FURUKAWA CO., LTD.
Financial Results Briefing for the Second Quarter Ended September 30, 2023,
Business Briefing
November 27, 2023

[Number of Speakers]

4
Minoru Nakatogawa
Koichiro Konno

Masaki Yamaguchi
Ryohei Akutagawa

President & Representative Director
Director & Senior Executive Officer,
Corporate planning Department,
General Manager
President & Representative Director,
Furukawa Rock Drill Co., Ltd.
Corporate Planning Department, Manager,
Public & Investor Relations Section

Presentation
Akutagawa: First, President Nakatogawa will explain the Q2 financial results and the full-year forecast, andthen Mr. Yamaguchi, President of Furukawa Rock Drill, will explain the business of the rock drill machinery
segment.
Nakatogawa: I am Nakatogawa, President of FURUKAWA. Thank you for taking time out of your busy
schedules today to join our financial results and business briefing.
Since our founding in 1875, we have undergone major transformations, and today our core business is
machinery and materials. We are working to enhance our investor relations to better inform our investors.
This briefing is streamed live online. Thank you very much for your cooperation.

Here is a summary of the financial results for the second quarter of the fiscal year ending March 2024 and theforecast for the fiscal year ending March 2024.
As for YoY changes for the second quarter of the fiscal year ending March 2024, net sales decreased by JPY9.7
billion to JPY94.7 billion, operating profit increased by JPY1.2 billion to JPY4.5 billion, ordinary profit increasedby JPY0.8 billion to JPY6 billion, and net profit attributable to owners of parent increased by JPY9.4 billion to
JPY12.9 billion.
The financial situation is as shown here. The forecast for the fiscal year ending March 2024 has been revised
from the forecast announced on May 29.
As for YoY changes, we forecast net sales of JPY190 billion, or down JPY24.1 billion, operating profit of JPY9.7
billion, or up JPY0.6 billion, ordinary profit of JPY10.5 billion, or up JPY1.1 billion, and net profit attributableto owners of parent of JPY16.5 billion, or up JPY10.2 billion.

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Next is the income statement.
Net sales and operating profit will be explained in detail by segment later. Ordinary profit increased by JPY0.8
billion. While there was a decrease of JPY1 billion in foreign exchange gains, equity in earnings of affiliates
improved from an increase of JPY1.2 billion in operating profit.
As you can see, we recorded extraordinary losses on the demolition of a building under lease and a loss on
liquidation of a subsidiary. On the other hand, extraordinary gains were recorded, including a JPY13.4 billion
gain on the sale of fixed assets due to the transfer of a portion of co-ownership of the former Furukawa Osaka
Building site and other land. As a result, net profit attributable to owners of parent was JPY12.9 billion, asignificant increase.

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Next is the balance sheet.
In property, plant, and equipment, despite a JPY2.1 billion decrease in land due to the transfer of the former
Furukawa Osaka Building site and other land, JPY10.7 billion in long-term accounts receivable from thetransfer of fixed assets at the former Furukawa Osaka Building site and a JPY6.2 billion increase in investment
securities due to higher share prices of listed subsidiary shares, were recorded under investments and otherassets. As a result, total assets increased by JPY17.2 billion to JPY249.9 billion.
Net assets increased by JPY15.1 billion to JPY121.1 billion. During the period under review, the Company
acquired treasury stock amounting to JPY1.6 billion, or approximately 920,000 shares. Interest-bearing debt
decreased by JPY0.4 billion YoY to JPY62.3 billion.
Consolidated cash flow from operating activities was positive JPY8.4 billion due to JPY7.4 billion in income
after adjustment for non-cash items. Financing cash flow was negative JPY4.3 billion due to dividend payments
and share repurchases.

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By segment, net sales in H1 increased in the rock drill machinery segment, the UNIC segment, and thechemicals segment, but decreased mainly in the metals segment, which terminated its entrusted smelting
contract with Onahama Smelting and Refining Co., Ltd. at the end of March, leading to a decrease in sales
volume. Consequently, net sales as a whole decreased. Net sales of the overall machinery business increasedby JPY0.3 billion to JPY40.3 billion, and those of the overall materials business decreased by JPY10.4 billion to
JPY51.5 billion.
Operating profit decreased in the industrial machinery, UNIC, and electronics segments, but increased mainlyin the rock drill machinery and metals segments, resulting in an overall increase in operating profit. Operating
profit of the overall machinery business increased by JPY0.6 billion to JPY2.5 billion, and that of the overallmaterials business increased by JPY0.7 billion to JPY1.9 billion.
Although net sales for the full year are expected to increase mainly in the rock drill machinery and UNIC
segments, overall net sales for the full year are forecast to decrease due to lower sales volume in the metals
segment.
Operating profit is expected to decrease in the industrial machinery, UNIC, and electronics segments, but is
expected to increase mainly in the rock drill machinery and metals segments, with overall operating profit
also expected to increase. The actual and assumed exchange rates and copper price and exchange ratesensitivity are shown in the table.

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The graphs show changes in results by segment. The upper graph shows the increase or decrease of the H1
results from the same period of the previous fiscal year, and the lower graph shows the increase or decreaseof the full-year forecast from the previous fiscal year.

I will explain the details by segment. The gray area at the bottom of the page is for reference, which describes
the characteristics, destinations, market share, and others of the main products of each segment. Please takea look at it when you have time.

5This page is about the industrial machinery segment. As for the YoY changes in H1, net sales decreased by
JPY1.8 billion. Net sales of the pump equipment and material machinery declined, and in the contractor
business, while net sales of bridges were recorded in line with volume, a decline in construction of large
projects, which relates to belt conveyors, resulted in a decline in net sales.
Operating profit decreased by JPY296 million, and a loss was recorded in material machinery due to additionalcosts incurred as a result of plant construction delays. Orders received totaled JPY16 billion, up JPY3.2 billion
YoY, which includes orders for pump facilities at the Morigasaki Water Reclamation Center and the Hyogo
East Basin Sewage Sludge Treatment Plant, for bridges for the Ofuna-Terada Elevated Bridge Part 1 on the
National Route 20 Hachioji South Bypass, and for conveyor belts at concrete dam conveyor systems and sandconveyor systems for tunnel excavations.
As for the full-year forecast and its YoY changes, net sales is expected to increase in material machinery,bridges, and large projects. In pump equipment and environmental products, sales are expected to decline,
and overall sales are projected to remain flat.
Although operating profit is expected to increase mainly in bridges and large projects, operating profit isprojected to decrease by JPY0.5 billion in material machinery due to additional costs incurred as a result of
delays in plant construction.

This is about the rock drill machinery segment.
As for the YoY changes in H1, net sales increased by JPY0.6 billion domestically and by JPY1.2 billion overseas.
Domestic sales increased due to an increase in shipments of hydraulic crawler drill units and an increase inorders in the maintenance business. Overseas sales increased as a whole due to an increase in shipments,
mainly in North America, as well as the effect of the weaker yen on sales. Operating profit increased by JPY1
billion, mainly due to increased shipments overseas and the weaker yen.
As for the YoY changes in the full-year forecast, net sales in Japan are expected to increase by JPY0.1 billion.
Overseas sales are expected to increase by JPY2.8 billion, mainly due to increased shipments in North America

6and the weaker yen. Operating profit is expected to increase by JPY1 billion, mainly due to increased
shipments overseas and the effect of the yen's depreciation.

Next is the UNIC segment.
As for the YoY changes in H1, net sales increased by JPY1.5 billion domestically and decreased by JPY1.3 billion
overseas. Domestic sales increased due to a recovery trend in truck production delays and increased
shipments of UNIC cranes. Overseas sales decreased due to lower shipments to China, Southeast Asia, Europe,and other regions. Net sales increased in total.
Operating profit declined slightly due to a worsening cost of sales ratio, caused by rush demand just before
product price hikes.
As for the YoY changes in the full-year forecast, we expect net sales to decrease by JPY1.4 billion in overseas
markets due to the decline in sales in H1, but to increase by JPY2.4 billion in Japan, where truck production is
on a recovery trend. Overall, we expect an increase in net sales.
Operating profit is expected to remain at about the same level as the previous fiscal year, despite increases
in sales and profit in Japan, due to the expected decreases in both sales and profit overseas, as well as thesoaring costs of purchased parts and materials.

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Next is the metals segment.
As for the YoY changes in H1, net sales decreased by JPY10.5 billion, which was caused by a decline in sales
volume due to the termination of the entrusted smelting contract with Onahama Smelting and Refining at theend of March 2023.
Operating profit increased by JPY0.7 billion, and the balance of entrusted smelting improved as unprofitable
exports were significantly reduced due to lower production volume. As shown in the table below, both copperand gold profits increased due to marginal gains from the effects of metal price fluctuations.
Regarding the YoY change in the full-year forecast, net sales are expected to decrease by JPY29.5 billion,
mainly due to a decrease in electrolytic copper sales volume by approximately 20,000 tons, as a result of thetermination of the smelting contract with Onahama Smelting and Refining.
Operating profit is expected to increase by JPY0.4 billion due to improved profit/loss on consignment,
although price gains from metal price fluctuations are not expected in H2.

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Next is the electronics segment.
Net sales of high-purity metallic arsenic declined because the market for compound semiconductors is still in
the inventory adjustment period. Net sales of aluminum nitride ceramics decreased due to sluggish demandfor parts for semiconductor manufacturing equipment. Coil sales increased due to a recovery in automobile
production and price pass-through to higher costs. Overall, net sales remained almost flat YoY.
Operating profit decreased mainly due to lower sales of high-purity metallic arsenic and aluminum nitride
ceramics.
As for the YoY changes in the full-year forecast, we expect aluminum nitride ceramics to decrease due tocontinued sluggish demand for parts for semiconductor manufacturing equipment, but we expect high-purity
metallic arsenic and coils to increase due to a recovery in demand for compound semiconductor products anda recovery trend in the automobile market, respectively. Overall, we expect net sales to increase by JPY0.3
billion.
Operating profit is expected to decrease by JPY0.1 billion for the full year, mainly due to a decrease in profit
from aluminum nitride ceramics, of which sales volume is expected to decline, despite an expected increasein profit from coils due to higher sales.

9Next is the chemicals segment.
Net sales of cupric oxide increased, and despite higher unit prices due to price revisions reflecting the higher
copper price, sales decreased due to the lower demand for substrates. Net sales of cuprous oxide increased
due to a recovery in demand for ship-bottom paints and higher sales unit prices resulting from the copper
price hike and price revisions. Overall, net sales increased by JPY0.1 billion in H1 YoY. Operating profit
increased slightly, due to higher sales.
Regarding the YoY changes in the full-year forecast, we expect an overall increase of JPY0.6 billion in net sales,
mainly due to an increase in sales volume, higher copper prices, and price revisions for cuprous oxide andcupric oxide. Operating profit is expected to increase by JPY0.1 billion due to an increase in sales.

10Next is the changes in results by segment with respect to net sales against the previous forecast, which wasannounced on May 12. I will briefly explain only the main factors for the increase or decrease in the H1 results
and full-year forecasts.
In H1, the industrial machinery segment, which experienced a decrease in construction work for large-scale
projects and additional costs incurred in plant construction, and the UNIC segment, where shipments of UNIC
cranes were lower than expected due to delays in truck deliveries, posted declines in both sales and profit.
Both sales and profit increased in the rock drill machinery segment, which had a large proportion of overseas
sales and benefited from the weaker yen, and in the metals segment, which benefited from price gains due
to metal price fluctuations and the weaker yen.
For the full-year forecast, the industrial machinery segment is expected to post lower sales and profit mainly
due to the H1 results, and the UNIC segment is expected to record further declines in sales and profit due tolower-than-expected shipments of UNIC cranes and higher costs for purchased parts and materials.
The rock drill machinery segment is expected to increase sales and profit mainly due to the weaker yen, andthe metals segment is expected to increase sales and profit due to price gains from metal price fluctuations
and the weaker yen in H1.

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Now, here we have outlined items in which institutional investors have shown a great interest at individual IR
meetings these days, as dialogues with shareholders and investors are essential. In this instance, I will now
explain our business strategy, climate change and decarbonization initiatives, and reduction of strategic
shareholdings, which we have indicated in the red box.

Regarding business strategy, we are currently concentrating management resources on the machinery
business, which is positioned as our core business, to improve returns. And the rock drill machinery segment,in particular, will be elaborated, which has achieved a V-shaped recovery in performance, at the businessbriefing to follow.

12First, I will talk about our initiatives for climate change and decarbonization.
In August 2023, the Company expressed its endorsement of the TCFD recommendations and made disclosures
based on the four elements required by the TCFD recommendations: governance, strategy, risk management,
and metrics and targets. Scenario analysis will be conducted sequentially by segment, as the risks andopportunities associated with climate change are different for each segment.
As the first phase, we conducted analysis for the rock drill machinery and metals segments. In H2, we will
begin analyzing scenarios for the UNIC and chemicals segments, and plan to disclose them in 2024.
Subsequently, the analysis will be initiated for the industrial machinery and electronics segments.
Regarding governance, we recognize the risks and opportunities associated with climate change as animportant management issue. Responses to various issues are deliberated by the Sustainability Promotion
Council and reported to the Board of Directors.
For strategy, we have established 1.5-degree Celsius and 4-degree Celsius scenarios, assessed the significanceof climate change-related risks and opportunities that could affect our business as of 2030 for transition risksand 2050 for physical risks, and disclosed measures that can mitigate risks and maximize opportunities.
With regard to risk management, the Risk Management Committee evaluates risks and considers
countermeasures twice a year in principle, and reports the results to the Board of Directors.
Regarding metrics and targets, it is vital to continuously identify risks and opportunities and address climatechange, and we plan to develop a roadmap toward carbon neutrality by FY2025. We will also strive to provide
products, technologies, and services that are highly effective in reducing greenhouse gas emissions and to
reduce greenhouse gas emissions associated with our business activities. Please take a look at the details laterin the Integrated Report 2023.

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Next, I would like to talk about the reduction of strategic shareholdings. As stated in the Medium-TermBusiness Plan 2025 announced in May of this year, as part of our policy to reduce strategic shareholdings, wewill annually review the appropriateness of continuing to hold these shares based on a comprehensive
assessment that includes the cost of capital, and we will continue to disclose the ratio of strategic
shareholdings to consolidated net assets.
For the current fiscal year, we plan to sell eight brands, amounting to about JPY3 billion, and expect to reduce
our strategic shareholding ratio, including deemed holdings, to about 32% at the end of March 2024. We willcontinue to reduce our strategic shareholdings.

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Pages 18 through 20 are for reference only, so please take a look at them later. Just to give you the main
points, the status of capital investment is as described on page 18, and we plan to make capital investments
totaling JPY9.6 billion.
In the industrial machinery segment, we are planning to increase the number of incinerators at the Gunma
Kankyo Recycle Center, which treats medical waste, over the next three years. In the materials business, weplan the construction of a new aluminum nitride ceramics production facility in the electronics segment, andthe renewal of sulfuric acid production facilities in the chemicals segment. We also plan the acquisition of arental building in Osaka, using proceeds from the sale of the former Furukawa Osaka Building site and otherland in the real estate segment.
That is all from me.

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Akutagawa: Next, Mr. Yamaguchi, President of Furukawa Rock Drill, will explain the business of the rock drill
machinery segment.
Yamaguchi: I am Yamaguchi from Furukawa Rock Drill. Thank you very much for your valuable time today. I
will now explain our business.
Since we have already announced items up to page 23 at the briefing for the Medium-Term Business Plan
2025, today I will give an overview of our business, review the implementation of the Medium-Term Business
Policy 2022, and discuss our basic policy of “Selection and Concentration”.
Next, I will talk about current activities for the Medium-Term Business Plan 2025, including regional strategies
and customer success.
Finally, I will explain the FRD model, which will be the core of our future efforts. FRD, by the way, is thecommonly called name for Furukawa Rock Drill, which is also used in the logo.

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The core competence of the rock drill business is the technology of hydraulic equipment “Drifter (rock drill)”,which is the heart of our products. Since 1914, when we succeeded in developing the first rock drill forpractical use in Japan, the Ashio-type Sanban rock drill, we have evolved and applied this drifter technology
to our current product line.
Hydraulic breakers are attachment products for hydraulic excavators and are mainly used at civil engineeringand construction sites and demolition sites. Hydraulic crawler drills are used to drill holes for loading
explosives for blasting, and are used in lime mines and quarries, as well as in civil engineering and construction
sites overseas.
Tunnel drill jumbos are also machines that drill holes to load explosives, and are mainly used at tunneling sites
in Japan. Our business consists of flow businesses for these key products and stock businesses that support
the product life cycle. For reference, overseas sales accounted for 60% of total sales in the last fiscal year.

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Looking back on the Medium-Term Business Policy 2022, we have been working on a strategy to maximize
the use of limited management resources under the slogan of "Selection and Concentration," and we havebeen improving our corporate structure.
In terms of regional strategy, taking the blast hole business as an example, sales development in the past wasomnidirectional, but in the last fiscal year, we concentrated our target on North America, which accounts for
55% of overseas sales and is expected to experience even stronger demand.
In terms of product strategy, the product lineup had previously been bloated with many models for various
regions, but by focusing on North America, we were able to narrow down the product lineup and link it to the
production system to create a centralized production system, which also improved productivity and reduced
costs.
In the business portfolio, we also changed the all-around business base setting and proceeded to downsize
unprofitable divisions, and completed the termination of operations in Latin America and China. While
promoting these activities, we also implemented timely price pass-throughs, and the effects of the yen's
depreciation helped us to achieve a recovery in business performance.

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These are future overseas initiatives for the Medium-Term Business Plan 2025.
First, in North America, we will strengthen sales of large blast hole drills to explosive crusher contractors,
using our western North American base, which began operations in June of this year, as a foothold. In
particular, the overseas stock business diverged significantly from the initial targets of the 2025 Vision, forcing
us to reconsider our strategy. This is because our initial strategy was to leave the management of the westernregion to the dealers. Therefore, we will aim to achieve our initial goal by directly controlling the operationsof the western region at this new location.
We have also targeted Southeast Asia on the right as a third market, and have introduced, starting withIndonesia, an attachment drill that guides the market from pneumatic to hydraulic pressure, with the aim ofcreating hydraulic crawler drills demand in a quarry market.
Attachment drills use hydraulic drifter equipped with hydraulic crawler drills, and as a drill product that offers
high drilling performance at a lower selling price than hydraulic crawler drills, sales are steadily increasing inmany countries. Southeast Asia is expected to potentially be 5.5 times the size of Japan's market due to thedevelopment of infrastructure. In the future, we will expand throughout Southeast Asia while assessing thecharacteristics of quarries.

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The keyword for domestic efforts is customer success. Customer success is about achieving customers' successthat will result in our own profit. To do so, it is necessary to be actively involved from a customer's perspective
and understand the issues on a regular basis. Currently, elimination of hazardous work, manpower shortage,transfer of skills and know-how, labor savings, and efficiency improvement are common issues for all
customers. We will continuously offer products that solve these issues from a customer's perspective toachieve customer success.
To make this possible, in the area of blast hole drills on the left side, we developed a crawler drill with a semiautomatic drilling function that allows even inexperienced drillers to drill, and began marketing it this year.
We have received very high evaluations, including immediate re-ordering.
The tunnel drill jumbos on the right-hand side offer ROBOROCK, which automates drilling, and BOLTINGER,
which mechanizes rock bolt placement for mountain tunnel construction sites, thereby improving safety andreducing manpower in cutting-edge projects with a high risk of accidents, and enabling high workability thatis not affected by operator skill.
These initiatives will help us to maintain and improve our market share, which will lead to the strengtheningof our stock business, such as parts sales and maintenance services.

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I will then explain the FRD model, which is the pillar of our strategy going forward.
The FRD model is a business model that achieves customer success throughout the lifecycle. The basic concept
is to maximize FRD's core competence, or hydraulic drifter, and FRD's strength in the drilling market to support
customer businesses throughout the lifecycle and generate profits.
Customer success mainly involves tangible and intangible stock businesses, such as service parts, maintenance,service programs, rentals, and trade-ins. However, from the perspective of achieving customer success, we
also include product development, such as the addition of semi-automatic drilling capabilities to our hydrauliccrawler drills, which I mentioned earlier.
The product life cycle represents the flow of phases, from unit sales to parts sales, labor profit, support
programs, and trade-in resale. The FRD model is to provide products, parts, and services that achievecustomer success in each phase, and we plan to have this model established in Japan in FY2025.

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Let me now describe the support program initiatives that are at the core of the FRD model.
FD-CARE, a support program for blast hole drills, supports customer productivity improvement and customer
success through DX based on various digital data obtained from F-MICAS, an operational support system for
blast hole drills.
We have already developed two programs. One is FD-CARE Report Delivery, a program that analyzes andreports on data collected by F-MICAS and distributes monthly reports. The other is FD-CARE Drill Operation,a program in which professionals who know the site and the drill well go to the site to provide support basedon the FD-CARE Report. Consulting and technical support based on measured data will help to find and solve
problems in drilling operations and improve drilling and work efficiency. It also helps customers reduce CO2
emissions.

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The FRD model to be built by 2025 will be enlarged in the future with regional and model expansions.
As for the regional expansion, we will leverage our accumulated know-how and consider expansion into
emerging markets in Southeast Asia and other regions.
As for the model expansion, we have focused on products for quarries with a hole diameter of 64 mm to 127
mm. In the future, we will consider developing small models for the civil engineering market with a holediameter of less than 64 mm, and super-large models for large-scale mines with a hole diameter of more than
127 mm.

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Further development of the FRD model will involve upstream and downstream deployments. For upstream
deployment, we will consider aggressive sales of drill accessories, such as bits and rods that are indispensablefor drill products.
In addition, by leveraging the strengths of the FURUKAWA Company Group, which has a rock drill machinery
segment and an industrial machinery segment, we will support the optimal operation of the quarrying
industry by comprehensively providing our hydraulic crawler drills and downstream products, such as crushers
from our industrial machinery segment. Through the development of this model, we will sustainably grow therock drill business.
This concludes the business description of the rock drill machinery segment.
Thank you for your attention.

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Question & Answer

Shibata [Q]: I am Shibata from SBI SECURITIES. First, I would like you to give me some additional information
on each segment. Page five shows a series of figures by segment, and there are some segments where thedifference between H1 and H2 is large.
How do you expect the trend from H1 to H2? I will appreciate it if you explain it only for the noticeable items.
Second, I saw the investment trends on page 18, and you have been selling and doing various things in yourreal estate business. I had thought you might be streamlining the business, or you might not be putting muchmoney into the real estate business, but you have actually put some money into the real estate business. How
is your real estate business positioned within your company?
Lastly, as the third question, you explained the rock drill machinery segment at the business briefing. I knowthat there are multiple approaches to this question, but I would like to ask, for example, if the figures in themedium-term business plan include their contributions, and how their measures will have an effect.
Nakatogawa [A]: I will now explain the first and second questions from the President's point of view.
As you pointed out on page five, there is a large difference between H1 and H2. As I mentioned in myexplanation, in the industrial machinery segment, there was an unexpected increase in cost of sales in thematerial machinery, resulting in a negative JPY0.5 billion in H1.
The industrial machinery segment receives orders and then installs equipment, so we can roughly expect salesin H2. We expect to be able to achieve these figures, because we have orders that have already been received
and will be completed in H2, or sales will increase based on the percentage-of-completion method.
As for UNIC segment, Isuzu Motors Limited and other truck manufacturers have announced that shipments
have been quite strong. However, as for our UNIC cranes, once the chassis is produced, the body is made,then the crane is installed, and so on. This requires a lot of time and effort. At the same time, bodymanufacturers have been very busy and have not been able to deliver their products, so our forecast is a little
weak.
As for the metals segment, as I explained, we do not expect any profit from the price difference and exchange
rate in H2. Therefore, these figures are a little weak, but in a sense, they can be seen as the effect ofeliminating entrusted smelting of Onahama Smelting and Refining.
Furthermore, we are well aware that there are many opinions about our real estate business. The land weinvested in this time is in Dojimahama, a prime location in Osaka, where we originally owned a tenant building,but it had deteriorated. We have then decided to demolish the building and construct a complex of
condominiums and a hotel.
We consider the real estate business to be an important asset, and we also consider it to be a stable sourceof profit, since we are able to record a profit that can be calculated reliably every fiscal year. That is why wemade this investment this time.
Also, Yamaguchi will tell you about the efforts of the rock drill segment to achieve the medium-term business
plan.

25

Yamaguchi [A]: In the rock drill machinery segment, we have just introduced several measures, some of which
are expected to yield immediate benefits, and some of which are future plans for 2025 and beyond.
In terms of the immediate benefits, our most immediate expectation is to shift our regional strategy to North
America and concentrate on sales there. Although there are various policy uncertainties, the market in North
America has been very steady, and we believe that the establishment of the western base will allow us tohave more detailed control over North America, including dealers, which we have not been able to directly
involve until now.
This will also allow us to get directly into the customers' business, learn more about the sites, and link this tothe stock business, or to expand sales of large machinery. Furthermore, we believe that by understanding thearea, we will be able to expand sales of large breakers that have never been sold before.
In Southeast Asia, our attachment drills have been selling well, and we are very grateful for the favorable
reception we have received, but in the future, we would like to develop new hydraulic crawler drills in a timely
manner for customers who have become familiar with Furukawa's rock drills, and we would like to link this toreplacement demand. As such, we expect immediate benefits, but unfortunately, we are not yet in a position
to mention the specific figures.
In addition, the FRD model, which I explained in the latter half of my presentation, is seen as Furukawa Rock
Drill's sales strategy to achieve customer success in the future. We have high expectations for the future,including upstream and downstream deployments, as well as new proposals for the entire quarrying industry
in cooperation with the industrial machinery segment.

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