財務-mat3.3 01.6.9 4:23 PM ページ 2

ANNUAL REPORT 2001
Financial Section
For the year ended March 31, 2001

アニュアルno.2 01.6.9 4:08 PM ページ 2

Consolidated Financial Statements
Shibaura Mechatronics Corporationand Subsidiaries
Years ended March 31, 1999, 2000 and 2001
with Report of Independent Certified Public AccountantsContents
Consolidated Balance Sheets ………………………………………… 1
Consolidated Statements of Operations …………………………… 3
Consolidated Statements of Shareholders' Equity ………………… 4
Consolidated Statements of Cash Flows …………………………… 5
Notes to Consolidated Financial Statements ……………………… 7
Report of Independent Certified Public Accountants ……………… 16
Supplemental Information …………………………………………… 17

アニュアルno.2 01.6.9 4:08 PM ページ 3

Shibaura Mechatronics Corporation and Subsidiaries

Consolidated Balance Sheets

1999

March 31,
2000
(Millions of yen)

2001

March 31,
2001
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits
Short-term investments
Marketable securities (Note 3)
Notes and accounts receivable, trade
Allowance for doubtful accounts
Inventories (Note 4)
Other current assets
Total current assets¥ 2,855343
19,403(134)
11,123570
34,160¥ 5,745177
479
27,821(117)
18,192
1,528
53,825¥ 4,233
69
23,196(106)
21,447879
49,718$ 34,165
557
187,213(853)
173,097
7,094
401,273

Property, plant and equipment:
Land
Buildings
Machinery and equipment
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

454
27,52910,269148
38,400(13,571)
24,829611
28,801
12,456650
42,518(16,467)
26,051337
27,88910,61479
38,919(16,882)
22,0372,720
225,088
85,669636
314,113(136,251)
177,862

Investments and other assets:
Investment securities (Note 3)
Other assets
Allowance for doubtful accounts
Total investments and other assets

832
949
(0)
1,781

800
2,414
(0)
3,214

588
3,051
(-)
3,639

4,747
24,626(-)
29,373¥ 60,770¥ 83,090¥ 75,394$ 608,508

Total assets

Liabilities a
Current liab
Short-term
Notes andAccrued e
Accrued i
Accrued cOther cur
Total curren
Long-term
Bonds (NLong-term
Allowanc
Directors
Other lon
Total longContingent
ShareholdeCommonAuthoriIssued:
45,86
49,86
50,03
Additiona
Retained
Less treas
Net unreali
Total share
Total liabili

The accomp

1

アニュアルno.2 01.6.9 4:08 PM ページ 4

1999

Liabilities and shareholders' equity
Current liabilities:
Short-term bank loans (Note 5)
Notes and accounts payable
Accrued expenses
Accrued income taxes (Note 7)
Accrued consumption tax
Other current liabilities
Total current liabilities
Long-term liabilities:
Bonds (Note 5)Long-term debt (Note 5)
Allowance for retirement benefits (Note 8)
Directors' retirement benefits
Other long-term liabilities
Total long-term liabilities
Contingent liabilities (Note 12)
Shareholders' equity:
Common stock, ¥50 par value:
Authorized: 100,000,000 shares
Issued:45,865,834 shares at March 31, 1999,
49,863,822 shares at March 31, 2000,
50,033,312 shares at March 31, 2001
Additional paid-in capital (Note 9)
Retained earnings (Notes 9 and 14)
Less treasury stock, at cost (Note 10)
Net unrealized holding gain on other securities
Total shareholders' equity
Total liabilities and shareholders' equity

March 31,
2000
(Millions of yen)March 31,
2001
(Thousands of
U.S. dollars)¥12,734
10,386
2,791
65
0
1,613
27,589¥17,275
24,634
4,416
847
100
1,457
48,729¥13,047
21,782
4,310
778
98
1,018
41,033$105,304
175,805
34,786
6,279
789
8,214
331,177

5,000
6,635
1,988
229
3,202
17,054

2,990
5,848
2,415
149
3,275
14,677

2,820
2,123
6,306
160
3,248
14,65722,76017,13250,892
1,296
26,218118,298

3,776
7,759
4,592
(0)
16,127¥60,770

5,783
9,763
4,138
(0)
19,684¥83,090

5,868
9,848
4,149
(177)
16
19,704¥75,394

47,361
79,48133,490(1,429)130
159,033$608,508

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

2

2001

アニュアルno.2 01.6.9 4:08 PM ページ 5

Shibaura Mechatronics Corporation and Subsidiaries

Shiba

Consolidated Statements of Operations

Co

Year ended March 31,
1999
2000
2001
(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain on transfer of business
Equity in losses of affiliates
Gain on sale of land
Gain on sale of investments in affiliates, etc.
Cumulative effect of initialadoption of accounting for
retirement benefits
Special severance payments
Special amortization of past service costsof defined benefit pension plan
Other net
Income (loss) before income taxes
Income taxes (Note 7):
Current
Deferred
Minority interests in losses of consolidated
subsidiaries
Net loss¥43,875
33,86810,0079,506
501¥75,935
59,85316,082
13,347
2,735¥71,11755,175
15,942
12,6803,262$573,989
445,325
128,664
102,339
26,325

73
(438)
387
(314)
-

25
(478)
932
-

16
(198)
220
824

135
(1,605)
1,783
6,650

-

(2,730)(5,074)-(40,959)
-

(164)
45

(320)
(1,132)
(968)

(247)
(1,197)(1,995)(9,666)

133
23

847
(281)

950
(2,006)

7,668(16,195)¥ (111)(1,319)¥ (215)¥ (141)$ (1,139)(Yen)
Per share of common stock:
Net loss
Cash dividends applicable to the year

Year ended
March 31,
2001
(Thousands of
U.S. dollars)¥ (2.80)
3.00¥ (4.65)
5.00(U.S. dollars)¥ (2.83)
5.00$ (0.02)
0.04

Balance as
Increase d
Net loss
Increase i
affiliatby theCash divi
Balance as
Cumulati
account
Net loss
Decreaseconsoli
Cash divi
Conversio
Balance as
Net loss
Increase iand exc
Cash divi
Bonuses t
Conversio
Balance as

Balance as
Net loss
Increase iand exc
Cash divi
Bonuses t
Conversion
Balance as

The accompanying notes are an integral part of the consolidated financial statements.
The accom3

アニュアルno.2 01.6.9 4:08 PM ページ 6

Shibaura Mechatronics Corporation and Subsidiaries

Consolidated Statements of Shareholders' Equity
Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capitalRetainedearnings(Millions of yen)

Balance as of March 31, 1998
Increase due to merger
Net loss
Increase in earnings arising from inclusion ofaffiliated companies accounted forby the equity method
Cash dividends paid
Balance as of March 31, 1999
Cumulative effect of change inaccounting principles
Net loss
Decrease in earnings arising from inclusion of
consolidated subsidiaries
Cash dividends paid
Conversion of convertible bonds
Balance as of March 31, 2000
Net loss
Increase in earnings arising from inclusionand exclusion of consolidated subsidiaries
Cash dividends paid
Bonuses to directors and statutory auditors
Conversion of convertible bonds
Balance as of March 31, 2001

33,455,333
12,410,501-¥3,155621-¥4,776
2,983-¥4,409394(111)

45,865,834

3,776

7,759

0
(100)
4,592

-

-

-

338
(215)

3,997,988
49,863,822
-

2,007
5,783
-

2,004
9,763
-

(440)
(137)
4,138
(141)

169,490
50,033,312

85¥5,86885¥9,848

535
(349)
(34)
¥4,149(Thousands of U.S. dollars)$46,674$78,795$33,403(1,139)Balance as of March 31, 2000
Net loss
Increase in earnings arising from inclusionand exclusion of consolidated subsidiaries
Cash dividends paid
Bonuses to directors and statutory auditors
Conversion of convertible bonds
Balance as of March 31, 2001

687
$47,361

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

4

686$79,481

4,318(2,817)(275)$33,490アニュアルno.2 01.6.9 4:08 PM ページ 7

Shibaura Mechatronics Corporation and Subsidiaries

Consolidated Statements of Cash Flows

Year ended March 31,
1999
2000
2001
(Millions of yen)

Operating activities:
Income (loss) before income taxes
Adjustments to reconcile income (loss) before
income taxes to net cash(used in) provided by operating activities:
Depreciation and amortization
Reversal of doubtful accounts
Provision for (reversal of) employees' retirement
allowancesInterest and dividend income
Interest expense
Bond issuance expense
Gain on sale of property and equipment
Loss on disposal of property and equipment
Gain on sale of marketable and investment securities
Loss (gain) on revaluation of marketable andinvestment securities
Gain on sale of investment securities
Gain on sale of affiliates, etc.
Translation gains
Equity in earnings of unconsolidated subsidiaries andaffiliates
Increase in accrued consumption tax
Special severance payments
Bonuses to directors and statutory auditors
Changes in assets and liabilities:
Increase in advances received
Decrease (increase) in notes and accounts receivable
Increase in inventories(Decrease) increase in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest payments
Special severance payments
Income taxes paid
Other payments
Net cash (used in) provided by operating activities

¥

5

45

¥

Year ended
March 31,
2001
(Thousands of
U.S. dollars)(968)¥ (1,197)$ (9,666)

2,502
(278)

3,302
(56)

2,065
(16)

16,670
(126)

(143)
(73)
438
81
(49)

(1,049)
(25)
478
202
(923)
38
(3)

4,399
(16)
198
(220)
40
-

35,505(135)
1,605(1,753)
322
-

42
(5)

(37)
-

(168)
(824)
(25)

(1,360)(6,650)
(198)

(432)
-

2,730
-

25
(34)

202
(275)

4,424
(1,638)(3,618)
(434)
862
72
(438)
(785)
(289)

(2,367)(5,425)
11,237
(734)
6,400
25
(436)
(2,730)
(73)
3,186

(339)
(1,693)(5,166)
1,660
552
(759)
16
(217)
(1,033)(255)(2,248)(2,739)(13,664)(41,693)
13,401
4,427(6,127)134(1,754)(8,339)(2,057)(18,143)

Investment
Payments fo
Proceeds fr
Purchases o
Proceeds fr
Purchases o
Proceeds fr
Purchases o
Proceeds fr
Proceeds fr
Payment wi
subsidiary
Decrease (inNet cash pr
Financing a(Decrease)
Proceeds fr
Repayment
Proceeds fr
Redemption
Proceeds fr
sharehold
Purchases oCash divide
Other
Net cash (uEffect of ex
deposits
Net increas
Cash and ba(Decrease)subsidiari
Cash arising
Cash and ba

The accomp

アニュアルno.2 01.6.9 4:08 PM ページ 8

Year ended March 31,
1999
2000
2001
(Millions of yen)

Investment activities:
Payments for deposits
Proceeds from time deposits
Purchases of marketable securities
Proceeds from sale of marketable securities
Purchases of property and equipment
Proceeds from sale of property, plant and equipment
Purchases of investment securities
Proceeds from sale of investment securities
Proceeds from disposition of businesses
Payment with respect to sale of a consolidated
subsidiary
Decrease (increase) in other assets
Net cash provided by (used in) investing activities
Financing activities:(Decrease) increase in short-term loans
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from issuance of stock to minority
shareholders
Purchases of treasury stock
Cash dividends paid
Other
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and bankdeposits
Net increase (decrease) in cash
Cash and bank deposits at beginning of the year
(Decrease) increase arising from exclusion/inclusion ofsubsidiaries from/in consolidation
Cash arising from merger
Cash and bank deposits at end of the year

¥

(496)
695
(3,053)
(927)
10
4,244

¥ (654)477(2,098)2,001(1,287)
2,490
(307)
85
-

249
722

98
805

(776)
(18)
(737)

(6,263)(146)(5,949)(2,832)3,000(1,017)-(4,861)
805
(576)
6,797
(5,000)3,845
600(2,703)-31,032
4,842(21,814)
-

(100)
(949)

600
(137)
(0)
(2,372)

(177)
(349)
1,216

(1,424)(2,817)
9,819

(516)
2,681

12
1,631
2,855

19
(1,750)5,745

150(14,123)
46,375(182)872¥ 2,855

1,259¥ 5,745238¥ 4,233

1,917$ 34,169

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

6

¥

(69)
177
(1,800)1,900(1,004)
262
(79)
670
-

Year ended
March 31,
2001
(Thousands of
U.S. dollars)

$

(557)
1,429
(14,527)
15,337(8,102)
2,114
(641)
5,407
-

アニュアルno.2 01.6.9 4:08 PM ページ 9

Shibaura Mechatronics Corporation and Subsidiaries

Notes to Consolidated Financial Statements

1. Basis of Presenting Financial Statements
Shibaura Mechatronics Corporation (the "Company") and its
consolidated subsidiaries (collectively the "Companies") maintain theirin the consolidated financial statements for the year ended March 31,

market prices

1999 and were acccounted for by the equity method. SNC became a

Effective

consolidated subsidiary as a result of the change in the scope ofaccounting st

consolidation made for the year ended March 31, 2000. However, SNC

Establishment

and its subsidiary have been excluded from consolidation for the yearby the Busin

been prepared from the financial statements filed with the Ministry ofended March 31, 2001 because the shares of SNC which were owned by

January 22, 1

Finance as required by the Securities and Exchange Law of Japan.

the Company were sold to Nidec Corporation, a shareholder of SNC.

before income

accounting records and prepare their financial statements in accordancewith accounting principles and practices generally accepted and appliedin Japan.

The accompanying consolidated financial statements have

Accordingly, the consolidated financial positions, results of operations

For the years ended March 31, 1999, 2000 and 2001, six, seven andand cash flows presented in the accompanying financial statements may

three investments in unconsolidated subsidiaries, respectively, are statedThis acco

differ in certain material respects from accounting principles andat cost because they had no material effect on the consolidated financial

Company to cpractices generally accepted in countries and jurisdictions other thanstatements.

trading, held-(c) Elimination of Intercompany Investments and Relevant

Company revi

Japan. For the purposes of this document, certain reclassifications havebeen made to present the accompanying consolidated financial

would have be

Shareholders' Equity

classification,

The Company's investment in each consolidated subsidiary and theone year haverequirement, consolidated statements of cash flows have been included

Company's share of the relevant shareholders' equity of suchbeen included

as part of the basic financial statements. The Company has made certain

consolidated subsidiaries have been eliminated as of the date of eachsecurities in creclassifications of consolidated statements of cash flows for the year

acquisition.

securities incr

ended March 31, 1999 to conform to the 2000 presentation.

(d) Elimination of Unrealized Profits or Losses(h) Inventoriestatements in a format which is familiar to readers outside Japan.
Effective the year ended March 31, 2000, under a new disclosure

The accompanying consolidated financial statements are stated in yen,a. Unrealized profits or losses resulting from intercompany transactions

the currency of the country in which the Company is incorporated andoperates. The translation of yen amounts into U.S. dollar amounts has
been included solely for the convenience of readers outside Japan. The

Inventor

included in assets remaining within the Companies have beenstated at cost deliminated.

Finished goodb. In connection with the elimination of unrealized profits or losses

and supplies

approximate rate of exchange at March 31, 2001. This translation should

relating to "Property, plant and equipment" and "Intangible assets",

Semi-finished

not be construed as a representation that yen could be converted into U.S.

related depreciation and amortization have been adjusted accordingly.

Work in procetranslation has been made at the rate of ¥123.90 = U.S.$1.00, the(e) Translation of Items in the Financial Statements of Overseas

dollars at the above or any other rate.

Subsidiaries and Affiliates

2. Summary of Significant Accounting Policies(a) Scope of Consolidation
The accompanying consolidated financial statements include theaccounts of Shibaura Mechatronics Corporation and one subsidiary forthe year ended March 31, 1999, four subsidiaries for the year ended(i) Depreciatio
Depreciat

Items in the financial statements of overseas subsidiaries and affiliates

by the declini

are translated into yen at the exchange rates in effect at the balance-sheet

the respective

dates of such subsidiaries, except for the components of shareholders'building acquequity, which are translated at their historical rates. The resulting foreignbuildings acqu

March 31, 2000, and four subsidiaries for the year ended March 31,

currency translation adjustment is included in other assets.

2001. Effective the year ended March 31, 2000, the scope of(f) Cash and Cash Equivalents

Intangibl
Development

consolidation has been changed from including a subsidiary whose

The Company and its subsidiaries substantially consider all highly

amortized byvoting interests are 50% or more owned by the parent, to expanding theliquid investments with a maturity of three months or less from their

the estimated u

scope to include a subsidiary whose voting interests are owned by thepurchase dates to be cash equivalents.

(j) Severance

parent at 40% or more but less than 50% and, in addition, whose decision(g) Securities

making with respect to its operations is significantly affected by the

Effective

Held-to-maturity securities are either amortized or accumulated to face

new accountin

value. Other securities with quoted market prices are carried at market

the Establishm

value. The difference between the acquisition cost and the carrying value

issued by the B

consolidation. The exclusion of these subsidiaries is not deemed materialof other securities, including unrealized gains and losses, is recognized as

an allowance f

to the consolidated financial statements.

a component of the shareholders' equity under "Net unrealized holdingon the projec(b) Application of the Equity Method

gain on other securities." The cost of other securities sold is computed

assets. In priorbased on the moving average method. Other securities without quoted

the retirement

parent through financial or technical support, personnel, or transactions,etc. For the years ended March 31, 1999, 2000 and 2001, six, seven, andthree subsidiaries, respectively, have been excluded from the scope of

The accounts of Shibaura Nidec Corporation ("SNC") were included

7アニュアルno.2 01.6.9 4:08 PM ページ 10

market prices are stated at cost based on the moving average method.

employees terminated their services voluntarily.

Effective the year ended March 31, 2001, the Company adopted a new

The transition difference of ¥5,074 million resulting from the initialaccounting standard for financial instruments ("Opinion Concerning

adoption of the new accounting standard charged to income as an

Establishment of Accounting Standard for Financial Instruments" issued

extraordinary loss for the year ended March 31, 2001.

by the Business Accounting Deliberation Council (the "BADC") on

In addition, prior service cost of ¥130 million in the aggregate with

January 22, 1999). The effect of this change was to increase income

respect to the revision of the lump-sum retirement payment plan and thebefore income taxes by ¥105 million compared with the amount which

funded non-contributory pension plan was charged to income as anwould have been recorded by the method applied in the previous year.

extraordinary gain for the year ended March 31, 2001.

This accounting standard for financial instruments requires the

Furthermore, the Company provides for retirement benefits to directors

Company to classify its securities into the following three categories:and statutory auditors based on the Company's internal rules at thetrading, held-to-maturity and other. At the beginning of the year, theamount which would be required to be paid if all directors and statutory

Company reviewed the classification of all its securities. Based on thisauditors retired or left at the balance sheet date.

classification, any held-to-maturity securities with a maturity of less than(k) Accrual for Periodic Repairs

one year have been included in current assets. All other securities have

The certain building acquired in the year ended March 31, 1995

been included in investment securities as non-current assets. As a result,requires periodic repairs. Accrual for repair expenses is recorded based

securities in current assets decreased by ¥377 million and investment

on the current portion of the total expenses estimated for such repairs.

securities increased by ¥377 million at March 31, 2001.

(l) Leases(h) Inventories

Finance leases other than those, which are deemed to transfer theInventories of the Company and its consolidated subsidiaries areownership of the leased assets to the lessee, are not capitalized, but arestated at cost determined principally by the following methods:

accounted for by a method similar to that applicable to operating leases.

Finished goods, raw materials(m) Research and Development Expenses

and supplies- - Primarily by the moving average method

Research and development expenses are charged to income whenSemi-finished goods - - Primarily by the individual cost method

incurred.

Work in process(n) Per Share Information- - Primarily by the individual cost method(i) Depreciation and Amortization

Net income (loss) per share of common stock is based on the

Depreciation of property, plant and equipment is generally computed

weighed average number of shares of common stock outstanding during

by the declining-balance method based on the estimated useful lives ofeach period. Cash dividends per share shown for each period in thethe respective assets. The straight-line method is adopted for the certain

consolidated statements of operations represent dividends applicable tobuilding acquired during the year ended March 31, 1995, and to all

the respective period.

buildings acquired since April 1, 1998.

(o) Income Taxes

Intangible assets are amortized by the straight-line method.

Deferred tax assets and liabilities are determined based on theDevelopment costs for software intended for their internal use aredifferences between financial reporting and income tax reporting of theamortized by the straight-line method over a period of 5 years based on

assets and liabilities and are measured using the statutory tax rates which

the estimated useful life of the software.

will be in effect when the differences are expected to be realized.

(j) Severance Benefits and Pension Plans

Effective the year ended March 31, 2000, in accordance with a change

Effective the year ended March 31, 2001, the Company adopted ain accounting principles, the method of accounting for income taxes has

new accounting standard for retirement benefits ("Opinion Concerning

been changed to adopting tax-effect accounting. Tax-effect accounting

the Establishment of Accounting Standard for Retirement Benefits"

was applied only to limited temporary differences in previous years. The

issued by the BADC on June 16, 1998). In accordance with this standard,

effect of this change was to increase deferred tax assets by ¥445 million

an allowance for employees' retirement benefits has been provided based(current assets by ¥319 million and other assets by ¥126 million), toon the projected retirement benefit obligation and the pension fundincrease net income by ¥302 million and to increase consolidated

assets. In prior years, retirement allowances had been provided at 50% of

retained earnings by ¥640 million at March 31, 2000.

the retirement benefits payable at the year end for employees, if all the8

アニュアルno.2 01.6.9 4:08 PM ページ 11

3. Securities
At March 31, 2001, available-for-sale securities with quoted market prices, which were classified under the new accounting standard for financial
instruments, are summarized as follows:

Amountrecordedin theDifference
balanceAcquisition
sheet
cost
(Millions of yen)

Othersecurities whosemarket values recordedin the balance sheet
exceed their acquisition costs:
Equity securities
Debt securities
Other
Subtotal
Other
securities whosemarket values recordedin the balance sheet do not
exceed their acquisition costs:
Equity securities
Debt securities
Other
Subtotal
Total

¥ 86
10
96

¥137
10
147

¥ 51
51

$ 695
85
780

$1,103
85
1,188

$ 408
408

110
20
130
¥226

88
19
107
¥254

(22)
(1)
(23)
¥ 28

886
162
1,048
$1,828707
156
863$2,051

(179)
(6)
(185)
$ 223

4. Inventories

At March 31, 2001, other securities without quoted market prices are
summarized as follows:
Amount recorded

Investments in subsidiaries andaffiliates:
Unlisted equity securities
except for those traded on theover-the-counter market
Other securities unlisted
securities except for those tradedon the over-the-counter market

Inventories at March 31, 1999, 2000 and 2001 are summarized asfollows:

in the balance sheet(Millions of yen) (Thousands of
U.S. dollars)

1999

¥232

$1,873

101

822

Finished products
Raw materials
Work in process
Total

A comparison of the aggregate carrying and market value of marketable
and investment securities at March 31, 1999 and 2000 is as follows:

¥381
620
¥239

¥ 23
49
¥ 26

¥ 23
50
¥ 27

¥ 5,820
128
5,175¥11,123¥ 8,185219
9,788¥18,192¥ 7,094104
14,249¥21,447

March 31,
2001
(Thousands of
U.S. dollars)$ 57,258
834
115,005$173,097

The annual interest rates of the Companies' short-term bank loans at
March 31, 1999, 2000 and 2001 principally ranged from 0.62 per cent to1.15 per cent., from 0.57 per cent. to 1.13 per cent., and from 0.57 percent. to 1.625 per cent., respectively.
A summary of bonds and long-term debt at March 31, 1999, 2000 and2001 is as follows:

1999
2000
(Millions of yen)

¥343
393
¥ 50

March 31,
2000
2001
(Millions of yen)

5. Short-Term Bank Loans and Other Long-Term Debt

March 31,

Marketable securities:
Cost (carrying value)
Aggregate market value
Unrealized gain
Investment securities:
Cost (carrying value)
Aggregate market value
Unrealized gain

Amountrecordedin theDifference
Acquisition
balancecost
sheet(Thousands of U.S. dollars)

Unsecured:Non-interest
convertible
due March
Straight bon
0.61 per cen
per cent. lobanks andcompanies
due 2001 Loans from
Welfare Se
PublicCorporatio
due 2001 Secured:
Loans from
Loans from
Welfare Se
Public Cor
due 2001 Total
Current portio
Long-term deb
current porti
Loans fromfinancing houamount is stat
The Company
the same amou
On Februa($56,497 thou
2004 withoutof common st
from ¥1,003.
adjustments, d
2004.
On Februar
agreement wit
due October 2
the obligation
receiving the aCompany. Th
account as ocontingent lia
redeemed.
The long-t
summarized a
2002
2003
2004
2005 and there
Total

6. Researc
Research anyears ended M
1999

¥1,44
9

アニュアルno.2 01.6.9 4:08 PM ページ 12

March 31,
1999
2000
2001
(Millions of yen)Unsecured:Non-interest-bearing
convertible bonds
due March 2004¥- ¥ 2,990 ¥ 2,820
Straight bonds
5,000
0.61 per cent. to 3.19
per cent. loans frombanks and insurancecompanies
due 2001 - 2005
5,500
5,800
4,600
Loans from Pension
Welfare Service
PublicCorporationdue 2001 - 2035
37
51
24
Secured:Loans from banks
1,950
2,600
Loans from Pension
Welfare Service
Public Corporationdue 2001 - 2008
2
1
1
Total
12,48911,442
7,445
Current portion(854)(2,604)(2,502)Long-term debt lesscurrent portion¥ 11,635 ¥ 8,838 ¥ 4,943

7. Income Taxes

March 31,
2001
(Thousands of
U.S. dollars)

Income taxes applicable to the Company and its domestic subsidiaries
comprised corporation tax, inhabitants' taxes and enterprise tax which, inthe aggregate, resulted in statutory tax rates of approximately 46 percent., 42 per cent. and 42 per cent. for 1999, 2000 and 2001, respectively.
Income taxes of the foreign subsidiaries are based generally on the tax
rates applicable in their countries of incorporation. The effective tax rates
reflected in the accompanying consolidated statements of operations
differ from the statutory tax rates primarily due to the effect of permanent
nondeductible expenses for income tax purpose.
The major components of deferred tax assets and liabilities as ofMarch 31, 2000 and 2001 are summarized as follows:$ 22,760-

37,127

2000
2001(Millions of yen)
190
Deferred tax assets:
Employees' retirement
benefits
Accrued employees'
bonuses
Accrual for periodic
repairs
Enterprise tax payable
Net loss carried forward
Other
Total gross deferred tax
assetsValuation allowance
Total deferred tax assets
Deferred tax liabilities:
Deferred gain on saleof properties
Special depreciation
Total deferred tax
liabilities
Deferred tax assets, net-

1060,087(20,195)$ 39,892

Loans from the Pension Welfare Service Public Corporation represent
financing housing loans to the Company's employees and the sameamount is stated as a portion of other assets (loans to the employees).
The Company pays the interest on such loans to the lender and collects
the same amount from the employees as the borrowers.
On February 7, 2000, the Company issued Euro yen 7,000 million($56,497 thousand) non-interest-bearing convertible bonds due March
2004 without security. The convertible bonds are convertible into sharesof common stock of the Company at ¥803 per share, which was adjusted
from ¥1,003.00 per share on February 26, 2001, subject to certain
adjustments, during the period from February 21, 2000 to March 24,
2004.
On February 18, 2000, the Company entered into a debt assumption
agreement with the Sakura Bank regarding its 2.8 per cent. straight bonds
due October 2000 (the "Bonds"), under which the Sakura Bank assumed
the obligation to redeem the Bonds from the bondholders in exchange forreceiving the amount necessary for the redemption of the Bonds from theCompany. The Bonds were eliminated from the Company's books ofaccount as of March 31, 2000; however, the Company still has acontingent liability to the bondholders until the bonds will be fully
redeemed.
The long-term debt by maturity subsequent to March 31, 2001 aresummarized as follows:(Millions of(Thousands ofyen)
U.S. dollars)
2002¥2,502$20,195
2003
2
15
2004
4,422
35,6882005 and thereafter
519
4,189
Total
¥7,445$60,087

2001¥1,443¥2,115¥2,685¥2,446$19,744

237

410

3,312

95
70
1,318
334

104
88
204

836
712
1,651

2,731
(1,500)
1,231

3,252
(40)
3,212

26,255(326)
25,929

(558)
(40)

(517)
(43)

(4,177)
(345)

(598)
¥ 633

(560)
¥2,652(4,522)$21,407

The Companies have defined benefit pension plans and lump-sum
retirement payment plans which cover substantially all employees who
terminate their employment with the Companies. In addition, an
employee, if eligible, may receive additional payments under the plans.
The following information is a summary of the plans:
Retirement benefit obligation:

Projected benefit obligation
Fair value of plan assets
Funded status
Unrecognized actuarial loss
Obligation recognized in the
consolidated balance sheet

Research and development expenses charged to income for the three
years ended March 31, 2001 were as follows:
2000(Millions of yen)

¥ 677

8. Retirement Benefits

6. Research and Development Expenses

1999

2001
(Thousands of
U.S. dollars)

Allowance for retirement benefits

2001(Thousands of
U.S. dollars)$21,676

March 31, 2001
(Millions of yen)(Thousands of
U.S. dollars)¥(9,242)$(74,595)
2,077
16,767(7,165)(57,828)
859
6,936(6,306)(50,892)¥(6,306)$(50,892)

The consolidated subsidiaries have adopted a simplified method aspermitted to calculate projected benefit obligation.

10

アニュアルno.2 01.6.9 4:08 PM ページ 13

11. Leases

Components of net periodic pension cost:
Year ended March 31, 2001
(Millions of yen)(Thousands of
U.S. dollars)Service cost - benefits earned during the year
¥ 394
$ 3,179
Interest cost on projected benefit obligation
309
2,495
Expected return on assets
(69)
(559)
Amortization of transition obligation
5,074
40,959Amortization of prior service cost
(130)
(1,054)
Net periodic pension cost
¥5,578$45,020

Interest Rate

Non-cancelable lease transactions are primarily accounted for as
operating leases (whether such leases are classified as operating or
finance leases) except that lease agreements, which stipulate the transferof ownership of the leased assets to the lessee, are accounted for as
finance leases. Lease expenses related to finance leases accounted for as
operating leases amounted to ¥425 million, ¥699 million and ¥ 455
million ($ 3,677 thousand) for the years ended March 31, 1999, 2000 and
2001, respectively.
Future minimum lease payments subsequent to March 31, 2001 forfinance lease transactions accounted for as operating leases are
summarized as follows:(1) The transition obligation of ¥5,074 ($40,959) was charged toincome as an extraordinary loss for the year ended March 31,
2001.
(2) Prior service cost of ¥130 ($1,054) was recognized as an
extraordinary gain for the year ended March 31, 2001.
(3) The allowance for retirement benefits was determined by thesimplified method by the consolidated subsidiaries and has been
included in service cost - benefits earned during the year.
Assumptions used in the actuarial calculation:
Projected unit credit method
Actuarial cost method:
3.0% per annum
Discount rate:
3.5% per annum
Expected rate of return:Amortization period for
1 yearprior service cost:
Amortization period for
10 years (within the employees' average
actuarial loss:
remaining years of service)
Amortization period for
1 yeartransition obligation:

Due within one year
Due after one year
Total

March 31, 2001
(Millions of yen)(Thousands of
U.S. dollars)¥ 405$3,267638
5,152¥1,043$8,419Interest rate sw
Receipt float
payment fix

Interest rate sw
Receipt float
payment fix

12. Contingent Liabilities
The Company had the following contingent liabilities:
March 31, 2001
(Millions of yen)(Thousands of
U.S. dollars)
As guarantor for housing loans of
employees
As joint guarantor with agencies
regarding lease contracts of
the agencies' customers
Total contingent liabilities

9. Legal Reserve and Additional Paid-In Capital
The Commercial Code of Japan provides that an amount equivalent toat least 10% of all cash appropriations of retained earnings, and exactly
10% of interim cash dividends, be transferred to the legal reserve until
such reserve equals 25% of the stated amount of common stock. The
Code also provides that neither additional paid-in capital nor the legal
reserve is available for dividends, but both may be used to eliminate or
reduce a deficit by resolution of the shareholders or may be transferred tocommon stock by resolution of the Board of Directors.
Retained earnings in the accompanying financial statements include
the legal reserve of ¥552 million ($4,457 thousand) as of March 31,
2001.

¥128

78
¥206

$1,037630$1,667

As to a contingent liability regarding a debt assumption agreement, seeNote 5.

Interest rate sw
Receipt float
payment fix

15. Segme
The businsummarized as
Business segm

13. Derivatives and Hedging Activities
The Company has entered into interest swap contracts to reduce thecost of borrowing. The Company uses these contracts to manage its
exposure to interest rate risks. As a matter of policy, the Company does
not speculate in derivative transactions. The Company does not anticipate
nonperformance by any of the counterparties to the above transactions, allof whom are domestic financial institutions with high credit ratings.
In accordance with the Company's policy, derivative transactions areentered into under the decision-making rules approved by theManagement Strategy Committee of the Company. The department,
which has the responsibility to enter into such contracts, controls the risks
and performance on a daily basis and reports these to management of theCompany, if and when necessary.

10. Stock Option Plan
On June 15, 2000, the shareholders approved a stock option plan for
directors and key employees to purchase shares of the Company's
common stock which had been purchased by the Company on stock
exchanges in accordance with Clause 2 of Article 210-2 of theCommercial Code of Japan. Under this plan, a maximum of 104,000
shares and 51,000 shares may be granted to directors and key employees,
respectively.
The option price is determined, subject to adjustments, by multiplying
the average final price of the Company's common stock traded on theTokyo Stock Exchange in the month prior to the date of the options grantby 1.05.
The Company purchased the maximum number of shares and thesehave been disclosed as treasury stock and stated at their market value of¥230 million ($1,856 thousand) as of March 31, 2000.
The stock options will become exercisable during the period from July
1, 2002 to June 30, 2004.
11

I. Sales andSales to ext
Intersegmentransfers
Total sales
Operating e
Operating i
II. Total as
ciation a
expendit
Total assets
Depreciatio
Capital exp

アニュアルno.2 01.6.9 4:08 PM ページ 14Interest Rate Related Transactions
For the year ended March 31, 1999

For the year ended March 31, 2001
(Including
portion inContract excess of one
Unrealized
amounts
year)
Fair value
loss(Thousands of U.S. dollars)(Including
portion inContract excess of one
Unrealizedyear)
amountsloss
Fair value(Millions of yen)Interest rate swaps:
Receipt floating/payment fixed¥6,000¥(6,000)¥(149)

Interest rate swaps:
Receipt floating/payment fixed¥(149)¥6,000¥(6,000)¥(154)¥1,000¥ (500)¥ (13)$(109)$(109)

14. Subsequent Event
The following appropriations of retained earnings, which have not beenreflected in the accompanying financial statements for the year ended
March 31, 2001, will be approved at a shareholders' meeting held on June
14, 2001:¥(154)For the year ended March 31, 2001
(Including
portion inContract excess of one
Unrealized
amounts
year)
Fair value
loss(Millions of yen)Interest rate swaps:
Receipt floating/payment fixed$(4,035)

The contract amounts in the above tables do not fully represent themarket risk amounts relating to derivative transactions.

For the year ended March 31, 2000
(Including
portion inContract excess of one
Unrealized
amounts
year)
Fair value
loss(Millions of yen)Interest rate swaps:
Receipt floating/payment fixed$8,071(Millions ofyen)Cash dividends(¥3 = $0.024 per share)
Transfer to legal reserve(Thousands of
U.S. dollars)

¥150
15

$1,208121¥ (13)

15. Segment Information
The business segment information of the Company and its consolidated subsidiaries for the years ended March 31, 1999, 2000 and 2001 issummarized as follows:Year ended March 31, 1999

Business segments

Electric
RealElectric Automation
power
components equipment equipment estate leasing

Total

Eliminations
orunallocatedamounts

Consolidated(Millions of yen)
I. Sales and operating income
Sales to external customers
Intersegment sales ortransfers
Total sales
Operating expenses
Operating income (loss)
II. Total assets, depreciation and capital
expenditures
Total assets
Depreciation
Capital expenditures¥ 7,194¥21,250¥12,928¥ 2,503¥43,875

7,194
8,232
¥(1,038)

21,25020,862¥ 388

12,928
12,686
¥ 242

2,503
1,342
¥ 1,161¥¥27,407
1,052
1,327

¥16,350472
250¥14,047
650
2

324
327

12

¥

-

¥43,875

43,875
43,122
¥ 753

¥

(-)
252
(252)

43,87543,374¥ 501¥57,804
2,498
1,906

¥ 2,966-¥60,770
2,498
1,906

アニュアルno.2 01.6.9 4:08 PM ページ 15

Notes:a) Basis of segmentation
Business segments are divided into product categories by the same
criteria as those applied for internal control purposes.
b) Major products in each business segment.
(1) Electric power components:
Motors for household electrical appliances such as air conditioners,
washing machines and other appliances, motors for hot water-supply
facilities, motors for automatic doors, motors for home use, watersupply pumps, power supplies for communication equipment,
equipment for railroad maintenance, electric power tools, bolt-tightening
and other tools.
(2) Electronic equipment
LCD manufacturing equipment (wet cleaning equipment, stripping
equipment, etching equipment, cell assembly equipment, outer leadbonding equipment), semiconductor manufacturing equipment (etchingequipment, ashing equipment, die-bonding equipment, wire-bonding
equipment, automatic molding equipment), media devices manufacturing
equipment (sputtering equipment, vacuum plating equipment),
magnetically levitated transportation systems, high-speed chip
mounting equipment, soldering paste printing equipment, the nondestructive inspection business and other items.
(3) Automation equipment
Picture tube manufacturing equipment, automatic envelope filling andsealing systems, precision parts manufacturing equipment, media

devices manufacturing equipment, laser applied processing equipment,
microwave applied equipment, robots, vending machines (for cigarettes,
food, dry batteries, films, groceries and others), ticket vending machines(for food tickets, admission tickets and other), entrance/exit gate control
systems, environment-related machines (mini-recycling and othe mills )and other itemes.
(4) Real estate leasing
Real estate leasing and management and other business.
c) Included in eliminations or unallocated amounts of operating expenses
are unallocable amounts relating to development expenses incurred forthe entire company as part of the Company's research and development
costs.
d) Included in the eliminations or unallocated amounts of total assets were
unallocable amounts totaling ¥4,006 million and ¥6,581 million for theyears ended March 31, 1999 and 2000, respectively, which primarily
consisted of surplus funds (cash and marketable securities) of theCompany.
e) Included in depreciation was amortization, and in capital expenditures,
additions of long-term prepaid expenses.
f) There were no assets belonging to the electric power components
business at March 31, 1999 and 2000 because this business segment wastransferred to Shibaura Engineering Works Co., Ltd. during the year thenended.

Year ended March 31, 2000
Electric
Electric Automation Real estate
power
components equipment equipment
leasing
I. Sales and operating income
Sales to external customers
Intersegment sales or transfers
Total sales
Operating expenses
Operating income
II. Total assets, depreciation and capital
expenditures
Total assets
Depreciation
Capital expenditures

Total

Notes:a) Change in
In connectioof electric com
equipment into
was made to rePrevious inf
presented for t(Millions of yen)
¥18,519
18,51917,813¥ 706¥39,351
39,351
38,438¥ 913¥15,721
15,721
15,408¥ 313¥ 2,3442,344
1,325¥ 1,019¥75,935
75,93572,984¥ 2,951¥15,966669
728¥35,857
1,018
714¥16,340
540
111¥13,401652
11¥81,564
2,879
1,564

Year ended March 31, 2001
AutomationFinesystems & Vending
mechatronics vaccum machine & Real estateleasingequipment equipment systems
Total
I. Sales and operating income
Sales to external customers
Intersegment sales or transfers
Total sales
Operating expenses
Operating income
II. Total assets, depreciation and capital
expenditures
Total assets
Depreciation
Capital expenditures

Eliminations
orunallocated Consolidated
amounts

I. Sales andSales to ext
Intersegmentransfers
Total sales
Operating e
Operating i
II. Total as
ciation a
expendit
Total assets
Depreciatio
Capital exp

¥

¥

¥

(-)
216
(216)

¥75,935
75,93573,200¥ 2,735

1,526-¥83,090
2,879
1,564

Eliminations
orunallocated Consolidated
amounts(Millions of yen)
¥46,367¥46,367
44,269¥ 2,098¥15,507¥15,507
14,849¥ 658¥ 7,029¥ 7,7216,966¥
63¥ 2,214¥ 2,214
1,286
¥ 928

¥71,117¥71,117
67,370¥ 3,747

¥

(-)
485
(485)

¥71,117¥71,11767,855¥ 3,262¥34,617838
533¥20,223454
212¥ 5,795
124
197¥12,736649
10¥73,371
2,065
952¥ 2,023-¥75,394
2,065
952

13

¥

I. Sales andoperatingincomeSales to ext
customers
Intersegmensales or tr
Total sales
Operatingexpenses
Operatingincome (lII. Total as
depreciati
and capita
expenditu
Total assets
Depreciatio
Capitalexpenditu

アニュアルno.2 01.6.9 4:08 PM ページ 16

I. Sales and operating income
Sales to external customers
Intersegment sales ortransfers
Total sales
Operating expenses
Operating income
II. Total assets, depreciation and capital
expenditures
Total assets
Depreciation
Capital expenditures

Year ended March 31, 2001
AutomationFinesystems & Vending
mechatronics vaccum machine & Real estate
equipment equipment systems
leasing
Total(Thousands of U.S. dollars)Eliminations
orunallocated Consolidated
amounts$374,231$125,157$56,735$ 17,866$573,989$-$573,989$374,231
357,302$ 16,929$125,157
119,847$ 5,310$56,735
56,222$ 513$ 17,866
10,374$ 7,492$573,989
543,745$ 30,244(-)- $573,989
3,919
547,664$ (3,919) $ 26,325$279,396
6,764
4,307

$163,222
3,664
1,709

$46,767
1,002
1,588

$102,793
5,240
80$592,178
16,6707,684$ 16,330-$608,508
16,6707,684

Notes:a) Change in components of segments
In connection with the business transfer to Shibaura Engineering Works Co., Ltd., the Company moved its electric power tools section to the segmentof electric components and the name was then changed to electric power components. In addition, the Company divided the segment of applied electric
equipment into two segments: electric equipment and automation equipment following the merger with Toshiba Mechatronics Corporation. This change
was made to reflect more accurately the actual business of the Company.
Previous information by business segment, for the year ended March 31, 2000, which would have been applied under the same categories as thosepresented for the years ended March 31, 2001, is as follows:Year ended March 31, 2000
Automation
Fine
Vendingmechatro- systems &Electric
machine &vacuumnics
Real estate
powersystems components
equipment equipment
leasing
Total

Eliminations
orunallocatedamounts

Consolidated(Millions of yen)
I. Sales andoperatingincomeSales to externalcustomers¥ 35,213
Intersegment
sales or transfers
Total sales
35,213Operatingexpenses
34,549Operatingincome (loss)¥
664
II. Total assets,
depreciationand capital
expenditures
Total assets¥ 29,468
Depreciation
817
Capitalexpenditures
701¥ 13,619¥ 6,240¥ 18,519¥ 2,344¥ 75,935

13,6196,240

18,5192,343

12,8206,477

17,813799¥ (237)¥¥ 16,964
570
74

¥

-

¥ 75,935

75,935

(-)
-

5,935

1,325

72,984216

73,200706¥ 1,019¥ 2,951¥(216)¥ 2,735¥ 5,765171¥ 15,966
669¥13,401
652¥ 81,564
2,879¥ 1,526-¥ 83,090
2,879

50

728

11

1,564

-

1,564

14

¥

アニュアルno.2 01.6.9 4:08 PM ページ 17

Shibab) Major products in each business segment(1) Fine Mechatronics Equipment
FPD manufacturing equipment (wet cleaning equipment,
stripping equipment, etching equipment, developing equipment,
cell assembly equipment, outer lead bonding equipment),
semiconductor manufacturing equipment (wet cleaning
equipment, etching equipment, ashing equipment, die-bonding
equipment, wire-bonding equipment, inner lead bonding
equipment, flip chip bonding equipment, auto molding
equipment), the non-destructive inspection business, equipment
for railroad maintenance, and other items.
(2) Automation Systems & Vacuum Equipment
Picture tube manufacturing equipment, automatic envelope
filling and sealing systems, battery manufacturing equipment,
precision parts manufacturing equipment, laser applied
processing equipment, microwave applied equipment, cartesianrobots, media devices manufacturing equipment (sputtering
equipment, vacuum bonding equipment), industrial vacuum
plating equipment, vacuum pumps, and other items.
(3) Vending Machine & Systems
Vending machines, ticket vending machines, entrance/exit
gate control systems, and other(4) Real estate leasing
Real estate leasing and management and other business.
c) Included in eliminations or unallocated amounts of operating
expenses are unallocable amounts relating to development
expenses incurred for the entire company as part of theCompany's research and development costs.
d) Included in the eliminations or unallocated amounts of total
assets were unallocable amounts totaling ¥5,492 million ($44,324
thousand) for the years ended March 31, 2001, respectively,
which primarily consisted of surplus funds (cash and marketablesecurities) of the Company.
e) Included in depreciation was amortization of and additions tolong-term prepaid expenses.

Geographical segments
No information by geographical segment for the years ended March 31, 1998,
1999 and 2000 has been presented due to the fact that the net sales and total
assets of operations in Japan exceeded 90% of those in all segments.

Re

Overseas sales

Year ended March 31, 1999
Northeastern
Asia
Other
Total
(Millions of yen)
I. Overseas sales¥ 6,508¥2,536¥ 9,044
II. Consolidatednet sales
43,875
III. % of consolidated net sales 14.8%
5.8%
20.6%
Year ended March 31, 2000
Northeastern
Asia
Other
Total
(Millions of yen)
I. Overseas sales¥24,267
II. Consolidated net sales
III. % of consolidated net sales 32.0%¥3,232
4.2%¥27,499
75,935
36.2%

Year ended March 31, 2001
Northeastern
Asia
Other
Total
(Millions of yen)
I. Overseas sales¥23,569
II. Consolidated net sales
III. % of consolidated net sales 33.1%¥4,378
6.2%¥27,947
71,117
39.3%

Year ended March 31, 2001
Northeastern
Asia
Other
Total
(Thousands of U.S. dollars)
I. Overseas sales$190,226
II. Consolidated net sales
III. % of consolidated net sales 33.1%$35,339 $225,565
573,989
6.2%
39.3%

Notes:a) Overseas sales are those of the Company and its consolidated subsidiaries incountries or regions other than Japan.
b) The division of overseas sales into countries or regions and the names of suchcountries or regions are as follows:(1) Overseas sales by country or region:
Geographical areas are divided into categories based on their geographicalproximity.
(2) Major countries or regions included in each geographical area:
Northeastern Asia
- Korea, Taiwan
Other- U.S.A., Netherlands

15

The Board
Shibaura M
We havconsolidate
shareholder
Our exami
applied in J
consideredIn our opof Shibaur
consolidate
in conform
except forsegments.
As descristandards f
retirement b
preparation
The U.S.
2001 are pr
amounts anJune 14,

See NoCorporation

アニュアルno.2 01.6.9 4:08 PM ページ 18

Shibaura Mechatronics Corporation and Subsidiaries

Report of Independent Certified Public Accountants

Certified Public Accountantshibiya Kokusai Bldg.
2-2-3, Uchisaiwai-cho
Chiyoda-ku, Tokyo, 100-0011
C.P.O. Box 1196, Tokyo 100-8641

Phone:03 3503-1100
Fax: 03 3503-1197

The Board of Directors
Shibaura Mechatronics Corporation
We have examined the accompanying consolidated balance sheets of Shibaura Mechatronics Corporation andconsolidated subsidiaries as of March 31, 1999, 2000 and 2001, and the related consolidated statements of operations,shareholders' equity, and cash flows for each of the three years in the period ended March 31, 2000, all expressed in yen.
Our examinations were made in accordance with auditing standards, procedures and practices generally accepted andapplied in Japan and, accordingly, included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, the consolidated financial statements, expressed in yen, present fairly the consolidated financial positionof Shibaura Mechatronics Corporation and consolidated subsidiaries at March 31, 1999, 2000 and 2001, and theconsolidated results of their operations and their cash flows for each of the three years in the period ended March 31, 2001
in conformity with accounting principles and practices generally accepted in Japan, consistently applied during the period
except for the change described in Note 15, with which we concur, in the method of presentation of their businesssegments.
As described in Note 1, Shibaura Mechatronics Corporation and consolidated subsidiaries have adopted new accounting
standards for consolidation and tax-effect accounting effective the year ended March 31, 2000, and for employees'
retirement benefits, financial instruments, and foreign currency translations effective the year ended March 31, 2001 in the
preparation of their consolidated financial statements.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31,
2001 are presented solely for convenience. Our examination also included the translation of yen amounts into U.S. dollar
amounts and, in our opinion, such translation has been made on the basis described in Note 1.

June 14, 2001

See Note 1 which explains the basis of preparation of the consolidated financial statements of Shibaura Mechatronics
Corporation and consolidated subsidiaries under Japanese accounting principles and practices.

16アニュアルno.2 01.6.9 4:08 PM ページ 19

Supplemental Information
Shibaura Mechatronics Corporation

Non-Consolidated Balance Sheets

March 31,
2000
(Millions of yen)

1999

March 31,
2001
(Thousands of
U.S. dollars)

2001

AssetsCurrent assets:
Cash and bank deposits¥ 2,539¥ 4,299¥ 2,857$ 23,059

344

473

0

0

Notes

4,493

3,732

2,960

23,890Accounts

14,206

16,184

18,533

149,584

(115)

(87)

(106)

(856)

10,855

15,29519,924

160,807

-

271

386

3,112

611

722

802

6,476

32,93340,88945,356

366,072

254

138

137

1,107

Buildings

27,33827,46827,664

223,281

Machinery and equipment

10,071

9,919

10,26982,878Construction in progress

148

219

78

631

Total

37,81137,744

38,148307,897

Accumulated depreciation(13,434)(15,044)(16,612)(134,080)

24,37722,70021,536

173,817

483

399

495

3,997

1,149

1,590

447

3,608

Deferred taxes

-

96

2,064

16,658Other assets

888

1,017

818

6,600

Allowance for doubtful accounts

(0)

(0)

(-)

(-)

Total investments and other assets

2,520

3,102

3,824

30,863¥ 59,830¥ 66,691¥ 70,716$ 570,752

Marketable securities
Notes and accounts receivable, trade:

Allowance for doubtful accounts
Inventories
Deferred taxes
Other current assets
Total current assets
Property, plant and equipment:
Land

Net property, plant and equipment
Investments and other assets:
Investment securities
Investments in subsidiaries and affiliates

Total assets

17

Liabilities a
Current liab
Short-term
Current p
Notes and
Notes
AccounOther
Advances
AccruedAccrued
Other cur
Total curreLong-term
Bonds
Long-term
Allowanc
Directors
Accrual f
Other lon
Total longShareholdeCommonAuthoriIssued a
45,86549,86350,033
Additiona
Legal res
Retained
Net unrea
Total share
Total liabil

アニュアルno.2 01.6.9 4:08 PM ページ 20

Liabilities and shareholders' equity
Current liabilities:
Short-term bank loans
Current portion of long-term debt
Notes and accounts payable:
Notes
Accounts
Other
Advances from customers
Accrued expenses
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities:
Bonds
Long-term debt
Allowance for retirement benefits
Directors' retirement benefits
Accrual for periodic repairs
Other long-term liabilities
Total long-term liabilities
Shareholders' equity:
Common stock, ¥50 par value:
Authorized: 100,000,000 shares
Issued and outstanding:
45,865,834 shares at March 31, 1999,
49,863,822 shares at March 31, 2000,
50,033,312 shares at March 31, 2001
Additional paid-in capital
Legal reserve
Retained earnings
Net unrealized holding gain on other securities
Total shareholders' equity
Total liabilities and shareholders' equity

1999

March 31,
2000
(Millions of yen)

2001

¥11,810854¥ 5,970
2,603¥ 9,578
2,502$ 77,304
20,195

4,950
4,675
95
594
3,032
63
208
26,281

7,868
11,331
51
554
4,045
772
147
33,341

5,834
14,556
96
214
4,098
555
126
37,55947,088117,480779
1,730
33,073
4,480
1,013
303,142

5,000
6,635
1,891
223
202
3,000
16,951

2,990
4,025
1,796
134
229
3,000
12,174

2,820
2,023
6,174
118
248
3,000
14,38322,76016,32549,833949
2,005
24,213116,085

3,776
7,760
487
4,575
16,598¥59,830

5,783
9,763
500
5,130
21,176¥66,691

5,868
9,848
538
2,504
16
18,774¥70,716

47,361
79,481
4,342
20,211130
151,525$570,752

18

March 31,
2001
(Thousands of
U.S. dollars)アニュアルno.2 01.6.9 4:08 PM ページ 1

Supplemental Information
Shibaura Mechatronics Corporation

Non-Consolidated Statements of Operations

Year ended March 31,
1999
2000
2001
(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain on sale of land
Cumulative effect of initialadoption of accounting for
retirement benefits
Loss on sale of investment in affiliates
Special severance payments
Gain on transfer of business
Other, net
Income (loss) before income taxes
Income taxes:
Current
Deferred
Net income (loss)¥41,548
32,549
8,999
8,678
321

¥52,562
42,681
9,881
7,886
1,995

¥63,149
52,376
10,7738,124
2,649$509,681
422,734
86,94765,567
21,380

113
(437)
-

30
(336)
932

32
(185)
220

259
(1,501)
1,782

422
(115)
304

(991)
(497)
1,133

(5,055)(1,190)(117)(3,646)(40,806)(9,604)(944)(29,434)

92
212

795
(272)
¥ 610

660
(2,093)¥ (2,213)

5,326(16,898)$ (17,862)

¥

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

¥ 4.633.00

19Year ended
March 31,
2001
(Thousands of
U.S. dollars)¥ 13.18
5.00(U.S. dollars)¥ (44.25)
5.00$(0.35)
0.04

財務-mat3.3 01.6.9 4:23 PM ページ 1

2-5-1,Kasama,Sakae-ku,
Yokohama,Japan,247-8610
PHONE : +81-45-897-2421
FAX : +81-45-897-2470
http://www.shibaura.co.jp/
Printed on Recycled Paper
SEB-0003B 1T 0106