ANNUAL REPORT 2016
ProfileShibaura Mechatronics was established in 1939 as Shibaura Engineering Works Co., Ltd. Initially, our primary focus wason the motor business, but in 1998 we reestablished ourselves as a producer of manufacturing equipment for FPDs* andsemiconductors. At that time the company took its present name, Shibaura Mechatronics Corporation.
Shibaura Mechatronics Group brings core know-how cultivated over many years to total solutions in areas as diverse as highaccuracy mechatronics, cleaning, vacuum processing, sputtering, etching and bonding technologies. Our capabilities, range fromthe development of manufacturing equipment for FPDs, semiconductors, electronic components and optical thin films to theprovision of comprehensive service support.
*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・ ・・・・・・・・・・・・・・・・・・・46

Investor Information・ ・・・・・・・・・・・・・・・・・・47

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

Financial Highlights
Year ended
March 31,2016

Year ended March 31,
2016

2015

2014

2013

2012

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

(Millions of yen)

Consolidated

Net sales￥ 45,550		 ￥ 43,799		 ￥ 35,165		 ￥ 30,400		 ￥ 39,360
Orders received		 45,077
45,300 		40,000 		41,300 		34,300
Operating income (loss)		 1,292 		 1,022 		
736 		
60 		 (370 )Net income (loss)		
743 		
697 		
387 		
(1,416)			
(394 )$ 404,236
			 400,044
			 11,463
			
6,595

Depreciation and amortization		
Capital expenditures		R&D expenses		

1,411		1,536		2,065		

1,271		797		1,856		

1,359		1,195		1,726		

1,424		575		1,805		

1,503
1,120
2,064

			 12,525
			 13,633
			 18,325

Total assets		 56,253		

54,720		

47,602		

50,767		

52,943

			 499,230

Net assets		 15,675		

16,058		

15,064		

15,697		

16,948

			 139,112(yen)￥ 15.04		 ￥ 14.11		 ￥Net income (loss) per share

Number of employees		

1,177		

1,174		

(U.S. dollars)

7.83		 ￥ (28.66 )1,210		￥ (7.98 )

$

0.13

1,496

		

1,177

1,285		

Note 1 : The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ￥112.68 = U.S.$1.00, as of March 31, 2016.

Net Sales(¥Billions)

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

Net Income (loss)(¥Billions)

1.3
43.8

45.5

45.3
41.3

39.4
35.2

45.1

1.0
0.7

40.0

0.7

0.7

'15

'16

0.4

34.3

30.4

0.1

-0.4

-0.4

-1.4
'12

'13

'14

'15

'16

'12

'13

'14

'15

'16

'12

'13

'14

'15

'16

'12

'13

'14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201601

To Our Shareholders

As we further accelerate initiatives for business structural reform,
we will also continue to strengthen the management structure.
In FY2015, we saw continued general uncertainty in Shibaura
Mechatronics Group's business environment. Overseas, there
were uncertain factors such as economic slowdown andgeopolitical risk increased in the Middle East. In the domestic
market, concerns have intensified with the rapid appreciationof the yen and falling stock prices since the start of 2016.
Even with these risks, the Group has seen orders andsales for FPD manufacturing equipment remain strong. In
semiconductor manufacturing equipment, we have seen
increases for the back-end process, and while there was
weakness in the front-end process in the first half of FY2015,
the trend in 2016 is to recovery. Overall orders are at the samelevel as last year and sales have increased.
As a result of the foregoing, consolidated net sales in FY2015
were 45,550 million yen, consolidated operating income was
1,292 million yen, and consolidated net income was 743
million yen.
Looking to FY2016, we can see uncertainties in the businessenvironment, overseas and in Japan, but we believe

02

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016that capital investment will continue in both the FPD andsemiconductor industries.
In the FPD industry, capital investment has been lively,
particularly for OLED. Based on the core technologies wehave cultivated in FPD manufacturing equipment, we havedeveloped OLED manufacturing equipment, and we will work
to win orders for it. In the semiconductor industry, investment
in advanced fields is expected to be strong at foundries andmemory makers, and here we are making efforts to increase
orders through technological innovation. We are also working to
win orders in the expanding market for IoT (Internet of Things).
Shibaura Mechatronics Group will primarily concentrate on
winning orders in growth orders, and continue efforts to securebusiness growth. As we do so, we will also continue to work tostrengthen the management structure.

Shigeki Fujita
President and Chief Executive Officer

Financial Review
Results Summary

we received large-scale orders for solar cell manufacturing

In FY2015 Shibaura Mechatronics recorded orders received

sales both decreased.

of 45,077 million yen (a year-on-year fall of 0.5%), net sales of

The division as a whole recorded lower orders and sales.

45,550 million yen (a year-on-year increase of 4.0%), operating

In this segment too, we made investments in research andincome of 1,292 million yen (a year-on-year increase of 26.4%),

development for the future, and had to write down inventory

ordinary income of 1,173 million yen (a year-on-year increase

assets. However the share of sales from highly profitableof 3.0%), and net income of 743 million yen (a year-on-year

equipment increased, resulting in an increase in segment

increase of 6.6%).

profit.

equipment. For vacuum application equipment orders and

The Results for each business segment were as follows:

1. Fine Mechatronics Segment
The segment recorded net sales of 26,536 million yen (ayear-on-year increase of 14.7%) and a loss of 221 million
yen (against a loss of 481 million yen in the previous fiscal
year).
In FPD front-end processing, orders of equipment for smalland medium-sized panels increased, as did orders forequipment for large panels, with the overall result of higher
orders. In terms of sales, equipment for small- and mediumsized panels saw an increase, and even though equipment
for large panels saw a decrease, the result was an overall
increase.
In semiconductor front-end processes, despite a recovery inorders for semiconductor wet equipment in the second half,
overall orders and sales both decreased. Orders and sales
both increased for semiconductor mask-related equipment.
The division as a whole saw an overall rise in both orders
and sales. However, due to factors such as investment
in research and development for the future and inventory
asset write-downs, the segment recorded a loss, though it
did see an improvement of 260 million yen.

3. Vending Machines and Systems Segment
The segment recorded net sales of 1,645 million yen (ayear-on-year fall of 7.9%), and a loss of 55 million yen(against income of 29 million yen in the previous fiscal year).
Sales decreased, mainly in ticket vending machines, and as
a result of factors such as inventory asset write-downs thesegment loss increased.
4. Real Estate Leasing Segment
Real estate rental income increased as anticipated, and thesegment recorded net sales of 2,033 million yen (a yearon-year increase of 3.4%) and income of 504 million yen (ayear-on-year increase of 11.8%).

Research and Development Expenditure
The Shibaura Mechatronics Group as a whole recorded
research and development costs of 2,065 million yen (including
development costs of 423 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

2. Mechatronics Systems Segment
The segment recorded net sales of 15,336 million yen (ayear-on-year fall of 9.3%), and income of 1,423 million yen (ayear-on-year increase of 7.8%).
In equipment for FPD back-end processing, orders andsales both decreased.
In equipment for semiconductor back-end processing,demand for semiconductors for use in mobile devices
increased, resulting in higher orders and sales. In addition,

Division, and by the technology divisions in our consolidated
subsidiary companies. In addition, we are pushing forward
efficient research and development and the commercializationof advanced technologies by strengthening our relations
and collaboration with Toshiba Corporation’s Research andDevelopment Center and Manufacturing Engineering Center,
and with Toshiba Corporation’s Storage & Electronic Devices
Solutions Company.
Research and development expenses and research results for

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201603

Financial Review

each segment are as follows:increase of 1,580 million yen compared to the end of theprevious fiscal year. This was mainly due to an increase in cash

1. Fine Mechatronics Segment
R&D expenses for the segment totaled 900 million yen.
In LCD panel production equipment we have worked on thedevelopment of wet process equipment, PI inkjet coaters
and inkjet coaters for overcoat suitable for high-definition
small- and medium-sized panels.
In semiconductor equipment we have worked on thedevelopment of wet cleaning equipment that can be usedin next generation devices, single wafer wet processor, wetcleaning equipment for masks and dry etching equipment
for masks.

and bank deposits.
Fixed assets were evaluated at 12,455 million yen, a reductionof 47 million yen compared to the end of the previous fiscal
year.
Total liabilities at the end of the fiscal year stood at 40,578
million yen, an increase of 1,916 million yen compared to theend of the previous fiscal year. This was mainly due to anincrease in net defined benefit liability and advances received.
Total net assets at the end of the fiscal year decreased 383
million compared to the end of the previous fiscal year, to
15,675 million yen. Although there was an increase in retained
earnings in reported net income, this was mainly due to an

2. Mechatronics Systems Segment
R&D expenses for the segment totaled 647 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.

increase in unrecognized debt accompanied by a reduction in
the adjusted cumulative amount of retirement benefits.

Cash FlowsThe balance of cash and cash equivalents at the end of thecurrent fiscal year was 7,012 million yen, an increase of 2,816
million yen compared to the end of the last fiscal year.
Net cash flow from operating activities increased by 3,645
million yen (last year saw a 750 million yen decrease). This ismainly due, to an increase in funds in the reported net income

3. Vending Machines and Systems Segment
R&D expenses for the segment totaled 93 million yen.
In the field of vending machines we have worked on
development of card-compatible machines, and in generalpurpose machines we have worked on development ofslim machines that can handle high value bills. In addition,as an expansion into a new area, we have worked on
development of electronic money charging machines.

before taxes and other adjustments, the result of a decrease inaccounts receivable and an increase in payments received.
Cash flow from investment activities fell by 394 million yen
during the fiscal year (against a fall of 278 million in the previous
fiscal year). This was mainly due to a decrease in cash resulting
from the acquisition of fixed assets.
Net cash flow due to financing activities decreased by 369
million yen (last year saw a 1,245 million yen increase). This ismainly due to a decrease in funds following repayment of debt
and payment of dividends.

Financial Condition
Total assets at the end of the fiscal year were 56,253 million
yen, an increase of 1,533 million yen compared to the end of
the previous fiscal year.
Current assets were evaluated at 43,798 million yen, an

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

FINANCIAL SECTION
ANNUAL REPORT 2016 Year ended March 31, 2016

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・ ・・・・・・・・・・・・・・・ 42
Independent Auditor's Report ・・・・・・・・・・・・・ 45

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201605

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Balance Sheet
March 31,2016
2015
(Millions of yen)March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

AssetsCurrent assets:
Cash and bank deposits (Note 14)
Notes and accounts receivable, trade (Note 14)
Electronically recorded monetary claims (Note 14)
Allowance for doubtful accounts
Inventories (Note 5)
Deferred tax assets (Note 8)
Accounts receivable, other
Other current assets
Total current assets¥ 7,027
29,492
673
(23)
3,952
574
1,325
778
43,798¥ 4,21430,568
322
(37)
4,748
649
1,222
532
42,218$ 62,362
261,734
5,973(206)
35,076
5,093
11,756
6,905
388,693

Property, plant and equipment:
Land (Note 15)
Buildings and structures (Note 15)
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Property, plant and equipment, net

11928,354
4,974
356
335
34,138(22,846)
11,292

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

1,059
251,628
44,143
3,163
2,970
302,963(202,747)
100,216

113
156
896
(2)
1,163

125
218
958
(2)
1,299

1,005
1,381
7,951
(16)
10,321¥ 56,253¥ 54,720$ 499,230

Investments and other assets:
Investments in securities (Notes 4 and 14)
Deferred tax assets (Note 8)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

3

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

Financial Section

March 31,2016
2015
(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade (Note 14)
Short-term bank loans (Notes 6 and 14)
Current portion of long-term debt (Notes 6 and 14)
Provision for contract losses
Current portion of lease obligations (Note 6)
Advances received
Accrued expenses
Accrued income taxes (Note 8)
Provision for directors’ bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6 and 14)
Net defined benefit liability (Note 11)
Lease obligations (Note 6)Long-term accounts payable-other
Provision for directors’ retirement benefits
Reserve for repair and maintenance
Asset retirement obligations
Long-term lease deposits (Note 14)
Total long-term liabilities
Total liabilities

March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

¥ 12,330
5,540
－
－
36
1,279
3,252
243
29
564
23,273¥ 12,619
5,720
700
21
39
542
2,814
206
23
463
23,147$ 109,430
49,166－－322
11,34928,863
2,156
254
5,002
206,542

6,500
7,292
56
5
8
333
34
3,077
17,30540,578

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

57,68664,711
497
42
69
2,957
307
27,307
153,576
360,118

6,762
9,108
2,982
(1,723)
17,129

6,762
9,108
2,387
(1,722)
16,53560,00680,82926,463(15,287)
152,01122
342(1,818)(1,454)
15,675¥ 56,253

32
401
(910)
(477)
16,058¥ 54,720

193
3,038(16,130)(12,899)
139,112$ 499,230

Contingent liabilities (Note 12)
Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March 31, 2016
and 2015
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 201607

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Operations
Years ended March 31,
2016
2015
(Millions of yen)

Net sales
Cost of sales (Notes 5,7 and 15)
Gross profit
Selling, general and administrative expenses(Notes 7,11 and 18)
Operating income
Other income (expenses):
Interest and dividend income
Insurance premiums refunded cancellation
Foreign exchange gain (loss),net
Interest expense
Gain (loss) on valuation of derivatives, net
Other, net
Ordinary income
Business structure improvement expenses(Note 19)
Environmental expenses
Income before income taxes
Income taxes (Note 8):
Current
Deferred
Net income
Net income attributable to owners of parent

Year ended
March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

¥ 45,550
35,292
10,258¥ 43,799
34,3879,412$ 404,236
313,205
91,031

8,966

8,390

79,568

1,292

1,022

11,463

13
－
(156)
(145)
218
(49)
1,173
－

15
17
364
(151)
(165)
36
1,138
(93)

114
－
(1,381)(1,285)
1,933(434)
10,410
－

－
1,173

(71)
974

－
10,410

291
139
430
743

204
73
277
697

2,581
1,234
3,815
6,595

¥ 743

¥ 697

$

6,595

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

508

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income

Years ended March 31,
2016
2015
(Millions of yen)

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

Year ended
March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

¥ 743

¥ 697

$ 6,595

(10)
(908)
(59)
(977)
¥ (234)

10
298
89
397
¥ 1,094(92)(8,052)(524)(8,668)$ (2,073)

(234)

1,094

(2,073)

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

6

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201609

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, 2014
Net income
Dividends of surplus (Note 10)
Net change during the year
Purchase of treasury shares
Other net

51,926,194
–
–
–
–
–

6,762
–
–
–
–
–

9,108
–
–
–
–
–

Balance as of April 1, 2015

51,926,194¥ 6,762

Net income
Dividends of surplus (Note 10)
Net change during the year
Purchase of treasury shares
Other net

–
–
–
–
–

–
–
–
–
–

Balance as of March 31, 2016

51,926,194¥ 6,762¥¥

Retainedearnings

Treasurystock(Millions of yen)
1,788
(1,721)
697
–
(98)
–
–
–
–
(1)
–
–

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

Total net
assets

22
–
–
10
–
–

313
–
–
88
–
–

(1,208)
–
–
298
–
–

15,064
697
(98)
396
(1)
–

9,108

¥ 2,387¥ (1,722)

¥ 32

¥ 401

¥ (910)¥ 16,058

–
–
–
–
–

743
(148)
–
–
–

–
–
–
(1)
–

–
–
(10)
–
–

–
–
(59)
–
–

–
–
(908)
–
–

743
(148)
(977)
(1)
–

9,108

¥ 2,982¥ (1,723)

¥ 22

¥ 342

¥ (1,818)¥ 15,675$

3,562$ (8,078)$ 142,510

–

–

6,595

(Thousands of U.S. dollars)
Balance as of April 1, 2015

$ 60,006$ 80,829$21,184$ (15,278)$ 285

Net income

–

–

6,595

–

–

Dividends of surplus (Note 10)––(1,316)

–

–

–

–

(1,316)

Net change during the year

–

–

–

–

(92)

(524)

(8,052)(8,668)Purchase of treasury shares
Other net

–
–

–
–

–
–

(9)
–

–
–

–
–

–
–

(9)
–

$ 60,006$80,829$ 26,463$ (15,287)$ 193$ 3,038$ (16,130)$ 139,112

Balance as of March 31, 2016

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

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 20167

Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year ended March 31,
2016
2015
(Millions of yen)

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

Year ended
March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

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

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

$ 10,410
12,525
(120)
2,218
(114)
1,285
(6)
(4)
29
6,693
6,101
(2,078)2,747(809)(3,543)35,334110(1,283)(1,810)32,351

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)
3
2
(304)
61
(156)
（394）

(0)
52
－
(218)
1
(113)
（278）

(0)
26
13
(2,694)541(1,387)(3,501)

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

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

(2,398)(57)
5,800(2,000)
(1)
(99)
1,245

(1,597)(351)
6,212(6,212)(9)(1,316)(3,273)

(66)
2,816
4,196
¥ 7,012

61
278
3,918
¥ 4,196(584)
24,99337,238$ 62,231

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

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

8

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Financial Section

Shibaura Mechatronics Corporation and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2016
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, 2016 and the non-consolidated statement of operations for the year then ended areincluded, as other information, in the accompanying consolidated financial statements.
The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company is incorporated and operates. The translation of yen
amounts into U.S. dollar amounts has been included solely for the convenience of readers
outside Japan. The translation has been made at the rate of ¥ 112.68 = U.S. $ 1.00, theapproximate rate of exchange in effect on March 31, 2016. 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.

12

9
SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

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 a fiscal year end which differs from that of the Company. As
a result, adjustments have been made for any significant transactions which took place
during the intervening period between the year end of the subsidiaries and that of theCompany.
(2) Foreign currency translation
The revenue and expense accounts of the overseas consolidated subsidiaries aretranslated into Japanese yen at the average rate of exchange in effect during each fiscal
year. The balance sheet accounts, except for the components of shareholders’ equity,
are also translated into Japanese yen at the rate of exchange in effect at each balance
sheet date. The components of shareholders’ equity are translated at their historicalexchange rates. Differences arising from translations are presented as “Foreign
currency translation adjustments,” a component of net assets in the accompanying
consolidated financial statements.
Foreign currency monetary assets and liabilities are translated into Japanese yen at therate of exchange in effect at each balance sheet date and the resulting translation gains
or losses are credited or charged to income.
(3) Cash and cash equivalents
The Company and its subsidiaries consider all highly liquid investments with amaturity of three months or less from their purchase dates to be cash equivalents.
(4) Securities
Marketable securities categorized as other securities are carried at fair value withunrealized holding 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

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Financial Section

2.

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

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

3 – 60 years
2 – 17 years

Intangible assets, which are included in “other assets” of the accompanying
consolidated balance sheet, are amortized by the straight-line method. Capitalized
software for internal use is amortized by the straight-line method over a period of 5
years, based on the estimated useful life of the software.
(8) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to coverpossible losses on the collection of receivables. The amount of the allowance isdetermined based on 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

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Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(10) Provision for contract losses
Provision for contract losses is provided at an amount considered necessary to cover
the estimated possible losses involved in orders for which a 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.
Unrecognized prior service cost and unrecognized actual gains and losses are included
in remeasurements of defined benefit plans under accumulated other comprehensive
income in net assets after the tax effect adjustment.
(12) Provision for directors’ retirement benefits
Certain directors, 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 require
periodic repairs and maintenance. An accrual for these repair and maintenanceexpenses is recorded based on the current portion of the total expenses estimated forsuch repairs.
(14) Revenues and costs of construction contracts
Revenues and costs of construction contracts are recognized by the percentage ofcompletion method. The percentage of completion is calculated at the cost incurred asa percentage of the estimated total cost.
The completed-contract method continues to be applied for contracts for which thepercentage of completion cannot be reliably estimated.
(15) Leased assets
The depreciation of leased assets under finance leases is calculated using thestraight-line method over the lease term with residual value of zero.
12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201615

Financial Section

2.

Summary of Significant Items for the Presentation of Consolidated Financial
Statements (continued)(16) Hedge accounting
Interest rate swaps which meet specific hedge criteria and qualify for special hedge
accounting treatment are not remeasured at fair value.
Hedging instruments and hedged items are summarized as follows:
Hedging instruments       Hedged items
Interest rate swap agreements ･･･ Interest on long-term debt
The Company uses derivative transactions to hedge its exposure to interest rate
fluctuation risk on long-term debt.
For interest rate swaps which meet the criteria for special hedge accounting, theassessment of hedge effectiveness is omitted.
(17) Research and development expenses
Research and development expenses are expensed as incurred and included in cost of
sales or selling, general and administrative expenses.
(18) Income taxes
Deferred tax assets and liabilities are determined based on the differences between
financial reporting and tax-based reporting of the assets and liabilities, and aremeasured using the statutory tax rates which will be in effect when the differences are
expected to be realized.
(19) Adoption of consolidated taxation system
The Company and some of its domestic consolidated subsidiaries have adopted theconsolidated taxation system.
3.

Accounting Changes

The Company adopted “Revised Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No.22) from April 1, 2015. As a result, under the revised
accounting standard, the presentation method of net income and others was amended andaccounting treatment for adjustments to provisional amounts during the measurement
period was also changed.

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201613

Financial Section

4.

Investments in Securities

At March 31, 2016 and 2015, 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 312016
2015
AmountAmountrecorded inrecorded in
Acquisition the balance
Acquisition the balance
sheet
sheet
costs
costs
Difference
Difference(Millions of yen)
(Millions of yen)

¥ 37
–
–
¥ 37

¥60
–
–
¥ 60

¥23
–
–
¥23

¥ 37
–
–
¥ 37

¥72
–
–
¥ 72

¥ 35
–
–
¥35

March 31,2016
Amountrecorded in
Acquisition the balance
sheet
costs
Difference(Thousands of U.S. dollars)

$324
–
–
$ 324

$538
–
–
$ 538

$214
–
–
$ 214

At March 31, 2016 and 2015, non-marketable securities carried at cost are summarized asfollows:
March 31,
2016
2016
(Millions of yen)
Investments in affiliates:
Affiliates
Other

¥ 52
1

March 31,
2016
(Thousands of
U.S. dollars)

¥ 52
1

$ 462
5

For the year ended March 31, 2016, other securities sold are summarized as follows:Year ended March 31
2016
Total gain on
Sales proceeds
sales(Millions of yen)
Equity securities
Debt securities
Other
Total

¥ 1
     －
－
¥ 1

¥ 1
     －－¥ 1

Total loss onsales－     －－－Year ended March 31
2016
Total gain on
Sales proceeds
sales

Total loss on
sales(Thousands of U.S. dollars)
$ 13
$ 6
－
     －     －     －
－
－
－
$ 13
$ 6
－

For the year ended March 31, 2015, other securities sold are summarized as follows:
Not applicable

14

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201617

Financial Section

5.

Inventories

Inventories at March 31, 2016 and 2015 are summarized as follows:
March 31,
2016
(Thousands of
U.S. dollars)

March 31,2016
2015
(Millions of yen)Finished products
Raw materials
Work in process
Total¥ 1,363
184
2,405¥ 3,952¥ 1,440
159
3,149¥ 4,748$ 12,100
1,636
21,340$ 35,076

Inventories as of March 31, 2016 and 2015 were written down due to lower profitability
and unrealized loss on inventories was included in cost of sales in the amounts of ¥811
million ($7,196 thousand) and ¥679 million, respectively.
6. Short-Term Bank Loans and Long-Term Debt
The weighted average interest rate per annum on the short-term bank loans outstanding at
March 31, 2016 and 2015 was 1.0%.
Long-term debt and lease obligations at March 31, 2016 and 2015 are summarized asfollows:
March 31,
2016
(Thousands of
U.S. dollars)

March 31,2016
2015
(Millions of yen)Unsecured:
0.8% to 1.3% loans from banks due 2017
to 2020
Lease obligations

6,500
92

6,500
123

57,686819

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

6,592
36
6,556

6,623
739
5,884

58,505322$ 58,183¥¥

Aggregate annual maturities of long-term debt and lease obligations at March 31, 2016 aresummarized as follows:
March 31, 2016
(Millions of(Thousands ofyen)
U.S. dollars)
2017
2018
2019
2020 and thereafter
Total

18

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

¥

36
837
513
5,206
¥ 6,592

$

322
7,425
4,554
46,204$ 58,505
15

Financial Section

6. Short-Term Bank Loans and Long-Term Debt (continued)
The Company entered into one-year contracts for commitment lines of credit with fivebanks in the aggregated amount of approximately ¥5,460 million ($48,456 thousand) for
efficient financial arrangements for operating funds on July 31, 2015. The outstandingbalance of bank borrowings under these commitment lines at March 31, 2016 was zero.
7.

Research and Development Expenses

Research and development expenses charged to income for the years ended March 31,
2016 and 2015 are as follows:Year ended March 31,
2016
2015
(Millions of yen)
¥ 2,0658.

Year ended
March 31,
2016
(Thousands of
U.S. dollars)¥ 1,856$ 18,325

Income Taxes and Deferred Tax Assets

The major components of deferred tax assets and liabilities as of March 31, 2016 and 2015
are summarized as follows:
March 31,2016
2015
(Millions of yen)
Deferred tax assets:
Net defined benefit liability
Accrued employees’ bonuses
Provision for contract losses
Reserve for repair and maintenanceEnterprise tax payable
Tax loss carried forward
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

March 31,
2016
(Thousands of
U.S. dollars)¥ 1,688
338
–
73
30
1,264
1,270
4,663
(3,795)868¥ 1,734
327
7
98
32
1,949
1,133
5,280
(4,337)943$ 14,974
2,998
–
649
266
11,216
11,273
41,376(33,679)
7,697

(3)

(4)

(27)

(135)
(138)
¥ 730

(72)
(76)
¥ 867

(1,196)(1,223)$ 6,474

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

16

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201619

Financial Section

8.

Income Taxes and Deferred Tax Assets (continued)

Income taxes in Japan applicable to the Company and its domestic consolidated
subsidiaries consist of corporation tax, inhabitants’ taxes and enterprise tax, which, in theaggregate, resulted in statutory rates of approximately 33.0% and 35.6% for the years ended
March 31, 2016 and 2015, respectively. Income taxes of the foreign consolidated
subsidiaries are based generally on the tax rates applicable in their countries ofincorporation.
The reconciliations between the effective tax rates reflected in the consolidated statement ofincome and the effective statutory tax rates for the years ended March 31, 2016 and 2015
are summarized as follows:
March 31,2016
2015
Effective statutory tax rates
33.0%
35.6%
Effect of:
Non-deductible expenses
2.2
3.0
Change in valuation allowance(8.0)(27.0)
Inhabitants tax per capital
1.1
1.3
Different tax rates applied to foreign consolidated
2.0
1.3
subsidiaries
Foreign tax
3.5
4.2
Adjustments in deferred tax assets and liabilities
3.4
9.1
due to the change in tax rate
(0.5)
0.9
Other
Effective tax rates
36.7%
28.4%
Adjustment to deferred tax assets and deferred tax liabilities due to changes instatutory tax rates.
The “Act to partially revise the Income Tax Act and Others” (Act No.15 of 2016) and the“Act to partially revise the Local Tax Act and Others” (Act No.13 of 2016) were enacted by
the Japanese Diet on March 29, 2016, the corporate income tax rate will be lowered fromfiscal years beginning on or after April 1, 2016.
As a result, for temporary differences expected to be reversed in the fiscal year beginningon or after April 1, 2016, the effective statutory tax rate used to measure deferred tax assets
and liabilities will be changed from 32.2% to 30.8%. In addition for temporary differences
expected to be reversed in the fiscal year beginning on or after April 1, 2017, the effective
statutory tax rate used to measure deferred tax assets and liabilities will be changed to31.1%, and for temporary differences expected to be reversed in fiscal years beginning on
or after April 1, 2018, the effective statutory tax rate used to measure deferred tax assets
and liabilities will be changed to 30.8%.
The effect of these changes was to reduce deferred tax assets (net of deferred tax liabilities)by ¥33 million ($290 thousand) and increase “Income taxes-deferred” by the same amountas of and for the year ended March 31, 2016.
Additionally, beginning from fiscal years starting on or after April 1, 2016, the use of tax
loss carryforwards will be limited to the equivalent to 60% of taxable income before
deducting tax loss carryforwards, beginning from fiscal years starting on or after April 1,
2017, the use of tax loss carryforwards will be limited to the equivalent to 55% of taxable
income before deducting tax loss carryforwards, and beginning from fiscal years starting on

20

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201617

Financial Section

8.

Income Taxes and Deferred Tax Assets (continued)

or after April 1, 2018, 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 ¥7 million ($66 thousand)and increase “Income taxes-deferred” by the same amount as of and for the year ended
March 31, 2016, respectively.
9.

Other Comprehensive Income

The following table presents reclassification adjustments and tax effects allocated to eachcomponent of other comprehensive income (loss) for the years ended March 31, 2016 and2015:
March 31,2016
2015
(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 (loss)

March 31,
2016
(Thousands of
U.S. dollars)¥ (10)¥13$ (96)

(1)
(11)
1
(10)

–
13
(3)
10

(6)
(102)
10
(92)

(59)

89

(524)

–
(59)
–
(59)

–
89
–
89

–
(524)
–
(524)

(1,097)41(9,732)

189
(908)
–
(908)

257
298
–
298

1,680
(8,052)–(8,052)¥ (977)¥ 397$ (8,668)

18

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Annual Report 201621

Financial Section

10.

Information on Dividends

The Company paid cash dividends as follows:
Date of board
resolution
May 15,
2015

Class ofstock
Commonstock

Total dividend
amountDividend
per share¥ 148 million¥3.00

Recorddate
March 31,2015

Effective
date
June 2,
2015

Approval of dividends payments for which the record date is in the fiscal year and effective
date is in the following fiscal year is planned as follows:
Date of board
resolution
May 19,2016
11.

Class ofstock
Commonstock

Total dividend
amount¥ 198 million

Source ofdividends
Retainedearnings

Dividend
per share¥4.00

Recorddate
March 31,2016

Effective
date
June 6,2016

Retirement Benefits

The Company and its domestic consolidated subsidiaries have defined benefit pension plans
and lump-sum retirement payment plans which cover substantially all employees who retire
from the Companies. Eligible employees may also receive additional payments under theplans.
Certain consolidated subsidiaries use a simplified method for calculating retirement benefit
expenses and liabilities.
The changes in the retirement benefit obligation for the years ended March 31, 2016 and2015 are as follows:
March 31,2016
2015
(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

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SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

¥ 8,350
337
120
1,051
(390)
¥ 9,468¥ 8,292
349
119
(49)
(361)
¥ 8,350

March 31,
2016
(Thousandsof U.S.
dollars)$ 74,107
2,991
1,067
9,322
(3,464)$ 84,023

19

Financial Section

11.

Retirement Benefits (continued)

The changes in plan assets for the years ended March 31, 2016 and 2015 are as follows:
March 31,2016
2015
(Millions of yen)
Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefit paid
Balance at the end of the year

¥ 2,827
99
(46)
323
(279)
¥ 2,924¥ 2,673
93
(8)
324
(255)
¥ 2,827

March 31,
2016
(Thousandsof U.S.
dollars)$ 25,089
878
(410)
2,863
(2,474)$ 25,946

The changes in net defined benefit liability that calculated by the simplified method for theyears ended March 31, 2016 and 2015 are as follows:
March 31,2016
2015
(Millions of yen)
Balance at the beginning of the year
Retirement benefit expense
Retirement benefit paid
Other
Balance at the end of the year

¥ 611
181
(42)
(2)
¥ 748

¥ 553
114
(54)
(2)
¥ 611

March 31,
2016
(Thousandsof U.S.
dollars)$ 5,426
1,606
(375)
(23)
$ 6,634

20

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Annual Report 201623

Financial Section

11.

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, 2016 and 2015 for the Company’s and theconsolidated subsidiaries’ defined benefit plans:¥ 6,179(2,924)
3,255
4,037

¥ 5,516(2,827)
2,689
3,446

March 31,
2016
(Thousandsof U.S.
dollars)$ 54,833(25,946)
28,88735,824

7,292

6,135

64,711

7,292

6,135

64,711¥ 7,292¥ 6,135$ 64,711

March 31,2016
2015
(Millions of yen)
Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net liability for retirement benefits in thebalance sheet
Liability for retirement benefits
Net liability for retirement benefits in thebalance sheet
Notes:Net defined benefit liability calculated by the simplified method is included.

The components of retirement benefit expense for the years ended March 31, 2016 and2015 are as follows:

¥ 337
120
(99)
206
(17)

¥ 349
119
(94)
274
(17)

March 31,
2016
(Thousandsof U.S.
dollars)$ 2,991
1,067
(878)
1,830
(150)

181

114

1,606

¥ 728

¥ 745

$ 6,466

March 31,2016
2015
(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

24

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Annual Report 201621

Financial Section

11.

Retirement Benefits (continued)

The components of remeasurements of defined benefit plans included in othercomprehensive income (before tax effect) for the years ended March 31, 2016 and 2015 are
as follows:
March 31,2016
2015
(Millions of yen)
Prior service cost
Actuarial gain and loss
Total

¥ 17
890
¥907

¥ 17
(315)
¥(298)March 31,
2016
(Thousandsof U.S.
dollars)$150
7,902$ 8,052

The comparents of remeasurements of defined benefit plans included in accumulated othercomprehensive income (before tax effect) as of March 31, 2016 and 2015 are as follows:
March 31,2016
2015
(Millions of yen)
Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

¥ (99)
1,917¥ 1,818¥ (116)
1,026
¥ 910

March 31,
2016
(Thousandsof U.S.
dollars)$ (876)17,006$ 16,130

The fair value of plan assets, by major category, as a percentage of total plan assets as ofMarch 31, 2016 and 2015 are as follows:
March 31,

Bonds
General accounts
Other
Total

2016
56.6%
42.4%
1.0%
100.0%

2015
56.2%
42.5%
1.3%
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

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Financial Section

11.

Retirement Benefits (continued)

The assumptions used in accounting for the above plans are as follows:
March 31,

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

2016
0.31－0.36%
3.5%
4.2%
70.0%

2015
1.44%
3.5%
5.1%
70.0%

Contingent Liabilities

The Company had the following contingent liability as of March 31, 2016 and 2015 :March 31,2016
2015
(Millions of yen)
Guarantee for housing loans of employees
13.

¥ 10

¥ 12

March 31,
2016
(Thousands of
U.S. dollars)$ 84

Derivatives and Hedging Activities

The Company has entered into interest-rate swap contracts to manage its exposure tointerest-rate risk on long-term debt. As a matter of policy, the Company does not enter into
derivative transactions for trading purposes. The Company does not anticipate
nonperformance by any of the counterparties to the above transactions, all of whom aredomestic financial institutions with high credit ratings.
In accordance with the Company’s policy, derivative transactions are entered into under thedecision-making rules approved by the Management Strategy Committee of the Company.
The Treasury Division with the responsibility to enter into such contracts monitors andcontrols the inherent risk and performance on a daily basis and reports these to managementof the Company, if and when necessary.
In accordance with the special hedge accounting under the Accounting Standard for
Financial Instruments, the Company does not record certain interest-rate swap
arrangements at fair value but charges or credits the net cash flows from the swap
arrangements to the interest arising from the respective hedged borrowings.
At March 31, 2016 and 2015, the fair value information for derivatives, for which hedge
accounting was applied, was not presented since all derivatives were accounted for using
the special hedge accounting and accordingly their fair value was recorded as part of thefair value of the hedged borrowings.

26

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Financial Section

13.

Derivatives and Hedging Activities (continued)

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

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

Total
To buy foreign
currencies
U.S. Dollars
Total

¥－
¥－

¥ 268
¥ 268

¥ 268
¥ 268

¥ 1,886¥ 1,886¥－¥－¥ (162)¥ (162)¥ (162)¥ (162)Total
To buy foreign
currencies
U.S. Dollars
Total

As of March 31, 2015
Contract
amountover 1 year Fair value(Millions of yen)

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

¥ 39
¥ 39

¥－
¥－

¥0
¥0

¥0
¥0

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

Unrealizedgain(loss)¥ 3,772¥3,772Contract
amountForeign Exchange
Forward Contracts
To sell foreign
currencies
U.S. Dollars

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

As of March 31, 2016
Contract
amountUnrealized
over 1 year Fair valuegain(loss)(Thousands of U.S. dollars)$ 33,477$ 33,477$－$－$ 2,381$ 2,381$ 2,381$ 2,381$ 16,734$ 16,734$－$－$ (1,441)$ (1,441)$ (1,441)$ (1,441)

24

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Annual Report 201627

Financial Section

13.

Derivatives and Hedging Activities (continued)

Notes:
Fair value is principally based on obtaining quotes from counterpaty financial institutions.
Ⅱ. Derivative transactions which qualify for hedge accounting
Interest-related transaction
As of March 31, 2016
Type of derivativetransaction

Principal item
hedgedContract
amountContract
amountover 1 year

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

Long-term debt

¥ 6,000¥ 6,000¥－

As of March 31, 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¥－

As of March 31, 2016
Type of derivativetransaction

Principal item
hedgedContract
amountContract
amountover 1 year

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

Long-term debt

$ 53,248$ 53,248$－

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

28

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Annual Report 201625

Financial Section

14.

Financial Instruments① Matters relating to financial instruments(1) Policy of financial instruments
The Group makes capital investments primarily through bank loans to secure thenecessary principal and maintain liquidity. Derivatives are used, not for speculative
nor trading purposes, but to manage risk of foreign currency exchange rates andinterest rate fluctuations arising from business operations.
(2) Contents and risk management for financial instruments
Receivables such as trade notes and accounts receivable are exposed to a customer’s
credit risk. Receivables from each customer are constantly checked to reduce risk of
the costumer’s default.
Investment securities are equity securities of customers of the Group and exposed tothe market price fluctuation risk.
While foreign currency-denominated operating receivables are exposed to exchange
rate fluctuation risk, the Group hedges this risk by, as a general rule, primarily
utilizing forward exchange contracts for foreign currency-denominated operating
payables. Trade payables, which are operating payables, are settled within a year.
Short-term bank loans are used to primarily to procure working capital, while
long-term debt is used to procure funds required for long-term stability. Althoughsome items with variable interest rates are exposed to interest rate fluctuation risk,
derivative transactions (interest rate swaps) are utilized in part to fix interest
payments. Derivatives transactions shown in the below table do not represent theamounts 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 internal
guide lines, the Group enters into derivative transactions with counterparties withhigh 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 usedinstead. Because various assumptions and factors are reflected in estimating fairvalue, different assumptions could result in different fair value. The contract ornotional amounts of derivatives which are shown in the below table do not represent
the amounts exchanged by the parties and do not measure the Companies’ exposure
to credit or market risk.

26

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Financial Section

14.

Financial Instruments (continued)② Matters concerning the fair value of financial instruments, etc.
Amounts as of March 31, 2016 and 2015 on the accompanying consolidated balance sheet
fair value and the difference between them are as follows.
March 31, 2016
Carrying value

Fair value

Difference(Millions of yen)
¥ 7,027¥ 7,027¥  －29,49229,492－(3) Electronically recorded monetary claims

673

673

－

(4) Investment securities-Other securities

61

61

－

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

(6,500)(6,495)

5(8) Other long-term liabilities(3,077)(2,818)(9) Derivatives transaction

106

106

259
－

(1) Cash and bank deposits(2) Notes and accounts receivable, trade

March 31, 2015
Carrying value

Fair value

Difference(Millions of yen)
¥ 4,214¥ 4,214¥  －30,56830,568－(3) Electronically recorded monetary claims

322

322

－

(4) Investment securities-Other securities

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)

－

(1) Cash and bank deposits(2) Notes and accounts receivable, trade(7) Current portion of long-term debt

March 31, 2016
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$

62,36262,362－

261,734$

261,734

－

5,973

5,973

－

543

543

－

(5) Notes and accounts payable, trade(109,430)(109,430)－(6) Short-term bank loans(49,166)(49,166)－(7) Long-term debt

(57,686)(57,638)

48(8) Other long-term liabilities(27,307)(25,006)

2,301(9) Derivatives transaction

(941)

(941)

－

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201627

Financial Section

14.

Financial Instruments (continued)(*) Liabilities are presented in parentheses in the above table.
Notes:a)Method of measurement of fair value of financial instruments and matters concerning
securities and derivative transactions(1) Cash and bank deposits, (2) Notes and accounts receivable, trade, and(3) Electronically recorded monetary claims
As these items are settled in a short period of time and the fair value is almost
equal to the carrying value, their carrying 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
As these items are settled in a short period of time and the fair value is almost
equal to the carrying value, their carrying value is presented.
(7) Long-term debt
As for the fair value of long-term debt, future cash flows from payments ofprincipal and interest are discounted at the interest rate applicable to a similar
new loan to the present value. As for long-term debt with floating interest rates
subject to the special hedge accounting hedged by designated interest rate swaps,
future cash flows from payments for principal and interest, combined with cash
flows from the designated interest rate swaps, are discounted at the interest rateapplicable to a similar new loan to the present value.
(8) Other long-term liabilities
Other long-term liabilities consist of long-term guarantee deposits. The fair valueof other long-term liabilities is discounted at the risk-free interest rates of future
cash flows to the present value.
(9) Derivatives transactions
See Note 13 for details on derivative transactions.

b) As non-marketable equity securities of ¥52 million ($462 thousand) do not have aquoted market price and the future cash flow cannot be estimated, the Group considers
it extremely difficult to determine their fair value. Hence, the items are not included in“(4) Investment securities - Other securities.”

28

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Annual Report 201631

Financial Section

14.

Financial Instruments (continued)c)Financial assets due subsequent to the balance sheet dateCash and bank deposits of ¥7,009 million ($62,201 thousand), Notes and accounts
receivable, trade of ¥29,492 million ($261,734 thousand), Electronically recordedmonetary claims of ¥673 million ($5,973 thousand) are due within one year
subsequent to March 31, 2016 and Cash and bank deposits of ¥4,197 million, Notes
and accounts receivable, trade of ¥30,568 million, Electronically recorded monetaryclaims of ¥322 million are due within one year subsequent to March 31, 2015.

15.

Investment in Rental Property

The Company owns an office building (including land) for rent by third parties in
Yokohama city, part of which is used by the Company.
Information on Consolidated Balance Sheet
Carrying amount
April 1,March 31,2015
Decrease
2016(Millions of yen)
¥ 6,054¥ 242¥ 5,812Fair value
March 31,2016

Fair value
March 31,2015

Rental property

Carrying amountMarch 31,
Decrease
2015(Millions of yen)
¥ 6,296¥ 242¥ 6,054

Rental property

Carrying amount
Fair value
March 31,
March 31,
Decrease
2016
2016(Thousands of U.S. dollars)$ 53,723$ 2,148$ 51,575$ 62,379

Rental property

April 1,
2014

¥ 7,029¥ 7,095

April 1,
2015

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, 2016 and 2015 is internally determined by the Company
based on the real-estate appraisal standard.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201629

Financial Section

15.

Investment in Rental Property (continued)

Information on Consolidated Statement of Operations

Rental property

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

Rental property

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

Rental property

Year ended March 31, 2016
Rental income Rental costs Difference(Thousands of U.S. dollars)$ 15,374$ 11,670$ 3,704

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

30

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201633

Financial Section

16.

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

34

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201631

Financial Section

16.

Segment Information (continued)(3) Information on sales, income or loss, assets and other items by reporting segment
Information for the fiscal years ended March 31, 2016 and 2015 is summarized asfollows:
Year ended March 31, 2016
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

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

Total sales
Segment income (loss)

26,559(221)

15,473
1,423

1,645
(55)

2,033
504

45,7101,651

Segment assets

32,11811,013

1,301

6,448

50,880

603
11
6

409
0
10

38
0
9

361
–
–

1,411
11
25

1,165

245

33

93

1,536

Real estateleasing

Total

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

Year ended March 31, 2015
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems(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

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

32

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201635

Financial Section

16.

Segment Information (continued)
Year ended March 31, 2016
Fine
mechatronics

Mechatronics
systems

Vending
machines &systems

Real estateleasing

Total(Thousands of U.S. dollars)
Sales
Sales to external customers
Intersegment sales or transfers$ 235,500
208$ 136,101
1,210$ 14,599
4$ 18,036–$ 404,236
1,422

Total sales
Segment income (loss)

235,708(1,958)137,311
12,633

14,603(492)

18,036
4,471

405,658
14,654

Segment assets

285,038

97,742

11,54657,223

451,549

5,348
–
94
55

3,635
–
0
86

341
–
0
80

3,201
–
–
–

12,525–94
221

10,338

2,179

293

823

13,633

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,
2016
2015
(Millions of(Millions of
yen)
yen)

Year ended
March 31,
2016
(Thousands of
U.S. dollars)

Reporting segments¥ 1,651¥ 1,320$ 14,654

Unallocated amounts

(423)

(330)

(3,754)

Other

(55)

148

(490)

¥ 1,173¥ 1,138$ 10,410

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

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Annual Report 201633

Financial Section

16.

Segment Information (continued)b) Segment assets
As of March 31,
2016
2015
(Millions of(Millions of
yen)
yen)

AS of
March 31,
2016
(Thousands of
U.S. dollars)

Reporting segments¥ 50,880¥ 51,539$ 451,549

Unallocated amounts

5,373

3,181

47,681¥ 56,253¥ 54,720$ 499,230

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, 2016

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

Reportingsegments

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

1,536

–

Consolidated¥ 1,411
–
11
145
1,536

Reportingsegments

Adjustment
amountConsolidated(Thousands of U.S. dollars)$ 12,525$  –$ 12,525
–
–
–
95
5
100
221
1,064
1,285
13,633–

13,633

Year ended March 31, 2015

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

Reportingsegments

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

¥ 1,271
–
14
151

797

–

797

34

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Annual Report 201637

Financial Section

16.

Segment Information (continued)② Related information(1) Information by each product and service
Information by each product and service is omitted because equivalent information has
been disclosed in segment information.
(2) Information by geographical areaa) SalesYear ended March 31, 2016
Japan

¥ 20,201

Northeastern Asia
Other
(Millions of yen)
¥ 24,092¥ 1,257

Total¥ 45,550

Year ended March 31, 2015
Japan

Northeastern Asia
Other
(Millions of yen)

¥ 18,533¥ 24,492

Japan

Northeastern Asia

¥ 774

Total

¥ 43,799

Year ended March 31, 2016
Other

Total

(Thousands of U.S. dollars)$ 179,274$ 213,808$ 11,154$ 404,236

Notes:
Sales are based on the location of customers, classified by country or region.
b) Tangible fixed assets
As of March 31, 2016
Japan

¥ 11,281

Northeastern Asia
(Millions of yen)
¥

11

Total

¥ 11,292

As of March 31, 2015
Japan

Northeastern Asia

Total

(Millions of yen)
¥ 11,197¥

6¥ 11,203

As of March 31, 2016
Japan

Northeastern Asia

Total

(Thousands of U.S. dollars)$ 100,117

38

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

$ 98

$100,215

35

Financial Section

16.

Segment Information (continued)c) Information by main customer
Year ended March 31, 2016
Fine mechatronics andMechatronics systems

Sales to Toshiba Corporation(Millions of yen)
¥ 4,628

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

Sales to NANJING CEC
PANDA FPD TECHNOLOGYCO., LTD.
Sales to Toshiba Corporation(Millions of yen)
¥ 5,589¥ 4,692

Year ended March 31, 2016
Fine mechatronics andMechatronics systems

Sales to Toshiba Corporation(Thousands of U.S. dollars)$ 41,075③ Impairment losses on fixed assets by reporting segment
Year ended March 31, 2016: Not applicableYear ended March 31, 2015: Not applicable④ Depreciation and remaining balance of goodwill by reporting segment
Year ended and as of March 31, 2016: Not applicableYear ended and as of March 31, 2015: Not applicable⑤ Gain on negative goodwill by reporting segment
Year ended March 31, 2016: Not applicableYear ended March 31, 2015: Not applicable17.

Non-cash Transactions

Leased assets and lease obligations recorded relating to lease transactions were ¥9 million($79 thousand) and ¥9 million ($79 thousand), respectively, as of March 31, 2016 and were
not applicable as of March 31, 2015.

36

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201639

Financial Section

18.

Selling, General and Administrative Expenses

For the years ended March 31, 2016 and 2015, major selling, general and administrative
expenses are summarized as follows:
March 31,2016
2015
(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
19.

¥

83
421
4
4,279
29

¥

151
512
5
4,047
23

March 31,
2016
(Thousands of
U.S. dollars)
$

733
3,738
32
37,977
254

8
357

(57)
356

73
3,168

3
898
105
2,062

4
691
109
1,855

26
7,970
932
18,298Business Structure Improvement Expenses

No business structure improvement expenses were recognized for the year ended March 31,
2016, and for the year ended March 31, 2015 business structure improvement expenses 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.

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201637

Financial Section

20.

Related Party Transactions

Toshiba Corporation held 39.1% of the Company’s voting rights as of March 31, 2016 and2015.
The Company sold semiconductor manufacturing equipment to Toshiba Corporation andreceived rent revenue from Toshiba Corporation. The aggregate amounts of thesetransactions were ¥3,881 million ($34,440 thousand) and ¥4,692 million for the years ended
March 31, 2016 and 2015, respectively.
The Company purchased raw materials from Toshiba Corporation totaling ¥279 million($2,480 thousand) and ¥119 million for the years ended March 31, 2016 and 2015,
respectively.
Amounts due from and to Toshiba Corporation at March 31, 2016 and 2015 were as
follows:
March 31,

2016
2015
(Millions of yen)Due from Toshiba Corporation
Due to Toshiba Corporation
21.

¥

301
3,379

¥ 1,317
3,233

March 31,
2016
(Thousands of
U.S. dollars)$ 2,669
29,989Per Share Information

Basic net income per share is computed based on the net income available for distribution
to shareholders of common stock and the weighted-average number of shares of common
stock outstanding during each year. Diluted net income per share is computed based on
the net income available for distribution to the shareholders and the weighted-average
number of shares of common stock outstanding during each year, assuming full dilution ofcommon stock equivalents. Net assets per share are computed based on theweighted-average number of shares of common stock outstanding at each balance sheet
date.
As of March 31,
2016
2015
(Yen)
Net income:– Basic
Net assets

¥

15.04
317.29¥14.11
325.01As ofMarch 31,
2016
(U.S. dollars)$ 0.13
2.82

Notes:The information regarding diluted net income per share for the years ended March 31, 2016
and 2015 is omitted because there was no stock with dilutive effect.
38

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Annual Report 201641

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

42

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

March 31,
March 31,2016
2015
(Millions of yen)March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

¥ 4,371¥ 2,135$ 38,792

5
430

0
322

43
3,820

26,085
(351)
2,795
379
1,300

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

231,498(3,115)24,805
3,360
11,537924
1,895
37,833843
946
36,4428,201
16,814
335,755

69
27,931
4,509
58
333
32,900(21,930)
10,97069
27,8563,238
58
525
31,746(20,890)
10,856610
247,883
40,013514
2,958
291,978(194,621)
97,357

61
372

73
372

543
3,305

195
445
304
(0)
1,377

186
522
294
(0)
1,447

1,733
3,947
2,697
(3)
12,222¥ 50,180¥ 48,745$ 445,334
39

Financial Section

March 31,

2016
2015
(Millions of yen)March 31,
2016
(Thousands of
U.S. dollars)(Note 1)

Liabilities and net assets
Current liabilities:
Notes and accounts payable, trade:
Notes
Accounts
Short-term bank loans
Current portion of long-term debt
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¥ 2,467
7,654
4,700
－
984
6
29
－
42
2,940
156
135
19,113¥ 3,248
7,406
4,700
700
367
6
23
21
9
2,517
145
95
19,237$ 21,898
67,92541,711
－
8,736
51
254
－
374
26,094
1,389
1,197
169,629

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

6,500
7
5
4,726
333
3,077
22
14,67033,783

5,800
12
5
4,613
374
3,072
22
13,89833,13557,68659
42
41,946
2,957
27,307
193
130,190299,819

6,762
9,108
2,229
(1,723)
16,376

6,762
9,108
1,431
(1,722)
15,57960,00680,82919,781(15,287)
145,329

21

31

186

16,397¥ 50,180

15,610¥ 48,745

145,515$ 445,334

Net assets:
Shareholders’ equity:
Capital stock:
Authorized: 100,000,000 shares
Issued: 51,926,194 shares at March
31, 2016 and 2015
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-salesecurities
Total net assets
Total liabilities and net assets

40

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201643

Financial Section

Other Information
Shibaura Mechatronics Corporation
Non-Consolidated Statement of Operations
Year ended March 31,
2016
2015
(Millions of yen)

Net sales
Cost of sales
Gross profit¥ 35,366
28,4696,897¥ 34,122
27,7126,410$ 313,862
252,658
61,204

Selling, general and administrative expenses
Operating income

6,810
87

6,309
101

60,434770

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 gain (loss), net
Rent expenses
Gain (loss) on valuation of derivatives
Other, net
Ordinary income
Business structure improvement expenses
Environmental expenses
Income before income taxes

669
119
(136)
361
114
27
(174)
(108)
228
(95)
1,005
－
－
1,092

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

5,937
1,055
(1,201)
3,201
1,015
238
(1,546)
(961)
2,022
(838)
8,922
－
－
9,692

140
6
146
¥ 946

31
106
137
¥ 636

1,241
57
1,298
8,394

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

44

Year ended
March 31,
2016
(Thousands of
U.S. dollars)(Note 1)SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

¥ 19.15
4.00¥ 12.87
3.00$(U.S. dollars)$ 0.170.04

41

Financial Section

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201645

Board of Directors
As of June 23, 2016

Directors

Shigeki Fujita

Hitoshi Dojima

Makoto Fujino

Yoshitsugu Ogawa

President and Chief Executive Officer

Executive Vice President

Senior Vice President

Senior Vice President

Chief Financial Officer

Executive General Manager ofFine Mechatronics Division

Executive General Manager of
Mechatronics System Division

Takashi Nozawa

Keigo Imamura

Hisashi Shindo

Takashi Arai

Vice President

Vice President

Vice President

Vice President

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

Deputy Executive General Manager ofFine Mechatronics Division

Sennosuke Yoshida

Tomoko Inaba

Outside Vice President

Outside Vice President

Auditors

46

Yasuhiko Yamato

Kazumasa Uchida

Hiroshi Igashira

AuditorOutside Auditor

Outside Auditor

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

Investor Information
As of March 31, 2016

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

6,032

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/: 1,177

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

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

High (yen)Low (yen)

2016
320
170

2015
384
220

2014
333
181

2013
252
112

2012
344
191

Principal Shareholders

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

Number of shares hold

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

18,977

38.4
3.7
2.5

1,823
1,213

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2016

47

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EDC160224