Financial Results for the Fiscal Year
Ended March 31, 2023
May 19, 2023

This presentation contains forward-looking statements relating to expected
future performance as of May 19, 2023. Such statements are based on theviews and assumptions of company management and involve risks anduncertainties such as changes in the business environment that may cause
the actual results to differ materially from expectations.

Copyright © 2023 Harmonic Drive Systems Inc.

Performance Summary
for FY 2023/3

1
Copyright © 2023 Harmonic Drive Systems Inc.

Consolidated results for FY 2023/3 (versus original forecasts)(millions of yen)

Forecast(announced Feb 8, 2023)
AmountVs. original forecasts

FY 2023/3 (actual)

Percent (%)

AmountPercent (%)

ChangeRate (%)

Net sales

71,000100.071,527

100.0

527

0.7

Operatingincome

9,800

13.8

10,224

14.3

424

4.3

Ordinary
income10,10014.2

10,757

15.0

657

6.5

Net income

6,700

9.4

7,595

10.6

895

13.4

EPS (yen)

70.28

－

79.67

－

9.40

13.4

*Net income refers to net income attributable to owners of parent.

2
Copyright © 2023 Harmonic Drive Systems Inc.

Consolidated results for FY 2023/3 (year-on-year change)(millions of yen)

FY2022/3
AmountFY 2023/3

Percent (%)

AmountYear-on-year change

Percent (%)

ChangeRate (%)

57,087100.0

71,527100.0

14,439

25.3

8,739

15.3

10,224

14.3

1,485

17.0

9,108

16.0

10,757

15.0

1,649

18.1

Net income

6,643

11.6

7,595

10.6

952

14.3

EPS (yen)

69.02

－

79.67

－

10.66

15.4

5,690

－

9,236

－

3,545

62.3

8,254

－

9,574

－

1,320

16.0

3,012

－

3,274

－

261

8.7

Net sales
OperatingincomeOrdinary
incomeCapitalinvestment
Depreciation
costs
R&D costs*Net income refers to net income attributable to owners of parent.
*Depreciation costs include depreciation cost of tangible assets and amortization cost of intangible assets and goodwill.

3
Copyright © 2023 Harmonic Drive Systems Inc.

Performance of main group companies in FY 2023/3(millions of yen)

Equitystake

Net sales
Amount

Net income

Year-on-yearchange (%)

AmountYear-on-yearchange (%)－

50,883

23.7

8,927

6.8

HD Systems, Inc.
(Harmonic Drive L.L.C.)(U.S.A)100%（100%）

10,877

63.3

1,431

87.7

Harmonic AD, Inc.

100%

2,314

▲16.3

92

▲74.8

*3

Harmonic Drive Systems(Shanghai) Co., Ltd.

100%

4,862

20.4

354

33.5

*4

Harmonic Drive SE(Germany)

100%

15,965

20.1

2,106

37.5

Harmonic Drive Systems Inc.
*2

*1 For overseas subsidiaries, the fiscal year ends December 31.
*2 Exchange rates: FY 21/12 1USD = 109.80 yen, FY 22/12 1USD = 131.43 yen*3 Exchange rates: FY 21/12 1CNY = 17.03 yen, FY 22/12 1CNY = 19.48 yen*4 Exchange rates: FY 21/12 1EUR = 129.89 yen, FY 22/12 1EUR = 138.04 yen

4Copyright © 2023 Harmonic Drive Systems Inc.

Non-consolidated results for FY 2023/3(year-on-year change)(millions of yen)

FY 2022/3
AmountFY 2023/3

Percent (%)

AmountYear-on-year change

Percent (%)

ChangeRate (%)

41,120100.050,883

100.0

9,763

23.7

8,358

20.3

8,927

17.5

569

6.8

8,702

21.2

9,378

18.4

676

7.8

Net income

6,545

15.9

6,880

13.5

334

5.1

EPS (yen)

68.00

－

72.17

－

4.17

6.1

Net sales
OperatingincomeOrdinary
incomeCapitalinvestment
Depreciation
costs

4,589

－

7,557

－

2,968

64.7

3,502

－

4,408

－

905

25.8

R&D costs

2,251

－

2,430

－

179

8.0
5

Copyright © 2023 Harmonic Drive Systems Inc.

Non-consolidated net sales by application (half-yearly)(millions of yen)

24,361

25,00022,50020,00019,02517,5001,909

14,222

15,00012,50010,041

10,000

1,390
659

487
618

5,000

2,452

2,190

1,716

1,044

2,341
1,053
1,297

930
1,186

866
1,188

2,450

723
1,012

675
702

1,268
321

7,500

1,611

22,094

26,522

11,657

12,777

12,427

9,584
8,070

5,040

467

663

672

730

394

1,616

2,804

3,348

3,990

4,891

2nd half

FY 22/3 1st half

2nd half

FY 23/3 1st half

2nd half

Semiconductor Equipment

Flat Panel Display Equipment

Robotics

Gear box Motor Manufactures

Machine Tools

Printing Machine

Optical Devices

Transporter

Measuring Machines

Excavation System for the Oil

Medical Equipment

Aerospaces

VehicleOthers

2,500
0

376

1,161
FY 21/3 1st half

6
Copyright © 2023 Harmonic Drive Systems Inc.

Non-consolidated bookings by application (quarterly)(millions of yen)

21,51522,5001,790

20,00018,357

1,222

17,500

1,108
831

665

15,000959

19,208
1,679
458
757

12,50011,80810,0007,500

10,8401,552
712

10,744

630

6,729

5,000

9,535
992
863

7,175

726

932
1,129

3,860

2,500
2,640
0

13,072

21_1Q

Semiconductor Equipment
Printing Machine
Medical Equipment

3,689

3,623

646
1,100
256

633

2,272
1,943

2,048

1,222

21_3Q

21_4Q

22_1Q

22_2Q

Flat Panel Display Equipment
Optical Devices
Aerospaces

Robotics
Transporter
Vehicle

21_2Q

5,123

1,116

502
1,335
225

22_3Q

22_4Q

914

Gear box Motor Manufactures
Measuring Machines
Others

4,020
846
453

Machine Tools
Excavation System for the Oil

7

Copyright © 2023 Harmonic Drive Systems Inc.

Factors in year-on-year change in non-consolidated operating income (FY 2023/3)(millions of yen)

Higher income+5,430

8,358

Lower
marginal profit
ratio, etc.

▲1,649Higher fixedmanufacturin
g costs, etc.

▲2,717FY 2022/3

8,927
Higher SG&A
costs

▲495

FY 2023/3

8
Copyright © 2023 Harmonic Drive Systems Inc.

Factors in year-on-year change in consolidated operating income (FY 2023/3)
Higher income(millions of yen)

8,739

+6,823

Impact of
Exchange rates

Lower
marginal profit
ratio, etc.

+955

▲1,399Higher fixedmanufacturin
Higher SG&A
g costs, etc.
costs

▲3,765FY 2022/3

10,224▲1,129FY 2023/3

9
Copyright © 2023 Harmonic Drive Systems Inc.

Status of consolidated assets(millions of yen)

180,000
160,000
140,000
120,000
100,000
80,000143,289
19,92815,584
9,404
954

154,336
20,812

Cash & bank deposits andsecurities

17,573

Trade receivables

12,501Inventories

1,287

Other current assets

43,96748,92640,43540,332Intangible fixed assets

13,013

12,901

Investments and otherassets

FY2022/3

FY2023/3

Tangible fixed assets

60,00040,00020,0000

10

Copyright © 2023 Harmonic Drive Systems Inc.

Status of consolidated liabilities and net assets(millions of yen)

180,000
160,000
140,000
120,000
100,000

154,336

143,289

3,596

3,856

8,000

16,887

15,6887,691

Trades payable
Other current liabilities

22,946Long- and short-term borrowings

16,146

Other fixed liabilities

80,00060,00040,00098,856Equity ratio
69.0%

20,0000103,955

FY2022/3

Owned capital

Equity ratio
67.4%

FY2023/3

11
Copyright © 2023 Harmonic Drive Systems Inc.

Status of consolidated cash flows(millions of yen)

FY 2022/3

FY 2023/3

Cash flow from operating activities

9,881

10,850Cash flow from investing activities▲4,703▲8,663

Cash flow from financing activities▲6,663▲1,599256

567

Net increase (decrease) in cash and cash equivalents▲1,229

1,154

Cash and cash equivalents at end of year

18,767

19,921

Effect of exchange rate changes on cash and cash equivalents

12
Copyright © 2023 Harmonic Drive Systems Inc.

Performance Forecasts
for 1st-quarter FY 2024/3

13
Copyright © 2023 Harmonic Drive Systems Inc.

Consolidated performance forecasts for 1st-quarter FY 2024/3(millions of yen)

1st-quarter
FY 2024/3 (forecasts)

1st-quarter
FY 2023/3
AmountPercent (%)

AmountQuarter-on-quarter change

Percent (%)

ChangeRate (%)

Net sales

15,692100.0

14,700

100.0

▲992

▲6.3

Operatingincome

2,126

13.6

800

5.4

▲1,326▲62.4

Ordinary
income

2,297

14.6

700

4.8

▲1,597▲69.5

Net income

1,204

7.7

450

3.1

▲754

▲62.6

EPS (yen)

12.55

－

4.73

－

▲7.81

▲62.3

* Assumed exchange rate for 1st –quarter FY 24/3 forecasts 1USD ＝ ¥127.00*Net income refers to net income attributable to owners of parent.

1EUR ＝ ¥135.00

1CNY ＝ ¥19.00

14
Copyright © 2023 Harmonic Drive Systems Inc.

Consolidated CAPEX and R&D Expenses FY 2024/3(millions of yen)

FY 2024/3(forecasts)

FY 2023/3

AmountPercent (%)

AmountYear-on-year change

Percent (%)

ChangeRate (%)

Capitalinvestment

9,236

－

7,300

－

▲1,936▲21.0

Depreciation
costs

9,574

－

9,600

－

25

0.3

R&D costs

3,274

－

3,500

－

225

6.9

* Assumed exchange rate for 1st –quarter FY 24/3 forecasts 1USD ＝ ¥127.00 1EUR ＝ ¥135.00 1CNY ＝ ¥19.00*Depreciation costs include depreciation cost of tangible assets and amortization cost of intangible assets and goodwill.

15
Copyright © 2023 Harmonic Drive Systems Inc.

Non-consolidated performance forecasts for 1st-quarter FY 2024/3(millions of yen)

1st-quarter
FY 2024/3 (forecasts)

1st-quarter
FY 2023/3
AmountPercent (%)

AmountQuarter-on-quarter change

Percent (%)

ChangeRate (%)

Net sales

11,608

100.0

8,000

100.0

▲3,608▲31.1

Operatingincome

2,108

18.2

200

2.5

▲1,908▲90.5

Ordinary
income

2,425

20.9

2,350

29.4

▲75

▲3.1

Net income

1,359

11.7

2,300

28.8

940

69.1

EPS (yen)

14.17

－

24.19

－

10.03

70.8

* Assumed exchange rate for 1st –quarter FY 24/3 forecasts 1USD ＝ ¥127.00

1EUR ＝ ¥135.00

1CNY ＝ ¥19.00

16
Copyright © 2023 Harmonic Drive Systems Inc.

Non-consolidated CAPEX and R&D Expenses FY 2024/3(millions of yen)

FY 2024/3(forecasts)

FY 2023/3
AmountPercent (%)

AmountYear-on-year change

Percent (%)

ChangeRate (%)

Capitalinvestment

7,557

－

4,800

－

▲2,757▲36.5

Depreciation
costs

4,408

－

4,700

－

291

6.6

R&D costs

2,430

－

2,500

－

69

2.9

* Assumed exchange rate for 1st –quarter FY 24/3 forecasts 1USD ＝ ¥127.00 1EUR ＝ ¥135.00 1CNY ＝ ¥19.00*Depreciation costs include depreciation cost of tangible assets and amortization cost of intangible assets and goodwill.

17
Copyright © 2023 Harmonic Drive Systems Inc.

Consolidated net sales & operating income (quarterly)
Net sales(millions of yen)
20,00015,00010,000

9,318

8,384

8,943

1Q

2Q

3Q

10,387

11,901

14,43915,215

15,531

15,692

2Q

3Q

4Q

1Q

17,75919,90918,166

14,700

5,000
0

4Q

1Q

FY 2021/3

FY 2022/3

3Q

4Q

FY 2023/3

1Q

FY 2024/3(forecasts)

Operating income(millions of yen)
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000

2Q

2,986
150

▲363

129

1Q

2Q

3Q

FY 2021/3

949
4Q

1,784

1Q

1,742

2Q

2,226

2,126

2,514

3,425
2,158
800

3Q

FY 2022/3

4Q

1Q

2Q

3Q

FY 2023/3

4Q

1Q

FY 2024/3(forecasts)

18
Copyright © 2023 Harmonic Drive Systems Inc.

Future Outlook

19
Copyright © 2023 Harmonic Drive Systems Inc.

1. Our operating environment

20
Copyright © 2023 Harmonic Drive Systems Inc.

1-1. Demand for HDSI’s products■Decline in domestic orders: Inventory adjustment due to advance orders placed in FY 2022/03■Difficult to forecast when inventory held by distributors and customers will be exhausted

Consolidated order trend(millions of yen)
30,000Asia

25,000Europe15,00010,000
5,000
0

Asia

North America
2,572
3,303

20,000

1,478
3,016
3,181

746
2,202
2,629

1,242
2,398
4,268

2019/1Q

2019/2Q

2019/3Q

1,509
2,446

1,854
3,065

4,913

4,861

1,049
1,997
4,574

2019/4Q

2020/1Q

2020/2Q

1,093
1,894
6,797
2020/3Q

1,309
2,746

FY 2023/03

2,551
3,915

4,064
4,658

4,408
17,046

18,601

18,008

10,3862020/4Q

4,110

2021/1Q

2021/2Q

2021/3Q

11,5872021/4Q

3,566
4,266

2,870
5,507

3,537
4,523

2,856
3,714

8,393

6,630

5,117

4,781

2022/1Q

2022/2Q

2022/3Q

2022/4Q

Demand for small 3C-oriented robots has decreased due to a slowdown in the Chinese market, though signs ofpartial recovery are becoming visible

Europe The effects of the Ukraine conflict have been minimal, and as capital investments have continued, demand has
remained consistently stable

North
America Order intake for sectors such as semiconductors, medical, and amusement have shown robust trends

21
Copyright © 2023 Harmonic Drive Systems Inc.

2.Trends in Main Fields of Application

22
Copyright © 2023 Harmonic Drive Systems Inc.

2-1. Factory automation robot market forecast
Labor
shortages

Automation demand

Post-COVID
new normal

Marketexpansion

Labor-saving demand

Annual installations of industrial robots 2016 -2021 and 2022* - 2025*
700
600‘000 of units

500

517

400
300
200

+7%/on average per year Growth rates of industrial robots : Annual rate of 7%
 Growth rate of small robots exceeds that of industrial robots

400

423

391

570

304

2016

690

394
Growth rate ofsmall robots

100
0

614

653

2017

2018

2019

2020

2021

2022*

2023*

2024*

2025*

Source: compiled by the Company based on IFR World Robotics 2022

23
Copyright © 2023 Harmonic Drive Systems Inc.

2-2. Collaborative robot market forecast
Resolve labor shortages
Enhance corporate
competitiveness

Orientation towards
autonomy through AI
development■Labor management strategies: Application

150

100
‘000 of units

expected even for tasks that can be completed
by a single individual■Through the utilization of AI, operations will
become simpler, even for beginners■Production nationalism: A shift away fromreliance on China

Automation
Labor-saving

Collaborative robot global market size(forecast)
142+26%/ on average per
year

117
91

50

44
0
(year)
Courtesy of NEURA Robotics GmbH

Market expansion

2021

56

2022*

71

2023*

2024*

2025*

2026*

Note: Figures for 2022 are estimates, figures for 2023 and beyond are forecasts, based on the number of units shipped by manufacturers
Source: Compiled by the Company based on "Survey on the Global Market for Collaborative Robots (2023)" published by Yano Research Institute Ltd. on March 01,
2023

24
Copyright © 2023 Harmonic Drive Systems Inc.

2-3. Anticipating growing demand for humanoid robots
 Full-fledged industrial applications-Tesla has unveiled its “Optimus” robot-Saudi Arabia plans to deploy humanoid robots
in its Smart City Project Relentless pursuit for superior human motion
 Difference from co-bots：‟Humanoid Hand”
 Despite the high technical and cost barriers,
the ultra-compact speed reducers, which are
our strength, are indispensable for humanoid
robots

Source : The Goldman Sachs Group, Inc. “Global Automation_ The investment case for humanoid robots”

25
Copyright © 2023 Harmonic Drive Systems Inc.

2-4. Semiconductor equipment and Automotive
Semiconductor equipment

 Although demand is slowing, we are closely monitoring the timeframe for rebound in anticipation oflarge-scale investments over the medium to long term
 As long as technological advancement continues, semiconductor demand will grow US-China conflict

Various governments are backing their own semiconductor industries-US: Provides production and developmental aid via the CHIPS and Science Act-Japan: Semiconductor factories to be constructed in Hokkaido and Kumamoto-China: Pursuing a policy of domestic semiconductor production

Automotive: Used in variable compression ratio (VCR) engines Semiconductor shortages are keeping production volume flat Achieved improvements in ease of installation, fuel economy, and quietness at high speeds
 This will become the center of Nissan's next-generation engines
 Also used for e-POWER in exclusive power generator engines

Courtesy of
Nissan Motor Co., Ltd.

26
Copyright © 2023 Harmonic Drive Systems Inc.

2-5. Medical and health care
Surgical robots
 Top medical equipment manufacturers from Japan, the US, and Europe have entered themarket➡With the broadening of therapeutic areas, the market is anticipated to expand further➡Advancements in communication speeds (from 5G to 6G) are expected to facilitate remotesurgeries The major manufacturers of surgical robots in Japan, the US, and Europe, being rise tooligopoly by our products

Other potential healthcare applications
Medical equipment

・ Specimen analysis/test equipment/PCR test applications

Exoskeleton

・ Moving into a phase of practical adoption withexpanded insurance coverage and subsidies

Electric wheelchairs

・Autonomous driving enhances convenience27
Copyright © 2023 Harmonic Drive Systems Inc.

3. New Applications

28
Copyright © 2023 Harmonic Drive Systems Inc.

3-1. Robots for Infrastructure Inspection
Float Arm: A snake-like robot arm designed for infrastructure inspection(Hibot Corporation）
 Multi-articulated robot arm, enabling maintenanceand inspection in confined or elevated spaces
without the need for scaffolding, such as inpetrochemical plants
 Companies like BASF and Mitsui Chemicals have
implemented Float Arm in their operations
 Members of the DeepStar®* consortium have also
opted for its adoption
 The reasons for selecting HarmonicDrive® include:-Reliable performance even in harsh environments-Broad operational range (5 meters) while maintaining
a lightweight design (35kg)*DeepStar® is an international offshore technology development consortium comprising “upstream” companies including Chevron (US), ExxonMobil(US), Shell (UK), and Petrobras (Brazil) that are engaged in the exploration, development, and production of offshore oil and natural gas around theworld, and companies, universities, research institutes, and other organizations that provide products and services to these upstream companies.

Photo credit: Hibot Corporation

29
Copyright © 2023 Harmonic Drive Systems Inc.

3-2. Aviation and Space
3-2-1.eVTOL (Electric Vertical Take-Off and Landing aircraft）
 Multiple our products are used in critical systems ofeVTOL
 “EXPO 2025 OSAKA, KANSAI, JAPAN” is set to kick off
the experimental commercial operations of eVTOL
 eVTOLs are anticipated to become increasingly
common as an eco-friendly method of shortdistance travel What about large aircraft?

30
Copyright © 2023 Harmonic Drive Systems Inc.

3-2-2. Space: Lunar Exploration with Manned, Pressurized Rover
Joined research to develop a steering unit as part of the Manned Pressurized Rover joint research project(FY2019–2021) led by the Japan Aerospace Exploration Agency (JAXA) and Toyota Motor Corporation

Source: JAXA, Toyo Motor Corporation

31

Copyright © 2023 Harmonic Drive Systems Inc.

3-2-3. Marketing and Public Awareness Activities
Exhibited at the concurrent exhibition of the Japan Society
for Aeronautical and Space Sciences (one of the largest in Japan)

Exhibited at the 2023 International Space Industry Exhibition(Held from February 1-3 at Tokyo Big Sight)

 66th Space Sciences and Technology Conference(Held from November 1-4 at Kumamoto Castle Hall)
 Presented our proven record of product adoption andcorresponding technologies
 The event was attended by 63 individuals, including
researchers and developers from various universities andcorporations

 Showcased our proven track record in the space-related market
 Delivered a presentation themed “Exploring the Current Stateand Future Prospects of Tribology in Wave Gear Systems
Designed for Space" (with 49 attendees) A total of 220 people visited our booth

Concurrent exhibition

Photo of lecture

32
Copyright © 2023 Harmonic Drive Systems Inc.

4. Progress of Mid-term Management Plan
(FY 2021 ～ FY 2023)

33
Copyright © 2023 Harmonic Drive Systems Inc.

4-1. Mission, Long-term vision and Basic policies of Mid-term management plan

MissionContributing to the Innovation in our Industry and Society with our Motion Control Technology-In pursuit of Total Motion Control-

Long-term vision
Take on the challenge of developing newtechnologies and skills that capture changes
in the environment
Basic policies of Mid-term management plan

Achieve QCDS that goes beyond
customer expectations

Contribute to creating asustainable society throughcorporate activities-Toward the Next 50 Years: Moving to a Solid Growth StageAchieve QCDS that meets customer expectations

Expand RD, AD, and MT
businesses by developing
valuable products andenhancing services
Management
Principles

Build a businessfoundation that meets thedemands of the times

Respect for the Individual

Strengthen coordination andmaximize synergies withoverseas group companies andinstitutions

Coexistence and Co-prosperity

Contribution to Society

Create new standards thatdefine the next 50 years
through outside-the-box
thinking
A Meaningful Company

34
Copyright © 2023 Harmonic Drive Systems Inc.

4-2. Opportunities for Long-term Growth The shrinking labor force contributes to a sustained demand forindustrial robots

External
environment(growthopportunities)

 Growing consciousness of economic security globally propels theestablishment of semiconductor supply chains, reflected inincreased investment in semiconductor equipment
 Efforts towards carbon neutrality are reshaping strategic
initiatives, including the manufacture of eco-friendly products Application areas are expanding : medical, space, e-VTOL,
amusement, humanoid robots, and beyond
35
Copyright © 2023 Harmonic Drive Systems Inc.

4-3. Increasing production capacity and enhanced productivity at Ariake Plant
 Completed investment to expand production capacity at Ariake Plant:
total investment of 6.5 billion yen
 Promoting DX within the plant

Introductionof AGV

Increased production capacity

Increased productivity

Additional 70,000 units

Improve automation and save labor(more than doubled the productivity per
employee from the previous line)(Industrial: 40.000 units; Automotive: 30,000 units)

36

Copyright © 2023 Harmonic Drive Systems Inc.

4-4. Increasing Production Capacity (Units Produced Per Month)Mar. 2018

Mid-term Management Plan (FY03/19 - FY03/21)

Mar. 2022

Sep. 2022

Mar. 2023

90,00090,00090,00040,00060,00040,00030,00060,00090,00027,00027,00027,000

8,000

8,000

8,000

【Japan】
Head office

Hotoka Plant

56,000
New Plant

Ariake Plant

Automotive

10,000Total fortwo Plants:
130,000【Germany】
Harmonic Drive SE
Limburg Plant

10,000【US】
Harmonic Drive LLC
Peabody Plant

Beverly Plant

3,000

Total: 79,000

3,000台5,500台Total(excl. automotive): 125,000

165,000

32.0%UP

Total

255,000

37.8%UP: 185,00037

Copyright © 2023 Harmonic Drive Systems Inc.

4-5. QCDS Enhancement through Factory Digitalization
NEXT
In progress

Step forward

Implemented

Scheduler
Step 1: Establish aplanning framework
A
C

P
D

・Schedule all processes
down to the second

Step3: Enhance decisionmaking efficiency

MES

Step 2: Build a foundation
for tracking record

A
C

P
D

A
C

Analysis programP
D・Visualize production
process
・Strengthen traceability

・Detect bottlenecks
・Speed up decision making
for improvementsTime
38
Copyright © 2023 Harmonic Drive Systems Inc.

4-6. Developing Valuable Products and Services
RSF-5B-IDT Supermini Actuator (Developed by Harmonic Drive LLC)
 This ultra-compact actuator utilizes size 5 and integrates a servo driver, eliminating
the need for an external driver Its streamlined, compact design combines several cables into one It has been implemented in diverse settings, ranging from amusement tosemiconductor manufacturing equipment

39
Copyright © 2023 Harmonic Drive Systems Inc.

4-7. The Next 50 Years: Innovative Thinking Inspired by Our Unique Worldview
Social demands

Enhancing our value Growing environmental awareness Automation and labor efficiency
 Progress in technology
 Creation of new value

 Contribution to the environmentーAdvancements in energy efficiency andreduction in energy use
 Contribution to technological innovations
 Promotion of industrial growth and a prosperous
society

Actively engaging with external insights
 Create new value in the field of industrial

robots Deepen our joint research with SRI
 Integrate knowledge from diverse industries
 Cultivate strategic partnerships

Embracing new challenges unbound byprior knowledge Improve efficiency characteristics(solid lubrication, minimal lubrication)
 Explore new materials and techniques Validate the feasibility of mass-producing
extremely small sizes
 Ensure local consumption of locally produced
items

40
Copyright © 2023 Harmonic Drive Systems Inc.

4-8. Our path to sustainability
1970

1980

1990

2000

2010

Strengthening Our Commitment to ESG

2020

2050
・Implemented PaperLab

Establishment

・ Construction of ・Accelerated shift towards
paperless operations throughenergy-saving
digitization
factories
・Introduced carbon-free electricity
・ Solar panels
・ Adoption of LED lighting
in factories
・Installation of energy-saving
・Obtained ISO 14001 certification
air-conditioning
・Signed partnership agreement
・Decided on basic policy forwith DOYA
・Age of“Green Factories”
・65
・70
retirement:
years
years
・IIDA-KAN museum opens
60 years oldoldold・StartedHarmonic
LectureSeries・ Equal pay system for direct
and indirect employees
・Started International Symposium・ Internal Control System established・Started Harmonic Concert Series
・IPO
・ Full implementation of・Obtained ISO 9001 ・ Introduction of outside director system
・ Introduction of executive officer system
two days off per week
certification
・Established an Audit & ・ Introduction of Board of Directors
・Started quality-oriented
・Formulated a Sustainability Basic Policy
advisory committee system
Supervisory Board
management

Charter of Corporate Behavior
Management Philosophy

41
Copyright © 2023 Harmonic Drive Systems Inc.

4-9. Activities borne from strong employee awarenessAchievements in FY 2022 Aligning with ESG & SDGs
(from April 1, 2022)
Ariake Plant: Complete transition to CO2-free electricity generated by using
water from Azumino City

[Lecture Appearances] Conducted lectures at Kawagoe
Girls' High School, National Institute of Technology,
Oyama College, and National Institute of Technology, Nagano College[Implementing PaperLab] Contributing to the SDGs byrecycling used paper within our company to produce new paper

42
Copyright © 2023 Harmonic Drive Systems Inc.

Topics in FY 2022
April: Introduced CO2-free power at Ariake Plant
June: Harmonic Drive SE obtained the ISO50001 certification
October: CSF-ULW won the Good Design Award
October: Won the Grand Prize at the Monodukuri Grand Prize
Nagano 2022
January: Hold the 37th Harmonic Concert(in Azumino City, Nagano Prefecture)
March: Donated 10 million yen in aid in response to a major
earthquake that originated in the southeastern part of Turkey

Copyright © 2023 Harmonic Drive Systems Inc.

43