61

HDS Group’s
Values and Aspirations

HDS REPORT 2023

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information■ Sustainability Data
Environment

Indicator

Scope covered

t-CO2

Consolidated

239,013

6,613,783

Total water withdrawal

80

81

Total water discharge

Asia

16

14

Incineration waste

197

47

Cafeteria waste

205

145

Amount of general waste discharge

Europet-CO2

Consolidated

North America

By location

Total

498

286

Japan

13,394

15,418

Asia

416

264

2,349

2,494

783

474

Total

16.942

Japan

12,360

Asia

ー

298

ー

1,785

Europet-CO2

Consolidated

North America
Scope 2

By market

Europet-CO2

Consolidated

Scope coveredML(megaliters)

ConsolidatedtConsolidated

Amount of hazardous waste discharge
Greenprocurement

Ratio of consent acquired for green procurement standards%

Non-consolidated

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023

23

31

23

31

54.1

2,245

0.4

10

54.5

2,255

ー

712

100

100

9

15

Number of suppliers audited

Company

Number of companies surveyed for inclusion of environmentally hazardous substances

Company

Non-consolidated

90

95

Amount of copper usage

Thousand t

Non-consolidated

3.58

3.44

18,650

Amount of oil and grease used

Thousand t

Non-consolidated

0.09

0.14

9,839

Amount of recycled plastic raw materials usedt

Non-consolidated

17.36

6.24

Company

Consolidated

5

5

%

Consolidated

50

50Company

Consolidated

4

4

%

ISO 14001

Certification status
Ratio of certifications acquired at sites

Status of EHS audits

ー

291

Total

ー

12,213*EHS audit: Internal environmental audit based on the ISO 14001 standard or in accordance withthe company's environmental policy

1. Purchased goods and services

198,899358,792

Ratio of sites where environmental risk assessments have been conducted among all sites

Non-consolidated

100

100

2. Capital goods
3. Fuel- and energy-related activities not included in
Scope 1 or Scope 2
4. Upstream transportation and distribution

17,054

11,237

Violations of environmental laws and regulations

Number of cases Non-consolidated

0

0

899

18,329Accidents and pollution causing environmental issues

Number of cases Non-consolidated

00Complaints on environmental issues

Number of cases Non-consolidated

0

0

t-CO2

Consolidated

3,951

8,466

455

1,322

6. Business travel

104

702

7. Employee commuting

212

613

8. Upstream leased assets

00

Total upstream

Yen

Fine on environmental issues
Environmental
training

Number of participants

399,461ー

3,837

10. Processing of sold productsー0Indicator

11. Use of sold products

ー

6,190,129

Number of employees (consolidated)

12. End-of-life treatment of sold products

ー

1,398

13. Downstream leased assets

ー

23

ー

0

15. Investmentsー0Total downstreamー

6,195,386

16. Other (upstream)ー0Consolidated

Entire Group

Number of employees (non-consolidated)

Male

Person(s)Consolidated

Person(s)Non-consolidated

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023
1,145

1,324

412

490

352

404

60

86

14.6

17.6

Entire Company

Person(s)Non-consolidated

138

156

Entire Company%

Non-consolidated

25.1

24.1

Average age

Entire Company

Age

Non-consolidated

41.8

41.8

Average years of service

Entire Company

Year(s)Non-consolidated

15.1

14.4

ー

8

ー

3

1,815

Entire Company

20,247,207

45,780Male

20,269,377

47,595ー28.2

Consolidated

20.6

Ratio of average number of temporary employees

22,170%0.5

Average number of temporary and contract employees

Fuel consumption

Renewable energy electricity ratio

101

%

0

Total

0

2

Ratio of female employees

6,594,846

Consolidated

Scope covered

Female

ー

MWh

Unit

Entire Company

221,574

Electricity consumption

Non-consolidated

0SocialTotal

17. Other (downstream)%

Non-consolidated

Note: The scope of GHG emissions Scope 3 categories 1, 4, 5, 6, 7 and water and waste related data for the fiscal year ended March 31, 2022 is on a non-consolidated
basis, and the calculation method is partially different from that for the fiscal year ended March 31, 2023. The above figures are rounded to the nearest whole number.

221,574t-CO2

Person(s)Ratio of participants to employees

9. Downstream transportation and distribution

14. Franchises

Energy consumption

Unit

North America

5. Waste generated in operations

Scope 3

Indicator

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023

Japan

Total GHG emissions

Scope 1

Unit

Number of foreign employees

Person(s)FemaleRatio of foreign employees%

Non-consolidated

ー

5

ー

1.6

HDS Group’s
Values and Aspirations

Indicator

Unit

Scope covered

Entire Company
Number of newly graduated recruits

Male

Person(s)Non-consolidated

FemaleEntire Company
Number of mid-career recruits

Male

Person(s)Non-consolidated

FemaleRetention of newly graduated recruits(turnover rate after 3 years)

Entire Company
Male%

Non-consolidated

FemaleMateriality to Achieve
Aspirations

9

5

8

1

1

Certification status (including ISO 9001
and other industry-specific standards)

16

13

Number of patents held

16

10

0

3

7.7

0.0

5

0.0

16.7

0.0

%

Non-consolidated

3.7

3.0

%

Non-consolidated

3.7

2.8

81

82

0

0

3

2

Male (foreign nationals)
Managers

Female (entire Company)

Person(s)Non-consolidated

Female (foreign nationals)
Ratio of female managers%

Male (entire Company)
Male (foreign nationals)
Executive Officer

Female (entire Company)

Person(s)Non-consolidated

Female (foreign nationals)
Ratio of female managers%

Entire Company
Employees with disabilities

Male
Ratio of employees with disabilities

Average monthly overtime hours/person

Entire Company

Percentage of paid leave taken
Number of employees who tookchildcare leave

Male

%

0
2.4

12

12

0

0

1

1

0

0

7.7

7.7

10

11

8

9

2

2

1.85

1.83

Hours

Non-consolidated

25.2

22.9

%

Non-consolidated

69.6

73.2

14

9

10

9

4

0

Person(s)Non-consolidated

Female%Non-consolidated

55.6

56.3

Number of meetings heldTimes

Non-consolidated

12

12Number of meetings heldTimes

Non-consolidated

12

12

Male

Labor-management meetings
Safety and Health Committee

Number of meetings held

Times

Number of participants

Person(s)Status of EHS risk assessments*EHS: A method of managing the environment and occupational health and safety in
an integrated mannerStress check inspection rate
Harassment Prevention Training

Non-consolidated

Entire Company

Ratio of employees who took childcare leave

Employee training on safety and health

Person(s)Female0
3.6

Number of cases Non-consolidated%

Number of trainings held

Times

Number of participants (cumulative)

Person(s)Ratio of participants to employees％Child labor, forced labor, human trafficking
Special training (master's, doctoral, MBA, MOT, overseas training, overseas language study, etc.)

Non-consolidated

Non-consolidated
Non-consolidated

20

12

300

162

41

30

88.6

86.0

3

3

381

144

75.3

29.4

Number of cases

Consolidated

00Person(s)Non-consolidated

1

3

Data and Company
Information

Number of employees taking correspondence education programs(cumulative)

6

Entire Company
Male (entire Company)

Sustainability
Management

Indicator

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023

Turnover rate for personal reasons retirees Entire Company

Total turnover rate

Sustainability
Supporting Action
Strategies

Certified sites
Ratio of sites certified

Unit

Scope covered

Person(s)Non-consolidated

Company%

Consolidated

Number of cases Non-consolidated

Corporate citizenship activities(social contribution activities)

HDS REPORT 2023
Sustainability Data

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023
234

131

7

7

70

70

951

1,004

Community cleanups

Times

6

6

Harmonic Lectures

Times

1

1

Harmonic Concerts
Lessons in educational
facilities

Times

0

1

ー

3

Non-consolidated

Times

GovernanceIndicator

Unit

Internal

5
0

%

0

0

Person(s)

4

4

0

0

0

0

FemalePerson(s)MaleOutside Female
Female ratio

Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2023
5

Person(s)Female ratio
Director

Scope covered

0

Male

Person(s)Non-consolidated

Non-consolidated%
Person(s)Non-consolidated

99Ratio of Independent Outside Directors%

Non-consolidated

44.4

44.4

Number of Board of Directors meetings

Times

Non-consolidated

17

17

%

Non-consolidated

99.3

99.4

1

1

Person(s)Non-consolidated

3

3

4

4

Ratio of Independent Outside Corporate Auditors%

Non-consolidated

50.0

50.0

Number of Board of Corporate Auditors meetings

Times

Non-consolidated

18

18

Average attendance at Corporate Auditors meetings%

Non-consolidated

98.6

98.6

Number of whistleblown cases

Number of cases Non-consolidated

17

19

Number of confirmed corruption cases

Number of cases Non-consolidated

0

0

0

0

Total

Average attendance at Board of Directors meetings
Internal
Corporate Auditor

OutsideTotal

Yen

Fines imposed in connection with corruption
Compliance trainings

Number of trainings held

Times

Number of participants

Person(s)Non-consolidated
Non-consolidated

ー

6

ー

293

ー

59.8

Non-consolidated00

Number of incidents of corruption and bribery

Number of cases Non-consolidated00

Number of violations of antitrust laws

Number of cases Non-consolidated00

Number of information security incidents

Number of cases

Consolidated

1

0

%

Consolidated

97.0

96.5

Ratio of participants to employees

Information security compliance ratio
Awareness training to prevent
information security breach%

Yen

Political donations

Number of trainings held

Times

Number of participants(cumulative)

Person(s)Information security due diligence performed by a third party

Times

Consolidated
Consolidated

1

2

470

1,040

2

2

62

63

HDS REPORT 2023

HDS Group’s
Values and Aspirations

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information■ Financial Data for the Past 11 Years
Net sales

FY2012
18,130FY2013

FY2014FY2015( Millions of yen )Cost of sales( Millions of yen )10,762

11,965

13,82914,992Gross profit( Millions of yen )

7,368

9,117

12,121

13,286

Selling, general and administrative expenses( Millions of yen )

3,931

4,449

5,054

5,667

Operating profit or loss

( Millions of yen )

3,436

4,668

7,066

7,618

Ordinary profit( Millions of yen )

3,576

4,822

7,525

7,829

Profit or loss attributable to owners of parent( Millions of yen )

1,960

2,993

4,833

5,001

Total assets( Millions of yen )36,95338,62549,44048,749Total net assets( Millions of yen )25,98630,52037,68038,891

Interest bearing liabilities( Millions of yen )

4,919

217

745

892

Net cash( Millions of yen )

7,068

8,870

11,402

12,014Equity ratio

(%)

67.5

75.9

73.3

76.1

Cash flows from operating activities( Millions of yen )

4,700

3,643

5,494

6,499

Cash flows from investing activities( Millions of yen )3,271(1,102)(2,103)(4,394)

Free cash flows( Millions of yen )

7,972

2,540

3,390

2,105

Cash flows from financing activities( Millions of yen )(2,545)(5,591)(737)(1,384)

Cash and cash equivalents at end of period( Millions of yen )

9,713

6,883

9,730

10,439Net assets per share( Yen )

272.5

320.1

395.7

405.3

Net profit or loss per share( Yen )

21.4

32.7

52.8

54.6

Dividends per share( Yen )

7.3

9.7

14.3

18.0

Total dividend paid

( Millions of yen )

671

885

1,312

1,648

Dividend payout ratio

(%)

34.2

29.6

27.2

33.0

Ratio of total amount of dividends to net assets

(%)

2.8

3.3

4.0

4.5

Ratio of gross profit to net sales

(%)

40.6

43.2

46.7

47.0

Ratio of operating profit to net sales

(%)

19.0

22.1

27.2

26.9

ROA

(%)

5.4

7.9

11.0

10.2

ROE

(%)

8.2

11.0

14.7

13.6

Items

Units

21,08325,951

28,278

Capital investment( Millions of yen )

1,377

1,304

2,475

4,296

Depreciation and amortization( Millions of yen )

1,119

1,170

1,305

1,524

R&D expenditure( Millions of yen )

1,146

1,235

1,309

1,404

Note 1: The Company conducted a 3-for-1 common stock split on October 1, 2014. However, net profit/dividend paid/net assets per share are calculated based on the assumption that the stock split was executed at the beginning of FY2012.
Note 2: Depreciation and amortization represents the total depreciation and amortization expense related to property, plant and equipment and intangible assets.

HDS Group’s
Values and Aspirations

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information

HDS REPORT 2023
Financial Data for the Past 11 Years

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

16,202

28,63637,36325,48424,451

34,66145,741

13,86625,70330,446

12,003

12,582

22,42625,786

6,052

13,386

13,821

12,198

11,716

13,686

15,561

7,813

12,316

16,624

(195)

865

8,739

10,224

7,958

11,946

17,185

236

1,366

9,108

10,757

19,732

7,777

11,322(1,095)

662

6,643

7,595

101,999

138,584

142,872

131,848

140,028

143,289

154,336

62,611

108,719

113,277

106,718

110,059

98,856

103,955

15,666

1,938

2,104

6,963

6,328

16,887

22,946(3,569)27,526

16,717

12,607

14,835

3,041(2,133)

54.0

71.7

72.5

73.3

73.5

69.0

67.4

30,06954,33967,80937,48737,03457,087

71,527

7,225

9,233

15,121

10,950

9,555

9,881

10,850(32,522)(8,171)(22,399)(12,537)(1,230)(4,703)(8,663)(25,296)

1,062(7,277)(1,587)

8,324

5,178

2,187

24,64817,493(3,271)

2,362(6,561)(6,663)(1,599)9,668

28,32017,60018,342

19,996

18,767

19,921601.1

1,032.4

1,076.7

1,003.8

1,068.8

1,026.9

1,093.5

215.4

83.9

117.6

(11.4)

6.9

69.0

79.7

20.0

26.0

38.0

20.0

20.0

21.0

28.0

1,831

2,446

3,658

1,925

1,925

2,021

2,661

9.3

31.5

32.3

–

290.6

30.4

35.1

4.0

3.2

3.6

1.9

1.9

2.0

2.6

46.1

47.3

44.9

32.0

34.0

39.3

36.1

26.0

22.7

24.5

(0.5)

2.3

15.3

14.3

26.2

6.5

8.1

(0.8)

0.5

4.7

5.1

42.8

10.1

11.2

(1.1)

0.7

6.6

7.5

4,576

8,757

23,876

7,892

1,959

5,690

9,236

1,774

5,164

5,566

6,826

6,464

7,278

8,520

1,383

2,114

2,476

2,195

2,444

3,012

3,274

64

65

HDS REPORT 2023

HDS Group’s
Values and Aspirations

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies■ Financial Data (FY2022)
Consolidated Balance Sheets
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Customer related assets
Technical assets
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Retired benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Sustainability
Management

Data and Company
Information

Consolidated Statement of Income

Consolidated Statements of Cash Flows(Millions of yen)

(Millions of yen)

(Millions of yen)

As of March 31, 2023

As of March 31, 2023

For the fiscal year ended of March 31, 2023

20,783
7,408
10,165
28
2,014
3,658
6,828
1,307
(19)
52,175

27,102(7,679)19,42341,046(23,709)17,337
9,579(7,735)
1,843
3,329
6,253
(2,100)
4,153
2,766
821
(747)
73
48,926
15,258191
19,4895,205
187
40,332
11,044
89
1,191
439
141
(5)
12,901102,160
154,336

Liabilities
Current liabilities
Notes and accounts payable - trade
Contract liabilities
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on compensation for after-care of products
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Provision for operating officers’ retirement benefits
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3,596
267
2,610
2,569
583
1,046
1,471
351
64
3,906
16,467
17,766
3,836
10,003
12
80
750
1,463
33,91350,3807,100
22,77364,852(4,978)89,747
5,845
8,146
216
14,207
103,955
154,336

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Commission for purchase of treasury sharesInterest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Special extra for retirement payments
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

71,52745,74125,786
15,561
10,224
14
268
275
245
212
1,016
116
166
0
－
144
55
484
10,757
1
－
2
3
－
63
2
501
567
10,194
3,089
(491)
2,598
7,595
－
7,595

Consolidated Statement ofComprehensive Income(Millions of yen)
For the fiscal year ended March 31, 2023

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7,595
(66)
4,392
209
4,536
12,132
12,132－(Millions of yen)

For the fiscal year ended of March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for directors (and other officers)
Increase (decrease) in provision for operating officers’ retirement benefits
Increase (decrease) in provision for bonuses for directors (and other officers)
Increase (decrease) in provision for loss on compensation for after-care of productsInterest income
Dividend income
Interest expenses
Share of loss(profit) of entities accounted for using equity method
Subsidy income
Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Subsidies received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
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 period
Cash and cash equivalents at end of period

10,194
8,520
1,054
(4)
(381)
(478)
(48)
40
(1)
(14)
(268)
166
0
(2)
－
(1)
61
2
(1,636)(2,540)(458)
1,347
15,551283
2(177)(4,967)158
10,850(8,838)2(229)－(1,701)
2,108
(8)
4
0
(8,663)
9,910(7,610)6,000(2,242)(551)(5,000)(2,105)－(1,599)567
1,154
18,767
19,921HDS Group’s
Values and Aspirations

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information

HDS REPORT 2023

■ Global Network
Establishing a global supply network of high-quality product lineups
The HDS Group has production bases in Japan, Germany, the U.S., and South Korea and also
conducts development in Japan, Germany, and the U.S. The Company provides sales andtechnological services in Japan and the Asian region, while the German consolidated subsidiary,Harmonic Drive SE and its eight consolidated subsidiaries are in charge of Europe, Middle East,
Africa, India, and South America. Harmonic Drive L.L.C., the U.S. subsidiary, covers North America.
The Chinese consolidated subsidiary, Harmonic Drive Systems (Shanghai) Co., Ltd., provides sales
and technological services to the Chinese market. The South Korean subsidiary, SAMDICK ADM
CO., LTD., manufactures Precision planetary speed reducers.

Harmonic Drive L.L.C.

Composition of consolidated
net sales by region

Location : Massachusetts, U.S.A.

Harmonic Drive SE

SAMICK ADM CO., LTD.

Location : Hessen, Germany
Business domain : development,
production, and sales of speed
reducers and mechatronics products

Location : Dalseong-gun, Daegu, South Korea
Business domain :manufacture ofPrecision planetary
speed reducers

Business domain : development, production, and sales of
speed reducers and mechatronics products

HD Systems, Inc.
Location : Massachusetts, U.S.A.
Business domain : holding company for the HDS Groupbusiness in the U.S.

(%)

10
21

FY2022

Consolidated
net sales¥71,527million

23Harmonic Drive Systems(Shanghai) Co., Ltd.

Location : Taipei, Taiwan
Business domain : market research and technical support

4

HD Systems, Inc.
Silicon Valley Office
Location : California, U.S.A.
Business domain : research and study ofadvanced technologies

1

Location : Shanghai, China
Business domain : sales of and technicalservices for speed reducers and mechatronics products

Harmonic Drive Systems Inc.
Taiwan Representative Office

15

1

Harmonic Precision Inc.
3 Harmonic Winbel Inc.
4 Ome Iron Casting Co., Ltd.
2

North America
Other

Number of employees(consolidated) by region(persons)

129

Harmonic Drive Systems Inc.
Hotaka Factory and Ariake Factory
Harmonic AD, Inc.
HD Logistics, Inc.

Japan
Europe54

FY2022

Number of employees

377(consolidated)

1,324
Japan
Europe197

North America
Common to
all regions

621

66

67

HDS Group’s
Values and Aspirations

HDS REPORT 2023

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information■ Corporate Overview
Corporate Information (As of March 31, 2023)

Name of consolidated subsidiary

Percentage of voting rights

Location

Business domain

Corporate Name

Harmonic Drive Systems Inc.

HD Logistics, Inc.

100.0%

Azumino-shi, Nagano, Japan

Logistics

Location ofhead office

6-25-3 Minami-Oi, Shinagawa-ku, Tokyo
140-0013, Japan

Harmonic Precision Inc.

100.0%

Matsumoto-shi, Nagano, Japan

Production and processing of cross roller bearings

TEL+81-3-5471-7800

Harmonic AD, Inc.

100.0%

Azumino-shi, Nagano, Japan

Production of Precision planetary speed reducers

Corporate website

https://www.hds.co.jp/english/#1

Founded

October 27, 1970

Listed stock
exchange

Tokyo Stock Exchange (Standard Market)
Securities code: 6324

Business domain

Development, production, and sales of precision speed
reducers and applied mechatronics products (actuators andmotion control equipment)

Harmonic Winbel Inc.

100.0%

Komagane-shi, Nagano, Japan

Development, mass production support, manufacturing and sales ofvarious motors

HD Systems, Inc.*

100.0%

Beverly, Massachusetts, U.S.A.

Investment in Harmonic Drive L.L.C., research and study of speed
reducers and mechatronics products

Harmonic Drive L.L.C.*

100.0%

Beverly, Massachusetts, U.S.A.

Development and production of speed reducers and mechatronics
products, and sales in North America region

Harmonic Drive Systems (Shanghai) Co., Ltd.*

100.0%

Shanghai, China

Sales and technical services of speed reducers and mechatronics
products

Fiscal year end

March

SAMICK ADM CO., LTD.*

Share capital¥7,100,036,369

GK HD Management*

Net sales

Consolidated: ¥71.5 billion
Non-consolidated: ¥50.8 billion

No. of employees

Consolidated: 1,324
Non-consolidated: 490

Group companies

Consolidated subsidiaries: 18, Equity-method affiliates: 1

Major Offices and Factories
Name

51.0%（51.0％）

Harmonic Drive SE and 8 consolidated
subsidiaries*

Head Office

Shinagawa-ku, Tokyo, JapanTokyo Office

Shinagawa-ku, Tokyo, Japan

Kohshin Office

Azumino-shi, Nagano, Japan

Chubu Office

Meito-ku, Nagoya-shi, Aichi, Japan

Kansai Office

Yodogawa-ku, Osaka-shi, Osaka, Japan

Kyushu Office

Hakata-ku, Fukuoka-shi, Fukuoka, Japan

Taiwan Representative Office

Taipei City, Taiwan (R.O.C.)

Hotaka Factory

Azumino-shi, Nagano, Japan

Ariake Factory

Azumino-shi, Nagano, Japan

Matsumoto Factory

Matsumoto-shi, Nagano, Japan

Komagane Factory

Komagane-shi, Nagano, Japan

100.0%

Shinagawa-ku, Tokyo, Japan

Holding company for the purpose of investment in Harmonic Drive SE

100.0%（63.2％）

Limburg a.d. Lahn, Hessen,
Germany

Development and production of speed reducers and mechatronics products,
and sales in Europe, Middle East, Africa, India and South America region

Note 1: Fiscal year ends on December 31 for the consolidated subsidiaries marked with *.
Note 2: Percentage of voting rights ( ) indicates the percentage of indirect ownership.
Note 3: Harmonic Winbel Inc. changed its name from Winbel Co., Ltd. as of April 1, 2023.

Name of equity-method company
Location

Dalseong-gun, Daegu, South Korea Production of Precision planetary speed reducers

Ome Iron Casting Co., Ltd.

Percentage of voting rights
49.2%

Location
Nishitama-gun, Tokyo, Japan

Business domain
Development, production, and sales of high-strength cast-iron products<From the editors>

HDS Report 2023
Editors
Corporate Planning DivisionCorporate Planning &Investor Relations
Secretariat, Sustainability
Committee

K az u h a Yamakaw a

M aki ko O no

A oi A nd oThank you for reading the HDS REPORT
2023. This is the first integrated report for
our Company. The content is designed to
introduce the voices of the frontline in an easy-tounderstand manner, including the management
philosophy, value creation process, top
management message, messages from each
executive in charge, roundtable discussions
among employees as well as among Outside
Directors. We hope that this report will help you
deepen your understanding of the HDS Groupand look forward to the realization of our vision.
We also hope that the report will stimulate our
dialogue with all of our stakeholders.

HDS Group’s
Values and Aspirations

Materiality to Achieve
Aspirations

Sustainability
Supporting Action
Strategies

Sustainability
Management

Data and Company
Information

HDS REPORT 2023

■ Stock Information
Stock Information (As of March 31, 2023)

Stock Price Chart

Total number of shares authorized to be issued

356,400,000 shares

Total number of issued and outstanding shares

96,315,400 shares(Yen)
10,000

9,053

8,000

Number of shareholders
Fiscal year

From April 1 of each year to March 31 of the following year

Ordinary General Meeting of Shareholders

Held in June every year

Record date

March 31

Interim dividend

September 30

Transfer agent
Special account manager

1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8241 Japan
Mizuho Trust & Banking Co., Ltd.

Handling office

1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8241 Japan
Stock Transfer Agency Department, Head Office,Mizuho Trust & Banking Co., Ltd.

SSBTC CLIENT OMNIBUS ACCOUNT

6,436

6.8

The Master Trust Bank of Japan, Ltd. (Trust Account)

4,576

4.8

Toyota Motor Corporation

4,379

4.6

Norimitsu Ito

3,041

3.2

Custody Bank of Japan, Ltd. (Trust Account)

2,970

3.1

Control trust (A030) trustee SMBC Trust Bank Ltd.

2,176

2.3

The Nomura Trust and Banking Co., Ltd. (Trust Account)

2,000

2.1

J.P.MORGAN BANK LUXEMBOURG S.A. 381572

1,786

1.9

STATE STREET BANK WEST CLIENT-TREATY 505234

1,223

Total

62,080KODEN Holdings Co., Ltd.

0.0
19.1

62.7

End of FY2018

0(Thousand shares)
25,00020,00015,000

52.9

0.4

7.8
10.0
End of FY2019

15.1

7.7
End of FY2020

0March 2014 March 2015 March 2016

March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 March 2023

Comparison of Stock Performance (TSR: Total Shareholder Return, %)Investment period

1 year

3 years

5 years

10 years(March 31, 2022 March 31, 2023)(March 31, 2020 March 31, 2023)(March 31, 2018 March 31, 2023)(March 31, 2013 March 31, 2023)

-5.5

-26.0

718.3

5.8

53.4

31.8

142.1

1.3

TOPIX Sector Indices

8.6

67.1

29.3

152.6

65.2

Note: The table above shows the cumulative return on investment including dividends as of March 31, 2023, if investments were made1, 3, 5, and 10 years ago.

Stock price at end of term (Yen)

31.1

52.9
0.3

5,000

1.3

0.0
26.2

40

0

500

0

4.8

0.6

11.5
8.8
End of FY2021

14.8

7.8
End of FY2022

FY2020

FY2021

FY2022

4,725

7,480

4,220

4,395

3.5

4.7

7.0

4.1

4.0

11.2

-1.1

0.7

6.6

7.5

PER (Times)

32.2-415.2

1,087.2

61.1

55.2

Financial institutions

Dividend yield (%)

1.0

0.4

0.3

0.5

0.6

Individuals/otherMarket capitalization at end of period (Billions of yen)

365.0

455.1

720.4

406.5

423.3

Japanese corporations
1.6

FY20193,790

PBR (Times)

Foreign investors

43.4

FY2018ROE (Times)

Treasury stock

0.4

1,000

Stock Price Valuation

0.0
24.0

80

7.8
13.5

1,500

TOPIX

Percentage of Shares Held by Type of Shareholder

20

2,500

Harmonic Drive Systems Inc.

Note: The shareholding ratios noted above are calculated excluding treasury stock.

62.8

3,000

6,000

10,000Shareholding
ratio (%)
35.2

60

3,500

TOPIX (right axis)

2,000

No. of shares
held (thousand)
33,490

0.0

HDSI

2,000

Name of shareholder

15.5(Point)
4,000

4,000

Status of Major Shareholders

(%)
100

Share price/volume and TOPIX for the past 10 years

Securities companies

68