SHIBAURA MACHINE’S STORY- Foundation and Evolution: Founded by Kametaro Fujishima, SHIBAURA MACHINE initially focused on producing high-quality machine tools for Japan's shipbuilding industry. Over time, the company diversified into molding machines and expanded globally, adapting to economic and technological changes.
- Current Operations: As of March 31, 2024, the company operates in three main segments: Metal & Plastics Industrial Machine, Machine Tools, and Control Systems, with a strong global presence.
MANAGEMENT MESSAGE- President's Message: The company is committed to innovation and customer satisfaction, aiming to exceed expectations and contribute to societal infrastructure.
- Strategic Plans: The Long-Term Vision 2030 and Medium-Term Management Plan 2026 focus on sustainability and technological advancement.
SUSTAINABILITY MANAGEMENT- Human Resource Strategy: Emphasizes developing responsible and skilled employees for future challenges.
- Environmental Initiatives: Commitment to sustainability through innovative solutions and efficient resource management.
- Corporate Governance: Ensures transparency and accountability with a robust governance framework.
CORPORATE DATA- Financial Highlights: Overview of financial performance over the past decade.
- Corporate Information: Details the company's structure and operational scope.
EDITORIAL POLICYThe report aims to enhance stakeholder understanding of SHIBAURA MACHINE's initiatives for long-term corporate value creation, adhering to international reporting standards.
OverviewShibaura Machine specializes in manufacturing, selling, and servicing
industrial robots and electronic controls, used in industries like smartphone manufacturing and automotive component assembly. Founded in December 1938, it has a global network of sales, service, and production bases.
Main Products- Industrial robots (SCARA, cartesian coordinate, painting, vertical multi-articulated, dual-arm collaborative robots)
- Servo systems and linear motors
- FA controllers
- Engineering solutions
Financials- Operating profit: ¥13.6 billion
- Net sales: ¥160.6 billion
- Employees: 3,057
Manufacturing Locations- Japan: 42.2 billion yen
- Asia: 96.4 billion yen
- North America: 20.7 billion yen
- Other: 1.1 billion yen
Technological CapabilitiesFocus on innovation and customization to meet customer needs, with eight technological platforms supporting advanced machine manufacturing.
Solution CapabilitiesProvides unique solutions by leveraging strong customer relationships and technological expertise, addressing social issues by detecting trends and developing countermeasures.
Customer RelationshipsLong-term relationships with customers through customized machines and close collaboration.
Technological PlatformsEight platforms support production of next-generation batteries, high-precision machines, and advanced industrial equipment.
Industry ApplicationsProducts used in automotive, renewable energy, medical, and food packaging industries, focusing on reducing emissions and improving energy efficiency.
ConclusionShibaura Machine enhances technological and solution capabilities to meet evolving industry needs, contributing to societal development.
Introduction
SHIBAURA MACHINE partners with customers worldwide to address global societal issues through technological capabilities and high-value-added solutions, aiming to sustain corporate value growth.
Value Creation Process
Focuses on issue detection, leveraging technological capabilities, resolving customer issues, and building deeper customer relationships, exemplified by lithium-ion battery separator film production lines for EVs.
Technological Capabilities and Strengths
Provides full production lines for separator films, ensuring high-quality and uniformity, with unique strengths in designing and manufacturing all equipment in-house.
Resolution of Customer and Social Issues
Offers comprehensive solutions for lithium-ion battery production, aiding in EV adoption and CO2 emission reduction.
Future Initiatives
Focus on developing technologies for a decarbonized society, including lightweight automotive components and high-precision optical components.
Medium-Term Management Plan 2026
Aims to enhance corporate value through structural reforms and strategic investments in R&D and talent development, aligning with Long-Term Vision 2030.
Long-Term Vision 2030
Aims to resolve social issues and enhance corporate value through a strategic business portfolio, improving profitability with new business combinations, expanding overseas sales, and supporting technological platforms with a robust human resource strategy.
Company Strengths
Specializes in manufacturing equipment for high-value-added products, leveraging technical expertise and problem-solving capabilities.
Management Reform Plan Review
Launched in 2020, focusing on optimizing operations and improving production efficiency, exceeding sales and profit targets despite challenges.
Medium-term Management Plan 2026
Targets ¥300 billion in sales by 2026, focusing on adapting to manufacturing megatrends with a flexible business portfolio.
Business Portfolio Strategy
Efficient resource allocation, focusing on growth areas like LiB separator film production lines, expanding "offensive" businesses, and improving profitability in "defensive" segments.
Corporate Strategies
Reinforce service business, enhance engineering solutions, and develop equipment for next-generation batteries.
ESG Management
Incorporates ESG into management strategy, focusing on transparent disclosure and addressing societal issues through high-value-added equipment.
Management Message
Emphasizes adapting to demographic changes by providing opportunities for women and securing talent, aiming for consistent profitability and efficient investment.
Long-Term Vision 2030
Aims to address social issues and enhance corporate value through technological innovations, with strategies for business portfolio evolution, new business development, overseas sales growth, and personnel fostering.
Developing New Businesses
Plans to increase profitability by creating businesses that combine products and services to solve customer issues, including digital transformation and active investments in growth markets.
Business Portfolio Strategy
Clarifies priority fields, reduces or withdraws from less profitable areas, and invests in high-value-added fields.
Fostering Personnel
Consolidates basic technologies and trains specialists, forming industry-academia collaborations and hiring skilled professionals.
Growing Overseas Sales
Aims to increase overseas sales, focusing on competitive fields like large machines and high-precision tools.
Management Reform Plan
Concluded in fiscal 2023, transforming the company into a highly profitable entity through restructuring and investments.
Medium-Term Management Plan 2026
Focuses on continuing transformation into a highly profitable company, with strategies for business restructuring and HR system reform.
Management Strategy and Reform Plan: Implemented a Management Reform Plan with targets for fiscal 2023, focusing on organizational restructuring and resource optimization.
Production and Market Expansion: Increased production capacity for lithium-ion battery separator films and expanded operations in India, meeting targets due to automotive industry electrification.
Medium-Term Management Plan 2026: Sets ambitious targets for fiscal 2030, with fiscal 2026 as a milestone, introducing ROIC as a new efficiency indicator.
Financial Strategy and Shareholder Returns: Plans capital investments focusing on plant renovations, renewable energy, and ERP system updates, with R&D investments aimed at next-generation batteries.
Metal & Plastics Industrial Machine Company: Focuses on injection molding and extrusion machines for plastics and die casting machines for metals, enhancing product offerings and responding to industrial changes.
Overview: Emphasizes commitment to sustainability and automation, leadership in die casting machines, and expansion into extrusion machines.
Die Casting Machines: Leading provider since 1953, focusing on aluminum die-cast products for automotive applications, emphasizing recycled materials to reduce CO2 emissions.
Extrusion Machines: Manufactures equipment for the plastic industry, developing technologies for next-generation batteries and sustainable technologies.
Business Performance: Includes financial data, highlighting strong overseas sales ratio and global supply chain.
SWOT Analysis: Strengths include diverse product lineup and technological capabilities, weaknesses involve market reliance and exchange rate risks, opportunities in EV transition, and threats from rising energy costs.
Management Strategy: Aims to enhance production efficiency and competitiveness through centralized production and intelligent technologies.
Market Trends: Discusses automotive industry shift towards EVs and growing demand for die-casting machines for motors and battery cases.
Challenges and Goals: Faced challenges due to global events and material costs but met targets under Management Reform Plan, with future goals to improve profitability and focus on next-generation technologies.
Conclusion: Committed to contributing to a decarbonized society by focusing on growth areas and enhancing profit ratios.
Overview: Strategic direction and performance of Machine Tools Company and Control Systems Company, focusing on high-precision and large-scale machine tools, and control systems for automation and efficiency improvements.
Machine Tools Company:- Business Focus: Manufacturing, selling, servicing, and retrofitting high-precision machine tools across various industries.
- Main Products: Specialty and ultra-large machine tools, high-precision aspheric surface grinders, optical glass molding press machines, and slicing machines for semiconductor wafers.
- Strategic Goals: Emphasize high-precision machine tools as an offensive business and large-scale machine tools as a defensive business.
- Challenges: Geopolitical risks, U.S.–China trade tensions, and material cost increases.
Control Systems Company:- Business Focus: Development of industrial robots and servo systems to enhance automation and efficiency.
- Main Products: Industrial robots, servo systems, linear motors, and engineering solutions.
- Strategic Goals: Transition towards providing system solutions and expand the solutions business using control technology.
- Opportunities: Increasing demand for automation in automotive and medical manufacturing.
Performance Summary: Includes financial data, highlighting financial performance and strategic adjustments.
Future Outlook: Aims to enhance profitability by optimizing organizational structures and expanding into new markets.
Management Strategy
Focuses on integrating a domestic subsidiary's engineering solutions business and establishing a production facility in China to enhance competitiveness in SCARA robots.
Strategies for Control Systems Company
Plans to expand sales of SCARA robots, centralize operations, and develop new business pillars in servos and programmable logic controllers.
Goals and Challenges
Anticipates increased demand for automation and aims to boost labor productivity using control technology and robotics.
Engineering Solutions Business Expansion
Expanding engineering solutions business by integrating teams and acquiring TECHNOLINK Co., Ltd.
Dual-Arm Collaborative Robots
Launched project team to promote dual-arm collaborative robots, integrating models into various industries.
Sustainability Management
Committed to addressing social issues and enhancing corporate value through technological innovations.
Sustainability Initiatives
Details initiatives across various themes, including customer service, supplier relations, investor engagement, employee development, community support, environmental management, and governance.
Sustainability Management of SHIBAURA MACHINE
Human Resource Strategy
Aims to become a leader in global manufacturing by 2030 through innovative technology, focusing on R&D, digital transformation, and production technologies.
Global Human Resource Policy
Respects diverse values and ensures fair treatment, promoting safe work environments and tailoring systems to local contexts.
Human Resource System
Employs dual hiring approach, focusing on leadership and international orientation in new hires.
Human Resource Development
Fosters independent, career-driven personnel to address future social issues and enhance corporate value.
Diversity and Inclusion Initiatives
Promotes diversity and inclusion, ensuring employment based on skills rather than demographics.
Health and Safety
Prioritizes health and safety, aiming for zero industrial accidents.
Intellectual Property
Supports goal of resolving social issues and enhancing corporate value, managing and supporting intellectual property across the company.
Intellectual Property Management
Emphasizes periodic reviews and portfolio reconfiguration to align with technological advancements.
Supply Chain Management
Focuses on CSR procurement, emphasizing environmental preservation, procurement standards, and compliance.
Compliance and Global Procurement
Educates employees on compliance and conducts internal audits and external workshops.
Environmental Management
Committed to sustainability, complying with environmental laws, and reducing environmental impact.
Environmental Action Plan Achievements
Significant reductions in CO2 emissions intensity, waste emissions, and chemical emissions achieved in fiscal 2023.
Water Resource Initiatives
Engages in conservation activities to ensure sustainable water resources.
Product Development and Environmental Considerations
Efforts to improve energy-saving performance and reduce CO2 emissions during product use.
Climate-related Financial Disclosures
Supports Task Force on Climate-related Financial Disclosures (TCFD) and commits to disclosing information based on governance, strategy, risk management, and metrics and targets.
Governance
Emphasizes sustainability through Sustainability Advancement System, led by Sustainability Committee chaired by the president.
Strategy
Conducted scenario analysis to identify climate-related risks and opportunities across value chain.
Metrics and Targets
Targets to reduce Scope 1 and 2 CO2 emissions by 50% from 2013 levels by 2030.
Risk Management
Risk Management Committee identifies and manages climate-related risks.
Environmental Data
Includes detailed environmental data, with targets set for future reductions.
Transition Plan for Decarbonization
Plans to install solar panels and utilize renewable energy sources to reduce emissions.
Digital Transformation Initiative: SHIBAURA DX
Aims to create a "Virtual Lab" to eliminate need for prototyping and testing, reducing CO2 emissions.
Discussion on Corporate Culture and Management Plans
Discusses corporate culture, strengths, and new Medium-Term Management Plan 2026.
Governance and ESG Management
Emphasizes strengthening governance to improve corporate value, with focus on diversity and global talent acquisition.
Conclusion
Plans under Medium-Term Management Plan 2026 include significant investments in R&D and human resources.
Talent Development and Compensation System
Focuses on investing in talent and enhancing employee engagement through development programs.
Message to Stakeholders
Encourages stakeholders to engage with the company beyond formal disclosures.
Industrial Machinery Segments
Operates in three segments: molding machines, machine tools, and control systems.
Corporate Governance System
Adopted "company with committees" governance structure, including Audit and Supervisory Committee.
Board of Directors and Committees
Board includes nine directors, with a majority being outside directors.
Corporate Governance Reforms
Strengthened governance by increasing outside directors and establishing advisory committees.
Audit and Supervisory Committee
Consists of three members, including two outside directors, who audit and supervise directors' duties.
Internal Auditing Department
Verifies business activities' legality and appropriateness.
Appointment of Outside Directors
Appointed based on character and expertise, expected to provide recommendations and proposals.
Committee Meetings and Attendance
Outlines attendance of committee meetings by directors during fiscal 2023.
Policy on Training Directors
Provides training programs to enhance directors' knowledge and abilities.
Shares Held for Strategic Purposes
Holds shares deemed strategically necessary for business expansion and development.
Nomination and Remuneration Advisory Committees
Handles personnel matters related to directors and executive officers.
Corporate Governance and Director Compensation
Stock compensation plan aims to align directors' interests with shareholders.
Details of the Stock Compensation Plan
Includes Continuous Service-Type Restricted Share-Based Remuneration Plan and Performance-linked and Restricted Share-based Remuneration Plan.