Business Results for the 1st half
ended May. 31, 2016

July. 20, 2016



FY2016 1st Half Results & Full Year Forecast

Overview(Billions of yen)

FY2015
1st half year

FY2016
1st halfyear

Full Year

Full Year
forecast䠄䕧䠍.䠍%䠅䠄㼞㼍㼠㼑㻌㼛㼒㻌㼕㼚㼏㼞㼑㼍㼟㼑䠅䠍䠌䠓.䠏

Net sales䠎䠍䠔.䠑

䠄䕧䠏.䠌%䠅

䠍䠌䠒.䠎
䠄䕧䠏䠏.䠐%䠅

Operating Income(profit ratio on net sales)(䠕.䠌%)

䠕.䠒

(䠔.䠓%) 䠍䠔.䠕Ordinary Income(䠒.䠍%)

䠄䕧䠏䠍.䠐䠂䠅

䠒.䠐

䠄䕧䠑䠍.䠒%䠅

(profit ratio on net sales)(䠔.䠐%)

䠕.䠌

(䠓.䠕%) 䠍䠓.䠏Net Income(䠐.䠍%)

䠎䠍䠎.䠌

(䠒.䠍%) 䠍䠏.䠌䠄䕧䠐䠑.䠍䠂䠅

䠐.䠏

䠄䕧䠑䠎.䠑%䠅

(䠐.䠑%)

䠕.䠑

䠄䕧䠐䠔.䠎䠂䠅

䠑.䠓

䠍䠍.䠑

䠎.䠓

䠒.䠌

Exchange rate (USD)䠍䠍䠕yen䠍䠎䠑yen䠍䠍䠐yen䠍䠌䠕yen(Euro)䠍䠏䠑yen䠍䠏䠑yen䠍䠎䠒yen䠍䠎䠍yen

Factors for change in Net Sales

Overview

Net sales(Billions of yen)䠄㻝㻜㻥㻚㻢䠅



ͤ Apply FY2015 1st half exchange rateincrease/decreaceincrease/decreace

䠂䠞䠋䠝

䠂
䠟䠋䠝

56.2

䕧3.4

䕧3.4

49.9

53.4

䠇1.7

䠇8.7

14.7

15.4

16.5

䠇4.3 䠇11.6

Europe

5.5

6.1

6.5 䠇10.8

䠇17.2

Asia

28.7

28.3

30.3

䕧1.4

䠇5.6

(China)(12.3)(12.6)(13.6)

䠇1.7 䠇10.0

FY20151st half䠝

FY2016
1st half
䠞

FY2016
1st half䠟䯲

Domestic

58.2

56.2

Overseas49.1

America

Effect ofexchange rate
䕧3.4





㻝㻜㻣㻚㻟

㻝㻜㻢㻚㻞



䡚
䡚
㻜

㻲㼅㻞㻜㻝㻡㻝㼟㼠㻌㼔㼍㼘㼒㻲㼅㻞㻜㻝㻢㻝㼟㼠㻌㼔㼍㼘㼒Factors for change in Operating Income

Overview

Operating Income䠄㻝㻞㻚㻜䠅

(Billions of yen)

Cost up 䕧3.8䠘Factor for prior investments䠚(mainly by priorinvestments)Effect ofexchange rate
䕧1.8



㻢㻚㻠

㻥㻚㻢

Improving each aspect of the 4Ms
to achieve our mid-to-long-term vision䞉Increase of employees䠇䠏䠔䠑man䠇䠍䠒䠑man

Sales, ENG

Development, Back Office 䠇䠍䠎䠌 man䠇䠍䠌䠌 manProduction䞉Capital Investment 䠍䠏.䠍 billion yen㻲㼅㻞㻜㻝㻡㻌㻝㼟㼠㻌㼔㼍㼘㼒㻲㼅㻞㻜㻝㻢㻌㻝㼟㼠㻌㼔㼍㼘㼒

Outlook for FY2016 full yearOverview

Net Sales(Billions of yen)䠄㻞㻞㻝㻚㻜䠅

ͤ Apply FY2015 exchange rateincrease/decreace

increase/decreace

䠂
䠞䠋䠝

䠂
䠟䠋䠝

113.0

䕧2.5

䕧2.5

99.0

108.0

䕧3.5

䠇5.2

32.3

31.5

34.0

䕧2.7

䠇5.0

Europe

11.0

11.5

12.5

䠇4.3 䠇13.4

Asia

59.2

56.0

61.5

䕧5.5

(China)(25.8)(26.0)(29.5)

䠇0.6 䠇14.2

FY2015䠝

FY2016
䠞

FY2016
䠟䯲Domestic

115.9

113.0

Overseas102.6

America

Effect ofexchange rate
䕧9.0

㻞㻝㻤㻚㻡㻞㻝㻞㻚㻜

䡚䡚

䠇3.8

 㻜㻲㼅㻞㻜㻝㻡㻲㼅㻞㻜㻝㻢



Outlook for FY2016 full yearOverview

Operating Income(Billions of yen)䠄㻞㻟㻚㻞䠅
Cost up 䕧5.7
(mainly by priorinvestments)

䠘Factor for prior investments䠚䞉Increase of employees

Effect ofexchange rate
䕧4.5



Sales, ENG

䠇䠑䠌䠌man䠇䠎䠑䠌manDevelopment, Back Office 䠇䠍䠑䠌man


㻝㻤㻚㻥㻌

㻝㻟㻚㻜㻌
Production䠇䠍䠌䠌man䞉Capital Investment 䠎䠏.䠌 billion yen㻲㼅㻞㻜㻝㻡

㻲㼅㻞㻜㻝㻢

Current Business Situation, Change in DemandOverview

䠘 Current Business Situation 䠚䞉Domestic䠖 Sales and production of automobile have decreased.
Industry of machinery and construction machine have been weak.
䞉Overseas䠖 Though economy is slowing down , demand have been steady.
Emerging countries including China
ĺ Modernization, high-functionality

䠘Change in Demand䠚䞉Automobile : EV, FCV is getting more and more popularĺ Demand for Tools, Components will decrease䞉Low birthrate and longevity , shortage of workers at production sites
ĺ Improving productivty by “ IoT ” and “AI” technology
ĺ Automation and systematization in the field of production
is getting popular.
Change of Management Policy
Net Sales(Billions of yen)㻠㻜㻜㻟㻜㻜

Becoming a comprehensive machinery manufacture
by focusing on robot business.

㻠㻜㻜㻚㻜Aiming to sell a variety of robotic systems tovarious types of industry.
㻻㼔㼑㼞㼟㻞㻝㻤㻚㻞㻾㼛㼎㼛㼠㻝㻢㻢㻚㻜㻝㻣㻞㻚㻞㻝㻣㻡㻚㻢㻜
FY 㻞㻜㻝㻝

㻝㻞

㻝㻟

㻞㻜㻜

Overview

㻞㻝㻤㻚㻡

㻞㻝㻞㻚㻜

Improving each aspectof the 4Ms(Development, Sales,Production)

㻝㻜㻜㻝㻠

㻝㻡

㻝㻢

㻝㻣

㻝㻤

㻝㻥

㻞㻜



Strengthening the ability of System Integration. Overview
NOT “just selling robots” BUT “selling system that include robots”
To realize automation for many customers in the field of industrial machinery

Main contents
䞉Showrooms
䞉Demonstrationand test area
䞉Robot-SchoolRobot FA Exhibition Hall䠄Toyama Head Office䠅

opened in Oct. 2015
Opening Robot Technical Centers around the world Overview
䕿Shanghai Technical center
will open in the biggest exhibition hallin China (Nov,2016)

Tsingtau
ShanghaiTaipei
Guangzhou

Opening technical centers in 10 locations.
䠄Detroit, Atlanta, San Jose, Mexico, Germany, Thailand䠅Strengthening robot business

Overview
Manufacturing Plant

Expanding production in China

Improving the structure of development
and production in Toyama Head Office

Indiana, USA
Robot Business
Employees(Compared to FY2015)

Rayong,Thailand

CapitalInvestment

䡚FY2016

FY2017

䠇300

䠇500 over7.0
billions yen

13.0
billions yen
stConsolidated Financial Highlights of FY2016 1st half FY2016 1 Half(Billions of yen)

FY2015
1st half (䠝)FY2016
1st half (B)㻝㻜㻣㻚㻟Net sales

Increase/Decrease(䠂) (B) – (A)㻝㻜㻢㻚㻞㻔䕧㻝㻚㻝䠂㻕

䕧㻝㻚㻝

OperatingIncome㻔㻥㻚㻜䠂㻕㻥㻚㻢㻔㻢㻚㻝䠂㻕

㻢㻚㻠㻔䕧㻟㻟㻚㻠䠂㻕

䕧㻟㻚㻞

Ordinary
Income㻔㻤㻚㻠䠂㻕㻥㻚㻜㻔㻠㻚㻝䠂㻕

㻠㻚㻟㻔䕧㻡㻝㻚㻢䠂㻕

䕧㻠㻚㻢

㻞㻚㻣

㻔䕧㻡㻞㻚㻡䠂㻕䕧㻞㻚㻥Net Income㻡㻚㻣Financial data

FY2016 1st Half(Billions of yen)

FY2015
1st half (䠝)Increase/Decrease

FY2016
1st half (B)(䠂)(B) – (A)ROE㻝㻝㻚㻥䠂

㻡㻚㻠䠂䕧㻢㻚㻡㼜㼛㼕㼚㼠

Total Assets㻞㻢㻤㻚㻠㻞㻢㻢㻚㻥䕧㻝㻚㻠

Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt䠄㻟㻣㻚㻝䠂䠅 㻥㻥㻚㻢䠄㻟㻢㻚㻝䠂䠅㻥㻢㻚㻟䕧㻟㻚㻟㻣㻝㻚㻡䠄㽢㻜㻚㻢䠅㻤㻝㻚㻥㻗㻝㻜㻚㻠䠄㽢㻜㻚㻡䠅(Net D/E ratio)

Capacity investment

㻝㻜㻚㻢

㻝㻟㻚㻝

㻗㻞㻚㻡

Depreciation andamortization㻢㻚㻞㻢㻚㻢

㻗㻜㻚㻟

㻢㻘㻠㻜㻥

㻢㻘㻣㻥㻠

㻗㻟㻤㻡㻝㻝㻥㼥㼑㼚㻝㻟㻡㼥㼑㼚㻝㻝㻠㼥㼑㼚㻝㻞㻢㼥㼑㼚

5 yen appreciation
against USD
9 yen appreciation
against Euro

Number of employees
Exchange rate(USD)(Euro)

Sales by Region and Market Segment(Billions of yen)

Sales by region

FY2016 1st Half

Sales by market䠍䠌䠓㻚䠏䠍䠌䠒㻚䠎Europe 䠑.䠑

Europe 䠒.䠍

䠇䠍䠌㻚䠔䠂America 䠍䠐.䠓America 䠍䠑.䠐䠇䠐㻚䠏䠂Asia 䠎䠔.䠓Asia 䠎䠔.䠏

䕧䠍㻚䠐䠂㻶㼍㼜㼍㼚㻌䠑䠔㻚䠎㻶㼍㼜㼍㼚 䠑䠒㻚䠎䕧䠏㻚䠐䠂䠍䠌䠓㻚䠏䠍䠌䠒㻚䠎Energy andInfrastructure
䠎䠎.䠔

Energy andInfrastructure
䠎䠍.䠐

Industrialmachinery/Market䠎䠕.䠔

Industrialmachinery/Market䠏䠍.䠓

Automobile䠑䠐㻚䠓

Automobile䠑䠏㻚䠍㻲㼅㻞㻜㻝㻡㻌㻝㼟㼠㻌㼔㼍㼘㼒㻲㼅㻞㻜㻝㻢㻌㻝㼟㼠㻌㼔㼍㼘㼒䕧䠒㻚䠍䠂䠇䠒㻚䠐䠂䕧䠎㻚䠕䠂

㻲㼅㻞㻜㻝㻡㻌㻝㼟㼠㻌㼔㼍㼘㼒㻲㼅㻞㻜㻝㻢㻌㻝㼟㼠㻌㼔㼍㼘㼒Sales and Operating Income by Business Segments

FY2016 1st Halfͤ Apply FY2015 1st half exchange rate

FY2015

1st Half (A)MACINERY

FY2016
1st Half

ͤFY2016
1st Half (B)(Billions of yen)(䠂) (B)䠉(A)Cutting Tools

䠍䠒.䠒

䠍䠒.䠑

䠍䠒.䠔 㻔䠇㻝㻚㻡䠂㻕㻌㻌㻌 䠇㻜㻚㻞

Machine Tools

䠔.䠓

䠍䠍.䠐

䠍䠍.䠐

㻔䠇㻟㻞㻚㻜䠂㻕㻌 䠇㻞㻚㻣

Robots䠍䠌.䠓

䠍䠌.䠍

䠍䠌.䠓

㻔䠇㻜㻚㻝䠂㻕㻌 䠇㻜Net Sales㻟㻢㻚㻜㻟㻤㻚㻝㻟㻥㻚㻜㻔䠇㻤㻚㻠䠂㻕㻌 䠇㻟㻚㻜

Operating
Income䠄㻝㻝㻚㻜䠂䠅 㻟㻚㻥Bearings㻟㻤㻚㻤㻟㻢㻚㻣㻟㻤㻚㻢 㻔䕧㻜㻚㻠䠂㻕㻌 䕧㻜㻚㻝

HydraulicEquipment㻞㻟㻚㻣㻞㻠㻚㻞㻞㻠㻚㻣Net Sales㻢㻞㻚㻢㻢㻜㻚㻥㻢㻟㻚㻠 㻔䠇㻝㻚㻞䠂㻕㻌 䠇㻜㻚㻣

Operating
IncomeNet Sales
Operating
Income㻠㻚㻣㻤㻚㻢䠄㻝㻝㻚㻝䠂䠅 㻜㻚㻥&TO
OLS

Components
Others䠄㻣㻚㻢䠂䠅䠄㻡㻚㻝䠂䠅䠄㻣㻚㻜䠂䠅㻝㻜㻣㻚㻟

Net Sales
Total Operating
Income䠄㻣㻚㻠䠂䠅䠄㻥㻚㻜䠂䠅㻥㻚㻢㻞㻚㻤㻟㻚㻝㻣㻚㻜㻜㻚㻠㻝㻜㻢㻚㻞䠄㻢㻚㻝䠂䠅㻢㻚㻠䠄㻤㻚㻤䠂䠅䠄㻢㻚㻡䠂䠅䠄㻤㻚㻡䠂䠅㻟㻚㻠 㻔䕧㻝㻞㻚㻝䠂㻕㻌 䕧㻜㻚㻠㻠㻚㻝 䠄䕧㻝㻟㻚㻣䠂㻕㻌 䕧㻜㻚㻢㻣㻚㻝 㻔䕧㻝㻣㻚㻡䠂㻕 䕧㻝㻚㻡㻜㻚㻢 䠄䕧㻟㻣㻚㻝䠂䠅 䕧㻜㻚㻟㻝㻜㻥㻚㻢䠄㻣㻚㻡䠂䠅㻔䠇㻟㻚㻥䠂㻕㻌 䠇㻜㻚㻥㻔䠇㻞㻚㻝䠂㻕䠇㻞㻚㻞㻤㻚㻞 䠄䕧㻝㻡㻚㻟䠂䠅 䕧㻝㻚㻠 

Factors for Change in Operating Income FY2016 1 Halfst(Billions of yen)

䠄Profit up䠖2.4䠅

䠄Profit down䠖5.6䠅

Improved operatingrate 䠇0.9

Price down 䕧0.5

Cost reduction 䠇1.5

Increase in fixed cost and SGA 䕧3.3



Effect of Exchange rate 䕧1.8





䕧3.2

㻥㻚㻢

㻢㻚㻠




㻲㼅㻞㻜㻝㻡㻌㻝㼟㼠㻌㼔㼍㼘㼒㼜㼞㼛㼒㼕㼠㻌㼡㼜㼜㼞㼛㼒㼕㼠㻌㼐㼛㼣㼚㻲㼅㻞㻜㻝㻢㻌㻝㼟㼠㻌㼔㼍㼘㼒





Consolidated Financial Highlights of FY2016 Plan

FY2016 e(Billions of yen)

FY2015(A)㻞㻝㻤㻚㻡Net SalesOperatingIncome
Ordinary IncomeNet Income

FY2016
Forecast(B)Increase/Decrease(Change Rate)(B) – (A)㻞㻝㻞㻚㻜㻔䕧㻟㻚㻜䠂㻕䕧㻢㻚㻡㻔㻤㻚㻣䠂㻕㻝㻤㻚㻥㻔㻢㻚㻝䠂㻕㻝㻟㻚㻜㻔䕧㻟㻝㻚㻠䠂㻕㻌䕧㻡㻚㻥㻔㻣㻚㻥䠂㻕㻝㻣㻚㻟㻔㻠㻚㻡䠂㻕㻥㻚㻡㻔䕧㻠㻡㻚㻝䠂㻕㻌䕧㻣㻚㻤㻢㻚㻜㻔䕧㻠㻤㻚㻞䠂㻕䕧㻡㻚㻡㻝㻝㻚㻡

Consolidated Financial Data

FY2016 e(Billions of yen)

FY2016
Forecast(B)FY2015(A)

Increase/Decrease(B) – (A)ROE㻝㻝㻚㻥䠂

㻡㻚㻥䠂䕧㻢㻚㻜㼜㼛㼕㼚㼠

Total Assets㻞㻢㻤㻚㻝㻞㻢㻡㻚㻜䕧㻟㻚㻝䠄㻟㻤㻚㻟䠂䠅 㻝㻜㻞㻚㻡䠄㻟㻣㻚㻢䠂䠅 䠕䠕㻚䠓䕧㻞㻚㻤䠄㽢㻜㻚㻢䠅

㻤㻟㻚㻜

㻗㻝㻜㻚㻝

Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt
(Net D/E ratio)䠄㽢㻜㻚㻡䠅㻣㻞㻚㻤

Capacity investment㻞㻟㻚㻞㻞㻟㻚㻜䕧㻜㻚㻞

Depreciation andamortization㻝㻞㻚㻥㻝㻟㻚㻣㻗㻜㻚㻣

Number of employees㻢㻘㻡㻡㻣㻣㻘㻜㻜㻜㻗㻠㻠㻟䠍䠎䠌㼥㼑㼚䠍䠏䠑㼥㼑㼚䠍䠌䠕㼥㼑㼚䠍䠎䠍㼥㼑㼚

11 yen appreciation
against USD
14 yen appreciation
against Euro

Exchange rate

(USD)
(Euro)

Sales by Region and Market Segment(Billions of yen)

Sales by region䠎䠍䠔㻚䠑Europe 䠍䠍.䠌




America 䠏䠎.䠏Asia 䠑䠕.䠎

䠎䠍䠔㻚䠑
䠇䠐㻚䠏㻑



America 䠏䠍.䠑 䕧䠎㻚䠓㻑

Asia 䠑䠒.䠌



FY2016 eSales by market䠎䠍䠎㻚䠌Europe 䠍䠍.䠑





䕧䠑㻚䠑㻑

Energy andInfrastructure
䠐䠒.䠌

䠎䠍䠎㻚䠌
Energy andInfrastructure 䕧䠍䠌㻚䠔㻑䠐䠍.䠌

Industrial
machinery/Market䠒䠌.䠏

Industrial
machinery/Market䠒䠑.䠌

Automobile䠍䠍䠎㻚䠎

Automobile䠍䠌䠒㻚䠌㻲㼅㻞㻜㻝㻡㻲㼅㻞㻜㻝㻢㼑䠇䠓㻚䠔㻑㻶㼍㼜㼍㼚 䠍䠍䠑㻚䠕㻶㼍㼜㼍㼚 䠍䠍䠏㻚䠌 䕧䠎㻚䠑㻑䕧䠑㻚䠑㻑㻲㼅㻞㻜㻝㻡㻲㼅㻞㻜㻝㻢㼑

FY2016 e

Sales and Operating Income by Business Segments(Billions of yen)

FY2015(A)
MACINERY

Cutting Tools
Machine Tools
Robots&Net SalesTOOLS

Operating Income

Components
OthersBearings
Hydraulic Equipment
Net Sales
Operating Income䠄㻢㻚㻥䠂䠅䠄㻝㻜㻚㻟䠂䠅

Total Operating Income(B)䠉(A)㻔䕧㻝㻚㻥䠂㻕㻌䕧㻜㻚㻢㻔䕧㻜㻚㻡䠂㻕㻌䕧㻜㻚㻝㻔䠇㻝㻣㻚㻡䠂㻕㻌䠇㻟㻚㻣㻔䠇㻠㻚㻜䠂㻕㻌䠇㻟㻚㻝㻔䕧㻞㻟㻚㻢䠂㻕㻌㻌䕧㻞㻚㻜㻔䕧㻣㻚㻢䠂㻕㻌䕧㻡㻚㻥㻔䕧㻟㻚㻞䠂㻕㻌䕧㻝㻚㻡㻔䕧㻡㻚㻥䠂㻕㻌䕧㻣㻚㻠㻡㻚㻢䠄䕧㻟㻢㻚㻜䠂䠅䕧㻟㻚㻝㻝㻢㻚㻡㻝㻠㻚㻡㻔䕧㻝㻞㻚㻠䠂㻕䕧㻞㻚㻜㻝㻚㻣 䠄㻢㻚㻞䠂䠅㻜㻚㻥䠄䕧㻠㻣㻚㻝䠂䠅䕧㻜㻚㻤㻞㻝㻞㻚㻜㻔䕧㻟㻚㻜䠂㻕䕧㻢㻚㻡㻝㻟㻚㻜䠄䕧㻟㻝㻚㻠䠂䠅䕧㻡㻚㻥㻤㻚㻣䠄㻤㻚㻟䠂䠅䠄㻠㻚㻣䠂䠅㻞㻝㻤㻚㻡Net Sales䠄㻤㻚㻣䠂䠅

Increase/Decrease(%)

㻟㻟㻚㻢㻞㻜㻚㻢㻞㻝㻚㻞㻣㻡㻚㻠䠄㻝㻝㻚㻟䠂䠅㻤㻚㻡㻣㻣㻚㻥㻠㻤㻚㻡㻝㻞㻢㻚㻠Net Sales
Operating IncomeFY2016Forecasts (B)㻝㻤㻚㻥䠄㻢㻚㻝䠂䠅㻟㻟㻚㻜㻞㻜㻚㻡㻞㻡㻚㻜㻣㻤㻚㻡㻢㻚㻡㻣㻞㻚㻜㻠㻣㻚㻜㻝㻝㻥㻚㻜

Factors for Change in Operating Income FY2016 e(Billions of yen)㻞㻡䠄Profit up䠖4.3䠅 䠄Profit down䠖10.2䠅

㻞㻜

Cost reduction 䠇3.3

Increase in fixed cost and SGA 䕧4.8

Improved operatingrate 䠇1.0

Price down 䕧0.9

Effect of Exchange rate 䕧4.5

䕧5.9
㻝㻡㻝㻤㻚㻥
䡚䡚㻝㻟㻝㻜㻜㻲㼅㻞㻜㻝㻡㼜㼞㼛㼒㼕㼠㻌㼡㼜㼜㼞㼛㼒㼕㼠㻌㼐㼛㼣㼚㻲㼅㻞㻜㻝㻢㼑㼔䡐䡐䡌㻦㻛㻛㼣㼣㼣㻚㼚㼍㼏㼔㼕㻙㼒㼡㼖㼕㼗㼛㼟㼔㼕㻚㼏㼛㻚㼖㼜㻛

These materials describe our future earnings forecasts and business plans,
and are based on the assumption of an economic environment andbusiness policies that remain fixed as they are now. Therefore, please
note that actual earnings are subject to numerous factors, including
market fluctuations and currency fluctuations, which may result in adifferent earnings forecast.

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