ANNUAL REPORT 2020
Year ended March 31, 2020

ANNUAL REPORT 2020
ProfileShibaura Mechatronics was established in 1939 as Shibaura Engineering Works Co., Ltd. Initially, our primary focus was on
the motor business, but in 1998 we struck out in a new direction, and reestablished ourselves as a producer of manufacturing
equipment for flat panel displays (FPDs) and semiconductors. We also took on a new name, Shibaura Mechatronics Corporation.
Extensive know-how and skills we have cultivated over many years guide us in delivering total solutions in areas as diverse as
high-accuracy mechatronics, cleaning, vacuum processing, sputtering, etching and bonding technologies. Our capabilities range
from the development of manufacturing equipment for FPDs, semiconductors, electronic components and optical thin films, tothe provision of comprehensive service support.

History
1932
Tokyo Electric Company

1939

1949

1991 1996

Oct.,1998

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

Shibaura Engineering Works Co., Ltd.

(Industrial Mechatronics Business)

Toshiba Automation Co., Ltd.

Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Toshiba Mechatronics Co., Ltd.

Manufacturing equipment for FPDs,
semiconductors and others

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

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

To Our Shareholders・・・・・・・・・・・・・・・ 02

Financial Review・・・・・・・・・・・・・・・・・ 03

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

Financial Section・・・・・・・・・・・・・・・・・ 05

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

Directors, Vice Presidents and Auditors・・・・・ 52

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

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

Financial Highlights
Year ended
March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

Year ended March 31,
2020

2019

2018

2017

2016

$ 433,170
			 428,485
			 28,700
			 17,866(Millions of yen)

Consolidated

Net sales￥ 47,141		 ￥ 53,090		 ￥ 49,257		 ￥ 42,737		 ￥ 45,550
Orders received		 46,632
51,021 		 53,355 		 42,651 		 45,077
Operating income 		Net income 		

3,123 		 4,000 		 2,498 		 1,500 		 1,292
1,944 		 2,481 		 1,747 		 931 		
743

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,389		2,231		2,729		

1,556		1,717		2,743		

1,406		1,126		2,492		

1,566		1,222		2,210		

1,411
1,536
2,065

Total assets		 57,421		

61,967		

59,939		

53,721		

56,253

			 181,201

Net assets		 19,720		

18,369		

16,129		

16,533		

15,675(U.S. dollars)

			
			
			

			 527,627

		 $ 4.05(yen)￥ 440.73 		 ￥ 562.90		 ￥ 365.82		 ￥ 188.44		 ￥ 150.41

Net income per share

Number of employees		

1,260		

1,221		

12,766
20,49725,076

1,207		

1,202		

		

1,260

1,177

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥108.83 = U.S.$1.00, as of March 31, 2020.
Note 2 : With an effective date of October 1, 2018, the Company conducted a stock consolidation at a ratio of one share for every 10 shares of common stock.
Net income per share is calculated on the assumption that the share consolidation took place in April 2015.

Net Sales

45.5(¥Billions)49.3

Orders Received

53.4

53.1
47.1

42.7

45.1

(¥Billions)Operating Income(¥Billions)

Net Income(¥Billions)

51.0
46.6

42.7

4.0
3.1
2.5
1.3

'16

'17

'18

'19

'20

'16

'17

'18

'19

'20

'16

2.5

'17

1.9

1.7

1.5

'18

'19

'20

0.7

0.9

'16

'17

'18

'19

'20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202001

To Our Shareholders

We will drive growth by developing and launching strong
products, and continue to reinforce our management structure.
In FY2019, the business environment of the Shibaura
Mechatronics Group became more uncertain due to the effectsof US-China trade friction and the global spread of COVID-19.

Looking at the FY2020 business environment, we anticipate
continued capital investment in the FPD industry, mainly for
OLED.

The FPD (Flat Panel Display) industry saw continued capital
investment in equipment, primarily in China, for both largesize panels and small- and medium-sized panels, though there
were some cases of postponed delivery and delayed investment
decisions.

The semiconductor industry is expected to see a recovery
in capital investment for memories, and capital investment
for logic and foundry is expected to remain firm, largely for
applications in advanced fields.

In the semiconductor industry, capital investment remained
firm in such areas as logic and foundry, and in China; but one
area, memories, saw delays in investment decisions, and in therecovery of capital investment. In addition, capital investment
continued to be restrained at OSAT, a back-end contract
manufacturer.
In these circumstances, our business results for FY2019 were as
follow.
Orders received declined to ¥46,632 million, reflecting delays
in capital investment decisions and investment restraint. Net
sales decreased to 47,141 million yen, on factors that included
decreased orders. Operating income declined to 3,123 million
yen, reflecting such factors as lower sales.

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

A medium-to-long term increase in capital investment can be
expected, against the backdrop of expanded semiconductor and
FPD applications, in such areas as IoT, 5G communications and AI.
However, one source of concern is the continuing uncertain
outlook due to the impact of the global spread of COVID-19.
In this business environment, Shibaura Group will continue topromote the development and launch of strong products, andmake every effort to expand orders and grow the business.
We will also continue to direct effort to strengthening ourmanagement structure.

Shigeki Fujita
Representative Director
President and Chief Executive Officer

Financial Review
Results Summarycomponents.

In FY2019 Shibaura Mechatronics recorded orders received

year. Segment income decreased on factors that includedof 46,632 million yen (a year-on-year decrease of 8.6%),

lower sales.

Orders received and net sales were both lower year-on-

net sales of 47,141 million yen (a year-on-year decrease of
11.2%), operating income of 3,123 million yen (a year-onyear decrease of 21.9%), ordinary income of 2,769 million yen(a year-on-year decrease of 26.8%), and net income of 1,944
million yen (a year-on-year decrease of 21.6%).
The results for each business segment were as follows:

1. Fine Mechatronics Segment
Net sales were 27,779 million yen, down 1.8% year-onyear, and segment income was 1,467 million yen, a 56.5%
improvement over the previous year.
While orders received for FPD front-end process equipment
increased, mainly for small- and medium-sized panels, net
sales declined as a result of a number of decisions to delay
deliveries and postpone investment decisions.
Net sales of equipment for semiconductor front-end
processes increased on robust orders received, mainly for
logic and foundry and wafers.
The segment as a whole saw higher orders received thanin the previous year, but net sales fell slightly. Segment
income increased, reflecting changes in the product mix,
plus higher sales of equipment for semiconductor frontend processes.

3. Vending Machines and Systems Segment
Net sales were 2,251 million yen, a year-on-year increaseof 7.5%, though segment income was 3 million yen, down
78.7%.
Net sales of ticket vending machines and fromdevelopment contracts were high and contributed tothe segment’s higher overall sales. However, segment
income decreased as a result of changes in the productcomposition and sluggish sales of services.
4. Real Estate Leasing Segment
Rental income from real estate was largely in line withplans, with net sales of ¥1,914 million, a 3.8% decreaseyear-on-year, and segment income of ¥562 million, a 1.1%
increase.

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 2,729 million yen, including
development costs of 407 million yen for basic technologies that
could not be appropriated to any specific segment.
R&D is advanced by the development and design departments

2. Mechatronics Systems Segment
Net sales were 15,197 million yen, down 26.6% year-onyear, and segment income also fell to 1,404 million yen, a
52.5% decrease.
In equipment for FPD back-end processes, we saw delayedinvestment decisions and investment restraint for both large
panels and for small- and medium-sized panels, Orders
were sluggish compared to the boom of the previous year.
In equipment for semiconductor back-end processes, there
was continued progress in investment in advanced fields,
but a tendency to restraint in investment in parts for mobile
devices.
In vacuum application equipment we again saw restrained
investment, particularly in automotive and electronic

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

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 1,214 million yen.
In flat panel manufacturing equipment, we have developed
a wet process device for high-definition small and mediumsized panels and an inkjet coating device for alignment

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202003

Financial Review

films, and we have made progress on development of ayen. This was mainly due to an increase of 1,944 million yen,vacuum firing furnace for flexible OLED.

the result of recording net income attributable to shareholders

In semiconductor equipment we worked on theof the parent company.

development of wet cleaning equipment that can be usedin next generation devices, single wafer nitride film wet
etching equipment and dry etching equipment for masks.

Cash FlowsThe balance of cash and cash equivalents (hereinafter referred

2. Mechatronics Systems Segment
R&D expenses for the segment totaled 935 million yen.
In liquid crystal and OLED module assembly equipment,
we worked on the development of OLB equipment forsmall- and medium-sized panels, and for large-sized highdefinition panels.
In semiconductor assembly equipment, we developed
high-speed, high-precision bonding equipment for FOWLP / PLP and μLED.
In the field of vacuum equipment, we are working on thedevelopment of sputtering equipment for optical thin films
and for electromagnetic wave shielding films.

to as “cash”) at the end of the period was 12,709 million yen,a year-on-year decrease of 461 million yen.
Net cash from operating activities increased by 1,279 million
yen (following an increase of 1,461 million yen in the previous
fiscal year). This was mainly due to increased funds resulting
from recording net income before adjustments for taxes and adecrease in trade receivables, thought there was a decrease in
cash due to a decrease in trade payables.
Cash from in investment activities decreased by 901 million
yen (following a decrease of 721 million yen in the previous
fiscal year). This was mainly due to a decrease in cash
following the acquisition of fixed assets.
Free cash flow, the aggregate of cash flow from operations

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 171 million yen.
In the ticket vending machine field, we continued todevelop ticket vending machines that accept cash andcredit card payments. We have also developed cashlessticket machines that accept credit, electronic money, and
QR code payments.

Financial Condition
Total assets at the end of the current period were 4,545
million yen lower than at the end of the previous fiscal year,
and stood at 57,421 million yen. This was mainly due todecreases in cash and deposits of 461 million yen, in notes
and accounts receivable of 2,925 million yen, and in work inprocess of 412 million yen.
Liabilities decreased by 5,897 million yen to 37,701 million
yen. This was mainly due to decreases in notes and accounts
payable-trade of 4,026 million yen, in accrued income taxesof 1,005 million yen, and in advances received of 590 million
yen.
Net assets increased by 1,351 million yen to 19,720 million

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020and cash flow from investment activities, increased by 378
million yen (following an increase of 740 million yen in theprevious fiscal year).
Cash from financing activities decreased by 826 million yen(following a decrease of 870 million yen in the previous fiscal
year). This was mainly due to a decrease in cash from thepayment of dividends.

FINANCIAL SECTION
ANNUAL REPORT 2020 Year ended March 31, 2020

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202005

Financial Section

Contents
Consolidated Balance Sheet・ ・・・・・・・・・・・・・ 07
Consolidated Statement of Operations・ ・・・・・・・・ 09

Consolidated Statement of Comprehensive Income・・・・ 10
Consolidated Statement of Changes in Net Assets・ ・・・ 11
Consolidated Statement of Cash Flows・ ・・・・・・・・ 12
Notes to Consolidated Financial Statements・ ・・・・・・ 13
Independent Auditor's Report ・ ・・・・・・・・・・・・ 49

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2020
2019(Millions of yen)March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Notes 15 and 18)
Notes and accounts receivable, trade (Note 15)
Electronically recorded monetary claims (Note 15)
Allowance for doubtful accounts
Inventories (Note 6)
Accounts receivable, other
Other current assets
Total current assets¥ 12,725
27,318497(1,074)
2,869
1,684
450
44,469¥ 13,186
30,243
495
(198)
3,477
1,903
395
49,501$ 116,923
251,012
4,569(9,865)26,362
15,472
4,138
408,611

Property, plant and equipment:
Land (Note 16)
Buildings and structures (Note 16)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11929,472
6,029
86
975
36,681(25,577)
11,104

119
28,919
5,942
297
458
35,735(25,199)
10,536

1,096
270,807
55,398796
8,961
337,058(235,022)
102,036

80
768
1,005
(5)
1,848

124
826
981
(1)
1,930

732
7,058
9,234
(44)
16,980¥ 57,421¥ 61,967$ 527,627

Investments and other assets:
Investments in securities (Notes 5 and 15)
Deferred tax assets (Note 9)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

3
SHIBAURA MECHATRONICS CORPORATION
Annual Report 202007

Financial Section

March 31,2020
2019(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade (Note 15)
Short-term bank loans (Notes 7 and 15)
Current portion of long-term debt (Notes 7 and 15)
Current portion of lease obligations (Note 7)
Advances received
Accrued expenses
Accrued income taxes (Note 9)
Provision for directors’ bonuses
Provision for loss on order received
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 7 and 15)
Net defined benefit liability (Note 12)
Lease obligations (Note 7)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term guarantee deposits (Note 15)
Total long-term liabilities
Total liabilities

March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

¥ 11,107
5,100
1,200
15
484
3,290
151
37
713
22,097¥ 15,134
5,100
4,500
5
1,074
3,519
1,157
39
3
769
31,300$ 102,061
46,862
11,026142
4,446
30,233
1,390
339
6,547
203,046

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

1,500
7,349
14
2
15
304
36
3,078
12,29843,59842,26868,475
539
22
193
2,763
836
28,284
143,380
346,426

6,762
9,038
8,716
(4,023)
20,493

6,762
9,038
7,391
(4,038)19,15362,12983,04480,089(36,957)
188,3055
260(1,038)(773)
19,720¥ 57,421

29
282(1,095)(784)
18,369¥ 61,967

47
2,391(9,542)(7,104)
181,201$ 527,627

Contingent liabilities (Note 13)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 10,000,000 shares
Issued: 5,192,619 shares at March 31, 2020 and
2019
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.

08

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20204

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2020
2019
(Millions of yen)

Net sales
Cost of sales (Notes 6,8 and 16)
Gross profit
Selling, general and administrative expenses(Notes 8,12 and 20)
Operating income
Other income (expenses):
Interest and dividend income
Gain on sales of investment securities
Foreign exchange gain (loss), net
Interest expense
Commission fee
Gain(loss) on valuation of derivatives, net
Office relocation expenses
Other, net
Ordinary income
Income before income taxes
Income taxes (Note 9):
Current
Deferred
Net income
Net income attributable to owners of parent

Year ended
March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

¥ 47,141
32,287
14,854¥ 53,090
37,69915,391$ 433,170
296,677
136,493

11,731

11,391

107,793

3,123

4,000

28,700

9
22
(28)
(120)
(30)
23
(154)
(76)
2,769
2,769

9
119
(129)
(29)
(237)
50
3,783
3,783

87
204
(254)
(1,104)(277)
210(1,416)(701)
25,44925,449

764
61
825
1,944

1,333
(31)
1,302
2,481

7,018
565
7,583
17,866¥ 1,944¥ 2,481$ 17,866

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

5

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202009

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2020
2019
(Millions of yen)

Net income
Other comprehensive income: (Note 10)
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof parent

Year ended
March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

¥ 1,944¥ 2,481$ 17,866

(24)
57
(22)
11
¥ 1,955

(2)
177
(79)
96
¥ 2,577

(221)
524
(203)
100
$ 17,966

1,955

2,577

17,966

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

6

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Financial Section

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

Balance as of April 1, 2018
Net income
Dividends of surplus (Note 11)
Purchase of treasury shares
Disposal of treasury shares
Net change during the year
Balance as of April 1, 2019

Number ofshares ofcommonstock

Commonstock

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

–

–

–

–

Retainedearnings

Treasurystock(Millions of yen)
¥ 5,264¥ (4,054)
2,481
–
(354)
–
–
(0)
–
16

Valuation and translation adjustments
Valuationdifference
RemeasurForeignonements ofcurrency
availabledefinedtranslation
for-salebenefitadjustments
securities
plans

Total net
assets

¥ 31
–
–
–
–

¥ 361
–
–
–
–

¥ (1,273)––––¥ 16,129
2,481
(354)
(0)
16

–

(1)

(79)

178

98

51,926,194¥ 6,762¥ 9,038¥ 7,391¥ (4,038)

¥ 29

¥ 282

¥ (1,095)¥ 18,369

Net income
Dividends of surplus (Note 11)
Purchase of treasury shares
Disposal of treasury shares

–
–
–
–

–
–
–
–

–
–
–
–

1,944
(619)
–
–

–
–
(1)
16

–
–
–
–

–
–
–
–

–
–
–
–

1,944
(619)
(1)
16

Net change during the year
Balance as of March 31, 2020

–

–

–

–

–

(24)

(22)

57

11

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

¥ 5

¥ 260

¥ (1,038)¥ 19,720(Thousands of U.S. dollars) (Note 1)
Balance as of April 1, 2019

$ 62,129$ 83,044$ 67,915$(37,101)$ 268$ 2,594$ (10,066)$ 168,783

Net income––

17,866––––

17,866

Dividends of surplus (Note 11)––(5,692)

–

–

–

–

(5,692)

Purchase of treasury shares
Disposal of treasury shares

–
–

–
–

–
–

(7)
151

–
–

–
–

–
–

(7)
151

Net change during the year

–

–

–

–

(221)

(203)

524

100

$ 62,129$83,044$ 80,089$ (36,957)$ 47$ 2,391$ (9,542)$ 181,201

Balance as of March 31, 2020

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

7

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202011

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2020
2019
(Millions of yen)

Net cash provided by Operating activities
Income before income taxes and non-controlling interest
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase in net defined benefit liability
Interest and dividend income
Interest expense
Foreign exchange losses
Decrease in advances received
Decrease (increase) in notes and accounts receivable-trade
Increase in inventories
Decrease in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Year ended
March 31,
2020
(Thousands of
U.S. dollars)(Note 1)

¥ 2,769
1,389
879
160
(9)
120
(15)
(579)
2,914
(537)
(4,149)
(39)
201
3,104
10
(121)
(1,714)
1,279¥ 3,783
1,556
(169)
218
(9)
129
(21)
(138)
(1,794)
(989)
(270)
67
(77)
2,286
9
(130)
(703)
1,462

$ 25,449
12,766
8,076
1,471
(87)
1,104
(139)
(5,318)26,773(4,940)(38,122)
(355)
1,847
28,52587(1,112)(15,747)
11,753

Net cash used in Investment activities
Payments into time deposits
Proceeds from sales of investment securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash used in investment activities

(0)
36
(843)
177
(271)
（901）

(0)
(618)
0
(104)
（722）

(0)
328
(7,743)
1,629(2,492)(8,278)Net cash used in Financing activities
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchases of treasury stock
Cash dividends paid
Net cash used in financing activities

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

(16)
(500)
(0)
(354)
(870)

(53)
39,511(41,349)(7)(5,692)(7,590)(14)(462)
13,171¥ 12,709

(83)
(213)
13,384¥ 13,171(125)(4,240)121,027$ 116,787

Effect of exchange rate change on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 18)

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

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20208

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2020
1. Basis of Presentation
Shibaura Mechatronics Corporation (the “Company”) and its consolidated subsidiaries(collectively, the “Companies” or the “Group”) maintain their accounting records and prepare
their financial statements in accordance with accounting principles generally accepted inJapan. The accompanying consolidated financial statements have been prepared inaccordance with accounting principles generally accepted in Japan, which differ in certain
respects from the application and disclosure requirements of International Financial
Reporting Standards, and have been compiled from the consolidated financial statements
prepared by the Company as required by the Financial Instruments and Exchange Act ofJapan. Certain reclassifications have been made to present the accompanying consolidated
financial statements in a format that is familiar to readers outside Japan. In addition, the nonconsolidated balance sheet of the Company as of March 31, 2020 and the non-consolidated
statement of operations for the year then ended are included, as other information, in theaccompanying 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 ¥ 108.83 = U.S. $ 1.00, the approximate
rate of exchange in effect on March 31, 2020. This translation should not be construed as arepresentation that yen could be converted into U.S. dollars at the above or any other rate.

9
SHIBAURA MECHATRONICS CORPORATION
Annual Report 202013

Financial Section

2.

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

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202010

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 profitability has declined, thebook value is reduced accordingly)

Semi-finished goods and work in process— individual cost method (in cases
where profitability has declined, thebook value is reduced accordingly)(7) Depreciation and amortization (except for leased assets)
Depreciation of property, plant and equipment is generally computed by the decliningbalance method, based on the estimated useful lives of the respective assets. The
straight-line method is applied to certain research facilities acquired during the year
ended March 31, 1995, and buildings acquired on or after April 1, 1998. Foreign
consolidated subsidiaries compute depreciation primarily using the straight-line method.
The following summarizes the estimated useful lives of property, plant and equipmentby major category:
Buildings and structures
Machinery and equipment

3 – 60 years
2 – 17 years

Intangible assets, which are included in “other assets” of the accompanying consolidatedbalance sheet, are amortized by the straight-line method. Capitalized software forinternal use is amortized by the straight-line method over a period of 5 years, based on
the estimated useful life of the software.
(8) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to coverpossible losses on the collection of receivables. The amount of the allowance isdetermined based on the Company’s historical experience with write-offs, plus anestimate of specific doubtful accounts based on a review of the collectibility of
individual receivables.
(9) Provision for directors’ bonuses
To provide for the payment of bonuses to directors and statutory auditors, an allowance
is made based on the projected amount incurred.

11

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202015

Financial Section

2.

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

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202012

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
Interest rate swap agreements･･･

Hedged items
Interest on long-term debt

The Company uses derivative transactions to hedge its exposure to interest rate
fluctuation risk on long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
(17) Research and development expenses
Research and development expenses are expensed as incurred and included in cost of
sales or selling, general and administrative expenses.
(18) Consumption tax
The tax-excluded method is used with respect to consumption tax and local consumption
taxes.
(19) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.
Application of tax effect accounting on transition from the consolidated taxation system
to the group tax sharing system
With regard to the transition to the group tax sharing system introduced by the “ActPartially Amending the Income Tax Act, etc.” (Act No. 8 of 2020) and items under the
non-consolidated taxation system reviewed in line with the transition to the group tax
sharing system, the Company and certain consolidated subsidiaries have applied theprovisions of the Tax Act before the revisions in determining the amount of deferred tax
assets and liabilities pursuant to Paragraph 3 of the “Practical Solution on the Treatment
of Tax Effect Accounting for the Transition from the Consolidated Taxation System to
the Group Tax Sharing System” (ASBJ PITF No. 39, March 31, 2020), instead of
applying Paragraph 44 of the “Implementation Guidance on Tax Effect Accounting”(ASBJ Guidance No. 28, February 16, 2018).

13

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202017

Financial Section

3. Accounting Standard Issued but Not Yet Effective
Accounting Standards issued by March 31, 2020 but not yet effective are as follows;･“Accounting Standards for Revenue Recognition” (Accounting Standards Board of Japan(“ASBJ”) Statement No.29, March 31, 2020)･ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ
Guidance No.30, March 31, 2020
(1) Summary
The International Accounting Standards Board (“IASB”) and Financial AccountingStandards Board of the United States of America (“FASB”) jointly developed acomprehensive accounting standard for revenue recognition and issued “Revenue
from Contracts with Customers” (IFRS No.15, issued by IASB and Topic 606 issued
by FASB) in May 2014. Considering that IFRS No.15 is applicable from the fiscal
year beginning on and after January 1, 2018 and Topic 606 from the fiscal year
beginning after December 15, 2017, the ASBJ developed a comprehensive
accounting standard for revenue recognition and issued it along with implementation
guidance.
The ASBJ developed its standard for revenue recognition with the objective to alignthe Japan standards to the basic principles of IFRS No. 15 in order to allow
consistency and comparability with other international bases of financial statement
presentation. However, the ASBJ also gave consideration to alternative treatments
so as to not impair comparability across other practices in Japan(2) Date of application
The Company and its domestic subsidiaries expect to apply the new standard for the
fiscal year ending March 31, 2022.
(3) Effect of application
The effect of applying the “Accounting Standard for Revenue Recognition,” on the
consolidated financial statements is currently under assessment.
･“Accounting Standard for Disclosure of Accounting Estimates” (Accounting Standards
Board of Japan (“ASBJ”) Statement No.31, March 31, 2020)(1) Summary“Sources of estimation uncertainty” (the “Source”) is required to be disclosed under
IAS 1 “Presentation of Financial Statements”, which was issued by the IASB in2003. Comment providers requested the ASBJ to include a requirement fordisclosure of the Source which are useful for the users of the financial statements inthe notes to the financial statements prepared under accounting principles generally
accepted in Japan.
As a result, the ASBJ developed and published “Accounting Standard forDisclosures of Accounting Estimates” (the “Disclosure Standard”).
When the ASBJ developed this Disclosure Standard, a basic policy was set up,
which is that each note to the financial statements should not be described in

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202014

Financial Section

detail,but only the principle (purpose of disclosure) should be provided. Specificcontents of this principle should be determined by reference to the Company’s
purpose of the disclosure. The Disclosure Standard has been developed referring to
IAS 1, paragraph 125.
(2) Date of application
The Company and its domestic subsidiaries expect to apply the new standard for the
fiscal year ending March 31, 2021.
･ “Accounting Standard for Accounting Changes and Error Corrections” (AccountingStandards Board of Japan (“ASBJ”) Statement No.24, March 31, 2020)(1) Summary
The Standards Advisory Council requested that the ASBJ improve footnote
information related to “accounting principle and procedure developed bymanagement in the absence of an accounting standard that specifically applies to atransaction”. In response, the ASBJ made revisions to the standard and published it
as “Accounting Standard for Accounting Policy Disclosures, Accounting Changes
and Error Corrections”. In improving such footnote information, BusinessAccounting Principles Interpretive Note 1-2 has continuously been applied in order
not to affect accounting practices where the accounting standard applied to atransaction is already clearly determined.
(2) Date of application
The Company and its domestic subsidiaries expect to apply the new standard for the
fiscal year ending March 31, 2021.
4.

Additional Information(Performance-based stock compensation plan for the Company’s directors)
The Company has introduced a performance-based stock compensation plan (the “Plan”)
for directors of the Company (excluding outside directors) and executive officers who
have entered into an engagement agreement with the Company (hereinafter “Directors,etc.”).
(1) Transaction summary
The Company will set up a monetary trust. This trust will be used to acquire commonshares of the Company. A director shall be granted shares in each fiscal year. The stockbased compensation will be delivered to the Directors via the trust. Note that in principle
the Directors will receive delivery of said shares at the scheduled time every year.
(2) Shares remaining in the trust
The shares of the Company that remain in the trust are recorded as treasury stock under
net assets at book value (excluding associated costs). The book value of these treasury
stock shares at the end of the fiscal year under review was ¥39 million ($358 thousand)and there were 11 thousand shares.
15
SHIBAURA MECHATRONICS CORPORATION
Annual Report 202019

Financial Section(Impact of the spread of novel coronavirus disease)
The spread of novel coronavirus disease is ongoing as of the date of preparation of these
consolidated financial statements, and continues to affect the Group’s business activities.
In preparing the consolidated financial statements, the Group makes accounting estimatessuch as those in respect of collectibility of deferred tax assets, valuation of allowance for
doubtful accounts, and impairment of fixed assets. These accounting estimates reflect
the current situation based on available information, assuming that overseas travel
restrictions aimed at preventing the spread of novel coronavirus disease infections will be
lifted in June 2020.

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202016

Financial Section

5.

Investments in Securities

At March 31, 2020 and 2019, 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 312020
2019
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
sheet
Sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 13
–
–
¥ 13

¥ 18
–
–
¥ 18

¥5
–
–
¥5

¥ 38
–
–
¥ 38

¥ 71
–
–
¥ 71

March 31,2020
Amountrecorded in
Acquisition the balance
sheet
costs
Difference(Thousands of U.S. dollars)

¥ 33
–
–
¥ 33

$

120
–
–
$ 120

$ 165
–
–
$ 165

$ 45
–
–
$ 45

At March 31, 2020 and 2019, non-marketable securities carried at cost are summarized asfollows:
March 31,2020
2019(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,
2020
(Thousands of
U.S. dollars)

¥ 52
1

$ 479
6

For the year ended March 31, 2020, other securities sold are summarized as follows:Year ended March 31
2020
Total gain on
Sales proceeds
sales(Millions of yen)
Equity securities
Debt securities
Other
Total

¥ 38
－
－
¥ 38

¥ 22
－
－
¥ 22

Total loss on
sales
－
－
－
－

Year ended March 31
20
Total gain on
Sales proceeds
sales

Total loss on
sales(Thousands of U.S. dollars)
$ 348
$ 205
－
－
－
－
$ 348
$ 205

－
－
－
－

For the year ended March 31, 2019, no other securities were sold.

17

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202021

Financial Section

6.

Inventories

Inventories at March 31, 2019 and 2018 are summarized as follows:
March 31,2020
2019(Millions of yen)Finished products
Raw materials
Work in process
Total

¥

939
214
1,716
¥ 2,869¥ 1,121228
2,128¥ 3,477

March 31,
2020
(Thousands of
U.S. dollars)$ 8,628
1,965
15,769$ 26,362

Inventories as of March 31, 2020 and 2019 were written down due to lower profitability andunrealized loss on inventories was charged to cost of sales in the amounts of ¥128 million($1,183 thousand) and ¥527 million, respectively.
7.

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, 2020 and 2019 was 1.0%.
Long-term debt and lease obligations at March 31, 2020 and 2019 are summarized as follows:
March 31,2020
2019(Millions of yen)March 31,
2020
(Thousands of
U.S. dollars)

Unsecured:
0.7% to 1.3% loans from banks due 2020
to 2024
Lease obligations

5,800
74

6,000
19

53,294681

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

5,874
1,215
4,659

6,019
4,505
1,514

53,975
11,168$ 42,807¥¥

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2020 are
summarized as follows:
March 31, 2020
(Millions of(Thousands ofyen)
U.S. dollars)
2021
2022
2023
2024 and thereafter
Total

22

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

¥ 1,215
16
815
3,828
¥ 5,874$ 11,169
146
7,493
35,167$ 53,975
18

Financial Section

7.

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 ($55,132thousand) to optimize
the free cash flow on August 1, 2019 The outstanding balance of bank borrowings underthese commitment lines at March 31, 2020 was zero.
8. Research and Development Expenses
Research and development expenses charged to income for the years ended March 31,
2020 and 2019 are as follows:Year ended March 31,
2020
2019
(Millions of yen)
¥ 2,729¥ 2,743

Year ended
March 31,
2020
(Thousands of
U.S. dollars)$ 25,076

19

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202023

Financial Section

9.

Income Taxes and Deferred Tax Assets

The major components of deferred tax assets and liabilities as of March 31, 2020 and 2019are summarized as follows:
March 31,2020
2019(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Reserve for repair and maintenanceEnterprise tax payable
Costs of construction for the percentage
of completionTax loss carried forward
Other
Gross deferred tax assets
Valuation allowances
for tax loss carryforwards
Valuation allowancefor temporary differences
Total deferred tax assets

March 31,
2020
(Thousands of
U.S. dollars)¥ 1,962423
94
26¥ 1,909469
94
78$ 18,032
3,884
860
242

155
－
1,827
4,487

225
95
1,695
4,565

1,422
－
16,792
41,232－(83)－(3,591)896(3,509)973(32,994)
8,238

0

(5)

(2)

(128)
(128)
¥ 768

(142)
(147)
¥ 826

(1,178)(1,180)$ 7,058

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

The expiration of tax loss carryforwards, the related valuation allowances, and the resulting
net deferred tax assets as of March 31, 2020, were as follows:
Not applicable

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202020

Financial Section

9. Income Taxes and Deferred Tax Assets (continued)
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries
consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in the aggregate,
resulted in a statutory rate of approximately 30.6% and 30.6% for the years ended March 31,
2020 and 2019. Income taxes of the foreign consolidated subsidiaries are generally based on
the tax rates applicable in their countries of incorporation.
The reconciliations between the effective tax rates reflected in the consolidated statements ofincome and the effective statutory tax rates for the years ended March 31, 2020 and 2019 aresummarized as follows:

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

March 31,
2020
2019
30.6%
30.6%
1.1
2.7
0.5
(1.5)

1.5
8.3
0.3
(0.3)

1.9
(5.9)
0.4

0.5
(9.3)
0.7

－
0.0
29.8%

1.9
0.2
34.4%

21

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202025

Financial Section

10.

Other Comprehensive Income

The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income for the years ended March 31, 2020 and 2019:Year ended March 31,
2020
2019
(Millions of yen)
Valuation difference on other (availablefor-sale) securities:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Current year gains (losses)
Reclassification adjustments for gains andlosses included in net income
Amount before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Year ended
March 31,
2020
(Thousands of
U.S. dollars)

¥ (7)

¥ (1)

$ (61)

(22)
(29)
5
(24)

–
(1)
(1)
(2)

(203)
(264)
43
(221)

(22)

(79)

(203)

–
(22)
–
(22)

–
(79)
–
(79)

–
(203)
–
(203)

(102)

(56)

(941)

159
57
–
57

233
177
–
177

1,465
524
–
524

¥ 11

¥ 96

$ 100

22

Financial Section

11.

Information on Dividends

The Company paid cash dividends as follows:
Date of board
resolution
May 21,
2019

Class ofstock
Commonstock

Total dividend
amountDividends
per share *1¥ 619 million¥140.00 *1

Recorddate
March 31,2019

Effective
date
June 5,2019*1 Dividends per share of ¥140.00 for the year ended March 31, 2019 before the consolidation of shares.

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 21,2020
12.

Class ofstock
Commonstock

Total dividend
amount¥ 486 million

Source ofdividends
Retainedearnings

Dividends
per share¥110.00

Recorddate
March 31,2020

Effective
date
June 8,2020

Retirement Benefits

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

Defined benefit plans(1) The changes in the retirement benefit obligation for the years ended March 31, 2020 and2019 are as follows:Year ended March 31,
2020
2019
(Millions of yen)
Balance at the beginning of the year
Service costs
Interest costs
Actuarial (gain) loss
Retirement benefit paid
Balance at the end of the year

¥ 9,416
364
32
(36)
(288)
¥ 9,488¥ 9,441
368
32
(24)
(401)
¥ 9,416

Year ended
March 31,
2020
(Thousandsof U.S.
dollars)$ 86,520
3,346
296
(328)
(2,644)$ 87,190

23

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202027

Financial Section

12.

Retirement Benefits (continued)(2) The changes in plan assets for the years ended March 31, 2020 and 2019 are as follows:Year ended March 31,
2020
2019
(Millions of yen)
Balance at the beginning of the year
Expected return on plan assets
Actuarial (gain) loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

¥ 3,214
64
(138)
350
(195)
¥ 3,295¥ 3,171
63
(80)
345
(286)
¥ 3,213

Year ended
March 31,
2020
(Thousandsof U.S.
dollars)$ 29,529
591(1,269)3,219(1,795)$ 30,275(3) The changes in net defined benefit liability that are calculated by the simplified method
for the years ended March 31, 2020 and 2019 are as follows:Year ended March 31,
2020
2019
(Millions of yen)
Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

¥ 1,147
208
(92)
(5)
¥ 1,258¥ 1,039
189
(69)
(13)
¥ 1,146

Year ended
March 31,
2020
(Thousandsof U.S.
dollars)$ 10,538
1,913
(845)
(47)
$ 11,559

24

Financial Section

12. Retirement Benefits (continued)(4) The following table sets forth the funded status of the plans and the amounts recognizedin the consolidated balance sheet as of March 31, 2020 and 2019 for the Group’s defined
benefit plans:
March 31,2020
2019(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¥ 6,142(3,294)
2,848
4,604

¥ 6,094(3,214)
2,880
4,469

March 31,
2020
(Thousandsof U.S.
dollars)$ 56,444(30,274)
26,17042,305

7,452

7,349

68,475

7,452

7,349

68,475¥ 7,452¥ 7,349$ 68,475

Notes:Net defined benefit liability calculated by the simplified method is included.
(5) The components of retirement benefit expense for the years ended March 31, 2020 and2019 are as follows:
March 31,2020
2019(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

¥ 364
32
(64)
176
(17)

¥ 368
32
(63)
250
(17)

March 31,
2020
(Thousandsof U.S.
dollars)$ 3,346
296
(591)
1,621
(155)

208

188

1,913

¥ 699

¥ 758

$ 6,430

25

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202029

Financial Section

12.

Retirement Benefits (continued)(6) The components of remeasurements of defined benefit plans included in othercomprehensive income (before tax effect) for the years ended March 31, 2020 and 2019 are
as follows:
March 31,2020
2019(Millions of yen)
Prior service cost
Actuarial gains
Total

¥ 17
(74)
¥ (57)¥ 17(194)¥ (177)

March 31,
2020
(Thousandsof U.S.
dollars)
$ 156
(680)
$ (524)(7) The components of remeasurements of defined benefit plans included in accumulated
other comprehensive income (before tax effect) as of March 31, 2020 and 2019 are as
follows:
March 31,2020
2019(Millions of yen)
Unrecognized prior service cost
Unrecognized actuarial losses
Total¥ (31)
1,069¥ 1,038¥ (48)
1,143¥ 1,095

March 31,
2020
(Thousandsof U.S.
dollars)$ (285)9,827$ 9,542(8) The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2020 and 2019 are as follows:

Bonds
SharesCash and deposits
General accounts
Other
Total

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

March 31,
2020
2019
16.9%
17.0%
18.8%
21.2%
1.3%
0.8%
43.9%
42.6%
19.1%
18.4%
100.0%
100.0%

26

Financial Section

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

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

March 31,2020
2019
0.31－0.36%
0.31－0.36%
2.0%
2.0%
4.2%
4.2%
70.0%
70.0%

② Defined contribution plans
The amount required to be contributed to the defined contribution plans is ¥17 million ($155
thousand) for the year ended March 31, 2020.
13.

Contingent Liabilities

The Company had the following contingent liability as of March 31, 2020 and 2019 :March 31,2020
2019(Millions of yen)
Guarantee for housing loans of employees¥3¥4March 31,
2020
(Thousands of
U.S. dollars)
$ 31

27

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Annual Report 202031

Financial Section

14.

Derivatives and Hedging Activities

The Company has entered into interest-rate swap contracts to manage its exposure to interestrate risk on long-term debt. As a matter of policy, the Company does not enter into derivativetransactions for trading purposes. The Company does not anticipate nonperformance by anyof the counterparties to the above transactions, all of whom are domestic financial institutions
with high credit ratings.
In accordance with the Company’s policy, derivative transactions are entered into under thedecision-making rules approved by the Management Strategy Committee of the Company.
The Treasury Division with the responsibility to enter into such contracts monitors andcontrols the inherent risk and performance on a daily basis and reports these to managementof the Company, if and when necessary.
In accordance with the special hedge accounting under the Accounting Standard for Financial
Instruments, the Company does not record certain interest-rate swap arrangements at fairvalue but charges or credits the net cash flows from the swap arrangements to the interest
arising from the respective hedged borrowings.
At March 31, 2020 and 2019, the fair value information for derivatives, for which hedge
accounting was applied, was not presented since all derivatives were accounted for using thespecial hedge accounting and accordingly their fair value was recorded as part of the fairvalue of the hedged borrowings.

32

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Financial Section

14.

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

¥ 309
¥ 309

¥ (10)¥ (10)¥ (10)¥ (10)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

Total
To buy foreign
currencies
U.S. Dollars
Total

As of March 31, 2019
Contract
amountover 1 year Fair value(Millions of yen)

Unrealizedgain(loss)¥ 2,400¥ 2,400¥－¥－¥ (64)¥ (64)¥ (64)¥ (64)

¥－
¥－

¥－
¥－

¥－
¥－

¥－
¥－

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

Unrealizedgain(loss)¥ 2,689¥ 2,689

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

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

As of March 31, 2020
Contract
amountUnrealized
over 1 year Fair valuegain(loss)(Thousands of U.S. dollars)$ 24,709$ 24,709$ 2,838$ 2,838$ (96)$ (96)$ (96)$ (96)

$－
$－

$－
$－

$－
$－

$－
$－

29

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Annual Report 202033

Financial Section

14. Derivatives and Hedging Activities (continued)
Notes:
Fair value is principally based on obtaining quotes from counterparty financial institutions.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
As of March 31, 2020
Type of derivativetransaction
Interest rate swap transaction
Pay fixed/Receive variable

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)
Long-term debt

¥ 3,200¥ 2,500¥－

As of March 31, 2019
Type of derivativetransaction
Interest rate swap transaction
Pay fixed/Receive variable

Principal item
hedgedContract
amountContract
amountover 1 year

Fair value(Millions of yen)
Long-term debt

¥ 6,000¥ 1,500¥－

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

Principal item
hedgedContract
amountContract
amountover 1 year

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

$ 29,404$ 22,972$－

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

34

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Financial Section

15.

Financial Instruments① Matters relating to financial instruments(1) Policy of financial instruments
The Group makes capital investments primarily through bank loans to secure thenecessary principal and maintain liquidity. Derivatives are used, not for speculative
nor trading purposes, but to manage risk of foreign currency exchange rates andinterest rate fluctuations arising from business operations.
(2) Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to a customer’s
credit risk. Receivables from each customer are constantly checked to reduce risk of
the customer’s default.
Investment securities are equity securities of customers of the Group and exposed tothe market price fluctuation risk.
While foreign currency-denominated operating receivables are exposed to exchange
rate fluctuation risk, the Group hedges this risk by, as a general rule, primarily
utilizing forward exchange contracts for foreign currency-denominated operating
payables. Trade payables, which are operating payables, are settled within a year.
Short-term bank loans are used to primarily to procure working capital, while longterm debt is used to procure funds required for long-term stability. Although someitems with variable interest rates are exposed to interest rate fluctuation risk,
derivative transactions (interest rate swaps) are utilized in part to fix interest payments.
To control credit risk related to derivatives, based on internal guidelines, the Group
enters into derivative transactions with counterparties with high credit ratings. In
addition, the Treasury Division of the Group regularly monitors risk and gain or loss,
and reports them to management of the Company.
Operating payables and bank loans are exposed to liquidity risk.
Each entity of the Group performs cash management using monthly cash flow
information.
(3) Supplementary information on fair value of financial instruments
Fair values of financial instruments are based on their quoted price in active markets.
If the quoted price is not available, other rational valuation techniques are used.
Because various assumptions and factors are reflected in estimating fair value,
different assumptions could result in different fair value. The contract or notionalamounts of derivatives which are shown in the below table do not represent theamounts exchanged by the parties and do not measure the Companies’ exposure tocredit or market risk.

31

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Annual Report 202035

Financial Section

15.

Financial Instruments (continued)② Matters concerning the fair value of financial instruments, etc.
Amounts as of March 31, 2020 and 2019 on the accompanying consolidated balance sheet
fair value and the difference between them are as follows.
March 31, 2020
Carrying value

Fair value

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

497

497

－

(4) Investment securities - Other securities

27

27

－

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

(1,200)(1,200)－(8) Long-term debt

(4,600)(4,601)(1)(9) Other long-term liabilities(3,078)(2,900)178(10) Derivative transactions

(13)

(13)

－

March 31, 2019
Carrying value

Fair value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade¥ 13,186¥ 13,186¥ －30,24330,243－(3) Electronically recorded monetary claims

495

495

－

(4) Investment securities - Other securities

72

72

－

(5) Notes and accounts payable, trade(15,134)(15,134)－(6) Short-term bank loans(5,100)(5,100)－(7) Current portion of long-term debt

(4,500)(4,500)－(8) Long-term debt

(1,500)(1,496)

4(9) Other long-term liabilities(3,078)(2,884)194(10) Derivative transactions

(58)

(58)

－

March 31, 2020
Carrying value

Fair value

Difference(Thousands of U.S. dollars)(1) Cash and bank deposits

36$$ 116,923$ 116,923

251,012251,012－(3) Electronically recorded monetary claims

4,569

4,569

－

(4) Investment securities - Other securities

247

247

－

(5) Notes and accounts payable, trade(102,061)(102,061)－(6) Short-term bank loans(46,862)(46,862)－(7) Current portion of long-term debt

(11,026)(11,026)－(8) Long-term debt

(42,268)(42,279)(11)(9) Other long-term liabilities(28,284)(26,648)1,636(10) Derivative transactions

(119)

(119)

－

(2) Notes and accounts receivable, trade

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020－32

Financial Section

15.

Financial Instruments (continued)(*) Liabilities are presented in parentheses in the above table.
Notes:a)Method of measurement of fair value of financial instruments and matters concerning
securities and derivative transactions(1) Cash and bank deposits, (2) Notes and accounts receivable, trade, and(3) Electronically recorded monetary claims
As these instruments are settled in a short period of time, their fair value
approximates carrying value.
(4) Investment securities - Other securities
The fair value of equity securities reflects quoted stock exchange pricing at thebalance sheet date.
(5) Notes and accounts payable, trade, (6) Short-term bank loans, (7) Current portionof long-term debt
As these items are settled in a short period of time, their fair value approximatescarrying value.
.
(8) Long-term debt
As for the fair value of long-term debt, future cash flows from payments ofprincipal and interest are discounted to present value using the interest rateapplicable to a similar new loan. For long-term debt with floating interest rates
subject to the special hedge accounting hedged by designated interest rate swaps,
future cash flows from payments for principal and interest, combined with cash
flows from the designated interest rate swaps, are discounted to present value using
the interest rate applicable to a similar new loan.
(9) Other long-term liabilities
Other long-term liabilities consist of long-term guarantee deposits. The fair valueof other long-term liabilities is determined by discounting future cash flows to thepresent value using a risk free rate.
(10) Derivative transactions
See Note 14 for details on derivative transactions.

b) As non-marketable equity securities of ¥52 million ($479 thousand) do not have a quoted
market price and their future cash flows 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.”
33

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Annual Report 202037

Financial Section

15.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥12,725 million ($116,923 thousand), Notes and accounts
receivable, trade of ¥27,318 million ($251,012 thousand), Electronically recordedmonetary claims of ¥497 million ($4,569 thousand) are due within one year subsequent
to March 31, 2020 and Cash and bank deposits of ¥13,167 million, Notes and accounts
receivable, trade of ¥30,243 million, Electronically recorded monetary claims of ¥495
million are due within one year subsequent to March 31, 2019.

16.

Investment in Rental Property

The Company owns an office building (including land) for rent by third parties in Yokohama
city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Fair value
March 31,2020

Rental property

Carrying amountMarch 31,
Decrease
2020(Millions of yen)
¥ 5,579¥ 121¥ 5,458

Fair value
March 31,2019

Rental property

Carrying amount
April 1,March 31,2018
Decrease
2019(Millions of yen)
¥ 5,631¥ 51¥ 5,579

April 1,2019

¥ 7,816¥ 7,816

Carrying amount
Fair value
March 31,
March 31,
Decrease
2020
2020(Thousands of U.S. dollars)$ 51,266$ 1,114$ 50,153$ 71,822

April 1,
2019
Rental property

Notes:

38a)

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, 2020 and 2019 is internally determined by the Company basedon the real-estate appraisal standard.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202034

Financial Section

16.

Investment in Rental Property (continued)

Information on Consolidated Statement of Operations

Rental property

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

Rental property

Year ended March 31, 2019
Rental income Rental costs
Difference(Millions of yen)
¥ 1,580¥ 1,139¥ 440

Rental property

Year ended March 31, 2020
Rental income Rental costs
Difference(Thousands of U.S. dollars)$ 14,042$ 9,878$ 4,164

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

35

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Annual Report 202039

Financial Section

17.

Segment Information① Segment information(1) Overview of reporting segments
The Company’s reporting segments are determined as the Group’s units for which discrete
financial information is available, which the Board of Directors regularly monitors in orderto decide on the allocation of business resources and evaluate business performance.
The Company adopts the division system in its Group organization based on the productor service lines.
Each division draws up a domestic and overseas comprehensive strategy for its products
or services to manage and develop operations.
The Company has four reporting segments: Fine mechatronics, Mechatronics systems,
Vending machines & systems, and Real estate leasing．
The product or service lines belonging to each reporting segment are as follows.
Fine mechatronics:
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, aching 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.

40

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Annual Report 202036

Financial Section

17.

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, 2020 and 2019 is summarized as follows:Year ended March 31, 2020
Finemechatronics
Sales
Sales to external customers
Intersegment sales or transfers

Mechatronics
systems

Vending
machines &systems

Real estateleasing

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

Total sales
Segment income

27,8191,467

15,407
1,404

2,251
3

1,914
562

47,391
3,436

Segment assets

29,51010,828

1,727

6,206

48,271

618
7
5

430
0
1

41
0
6

300
–
–

1,389
7
12

1,421

411

134

265

2,231

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

Year ended March 31, 2019
Fine
mechatronics
Sales
Sales to external customers
Intersegment sales or transfers

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
¥ 28,292
58¥ 20,715
175¥ 2,0930¥ 1,990–¥ 53,090
233

Total sales
Segment income

28,350937

20,890
2,959

2,093
14

1,990
556

53,323
4,466

Segment assets

29,782

14,086

1,660

6,414

51,942

842
7
6

403
0
2

18
0
4

293
–
–

1,556
7
12

736

643

59

279

1,717

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

37

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Annual Report 202041

Financial Section

17.

Segment Information (continued)
Year ended March 31, 2020
Finemechatronics

Sales
Sales to external customers
Intersegment sales or transfers

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)$ 255,253367$ 139,644
1,925$ 20,680
0$ 17,593–$ 433,170
2,292

Total sales
Segment income

255,620
13,479141,569
12,90820,68026

17,593
5,163

435,462
31,576

Segment assets

271,155

99,49815,87057,025443,548

5,682
67
48

3,952
0
9

373
0
50

2,759
–
–

12,76667
107

13,054

3,774

1,232

2,437

20,497

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,
2020
2019
(Millions of(Millions of
yen)
yen)
Reporting segments

Year ended
March 31,
2020
(Thousands of
U.S. dollars)¥ 3,436¥ 4,466$ 31,576

Unallocated amounts

(408)

(459)

(3,746)

Other

(259)

(224)

(2,381)¥ 2,769¥ 3,783$ 25,449

Consolidated

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

42

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Annual Report 202038

Financial Section

17.

Segment Information (continued)b) Segment assets
As of March 31,
2020
2019
(Millions of(Millions of
yen)
yen)

As of
March 31,
2020
(Thousands of
U.S. dollars)

Reporting segments¥ 48,271¥ 51,942$ 443,548

Unallocated amounts

9,150

10,02584,079¥ 57,421¥ 61,967$ 527,627

Consolidated

Notes:
Included in the “Unallocated amounts” above are unallocable assets which primarily
consist of surplus funds (cash and bank deposits) and investment funds (investment
securities) owned by the Company and deferred tax assets.
c) OtherYear ended March 31, 2020

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

Reportingsegments

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

2,231

Consolidated¥ 1,389
7
120

–

2,231

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 12,766$–$ 12,766
67
1
68
107
997
1,104
20,497–

20,497

Year ended March 31, 2019

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

Reportingsegments

Adjustment
amountConsolidated¥ 1,556
7
12(Millions of yen)
¥
–
0
117

¥ 1,556
7
129

1,717

–

1,717

39

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Annual Report 202043

Financial Section

17.

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, 2020
Japan

¥ 17,326

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

Total¥ 47,141

Year ended March 31, 2019Japan

¥ 18,435

Northeastern Asia
Other
(Millions of yen)
¥ 33,813

¥ 842

Total

¥ 53,090

Year ended March 31, 2020
Japan

$ 159,203

Northeastern Asia
Other
(Thousands of U.S. dollars)$ 260,903$ 13,064

Total$ 433,170

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
As of March 31, 2020
Japan

¥ 11,094

Northeastern Asia
(Millions of yen)
¥ 10

Total

¥ 11,104

As of March 31, 2019Japan

¥ 10,525

Northeastern Asia
(Millions of yen)
¥ 11

Total

¥ 10,536

As of March 31, 2020
Japan

$ 101,941

44

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Northeastern Asia
(Thousands of U.S. dollars)
$ 95

Total

$ 102,036

40

Financial Section

17.

Segment Information (continued)c) Information by main customer
Year ended March 31, 2020: Not applicableYear ended March 31, 2019:Not applicable③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2020: Not applicableYear ended March 31, 2019: Not applicable④ Depreciation and remaining balance of goodwill by reporting segment
Year ended and as of March 31, 2020: Not applicableYear ended and as of March 31, 2019: Not applicable⑤ Gain on negative goodwill by reporting segment
Year ended March 31, 2020: Not applicableYear ended March 31, 2019: Not applicable

41

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Annual Report 202045

Financial Section

18.

Cash and Cash Equivalents

Reconciliations of cash and cash equivalents as of March 31, 2020 and 2019 between theamounts shown in the consolidated balance sheets and the consolidated statements of cash
flows are as follows:
As of March 31,
2020
2019
(Millions of(Millions of
yen)
yen)
Cash and time deposits

As ofMarch 31,
2020
(Thousands of
U.S. dollars)¥ 12,725¥ 13,186$ 116,923

(16)

(15)

(136)

¥ 12,709¥ 13,171$ 116,787

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

19.

Non-cash Transactions

Lease assets and lease obligations recorded relating to lease transactions were ¥55 millionand ¥55 million, respectively for the year ended March 31, 2020 and not applicable,
respectively for the year ended March 31, 2019.
20.

Selling, General and Administrative Expenses

For the years ended March 31, 2020 and 2019, major selling, general and administrative
expenses are summarized as follows:Year ended March 31,
2020
2019
(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

46

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Year ended
March 31,
2020
(Thousands of
U.S. dollars)

¥ 88
419
13
5,084
37

¥ 78
714
19
5,024
45

$ 806
3,853
115
46,718
339

875
285

138
333

8,042
2,623

5
883
92
2,725

3
1,078
81
2,737

45
8,115
848
25,04342

Financial Section

21.

Related Party Transactions

Year ended and as of March 31, 2020: Not applicableYear ended and as of March 31, 2019:Not applicable
22.

Per Share Information

Basic net income per share is computed based on the net income available for distribution toshareholders of common stock and the weighted-average number of shares of common stock
outstanding during each year. Diluted net income per share is computed based on the net
income available for distribution to the shareholders and the weighted-average number ofshares of common stock outstanding during each year, assuming full dilution of common
stock equivalents. Net assets per share are computed based on the weighted-average numberof shares of common stock outstanding at each balance sheet date.
As of March 31,
2020
2019
(Yen)
Net income:– Basic
Net assets¥ 440.73
4,468.29¥ 562.90
4,166.33

As ofMarch 31,
2020
(U.S. dollars)$ 4.0541.06

Notes:The information regarding diluted net income per share for the years ended March 31, 2020
and 2019 is omitted because there was no stock with dilutive effect.
The weighted average number of shares of common stock outstanding excludes treasury
stock shares held by the Company. Treasury stock shares held in trust as a performance-based
stock compensation plan for the Company’s directors and executive officers, are includedin those treasury stock shares for the years ended March 31, 2020 and 2019.
The basis of calculating net income per share were as follows:

Net income
Net income attributable to non-controllinginterests
Net income attributable to owners of parent
Weighted average number of shares ofcommon stock outstanding

As of March 31,
2020
2019
(Yen)
¥ 1,944¥ 2,481
1,944
2,481(Thousand shares)
4,411

As of
March 31,
2020
(U.S. dollars)$ 17,866
17,866

4,407

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Annual Report 202047

Financial Section

23.

Significant Subsequent Events
Not applicable

48

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Annual Report 202044

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

49

Financial Section

50

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 202051

Directors, Vice Presidents and Auditors
As of June 24, 2020

Directors and Vice Presidents
Shigeki Fujita

Hisashi Shindo

Representative Director

Senior Vice President

President and Chief Executive Officer

Deputy Executive General Manager of Mechatronics System
Division

Yoshitsugu Ogawa
Director

Kazuyuki Yamanaka

Executive Vice President

Senior Vice President

Executive General Manager of Mechatronics System Division

Executive General Manager of Production & Procurement

		

Division

Keigo Imamura
Director

Yoshio Yuyama

Executive Vice President

Advanced Vice President

Executive General Manager of Fine Mechatronics Division

Deputy Executive General Manager of Mechatronics System
Division

Kenichi Ikeda
Director

Kazuhiko Okui

Senior Vice President

Vice President

Chief Financial Officer

Executive General Manager of General Affairs & Human
Resources Division

Tomoko Inaba
Outside Director

Yoshiaki Kurokawa
Vice President

Yuichiro Takada
Outside Director

Deputy Executive General Manager of Fine Mechatronics
Division

Kazutoshi Horiuchi
Vice President
Deputy Executive General Manager of Fine Mechatronics
Division

Auditors
Yasuhiko Yamato
AuditorKazumasa Uchida
Outside Auditor

Hiroyuki Matsumoto
Outside Auditor

52

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2020

Investor Information
As of March 31, 2020

Date Established

October 12, 1939

Capital6,762Million-Yen

Number of Employees

Consolidated

Common Stock: 1,260

Authorized			: 10,000,000 shares

Issued and outstanding : 5,192,619 shares

Number of Shareholders

5,152

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited

Independent Auditor

PricewaterhouseCoopers Aarata LLC

Headquarters

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

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

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

High (yen)Low (yen)

2020
4,655
2,052

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

2018
528
240

2017
317
179

2016
320
170

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

Principal Shareholders

Toshiba Corporation
Shin-Etsu Engineering Co., Ltd.
NuFlare Technology, Inc.

Number of shares hold

Percentage of total shares outstanding(thousand shares)

(%)

519
259
259

11.73
5.86
5.86

SHIBAURA MECHATRONICS CORPORATION
Annual Report 202053

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

SKB0322B 2009
EDC200027