Future Outlook

21
Copyright © 2014 Harmonic Drive Systems Inc.

New Robot Trends andthe HDS Group Advantage

22
Copyright © 2014 Harmonic Drive Systems Inc.

Advances in Robots and Their Spheres of Use
1980s—Introduced and promoted wide use in processes inside the safety fence

1: In auto manufacturing plants
1962: Commercialization of industrial robots by Unimation, Inc. (US)
1968: Japanese-made hydraulic servo robots
1973: Development of multi-joint motorized robots

2010s—Growing use in processes collaborating with humans

2: In plants producing IT equipment- Explosive popularity of smartphones- Rapid rise in labor costs and growth of middle class in Asia- Growing investment not just for cost-lowering but for quality improvement

20xxs—Introduction and wide use in living spaces

3: In non-industrial fields
1996: Development of self-standing two-legged walking robots (Honda’s ASIMO)
2013: Five-year Plan for Developing Nursing Care Robots (Japan Revitalization Strategy)
2013: Google and others enter robot business23
Copyright © 2014 Harmonic Drive Systems Inc.

Robot Industry Classifications
TypeUses

Reducer demands

Making things on thefactory floorHigh precision,high reliability

ProfessionalrobotsHealthcare, nursing care,rehabilitation, logistics,resource extraction

Diverse needs

Consumerrobots

Consumer appliances,hobbies, and toys

Low cost

I. Industrial robots

II. Service robots

Source: IFR, KDDI Research Institute(100 mil. yen)

Governments,
corporations, and research
institutions have highhopes for the growth of therobot industry.

120,000
100,000
80,000 Servicesector, etc.
 Mfg. sector

60,00040,00020,0000
2015

2020

2025

2035

FY2010 Future Market Survey on the Robot Industry by METI and NEDO

Copyright © 2014 Harmonic Drive Systems Inc.

24

Growth Trends in Industrial Robot Market
The emergence and growth of devices with major impact on life
style are driving demand for industrial robots(number)
140,000

Industrial robot shipments
120,000

Smartphones
and tablets

100,000

Flat panel TVs
80,000

Mobile phones
60,000PCs
40,000Automobiles
20,00001980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: Japan Robot Association25

Copyright © 2014 Harmonic Drive Systems Inc.

Growth of Industrial Robot Market
Robot introduction accelerating in China,
South Korea, and other regions~Aimed at raising quality, reducing labor costs and labor management costs~
Robot usage by region(actual data)

Robot usage by region(forecast)(number)(number)
180,000
160,000

ActualForecast2012

2013

250,000
140,000
120,000

200,000

100,000
150,000
80,00060,000100,000

40,00050,00020,000
00

2007
Jpn
⽇本

NA
北⽶

2012
EU
欧州

SK
韓国

CN
中国

Other
その他

Source: IFR

⽇本
Jpn

北⽶
NA

欧州
EU

2014

2015

2016

韓国
SK

中国
CN

その他
Other

26

Copyright © 2014 Harmonic Drive Systems Inc.

Uses of Industrial Robots
Industry

Automobiles

Mainprocesses

Robot features

Welding
Painting
Transfer

With increasing needs forwider range of movement
and carrying heavy items,
mid-sized to large robots
are common

Semiconductors

TransferDigital devices
Smartphones
Tablets

Jig replacement
Assembly
Inspection
TransferIllustration

As many transferred items
are light in weight (wafers),
compact robots arecommon

As many transferred items
are light in weight(smartphones, tablets),
mid-sized to compact
robots are common■Need for quality improvement and stability, rise in labor costs
Demand growing in factories of newly emerging nations■Advance of robot technology and revisions to safety standards
As they become skilled at assembly work only humans could perform, robots are expected towork side-by-side with human workers
Copyright © 2014 Harmonic Drive Systems Inc.

27

Service Robots
Type

Reducerdemands

Uses
Professionalrobots

Healthcare, nursing care,rehabilitation, logistics,
resource extraction

Diverse needs

II. Service robots
ConsumerrobotsConsumer appliances,hobbies, and toys

Low cost

Source: IFR, KDDI Research Institute

University of Tokyo
Ultra-high-speed multifingered hand system

Photo: Ishikawa Oku Laboratory, University of Tokyo

Shinshu University
Robotic suit to assist with walking

September 21, 2013 Shinano Mainichi Shimbun

28

Copyright © 2014 Harmonic Drive Systems Inc.

Total Motion ControlBusiness domain ofour Group

Providing the value of Total Motion Control
Big Data/AINewmaterials

CloudSensors
ICTControllers
Othersystemelements

SoftwareSpeedreducers
MotorsDriversPowersupplyOn to the world of smart robots?

29

Copyright © 2014 Harmonic Drive Systems Inc.

The Next Mid-term Management Plan and Longterm Vision~Looking ahead to our 50th anniversary~Strengthening our ability to meet future expansion of
innovative applications

Pursuing advances inTotal Motion Control
1. Raising overall competitiveness of precision speed reducers
2. Boosting marketing for next-generation robots, vehicles, and other
innovative fields
3. Raising manufacturing ability through the upward spiral of technology
and skills
4. Fostering an R&D climate for boldly challenging new technology
5. Promoting globalization30
Copyright © 2014 Harmonic Drive Systems Inc.

Promoting Globalization[Germany]
Harmonic Drive AG[China]Harmonic Drive Systems(Shanghai) Co., Ltd.

[South Korea]
Samick ADM Co., Ltd.

[US]
Harmonic Drive L.L.C.
HD Systems, Inc.

[Nagano]Harmonic Drive Systems Inc.
Harmonic AD, Inc.
Harmonic Precision, Inc.
HD Logistics, Inc.
Winbel Co., Ltd.
[Tokyo]Ome Iron Casting Co., Ltd.
31
Copyright © 2014 Harmonic Drive Systems Inc.

Envisioning Growth
On to a new growth stage
50thAnniversary ofFounding

Current Mid-termManagement Plan
FY2012FY2014Long-term Vision

Next Mid-termManagement Plan

FY2015FY2017FY2018FY202032
Copyright © 2014 Harmonic Drive Systems Inc.

The performance targets and other numerical data
presented herein are forecasts based on information
available to the HDS Group at the time this material wasprepared, and are subject to the influence of uncertainties
including those in the economic and competitiveenvironment. Actual performance may therefore differ
materially from the forecasts given in this material.

For more information:
Please contact us as follows for material contents and investor information of all kinds.
Corporate Planning and Finance Department, Harmonic Drive Systems Inc.
Believe Omori 7F, 6-25-3 Minami-Oi, Shinagawa-ku, Tokyo 140-0013 Japan
Email: ir@hds.co.jp
Website: https://www.hds.co.jp/

Copyright © 2014 Harmonic Drive Systems Inc.