July 18, 2018



OutlineOverview of the Business Results
for the 1st Half of FY2018

䠎䡚 䠑

Business Forecast for FY2018䠒䡚 䠕

Management Strategy䠍䠌䡚䠍䠐

Consolidated Financial Highlights

FY2018 1st half(Billion yen)

FY2017
1st half (A)Net sales

Increase/Decrease(B) – (A)FY2018
1st half (B)㸩㸣 㸩

OperatingIncome㸣㸣㸩㸣  㸩

OrdinaryIncome㸣



㸣



㸩㸣㸩㸣㸫Net Income
Exchange rate\HQ
\HQ\HQ㸦USD㸧㸦Euro㸧㸦RMB㸧\HQ\HQDSSUHFLDWLRQ\HQ \HQGHSUHFLDWLRQ\HQ \HQGHSUHFLDWLRQConsolidated Financial Data

FY2018 1st half(Billion yen)

FY2017
1st half (A)Increase/Decrease(B) – (A)FY2018
1st half (B)ROE㸣㸣㸫SW

Total Assets

㸩 㸦㸣 㸩

Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt(Net D/E Ratio)㸣  㸦



㸩

Capacity Investment㸫

Depreciation andAmortization

㸩



㸩

Number of Employees(people)

Sales by Business Segment and Region
㸺Sales by Business Segment㸼
(Billion yen)

㸺Sales by Region㸼 㻾㼛㼎㼛㼠㼟 㻯㼡㼠㼠㼕㼚㼓㻌㼀㼛㼛㼘㼟㻹㼍㼏㼔㼕㼚㼑㻌㼀㼛㼛㼘㼟(YonY) 

$PHULFDV(XURSH   

$VLD H[FHSW &KLQD


&KLQD


FY2018 1st half 㻮㼑㼍㼞㼕㼚㼓㼟 



-DSDQ


㻴㼥㼐㼞㼍㼡㼘㼕㼏㻱㼝㼡㼕㼜㼙㼑㼚㼠㻻㼠㼔㼑㼞㼟 

  㻓㻝㻣㻌䠍䠤㻓㻝㻤 䠍䠤㻓㻝㻣㻌䠍䠤㻓㻝㻤㻌䠍䠤

Causes of Changes in Operating Income(Billion yen)

FY2018 1st half㸦 Increase : 5.0㸧 㸦 Decrease : 4.6㸧Effect of exchange rate+0.2

Rise in material price-1.9Cost reduction


+1.3

Decrease in Sales prices -0.2

Operating rate
improvement +3.5

Increase in fixed costs and SGA-2.5㸩㻤㻚㻝㻣㻚㻣㻓㻝㻣㻌䠍䠤㻯㼍㼡㼟㼑㼟㻌㼛㼒㻌㼕㼚㼏㼞㼑㼍㼟㼑㻯㼍㼡㼟㼑㼟㻌㼛㼒㻌㼐㼑㼏㼞㼑㼍㼟㼑㻓㻝㻤㻌䠍䠤

FY2018 eConsolidated Financial Highlights (FY2018 Plan)(Billion yen)

FY2017(A)Net sales

Increase/Decrease(B) – (A)FY2018Plan (B)㸩㸣㸩

OperatingIncome㸣㸣㸩㸣

㸩

OrdinaryIncome㸣㸣㸩㸣㸩㸩㸣 㸩

\HQ\HQ\HQ\HQ\HQ\HQNet Income
Exchange rate
㸦USD㸧㸦Euro㸧㸦RMB㸧

\HQDSSUHFLDWLRQ
\HQGHSUHFLDWLRQ\HQGHSUHFLDWLRQͤThere is no revision of the financial result forecast announced on January 11, 2018.

Consolidated Financial Data

FY2018 e(Billion yen)

FY2017(A)

FY2018Plan (B)

Increase/Decrease(B) – (A)ROE㸣㸣

㸩SW

Total Assets

㸩㸣 㸣 㸩   㸩

Capacity Investment㸫

Depreciation andAmortization㸩㸩

Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt
(Net D/E Ratio)

Number of Employees(people)

Sales by Business Segment and Region
㸺Sales by Business Segment㸼
(Billion yen)㸺Sales by Region㸼㻾㼛㼎㼛㼠㼟㻯㼡㼠㼠㼕㼚㼓㻌㼀㼛㼛㼘㼟 

㻹㼍㼏㼔㼕㼚㼑㻌㼀㼛㼛㼘㼟 

 

㻱㼡㼞㼛㼜㼑 㻭㼟㼕㼍㻔㼑㼤㼏㼑㼜㼠㻌㻯㼔㼕㼚㼍㻕 
 㻯㼔㼕㼚㼍㻮㼑㼍㼞㼕㼚㼓㼟



(YonY)

㻭㼙㼑㼞㼕㼏㼍㼟 


FY2018 e 

㻴㼥㼐㼞㼍㼡㼘㼕㼏㻱㼝㼡㼕㼜㼙㼑㼚㼠㻶㼍㼜㼍㼚 
 㻻㼠㼔㼑㼞㼟 㻲㼅㻞㻜㻝㻣㻲㼅㻞㻜㻝㻤㻲㼅㻞㻜㻝㻣㻲㼅㻞㻜㻝㻤

Causes of Changes in Operating Income䠄 Increase 䠖 8.2䠅(Billion yen)

FY2018 e䠄 Decrease 䠖 6.3䠅Cost reduction+3.2Rise in material price -2.3

Operating rate
improvement +5.0

Increase in fixed costs and SGA-4.0

㸩1.9㻝㻤㻚㻜㻝㻢㻚㻝㻲㼅㻞㻜㻝㻣㻯㼍㼡㼟㼑㼟㻌㼛㼒㻌㼕㼚㼏㼞㼑㼍㼟㼑㻯㼍㼡㼟㼑㼟㻌㼛㼒㻌㼐㼑㼏㼞㼑㼍㼟㼑㻲㼅㻞㻜㻝㻤

Business Strategy for Mid-term Plan

Management Strategy

Net Sales(Billion yen)

Operating Income(Billion yen)

Mid-term financial target㻟㻜㻜

Net Sales : 300 billion yen Operating Income : 27 billion yen
Operating Income rate: 9.0%
Net Sales

Operating Income 㻡㻜㻞㻜㻜

㻢㻜㻠㻜

Effort in 2nd half of FY2018㸸
Strengthening production structure
to meet growing demand.

 㻟㻜㻞㻜㻝㻜㻜㻝㻜㻜㻜㻓㻝㻜㻓㻝㻝㻓㻝㻞㻓㻝㻟㻓㻝㻠㻓㻝㻡㻓㻝㻢㻓㻝㻣㻓㻝㻤㻲㼅㻞㻜㻞㻜



To Achieving FY2018 Plan

Management Strategy

Orders Received /Net Sales(Billion yen)

Arranging 4M(ͤ) forexpansion of production
capacity.㸦㹼July, 2018㸧





Orders Received
Net Sales

53.0

52.6

56.3

57.4

66.4
62.4

52.1





64.0

59.0









62.4





4

4





4

444)<ͤ4M䞉䞉䞉Man, Machine, Material, Method4)<

444)<Strengthening Robotic Business

Management Strategy

䕿Providing advanced robots and FA systemsDevelopment
䞉 Strengthening capabilities to develop robots-Established the Robot R&D Center in Tokyo inApril 2018.
-Establishing the Robot R&D Center in Shanghai.
-Expanding lineup of collaborative robots andsmall-sized robots.
Sales䞉 Strengthening capabilities topropose robotic systems.
-Strengthening alliance with system
integrators in North America and China.
-Utilizing Robot Technical Centers.

&ROODERUDWLYH5RERW㹁㹘7HFKQLFDO&HQWHULQ6KDQJKDL

Production
䞉 Establishing new plants for small-sized robots in Japan.
(scheduled to start operations in 2019.)-Building integrated production lines with automatic assembly systems.

Strategy for Shift to EVs

Management Strategy

䕿Expanding product lineup of components for EVs
Components
Bearings for electric units,
electric actuators, etc.

Shaping technology%HDULQJV IRU
HOHFWULFXQLWVIntegrated skiving shaping system
䠄Cutting Tools䠇Machine Tools䠇Robots䠅

,QWHJUDWHGVNLYLQJVKDSLQJV\VWHP(OHFWULFDFWXDWRUVFSW(Friction Stir Welding) joining system(Specical Steels䠇Robots))6: MRLQLQJV\VWHPExpanding Strategic ProductsManagement Strategy

Cutting Tools-Launching new lineup of taps andcarbide drills.
(new materials and coating film species)
Bearing㸿㹏㹓㸿 㹂㹰㹧㹪㹪 㹃㹖-Expanding production capacity of
6HULHVRI&DUELGH'ULOOV
thin-walled bearings for speed reducers.
-Enhancing function of precision support bearings.
Hydraulic Equipment-Launching preventive maintenance valves
compatible with IoT.
-Launching high-pressure piston pumps
for forging machines and press machines.

7KLQZDOOHGEHDULQJVIRUVSHHGUHGXFHUV+LJKSUHVVXUHSLVWRQSXPSVSpecial Steels-Screw components for injection molding machines
for fluoropolymers.

6FUHZFRPSRQHQWV 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.

