ANNUAL REPORT 2015
Year ended March 31, 2015

ANNUAL REPORT 2015
ProfileShibaura Mechatronics was established in 1939 as Shibaura Engineering Works Co., Ltd. Initially, our primary focus was on the
motor business, but in 1998 we emerged as a producer of manufacturing equipment for FPDs* and semiconductors. At that time
the company took on its present name, Shibaura Mechatronics Corporation.
In 2014, we introduced a new corporate slogan, Smart Solutions & Services for Your Manufacturing. This highlights the three esseson which we rely –Smart, Solutions and Services – as we continue to produce excellent products and solutions for our customers.
*FPDs : flat panel displays

History
1932
Tokyo Electric Company

1939

1949

1991 1996

Oct.,1998

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

Shibaura Engineering Works Co., Ltd.

(Industrial Mechatronics Business)

Toshiba Automation Co., Ltd.

Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Toshiba Mechatronics Co., Ltd.

Manufacturing equipment for FPDs,
semiconductors and others

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

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

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

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

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

Financial Section・ ・・・・・・・・・・・・・・・・・・・05

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

Board of Directors・ ・・・・・・・・・・・・・・・・・・・48

Investor Information・ ・・・・・・・・・・・・・・・・・・49

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

Financial Highlights
Year ended
March 31,2015

Year ended March 31,
2015

2014

2013

2012

2011

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

(Millions of yen)

Consolidated

Net sales￥ 43,799		 ￥ 35,165		 ￥ 30,400		 ￥ 39,360		 ￥ 46,246
Orders received		 45,300
40,000 		41,300 		34,300
49,700Operating income (loss)		 1,022 		
736 		
60 		 (370 )743
Net income (loss)		
697 		
387 		 (1,416 )		 (394 )		
486$ 364,477
			 377,000
			
8,503
			
5,801

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,271		797		1,856		

1,359		1,195		1,726		

1,424		575		1,805		

1,503		1,120		2,064		

1,765
1,154
2,110

			 10,581
			
6,632
			 15,446

Total assets		 54,720		

47,602		

50,767		

52,943		

54,250			 455,356

Net assets		 16,058		

15,064		

15,697		

16,948		

17,492

			 133,627(yen)￥ 14.11		 ￥Net income (loss) per share

Number of employees		

1,174		

(U.S. dollars)

7.83		 ￥ (28.66 )1,210		￥ (7.98 )1,285		￥

1,496		

9.83

$

0.12

1,532

		

1,174

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥102.17 = U.S.$1.00, as of March 31, 2015.

Net Sales(¥Billions)

Orders Received(¥Billions)Operating Income (loss)(¥Billions)

Net Income (loss)(¥Billions)

1.0
49.7

46.2

43.8

39.4

41.3

35.2

45.3

0.7

0.7

40.0

0.4

0.1

34.3

30.4

0.7

0.5

-0.4

-0.4

-1.4
'11

'12

'13

'14

'15

'11

'12

'13

'14

'15

'11

'12

'13

'14

'15

'11

'12

'13

'14

'15

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201501

To Our Shareholders

Achieve significant growth by “accelerating business restructuring
and strengthening management”
In fiscal year 2014’s economic environment, we saw a
slowdown overseas in the Chinese economy, while in Japanthe marked depreciation of the yen supported a slow but
steady recovery.
Shibaura Mechatronics Group enjoyed a positive businessenvironment. In the LCD panel business, we continued to see
orders of equipment for large panels. Added to this, we also
saw an increase in orders of equipment for small- to mediumsized panels for use in mobile devices, such as smartphones
and tablets.
In the semiconductor business, we say received more orders
from cutting-edge business areas, including foundries andmanufacturers of memories.
As a result of the foregoing, in fiscal year 2014 we secured
consolidated net sales of 43,799 million yen, consolidated
operating income of 1,022 million yen, and consolidated net
income of 697 million yen.
When we consider business prospects for fiscal year 2015, we
anticipate that the yen will remain weak and expect a sustained
recovery in the domestic economy. While we cannot ignore therisk of an extended slowdown in China’s economic growth,

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

but we nonetheless expect to see continued new capital
investments in the LCD panel and semiconductor businesses.
In the LCD panel market, the pace of new capital investments
in large panels has eased, but the other side of the coin is thatinvestments in small- and medium-sized panels are expected toincrease. We will make every effort to use our core technologies
to further boost investments in these growth areas.
In the semiconductor market, we expect investments in cuttingedge fields, such as foundries and memory manufacturers, toremain robust. We aim to win more order through technologicalinnovation.
Shibaura Mechatronics Group will seek to increase sales
revenues by reinforcing sales activities in growth areas. As we
do so we will make efforts to raise profit through sustained
efforts towards cost restructuring.

Shigeki Fujita
President and Chief Executive Officer

Financial Review
Results Summary
In FY2014 Shibaura Mechatronics recorded orders receivedof 45,300 million yen (a year-on-year increase of 13.3%), net
sales of 43,799 million yen (a year-on-year increase of 24.6%),
operating income of 1,022 million yen (a year-on-year increase of
38.8%), an ordinary income of 1,138 million yen (a year-on-year

3. Vending Machines and Systems Segment
The segment recorded net sales of 1,786 million yen (ayear-on-year fall of 16.5%), and income of 29 million yen (ayear-on-year fall of 6.8%).
Sales declined on lower demand for large volume customerfriendly ticket vending machines. This decline in sales wasreflected in lower segment profit.

increase of 103.2%), and a net income of 697 million yen (a yearon-year increase of 80.1%).
The Results for each business segment were as follows:

1. Fine Mechatronics Segment
The segment recorded net sales of 23,145 million yen (ayear-on-year increase of 9.0%) and a loss of 481 million yen(against income of 1,081 million yen in the previous fiscal
year).
In the LCD panel front-end process, orders for large sizedpanels eased slightly, while orders for small- and mediumsized panels increased significantly. Overall, net orders
increased and sales remained largely constant.
In the semiconductor front-end process, the number oforders and net sales in cutting-edge technology areas,
including foundries and memory makers, has shown anotable increase.
However, operating costs increased due to losses incurredfrom delays in upgrading the supply chain during periodsof concentrated production. Moreover, devaluation of theyen made it difficult to realize plans for securing materials
at lower costs, and as a result contributed to an increase inoperating costs.

4. Real Estate Leasing Segment
Real estate rental income increased as anticipated, and rhe
segment recorded net sales of 1,965 million yen (a yearon-year increase of 0.1%) and income of 451 million yen (ayear-on-year increase of 13.3%).

Research and Development Expenses
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 1,856 million yen (including
development costs of 329 million yen for basic technologies
that could not be appropriated to any specific segment).
R&D is advanced by the development and design departments
in business divisions, the Research and Development
Division, and by the technology divisions in our consolidated
subsidiary companies. In addition, we are pushing forward
efficient research and development and the commercializationof advanced technologies by strengthening our relations
and collaboration with Toshiba Corporation’s Research andDevelopment Center and Manufacturing Engineering Center
and Toshiba Corporation Semiconductor & Storage ProductsCompany.

2. Mechatronics Systems Segment
The segment recorded net sales of 16,903 million yen (ayear-on-year increase of 71.9%), and income of 1,321
million yen (against a loss of 503 million yen in the previous
fiscal year).
In the LCD panel back-end process, orders and sales forlarge-sized panels and small- to medium- sized panels
showed a marked increase. In the semiconductor backend process, both orders and sales recorded a modest
increase.

Research and development expenses and research results foreach segment are as follows:

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 765 million yen.
In LCD panel production equipment we have worked on thedevelopment of wet process equipment, PI inkjet coaters
and cell-assembly equipment suitable for high-definition
small- and medium-sized panels.
In semiconductor equipment we have worked on thedevelopment of wet cleaning equipment that can be used in

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201503

Financial Review

next generation devices, single wafer wet processor and dry

Total net assets at the end of the fiscal year were 16,058 million

etching equipment for masks.

yen, an increase of 994 million yen compared to the end of
the previous fiscal year. This was mainly due to an increase in

2. Mechatronics Systems Segment
R&D expenses for the segment totaled 637 million yen.
In LCD module equipment we have worked on thedevelopment of COG bonders for small- and medium-sizedpanels, and of vacuum bonding equipment for touch screen
panels.
In semiconductor assembly equipment we have workedon the development of high speed, high precision bonding
equipment. In the field of vacuum equipment we have beenworking on the development of sputtering equipment for
optical thin films and for semiconductor backside contacts.

adjustments incurred in respect or retirement benefits and thecalculation of current net profits.

Cash FlowsThe balance of cash and cash equivalents at the end of thecurrent fiscal year was 4,196 million yen, an increase of 278
million yen compared to the end of the last fiscal year.
Cash flow from operating activities decreased by 750 million
yen during the fiscal year (against an increase of 3,270 million
in the previous fiscal year). This was mainly due to a decrease

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 123 million yen.
In vending machines, we are promoting the development
and popularization of ticket vendors that support ten
thousand yen notes, and general purpose machines
equipped with freely adjustable column specifications. On
top of this, we are entering new areas, such as developmentof charging machines for House credit cards.

in funds as a result of an increase in accounts receivable.
Cash flow from investment activities fell by 278 million yen
during the fiscal year (against a fall of 61 million in the previous
fiscal year). This was mainly due to a decrease in cash resulting
from the acquisition of fixed assets.
Cash flow from financing activities increased by 1,245 million
yen during the fiscal year (against a fall of 3,732 million in theprevious fiscal year). This was mainly due to an increase infunds as a result of an increase in long-term borrowing.

Financial Condition
Total assets at the end of the fiscal year were 54,720 million
yen, an increase of 7,118 million yen compared to the end of
the previous fiscal year.
Current assets were evaluated at 42,218 million yen, an
increase of 7,676 million yen compared to the end of theprevious fiscal year. This was mainly due to an increase innotes and accounts receivable-trade.
Fixed assets were evaluated at 12,502 million yen, a reductionof 557 million yen compared to the end of the previous fiscal
year. This was mainly due to a decrease in tangible fixed assets
as a result of depreciation and amortization, etc.
Total liabilities at the end of the fiscal year stood at 38,662
million yen, an increase of 6,124 million yen compared to theend of the previous fiscal year. This was mainly due to anincrease in notes and accounts payable-trade.

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

FINANCIAL SECTION
ANNUAL REPORT 2015 Year ended March 31, 2015

Contents
Consolidated Balance Sheet・ ・・・・・・・・・・・・ 06
Consolidated Statement of Operations・ ・・・・・・・・・ 08
Consolidated Statement of Comprehensive Income・ ・・・・・ 09
Consolidated Statement of Changes in Net Assets・・・・・・・ 10
Consolidated Statement of Cash Flows・ ・・・・・・・・・ 11
Notes to Consolidated Financial Statements・ ・・・・・・・ 12
Other Information・ ・・・・・・・・・・・・・・・ 44
Independent Auditor's Report ・・・・・・・・・・・・・ 47

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201505

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2015
2014
(Millions of yen)March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Notes 13)
Notes and accounts receivable, trade (Note 13)
Electronically recorded monetary claims (Note 13)
Allowance for doubtful accounts
Inventories (Note 4)
Deferred tax assets (Note 7)
Accounts receivable, other
Other current assets
Total current assets¥ 4,21430,568
322
(37)
4,748
649
1,222
532
42,218¥ 3,987
23,209
1
(94)
5,805
707
582
345
34,542$ 35,065
254,3702,684(311)
39,515
5,398
10,1684,429
351,318

Property, plant and equipment:
Land (Note 14)
Buildings and structures (Note 14)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11928,276
3,670
370
525
32,960(21,757)
11,203

119
28,443
2,995
457
646
32,660(21,003)
11,657993
235,299
30,5393,078
4,370
274,279(181,049)
93,230

125
218
958
(2)
1,299

112
234
1,059
(2)
1,403

1,043
1,811
7,969
(15)
10,808¥ 54,720¥ 47,602$ 455,356

Investments and other assets:
Investments in securities (Notes 3 and 13)
Deferred tax assets (Note 7)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

3

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Financial Section

March 31,2015
2014
(Millions of yen)
Liabilities and net assets
Current liabilities:
Short-term bank loans (Notes 5 and 13)
Current portion of long-term debt (Notes 5 and 13)
Notes and accounts payable, trade (Note 13)
Provision for contract losses
Current portion of lease obligations (Note 5)
Advances received
Accrued expenses
Accrued income taxes (Note 7)
Asset retirement obligations
Provision for directors' bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 5 and 13)
Net defined benefit liability (Notes 10)
Lease obligations (Note 5)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term lease deposits (Note 13)
Total long-term liabilities
Total liabilities

March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

¥ 5,720700
12,619
21
39
542
2,814
206
－
23
463
23,147¥ 8,119
2,000
8,504
8
56
393
2,190
190
11
23
521
22,015$ 47,599
5,825
105,005
176
325
4,511
23,416
1,713
－
191
3,855
192,616

5,800
6,135
84
4
12
374
34
3,072
15,51538,662

700
6,172
124
19
14
403
34
3,057
10,52332,53848,26551,051
699
39
100
3,112
283
25,564
129,113
321,729

6,762
9,108
2,387
(1,722)
16,535

6,762
9,108
1,788
(1,721)
15,93756,26675,791
19,863(14,325)
137,595

32
401
(910)
(477)
16,058¥ 54,720

22
313(1,208)(873)
15,064¥ 47,602

268
3,339(7,575)(3,968)
133,627$ 455,356

Contingent liabilities (Note 11)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2015
and 2014
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

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

4

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201507

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2015
2014
(Millions of yen)

Net sales
Cost of sales (Notes 4,6 and 14)
Gross profit
Selling, general and administrative expenses(Notes 6,10 and 17)
Operating income
Other income (expenses):
Interest and dividend income
Gain on sales of investment securities
Insurance premiums refunded cancellation
Foreign exchange income(loss), net
Interest expense
Loss on valuation of derivatives
Other, net
Ordinary income
Business structure improvement expenses(Note 18)
Environmental expenses
Impairment loss (Note 19)
Income before income taxes and minority
interest
Income taxes (Note 7):
Current
DeferredIncome before minority interest
Net income

Year ended
March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

¥ 43,799
34,387
9,412¥ 35,165
26,8918,274$ 364,477
286,156
78,321

8,390

7,538

69,818

1,022

736

8,503

15
－
17
364
(151)
(165)
36
1,138

59
76
42
(112)
(148)
－
(93)
560

125
－
139
3,031
(1,255)(1,370)
300
9,473

(93)
(71)
－
974

－
－
(17)
543

(773)
(597)
－
8,103

204
73
277
697

167
(11)
156
387

1,695
607
2,302
5,801

¥ 697

¥ 387

$

5,801

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

508

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2015
2014
(Millions of yen)

Net income before minority interests
Other comprehensive income: (Note 8)
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 the parent

Year ended
March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

¥ 697

¥ 387

$ 5,801

10
298
89
397
¥ 1,094

(35)
－
223
188
¥ 575

86
2,478
737
3,301
$ 9,102

1,094

575

9,102

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

6
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201509

Financial Section

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

Number ofshares ofcommonstock

Commonstock

Additional
paid-in
capitalBalance as of April 1, 2013
Net income
Dividends of surplus (Note 9)
Net change during the year
Purchase of treasury shares
Deficit disposition
Other net

51,926,194
–
–
–
–
–
–

6,762
–
–
–
–
–
–

9,995
–
–
–
–
(887)
–

Balance as of April 1, 2014

51,926,194¥ 6,762

Net income
Dividends of surplus (Note 9)
Net change during the year
Purchase of treasury shares
Deficit disposition
Other net

–
–
–
–
–
–

–
–
–
–
–
–

Balance as of March 31, 2015

51,926,194¥ 6,762¥¥

Retainedearnings

Treasurystock(Millions of yen)
514
(1,720)
387
–
–
–
–
–
–
(1)
887
–
–
–

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

Total

56
–
–
(34)
–
–
–

90
–
–
223
–
–
–

－
–
–
(1,208)–––15,697387–(1,019)
(1)
–
–

9,108

¥ 1,788¥ (1,721)

¥ 22

¥ 313

¥ (1,208)¥ 15,064

–
–
–
–
–
–

697
(98)
–
–
–
–

–
–
–
(1)
–
–

–
–
10
–
–
–

–
–
88
–
–
–

–
–
298
–
–
–

697
(98)
396
(1)
–
–

9,108

¥ 2,387¥ (1,722)

¥ 32

¥ 401

¥ (910)¥ 16,058$

2,602$ (10,053)$ 125,353(Thousands of U.S. dollars)
Balance as of April 1, 2014

$ 56,266$ 75,791$14,884$ (14,319)$ 182

Net income

–

–

5,801

–

–

–

–

5,801

Dividends of surplus (Note 9)

–

–

(822)

–

–

–

–

(822)

Net change during the year

–

–

–

–

86

737

2,478

3,301

Purchase of treasury shares
Deficit disposition

–

–

–

(6)

–

–

–

(6)

–
–

–
–

–
–

–
–

–
–

–
–

–
–

–
–

$ 56,266$ 75,791$ 19,863$ (14,325)$ 268$ 3,339$ (7,575)$ 133,627

Other net
Balance as of March 31, 2015

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20157

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2015
2014
(Millions of yen)

Year ended
March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

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

¥ 974
1,271
－
－
(58)
259
(15)
151
－
(0)
17
138
(7,638)
521
4,639
81
(758)
(418)
15
(147)
(200)
(750)

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

$ 8,103
10,581
－
－
(485)
2,159
(125)
1,255
－
(0)
145
1,149
(63,564)
4,334
38,607670(6,304)(3,475)122(1,222)(1,666)(6,241)

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

(0)
52
－
(218)
1
(113)
（278）

(10)
14
171
(37)
3
(202)
（61）

(0)
436
－
(1,814)
6(943)(2,315)

Financing activities:
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchases of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities(2,398)(57)
5,800(2,000)
(1)
(99)
1,245

(3,624)
(107)
–
–
(1)
－
(3,732)(19,959)(475)
48,265(16,643)(6)(822)
10,360Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

61
278
3,918
¥ 4,196

207
(316)
4,234
¥ 3,918508
2,312
32,605$ 34,917

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

8

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201511

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2015
1. Basis of Presentation
Shibaura Mechatronics Corporation (the “Company”) and its consolidated subsidiaries(collectively, the “Companies” or the “Group”) maintain their accounting records andprepare their financial statements in accordance with accounting principles generally
accepted in Japan. The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in Japan, which differ
in certain respects from the application and disclosure requirements of International
Financial Reporting Standards, and have been compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments andExchange Act of Japan. Certain reclassifications have been made to present theaccompanying consolidated financial statements in a format that is familiar to readers
outside Japan. In addition, the non-consolidated balance sheet of the Company as of March
31, 2015 and the non-consolidated statement of operations for the year then ended areincluded, as other information, in the accompanying consolidated financial statements.
The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company is incorporated and operates. The translation of yen
amounts into U.S. dollar amounts has been included solely for the convenience of readers
outside Japan. The translation has been made at the rate of ¥ 120.17 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2015. This translation should not be
construed as a representation that yen could be converted into U.S. dollars at the above or
any other rate.

9

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

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 on
acquisition, if applicable. All significant intercompany balances and transactions
have been eliminated in consolidation.
Investment in an unconsolidated subsidiary that is not deemed material to theconsolidated financial statements is stated at cost.
Certain subsidiaries have year end which differs from that of the Company. As a result,adjustments have been made for any significant transactions which took place during
the intervening period between the year end of the subsidiaries and that of theCompany.
(2) Foreign currency translation
The revenue and expense accounts of the overseas consolidated subsidiaries aretranslated into Japanese yen at the average rate of exchange in effect during each fiscal
year. The balance sheet accounts, except for the components of shareholders’ equity,
are also translated into Japanese yen at the rate of exchange in effect at each balance
sheet date. The components of shareholders’ equity are translated at their historicalexchange rates. Differences arising from translations are presented as “Foreign
currency translation adjustments,” a component of net assets in the accompanying
consolidated financial statements.
Foreign currency monetary assets and liabilities are translated into Japanese yen at therate of exchange in effect at each balance sheet date and the resulting translation gains
or losses are credited or charged to income.
(3) Cash and cash equivalents
The Company and its subsidiaries consider all highly liquid investments with amaturity of three months or less from their purchase dates to be cash equivalents.
(4) Securities
Marketable securities categorized as other securities are carried at fair value withunrealized holding gain or loss, net of applicable income taxes, accounted for as aseparate component of net assets. Non-marketable securities classified as othersecurities are stated at cost. Cost of securities sold is computed based on the moving
average method.
(5) Derivatives
All derivatives are carried at fair value.
10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201513

Financial Section

2.

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

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

3 – 60 years
2 – 17 years

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

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201511

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(10) Provision for contract losses
Provision for contract losses is provided at an amount considered to cover theestimated possible losses involved in orders for which loss occurrence is probablewhere the loss amount can be reasonably estimated at the balance sheet date.
(11) Provision for retirement benefits
An allowance for employees’ retirement benefits is provided, based on the projected
retirement benefit obligation and the fair value of the pension plan assets at of thebalance sheet date. The retirement benefit obligation for employees is attributed toeach period by the straight-line attribution method. Actuarial gain or loss is amortized
effective the year subsequent to the year in which they arise by the straight-line method
over a period of 10 years, which is shorter than the average remaining years of serviceof the employees. Prior service cost is amortized by the straight-line method over a
period of 10 years, which is within the estimated average remaining years of service ofthe eligible employees.
(12) Provision for directors’ retirement benefits
Certain directors, statutory auditors and corporate officers of the Company and certain
consolidated subsidiaries are entitled to lump-sum payments under their respective
unfunded retirement benefit plans. Provision for retirement allowances for theseofficers has been made at the estimated amounts which would be paid if all directors,
statutory auditors and corporate officers resigned as of the balance sheet date.
(13) Reserve for repair and maintenance
Certain research facilities acquired during the year ended March 31, 1995 requires
periodic repairs and maintenance. An accrual for these repair and maintenanceexpenses is recorded based on the current portion of the total expenses estimated forsuch repairs.
(14) Revenues and costs of construction contracts
Revenues and costs of construction contracts are recognized by the percentage ofcompletion method. The percentage of completion is calculated at the cost incurred asa percentage of the estimated total cost.
The completed-contract method continues to be applied for contracts for which thepercentage of completion cannot be reliably estimated.
(15) Leased assets
The depreciation of leased assets under finance lease is calculated using thestraight-line method over the lease term with residual value of zero.

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201515

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(16) Hedging accounting
Interest rate swaps which meet specific hedge criteria and qualify for special hedge
accounting treatment are not remeasured at fair value.
Hedging instruments and hedged items are summarized as follows:
Hedging instruments
Interest rate swap agreements ･･･

Hedged items
Interest on long-term debt

The Company uses financial instruments to hedge interest rate fluctuation risk exposed
to long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
(17) Research and development costs
Research and development costs are expensed as incurred and included in cost of sales
or selling, general and administrative expenses.
(18) Income taxes
Deferred tax assets and liabilities are determined based on the differences between
financial reporting and tax-based reporting of the assets and liabilities, and aremeasured using the statutory tax rates which will be in effect when the differences are
expected to be realized.
(19) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201513

Financial Section

3.

Investments in securities

At March 31, 2015 and 2014, marketable securities classified as other (available-for-sale)securities are summarized as follows:

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

March 312015
2014
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
sheet
sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 37
–
–
¥ 37

¥72
–
–
¥ 72

¥ 35
–
–
¥35

¥ 37
–
–
¥ 37

¥ 59
–
–
¥ 59

¥ 22
–
–
¥ 22

March 31,2015
Amountrecorded in
Acquisition the balance
sheet
costs
Difference(Thousands of U.S. dollars)

$308
–
–
$ 308

$604
–
–
$ 604

$296
–
–
$ 296

At March 31, 2015 and 2014, non-marketable securities carried at cost are summarized asfollows:
March 31,2015
2014
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

¥ 52
1

March 31,
2015
(Thousands of
U.S. dollars)$ 434
5

At March 31, 2015, other securities sold are summarized as follows:
Not applicable
At March 31, 2014, other securities sold are summarized as follows:

Sales amount
Shares
Bond
Other
Total

¥ 150
－
－
¥ 150

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

Total loss on
sales
－
－
－
－

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201517

Financial Section

4.

Inventories

Inventories at March 31, 2015 and 2014 are summarized as follows:
March 31,
2015
(Thousands of
U.S. dollars)

March 31,2015
2014
(Millions of yen)Finished products
Raw materials
Work in process
Total¥ 1,440
159
3,149¥ 4,748¥ 1,747156
3,902¥ 5,805$ 11,986
1,323
26,206$ 39,515

Inventories as of March 31, 2015 and 2014 were written down due to lower profitability
and unrealized loss on inventories included in cost of sales in the amount of ¥679 million($5,647 thousand) and ¥208 million, respectively.
5.

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, 2015 and 2014 were 1.0%.
Long-term debt at March 31, 2015 and 2014 are summarized as follows:
March 31,
2015
(Thousands of
U.S. dollars)

March 31,2015
2014
(Millions of yen)Unsecured:
0.8% to 1.3% loans from banks due 2015
to 2020
Lease obligations

6,500
123

2,700
180

54,090
1,024

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

6,623
739
5,884

2,880
2,056
¥ 824

55,1146,150$ 48,964¥

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2015 aresummarized as follows:
March 31, 2015
(Millions of(Thousands ofyen)
U.S. dollars)
2016
2017
2018
2019 and thereafter
Total

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

¥

739
35
836
5,013
¥ 6,623

$

6,150
293
6,952
41,719$ 55,114
15

Financial Section

5.

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

The Company entered into one-year contracts for commitment lines of credit with fivebanks in the aggregated amount of approximately ¥5,400 million ($44,936 thousand) for
efficient financial arrangements for operating funds on July 31, 2014. Out of which thebalance of bank borrowings at March 31, 2015 is zero.
6.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,
2015 and 2014 are as follows:Year ended March 31,
2015
2014
(Millions of yen)
¥ 1,856

Year ended
March 31,
2015
(Thousands of
U.S. dollars)¥ 1,726$ 15,446

7. Income Taxes and Deferred Tax Assets
The major components of deferred tax assets and liabilities as of March 31, 2015 and 2014
are summarized as follows:
March 31,2015
2014
(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Provision for contract losses
Accrual for periodic repairsEnterprise tax payable
Tax loss carried forward
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

March 31,
2015
(Thousands of
U.S. dollars)¥ 1,734
327
7
98
32
1,949
1,133
5,280
(4,337)943¥ 1,767
319
3
113
28
2,776
855
5,861
(4,849)1,012$ 14,428
2,719
58
813
265
16,224
9,431
43,938(36,090)
7,848

(4)

(1)

(35)

(72)
(76)
¥ 867

(70)
(71)
¥ 941

(604)
(639)
$ 7,209

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

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201519

Financial Section

7. Income Taxes and Deferred Tax Assets (continued)
Income taxes in Japan applicable to the Company and its domestic consolidated
subsidiaries consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in theaggregate, resulted in a statutory rate of approximately 35.6% and 38.0% for the years
ended March 31, 2015 and 2014, respectively. Income taxes of the foreign consolidated
subsidiaries are based generally on the tax rates applicable in their countries ofincorporation
The reconciliation between the effective tax rates reflected in the consolidated statement ofincome and the effective statutory tax rate for the years ended March 31, 2015 and 2014 aresummarized as follows:
March 31,2015
2014
Effective statutory tax rate
35.6%
38.0%
Effect of:
Non-deductible expenses
3.0
5.9
Change in valuation allowance(27.0)(40.4)
Inhabitants tax per capital
1.3
3.2
Different tax rates applied to foreign consolidated
1.3
3.8
subsidiaries
Foreign tax
4.2
2.1
Adjustments in deferred tax assets and liabilities
9.1
10.6
due to the change in tax rate
0.9
5.6
Other
Effective tax rates
28.4%
28.8%
Adjustment to deferred tax assets and deferred tax liabilities due to changes instatutory tax rates.
In line with the promulgation on March 31, 2015 of the “Act for Partial Amendment of the
Income Tax Act, etc.” (Act No.9 of 2015) and “Act for Partial Amendment of the Local
Tax Act, etc.” (Act No.2 of 2015), the corporate income tax rate will be lowered from fiscal
years beginning on or after April 1, 2015.
As a result, for temporary differences expected to be reversed in the fiscal year beginningon or after April 1, 2015, the effective statutory tax rate used to measure deferred tax assets
and liabilities will be changed from 35.6% to 33.1%. In addition for temporary differences
expected to be reversed in fiscal years beginning on or after April 1, 2016, the effective
statutory tax rate used to measure deferred tax assets and liabilities will be changed to32.3%.
The effect of these changes was to reduce deferred tax assets (net of deferred tax liabilities)by ¥56 million ($464 thousand) and increase “Income taxes-deferred” by the same amountas of and for the year ended March 31, 2015, respectively.
Additionally, beginning from fiscal years starting on or after April 1, 2015, the use of tax
loss carryforwards will be limited to the equivalent to 65% of taxable income before
deducting tax loss carryforwards, and beginning from fiscal years starting on or after April
1, 2017, the use of tax loss carryforwards will be limited to the equivalent to 50% of taxable
income before deducting tax loss carryforwards.
The effect of this change was to reduce deferred tax assets by ¥33 million ($272 thousand)and increase “Income taxes-deferred” by the same amount as of and for the year ended
March 31, 2015, respectively.

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201517

Financial Section

8. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income for the year ended March 31, 2015 and 2014:
March 31,2015
2014
(Millions of yen)
Valuation difference on other(available-for-sale) securities
Amount arising during the year
Reclassification adjustments for gains
and losses included in net income
Amount before tax effectTax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Amount arising during the year
Reclassification adjustments for gains
and losses included in net income
Amount before tax effectTax effectForeign currency translation adjustment
Remeasurements of defined benefit plans
Amount arising during the year
Reclassification adjustments for gains
and losses included in net income
Amount before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income

March 31,
2015
(Thousands of
U.S. dollars)

¥13

¥ 20

$ 112

–
13
(3)
10

(76)
(56)
21
(35)

–
112
(26)
86

89

223

737

–
89
–
89

–
223
–
223

–
737
–
737

41

–

341

257
298
–
298

–
–
–
–

2,137
2,478
–
2,478

¥ 397

¥ 188

$ 3,301

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201521

Financial Section

9. Information on dividends
The Company paid cash dividends as follows:
Date of board
resolution
May 16,
2014

Class ofstock
Commonstock

Total dividend
amountDividend
per share¥ 98 million¥2.00

Reference
date
March 31,2014

Effective
date
June 3,
2014

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 15,
2015

Class ofstock
Commonstock

Total dividend
amount¥ 148 million

Source ofdividends
Retainedearnings

Dividend
per share¥3.00

Reference
date
March 31,2015

Effective
date
June 2,
2015

10. Retirement Benefits
The Companies and its domestic consolidated subsidiaries have defined benefit pension
plans and lump-sum retirement payment plans which cover substantially all employees who
retire from the Companies. Eligible employees may also receive additional payments under
the plans.
Certain consolidated subsidiaries use a simplified method for calculating retirement benefit
expenses and liabilities.
The changes in the retirement benefit obligation for the years ended March 31, 2015 and2014 are as follows:

Balance at the beginning of the year
Service costs
Interest costs
Actuarial loss
Retirement benefit paid
Balance at the end of the year

22

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)¥ 8,292¥ 7,728$ 69,003
349
313
2,900
119
154
994
(49)
572
(407)
(361)
(475)
(3,002)¥ 8,350¥ 8,292$ 69,488

19

Financial Section

10. Retirement Benefits (continued)
The changes in plan assets for the years ended March 31, 2015 and 2014 are as follows:

Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)¥ 2,673¥ 2,676$ 22,241
93
94
778
(8)
(35)
(66)
324
289
2,694
(255)
(351)
(2,122)¥ 2,827¥ 2,673$ 23,525

The change in net defined benefit liability that calculated by the simplified method for theyears ended March 31, 2015 and 2014 are as follows:

Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)
¥ 553
¥ 479
$ 4,600
114
182
949
(54)
(108)
(450)
(2)
0
(11)
¥ 611
¥ 553
$ 5,088

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201523

Financial Section

10. Retirement Benefits (continued)
The following table sets forth the funded status of the plans and the amounts recognized in
the consolidated balance sheet as of March 31, 2015 and 2014 for the Company’s and theconsolidated subsidiaries’ defined benefit plans:

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

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)¥ 5,516¥ 5,499$ 45,901(2,827)(2,673)(23,525)
2,689
2,826
22,376
3,446
3,346
28,675
6,135

6,172

51,051

6,135

6,172

51,051¥ 6,135¥ 6,172$ 51,051

Notes:Net defined benefit liability calculated by the simplified method is included.
The components of retirement benefit expense for the years ended March 31, 2015 and2014 are as follows:

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

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)
¥ 349
¥ 313
$ 2,900
119
155
994
(94)
(94)
(779)
274
145
2,278
(17)
(17)
(141)
114

182

949

¥ 745

¥ 684

$ 6,20121

Financial Section

10. Retirement Benefits (continued)
The components of retirement benefits liability adjustments included in othercomprehensive income (before tax effect) for the years ended March 31, 2015 and 2014 are
as follows:

Prior service cost
Actuarial gain and loss
Total

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)
¥ 17
–
$141
–
(2,619)(315)¥(298)¥–$ (2,478)

Unrecognized prior service cost and unrecognized actuarial loss included in accumulated
other comprehensive income (before tax effect) as of March 31, 2015 and 2014 are as
follows:

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousandsof U.S.
dollars)¥ (116)¥ (133)$ (962)
1,026
1,341
8,537
¥ 910
¥ 1,208$ 7,575

The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2015 and 2014 are as follows:

Bonds
General Accounts
Other
Total

Year ended March 31,
2015
2014
56.2%
55.3%
42.5%
43.4%
1.3%
1.3%
100.0%
100.0%The expected return on assets has been estimated based on the anticipated allocation to each
asset class and the expected long-term returns on assets held in each category.

22

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201525

Financial Section

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

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

Year ended March 31,
2015
2014
1.44%
1.44%
3.5%
3.5%
5.1%
5.1%
70.0%
70.0%

11. Contingent Liabilities
The Company had the following contingent liability as of March 31, 2015 and 2014 are as
follows:
Year ended March 31,
2015
2014
2015
(Millions of yen)(Thousands of
U.S. dollars)
Guarantee for housing loans of employees

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

¥ 12

¥ 15

$ 103

23

Financial Section

12. Derivatives and Hedging Activities
The Company has entered into interest-rate swap contracts to manage its exposure tointerest-rate risk on long-term debt. As a matter of policy, the Company does not enter into
derivative transactions for trading purposes. The Company does not anticipate
nonperformance by any of the counterparties to the above transactions, all of whom aredomestic financial institutions with high credit ratings.
In accordance with the Company’s policy, derivative transactions are entered into under thedecision-making rules approved by the Management Strategy Committee of the Company.
The department which has the responsibility to enter into such contracts monitors andcontrols the inherent risk and performance on a daily basis and reports these to managementof the Company, if and when necessary.
In accordance with the special hedge accounting under the Accounting Standard for
Financial Instruments, the Company does not record certain interest-rate swap
arrangements at fair value but charges or credits the net cash flows from the swap
arrangements to the interest arising from the respective hedged borrowings.
At March 31, 2015 and 2014, the fair value information for derivatives, for which the hedge
accounting were applied, was not presented since all derivatives were accounted for using
the special hedge accounting and accordingly their fair value recorded as part of fair valueof the hedged borrowings.
Ⅰ. Derivative transactions which do not qualify for hedge accounting
Currency-rated transaction

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

Not applicableYear ended March 31, 2015
Contract
Contract
AmountFair
Gain/Loss
Amount Over 1 Year
Value
(Millions of yen)

¥ 2,295¥ 2,295¥－¥－¥ (65)¥ (65)¥ (65)¥ (65)

¥ 39
¥ 39

¥－
¥－

¥0
¥0

¥0
¥0

Year ended March 31, 2014

24

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201527

Financial Section

12. Derivatives and Hedging Activities (continued)

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

Year ended March 31, 2015
Contract
Contract
AmountFair
Gain/Loss
Amount Over 1 Year
Value
(Thousands of U.S. dollars)$ 19,099$ 19,099$－$－$ (538)$ (538)$ (538)$ (538)

$ 321
$ 321

$－
$－

$4
$4

$4
$4

Notes:
Fair value is principally based on obtaining quotes from financial institutions singing thecontract.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
Year ended March 31, 2015
Type of derivativetransaction

Principal Item
HedgedContract
AmountContract
AmountOver 1 Year

Fair Value(Millions of yen)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

¥ 6,000¥ 5,300¥－

Year ended March 31, 2014
Type of derivativetransaction

Principal Item
HedgedContract
AmountContract
AmountOver 1 Year

Fair Value(Millions of yen)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

¥ 2,700¥ 700¥－

Year ended March 31, 2015
Type of derivativetransaction

Principal Item
HedgedContract
AmountContract
AmountOver 1 Year

Fair Value(Thousands of U.S. dollars)Interest rate swap transaction
Pay fixed/Receive variable

Long-term debt

$ 49,929$ 44,104$－

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

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201525

Financial Section

13. Financial Instruments① Matters relating to financial instruments(1) Policy of Financial Instruments
The Group procure capital investments primarily through bank loans to secure theprincipals and maintain liquidity. Derivatives are used, not for speculative nor
trading purposes, but to manage risk of foreign currency exchange rate and interest
rate fluctuations arising from business operations.
(2) Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to customer’s
credit risk. Receivables from each customer are constantly checked to reduce risk of
costumer’s default.
Investment securities are mainly debt or equity securities of customers of the Groupand exposed to the issuer’s credit risk and market price fluctuation risk.
While foreign currency-denominated operating receivables are exposed to exchange
rate fluctuation risk, we evade this risk by, as a general rule, primarily utilizing aforward exchange contract of foreign currency-denominated operating payables.
Trade payables, which are operating payables, are due for payment within a year.
Short-term bank loans are used to primarily to procure business transaction’s funds,
while long-term debt is used to procure funds required for long-term stability.
Although some items with variable interest rates are exposed to interest rate
fluctuation risk, we used derivative transactions (interest rate swaps) in part to fix
interest payments. Derivatives which are shown in the below table do not represent
the amounts exchanged by the parties and do not measure the Group’s exposure tocredit or market risk. To control credit risk related to derivatives, based on aninternal guide line, the Group has derivatives with counterparties which has highcredit grade. In addition, the Treasury Division of the Group regularly monitors risk
and profit and loss, and reports them to it’s Executive Committee.
Operating payables and bank loans are exposed to the liquidity risk.
Each of the Group performs cash management using monthly cash flow
information.
(3) Supplements on fair value of financial instruments
Fair values of financial instruments are based on their quoted price in active markets.
If the quoted price is not available, other rational valuation techniques are usedinstead. The results of valuation may differ among assumptions because the rational
techniques include variable factors. The contract or notional amounts of derivatives
which are shown in the below table do not represent the amounts exchanged by theparties and do not measure the Companies’ exposure to credit or market risk.

26

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201529

Financial Section

13. Financial Instruments (continued)② Matters concerning the market value of financial instruments, etc.
Amounts as of March 31, 2015 and 2014 on the accompanying consolidated balance sheet
fair value and variance are as follows.
March 31, 2015
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits¥¥ 4,214¥ 4,21430,56830,568

－

322

322

－

74

74

－

(5) Notes and accounts payable, trade(12,619)(12,619)－(6) Short-term bank loans(5,720)(5,720)

－

(700)

(700)

－

(8) Long-term debt

(5,800)(5,778)22(9) Other long-term liabilities(3,072)(2,452)620(10) Derivatives transaction

(65)

(65)

－

(2) Notes and accounts receivable, trade(3) Electronically recorded monetary claims(4) Investment securities: Other securities(7) Current portion of long-term debt－

March 31, 2014
Carrying Value

Fair Value

Difference(Millions of yen)
(1) Cash and bank deposits(2) Notes and accounts receivable, trade(3) Electronically recorded monetary claims(4) Investment securities: Other securities¥¥ 3,987¥ 3,987

23,20923,209

－

1

1

－

－

60

60

－

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

(2,000)(2,000)－(8) Long-term debt
(9) Other long-term liabilities

(700)

(695)

5

(3,057)(2,267)790

March 31, 2015
Carrying Value

Fair Value

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

30$

35,065$35,065$－

254,370

254,370

－

2,684

2,684

－

609

609

－

(5) Notes and accounts payable, trade(105,005)(105,005)－(6) Short-term bank loans(47,599)(47,599)－(7) Current portion of long-term debt

(5,825)(5,825)－(8) Long-term debt

(48,265)(48,078)

187(9) Other long-term liabilities(25,564)(20,407)5,157(10) Derivatives transaction

(534)

(534)

－

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201527

Financial Section

13.

Financial Instruments (continued)(*)A liability is persecuted in parentheses in the above table.
Notes:a)Method of measurement of fair value of financial instruments and matters concerning
securities and derivative transactions(1) Cash and bank deposits, (2) Notes and accounts receivable, trade, and(3) Electronically recorded monetary claims
As these items are settled in a short period of time and the fair value is almost
equal to the book value, their book value is presented.
(4) Investment securities - Other securities
The fair value of equity securities represents the price on the stock exchange.
(5) Notes and accounts payable, trade, (6) Short-term bank loans, (7) Current portionof long –term debt
As these items are settled in a short period of time and the fair value is almost
equal to the book value, their book value is presented.
(8) Long-term debt
As for fair value of long-term debt, future cash flows from payments for principal
and interest are discounted at the interest rate applicable to similar new loan tothe present value. As for long-term debt with floating interest rate subject to thespecial hedge accounting with designated interest rate swap, future cash flows
from payments for principal and interest, combined with cash flows from thedesignated interest rate swap, are discounted at the interest rate applicable tosimilar new loan to the present value.
(9) Other long-term liabilities
Other long-term liabilities consist of Long-term guarantee deposited. The fairvalue of other long-term liabilities is discounted at the risk-free interest rates of
future cash flows to the present value.
(10) Derivatives transaction
See Note 12 for the detail of derivative transaction.

b) As non-marketable equity securities of ¥52 million ($434 thousand) do not have aquoted market price and the future cash flow cannot be estimated, we consider it
extremely difficult to determine their fair value. Hence, the items are not included in“(3) Investment securities - Other securities.”

28

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201531

Financial Section

13.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥4,197 million ($34,926 thousand), Notes and accounts
receivable, trade of ¥30,568 million ($254,370 thousand), Electronically recordedmonetary claims of ¥322 million ($2,684 thousand) are due within one year
subsequent to March 31, 2015 and Cash and bank deposits of ¥3,967 million, Notes
and accounts receivable, trade of ¥23,209 million, Electronically recorded monetaryclaims of ¥1million are due within one year subsequent to March 31, 2014.

14. Investment in Rental Property
The Company owns an office building (including land) for rent for third parties in
Yokohama city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Carrying AmountMarch 31,2014
Rental property¥ 6,296

March 31,
Decrease
2015(Millions of yen)
¥ 242
¥ 6,054

At March 31,
2015 Fair
Value¥ 7,095

Carrying AmountMarch 31,2013
Rental property¥ 6,524

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

At March 31,
2014 Fair
Value¥ 6,343

Carrying AmountMarch 31,2014
Rental property$ 52,389

At March 31,
March 31,2015 Fair
Decrease
2015
Value(Thousands of U.S. dollars)$ 2,015$ 50,374$ 59,039

Notes:

32a)

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

b)

Decrease represents depreciation during the year.

c)

Fair value at March 31, 2015 and 2014 is internally determined by the Company
based on the real-estate appraisal standard.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201529

Financial Section

14. Investment in Rental Property (continued)
Information on Consolidated Statement of Operations

Rental property

Year ended March 31, 2015
Rental income Rental costs Difference(Millions of yen)
¥ 1,732¥ 1,339¥ 393

Rental property

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

Rental property

Year ended March 31, 2015
Rental income Rental costs Difference(Thousands of U.S. dollars)$ 14,416$ 11,141$ 3,275

Notes:
Because the rental property includes an office space internally used by the Company, rental
income related to the internally－used office space is not included in the above. Costs
incidental to this real estate, such as depreciation, repair cost, insurance cost, taxes andpublic charges, are included in rental costs.

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201533

Financial Section

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

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201531

Financial Section

15. 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, 2015 and 2014 is summarized asfollows:
Year ended March 31, 2015
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Millions of yen)
Sales
Sales to external customers
Intersegment sales or transfers¥ 23,14512¥ 16,903
180¥ 1,7860¥ 1,965–¥ 43,799
192

Total sales
Segment income (loss)

23,157(481)

17,083
1,321

1,786
29

1,965
451

43,991
1,320

Segment assets

29,34913,917

1,541

6,732

51,539

485
–
13
6

385
–
0
12

43
–
0
10

358
–
–
–

1,271
–
13
28

438

293

27

39

797

Real estateleasing

Total

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

Year ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(Millions of yen)

Sales
Sales to external customers
Intersegment sales or transfers¥ 21,23122¥ 9,832
155¥2,1383¥ 1,964–¥ 35,165
180

Total sales
Segment income (loss)

21,253
1,081

9,987
(503)

2,141
31

1,964
398

35,345
1,007

Segment assets

24,895

11,317

1,559

6,816

44,587

579
10
15
5

370
–
0
5

46
–
0
1

364
–
–
–

1,359
10
15
11

862

269

13

52

1,196

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

32

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201535

Financial Section

15. Segment Information (continued)
Year ended March 31, 2015
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 192,605
98$ 140,658
1,495$ 14,8643$ 16,350–$ 364,477
1,596

Total sales
Segment income (loss)

192,703(3,998)142,153
10,991

14,867242

16,3503,750

366,073
10,985

Segment assets

244,230

115,810

12,82756,016

428,883

4,038
–
110
52

3,204
–
0
102

355
–
0
83

2,984
–
–
–

10,581
–
110
237

3,647

2,440

227

319

6,633

Other
Depreciation and amortization
Amortization of goodwill
Interest income
Interest expense
Increase in tangible and intangible
fixed assets(4) Reconciliations between the reporting segment total and the amounts presented in the
consolidated financial statements.
a) Segment income
Year ended March 31,
2015
2014
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2015
(Thousands of
U.S. dollars)

Reporting segments¥ 1,320¥ 1,007$ 10,985

Unallocated amounts

(330)

(306)

(2,746)

Other

148

(141)

1,234

¥ 1,138¥ 560$ 9,473

Consolidated

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

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201533

Financial Section

15. Segment Information (continued)b) Segment assets
Year ended March 31,
2015
2014
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2015
(Thousands of
U.S. dollars)

Reporting segments¥ 51,539¥ 44,587$ 428,883

Unallocated amounts

3,181

3,015

26,473¥ 54,720¥ 47,602$ 455,356

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, 2015

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

Reportingsegments

Adjustment
amount¥ 1,271–
13
28(Millions of yen)
¥
–
–
1
123

797

Consolidated¥ 1,271
–
14
151

–

797

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 10,581$–$ 10,581
–
–
–
111
3
114
237
1,018
1,255
6,633

–

6,633

Year ended March 31, 2014

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

Reportingsegments

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

¥ 1,359
10
16
148

1,196

–

1,196

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201537

Financial Section

15. 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, 2015
Japan

Northeastern Asia
Other
(Millions of yen)

¥ 18,533¥ 24,492

¥ 774

Total

¥ 43,799

Year ended March 31, 2014
Japan

Northeastern Asia
Other
(Millions of yen)

¥ 17,553¥ 16,423

Japan

Northeastern Asia

¥ 1,189

Total¥ 35,165

Year ended March 31, 2015
Other

Total

(Thousands of U.S. dollars)$ 154,222$ 203,809$ 6,446$ 364,477

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
Year ended March 31, 2015
Japan

Northeastern Asia
(Millions of yen)Total

¥ 11,197¥¥ 11,203

6

Year ended March 31, 2014
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 11,650¥7¥ 11,657

Year ended March 31, 2015
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 93,175

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

$ 55

$ 93,230

35

Financial Section

15. Segment Information (continued)c) Information by main customer
Year ended March 31, 2015
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems(Millions of yen)
¥ 5,589

Sales to NANJING CEC
PANDA FPD TECHNOLOGY
CO.,LTD
Sales to Toshiba Company¥ 4,692

Year ended March 31, 2014
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems(Millions of yen)
¥ 2,275

Sales to NANJING CEC
PANDA FPD TECHNOLOGY
CO.,LTD
Sales to Toshiba Company¥ 4,439

Year ended March 31, 2015
Fine mechatronics andMechatronics systems
Fine mechatronics andMechatronics systems

Sales to NANJING CEC
PANDA FPD TECHNOLOGY
CO.,LTD
Sales to Toshiba Company(Thousands of U.S. dollars)$ 46,513$ 39,042③ Impairment losses on fixed assets by reporting segment
Balance as of March 31, 2015: Not applicableYear ended March 31, 2014
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total

¥ –

¥ 17

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

¥ –

¥ 17

¥ –

④ Depreciation and remaining carrying value of goodwill by reporting segment
Balance as of March 31, 2015: Not applicable
Balance as of March 31, 2014: Not applicable⑤ Gain on negative goodwill by reporting segment
Balance as of March 31, 2015: Not applicable
Balance as of March 31, 2014: Not applicable

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201539

Financial Section

16. Non-cash Transactions
Lease assets and lease obligations recorded relating to lease transactions were notapplicable for the year ended March 31, 2015 and ¥3 million, respectively for the year
ended March 31, 2014.
17. Selling, General and Administrative Expenses
For the years ended March 31, 2015 and 2014, major selling, general and administrative
expenses are summarized as follows:
March 31,2015
2014
(Millions of yen)
Packing and delivery expenses
Sales commission
Advertising expenses
Employees' salaries and allowances
Provision for director’s bonuses
Provision of allowance for doubtful
accounts
Retirement benefit expenses
Provision for directors' retirement
benefits
Depreciation
Rent expenses
Development and research expenses

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

¥

151
512
5
4,047
23

¥

March 31,
2015
(Thousands of
U.S. dollars)

96
247
4
3,758
23

$ 1,259
4,263
44
33,678
190

(57)
356

48
255

(471)
2,958

4
691
109
1,855

2
725
114
1,725

34
5,752
911
15,44037

Financial Section

18. Business structure improvement expenses
The Business structure improvement expenses for the year ended March 31, 2015 are as
follows:
The expenses associated with expansion of leasing business on land owned in Obama,
Fukui consisted of a loss on abandonment of non-current assets in the amount of ¥49
million and site maintenance costs of ¥44 million.
19. Impairment losses
The major assets with respect to which impairment losses were recorded for the fiscal year
ended March 31, 2014 are as follows.
Location

Use

Classification

Shibaura Hi-tech Corporation (Obama Fukui)

Idle assets

Buildings and equipment

The Companies mainly groups their assets by each operating division for the assets
held and used at the Company, by each subsidiary for the assets held and used at
subsidiaries and by each asset for idled assets with no plan to use.
The book values the above assets were written down to the respective recoverable
amounts because these were in the idle condition and their future use was notdetermined.
The Company recorded a loss on impairment of fixed assets of ¥17 million, which
consisted of ¥14 million for “Buildings” and ¥3 million for “Equipment”.
In addition, the recoverable amount was determined at the memorandum value sinceno future cash flows were unpredictable.

38
SHIBAURA MECHATRONICS CORPORATION
Annual Report 201541

Financial Section

20. Related Party Transactions
Toshiba Corporation held 39.1 % of the Company’s voting rights as of March 31, 2015 and2014.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation andreceived rent revenue from Toshiba Corporation. The aggregate amounts of thesetransactions were ¥4,692 million ($39,042 thousand) and ¥4,439 million for the years ended
March 31, 2015 and 2014, respectively.
The Company purchased raw materials from Toshiba Corporation totaling ¥119 million($994 thousand) and ¥447 million for the years ended March 31, 2015 and 2014,
respectively.
Amounts due from and to Toshiba Corporation at March 31, 2015 and 2014 were as
follows:
March 31,

2015
2014
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation¥ 1,3173,233¥ 1,346
3,269

March 31,
2015
(Thousands of
U.S. dollars)$ 10,958
26,902

39

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Financial Section

21. Per Share Information
Basic net income per share is computed based on the net income available for distribution
to shareholders of common stock and the weighted-average number of shares of common
stock outstanding during each year. Diluted net income per share is computed based on
the net income available for distribution to the shareholders and the weighted-average
number of shares of common stock outstanding during each year, assuming full dilution ofcommon stock equivalents. A net asset per share is computed based on theweighted-average number of shares of common stock outstanding at each balance sheet
date.
Year ended March 31,
2015
2014
(Yen)
Net income (loss):– Basic
Net assets

¥

14.11
325.01¥

7.83
304.87

Year ended
March 31,2015
(U.S. dollars)$ 0.122.70

Notes:The information regarding diluted net income per share for the years ended March 31, 2015
and 2014 is omitted because of no stock with dilutive effect.

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201543

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Balance Sheet

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

44

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

March 31,
March 31,2015
2014
(Millions of yen)March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

¥ 2,135¥ 1,704$ 17,764

0
322

24
1

1
2,684

26,872
(389)
3,695
393
1,625

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

223,619(3,239)30,747
3,270
13,526843
946
36,442

243
1,584
30,116

7,012
7,869
303,25369
27,8563,238
58
525
31,746(20,890)
10,85669
27,8402,565
89
646
31,209(19,996)
11,213572
231,81126,943482
4,370
264,178(173,841)
90,337

73
372

59
372

609
3,099

186
522
294
(0)
1,447

187
612
298
(0)
1,528

1,550
4,340
2,445
(2)
12,041¥ 48,745¥ 42,857$ 405,631
41

Financial Section

March 31,

2015
2014
(Millions of yen)
Liabilities and net assets
Current liabilities:
Short-term bank loans
Current portion of long-term debt
Notes and accounts payable, trade:
Notes
Accounts
Advances received
Lease obligations
Provision for directors’ bonuses
Provision for contract losses
Other accounts payable
Accrued expenses
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Lease obligations
Long-term accounts payable-other
Provision for retirement benefits
Reserve for repair and maintenance
Other long-term liabilities
Asset retirement obligations
Total long-term liabilities
Total liabilities
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March
31, 2015 and 2014
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Net unrealized holding gain on othersecurities
Total net assets
Total liabilities and net assets

March 31,
2015
(Thousands of
U.S. dollars)(Note 1)

¥ 4,700700¥ 7,5182,000$ 39,111
5,825

3,248
7,406
367
6
23
21
9
2,517
145
95
19,237

1,794
5,210
283
15
23
8
44
1,959
126
183
19,16327,02961,627
3,055
47
192
176
75
20,9461,205
792
160,080

5,800
12
5
4,613
374
3,072
22
13,89833,135

700
18
19
4,412
403
3,057
21
8,630
27,79348,265103
39
38,3883,112
25,564
178
115,649
275,729

6,762
9,108
1,431
(1,722)
15,579

6,762
9,108
894
(1,721)
15,04356,26675,791
11,910(14,325)
129,642

31

21

260

15,610¥ 48,745

15,064¥ 42,857

129,902$ 405,631

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201545

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Statement of Operations
Year ended March 31,
2015
2014
(Millions of yen)

Net sales
Cost of sales
Gross profit¥ 34,122
27,712
6,410¥ 26,227
20,646
5,581$ 283,949
230,61153,338Selling, general and administrative expenses
Operating income

6,309
101

5,575
6

52,501
837

Other income (expenses):
Interest and dividend income
Rent income
Interest expenses
Business advisory fee
Technical advisory fee
Reversal of allowance for doubtful accounts
Foreign exchange gains (loss) ,net
Rent expenses
Loss on valuation of derivatives
Other, net
Ordinary income
Business structure improvement expenses
Environmental expenses
Income before income taxes

171
115
(141)
350
103
159
366
(113)
(172)
9
948
(104)
(71)
773

732
124
(137)
299
99
22
(107)
(111)
－
(54)
873
－
－
873

1,428
956
(1,171)
2,910
862
1,321
3,044
(936)
(1,434)
74
7,891
(864)
(597)
6,430

31
106
137
¥ 636

(26)
5
(21)
¥ 894

259
881
1,140
5,290

Income taxes:
Current
Deferred
Net income(Yen)
Per share of common stock:
Net income
Cash dividends applicable to the year

46

Year ended
March 31,
2015
(Thousands of
U.S. dollars)(Note 1)SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

¥ 12.87
3.00¥ 18.10
2.00$(U.S. dollars)$ 0.11
0.02

43

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201547

Board of Directors
As of July 29, 2015

Directors

Shigeki Fujita

Makoto Fujino

Hitoshi Dojima

Yoshitsugu Ogawa

President and Chief Executive Officer

Senior Vice President

Senior Vice President

Senior Vice President

Executive General Manager ofFine Mechatronics Division

Chief Financial Officer

Executive General Manager of
Mechatronics System Division

Satoru Hara

Takashi Nozawa

Keigo Imamura

Hisashi Shindo

Vice President

Vice President

Vice President

Vice President

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

Deputy Executive General Manager of
Mechatronics System Division

Executive General Manager of
Production & Procurement Division

Deputy Executive General Manager of
Mechatronics System Division
Deputy Executive General Manager ofFine Mechatronics Division

Takashi Arai

Sennosuke Yoshida

Tomoko Inaba

Vice President

Outside Vice President

Outside Vice President

Yoshimi Sekiya

Kazumasa Uchida

Nobukiyo Ishikawa

AuditorOutside Auditor

Outside Auditor

Deputy Executive General Manager ofFine Mechatronics Division

Auditors

48

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2015

Investor Information
As of March 31, 2015

Date Established

October 12, 1939

Capital6,761Million-Yen

Number of Employees

Consolidated

Common Stock

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

Number of Shareholders

6,409

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited

Independent Auditor

ERNST ＆ YOUNG SHINNIHON LLC

Headquarters

2-5-1, Kasama, Sakae-ku, Yokohama, Kanagawa Pref. 247-8610, Japan
TEL : +81-45-897-2421 FAX : +81-45-897-2470
http://www.shibaura.co.jp/: 1,174

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

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

High (yen)Low (yen)

2015
384
220

2014
333
181

2013
252
112

2012
344
191

2011
508
162

Principal Shareholders

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

Number of shares hold

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

18,977

38.4
3.8
2.3

1,862
1,127

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201549

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

SKB0317A 1509
EDC150252