥ 5,890(3,563)
2,327
4,464

¥ 6,142(3,294)
2,848
4,604

March 31,
2021
(Thousandsof U.S.
dollars)$ 53,208,(32,186)
21,02240,329

6,792

7,452

61,351

6,792

7,452

61,351¥ 6,792¥ 7,452$ 61,351

March 31,2020
2021
(Millions of yen)
Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net liability for retirement benefits in thebalance sheet
Liability for retirement benefits
Net liability for retirement benefits in thebalance sheet
Notes:Net defined benefit liability calculated by the simplified method is included.

(5) The components of retirement benefit expense for the years ended March 31, 2021 and2020 are as follows:

¥ 359
32
(66)
208
(17)

¥ 364
32
(64)
176
(17)

March 31,
2021
(Thousandsof U.S.
dollars)$ 3,246
293
(595)
1,882
(153)

228

208

2,055

¥ 744

¥ 699

$ 6,728

March 31,2020
2021
(Millions of yen)
Service costs
Interest costs
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expense calculated by thesimplified method
Retirement benefit expense for defined
benefit plans

28

SHIBAURA MECHATRONICS CORPORATION
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29

Financial Section

14.

Retirement Benefits (continued)(6) The components of remeasurements of defined benefit plans included in othercomprehensive income (before tax effect) for the years ended March 31, 2021 and 2020 are
as follows:
March 31,2020
2021
(Millions of yen)
Prior service cost
Actuarial gains
Total

¥ 17
(630)
¥ (613)¥ 17(74)¥ (57)March 31,
2021
(Thousandsof U.S.
dollars)$ 153(5,699)$ (5,546)(7) The components of remeasurements of defined benefit plans included in accumulated
other comprehensive income (before tax effect) as of March 31, 2021 and 2020 are as
follows:
March 31,2020
2021
(Millions of yen)
Unrecognized prior service cost
Unrecognized actuarial losses
Total¥ (14)439¥ 425¥ (31)
1,069¥ 1,038

March 31,
2021
(Thousandsof U.S.
dollars)$ (127)
3,961$ 3,834(8) The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2021 and 2020 are as follows:

Bonds
SharesCash and deposits
General accounts
Other
Total

March 31,
2020
2021
15.8%
16.9%
24.8%
18.8%
0.0%
1.3%
40.0%
43.9%
19.4%
19.1%
100.0%
100.0%SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

30

29

Financial Section

14.

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

Discount rateLong-term expected return on plan assets
Salary increase rate
Lump-sum election rate
2

March 31,2021
2020
0.31－0.36%
0.31－0.36%
2.0%
2.0%
3.9%
4.2%
82.0%
70.0%

Defined contribution plans

The amount required to be contributed to the defined contribution plans is ¥17 million ($159
thousand) for the year ended March 31, 2021
15.

Contingent Liabilities

The Company had the following contingent liability as of March 31, 2021 and 2020 :March 31,2020
2021
(Millions of yen)
Guarantee for housing loans of employees

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

¥2

¥3March 31,
2021
(Thousands of
U.S. dollars)
$ 22

31

Financial Section

16.

Derivatives and Hedging Activities

The Company has entered into interest-rate swap contracts to manage its exposure to interestrate risk on long-term debt. As a matter of policy, the Company does not enter into derivativetransactions for trading purposes. The Company does not anticipate nonperformance by anyof the counterparties to the above transactions, all of whom are domestic financial institutions
with high credit ratings.
In accordance with the Company’s policy, derivative transactions are entered into under thedecision-making rules approved by the Management Strategy Committee of the Company.
The Treasury Division with the responsibility to enter into such contracts monitors andcontrols the inherent risk and performance on a daily basis and reports these to managementof the Company, if and when necessary.
In accordance with the special hedge accounting under the Accounting Standard for Financial
Instruments, the Company does not record certain interest-rate swap arrangements at fairvalue but charges or credits the net cash flows from the swap arrangements to the interest
arising from the respective hedged borrowings.
At March 31, 2021 and 2020, the fair value information for derivatives, for which hedge
accounting was applied, was not presented since all derivatives were accounted for using thespecial hedge accounting and accordingly their fair value was recorded as part of the fairvalue of the hedged borrowings.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

32

31

Financial Section

16.

Derivatives and Hedging Activities (continued)

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

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

Total
To buy foreign
currencies
U.S. Dollars
Total

¥ 218
¥ 218

¥ (54)¥ (54)¥ (54)¥ (54)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

Total
To buy foreign
currencies
U.S. Dollars
Total

32

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

As of March 31, 2020
Contract
amountover 1 year Fair value(Millions of yen)

Unrealizedgain(loss)¥ 2,689¥ 2,689

¥ 309
¥ 309

¥ (10)¥ (10)¥ (10)¥ (10)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

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

Unrealizedgain(loss)¥ 1,259¥ 1,259

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

As of March 31, 2021
Contract
amountover 1 year Fair value(Millions of yen)

As of March 31, 2021
Contract
Unrealized
amountgain(loss)
over 1 year Fair value(Thousands of U.S. dollars)$ 11,372$ 11,372$ 1,969$ 1,969$ (485)$ (485)$ (485)$ (485)

$－
$－

$－
$－

$－
$－

$－
$－

33

Financial Section

16.

Derivatives and Hedging Activities (continued)

Notes:
Fair value is principally based on obtaining quotes from counterparty financial institutions.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
As of March 31, 2021
Type of derivativetransaction
Interest rate swap transaction
Pay fixed/Receive variable

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)
Long-term debt

¥ 2,500¥ 2,500¥－

As of March 31, 2020
Type of derivativetransaction
Interest rate swap transaction
Pay fixed/Receive variable

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)
Long-term debt

¥ 3,200¥ 2,500¥－

As of March 31, 2021
Type of derivativetransaction
Interest rate swap transaction
Pay fixed/Receive variable

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Thousands of U.S. dollars)Long-term debt

$ 22,582$ 22,582$－

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

34

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33

Financial Section

17.

Financial Instruments① Matters relating to financial instruments(1)

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

(2)

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

(3)

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

34

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35

Financial Section

17.

Financial Instruments (continued)② Matters concerning the fair value of financial instruments, etc.
Amounts as of March 31, 2021 and 2020 on the accompanying consolidated balance sheet
fair value and the difference between them are as follows.
March 31, 2021
Carrying value

Fair value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade¥ 19,601¥ 19,601¥ －22,53822,538－(3) Electronically recorded monetary claims

602

602

－

(4) Investment securities - Other securities

39

39

－

(5) Notes and accounts payable, trade(10,684)(10,684)－(6) Short-term bank loans(5,050)(5,050)

－

－

－

－

(8) Long-term debt

(5,800)(5,757)43(9) Other long-term liabilities(3,078)(2,809)(10) Derivative transactions

(60)

(60)

269
－

(7) Current portion of long-term debt

March 31, 2020
Carrying value

Fair value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade¥ 12,725¥ 12,725¥ －27,31827,318－(3) Electronically recorded monetary claims

497

497

－

(4) Investment securities - Other securities

27

27

－

(5) Notes and accounts payable, trade(11,107)(11,107)－(6) Short-term bank loans(5,100)(5,100)－(7) Current portion of long-term debt

(1,200)(1,200)－(8) Long-term debt

(4,600)(4,601)(1)(9) Other long-term liabilities(3,078)(2,900)(10) Derivative transactions

(13)

(13)

178
－

March 31, 2021
Carrying value

Fair value

Difference(Thousands of U.S. dollars)(1) Cash and bank deposits(2) Notes and accounts receivable, trade(3) Electronically recorded monetary claims(4) Investment securities - Other securities$$ 177,046$ 177,046

203,578

203,578

－

5,441

5,441

－

－

354

354

－

(5) Notes and accounts payable, trade(96,509)(96,509)－(6) Short-term bank loans(45,615)(45,615)

－

－

－

－

(7) Current portion of long-term debt
(8) Long-term debt

(52,389)(52,003)386(9) Other long-term liabilities(27,804)(25,371)2,433(10) Derivative transactions

(538)

(538)

－

36

SHIBAURA MECHATRONICS CORPORATION
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35

Financial Section

17.

Financial Instruments (continued)(*) Liabilities are presented in parentheses in the above table.
Notes:a)Method of measurement of fair value of financial instruments and matters concerning
securities and derivative transactions(1) Cash and bank deposits, (2) Notes and accounts receivable, trade, and(3) Electronically recorded monetary claims
As these instruments are settled in a short period of time, their fair value
approximates carrying value.
(4) Investment securities - Other securities
The fair value of equity securities reflects quoted stock exchange pricing at thebalance sheet date.
(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, their fair value approximatescarrying value.
.
(8) Long-term debt
As for the fair value of long-term debt, future cash flows from payments ofprincipal and interest are discounted to present value using the interest rateapplicable to a similar new loan. For long-term debt with floating interest rates
subject to the special hedge accounting hedged by designated interest rate swaps,
future cash flows from payments for principal and interest, combined with cash
flows from the designated interest rate swaps, are discounted to present value using
the interest rate applicable to a similar new loan.
(9) Other long-term liabilities
Other long-term liabilities consist of long-term guarantee deposits. The fair valueof other long-term liabilities is determined by discounting future cash flows to thepresent value using a risk free rate.
(10) Derivative transactions
See Note 16 for details on derivative transactions.

b) As non-marketable equity securities of ¥52 million ($471 thousand) do not have a quoted
market price and their future cash flows cannot be estimated, the Group considers it notreasonably possible to determine their fair value. Hence, the items are not included in“(4) Investment securities - Other securities.”

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

37

Financial Section

17.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥19,601 million ($177,046 thousand), Notes and accounts
receivable, trade of ¥22,538 million ($203,578 thousand), Electronically recordedmonetary claims of ¥602 million ($5,441 thousand) are due within one year subsequent
to March 31, 2021 and Cash and bank deposits of ¥12,725 million, Notes and accounts
receivable, trade of ¥27,318 million, Electronically recorded monetary claims of ¥497
million are due within one year subsequent to March 31, 2020.

18.

Investment in Rental Property

The Company owns an office building (including land) for rent by third parties in Yokohama
city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Fair value
March 31,2021

Rental property

Carrying amountMarch 31,
Decrease
2021(Millions of yen)
¥ 5,458¥ 189¥ 5,269

Fair value
March 31,2020

Rental property

Carrying amount
April 1,March 31,
Decrease
2019
2020(Millions of yen)
¥ 5,579¥ 121¥ 5,458

April 1,2020

¥ 7,937¥ 7,816

Fair value
Carrying amountMarch 31,
March 31,
Decrease
2021
2021(Thousands of U.S. dollars)$ 49,301$ 1,709$ 47,592$ 71,690

April 1,
2020
Rental property

Notes:a)

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

b)

Decrease represents depreciation during the year.

c)

Fair value at March 31, 2021 and 2020 is internally determined by the Company basedon the real-estate appraisal standard.

38

SHIBAURA MECHATRONICS CORPORATION
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37

Financial Section

18.

Investment in Rental Property (continued)

Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2021
Rental income Rental costs
Difference(Millions of yen)
¥ 1,528¥ 1,073¥ 455

Rental property

Year ended March 31, 2020
Rental income Rental costs
Difference(Millions of yen)
¥ 1,528¥ 1,075¥ 453

Rental property

Year ended March 31, 2021
Rental income Rental costs
Difference(Thousands of U.S. dollars)$ 13,804$ 9,695$ 4,109

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

38

SHIBAURA MECHATRONICS CORPORATION
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39

Financial Section

19.

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

40

39

Financial Section

19. 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, 2021 and 2020 is summarized as follows:Year ended March 31, 2021
Fine
mechatronics
Sales
Sales to external customers
Intersegment sales or transfers

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
¥ 29,64441¥ 11,286217¥ 1,9540¥ 1,910–¥ 44,794
258

Total sales
Segment income

29,685
1,993

11,503
792

1,954
8

1,910
570

45,052
3,363

Segment assets

26,470

8,044

1,685

6,041

42,240

908
5
5

392
0
0

59
0
7

308
–
–

1,667
5
12

923

252

19

48

1,242

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

Year ended March 31, 2020
Finemechatronics
Sales
Sales to external customers
Intersegment sales or transfers

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
¥ 27,77940¥ 15,197
210¥ 2,2510¥ 1,914–¥ 47,141
250

Total sales
Segment income

27,8191,467

15,407
1,404

2,251
3

1,914
562

47,391
3,436

Segment assets

29,51010,828

1,727

6,206

48,271

618
7
5

430
0
1

41
0
6

300
–
–

1,389
7
12

1,421

411

134

265

2,231

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

40

Mechatronics
systems

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

41

Financial Section

19.

Segment Information (continued)
Year ended March 31, 2021
Fine
mechatronics

Sales
Sales to external customers
Intersegment sales or transfers

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)$ 267,764
368$ 101,944
1,959$ 17,6491$ 17,257–$ 404,614
2,328

Total sales
Segment income

268,132
18,002103,903
7,156

17,65074

17,257
5,142

406,942
30,374

Segment assets

239,096

72,65915,22254,561

381,538

8,207
44
45

3,538
0
2

535
0
64

2,780
–
–

15,060
44
111

8,336

2,276

175

429

11,216

Other
Depreciation and amortization
Interest income
Interest expense
Increase in tangible and intangible
fixed assets(4) Reconciliations between the reporting segment total and the amounts presented in the
consolidated financial statements.
a) Segment income
Year ended March 31,
2021
2020
(Millions of(Millions of
yen)
yen)
Reporting segments¥ 3,363

Unallocated amounts
Other
Consolidated

Year ended
March 31,
2021
(Thousands of
U.S. dollars)¥ 3,436$ 30,374

(447)

(408)

(4,035)

(96)

(259)

(867)

¥ 2,820¥ 2,769$ 25,472

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

42

41

Financial Section

19. Segment Information (continued)b) Segment assets
As of March 31,
2021
2020
(Millions of(Millions of
yen)
yen)
Reporting segments¥ 42,240

Unallocated amounts
Consolidated

As ofMarch 31,
2021
(Thousands of
U.S. dollars)¥ 48,271$ 381,538

16,0549,150

145,016¥ 58,294¥ 57,421$ 526,554

Notes:
Included in the “Unallocated amounts” above are unallocable assets which primarily
consist of surplus funds (cash and bank deposits) and investment funds (investment
securities) owned by the Company and deferred tax assets.
c) OtherYear ended March 31, 2021

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

Reportingsegments

Adjustment
amount¥ 1,667
5
12(Millions of yen)
¥
–
0
82

1,242

Consolidated¥ 1,667
5
94

–

1,242

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 15,060$–$ 15,060
44
1
45
111
737
848
11,216–

11,216

Year ended March 31, 2020

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

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

Reportingsegments

Adjustment
amountConsolidated¥ 1,389
7
12(Millions of yen)
¥
–
0
108

¥ 1,389
7
120

2,231

–

2,231

43

Financial Section

19.

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, 2021
Japan

¥ 14,255

Northeastern Asia
Other
(Millions of yen)
¥ 30,041

¥ 498

Total

¥ 44,794

Year ended March 31, 2020
Japan

¥ 17,326

Northeastern Asia
Other
(Millions of yen)
¥ 28,394¥ 1,421

Total¥ 47,141

Year ended March 31, 2021
Japan

Northeastern Asia

Other

Total

(Thousands of U.S. dollars)$ 128,760$ 271,352$ 4,502$ 404,614

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
As of March 31, 2021
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 10,753¥ 8¥ 10,761

As of March 31, 2020
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 11,094¥ 10¥ 11,104

As of March 31, 2021
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 97,124$ 76$ 97,200SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

44

43

Financial Section

19. Segment Information (continued)c) Information by main customer
Year ended March 31, 2021: Not applicableYear ended March 31, 2020:Not applicable③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2021: Not applicableYear ended March 31, 2020: Not applicable④ Depreciation and remaining balance of goodwill by reporting segment
Year ended and as of March 31, 2021: Not applicableYear ended and as of March 31, 2020: Not applicable⑤ Gain on negative goodwill by reporting segment
Year ended March 31, 2021: Not applicableYear ended March 31, 2020: Not applicable

44

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45

Financial Section

20. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents as of March 31, 2021 and 2020 between theamounts shown in the consolidated balance sheets and the consolidated statements of cash
flows are as follows:
As of March 31,
2021
2020
(Millions of(Millions of
yen)
yen)
Cash and time deposits¥ 19,601

As of
March 31,
2021
(Thousands of
U.S. dollars)¥ 12,725$ 177,046

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

21.

(15)

(16)

(133)

¥ 19,586¥ 12,709$ 176,913

Non-cash Transactions

Lease assets and lease obligations recorded relating to lease transactions were ¥6 million and¥6 million, respectively for the year ended March 31, 2021. In addition, in the fiscal year
ended March 31, 2020, it was 55 million yen and 55 million yen, respective.
22.

Selling, General and Administrative Expenses

For the years ended March 31, 2021 and 2020, major selling, general and administrative
expenses are summarized as follows:Year ended March 31,
2021
2020
(Millions of yen)
Packing and delivery expenses
Sales commissions
Advertising expenses
Employees’ salaries and allowances
Provision for director’s bonuses
Provision of allowance for doubtful
accounts
Retirement benefit expenses
Provision for directors’ retirement
benefits
Depreciation
Rent expenses
Research and development expenses

Year ended
March 31,
2021
(Thousands of
U.S. dollars)

¥ 79
391
9
4,918
38

¥ 88
419
13
5,084
37

$ 716
3,531
80
44,423
343

369
359

875
285

3,333
3,244

1
1,145
88
2,493

5
883
92
2,725

12
10,343790
22,523SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

46

45

Financial Section

23. Related Party Transactions
Year ended and as of March 31, 2021: Not applicableYear ended and as of March 31, 2020:Not applicable
24.

Per Share Information

Basic net income per share is computed based on the net income available for distribution toshareholders 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 ofshares of common stock outstanding during each year, assuming full dilution of common
stock equivalents. Net assets per share are computed based on the weighted-average numberof shares of common stock outstanding at each balance sheet date.
As of March 31,
2020
2021
(Yen)
Net income:– Basic
Net assets¥ 446.18
4,949.41¥ 440.73
4,468.29

As ofMarch 31,
2021
(U.S. dollars)$ 4.0344.71

Notes:The information regarding diluted net income per share for the years ended March 31, 2021
and 2020 is omitted because there was no stock with dilutive effect.
The weighted average number of shares of common stock outstanding excludes treasury
stock shares held by the Company. Treasury stock shares held in trust as a performance-based
stock compensation plan for the Company’s directors and executive officers, are included inthose treasury stock shares for the years ended March 31, 2021 and 2020.
The basis of calculating net income per share were as follows:
As ofMarch 31,
2021
(Thousands of
U.S. dollars)
1,944$ 17,793

As of March 31,
2021
2020
(Millions of yen)
Net income
Net income attributable to non-controllinginterests
Net income attributable to owners of parent
Weighted average number of shares ofcommon stock outstanding

46

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

¥

1,970

¥

1,970
1,944
(Thousand shares)
4,414

17,793

4,411

47

Financial Section

25.

Significant Subsequent Events

At the Board of Directors meeting on May 13, 2021, the Company resolved to demolish anaged building in the Yokohama office.
As a result, an extraordinary loss will be recorded in the first quarter of the consolidated fiscal
year ending March 31, 2022 (April 1, 2021 to June 30, 2021).
Due to the demolition of the aged building in the Yokohama office, the demolition cost of
the building of ¥400 million ($3,613 thousand) and the impairment loss of ¥210 million will
be recorded as an extraordinary loss (business structure improvement expenses).
Asset content
Asset name and location

Net carrying value(Millions of yen)

Yokohama Office Building No.1 Building
2-5-1Kasama,Sakae-ku,Yokohama-shi,Kanagawa¥ 210(Thousands of
U.S. dollars)$1,89748

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53

Directors, Vice Presidents and Auditors
As of June 24, 2021

Directors and Vice Presidents
Keigo Imamura

Hisashi Shindo

Representative Director

Senior Vice President

President and Chief Executive Officer

Deputy Executive General Manager of Mechatronics System
Division

Yoshitsugu Ogawa
Director

Kazuhiko Okui

Executive Vice President

Advanced Vice President

Executive General Manager of Mechatronics System Division

Executive General Manager of General Affairs & Human		

Resources Division

Kenichi Ikeda
Director

Kazutoshi Horiuchi

Executive Vice President and Chief Financial Officer

Vice President

Executive General Manager of Corporate Management Division

Deputy Executive General Manager of Fine Mechatronics
Division

Yoshiaki Kurokawa
Director

Tomomi Harano

Senior Vice President

Vice President

Executive General Manager of Fine Mechatronics Division

Deputy Executive General Manager of Fine Mechatronics
Division

Tomoko Inaba
Outside Director

Shigeru Sakata
Vice President

Yuichiro Takada
Outside Director

Deputy Executive General Manager of Mechatronics System
Division

Shinichi Ogimoto
Vice President
Executive General Manager of Production & Procurement
Division

Auditors
Yasuhiko Yamato
AuditorKazuya Kaneko
Outside Auditor

54

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2021

Kazumasa Uchida
Outside Auditor

Hiroyuki Matsumoto
Outside Auditor

Investor Information
As of March 31, 2021

Date Established

October 12, 1939

Capital6,762Million-Yen

Number of Employees

Consolidated

Common Stock: 1,224

Authorized			: 10,000,000 shares

Issued and outstanding : 5,192,619 shares

Number of Shareholders

4,783

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited

Independent Auditor

PricewaterhouseCoopers Aarata LLC

Headquarters

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

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

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

High (yen)Low (yen)

2021
6,050
2,050

2020
4,655
2,052

2019
4,350(484)3,040(334)

2018
528
240

2017
317
179

Note : With an effective date of October 1, 2018, the Company conducted a stock consolidation at a ratio of one share for every 10 shares of common stock. Stock prices
for March 2019 list the highest and lowest stock prices recorded after the stock consolidation, and figures in parentheses indicate the highest and lowest stock prices
prior to the share consolidation.

Principal Shareholders

Toshiba Corporation
The Master Trust Bank of Japan, Limited (trust accounts)
Shin-Etsu Engineering Co., Ltd.
NuFlare Technology, Inc.

Number of shares hold

Percentage of total shares outstanding(thousand shares)

(%)

519
281
259
259

11.73
6.35
5.86
5.86

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202155

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

SKB0323B 2109
EDC210040