ANNUAL REPORT 2017
Year ended March 31, 2017

ANNUAL REPORT 2017
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.
The 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, to theprovision 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 therefore

Directors, Vice Presidents and Auditors・ ・・・・・・・・・・・44

Investor Information・ ・・・・・・・・・・・・・・・・・・45

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

Financial Highlights
Year ended
March 31,2017

Year ended March 31,
2017

2016

2015

2014

2013

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

(Millions of yen)

Consolidated

Net sales￥ 42,737		 ￥ 45,550		 ￥ 43,799		 ￥ 35,165		 ￥ 30,400
Orders received		 42,651
45,077 		45,300 		40,000 		41,300
Operating income 		 1,500 		 1,292 		 1,022 		
736 		
60
Net income (loss)		
931 		
743 		
697 		 387			 (1,416)$ 380,935
			 380,168
			 13,369
			
8,298

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,566		1,222		2,210		

1,411		1,536		2,065		

1,271		797		1,856		

1,359		1,195		1,726		

1,424
575
1,805

			 13,961
			 10,893
			 19,701

Total assets		 53,721		

56,253		

54,720		

47,602		

50,767

			 478,842

Net assets		 16,533		

15,675		

16,058		

15,064		

15,697

			 147,367(yen)(U.S. dollars)￥ 18.84		 ￥ 15.04		 ￥ 14.11		 ￥Net income (loss) per share

Number of employees		

1,202		

1,177		

1,174		

7.83		 ￥ (28.66 )

$

0.17

1,210		

		

1,202

1,285

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of 112.19 = U.S.$1.00, as of March 31, 2017.

Net Sales(¥Billions)

43.8

45.5

42.7

Orders Received

45.3
41.3

(¥Billions)

45.1

40.0

Operating Income(¥Billions)

Net Income (loss)(¥Billions)

42.7

35.2
30.4
0.7

1.0

1.3

1.5
0.4

0.1

0.7

0.7

'15

'16

0.9

-1.4
'13

'14

'15

'16

'17

'13

'14

'15

'16

'17

'13

'14

'15

'16

'17

'13

'14

'17

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201701

To Our Shareholders

We will accelerate business structure reform and strengthen ourmanagement organization.
In Shibaura Mechatronics Group’s business environment in
FY16, televisions and smartphones provided the driving force
in the FPD business. There was active capital expenditure in
investments for large-sized panels, mainly in China, and capital
expenditure on small- and medium-sized panels for organic
EL (OLED) also increased. The semiconductor industry saw
increased investment in cutting-edge product areas, against
the backdrop of the increasing functionality of smartphones
and growth in demand for data center servers, etc.
In this environment, our business results for fiscal 2016 wereas follows.
Orders received decreased for the full year, due to changes
in capital investment plans by customers and the impact of
yen appreciation in the first half, though they recovered in thesecond half to reach 42,651 million yen.
Reflecting the fall off in orders received in the first half, net
sales for the full fiscal year declined to 42,737 million yen.
Operating income increased on improved earnings bydomestic and overseas Group companies, due to the
expansion of the service business, along with steady progressin structural reforms and a shift to highly profitable productlines. The final result was 1,500 million yen, an increase overthe previous year.

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

In the FY17 business environment, capital expenditure outlays
in both the FPD industry and semiconductor industry are
expected to remain steady.
Televisions and smartphones will continue to be the driving
force in the FPD industry, and we forecast active capital
expenditure, primarily in China, accompanying continued
progress toward higher definition and larger televisions. In
small- and medium-sized panels, capital expenditure on OLED
is also expected to see increases.
In the semiconductor industry, we expect capital expenditurein cutting-edge fields to remain steady. On top of this, we
also anticipate expanded application of vacuum applicationequipment in the automotive market, and also in the IoT
market.
As we move forward, the Group will further accelerate thebusiness restructuring that we are already pursuing, and we will
also continue moves to strengthen our management structure.

Shigeki Fujita
Representative Director
President and Chief Executive Officer

Financial Review
Results Summary

In vacuum application equipment, both orders and net sales

In FY2016 Shibaura Mechatronics recorded orders received

automotive-related equipment.

of 42,651 million yen (a year-on-year fall of 5.4%), net sales of

For the division as a whole, both orders received and sales

42,737 million yen (a year-on-year fall of 6.2%), operating income

declined, due to the impact of lower orders during the firstof 1,500 million yen (a year-on-year increase of 16.1%), ordinary

half.

increased, due to increased demand for IoT-related andincome of 1,132 million yen (a year-on-year fall of 3.5%), and net
income of 931 million yen (a year-on-year increase of 25.3%).
The Results for each business segment were as follows:

1. Fine Mechatronics Segment
Net sales were 26,355 million yen (a decrease of 0.7%
compared with the previous fiscal year), and segment profit
was 345 million yen (compared with a segment loss of 221
million yen in the previous year), due to the shift to highly
profitable product lines.
In the FPD front-end processes, orders for large-sizedpanels were robust, but overall orders received decreased
for the full year, on declines in orders for small- andmedium-sized panels in the first half. Net sales declined inline with the fall-off in orders.
In equipment for semiconductor front-end processes, bothorders and net sales increased, mainly for equipment for
use in cutting-edge product areas.
The division as a whole saw both orders and net sales
decline as a result of the fall-off in orders during the first half.

3. Vending Machines and Systems Segment
Net sales were 2,044 million yen (an increase of 24.2%
compared with the previous year) and segment profit was
83 million yen (compared with a segment loss of 55 million
yen in the previous year).
Due to the commercialization of a new type of touch panel
ticket vending machines, both net sales and segment profit
increased, mainly in ticket vending machines.
4. Real Estate Leasing Segment
Real estate rental income increased as anticipated, and thesegment recorded net sales of 2,072 million yen (a yearon-year increase of 2.0%) and income of 597 million yen (ayear-on-year increase of 18.5%).

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 2,210 million yen (including

2. Mechatronics Systems Segment
Net sales were 12,266 million yen (a decrease of 20.0%
compared with the previous year) and segment profit was
863 million yen (a decrease of 39.4% compared with theprevious year).
In FPD back-end processes, orders declined in the first
half, but in the second half orders for large- and small- andmedium-sized panels increased, resulting in an increase inorders for the full year. Net sales declined due to the impactof lower orders during the first half.
In equipment for semiconductor back-end processes,
orders declined in the first half and recovered in the second
half on demand for smartphone cameras, etc., but orders
received for the full year declined. Net sales declined due tothe impact of lower orders during the first half.

development costs of 442 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 by strengthening our relations
and collaboration with Toshiba Corporation’s Research andDevelopment Center and Manufacturing Engineering Center,
and with Toshiba Memory Corporation.
Research and development expenses and research results foreach segment are as follows:

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201703

Financial Review

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 927 million yen.
In LCD panel production equipment we have worked on thedevelopment of wet process equipment, PI inkjet coaters
and inkjet coaters for overcoat suitable for high-definition
small- and medium-sized panels.
In semiconductor equipment we have worked on thedevelopment of wet cleaning equipment that can be usedin next generation devices, single wafer wet processor, wetcleaning equipment for masks and dry etching equipment
for masks.

Total liabilities decreased by 3,389 million yen year-on-year,

2. Mechatronics Systems Segment
R&D expenses for the segment totaled 685 million yen.
In liquid crystal and OLED module assembly equipment, we
worked on the development of OLB equipment for smalland medium-sized panels, and on OLED vacuum bonding
equipment.
In semiconductor assembly equipment we have workedon the development of high speed, high precision bonding
equipment. In the field of vacuum equipment we have beenworking on the development of sputtering equipment for
optical thin films and for semiconductor backside contacts.

Cash Flows

to 37,188 million yen. This was mainly due to a 2,358 million
yen decrease in trade notes and accounts payable, advances
received of 673 million yen, and a 440 million yen decrease in
short-term borrowings.
Net assets increased 858 million yen from the end of theprevious fiscal year to 16,533 million yen. This was mainly due
to an increase in retained earnings, due to recording 930 million
yen in net income attributable to the shareholders of the parent
company.

The balance of cash and cash equivalents at the end of thecurrent fiscal year was 11,479 million yen, an increase of 4,467
million yen compared to the end of the last fiscal year.
Net cash provided by operating activities was 5,790 million
yen (an increase of 3,645 million yen compared to the previous
fiscal year). This was mainly due to posting income before
income taxes and minority interests, and an increase in cash
due to a decrease in notes and accounts receivable.
Net cash from investment activities fell by 538 million yen
during the fiscal year (against a fall of 394 million in the previous

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 154 million yen.
In the ticket vending machine field, we promoted
development of large-screen touch panel ticket vending
machines. In addition, as part of our advance into a newarea of business, we promoted development of card
readers.

fiscal year). This was mainly due to a decrease in cash resulting
from the acquisition of fixed assets.
Furthermore, free cash flow combined with cash flow fromoperating activities and cash flow from investing activities
increased by 5,251 million yen (an increase of 3,250 million yen
compared to the previous fiscal year).
Net cash flow due to financing activities decreased by 675
million yen (last year saw a 369 million yen decrease). This ismainly due to a decrease in funds following repayment of debt

Financial Condition
Total assets at the end of the fiscal year were 2,531 million yen
lower than at the end of the previous fiscal year, and stood at
53,721 million yen. This was mainly due to an increase in cash
and deposits of 4,466 million yen. Trade accounts receivable
were 5,498 million yen, other accounts receivable were 398
million yen, inventory stood at 365 million yen, and fixed assets
decreased by 325 million yen.

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017and payment of dividends.

FINANCIAL SECTION
ANNUAL REPORT 2017 Year ended March 31, 2017

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 ・・・・・・・・・・・・・ 42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201705

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2016
2017
(Millions of yen)March 31,2017
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Note 14)
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¥ 11,494
23,834
623
(11)
3,587
537
926
601
41,591¥ 7,027
29,492
673
(23)
3,952
574
1,325
778
43,798$ 102,450
212,446
5,555(97)
31,973
4,783
8,255
5,358
370,723

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

11928,505
5,151
355
624
34,754(23,964)
10,790119
28,354
4,974
356
335
34,138(22,846)
11,292

1,064
254,080
45,9153,160
5,562
309,781(213,602)
96,179

122
247
972
(1)
1,340

113
156
896
(2)
1,163

1,084
2,205
8,665
(14)
11,940¥ 53,721¥ 56,253$ 478,842

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

3

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

Financial Section

March 31,2017
2016
(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade (Note 14)
Short-term bank loans (Notes 6 and 14)
Current portion of long-term debt (Notes 6 and 14)
Current portion of lease obligations (Note 6)
Advances received
Accrued expenses
Accrued income taxes (Note 8)
Provision for directors’ bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6 and 14)
Net defined benefit liability (Note 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 guarantee deposits (Note 14)
Total long-term liabilities
Total liabilities

March 31,2017
(Thousands of
U.S. dollars)(Note 1)

¥ 9,972
5,100
800
37
605
2,909
305
33
854
20,615¥ 12,330
5,540
－
36
1,279
3,252
243
29
564
23,273$ 88,887
45,459
7,131
335
5,391
25,927
2,716
293
7,612
183,751

5,700
7,404
25
2
9
320
35
3,078
16,57337,188

6,500
7,292
56
5
8
333
34
3,077
17,30540,57850,80765,992
221
21
83
2,848
315
27,437
147,724
331,475

6,762
9,108
3,715
(1,723)
17,862

6,762
9,108
2,982
(1,723)
17,12960,26881,182
33,115(15,359)
159,20628
286(1,643)(1,329)16,533¥ 53,721

22
342(1,818)(1,454)
15,675¥ 56,253

254
2,552(14,645)(11,839)
147,367$ 478,842

Contingent liabilities (Note 12)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2017and 2016
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.
4

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201707

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2016
2017
(Millions of yen)

Net sales
Cost of sales (Notes 5,7 and 15)
Gross profit

Year ended
March 31,2017
(Thousands of
U.S. dollars)(Note 1)

¥ 42,737
32,24010,497¥ 45,550
35,292
10,258$ 380,935
287,372
93,563

Selling, general and administrative expenses(Notes 7,11 and 19)
Operating income

8,997

8,966

80,194

1,500

1,292

13,369Other income (expenses):
Interest and dividend income
Foreign exchange gain (loss),net
Interest expense
Gain (loss) on valuation of derivatives, net
Other, net
Ordinary income
Income before income taxes

6
56
(134)
(270)
(26)
1,132
1,132

13
(156)
(145)
218
(49)
1,173
1,173

55
495
(1,190)(2,406)(230)
10,093
10,093

256
(55)
201
931

291
139
430
743

2,287
(492)
1,795
8,298

¥ 931

¥ 743

Income taxes (Note 8):
Current
Deferred
Net income
Net income attributable to owners of parent

$

8,298

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

508

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2016
2017
(Millions of yen)

Net income
Other comprehensive income: (Note 9)
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Foreign currency translation adjustments
Total other comprehensive income (loss)
Comprehensive income (loss)(Breakdown)Comprehensive income (loss) attributable toowners of parent

Year ended
March 31,2017
(Thousands of
U.S. dollars)(Note 1)

¥ 931

¥ 743

$ 8,298

6
175
(56)
125
¥ 1,056

(10)
(908)
(59)
(977)
¥ (234)

60
1,556
(499)
1,117
$ 9,415

1,056

(234)

9,415

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

-

6

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201709

Financial Section

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

Valuation and translation adjustments
Valuationdifference
Foreign
Remeasureoncurrency
ments ofavailable-fortranslation
defined-sale
adjustments benefit planssecurities

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capital51,926,194

6,762

9,108

32

401

(910)

Net income

–

–

–

743

–

–

–

–

743

Dividends of surplus (Note 10)

–

–

–

(148)

–

–

–

–

(148)

Balance as of April 1, 2015

Retainedearnings

Treasurystock(Millions of yen)
2,387
(1,722)

Total net
assets

16,058Net change during the year

–

–

–

–

–

(10)

(59)

(908)

(977)

Purchase of treasury shares

–

–

–

–

(1)

–

–

–

(1)

Balance as of April 1, 2016

¥ 15,675

51,926,194¥ 6,762

9,108¥ 2,982¥ (1,723)

¥ 22

¥ 342

¥ (1,818)

Net income

–

–

–

931

–

–

–

–

931

Dividends of surplus (Note 10)

–

–

–

(198)

–

–

–

–

(198)
125

¥

Net change during the year

–

–

–

–

–

6

(56)

175

Purchase of treasury shares

–

–

–

–

(0)

–

–

–

(0)

51,926,194¥ 6,762

9,108¥ 3,715¥ (1,723)

¥ 28

¥ 286

¥ (1,643)¥ 16,533

Balance as of March 31, 2017¥

(Thousands of U.S. dollars) (Note 1)
Balance as of April 1, 2016

$ 60,268$ 81,182$26,579$ (15,354)

$ 194

3,051

$ (16,201)$ 139,719

Net income

–

–

8,298

–

–

$

–

–

8,298

Dividends of surplus (Note 10)––(1,762)

–

–

–

–

(1,762)

Net change during the year

–

–

–

–

60

(499)

1,556

1,117

Purchase of treasury shares

–

–

–

(5)

–

–

–

(5)

$ 60,268$81,182$ 33,115$ (15,359)$ 254$ 2,552$ (14,645)$ 147,367

Balance as of March 31, 2017

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20177

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2017
2016
(Millions of yen)

Net cash provided by (used in) Operating activities
Income before income taxes and non-controlling interest
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
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
Net cash provided by (used in) operating activities

Year ended
March 31,2017
(Thousands of
U.S. dollars)(Note 1)

¥ 1,132
1,566
(12)
287
(6)
134
41
(646)
5,661
(237)
(2,347)
8
561
6,142
6
(134)
(224)
5,790

¥ 1,173
1,411
(14)
250
(13)
145
(1)
(0)
3
754
687
(234)
310
(91)
(399)
3,981
13
(145)
(204)
3,645

$ 10,093
13,961
(110)
2,556
(55)
1,190
370
(5,754)50,459(2,115)(20,920)
67
5,002
54,74451(1,191)(1,998)51,606

Net cash provided by (used in) Investment 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 provided by (used in) investment activities

(0)
0
(293)
2
(247)
（538）

(0)
3
2
(304)
61
(156)
（394）

(0)
0
(2,608)16(2,203)(4,795)

Net cash provided by (used in) 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
Cash dividends paid
Net cash provided by (used in) financing activities

(440)
(37)
(0)
(198)
(675)

(180)
(40)
700
(700)
(1)
(148)
(369)

(3,922)(328)(5)(1,762)(6,017)

(110)
4,467
7,012
¥ 11,479

(66)
2,816
4,196
¥ 7,012(979)
39,81562,503$ 102,318

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

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

8

SHIBAURA MECHATRONICS CORPORATION
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Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2017
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, 2017 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 ¥ 112.19 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2017. 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.

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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
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 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,
are also 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 historicalexchange rates. Differences arising from translations are presented as “Foreign
currency translation 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 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 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.
(5) Derivatives
All derivatives are carried at fair value.
10

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(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)(7) Depreciation and amortization (except for leased assets)
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 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 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.
(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.

14

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(10) Provision for contract losses
Provision for contract losses is provided at an amount to cover the estimated possible
losses involved in orders for which a loss occurrence is probable and can be reasonably
estimated at the balance sheet date.
(11) Provision for retirement benefits
An allowance for employees’ retirement benefits is provided, based on the projected
retirement benefit obligation and the fair value of the pension plan assets at of thebalance sheet date. The retirement benefit obligation for employees is attributed toeach period by the straight-line attribution method. Actuarial gains or losses arecharged to expenses from the fiscal year subsequent to the fiscal year when incurred
using a straight-line method over a period of 10 years within the average remaining
years of service of the employees Prior service cost is amortized by the straight-line
method over a period of 10 years, which is within the estimated average remaining
years of service of the eligible employees.
Unrecognized prior service cost and unrecognized actual gains and losses are included
in remeasurements of defined benefit plans under accumulated other comprehensive
income 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 the balance 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 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 leases is calculated using thestraight-line method over the lease term with residual value of zero.
12

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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.
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) 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) Consumption tax
The tax-excluded method is used with respect to consumption tax and local
consumption taxes.
(20) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.
3.

16

Accounting Changes

In association with the revision of the Corporation Tax Act, the Company has applied the“Practical Solution on a Change in Depreciation Method due to Tax Reform 2016” (ASBJ
Practical Issues Task Force (PITF) No. 32 dated June 17, 2016) from this consolidated
fiscal year, and changed the depreciation method for facilities attached to buildings andstructures that were acquired on or after April 1, 2016 from the declining-balance method tothe straight-line method.
The effect of this change on the consolidated financial statements for the financial year
ended March 31, 2017 is immaterial.
13
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Annual Report 2017

Financial Section

3.

Accounting Changes (continued)(Additional Information)
The Company has applied the “Revised Implementation Guidance on Recoverability ofDeferred Tax Asses” (ASBJ Guidance No. 26 dated March 28, 2016) from thisconsolidated fiscal year.
4.

Investments in Securities

At March 31, 2017 and 2016, 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 312017
2016
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
costs
sheet
sheet
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 37
–
–
¥ 37

¥69
–
–
¥ 69

¥32
–
–
¥32

¥ 37
–
–
¥ 37

¥60
–
–
¥ 60

March 31,2017
Amountrecorded in
Acquisition the balance
costs
sheet
Difference(Thousands of U.S. dollars)

¥23
–
–
¥23

$329
–
–
$ 329

$615
–
–
$ 615

$286
–
–
$ 286

At March 31, 2017 and 2016, non-marketable securities carried at cost are summarized asfollows:
March 31,2016
2017
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,2017
(Thousands of
U.S. dollars)

¥ 52
1

$ 464
5

For the year ended March 31, 2017, other securities sold are summarized as follows:
Not applicable
For the year ended March 31, 2016, other securities sold are summarized as follows:

Equity securities
Debt securities
Other
Total

Year ended March 31
2016
Total gain on
sales
Sales proceeds(Millions of yen)
¥ 1
¥ 1
－
－
－
－
¥ 1
¥ 1

Total loss on
sales
－
－
－
－

14

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Financial Section

5.

Inventories

Inventories at March 31, 2017 and 2016 are summarized as follows:
March 31,2017
2016
(Millions of yen)Finished products
Raw materials
Work in process
Total

¥ 897
212
2,478
¥ 3,587¥ 1,363
184
2,405¥ 3,952

March 31,2017
(Thousands of
U.S. dollars)$ 7,997
1,891
22,085$ 31,973

Inventories as of March 31, 2017 and 2016 were written down due to lower profitability
and unrealized loss on inventories was included in cost of sales in the amounts of ¥1,004
million ($8,948 thousand) and ¥811 million, respectively.
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, 2017 and 2016 was 1.0%.
Long-term debt and lease obligations at March 31, 2017 and 2016 are summarized asfollows:
March 31,2016
2017
(Millions of yen)Unsecured:
0.8% to 1.3% loans from banks due 2018
to 2021
Lease obligations
Total
Less current portionLong-term debt and lease obligations, net

March 31,2017
(Thousands of
U.S. dollars)

6,500
62

6,500
92

57,938
556

6,562
837
¥ 5,725

6,592
36¥ 6,556

58,4947,460$ 51,034

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2017 aresummarized as follows:
March 31, 2017
(Millions of(Thousands ofyen)
U.S. dollars)
2018
2019
2020
2021 and thereafter
Total

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

¥ 837
514
4,504
707
¥ 6,562$ 7,466
4,582
40,145
6,301$ 58,494
15

Financial Section

6.

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 ($53,481 thousand) to optimize
the free cash flow on August 1, 2016. The outstanding balance of bank borrowings underthese commitment lines at March 31, 2017 was zero.
7.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,2017 and 2016 are as follows:Year ended
March 31,2017
(Thousands of
U.S. dollars)Year ended March 31,
2016
2017
(Millions of yen)
¥ 2,2108.

¥ 2,065$ 19,701

Income Taxes and Deferred Tax Assets

The major components of deferred tax assets and liabilities as of March 31, 2017 and 2016
are summarized as follows:
March 31,2017
2016
(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Reserve for repair and maintenanceEnterprise tax payable
Tax loss carried forward
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

March 31,2017
(Thousands of
U.S. dollars)¥ 1,755
338
99
39
759
1,323
4,313
(3,431)882¥ 1,688
338
73
30
1,264
1,270
4,663
(3,795)868$ 15,645
3,009
884
346
6,763
11,79538,442(30,577)
7,865

(4)

(3)

(39)

(94)
(98)
¥ 784

(135)
(138)
¥ 730

(838)
(877)
$ 6,988

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

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201719

Financial Section

8.

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 theaggregate, resulted in statutory rates of approximately 30.8% and 33.0% for the years ended
March 31, 2017 and 2016, respectively. Income taxes of the foreign consolidated
subsidiaries are based generally on the tax rates applicable in their countries ofincorporation.
The reconciliations between the effective tax rates reflected in the consolidated statement ofincome and the effective statutory tax rates for the years ended March 31, 2017 and 2016
are summarized as follows:
March 31,2016
2017
Effective statutory tax rates
30.8%
33.0%
Effect of:
Non-deductible expenses
2.1
2.2
Change in valuation allowance(10.7)(8.0)
Inhabitants tax per capital
1.1
1.1
Different tax rates applied to foreign consolidated
(2.2)
2.0
subsidiaries
Foreign tax
1.9
3.5
Adjustments in deferred tax assets and liabilities
3.4－
due to the change in tax rate
Experimental and research expense tax credit
(4.7)
(1.1)
0.6
(0.5)
Other
Effective tax rates
17.8%
36.7%
Adjustments of amount of deferred tax assets and liabilities due to change in thecorporate tax rate.
The “Act for Partial Revision of Acts, Including Partial Revision of the Consumption Tax
Act for the Fundamental Reform of the Taxation System to Achieve a Stable Source of
Revenue for Social Security” (Act No.85 of 2016) and the “Act for Partial Revision of Acts,
Including Partial Revision of the Local Tax Act and the Local Allocation Tax Act for theFundamental Reform of the Taxation System to Achieve a Stable Source of Revenue forSocial Security” (Act No.86 of 2016) were enacted by the Japanese government on
November 18, 2016. In conjunction with these acts, the effective date for the increase inJapanese consumption tax rate to 10% was extended from April 1, 2017 to October 1, 2019.
Accordingly, the effective dates of the abolition of the local corporation special tax, theaccompanying restoration of the corporate enterprise tax, and changes in statutory tax rates
for local corporation taxes and corporate inhabitant taxes have been extended from fiscal
years beginning April 1, 2017 or later to fiscal years beginning October 1, 2019 or later.
This change had a no impact on the consolidated financial statements.

20

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Financial Section

9.

Other Comprehensive Income

The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income (loss) for the years ended March 31, 2017 and2016:
March 31,2017
2016
(Millions of yen)
Valuation difference on other(available-for-sale) securities:
Amount arising during the year
Reclassification adjustments for gains andlosses 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 andlosses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income (loss)

March 31,2017
(Thousands of
U.S. dollars)¥7¥ (10)

$ 72

–
7
(1)
6

(1)
(11)
1
(10)

–
72
(12)
60

(56)

(59)

(499)

–
(56)
–
(56)

–
(59)
–
(59)

–
(499)
–
(499)

(146)

(1,097)(1,301)

321
175
–
175

189
(908)
–
(908)

2,857
1,556
–
1,556

¥ 125

¥ (977)$ 1,117

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Financial Section

10.

Information on Dividends

The Company paid cash dividends as follows:
Date of board
resolution
May 19,2016

Class ofstock
Commonstock

Total dividend
amountDividend
per share¥ 198 million¥4.00

Recorddate
March 31,2016

Effective
date
June 6,
2016

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 19,2017
11.

Class ofstock
Commonstock

Total dividend
amount¥ 198 million

Source ofdividends
Retainedearnings

Dividend
per share¥4.00

Recorddate
March 31,2017

Effective
date
June 6,2017

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.
The changes in the retirement benefit obligation for the years ended March 31, 2017 and2016 are as follows:
March 31,2017
2016
(Millions of yen)
Balance at the beginning of the year
Service costs
Interest costs
Actuarial loss
Retirement benefit paid
Balance at the end of the year

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

¥ 9,468
392
32
13
(474)
¥ 9,431¥ 8,350
337
120
1,051
(390)
¥ 9,468

March 31,2017
(Thousandsof U.S.
dollars)$ 84,390
3,495
289
112
(4,228)$ 84,058

19

Financial Section

11.

Retirement Benefits (continued)

The changes in plan assets for the years ended March 31, 2017 and 2016 are as follows:
March 31,2017
2016
(Millions of yen)
Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

¥ 2,924
102
(133)
351
(293)
¥ 2,951¥ 2,827
99
(46)
323
(279)
¥ 2,924

March 31,2017
(Thousandsof U.S.
dollars)$ 26,059
912(1,188)3,125(2,607)$ 26,301

The changes in net defined benefit liability that calculated by the simplified method for theyears ended March 31, 2017 and 2016 are as follows:
March 31,2016
2017
(Millions of yen)
Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

¥ 748
225
(47)
(2)
¥ 924

¥ 611
181
(42)
(2)
¥ 748

March 31,2017
(Thousandsof U.S.
dollars)$ 6,663
2,010
(418)
(20)
$ 8,235

The following table sets forth the funded status of the plans and the amounts recognized in
the consolidated balance sheet as of March 31, 2017 and 2016 for the Company’s and theconsolidated subsidiaries’ defined benefit plans:¥ 6,166(2,951)
3,215
4,189

¥ 6,179(2,924)
3,255
4,037

March 31,2017
(Thousandsof U.S.
dollars)$ 54,956(26,301)
28,65537,337

7,404

7,292

65,992

7,404

7,292

65,992¥ 7,404¥ 7,292$ 65,992

March 31,2016
2017
(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

20

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Financial Section

11.

Retirement Benefits (continued)

Notes:Net defined benefit liability calculated by the simplified method is included.
The components of retirement benefit expense for the years ended March 31, 2017 and2016 are as follows:

¥ 392
32
(102)
337
(17)

¥ 337
120
(99)
206
(17)

March 31,2017
(Thousandsof U.S.
dollars)$ 3,495
289
(912)
3,008
(151)

226

181

2,009

¥ 868

¥ 728

$ 7,738

March 31,2017
2016
(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

The components of remeasurements of defined benefit plans included in othercomprehensive income (before tax effect) for the years ended March 31, 2017 and 2016 are
as follows:
March 31,2017
2016
(Millions of yen)
Prior service cost
Actuarial gain and loss
Total

¥ 17
(192)
¥ (175)

¥ 17
890
¥907

March 31,2017
(Thousandsof U.S.
dollars)$ 151(1,707)$ (1,556)

The components of remeasurements of defined benefit plans included in accumulated othercomprehensive income (before tax effect) as of March 31, 2017 and 2016 are as follows:
March 31,2016
2017
(Millions of yen)
Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

¥ (82)
1,725¥ 1,643¥ (99)
1,917¥ 1,818

March 31,2017
(Thousandsof U.S.
dollars)$ (729)15,374$ 14,645
21

Financial Section

11.

Retirement Benefits (continued)

The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2017 and 2016 are as follows:

Bonds
SharesCash and deposits
General accounts
Other
Total

March 31,
2016
2017
15.9%
56.6%
－
20.0%
－
7.0%
43.1%
42.4%
1.0%
14.0%
100.0%
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.
The assumptions used in accounting for the above plans are as follows:
March 31,

Discount rateLong-term expected return on plan assets
Salary increase rate
Lump-sum election rate
12.

2017
0.31－0.36%
3.5%
4.2%
70.0%

2016
0.31－0.36%
3.5%
4.2%
70.0%

Contingent Liabilities

The Company had the following contingent liability as of March 31, 2017 and 2016 :March 31,2016
2017
(Millions of yen)
Guarantee for housing loans of employees

¥8

¥ 10

March 31,2017
(Thousands of
U.S. dollars)
$ 67

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Financial Section

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 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 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, 2017 and 2016, the fair value information for derivatives, for which hedge
accounting was applied, was not presented since all derivatives were accounted for using
the special hedge accounting and accordingly their fair value was recorded as part of thefair value of the hedged borrowings.

26

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Financial Section

13.

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

¥ 368
¥ 368

¥ (224)¥ (224)¥ (224)¥ (224)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

Total
To buy foreign
currencies
U.S. Dollars
Total

As of March 31, 2016
Contract
amountover 1 year Fair value(Millions of yen)

Unrealizedgain(loss)¥ 3,772¥3,772

¥－
¥－

¥ 268
¥ 268

¥ 268
¥ 268

¥ 1,886¥ 1,886¥－¥－¥ (162)¥ (162)¥ (162)¥ (162)Contract
amountForeign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars

Unrealizedgain(loss)¥ 3,177¥ 3,177

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

As of March 31, 2017
Contract
amountover 1 year Fair value(Millions of yen)

As of March 31, 2017
Contract
Unrealized
amountgain(loss)
over 1 year Fair value(Thousands of U.S. dollars)$ 28,318$ 28,318$ 3,282$ 3,282$ (1,995)$ (1,995)$ (1,995)$ (1,995)

$－
$－

$－
$－

$－
$－

$－
$－

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201727

Financial Section

13.

Derivatives and Hedging Activities (continued)

Notes:
Fair value is principally based on obtaining quotes from counterpaty financial institutions.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
As of March 31, 2017
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

¥ 6,000¥ 5,200¥－

As of March 31, 2016
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

¥ 6,000¥ 6,000¥－

As of March 31, 2017
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

$ 53,481$ 46,350$－

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.

28

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Financial Section

14.

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 costumer’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
long-term debt is used to procure funds required for long-term stability. Althoughsome items 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 guide lines,
the Group enters into derivative transactions with counterparties with high credit
ratings. In addition, the Treasury Division of the Group regularly monitors risk andgain 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 usedinstead. Because various assumptions and factors are reflected in estimating fairvalue, different assumptions could result in different fair value. The contract ornotional amounts of derivatives which are shown in the below table do not represent
the amounts exchanged by the parties and do not measure the Companies’ exposure
to credit or market risk.

26

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Financial Section

14.

Financial Instruments (continued)② Matters concerning the fair value of financial instruments, etc.
Amounts as of March 31, 2017 and 2016 on the accompanying consolidated balance sheet
fair value and the difference between them are as follows.
March 31, 2017
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¥¥ 11,494¥ 11,494

23,834

23,834

－

623

623

－

－

70

70

－

(5) Notes and accounts payable, trade(9,972)(9,972)－(6) Short-term bank loans(5,100)(5,100)

－

(800)

(800)

－

(8) Long-term debt

(5,700)(5,704)(4)(9) Other long-term liabilities(3,078)(2,712)(10) Derivative transactions

(201)

(201)

366
－

(7) Current portion of long-term debt

March 31, 2016
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¥¥ 7,027¥ 7,027

29,49229,492

－

673

673

－

－

61

61

－

(5) Notes and accounts payable, trade(12,330)(12,330)－(6) Short-term bank loans(5,540)(5,540)－(7) Long-term debt

(6,500)(6,495)

5(8) Other long-term liabilities(3,077)(2,818)(9) Derivative transactions

106

106

259
－

March 31, 2017
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

30$

102,450$

102,450$－

212,446

212,446

－

5,555

5,555

－

620

620

－

(5) Notes and accounts payable, trade(88,887)(88,887)－(6) Short-term bank loans(45,459)(45,459)－(7) Current portion of long-term debt

(7,131)(7,131)－(8) Long-term debt

(50,807)(50,842)(35)(9) Other long-term liabilities(27,437)(24,174)(10) Derivative transactions(1,790)(1,790)3,263－

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201727

Financial Section

14.

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 items are settled in a short periof of time, their fair value approximatesthe carrying value of these instruments.
(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 periof of time, their fair value approximatesthe carrying value of these instruments.
.
(8) Long-term debt
As for the fair value of long-term debt, future cash flows from payments ofprincipal and interest are discounted at the interest rate applicable to a similar
new loan to the present value. As 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 at the interest rateapplicable to a similar new loan to the present value.
(9) Other long-term liabilities
Other long-term liabilities consist of long-term guarantee deposits. The fair valueof other long-term liabilities is discounted at the risk-free interest rates of future
cash flows to the present value.
(10) Derivative transactions
See Note 13 for details on derivative transactions.

b) As non-marketable equity securities of ¥52 million ($464 thousand) do not have aquoted market price and the future cash flow cannot be estimated, the Group considers
it extremely difficult to determine their fair value. Hence, the items are not included in“(4) Investment securities - Other securities.”

28

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Annual Report 201731

Financial Section

14.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥11,475 million ($102,282 thousand), Notes and accounts
receivable, trade of ¥23,834 million ($212,446 thousand), Electronically recordedmonetary claims of ¥623 million ($5,555 thousand) are due within one year
subsequent to March 31, 2017 and Cash and bank deposits of ¥7,009 million, Notes
and accounts receivable, trade of ¥29,492 million, Electronically recorded monetaryclaims of ¥673 million are due within one year subsequent to March 31, 2016.

15.

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
Carrying amountMarch 31,
Decrease
2017(Millions of yen)
¥ 5,812¥ 122¥ 5,690

Fair value
March 31,
2017

Carrying amountMarch 31,
Decrease
2016(Millions of yen)
¥ 6,054¥ 242¥ 5,812Fair value
March 31,2016

April 1,
2016
Rental property

April 1,
2015
Rental property¥ 7,513¥ 7,029

Fair value
Carrying amountMarch 31,
March 31,
Decrease
2017
2017(Thousands of U.S. dollars)$ 51,800$ 1,084$ 50,716$ 66,963

April 1,
2016
Rental property

Notes:

32a)

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

b)

Decrease represents depreciation during the year.

c)

Fair value at March 31, 2017 and 2016 is internally determined by the Company
based on the real-estate appraisal standard.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201729

Financial Section

15.

Investment in Rental Property (continued)

Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2017
Rental income Rental costs
Difference(Millions of yen)
¥ 1,732¥ 1,233¥ 499

Rental property

Year ended March 31, 2016
Rental income Rental costs
Difference(Millions of yen)
¥ 1,732¥ 1,315¥ 417

Rental property

Year ended March 31, 2017
Rental income Rental costs
Difference(Thousands of U.S. dollars)$ 15,441$ 10,989$ 4,452

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 tothis real estate, such as depreciation, repair cost, insurance cost, taxes and public charges,
are included in rental costs.

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201733

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
discrete financial information is available, which the Board of Directors regularly
monitors in order to decide on the 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 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:
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), 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.

34

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Annual Report 201731

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, 2017 and 2016 is summarized asfollows:
Year ended March 31, 2017
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 26,355
48¥ 12,266152¥ 2,0440¥ 2,072–¥ 42,737200

Total sales
Segment income (loss)

26,403345

12,418
863

2,044
83

2,072
597

42,937
1,888

Segment assets

25,851

10,572

1,586

6,370

44,379

956
4
5

296
0
6

38
0
6

276
–
–

1,566
4
17

778

249

22

173

1,222

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

Year ended March 31, 2016
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 26,53623¥ 15,336
137¥ 1,6450¥ 2,033–¥ 45,550
160

Total sales
Segment income (loss)

26,559(221)

15,473
1,423

1,645
(55)

2,033
504

45,7101,651

Segment assets

32,11811,013

1,301

6,448

50,880

603
11
6

409
0
10

38
0
9

361
–
–

1,411
11
25

1,165

245

33

93

1,536

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

32

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201735

Financial Section

16.

Segment Information (continued)
Year ended March 31, 2017
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 234,915
431$ 109,332
1,357$ 18,218
3$ 18,470–$ 380,935
1,791

Total sales
Segment income (loss)

235,346
3,070

110,689
7,692

18,221743

18,4705,321

382,726
16,826

Segment assets

230,420

94,23014,13556,784

395,569

8,526
37
47

2,637
0
50

336
0
57

2,462
–
–

13,961
37
154

6,932

2,225

196

1,540

10,893

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,
2017
2016
(Millions of(Millions of
yen)
yen)
Reporting segments

Year ended
March 31,2017
(Thousands of
U.S. dollars)¥ 1,888¥ 1,651

Unallocated amounts

(443)

(423)

(3,945)

Other

(313)

(55)

(2,788)¥ 1,132¥ 1,173$ 10,093

Consolidated$ 16,826

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

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201733

Financial Section

16.

Segment Information (continued)b) Segment assets
As of March 31,
2017
2016
(Millions of(Millions of
yen)
yen)
Reporting segments¥ 44,379

Unallocated amounts
Consolidated

As ofMarch 31,2017
(Thousands of
U.S. dollars)¥ 50,880$ 395,569

9,342

5,373

83,273¥ 53,721¥ 56,253$ 478,842

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, 2017

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

Reportingsegments

Adjustment
amount¥ 1,566
4
17(Millions of yen)
¥
–
1
117

1,222

Consolidated¥ 1,566
5
134

–

1,222

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 13,961$–$ 13,961
37
3
40
154
1,036
1,190
10,893–

10,893

Year ended March 31, 2016

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

Reportingsegments

Adjustment
amountConsolidated¥ 1,411
11
25(Millions of yen)
¥
–
0
120

¥ 1,411
11
145

1,536

–

1,536

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201737

Financial Section

16.

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, 2017
Japan

Northeastern Asia

Other

Total

(Millions of yen)
¥ 17,827¥ 23,595¥ 1,315¥ 42,737

Year ended March 31, 2016
Japan

Northeastern Asia

Other

Total

(Millions of yen)
¥ 20,201¥ 24,092¥ 1,257¥ 45,550

Year ended March 31, 2017Japan

$ 158,901

Northeastern Asia
Other
(Thousands of U.S. dollars)$ 210,311$ 11,723

Total$ 380,935

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
As of March 31, 2017
Japan

Northeastern Asia
(Millions of yen)

¥ 10,780

¥ 10

Total

¥ 10,790

As of March 31, 2016
Japan

¥ 11,281

Northeastern Asia
(Millions of yen)
¥

11

Total

¥ 11,292

As of March 31, 2017
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 96,084

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

$ 95

$ 96,179

35

Financial Section

16.

Segment Information (continued)c) Information by main customer
Year ended March 31, 2017: Not applicableYear ended March 31, 2016
Fine mechatronics andMechatronics systems(Millions of yen)
¥ 4,628

Sales to Toshiba Corporation③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2017: Not applicableYear ended March 31, 2016: Not applicable④ Depreciation and remaining balance of goodwill by reporting segment
Year ended and as of March 31, 2017: Not applicableYear ended and as of March 31, 2016: Not applicable⑤ Gain on negative goodwill by reporting segment
Year ended March 31, 2017: Not applicableYear ended March 31, 2016: Not applicable
17.

Cash and Cash Equivalents

Reconciliations of cash and cash equivalents as of March 31, 2016 and 2017 between theamounts shown in the consolidated balance sheets and the consolidated statements of cash
flows are as follows:
As of March 31,
2017
2016
(Millions of(Millions of
yen)
yen)
Cash and time deposits

As ofMarch 31,2017
(Thousands of
U.S. dollars)¥ 11,494¥ 7,027$ 102,450

(15)

(15)

(132)

¥ 11,479¥ 7,012$ 102,318

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

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201739

Financial Section

18.

Non-cash Transactions

Lease assets and lease obligations recorded relating to lease transactions were ¥7 million($62 thousand) and ¥7 million ($62 thousand), respectively for the year ended March 31,2017 and ¥9 million and ¥9 million, respectively for the year ended March 31, 2016.
19.

Selling, General and Administrative Expenses

For the years ended March 31, 2017 and 2016, major selling, general and administrative
expenses are summarized as follows:Year ended March 31,
2016
2017
(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

¥ 57
205
14
4,273
33

¥

Year ended
March 31,2017
(Thousands of
U.S. dollars)

83
421
4
4,279
29

$ 506
1,830
126
38,088
293

(7)
374

8
357

(65)
3,331

3
1,100
68
2,205

3
898
105
2,062

25
9,807
607
19,652

20. Related Party Transactions
Toshiba Corporation held 39.1% of the Company’s voting rights as of March 31, 2017 and2016.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation, The
Company also lend the office space to Toshiba Corporation. The aggregate amounts ofthese transactions were ¥2,415 million ($21,522 thousand) and ¥3,881 million for the years
ended March 31, 2017 and 2016, respectively.
The Company purchased raw materials from Toshiba Corporation totaling ¥282 million($2,512 thousand) and ¥279 million for the years ended March 31, 2017 and 2016,
respectively.
The terms and conditions of the above transactions were determined with consideration ofmarket prices.

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201737

Financial Section

20.

Related Party Transactions (continued)

Amounts due from and to Toshiba Corporation at March 31, 2017 and 2016 were as
follows:
March 31,2017
2016
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation
21.

¥

236
3,382

¥

301
3,379

March 31,2017
(Thousands of
U.S. dollars)$ 2,101
30,149Per 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. Net assets per share are computed based on theweighted-average number of shares of common stock outstanding at each balance sheet
date.
As of March 31,
2016
2017
(Yen)
Net income:– Basic
Net assets¥ 18.84334.67¥ 15.04
317.29As ofMarch 31,2017
(U.S. dollars)$ 0.172.98

Notes:The information regarding diluted net income per share for the years ended March 31, 2017and 2016 is omitted because there was no stock with dilutive effect.

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201741

Financial Section

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201743

Directors, Vice Presidents and Auditors
As of June 22, 2017

Directors and Vice Presidents
Shigeki Fujita

Keigo Imamura

Representative Director

Senior Vice President

President and Chief Executive Officer

Deputy Executive General Manager of Fine Mechatronics
Division

Hitoshi Dojima
Director

Hisashi Shindo

Executive Vice President

Senior Vice President

Chief Financial Officer

Deputy Executive General Manager of Mechatronics System
Division

Makoto Fujino
Director

Takashi Arai

Executive Vice President

Vice President

Executive General Manager of Fine Mechatronics Division

Deputy Executive General Manager of Fine Mechatronics
Division

Yoshitsugu Ogawa
Director

Kazuyuki Yamanaka

Senior Vice President

Vice President

Executive General Manager of Mechatronics System Division

Executive General Manager of Production & Procurement
Division

Masatoshi Higuchi
Director
Vice President

Vice President

Executive General Manager of Technology & Development

Deputy Executive General Manager of Corporate Management

Division

Division

Sennosuke Yoshida
Outside Director

Tomoko Inaba
Outside Director

Auditors
Yasuhiko Yamato
AuditorKazumasa Uchida
Outside Auditor

Hiroshi IgashiraOutside Auditor

44

Hironaga Shiokawa

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2017

Yoshio Yuyama
Vice President
Deputy Executive General Manager of Mechatronics System
Division

Investor Information
As of March 31, 2017

Date Established

October 12, 1939

Capital6,762Million-Yen

Number of Employees

Consolidated

Common Stock

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

Number of Shareholders

5,222

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
http://www.shibaura.co.jp/: 1,202

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

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

High (yen)Low (yen)

2017
317
179

2016
320
170

2015
384
220

2014
333
181

2013
252
112

Principal Shareholders

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

Number of shares hold

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

18,977

38.41
4.76
3.44

2,354
1,704

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201745

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/

SKB0319A 1709
EDC170301