Presentation on Business Results
for the 1st-Half of Fiscal YearEnding March 31, 2019
November 16, 2018
This presentation contains forward-looking statements relating to expected future performance as of Nov. 16, 2018.
Such statements are based on the views 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 fromexpectations.
Copyright © 2018 Harmonic Drive Systems Inc.

Performance
Summary2
Copyright © 2018 Harmonic Drive Systems Inc.

1st-half consolidated results(versus original forecasts for the period)

Net sales

Original forecasts(announced May 11)

1st-half
FY ending Mar.31,2019(millions of yen)Vs. original forecasts
for the period

AmountPercent (%)

AmountPercent (%)

ChangeRate(%)

32,300100.034,474

100.0

2,174

6.7

OperatingincomeOrdinary
income

8,300

25.7

8,914

25.9

614

7.4

8,400

26.0

9,337

27.1

937

11.2

Net income

5,400

16.7

5,908

17.1

508

9.4

EPS （yen）

56.10

－

61.37

－

5.28

9.4

※ Net Income refers to net income attributable to owners of parent.

3
Copyright © 2018 Harmonic Drive Systems Inc.

1st-half consolidated results (year-on-year change)(millions of yen)

1st-half
FY ended Mar.31,2018

1st-half
FY ending Mar.31,2019Year-on-year change

AmountPercent (%)

AmountPercent (%)

ChangeRate (%)

Net sales

25,014100.0

34,474

100.0

9,459

37.8

Gross profit

12,05848.2

15,655

45.4

3,596

29.8

OperatingincomeOrdinary
income

5,761

23.0

8,914

25.9

3,153

54.7

5,638

22.5

9,337

27.1

3,699

65.6

Net income

3,663

14.6

5,908

17.1

2,244

61.3

EPS （yen）

40.00

61.37

21.38

53.4

3,128

10,506

7,377

235.8

2,712

2,784

72

2.7

714

1,204

490

68.6

Capitalinvestment
Depreciation
costs
R&D costs※ Net Income refers to net income attributable to owners of parent.
※ Capital investment amounts are the amounts of tangible and intangible fixed assets acquired in the term.
4※ We adjusted 1st-half FY ended Mar.31,2018 retroactively due to the tentative accounting process.
Copyright © 2018 Harmonic Drive Systems Inc.

Performance of main group companies for 1st-halfof fiscal year ending March 31, 2019(millions of yen)AmountChange(%)

AmountChange(%)－

25,229

40.7

5,196

43.2

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

100%
(51%)

3,227

27.6

233

80.6

Harmonic AD, Inc.

100%

1,595

18.3

151

20.6

Harmonic Drive Systems(Shanghai) Co., Ltd.

100%

2,195

11.0

151

53.4

Harmonic Drive AG(Germany)

74.7%

8,050

26.3

1,309

46.7

Harmonic Drive
Systems Inc.
*2
*5

*3
*4
*6

Net income

Net sales

Equitystake

Percent change(%) indicates increase or decrease from same period of previous fiscal year.
*1 For overseas subsidiaries and affiliates, the fiscal year ends December 31.
*2 Exchange rates: Jan. – Jun., 2017 1US$ = 112.37 yen, Jan. – Jun., 2018 1US$ = 108.68 yen*3 Exchange rates: Jan. – Jun., 2017 1CNY = 16.39 yen, Jan. – Jun., 2018 1US$ = 17.09 yen*4 Exchange rates: Jan. – Jun., 2017 1€ = 121.64 yen, Jan. – Jun., 2018 1€ = 131.64 yen*5 Net income of US subsidiaries (consolidated) is after excluding non-controlling interests.
*6 Net income of German subsidiaries (consolidated) is before excluding non-controlling interests.

5

Copyright © 2018 Harmonic Drive Systems Inc.

1st-half non-consolidated results(millions of yen)

1st-half
FY ended Mar.31,2018

1st-half
FY ending Mar.31,2019Year-on-year change

AmountPercent(%)

AmountPercent(%)

ChangeRate(%)Net sales

17,934100.0

25,229

100.0

7,294

40.7

Gross profit

7,659

42.7

10,415

41.3

2,756

36.0

5,135

28.6

7,205

28.6

2,070

40.3

5,243

29.2

7,510

29.8

2,266

43.2

Net income

3,628

20.2

5,196

20.6

1,568

43.2

EPS （yen）

39.61

53.98

14.37

36.3

2,077

8,716

6,639

319.6

708

966

257

36.3

674

805

130

19.4

OperatingincomeOrdinary
incomeCapitalinvestment
Depreciation
costs
R&D costs

6
Copyright © 2018 Harmonic Drive Systems Inc.

Net sales by application (non-consolidated)(millions of yen)
30,00025,22925,00021,04817,93420,00015,00010,0005,000
011,848
2,230
281
1,122
726

11,892
2,326
103
850
650

12,843
2,123
84
850
615

4,671

5,308

6,215

834

719

844

13,904
2,276
84

2,230
203

1,325

449
1,320
1,210

2,575
318
1,137
1,076

887
968

12,941

841
820

6,310

3,300

9,890
1,165

11,457
1,768

1,431

1,317

1,349

1,383

1,554

1,797

2,237

3,341

1st-half

2nd-half

1st-half

2nd-half

1st-half

2nd-half

1st-half

FY ended Mar.31,2016

FY ended Mar.31,2017

Semiconductor equipment
Gearbox for motor manufactures
Optical devices
Excavation system for the oil, etc.

Flat panel equipment
Machine tools
Transporter
OthersFY ended Mar.31,2018

FY ending Mar.31,2019

Robotics
Printing machines
Measuring machines

7
Copyright © 2018 Harmonic Drive Systems Inc.

Factors in year-on-year change in 1st-half
non-consolidated operating income(millions of yen)

Higher income+4,125

5,135

1st-half of FY ended
March 31, 2018

Lower
marginal profit Higher fixedratio, etc. manufacturing Higher SG&A
costs, etc.
▲686

▲192

7,205

▲1,177

1st-half of FY ending
March 31, 20198

Copyright © 2018 Harmonic Drive Systems Inc.

Status of consolidated assets(millions of yen)

140,000
120,000
100,000
80,00060,00040,000133,190
29,464
15,816135,965
23,524

Cash & bank deposits
and securities

19,472

Trade receivables

7,448

Inventories
Other current assets

21,30629,331

Tangible fixed assets

43,58243,019Intangible fixed assets

15,802

12,175Investments andother assets

March 31, 2018

September 30,2018

6,488
729

993

20,0000

9Copyright © 2018 Harmonic Drive Systems Inc.

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

140,000
120,000
100,000

133,190

135,965

3,162
9,559
2,168
14,974

3,675
10,381
2,502
13,692

625

3,034

3,496

99,664

101,590625

Trade payable
Other current liabilities
Long and short-term borrowings
Other fixed liabilities
Stock option
Minority interests

80,00060,00040,000Equity ratio
74.8%

20,000Owned capital

Equity ratio
74.7%

0March 31, 2018

September 30,201810

Copyright © 2018 Harmonic Drive Systems Inc.

Status of consolidated cash flows(millions of yen)

1st-half of FY ended
Mar.31,2018

1st-half of FY ending
Mar.31,2019

Cash flow from operating activities

1,480

3,555

Cash flow from investing activities▲1,973▲8,415

Cash flow from financing activities▲1,037▲1,126▲35▲168▲1,566▲6,156

8,102

22,164

Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at end of year

11

Copyright © 2018 Harmonic Drive Systems Inc.

Performance Forecast
For Fiscal YearEnding March 31, 201912
Copyright © 2018 Harmonic Drive Systems Inc.

Revised consolidated results forecast for
fiscal year ending March 31, 2019(millions of yen)
Original forecasts(announced May 11)

Net sales

Revised forecasts(announced Nov. 8)

Vs. original forecasts

AmountPercent (%)

AmountPercent (%)

ChangeRate (%)

68,500100.0

67,000100.0▲1,500▲2.2

OperatingincomeOrdinary
income17,40025.4

16,10024.0▲1,300▲7.5

17,60025.7

16,50024.6▲1,100▲6.3

Net income

11,50016.8

10,600

15.8

▲900

▲7.8

EPS （yen）

119.46－110.11

－

▲9.35

▲7.8

※ Assumed exchange rate for FY19/3 forecasts 1USD ＝ ¥110.00 1EUR ＝ ¥130.00※ Net income refers to net income attributable to owners of parent.

1CNY ＝ ¥16.00

13
Copyright © 2018 Harmonic Drive Systems Inc.

Revised non-consolidated results forecast for
fiscal year ending March 31, 2019(millions of yen)
Original forecasts(announced May 11)

Net sales

Revised forecasts(announced Nov. 8)

Vs. original forecasts

AmountPercent (%)

AmountPercent (%)

ChangeRate (%)

50,000100.0

48,000100.0▲2,000▲4.0

OperatingincomeOrdinary
income14,10028.2

12,60026.3▲1,500 ▲10.6

14,30028.6

13,00027.1▲1,300▲9.1

Net income

10,000

20.0

9,100

19.0

▲900

▲9.0

EPS （yen）

103.88

－

94.53

－

▲9.35

▲9.0

※Assumed exchange rate for FY19/3 forecasts 1USD ＝ ¥110.00

1EUR ＝ ¥130.00

1CNY ＝ ¥16.00

14
Copyright © 2018 Harmonic Drive Systems Inc.

Consolidated performance forecast for
fiscal year ending March 31, 2019
FY ended Mar. 31, 2018

Forecasts
FY ending Mar. 31, 2019(millions of yen)

Year-on-year change

AmountPercent (%)

AmountPercent (%)

ChangeRate (%)

54,339100.0

67,000100.0

12,66023.3

12,59823.2

16,100

24.0

3,501

27.8

12,22822.5

16,500

24.6

4,271

34.9

Net income

8,059

14.8

10,600

15.8

2,540

31.5

EPS （yen）

86.90

－

110.11

－

23.22

26.7

8,757

－

23,500－14,742

168.3

5,852

－

6,300

－

447

7.7

2,114

－

2,600

－

485

22.9

Net sales
OperatingincomeOrdinary
incomeCapitalinvestment
Depreciation
costs
R&D costs※ Net income refers to net income attributable to owners of parent.
※ Assumed exchange rate for FY ending Mar.31, 2019 forecasts 1US$ = ¥110.00 1€ = ¥130.00 1CNY=¥16.00※ Depreciation costs include depreciation cost of tangible assets and amortization cost of intangible assets and goodwill.

15

Copyright © 2018 Harmonic Drive Systems Inc.

Forecasts of main group companies forfiscal year ending March 31, 2019

*2
*5

*3
*4
*6

Net sales(millions of yen)

Net income

Equitystake

AmountYear-on-yearchange (%)

AmountYear-on-yearchange (%)

Harmonic Drive
Systems Inc.

－

48,000

23.1

9,100

16.8

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

100%
（51%）

6,700

21.6

470

94.5

Harmonic AD, Inc.

100%

3,400

22.2

280

14.0

Harmonic Drive Systems(Shanghai) Co., Ltd.

100%

4,000

▲13.9

220

▲21.8

Harmonic Drive AG(Germany)

74.7%

15,700

15.2

2,250

10.0

Percent change(%) indicates increase or decrease from same period of previous fiscal year.
*1 For overseas subsidiaries and affiliates, the fiscal year ends December 31.
*2 Exchange rates: Jan. – Dec., 2017 1USD = 112.19 yen, Jan. – Dec., 2018 forecast 1USD = 110.00 yen*3 Exchange rates: Jan. – Dec., 2017 1CHY = 16.63 yen, Jan. – Dec., 2018 forecast 1CYN = 16.00 yen*4 Exchange rates: Jan. – Dec., 2017 1EUR = 126.67 yen, Jan. – Dec., 2018 forecast 1EUR = 130.00 yen*5 Net income of US subsidiaries (consolidated) is after excluding non-controlling interests.
*6 Net income of German subsidiaries (consolidated) is before excluding non-controlling interests.

16

Copyright © 2018 Harmonic Drive Systems Inc.

Non-Consolidated performance forecast for
fiscal year ending March 31, 2019
FY2018/3

FY2019/3 forecasts(millions of yen)

Year-on-year change

AmountPercent (%)

AmountPercent (%)

Net sales

38,982100.0

48,000

100.0

9,017

23.1

Operatingincome11,01628.3

12,600

26.3

1,583

14.4

Ordinary
income11,04428.3

13,000

27.1

1,955

17.7

Net
income

7,788

20.0

9,100

19.0

1,311

16.8

EPS (yen)

83.97

－

94.53

－

10.56

12.6

Capitalinvestment
Depreciation
costs

6,523

－

19,500－12,976

198.9

1,634

－

2,600

－

965

59.1

R&D costs

1,368

－

1,700

－

331

24.2

※ Assumed exchange rate for FY19/3 forecasts 1USD ＝ ¥110.00

1EUR ＝ ¥130.00

Change1CNY ＝ ¥16.00

Rate (%)

17

Copyright © 2018 Harmonic Drive Systems Inc.

Sales trend line (non-consolidated)(millions of yen)

48,00050,000Four-year average
28,125 mil. yen

40,00030,00020,00038,982
22,77023,02923,74011,663

11,892

26,74721,04813,90410,00011,366

11,848

12,843

FY ended Mar.
31,2015

FY ending Mar.
31,2016

FY ending Mar.
31,2017

17,93425,2290

1st-half

FY ending Mar.
31,2018

2nd-half

FY ending Mar.
31,2019

forecast

18

Copyright © 2018 Harmonic Drive Systems Inc.

Sales trend line by product (non-consolidated)(millions of yen)

50,000Four-year average
28,125mil. Yen

40,00048,00038,982
5,136

30,00020,00010,00023,02923,740

3,534
2,606

4,329
2,827

16,888

16,583

FY15/3

FY16/3

26,7475,700

Mechatronics

4,300

Planetary Gear

3,650

4,539
3,066
30,19638,000HarmonicDrive®

19,1420HarmonicDrive®

FY17/3
Planetary Gear

FY18/3

FY19/3
forecast
Mechatronics

19

Copyright © 2018 Harmonic Drive Systems Inc.

Non-consolidated bookings by application (quarterly)(millions of yen)
20,00017,985
1,640

15,00062
773
423

16,88914,583

1,707

1,581

878
650

96
957
613

10,00011,754
7,948

18,113

310

1,780
494

829
1,091

9,546
9,082

10,641

5,000

0

1,179

1,241

1,625
1Q

1,114

1,670

899
1,903

2Q

3Q

4Q

Semiconductor equipment
Gearbox for motor manufactures
Optical devices
Excavation systems for the oil, etc.

Flat panel equipment
Machine tools
Transporter
Others

166
641
553

6,183
1,407
203
385
443

4,548

2,568

FY ended Mar. 31, 2018

1,712

335
1,126

2,638

1Q

161
624
2Q

FY ending Mar. 31, 2019
Robotics
Printing machines
Measuring machines

20 20

Copyright © 2018 Harmonic Drive Systems Inc.

Non-consolidated net sales by application(premise for 2nd-half forecasts)(millions of yen)
30,00025,22925,00020,00015,00013,904
2,276

21,0483,300

17,934

2,575

2,230

1,320
1,210

1,137
1,076

203

887
968

318

84

10,000

5,000
0

841
820

6,310

9,890

11,457

1,325
1,554

1,165
1,797

1,431
2,237

2nd-half

1st-half

2nd-half

FY ended Mar.31,2017

FY ended Mar.31,2018

Semiconductor equipment
Gearbox for motor manufactures
Optical devices
Excavation system for the oil, etc.

Flat panel equipment
Machine tools
Transporter
Others

22,7703,500

449

12,941

600

1,200
1,200

11,500

1,768
3,341

1,000
2,800

1st-half

2nd-half forcast

FY ending Mar.31,2019
Robotics
Printing machines
Measuring machines

21

Copyright © 2018 Harmonic Drive Systems Inc.

Factors in year-on-year change in non-consolidated
operating income (fiscal year ending March 31, 2019 forecast)Higher income(millions of yen)

＋5,056Lower
marginal profit
ratio, etc.

11,016

FY ended Mar. 31,
2018

Higher fixed▲290 manufacturingcosts, etc. Higher SG&A
costs

▲2,112

12,600▲ 1,070

FY ending Mar. 31,
2019 forecast 22
Copyright © 2018 Harmonic Drive Systems Inc.

Trends in operating income (non-consolidated)(millions of yen)(%)

14,00050.0

Four-year average
7,368mil. yen

12,00040.0

10,000
8,000

25.9

24.9

24.6

6,000
4,000
2,000

28.3
11,016

5,975

5,913

26.3
12,600

6,568

30.0

20.0

10.0

0

0.0
FY ended Mar.
31,2015

FY ended Mar.
31,2016

Operating income

FY ended Mar.
31,2017

FY ending Mar.
31,2018

FY ending Mar.
31,2019

forecast

Operating income margin (%)

23

Copyright © 2018 Harmonic Drive Systems Inc.

Future Outlook

24
Copyright © 2018 Harmonic Drive Systems Inc.

Orders by Region

25
Copyright © 2018 Harmonic Drive Systems Inc.

Consolidated Orders, by region
External environment

 In the preceding fiscal year, adjustment process in Asia due to “investment overheating” and “advanceorders” centering on robots
 Adopting a wait-and-see approach for some investment due to US–China trade friction and revisions
to China’s state subsidy system

Internal environment

 Strong performance in Europe and North America
 Competitive advantage unchanged
 Expect upturn in orders from Q4 (firm in advanced-country economies, strong progress in plans forinvesting in automation)(Millions of yen)

Harmonic Drive AG becomes subsidiary

25,000FY03/19

20,00015,00014,43914,022

15,715

15,645
9,526

10,000
11,544

5,000

5,820

5,412

6,543

0

1,301
435

1,133
402

1,035
495

Q1 2016

Q2 2016

Q3 2016

1,867

2,247

3,681

4,695

4,088

Q4 2017

Q1 2018

Q2 2018

1,707

2,076

1,894

2,006

1,269
941

3,834

4,264

4,442

Q4 2016

Q1 2017

Q2 2017

Q3 2017

North America

Asia

Europe6,449

26

Copyright © 2018 Harmonic Drive Systems Inc.

Trends in Main Fields ofApplication

27
Copyright © 2018 Harmonic Drive Systems Inc.

1. Industrial robots
 Growth leveling off in 2018 due to US–China trade friction and revisions to China’s state subsidy system A wait-and-see attitude on some investment in Asia
 “Bringing jobs back home” campaigns in the US and other countries, as well as favorable demand forinvestment in automation in advanced and newly industrialized countries(backdrop of rising personnel expenses, worker shortages, and a growing quality focus)

Worldwide outlook for number of industrial robots sold*forecast

Copyright © 2018 Harmonic
Drive Systems Inc.

28

Copyright © 2018 Harmonic Drive Systems Inc.

2. Collaborative robots (co-bots)
 Expanding adoption in the manufacturing and service industries Robust demand, centered on Europe

Expected size of the market for co-bots(by amount and units)Sales(billions of yen)

30.9

48.8

80.0

204.0

2017-2020 (forecast)

6

Aprox.4.3x
CAGR: 62.4%

5
Ten thousands of units

126.5

0.9
4
1.5
3

0.6

2
1
0

0.1
0.2
0.3
0.1
2016

1.0

0.4
0.6

1.9

0.2
0.4
0.4
0.2
2017
(Actual)

2018
2019
2020
(Estimate) (Forecast) (Forecast)

Japan

Asia

1.1

0.7
0.3

0.8

0.5

EuropeUS

Source: Techman Robot Inc.

Source: “Reality and Future Outlook of Worldwide Robot
Related Market 2018; Vol.1 FA Robot Market
Edition,” Fuji Keizai Group29

Copyright © 2018 Harmonic Drive Systems Inc.

3. Semiconductor manufacturing equipment,
LED and OLED manufacturing equipment
Semiconductor manufacturing equipment
 At present, adjustments underway to invest in higher
semiconductor multilayer and miniaturization technologies
 Growing demand for AI, VR, and CASE (automobile-related) Driven by 5G-related investment (3G [voice] ➔ 4G [data] ➔ 5G
[video]) Explosion in data volume driving increases in server demand
and accelerating the shift toward cloud computing
 Shift from hard disk drives to solid-state drives

LED and OLED manufacturing equipment Demand for small- and medium-sized panels falling as smartphone growth levels off
 Demand emerging for OLEDs used in large TVs and onboard automotive electronics

Copyright © 2018 Harmonic Drive Systems Inc.

30

New Applications

31
Copyright © 2018 Harmonic Drive Systems Inc.

1. Medical applications
 Robotics technology is playing an active role in medical practice Use of power assistance is expanding in physical therapy clinics and for easing
the burden of carrying heavy objects
 Health insurance applicability to surgery assistance robots is growing

Market forecast for surgical robots

Surgical robots

Power assist suits(US M$)

10
Forecast

8645mm diameter HarmonicDrive®

2
0
2015

2016

2017

2018~2020

Source: IFR "World Robotics 2017 Industrial Statistics"

32
Copyright © 2018 Harmonic Drive Systems Inc.

2.-(1) Helping to bring a revolutionary type of
new engine into practical use
 Nissan Motor Co., Ltd.

Used in actuator for variable compression ratio (VCR) engine
One Harmonic Drive® used in each engine
Significantly improved fuel performance Compression ratio continuously changes according
to driving conditions
 Significantly improved thermal efficiency
 Has been something of a dream among internal
engine technologies, under development for morethan 20 years

Source: Nissan Motor Co., Ltd.

 Expected to drive next-generation technologies
State-of-the-art technology contributing to thefusion of internal combustion engines and electricvehicles33

Copyright © 2018 Harmonic Drive Systems Inc.

2.-(2) Helping to bring a revolutionary type of
new engine into practical use
 Major technological breakthroughin internal combustion engines
Optimal compression ratio for travel obtained bychanging the top dead center position of thepistonMulti-linkmechanism
Note: Developed by Nissan
Motor We are developing andcommercializing specialized speed
reducer for VCR engines
Newly developed Harmonic Drive® Dual type

Harmonic Drive®
area

Technology once considered a dream achieved through multi-linkmechanism and new Harmonic Drive®

34

Copyright © 2018 Harmonic Drive Systems Inc.

2.-(3) Autonomous motorcycle Yamaha Motor Co., Ltd.’s MOTOROiD
Uses batteries as weights and pendulum principles to control balance Used in actuators to control vehicle position Our AC servo actuators contributehelp control vehicle balance
・Used to control steering and center of gravity
・Non-backlash contributes to improved
controllability
・High marks for being lightweight and compact
Source: Yamaha Motor Co., Ltd.

◇ Unveiled at the 2017 Tokyo Motor Show
◇ On display at the Yamaha Motor Booth at World Robot
Summit 2018 (October 17–21)

35

Copyright © 2018 Harmonic Drive Systems Inc.

Initiatives Aimed at Achieving
Medium-Term Management Plan Targets“Raising QCDS Capacity”

36
Copyright © 2018 Harmonic Drive Systems Inc.

1. Roadmap to raising production capacity
1. Strain wave gearing devices
To Jan. 2017

(Numbers indicate units produced per month)

Aug.
2017

Apr.
2018

Oct.
2018

66,00085,000+105,000+－Mar. 2021－

Hotaka Factory

50,000Japan:
Harmonic
Drive
Systems Inc.

Ariake Factory

Ariake Factory(new plant building)

Total for two
factories:
200,000

120,000–
150,000
Germany:
Harmonic
Drive AGUS:
Harmonic
Drive LLC

Limburg Factory

10,000 +Boston Factory

2. Crossed roller bearings
Japan:
Harmonic
Precision
Corp.
Germany:
Harmonic
Drive AG

Current factory

30,000–50,00015,000+
New factory

3,000

10,000–30,000Total 98,000+ Total: 123,000+

60,000+70,000+
New factory

Limburg Factory

10,000+

New factory

Total 70,000+ Total 80,000+

Total 240,000–
280,000

120,000–
150,000

150,000

30,000Total 180,000

37

Copyright © 2018 Harmonic Drive Systems Inc.

2. Construction of new plant building at
the Ariake Factory (Azumino, Nagano Prefecture) Production base for strain wave gearing devices (Harmonic Drive®)
 Factory designed in anticipation of production increases over the medium
term (total floor space of 21,818sqm)
 We plan to increase capital investment in equipment and increase thenumber of personnel in stages, keeping a close watch on demand trends
Now
Sep. 2018

Construction started

Nov. 2018

Jul. 2019

Under construction

Construction to be completed

Groundbring ceremony

Building area
Artist’s rendition of completed facility

38
Copyright © 2018 Harmonic Drive Systems Inc.

3. Construction of new plant building at
the Matsumoto Factory (Matsumoto, Nagano Prefecture) Production base for crossed roller bearings
 Factory designed in anticipation of production increases over the medium
term (total floor space of 23,659sqm)
Now

Dec. 2017

Nov. 2018

Jan. 2019

Construction started

Under construction

Construction to be completed

Site preparation

Current progress
Artist’s rendition of completed facility

39
Copyright © 2018 Harmonic Drive Systems Inc.

4. Construction of new plant building at the US Factory(Beverly, Massachusetts)
 Production base for strain wave gearing devices (Harmonic Drive®) Designed to increased North American local production ratio and meet future
demand increases (total floor space of 8,830sqm)
NowJul. 2018

Nov. 2018

Jul. 2019

Construction started

Under construction

Construction to be completed

Site preparation
Current progress
Artist’s rendition of completed facility

40
Copyright © 2018 Harmonic Drive Systems Inc.

5. Efforts to increase productivity
 Expand automated lines
 Promote cross-trained workers
 Achieve ongoing improvements in fabrication, assembly,
and testing processes Normalize and shortendelivery times
 Pursue further quality
increases Enhance costcompetitiveness41
Copyright © 2018 Harmonic Drive Systems Inc.

Current Mid-term management planand Aiming for Further Growth
toward 2030 and 2050

42
Copyright © 2018 Harmonic Drive Systems Inc.

Mid-term management plan and long-term vision

Consolidated sales (billions of yen)
Plannedsales 20.4
Actual
sales

18.1

21.0

26.0

29.0

25.9

28.2

30.0

35.0

68.5

54.3

67.0E

100.0

50th
anniversary
前mid-term
Earlier
mid-termmanagement
management
plan
plan
FY2012–FY2014Previous mid-term
management plan
FY2015–FY2017

Current mid-term
management plan
FY2018–FY2020Good balance among
three businesses
MT
AD

RD
FY2030–FY205043
Copyright © 2018 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 was
prepared, 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 Division, Harmonic Drive Systems Inc.
Ichigo Omori bldg. 7F, 6-25-3 Minami-Oi, Shinagawa-ku, Tokyo 140-0013 Japan
Email: ir@hds.co.jp
Website: https://www.hds.co.jp/

Copyright © 2018 Harmonic Drive Systems Inc.