Interium Business Resultsfor Fiscal Year 2017

July 20, 2017Outline1䠊Business Overview of FY2017

2~92䠊Overview of FY2017 1st Half Year
Financal Results

10~15

3. Outlook for FY2017 Full Year

16~21





FY2017 1st Half Results & Full Year Forecast

Overview(Billion yen)

FY2016
1st halfFY2017Full Year䠄㼞㼍㼠㼑㻌㼛㼒㻌㼕㼚㼏㼞㼑㼍㼟㼑䠅Net sales
Operatingincome
Ordinaryincome

1st halfFull Yearforecast䠄䠇䠓㻚䠔㻑䠅㻝㻜㻢㻚㻞㻞㻝㻝㻚㻠䠄䠇䠔㻚䠔㻑䠅㻝㻝㻠㻚㻠䠄䠇䠍䠕㻚䠔㻑䠅㻔䠒㻚䠍㻑㻕㻌㻌㻌㻢㻚㻠㻔䠑㻚䠏㻑㻕 㻝㻝㻚㻝䠄䠇䠐䠏㻚䠒䠂䠅㻔䠒㻚䠓㻑㻕㻌㻌㻌㻣㻚㻣䠄䠇䠑䠑䠊䠕㻑䠅㻔䠐㻚䠍㻑㻕㻌㻌 㻠㻚㻟㻔䠏㻚䠓㻑㻕㻌㻌 㻣㻚㻣㻔䠓㻚䠌㻑㻕㻝㻢㻚㻜䠄䠇䠔䠌䠊䠏䠂䠅㻔䠑㻚䠕㻑㻕㻌㻌 㻢㻚㻣䠄䠇䠓䠍䠊䠔㻑䠅Net income㻞㻟㻜㻚㻜㻔䠒㻚䠍㻑㻕㻌 㻝㻠㻚㻜䠄㽢䠎䠊䠏䠅㻞㻚㻣㻟㻚㻥㻠㻚㻢㻥㻚㻜USD䠍䠍䠐 㼥㼑㼚䠍䠌䠕 㼥㼑㼚䠍䠍䠏 㼥㼑㼚䠍䠍䠍 㼥㼑㼚Euro䠍䠎䠒 㼥㼑㼚䠍䠎䠍 㼥㼑㼚䠍䠎䠍 㼥㼑㼚䠍䠎䠌 㼥㼑㼚RMB䠍䠓䠊䠑 㼥㼑㼚䠍䠒䠊䠑 㼥㼑㼚䠍䠒䠊䠐 㼥㼑㼚䠍䠒䠊䠑 㼥㼑㼚

Sales by Business Segment(Billion yen)㻝㻝㻠㻚㻠㻝㻜㻢㻚㻞㻯㼡㼠㼠㼕㼚㼓㻌㼀㼛㼛㼘㼟Overview

㻝㻢㻚㻡

FY2016
1st half䠝㻝㻢㻚㻡㻔㻗㻜㻚㻞㻕

FY2017
1st half䠞

increase/decreace䠂䠞䠋䠝㻥㻚㻡㻔㻙㻝㻢㻚㻤㻕CuttingTools㻝㻢㻚㻡㻝㻢㻚㻡㻗㻜㻚㻞㻝㻢㻚㻜㻔㻗㻡㻣㻚㻥㻕

MachineTools

㻝㻝㻚㻠㻥㻚㻡㻙㻝㻢㻚㻤

Robots㻝㻜㻚㻝㻝㻢㻚㻜㻙㻡㻣㻚㻥

Bearings

㻟㻢㻚㻣㻟㻣㻚㻢

㻗㻞㻚㻢

HydraulicEquipment㻞㻠㻚㻞㻞㻣㻚㻢㻗㻝㻠㻚㻞

Others㻣㻚㻜㻢㻚㻥㻙㻝㻚㻡

Total㻝㻜㻢㻚㻞㻝㻝㻠㻚㻠㻗㻣㻚㻤㻹㼍㼏㼔㼕㼚㼑㻌㼀㼛㼛㼘㼟㻝㻝㻚㻠㻾㼛㼎㼛㼠㼟㻝㻜㻚㻝㻮㼑㼍㼞㼕㼚㼓㼟㻟㻣㻚㻢㻔㻗㻞㻚㻢㻕㻟㻢㻚㻣㻴㼥㼐㼞㼍㼡㼘㼕㼏㻱㼝㼡㼕㼜㼙㼑㼚㼠㻞㻣㻚㻢㻔㻗㻝㻠㻚㻞㻕㻞㻠㻚㻞㻻㼠㼔㼑㼞㼟㻣㻚㻜㻢㻚㻥㻔㻙㻝㻚㻡㻕㻲㼅㻞㻜㻝㻢㻌㻝㻴㻲㼅㻞㻜㻝㻣㻌㻝㻴Sales by Region(Billion yen)㻝㻝㻠㻚㻠㻝㻜㻢㻚㻞

Overview

㻭㼙㼑㼞㼕㼏㼍㻝㻡㻚㻠㻱㼡㼞㼛㼜㼑

FY2016
1st half䠝㻝㻢㻚㻡㻔㻗㻣㻚㻞㻕

FY2017
1st half䠞

increase/decreace䠂䠞䠋䠝㻢㻚㻣㻔㻗㻝㻜㻚㻜㻕Overseas(%)

㻠㻥㻚㻥㻔㻠㻣㻚㻜㻑㻕

㻡㻣㻚㻟㻔㻡㻜㻚㻝㻑㻕䠇㻝㻠㻚㻤㻝㻥㻚㻞㻔㻗㻞㻝㻚㻡㻕

America㻝㻡㻚㻠

㻝㻢㻚㻡

䠇㻣㻚㻞

㻝㻠㻚㻤㻔㻗㻝㻤㻚㻝㻕Europe㻢㻚㻝

㻢㻚㻣

㻗㻝㻜㻚㻜

Asia㻞㻤㻚㻟

㻟㻠㻚㻜

㻗㻞㻜㻚㻜

(China)㻔㻝㻞㻚㻡㻕

㻔㻝㻠㻚㻤㻕

㻔㻗㻝㻤㻚㻝㻕

Japan㻡㻢㻚㻞

㻡㻣㻚㻝

㻗㻝㻚㻢

Total㻝㻜㻢㻚㻞㻝㻝㻠㻚㻠㻗㻣㻚㻤㻢㻚㻝㻭㼟㼕㼍㻔㼑㼤㼏㼑㼜㼠㻌㻯㼔㼕㼚㼍㻕
㻝㻡㻚㻤

㻯㼔㼕㼚㼍


㻝㻞㻚㻡



㻶㼍㼜㼍㼚
㻡㻢㻚㻞

㻡㻣㻚㻝㻔㻗㻝㻚㻢㻕㻲㼅㻞㻜㻝㻢㻌㻝㻴㻲㼅㻞㻜㻝㻣㻌㻝㻴

To Achieve the Long-Term VisionOverview
Operating Income(Billion yen)

Net sales(Billion yen)400300

FY2020 Vision
Net sales䠖400 billion yen Operating income:60 billion yen

400

Becoming a comprehensive machinery manufacturewith its robotics business at its core.

60

5040218
200

166

172

218

211

230
Improving the 4Ms
in each aspect ofdevelopment, sales,and production

175

134

20

100

18.5
14.6
8.2

30

18.9

16.0
10.6

12.3

1011.100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FY

Strengthening Robotics BusinessOverview‫ۑ‬Expanding product lineup for industrial machinery market
࣭Expanding the series of small-sized robots
࣭Developing and launching innovative products onto the market‫ۑ‬Strengthening sales organization:
providing robotics systems
࣭Opening seven Technical Centers around the world(ex.Shanghai, Guangzh, Qingdao, Bangkok, Detroit and other locations)࣭Increasing the number of sales people in Japan and overseas
࣭Expanding demand for automationby using sales channels of cutting tools,
bearings and hydarulic equipment ,etc

䠩䠶䠌䠐Technical Center in Shaghai‫ۑ‬Improvement of production system
࣭Expanding production capacity in Japan and China
࣭Promoting establish of smooth, unmanned and flexible manpower lineExpanding Orders Received and Sales

Overview‫ۑ‬Expanding industrial machinery anddistribution market
࣭Developing new products to help customers
improve productivity and save energy-Expanding product lineup of taps and carbide drills-Expanding the range of energy-saving hydraulic
AQUA Drill EX
equipment to higher pressure and capacity
Flat-Launching skiving gear shaping machine onto the markets
࣭Activating distribution-Expanding association of overseas sales agents‫ۑ‬Cultivating automobile market

Hyper Z Tap

High-pressure
Piston Pump

࣭Approaching to overseas automobile manufacturers
࣭Approaching to automobile manufacturers so thatthey will start adapting NACHI’s embedded products
and actuator for fuel-efficient carssuch as EVs
Car Control Valve (CCV)

Skiving Gear Shaping MachineImprovement of Production System‫ۑ‬Expanding production capacity
࣭Expanding production capacity and in-house production of hydraulic equipment
and CCV in Japan and China
࣭Strengthening automation and flexible manpower line of cutting tools and bearings
࣭Starting operation of new plants in Thailand and Mexico‫ۑ‬Improvement activities at overseas plants
㸺China㸼࣭Expanding production capacity and in-houseproduction of hydraulic equipment and CCV㸺Thailand㸼࣭ Starting integrated production of bearings
from forging to shipment (in March, 2017)
㸺Mexico㸼࣭Starting full-scale operation of thebearing factory (in March, 2017)Consolidated Financial Highlights of FY2017 1st half

FY2017 1st Half(Billion yen)

FY2016
1st half (䠝)㻝㻜㻢㻚㻞Net sales

Increase/Decrease(䠂) (B) – (A)FY2017
1st half (B)㻝㻝㻠㻚㻠㻔䠇㻣㻚㻤䠂㻕

䠇㻤㻚㻞

OperatingIncome㻔㻢㻚㻝䠂㻕㻢㻚㻠㻔㻢㻚㻣䠂㻕

㻣㻚㻣㻔䠇㻝㻥㻚㻤䠂㻕

䠇㻝㻚㻞

OrdinaryIncome㻔㻠㻚㻝䠂㻕㻠㻚㻟㻔㻡㻚㻥䠂㻕㻢㻚㻣㻔䠇㻡㻡㻚㻥䠂㻕

䠇㻞㻚㻠

㻠㻚㻢

㻔䠇㻣㻝㻚㻤䠂㻕䠇㻝㻚㻥Net Income㻞㻚㻣Consolidated Financial Data

FY2017 1st Half(Billion yen)

Increase/Decrease(B) – (A)FY2017
1st half (B)FY2016
1st half (䠝)ROE㻡㻚㻠䠂㻥㻚㻟䠂䠇㻟㻚㻥㼜㼛㼕㼚㼠㼟

Total Assets㻞㻢㻢㻚㻥㻞㻣㻠㻚㻢䠇㻣㻚㻢䠄㻟㻢㻚㻝䠂䠅㻥㻢㻚㻟 䠄㻟㻣㻚㻜䠂䠅 㻝㻜㻝㻚㻡䠇㻡㻚㻞䠄㽢 㻜㻚㻢䠅㻤㻝㻚㻥㻤㻝㻚㻟

䠉㻜㻚㻢

Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt
(Net D/E ratio)䠄㽢 㻜㻚㻢䠅

Capacity investment㻝㻟㻚㻝㻝㻜㻚㻜

䠉㻟㻚㻝

Depreciation andamortization

㻢㻚㻢

㻣㻚㻞

䠇㻜㻚㻢

㻢㻘㻣㻥㻠

㻣㻘㻜㻜㻥

㻗㻞㻝㻡

㻝㻝㻠㻌㼥㼑㼚
㻝㻞㻢㻌㼥㼑㼚
㻝㻣㻚㻡㻌㼥㼑㼚

㻝㻝㻟㻌㼥㼑㼚
㻝㻞㻝㻌㼥㼑㼚
㻝㻢㻚㻠㻌㼥㼑㼚

Number of employees

Exchange rate (USD)(Euro)(RMB)

Sales by Region and Market Segment(Billion yen)

Sales by region
䠍䠌䠒㻚䠎



Europe 䠒.䠍

㻝 㼥㼑㼚㻌㼍㼜㼜㼞㼑㼏㼕㼍㼠㼕㼛㼚㻡㻌㼥㼑㼚㻌㼍㼜㼜㼞㼑㼏㼕㼍㼠㼕㼛㼚㻝㻚㻝㻌㼥㼑㼚㻌㼍㼜㼜㼞㼑㼏㼕㼍㼠㼕㼛㼚 

FY2017 1st Half

Sales by market䠍䠍䠐㻚䠐Europe 䠒.䠓

䠇䠍䠌㻚䠌䠂

America 䠍䠒.䠑 䠇䠓㻚䠎䠂America 䠍䠑.䠐Asia 䠎䠔.䠏

Asia 䠏䠐.䠌

䠇䠎䠌㻚䠌䠂Japan 䠑䠒.䠎Japan 䠑䠓㻚䠍䠇䠍㻚䠒䠂㻲㼅㻞㻜㻝㻢㻌㻝㻴㻲㼅㻞㻜㻝㻣㻌㻝㻴

䠍䠍䠐㻚䠐
䠍䠌䠒㻚䠎
Energy andInfrastructure
䠎䠍.䠐

Industrial
machinery/Distribution
䠏䠍.䠓

Energy andInfrastructure 䠇䠍䠎㻚䠍䠂䠎䠐.䠌

Industrialmachinery/Distribution 䠇䠍䠌㻚䠐䠂
䠏䠑.䠌



Automobile䠑䠏㻚䠍

Automobile䠑䠑㻚䠐㻲㼅㻞㻜㻝㻢㻌㻝㻴㻲㼅㻞㻜㻝㻣㻌㻝㻴

䠇䠐㻚䠏䠂







FY2017 1st Half

Sales and Operating Income by Business Segments(Billion yen)

FY2017
1st half (B)FY2016
1st half (A)MACINERY&TOOLSComponent
S

Cutting Tools

䠍䠒.䠑

䠍䠒.䠑

㻔䠇㻜㻚㻞䠂㻕㻌㻌㻌㻌䠇㻜

Machine Tools

䠍䠍.䠐

䠕.䠑 㻔䠉㻝㻢㻚㻤䠂㻕㻌㻌䠉㻝㻚㻥Robots䠍䠌.䠍

䠍䠒.䠌 㻔䠇㻡㻣㻚㻥䠂㻕㻌㻌㻌䠇㻡㻚㻤Net Sales㻟㻤㻚㻝㻠㻞㻚㻝㻔䠇㻝㻜㻚㻠䠂㻕䠇㻟㻚㻥㻟㻚㻝 㻔䠇㻝㻟㻚㻟䠂㻕䠇㻜㻚㻟㻟㻣㻚㻢 㻔䠇㻞㻚㻢䠂㻕㻌㻞㻣㻚㻢 㻔䠇㻝㻠㻚㻞䠂㻕㻌㻌㻌㻢㻡㻚㻟 㻔䠇㻣㻚㻞䠂㻕㻌㻌㻗㻜㻚㻥Operating Income䠄㻣㻚㻠䠂䠅

Hydraulic Equipment
Net Sales
Operating Income䠄㻡㻚㻝䠂䠅

Net Sales
Operating Income䠄㻣㻚㻜䠂䠅䠄㻣㻚㻡䠂䠅㻟㻚㻝㻣㻚㻜㻜㻚㻠䠄㻢㻚㻟䠂䠅䠄㻡㻚㻢䠂䠅㻝㻜㻢㻚㻞Net Sales
Total Operating Income㻞㻚㻤㻟㻢㻚㻣
㻞㻠㻚㻞㻢㻜㻚㻥

Bearings

Others(B) – (A)䠄㻢㻚㻝䠂䠅㻢㻚㻠㻠㻚㻝 䠄㻗㻟㻞㻚㻟䠂㻕㻢㻚㻥 㻔䠉㻝㻚㻡䠂㻕㻌㻜㻚㻟 䠄䠉㻞㻝㻚㻤䠂䠅䠄 Profit up 䠖4.8䠅㻗㻝㻚㻜䠉㻜㻚㻝䠉㻜㻚㻝㻔䠇㻣㻚㻤䠂㻕䠇㻤㻚㻞㻣㻚㻣䠄㻗㻝㻥㻚㻤䠂䠅䠇㻝㻚㻞䠄㻢㻚㻣䠂䠅䠄 Profit down䠖 3.5䠅Improved operatingrate 䠇 䠏.䠎

䠇㻠㻚㻠

㻝㻝㻠㻚㻠

Factors for Change in Operating Income(Billion yen)

㻗㻟㻚㻠



FY2017 1st HalfPrice down 䠉䠌.䠓Increase in fixed cost and SGA䠉䠎㻚䠍
Effect of exchange rate䠉䠌㻚䠓

Cost reduction䠇䠍.䠒
䠇䠍.䠏

㻣㻚㻣

㻢㻚㻠



㻲㼅㻞㻜㻝㻢㻌㻝㻴㻼㼞㼛㼒㼕㼠㻌㼡㼜㻼㼞㼛㼒㼕㼠㻌㼐㼛㼣㼚㻲㼅㻞㻜㻝㻣㻌㻝㻴Consolidated Financial Highlights of FY2017 Plan

FY2017 e(Billion yen)

FY2016(A)

FY2017
Forecast(B)

Net Sales㻞㻝㻝㻚㻠

OperatingIncome㻔㻡㻚㻟䠂㻕㻌㻌㻌㻌㻝㻝㻚㻝㻌

Ordinary Income㻔㻟㻚㻣䠂㻕㻌㻣㻚㻣㻌Net Income㻟㻚㻥

Increase/Decrease(%)(B) – (A)㻞㻟㻜㻚㻜㻔㻗㻤㻚㻤䠂㻕䠇㻝㻤㻚㻡㻔㻣㻚㻜䠂㻕㻝㻢㻚㻜㻌㻔㻗㻠㻟㻚㻢䠂㻕䠇㻠㻚㻤㻔㻢㻚㻝䠂㻕㻝㻠㻚㻜㻔㻗㻤㻜㻚㻟䠂㻕䠇㻢㻚㻞㻥㻚㻜㻔㽢㻞㻚㻟㻕䠇㻡㻚㻜

Consolidated Financial Data

FY2017 e(Billion yen)

FY2016(A)FY2017
Forecast(B)㻞㻣㻣㻚㻟㻗㻣㻚㻤䠄㻟㻢㻚㻠䠂䠅 㻥㻤㻚㻜㻌 䠄㻟㻤㻚㻞䠂䠅 㻝㻜㻡㻚㻥㻗㻣㻚㻤㻞㻢㻥㻚㻠

Total Assets
Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt

䠄㽢 㻜㻚㻢䠅 㻤㻞㻚㻠(Net D/E ratio)

Increase/ Decrease(B) – (A)䠄㽢 㻜㻚㻢䠅

㻤㻞㻚㻡㻗㻜

Capacity investment㻞㻝㻚㻣㻞㻝㻚㻡䠉㻜㻚㻞

Depreciation andamortization㻝㻟㻚䠓㻝㻠㻚㻡㻗㻜㻚㻣

Number of employees㻢㻘㻣㻣㻡㻣㻘㻝㻜㻜㻗㻟㻞㻡㻝㻜㻥㻌㼥㼑㼚㻝㻞㻝㻌㼥㼑㼚㻝㻢㻚㻡㻌㼥㼑㼚㻝㻝㻝㻌㼥㼑㼚㻝㻞㻜㻌㼥㼑㼚㻝㻢㻚㻡㻌㼥㼑㼚㻞㻌㼥㼑㼚㻌㼐㼑㼜㼞㼑㼏㼕㼍㼠㼕㼛㼚㻌㻝㻌㼥㼑㼚㻌㼍㼜㼜㼞㼑㼏㼕㼍㼠㼕㼛㼚䠉

Exchange rate(USD)(Euro)(RMB)

Sales by Region and Market Segment
Sales by region(Billion yen)㻞㻜㻜㻝㻡㻜

Sales by market䠎䠏䠌㻚䠌䠎䠍䠍㻚䠐Europe 䠍䠍.䠒Europe 䠍䠏.䠌America 䠏䠐.䠌䠎䠏䠌㻚䠌㻗㻝㻝㻚㻣䠂㻗㻝㻜㻚㻠䠂


䠎䠍䠍㻚䠐

America 䠏䠌.䠓Energy andInfrastructure
䠐䠏.䠓

Asia 䠑䠒.䠌

Industrial
machinery /Distribution
䠑䠓.䠕

Asia 䠒䠔.䠌

FY2017 e㻗㻞㻝㻚㻞䠂


Energy andInfrastructure 䠇㻣㻚㻢䠂䠐䠓.䠌

Industrial
machinery /Distribution 䠇㻞㻜㻚㻥䠂
䠓䠌.䠌



㻝㻜㻜

Japan 䠍䠍䠎㻚䠕Japan 䠍䠍䠑㻚䠌㻲㼅㻞㻜㻝㻢

㻲㼅㻞㻜㻝㻣㻌㻲㼛㼞㼑㼏㼍㼟㼠

㻡㻜

㻗㻝㻚㻤䠂


Automobile䠍䠌䠕㻚䠔

Automobile䠍䠍䠏㻚䠌䠇㻞㻚㻥䠂㻜㻲㼅㻞㻜㻝㻢㻲㼅㻞㻜㻝㻣㻌㻲㼛㼞㼑㼏㼍㼟㼠

FY2017 e

Sales and Operating Income by Business Segments(Billion yen)

FY2016(A)MACINER
Y&TOO
LSComponent
SOthers

Cutting Tools
Machine Tools
RobotsNet Sales䠄㻢㻚㻞䠂䠅

Operating Income
Bearings
Hydraulic Equipment
Net Sales
Operating Income㻟㻞㻚㻣㻞㻜㻚㻜㻞㻞㻚㻠㻣㻡㻚㻞㻠㻚㻢㻣㻞㻚㻤㻠㻥㻚㻠㻝㻞㻞㻚㻞䠄㻠㻚㻡䠂䠅㻡㻚㻡䠄㻢㻚㻣䠂䠅㻝㻟㻚㻥㻜㻚㻥Net Sales
Operating Income

FY2017
Forecast(B)䠄㻣㻚㻤䠂䠅䠄㻡㻚㻟䠂䠅

Total Operating Income㻝㻝㻚㻝㻔䠇㻜㻚㻣䠂㻕㻌䠇㻜㻚㻞㻔䠉㻣㻚㻤䠂㻕㻌䠉㻝㻚㻡㻔䠇㻠㻞㻚㻤䠂㻕㻌䠇㻥㻚㻡㻔䠇㻝㻝㻚㻜䠂㻕㻌䠇㻤㻚㻞㻔䠇㻠㻜㻚㻠䠂㻕㻌㻌䠇㻝㻚㻤㻔䠇㻠㻚㻟䠂㻕㻌䠇㻟㻚㻝㻔䠇㻝㻠㻚㻠䠂㻕㻌䠇㻣㻚㻜㻔䠇㻤㻚㻠䠂㻕㻌 䠇㻝㻜㻚㻞䠄㻢㻚㻠䠂䠅㻤㻚㻡㻔䠇㻡㻟㻚㻡䠂㻕䠇㻞㻚㻥㻔䠇㻜㻚㻠䠂㻕䠇㻜䠄㻣㻚㻝䠂䠅㻝㻠㻚㻜㻝㻚㻜㻔䠇㻢㻚㻢䠂㻕䠇㻜㻞㻟㻜㻚㻜㻔䠇㻤㻚㻤䠂㻕 䠇㻝㻤㻚㻡㻝㻢㻚㻜㻔䠇㻠㻟㻚㻢䠂㻕㻞㻝㻝㻚㻠Net Sales㻟㻟㻚㻜㻝㻤㻚㻡㻟㻞㻚㻜㻤㻟㻚㻡㻢㻚㻡㻣㻢㻚㻜㻡㻢㻚㻡㻝㻟㻞㻚㻡(B) – (A)(%)

䠄㻣㻚㻜䠂䠅

Factors for Change in Operating Income

Increase in fixed cost and SGA䠉䠏㻚䠑

Improved operatingrate 䠇 䠑.䠕



Cost reduction

FY2017 e

䠄 Profit up䠖9.7䠅 䠄 Profit down 䠖4.8䠅

൨ yen

䠇㻠㻚㻤 Price down

䠉䠍.䠏

䠇䠏.䠑

䠇䠐㻚䠕

Effect of exchange rate䠇䠌㻚䠏



㻝㻢




㻝㻝㻚㻝



㻲㼅㻞㻜㻝㻢

㻼㼞㼛㼒㼕㼠㻌㼡㼜㻼㼞㼛㼒㼕㼠㻌㼐㼛㼣㼚㻲㼅㻞㻜㻝㻣㻌㻲㼛㼞㼑㼏㼍㼟㼠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.

