August 21, 2017

Notice regarding Revisions to Business Forecasts.
Based on recent business trend, STAR MICRONICS CO., LTD. has revised its business forecasts announced onApril 12, 2017 as follows.

1. Revision of Consolidated Business Forecasts for the First Half of Fiscal 2018
(March 1, 2017 to August 31, 2017)
Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable toOwners of Parent

Net Income
Per Share(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

Previous Forecasts: A

24,200

1,680

1,780

1,300

34.86

Revised Forecasts: B

27,8502,230

2,5401,840

49.37

Change: B-A

3,650

550760540

Change: B vs. A (%)

15.1

32.7

42.7

41.5

(Reference) FY2017
Second-quarter

22,979

1,806

1,483

1,060

26.26

2. Revision of Consolidated Business Forecasts for Full-year Fiscal 2018
(March 1, 2017 to February 28, 2018)
Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable toOwners of Parent

Net Income
Per Share(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

Previous Forecasts: A

51,200

4,600

4,800

3,700

99.22

Revised Forecasts: B

56,500

5,100

5,500

4,100

110.36Change: B-A

5,300

500

700

400

Change: B vs. A (%)

10.4

10.9

14.6

10.8

(Reference) FY2017

48,937

3,606

3,583

3,181

81.77

3. Reasons
Looking at consolidated results in the first half, the six-month period from March 1, 2017 to August 31, 2017,of fiscal 2018, the fiscal year ending February 28, 2018, net sales increased on the back of robust trends inorders for automotive-related machine tools in such countries and regions as China and Europe. In addition tothe increase in net sales, profits were also favorably impacted by movements in foreign currency exchange
rates and the weak yen. Accounting for each of these factors, results came in above initial forecasts.
Turning to consolidated results for the full fiscal year, growth in products for sale in the U.S. market in theSpecial Products segment and components for hard disk drives (HDDs) in the Precision Products segment is
not expected to reach the initially projected levels. On a positive note, this shortfall is anticipated to be morethan offset by strong order trends in the Machine Tools segment. On this basis, net sales and profits are bothprojected to surpass the levels forecast at the beginning of the period.
These projections assume a foreign exchange rate of ¥110 to US$1, and ¥120 to 1 euro for the third and fourth
quarters of fiscal 2018.
*Figures less than one million yen are rounded down. The above forecasts are based on information available
to management at the time of release. Investors are warned that a number of uncertainties may cause actual
results to differ materially from forecasts.
*The business forecast for net income per share takes into account the impact of the repurchase of sharesbased on the resolution of the Board of Directors at a meeting held on August 21, 2017.

（Supplemental Information）
Consolidated Forecasts（By Segment）(Millions of yen)First Half of Fiscal 2018
Full-year Fiscal 2018
Previous
RevisedChangePrevious
RevisedChangeForecasts Forecasts Amount
Forecasts Forecasts Amount(%)(%)
SpecialNet Sales
5,790
5,730
(60)
(1.0)
12,24011,720(520)(4.2)
Products
Operating Income
700
720
20
2.9
1,720
1,540(180) (10.5)
Income Ratio (%)
12.1
12.6
14.1
13.1
MachineNet Sales
16,34020,0203,680
22.5
34,40040,530
6,130
17.8
Tools
Operating Income2,080
2,880
800
38.5
4,800
6,020
1,220
25.4
Income Ratio (%)
12.7
14.4
14.0
14.9
Precision
Net Sales
2,070
2,100
30
1.4
4,500
4,250(250)(5.6)
Products
Operating Income
160130(30) (18.8)
470
290(180) (38.3)
Income Ratio (%)
7.7
6.2
10.4
6.8
Cloud
Net Sales
60(60)
Services
Operating Income
(130)
(140)
(10)(100)(220)(120)
Income Ratio (%)
Eliminations or Corporate(1,130)(1,360)(230)(2,290)(2,530)(240)
Consolidated Net Sales
24,20027,8503,650
15.1
51,20056,5005,300
10.4
Operating Income
1,680
2,230
550
32.7
4,600
5,100500
10.9
Income Ratio (%)
6.9
8.0
9.0
9.0
*Cloud Services is included in Special Products in consolidated earnings report and other disclosure information.