ANNUAL REPORT 2011
Year ended March 31, 2011

ANNUAL REPORT 2011
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 completed an ambitious restructuring from which we emerged as a producer of manufacturing
equipment for LCDs, semiconductors and optical discs. At that time the company took on its present name, Shibaura
Mechatronics Corporation. Guided by our management philosophy of “contribute to the achievement of an affluent life by offeringsuperior technology and services,” and inspired by our determination to be “the infrastructure provider for the digital age,”
we support an evolving social infrastructure by supplying manufacturing equipment for the production of essential electronic
components.

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 Mechatronics Co., Ltd.
Semiconductor manufacturing

Toshiba Automation Co., Ltd. equipment and others
Manufacturing automation equipment

Shibaura Engineering Works Co., Ltd.
Electric motors

Tokuda Seisakusho Co., Ltd.
Vacuum equipment

Shibaura Engineering Works Co., Ltd.
Motors, flat panel displays manufacturing
equipment and others

Contents
Financial Highlights・ ・・・・・・・・・・・・・・・・・・01
Message from the president・ ・・・・・・・・・・・・・・・02
Financial Review・・・・・・・・・・・・・・・・・・・・・04
Corporate Governance・ ・・・・・・・・・・・・・・・・・08
Forward-Looking Statements

CSR Activities・・・・・・・・・・・・・・・・・・・・・・11

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
based on data currently available. Furthermore, they are subject to a number

Board of Directors・ ・・・・・・・・・・・・・・・・・・・12of 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

Investor Information・ ・・・・・・・・・・・・・・・・・・13

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

Financial Highlights
Year ended
March 31,2010

Year ended
March 31,2011

Year ended
March 31,2011

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

Consolidated￥

Net sales
Operating income (loss)
Net income (loss)
Total assets
Net assets￥ 41,096(1,870)(1,752)52,65817,01946,246		
743		
486
54,250		
17,492		

$
		
		
		
		

(yen)

￥

Net income (loss) per share(U.S. dollars)￥ (35.47)

9.83		

556,174
8,938
5,841
652,442
210,367$(Millions of yen)

0.12

(Thousands of U.S. dollars)

Non-consolidated
Net sales￥
Operating income (loss)		
Net income (loss)
Total assets
Net assets

36,696		

￥ 33,161(117)		
(1,901)621(1,593)48,486		
45,774
15,686		
15,085

￥

12.60

$

441,322

		
		
		
		

(1,403)
7,491
583,115
188,646(yen)

Net income (loss) per share(U.S. dollars)￥

Effective for the year ended March 31, 2007, net assets are presented based on the new accounting standard, "AccountingStandard for Presentation of Net Assets in the Balance Sheet" (Accounting Standards Board Statement No.5, 2005/12/9) and the"Implementation Guidance for the Accounting Standard for Presentation of Net Assets in the Balance Sheet" (Financial Standards
Implementation Guidance No.8, 2005/12/9).

Net Sales(¥Billions)

Net Income(¥Billions)75

Net Assets
25

66
47 49
37

41
33

46
37

0.6
0.5

0.5
0.4

58

-1.0
-1.4

21

(32.26)$Note 1 : The U.S. dollar amounts in this report represent
translations of Japanese yen, for convenience only, at the rate of￥83.15 = U.S.$1.00, as of March 31, 2011.

(¥Billions)

Net Income Per Share

21

19

17 17
15

Consolidated

'09

'10

'11

'07

-20.6
-27.9

-1.6
-1.8

'08

'09

12.6
9.8

10.9
8.6

18
16

-32.3
-35.5
-82.2
-111.8

-5.5
'08

(¥)

25

-4.1
'07

0.15

'10

'11

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

Non-consolidated

Year ended March 31

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201101

Message from the president

By securing progress in “management reform” and“the realization of growth” we aim to be a stable andhighly profitable corporation.

Our heartfelt condolences go out to all of those who sufferedin the East Japan Great Earthquake. We pray for the speedy
recovery and the restoration of the disaster-hit region.

Consolidated results for the fiscal year ending March 2011
From the second half of 2010 on, we saw a sudden
increase in demand for high-tech portable devices such as
smartphones and tablet PCs, and with this came an upturn
in investment in equipment for small- and medium-sized highdefinition panels. As a corporate group, we concentrated
our efforts on equipment for small- and medium-sized highdefinition panels, and on the strength of positive evaluations
from our customers we succeeded in expanding thenumber of orders won for such equipment such as wet
process equipment, cell assembly equipment and bonding
systems. By expanding our customer base in relation to
the semiconductor industry, we were able to increase thenumber of orders won.

Looking ahead to FY2011

At the same time, we also devoted a lot of effort tostrengthening our management practices and madeprogress in improving our cost structure through suchmeasures as reducing fixed costs, promoting standardization
and reducing lead times.

By deepening our cooperative relationships with partnercompanies that experienced difficulties with parts andmaterials procurement due to the impact of the East Japan
Great Earthquake, and by drawing up and implementing
a strategy to reduce power consumption across the entire
Group in response to shortages in electricity supply, we
are making the utmost effort to minimize the impact of thedisaster on our business.

As a result of the foregoing Shibaura Mechatronics Groupsaw a marked improvement in operating results for FY2010.

02

Net sales increased 12% against the previous fiscal year to46.2 billion yen, operating income improved by 2.6 billion
yen to 700 million yen, and net income reached 500 million
yen, an improvement of 2.2 billion yen. On the strength of
this performance we were able to return to the black. We
decided to pay a final dividend of 2 yen per share.

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

In FY2011 we expect to see continued investment inequipment for small- and medium-sized high-definition
panels for smart phones and tablet PCs. Moreover,although forecasts indicate that the scale of investment
in semiconductor related manufacturing equipment will
decrease slightly, we expect the sector to continue to belively. In this financial year, Shibaura Mechatronics Group will
push forward with cultivating deeper business relationships,
both with newly won clients and our long-standing
customers, toward winning further increases in orders thatwill allow us to secure higher sales.

Message from the president

Turning toward new developments
In our mid-term management plan, we have set ourselves
the target of achieving net sales of 65 billion yen in FY2013,
and toward that we will reinforce our endeavors to win moreorders. In order to reach our target, we will make progressin further strengthening cost competitiveness through“qualitative improvements” and expand the scale of ouroperations through “the realization of growth”.
Towards achieving “the realization of growth” we willproactively carry out such investment as the launch ofevaluation equipment in our focus areas, and make astart on the road toward growth. In addition, we will aim
to reinforce the strength of our product line-up throughthe supply of equipment that realizes and optimizes theprocesses that our customers demand, and by bringing
to market high value added equipment that incorporates
multiple core technologies.

business constitution by promoting management reform
and improved employee productivity, including measures toreduce costs through standardization, shortening lead times
and structural transformation.
The needs of our customers and the needs of society evolvewith every passing day. Shibaura Mechatronics must havean accurate understanding of these developments in thebusiness environment, promote “management reform” and“the realization of growth,” and strive to be a corporationthat is able to meet the expectations of each and every oneof its stakeholders.
As we move ahead I hope we may continue to rely on
the support and encouragement of our shareholders andinvestors.

August 2011
Kenji Minami
President and Chief Executive Officer

As we move forward, one area that we will particularly
emphasize is the expansion of our customer base in theareas of semiconductors and PV cells. We will also makeprogress in cultivating new areas that allow us to make fulluse of our core technologies, such as our ink jet coating andvacuum technologies.
We will make continued efforts toward “qualitative
improvements” that allow us to secure a stable, high profit

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201103

Financial Review
Business at a Glance

Segment Information

In Shibaura Mechatronics’ business environment for the
fiscal year ending March 2011, we saw LCD manufacturers
postpone new investment in equipment for large-screen
televisions, though rapid growth in demand for the touch
panels used in high end mobile devices spurred accelerated
investment in related equipment from the second half ofthe fiscal year. In the semiconductor industry, all device
manufacturers continued to promote investment. In thecourse of the term, inquiries in respect of solar-battery
related equipment gradually increased, led by the Chinese
market.
In these circumstances, the Group further consolidated
activities aimed at generating orders, cut fixed costs
through business restructuring, and endeavored tostrengthen management by revising cost structures throughstandardization and the reduction of lead times.
As a result of the foregoing, sales for the fiscal year amounted
to 46,246 million yen (up 12.5% against the previous fiscal
year), with an operating profit of 743 million yen (against a
1,869 million yen operating loss for the previous fiscal year),an ordinary loss of 803 million yen (against a 1,611 million
yen ordinary loss for the previous fiscal year), and a net loss
that amounted to 485 million yen (against a 1,711 million yen
net loss for the previous fiscal year).

1. Fine Mechatronics Segment
Segment sales of 22,513 million yen represented anincrease of 7.4% from the previous fiscal term, and werecorded an operating profit of 609 million yen (against a 40
million yen operating loss for the previous fiscal year).
In the LCD panel industry, equipment investment forlarge-sized panels slowed as manufacturers delayed theirinitial plans. However, in the second half of the fiscal
year, expanding demand for smartphones and tablet
computers resulted in accelerated equipment investment
for high-definition touch panels and medium-sizedpanels, and that triggered increased demand for wet
processing equipment and cell assembly equipment.
In the semiconductor industry, we focused our attention
on wet cleaning equipment for wafer processing
equipment and on product development in mask related
equipment, and sought entry into the market.

Net Sales

Operating Income

2. Mechatronics Systems Segment
Segment sales of 20,145 million yen represented a 53.3%
increase from the previous fiscal term, and we recorded
segment income of 210 million yen (against a segment
loss of 1,520 million yen for the previous fiscal term).
In the first half of the year, outer lead bonders for LCD

Sales by Segment(¥Billions)74.7(¥Billions)

74.7

1.6
0.7
41.1

41.1

'07

-1.5
-1.9

'07

'08

'09

'10

Year ended March 31

04

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

49.0

46.2

-1.6
'11

'07

'08

'09

'10

'11

'08

(¥Billions)

32.3

66.4

66.4

49.0

Overseas Sales by Region(¥Billions)

'09

'10

22.8

46.2

23.8

20.7
15.6

'11

Fine mechatronics
Mechatronics systems
Vending machines & systems
Real estate leasing

'07

'08

'09

'10

'11

※Major countries or regions includedin each geographical area :Northeastern Asia-Taiwan,
Korea, China
Other regions-USA, Austria etc.

Financial Review

Research and Development Expenditure

module processing equipment performed strongly,
while in the second half display vacuum bonding
equipment performed well. Both recorded increases inorders and sales.
We sought to secure expansion in semiconductor
assembly process equipment by cultivating newcustomers and were able to achieve some positive results.
In PV cells , we saw an increase in inquiries.
In optical discs, orders improved in the second half of the
fiscal year and sales increased.
Due to weakening demand for ticket vending machinesand cigarette vending machines, sales decreased slightly
compared with the previous fiscal year.

Research and development expenditure by the Group as awhole stood at 2,110 million yen (this includes 498 million
yen for the development of core technologies that cannot be
broken down by segment).
Proactive R&D activities range from basic technology to
product development, and involve the Company’s corporate
R&D department, the development and design departments
in our operating divisions, and consolidated subsidiaries.
Key research activities and results and R&D expenditure ineach segment are described below.

1. Fine Mechatronics Segment
R&D costs for the segment totaled 743 million yen.
Development work on LCD manufacturing equipment
encompassed wet processing equipment for highdefinition and medium-sized panels, PI inkjet coaters andcell assembly equipment.
Development of semiconductor manufacturing equipment
included wet cleaning equipment for next generation
devices, etching equipment and wafer inspection
equipment.

3. Vending Machines and Systems Segment
Segment sales of 1,790 million yen represented a 1.5%
decrease from the previous fiscal term to, and werecorded an operating loss of 245 million yen (against a
196 million yen operating loss for the previous fiscal year).
Sales of both ticket and cigarette vending machines were
down against the previous fiscal year, due to weak demand.
4. Real Estate Leasing Segment
Segment sales stood at 1,796 million yen, 1.3% down fromthe previous fiscal year, and we recorded operating incomeof 814 million yen, 48.8% up from the previous fiscal year.

ROA

(%)

ROE

(%)

2. Mechatronics Systems Segment
R&D costs for the segment totaled 716 million yen. In the

DOE

(%)

D/ E Ratio

1.6

2.1

(%)

77.0
70.0 69.9

1.5
2.8

1.7

1.4

1.1
45.9 44.7

-4.0

0.6

-9.8

-2.3
-3.0

-3.0

0.0
-25.4

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

Year ended March 31

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201105

Financial Review

area of LCD module assembly equipment, we advanced
the development of high-speed, high-definition, spacesaving OLBs (outer lead bonders) and PWBs (PWB
bonders), and of vacuum bonding equipment for touch
panels.
In semiconductor assembly equipment, we developed
high-speed, high-definition bonding equipment. In
batteries, development work included sputtering
equipment for solar batteries, solar battery tabbed
string equipment, and manufacturing equipment forrechargeable batteries for automotive applications.
In electronic & vacuum systems, we developed singlelayer sputtering equipment for Blu-ray Discs, multi-layer
sputtering equipment, and sputtering equipment for
semiconductor backside contacts.

3. Vending Machines and Systems Segment
R&D costs in this segment amounted to 151 million
yen. In the field of vending machines and ticket vending
machines, development activities centered on networkenabled general-purpose vending machines capableof handling high-denomination bills, electronic-moneycompatible, touch-panel ticket vending machines forrailroads, model changes of popular types of vending
machines, and new types of printer units for ticket
vending machines.

R&D Expenditures

Facilities Expenditures(¥Billions)

Number of Employees

2.2Free Cash Flows(¥Billions)

1,744

2.9

2.7

Total assets at the end of the fiscal year amounted to 54,250
million yen, an increase of 1,591 million yen compared to theend of the previous fiscal year.
Current assets amounted to 38,990 million yen, an increaseof 2,737 million yen compared to the end of the previous
fiscal year. The primary reason for this was an increase innotes and accounts receivable-trade.
In addition, fixed assets amounted to 15,260 million yen, adecrease of 1,145 million yen against the end of the previous
fiscal year. This was largely attributable to a decrease inleased assets, and depreciation of tangible fixed assets.
Total liabilities at the end of the fiscal year were 36,758
million yen, 1,209 million yen higher than at the end of
the previous fiscal year. The major reason for this was anincrease in notes and accounts payable-trade, as well as
short-term loans payable.
Total net assets at the end of the fiscal year stood at 17,492
million yen, 382 million yen higher than at the end of theprevious fiscal year. The underlying reason for this was anincrease in retained earnings as a result of recording a net
profit for the fiscal year.

(¥Billions)

2.5

3.2

Financial Condition

1,802

1,694 1,631

4.4
1,532
1.3

2.1

1.5
1.2
0.9
0.7

-3.2
-4.7
-5.7

'07

'08

'09

'10

Year ended March 31

06

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

'11

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

'07

'08

'09

'10

'11

Financial Review

Cash Flows

Cash flow from financing activities increased 484 million yen(against a decrease of 2,681 million yen in the previous fiscal
year). This was mainly due to an increase in funds as a resultof a rise in short-term loans payable.

Total cash and cash equivalents (hereinafter referred to as“funds”) at the end of the fiscal year stood at 3,352 million
yen, a decrease of 2,764 million yen from the end of theprevious fiscal year.
Cash flow from operating activities decreased by 2,764
million yen (against an increase of 4,439 million yen in theprevious fiscal year).
This was mainly due to fewer funds at hand as a result of
an increase in accounts receivable, despite increased funds
from recording a net profit before income tax adjustment for
the fiscal year and a rise in accounts payable.
Cash flow from investment activities decreased 457 million
yen (against a decrease of 45 million yen in the previous
fiscal year). This was largely attributable to a decrease infunds following the acquisition of software.

Five-year SummaryYear ended March 31,
2010

2011

2009

2008

2007

(Thousands of
U.S. dollars)(Millions of yen)

Consolidated

Year ended
March 31,2011

Net sales￥ 46,246		 ￥ 41,096		 ￥ 49,013		 ￥ 66,441		 ￥ 74,663
Cost of sales		 35,895		
33,750			 39,309			 52,070			 65,322
Operating income (loss)		
743(1,870 )(1,462 )		 1,647			 (1,630 )(1,612 )(1,752 )(2,232 )		 1,482			426			
(5,525 )		

(1,727 )(1,047 )$ 556,174
			 431,692
			 8,938
			 7,264
			 5,841

1,935			2,193			2,105			2,933			

1,165
2,713

			 21,232
			 25,381

Total assets		 54,250		

52,658			 55,649			 64,995			 73,197

			 652,442

Net assets		 17,492		

17,109			 18,870			 25,045			 25,084

			 210,367

Income (loss) before income taxes		
Net income (loss)		
Depreciation and amortization		
R&D expenses		

604 		
486 		
1,765		2,110		

1,245			3,184			

(yen)Net income (loss) per share￥

Number of employees		

9.83
1,532		￥ (35.47 )￥(111.80) ￥1,631			1,694			

(U.S. dollars)

8.62		 ￥ (20.60 )

$

0.12

1,802			

		

1,532

1,744

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201107

Corporate GovernanceFundamental Approach to Corporate GovernanceShibaura Mechatronics Group defines corporate governance asa key management function for developing corporate value withshareholders, customers, employees and society and for a medium to long - term perspective. We are all of us - the company's executives
and offices, all employees - responsible for implementing measurethat will build corporate value, and we must all ask and clarify, "Whatis required of us ?" and "What should we do ?" in respect of the law,social norms, ethics, and the like, and as the basis for complianceand risk management and for drawing up and applying the "Shibaura
Mechatronics Group Code of Conduct".

Summary of Corporate Governance(1) The board of directors comprises 11 members, none of whom havebeen appointed from outside the company. Meetings of the board of
directors are held on a monthly basis, and the role of the meeting is
not simply confined to making decisions on important issues. Every
director is required to give a specific report on the status of business
operations, an approach that allows the other directors and auditors
to contribute to business oversight, and that also promotes lively
discussions and exchanges of ideas regarding operational policies
and other issues.
(2) The board of auditors has four members, three of them outside
auditors, and is charged with reinforcing corporate governance.
Two of the corporate auditors serve full-time and are thus able toconduct proactive audits and to work in close cooperation withthe part-time auditors. Prior to the board of directors meeting,Shareholders' Meeting
Appoint / Dismiss

Board of Directors
Directors

Statutory
Audit

Appoint / Dismiss

Board of Auditors Accounting Auditor
AuditorsCEO

Each Operating DivisionInternal Audit

Internal
Auditing

Management
Audit DivisionCorporate governance system

08

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

the auditors discuss the proposals that the directors will bring to
the meeting, allowing them to play a proactive role and to offer
appropriately timed and worded comments during the meeting.
Audits by the board of auditors are carried out in accordancewith auditing policies and plans, as decided at the board ofauditors meeting. This follows consultation with the Management
Audit Division, which is part of the Internal Control Department.
Corporate auditors and accounting auditors cooperate closelywith one another in respect of auditing policies and plans, andexchange information and hold prior consultations before meetings.
(3) The Internal Control Department reports directly to the president
and is responsible for the Management Audit Division, which has astaff of two. The section is responsible for monitoring the company’sefforts to reinforce corporate governance, and for the permeationof compliance and corporate ethics throughout the company,
with a main emphasis on auditing to assure the appropriatenessof management. When improvement is found to be necessary,
improvement programs are requested and the progress of eachdepartment in promoting remedies for itself is monitored.
(4) Ernst & Young have been appointed as accounting auditors to
Shibaura Mechatronics and cooperate with the board of auditors to
conduct audits on corporate law and on the financial instruments andexchange law.

Internal Audit and Audit of Corporate Auditors(1) The mission of the Management Audit Division is to audit the
propriety of management, which focuses mainly on financial
results.The audit function also includes another aspect :auditing for compliance with laws and regulations by a certified
public accountant (independent auditor). Beyond this, eachindividual section also carries out its own audit of operations,
under the guidance of Management Audit Division.
The corporate auditors and Management Audit Division,
responsible for internal auditing work in close cooperation
to define audit objectives, plans, et cetera, and the head ofManagement Audit Division ensures that audits are enforced
and that the results are reported to the corporate auditors.
In addition, the head of Management Audit Division is to beappointed with prior consultations between the corporate
auditors and the company.
(2) A board of auditors support group has been establishedCorporate Governance(consisting of three staff members) to support the auditors incarrying out their duties. The evaluation and treatment of the
support group are subject to prior consultation with the boardof auditors so as to guarantee its independence.

Outside Directors and Outside Corporate Auditors
Full-time outside corporate auditors do not merely attend the board of
directors meetings, but also many other meetings. These include theManagement Strategy Meeting, which as a rule is held every week,
whose members consist of senior executive directors, including theCEO, as well as the directors responsible for management planning,marketing, technology, accounting and operations. Other major
meetings are held monthly by each of the reporting bodies which areresponsible for the functions related to the budget, sales, production
and development planning. Important monthly committees meetings
are also held to discuss policy and planning related to issues such ascompliance, risk management and CSR. Attendance at all of thesemeetings serves to link the board of auditors to the wider functionsof the comppany. The entire board of auditors, including part-timeoutside auditors, conduct interviews with directors and accompany theManagement Audit Division on site visits internal audit, where they canto interview representatives of business units and affiliated companies.
This enables them to perform management audits on the legalityof business operations, and also from the perspective of ensuring
efficiency. Thorough execution of this these auditing and supervisory
functions allow the three outside corporate auditors to fill the role thatwould generally be expected of outside directors. So whilst Shibaura
Mechatronics does not now appoint outside directors, we believe thiscurrent structure is capable of enforcing corporate governance.
Notwithstanding the foregoing, and irrespective of our internal company
logic, we do realize the value of experienced outside directors who cancast an objective eye over the overall corporate environment. In coming
months, we hope to be able to select a suitable candidate for outside
director, and if possible we would like to nominate that person at thenext general shareholders’ meeting.

Basic Approach to and Maintenance of the Internal
Control System
Shibaura Mechatronics deploys an internal control system that iscentered on legal compliance and risk management, plus management

efficiency. We continue to introduce policy measures to strengthen
the internal control system (establishing official rules, comprehensive
education, strengthening audit systems, information management andthe like), and to make it the bedrock for further improvement.
Guided by the management philosophy of “offer superior technology
and services that help people to realize more affluent lifestyles” weensure appropriate business activities by achieving and making use offollowing systems and by appropriately assessing and improving ouroperations.
(1) System in order to ensure that directors carry out thei duties inconformity with laws and regulations and the company's articles ofincorporation.
(a) We introduced the Shibaura Mechatronics Group Code of
Conduct as a means to ensure business operations andcorporate ethics that meet the expectations of society. The
directors of the company take the initiative in putting the Codeinto practice and in ensuring that all employees comply with
its content.
(b) Meetings of the board of directions are managed in accordancewith the regulations on board meetings and held once a month,
as a general rule. The board deliberates and decides upon
important managerial issues, and also oversees the directors
in the execution of their duties by receiving regular reports fromthem on the status of their responsibilities.
(2) System for preserving and managing information used by directors
in carrying out their duties.
Important documents used by directors in carrying out theirduties (minutes of major meetings, documents granting approval,
contract documents, confidential documents and all applicable
electronic media), must be preserved and managed pursuant
to company regulations (Documents preserving regulation,
Confidential information managing basic regulations, etc.) in an
appropriate manner.
(3) The regulations in respect of managing the danger of a loss and othersystems.
(a) In accordance with the regulations on risk management, we
carry out risk management during day-to-day operations andhave put in place management measures for dealing withany emergency. This is done in order to prevent or otherwise
minimize any damages and to assure the reasonable disclosureof information.
(b) The head of the Management Audit Division acts to prevent

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201109

Corporate Governancerisk-related damage by developing and planning audit-related
policy and objectives in cooperation with the corporate
auditors, by enforcing internal audits, and by ensuring that all
departments carry out independent audits of their operations inthe same way.
(4) System to guarantee the efficient performance of directors incarrying out their duties.
(a) In respect of important managerial issues, the board of
directors, along with the CEO and executive directors and the
directors responsible for management of corporate planning,marketing and sales, technology, products and procurement,
finance and accounting and general affairs, hold management
strategy meetings in order to achieve rapid decision-making
and to optimize business operations.
(b) Specialized meetings related to deliberating and reporting on
the following management matters, the budget, business,
manufacturing, development and design, and others, will beheld every month, as a general rule.
(c) The decisions made by the final decision-making authority
including the meetings of the board of directors shall be
undertaken pursuant to organization regulations, regulation ofdivision of duties and managerial responsibilities, and assuringobservance of regulations in undertaking all professional duties
and the appropriate performance of business management.
(5) System to guarantee conformity with laws and regulations andthe articles of incorporation by employees carrying out their
responsibilities.
(a) The CSR (Corporate Social Responsibility) Committee wasestablished to ensure that all employees abide by the Shibaura
Mechatronics Group Code of Conduct and to promote thethorough penetration of and systematic compliance withcorporate ethics, as well as laws and regulations.
(b) A “Risk Consultation Hotline” was established as a means
to allow employees to anonymously consult on and report
information regarding illegal activity, in order to detect andresolve any problems at an early stage. When necessary,consultation with legal advisors is also available.
(6) A system for ensuring appropriate business operations by
Shibaura Mechatronics and the subsidiaries that together
comprise the corporate group.
(a) Under the Shibaura Mechatronics Group Code of Conduct,

10

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

the Group’s direction and goals are identified, and the entire
Shibaura Group works towards achieving these goals.
(b) Shibaura's Management Audit Division also oversees
management audits at the affiliated companies.
(c) In order to supervise the management performance of theaffiliated companies, managers from the Company may be
appointed to serve as part-time directors.
(d) Business management (in respect of matters that require
subsidiaries to provide prior notification to or receive approval
from the parent company) must be carried out in by reference toand in accordance with the regulations of domestic subsidiaries
and overseas subsidiaries.
(7) A system to ensure the practical effectiveness of audits carried out by
the auditors.
(a) Management Audit Division and General Affairs Division support
the auditors carrying out their duties.
(b) When auditors seek support staff to assist them in carrying out
their duties, such assistants shall be selected from an appropriate
department after consultation with the auditors, and assigned tothe auditor support group.
(c) In the event that directors or employees discover any importantmatters that will impact on performance, or any actions that
represent serious breaches of laws and regulations, they shall,
without delay, inform the corporate auditors.
(d) The auditors shall be allowed to attend management strategy
meetings and other important meetings, and committee
meetings.
(8) System to further ensure the practical effectiveness of audits by
the auditors.
(a) The president shall, at certain intervals, exchange information
with the auditors.
(b) T h e c o r p o r a t e a u d i t o r s s h a l l , a t c e r t a i n i n t e r v a l s ,exchange information with the independent auditors.
(c) The head of Finance and Accounting Division shall, at certain
intervals, exchange information with the auditors.
(d) The head of Management Audit Division shall submit a reportto the corporate auditors in respect of the results of internal
audits.
(e) T h e h e a d o f M a n a g e m e n t A u d i t D i v i s i o n s h a l l b e
appointed with prior consultations between the corporate
auditors and the company.

CSR Activities
CSR Management
We established the CSR Committee in April 2005. This
move brought a systematic approach to dealing with issues
and activities previously handled by individual departments
and independent committees. The CSR Committee drafts
Groupwide plans related to promoting CSR, and assures
promotion of CSR activities by providing direction and
impetus for the activities of Global Environment Committee,
the Social & ES (Employee Satisfaction) Activities Committee
and the Risk Compliance Committee.
Report /DirectManagement Audit Division

CEO
ReportBoard of Directors
CSR Committee
ReportRisk Compliance
Committee

Social & ES Activities
Committee

Board of Auditors

Global Environment
Committee

CSR promotion system

Environmental Approach
Worldwide environmental problems, including climatechange, are some of the most important issues that mankind
must solve.
Over the course of many years, Shibaura Mechatronics
Group has cultivated core technologies in areas that include
precision mechatronics, vacuum, wet cleaning, sputtering,bonding and laser applications. We apply this knowhow to manufacturing equipment for flat panel displays,
semiconductors, optical discs, electrical components
and batteries, all the way from development through toservice. As a maker of manufacturing equipment we giveconsideration to the environment in manufacturing activities,
and promote and supply environmentally friendly products.
Specific activities are detailed below
1. Promoting environmental management
By reducing our use of the planet’s resources, theburdens that we impose on the Earth’s environment,
and the CO2 emissions that result from our businessactivities, we promote business with a balance thatemphasizes both “management and “environment”.
2. Providing environmentally conscious products
We fully recognize the finite nature of our planet andits resources, and act on this awareness to proactively
expand our line of environmentally conscious products.
3. Promoting business activities
We set environmental targets and goals regarding theenvironmental aspects of our business activities, suchas reducing the effects of climate change, making fulland effective use of resources, properly managing
and reducing use of chemicals. In all of our businessprocesses we seek to reduce environmental loads.
4. A Socially Aware Company
・ We comply with environmental laws and regulations,
our own guidelines and voluntary standards.
・ We strive to raise the environmental awarenessof every single person who works for Shibaura
Mechatronics, and to approach environmental issues
by acting together as a whole.
・ Shibaura Mechatronics Group promotes environmental
practices and contributes to society through thedevelopment and provision of superior environmental
technologies and products, by engaging inenvironmental activities in partnership with local
communities, and by proactively disclosing andcommunicating information in order to promote mutual
understanding.
In our Environmental Charter, we recognize that “humankind
has the duty to hand on the irreplaceable global environment
to the next generation in a sound state” as the core concept
in our environmental policy. Acting on this, we will continue
to promote environmental management.
＊ For full details of Shibaura Mechatronics Group’s CSR activities
please refer to the “2011 Shibaura Mechatronics Group CSR
report” at the below link.
http://www.shibaura.co.jp/csr/pdf/CSR_2011.pdf

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201111

Board of Directors
As of June 22, 2011

Directors

Kenji Minami

Masahiro Abe

Shigeki Fujita

Shunichi Kishimoto

President and Chief Executive Officer

Executive Vice President

Senior Vice President

Senior Vice President

Executive General Manager ofTechnology Headquarters

Executive General Manager ofFine Mechatronics Division

Executive General Manager of
Mechatronics System Division

Kazuhiko Igarashi

Shuichi Shimada

Satoru Hara

Masaharu Yamanaka

Senior Vice President

Vice President

Vice President

Vice President

General Manager ofCorporate Management & Finance Division

Executive General Manager of
Production & Procurement Headquarters

Deputy General Manager ofTechnology Headquarters

Deputy General Manager of
Mechatronics System Division

Hitoshi Dojima

Akira Nakai

Yoshitsugu Ogawa

Vice President

Vice President

Vice President

General Manager of
Human Resources & Legal Division

General Managar of
Customer Relations & Marketing Division

Deputy General Manager ofFine Mechatronics Division

Kazumasa Uchida

Haruhiko Washio

Yoshiaki Sato

Sennosuke Yoshida

Auditor

Auditor

Auditor

Auditor

Auditor

12

SHIBAURA MECHATRONICS CORPORATION
Annual Report 2011

Investor Information
As of March 31, 2011

Date Established

October 12, 1939

Capital6,761Million-Yen

Number of Employees

Consolidated: 1,532
Non-consolidated : 962

Common Stock

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

Number of Shareholders

7,857

Stock Listings

The Tokyo Stock Exchange (Code : 6590)

Transfer Agent for
Common Stock

The Chuo Mitsui Trust and Banking Company, Limited

Independent Auditor

ERNST ＆ YOUNG SHINNIHON LLC

Headquarters

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

33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan

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

High (yen)Low (yen)

2011
508
162

2010
472
244

2009
687
234

2008
824
388

2007
1,374
525

Principal Shareholders

Toshiba Corporation
Japan Trustee Services Bank, Limited (trust accounts)
The Master Trust Bank of Japan, Limited (trust accounts)
Japan Trustee Services Bank, Limited (trust accounts 9)

Number of shares hold

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

18,977

38.4
1.4
0.8
0.8

740
441
371

SHIBAURA MECHATRONICS CORPORATION
Annual Report 201113

5-1, Kasama 2-chome, Sakae-ku, Yokohama,
Kanagawa Pref. 247-8610, Japan
TEL：+81-45-897-2421
FAX：+81-45-897-2470
http://www.shibaura.co.jp/※Blu-ray Disc is a trademark of Blu-ray
Disc Association.
※All the other trademarks mentioned inthis report belong to their respective
companies.

SPB0313A 00 1109
11011