Future Outlook

Copyright © 2014 Harmonic Drive Systems Inc.

Robot Industry Classification
TypeI. Industrial
RobotsUse
Manufacturing
robots forautomobiles,
smart phones,etc.

High precision,high reliability

Light work on thefactory floor(items above)＋light weight
Low cost?

Professional
robotsHealthcare, nursing care,rehabilitation, logistics,
resource extraction,
aerospace

Specifications
designed for eachuseConsumerrobotsConsumer appliances,hobbies, toys

Low Cost

Work robots

II. Service
RobotsPrefabrication on thefactory floor

Reducerrequirements

Source: Prepared by the company based on IFR and KDDI Research Institute.

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Copyright © 2014 Harmonic Drive Systems Inc.

Work Robots
Can work in line with people

Do not requiresafety barriers
Easy
configuration

Source: Life Robotics Inc. home page.

Portable
Source: Rethink Robotics, Inc. home page.

Spread use for light work to cover personnel shortages
Copyright © 2014 Harmonic Drive Systems Inc.

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Robot Industry Growth Projection(Unit: ¥trillion)

12
10
86

Service field, etc.
サービス分野他

4

Manufacturing field
製造分野

202015

2020

2025

2035

FY2010 METI/NEDO Future Robot Industry Market Survey

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Copyright © 2014 Harmonic Drive Systems Inc.

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

Industrial Robot Shipments
120,000

Smart phones& tablets

100,000

Flat panel TVs
80,000

Mobile phones
60,000PCs
Automobiles

40,00020,00001980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: Japan Robot Association

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Copyright © 2014 Harmonic Drive Systems Inc.

Industrial Robots in Operation Projection(Units)Germany
ドイツ

177,900
161,988※Korea韓国

201,700
138,883

China※中国

96,9242016 projection
2016年予測2012 performance
2012年実績

215,800
260,800
197,962

U.S.A※北⽶

312,900
310,508

⽇本
Japan
0100,000

200,000

300,000

400,000
Source: IFR
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Copyright © 2014 Harmonic Drive Systems Inc.

Potential of Professional Robots
Surgical robots

Heavy-work
humanoid robots

Aerospace

High precision,high reliability

Source: DARPA Robotics Challenge

Healthcare & nursing robots

Next-generation mobility

Specifications
designed foreach application

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Copyright © 2014 Harmonic Drive Systems Inc.

Sudden Increase in Demand for Robot Use(millions of yen)

Tight supply capacity

12,000

Sales by application ( non-consolidated )10,000

1,928
8,000
6,000
4,000
2,000
0242
724

3,813

1,615
354
590

1,680

1,926

475

559

599

3,388

1,248

403
1,053

431
963

1st-halh

2nd-halh

1st-halh

FY ended Mar.31,2012
Semiconductor equipment
Gearbox for motor manufactures
Optical devices
Excavation system for the oil, etc.

368
481

2,781
856

1,761

663

1,812
779

1,948
436

642

724

5,098

2,908

3,150

507
730

827
1,022

673
1,208

612
1,064

2nd-halh

1st-halh

2nd-halh

1st-halh

2,497

FY ended Mar.31,2013
Flat panel equipment
Machine tools
TransporterOthers

FY ended Mar.31,2014

FY ending Mar.31,2015

Robotics
Printing machines
Measuring machines

Regular production ceiling of ¥1.8 billion/month30

Copyright © 2014 Harmonic Drive Systems Inc.

Response to Future Demand Increases
・Investment to increase supply capacity
・New building to be completed March 2016
・Active introduction of automation

Harmonic Drive Systems
Hotaka Plant
capital investment

Harmonic Precision

Harmonic AD

Increase regular monthly production of the Harmonic
Drive® high-precision control speed reducer[Future]40,000units permonth

50,000units permonthXXX
units permonth

Investment to increase cross roller bearing
production to match the regular monthly production
capacity of the Hotaka Plant

Capital investment centered on in-housemanufacturing of planetary gear reducers
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Copyright © 2014 Harmonic Drive Systems Inc.

Total Motion Control
HDS Groupbusiness domain

Provision of the value “total motion control”
CloudBig Data/AI

ICTSensors

Speed
reducers

Controllers
New materials

Otherelements

MotorsDrivers

Power supply

Affects the company’s business field

SoftwareIoT
To smart robots
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Copyright © 2014 Harmonic Drive Systems Inc.

Envisioning GrowthOn to a new growth stage
50th anniversary offounding（Sales targets）¥21 bil.

¥24 bil.

¥26 bilLong-term Vision
Current Mid-termManagement PlanFY 2012(Sales performance)¥18.1bil.

¥21 bil.

FY 2014

Next Mid-termManagement Plan

FY2015FY2017FY 2018

FY 2020

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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 Division, 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/