Jun. 23, 2019OutlineBusiness Results for FY2018

䠎䡚 䠒

Business Forecast for FY2019

䠓 䡚䠍䠍

Management Strategy䠍䠎䡚䠍䠒

FY2018

Consolidated Financial Highlights(Billion yen)

FY2017(A)Net sales

Increase/Decrease(B) – (A)FY2018(B)㸣 

OperatingIncome㸣㸣㸣

OrdinaryIncome㸣 㸣㸣㸣<HQ<HQ<HQ

<HQ<HQ<HQ

<HQDSSUHFLDWLRQ
<HQGHSUHFLDWLRQ
<HQGHSUHFLDWLRQ

<HQ

<HQNet Income
Exchange rate
㸦USD㸧㸦Euro㸧㸦RMB㸧

Cash Dividends㻖㻯㼍㼟㼔㻌㼐㼕㼢㼕㼐㼑㼚㼐㼟㻌㼕㼟㻌㼏㼍㼘㼏㼡㼘㼍㼠㼑㼐㻌㼛㼚㻌㼠㼔㼑㻌㼍㼟㼟㼡㼙㼜㼠㼕㼛㼚㻌㼠㼔㼍㼠㻌㼠㼔㼑㻌㼏㼛㼚㼟㼛㼘㼕㼐㼍㼠㼕㼛㼚㻌㼣㼍㼟㻌㼏㼛㼚㼐㼡㼏㼠㼑㼐㻌㼍㼠㻌㼠㼔㼑㻌㼎㼑㼓㼕㼚㼚㼕㼚㼓㻌㼛㼒㻌㼠㼔㼑㻌㼜㼞㼑㼢㼕㼛㼡㼟㻌㼏㼛㼚㼟㼛㼘㼕㼐㼍㼠㼑㼐㻌㼒㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻚

FY2018

Consolidated Financial Data(Billion yen)

FY2017(A)Increase/Decrease(B) – (A)FY2018(B)ROE㸣㸣SW

Total Assets





㸣 㸣 

 





Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt
(Net D/E Ratio)

Capacity Investment



Depreciation andAmortization













Number of Employees(people)

Sales by Business Segment and Region
㸺Sales by Business Segment㸼
(Billion yen) 5RERWV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) 㻭㼙㼑㼞㼕㼏㼍㼟

㸺Sales by Region㸼

FY2018 㻱㼡㼞㼛㼜㼑㻭㼟㼕㼍㻔㼑㼤㼏㼑㼜㼠㻌㻯㼔㼕㼚㼍㻕 ‫ڹ‬㻯㼔㼕㼚㼍 㻮㼑㼍㼞㼕㼚㼓㼟 㻶㼍㼜㼍㼚㻴㼥㼐㼞㼍㼡㼘㼕㼏㻱㼝㼡㼕㼜㼙㼑㼚㼠  

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(Billion yen)
Increase in
sales price䠄 Increase 䠖 8.1䠅FY2018

䠄 Decrease 䠖 8.9䠅Rise in material price -3.0+0.6

Increase in othervariable cost-1.5

Extra shipping cost-1.1

Cost reduction +2.1
Operating rate
improvement +5.4

Increase in other fixed costs
and SGA-4.0㻝㻢㻚㻝㻝㻡㻚㻟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

FY2018

Sales and Operating Income by Business Segment(Billion yen)

FY2017(A)㸦㸣㸧  㸦㸣㸧 

㸦㸣㸧  㸦㸣㸧 
㸦㸣㸧  㸦㸣㸧

Machinery&Tools

Cutting Tools
Machine Tools
RobotsNet Sales
Operating Income

Others Components

FY2018(B)

Bearings
Hydraulic Equipment
Net Sales
Operating Income
Net Sales
Operating Income

Total Net Sales㸦㸣㸧 Total Operating Income㸦㸣㸧

Increase/Decrease(B) – (A)㸣㸣 㸣 㸣 㸣 㸣 㸣 㸣 㸣 

㸣 

㸣 

㸣㸣

Consolidated Financial Highlights (FY2019 Plan)FY2019e(Billion yen)

FY2018(A)

FY2019Plan (B)Net sales

Increase/Decrease(B) – (A)㸣 OperatingIncome㸣 

㸣㸣

OrdinaryIncome㸣㸣㸣㸣Net Income
Exchange rate㸦USD㸧㸦Euro㸧
㸦RMB㸧

<HQ<HQ<HQ<HQDSSUHFLDWLRQ
<HQ
<HQDSSUHFLDWLRQ
<HQ<HQ  <HQDSSUHFLDWLRQCash Dividends<HQ<HQ
Consolidated Financial Data (FY2019 Plan)

FY2019e(Billion yen)

FY2018(A)

FY2019Plan (B)

Increase/Decrease(B) – (A)ROE㸣㸣SW

Total Assets

㸣 㸣 

 㸦  

Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt
(Net D/E Ratio)

Capacity Investment0D[ 

Depreciation andAmortization

Number of Employees(people)

Sales by Business Segment and Region (FY2019 Plan)
㸺Sales by Business Segment㸼
(Billion yen)



5RERWV
 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㻭㼙㼑㼞㼕㼏㼍㼟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

FY2019e

㸺Sales by Region㸼㻱㼡㼞㼛㼜㼑 







(YonY)

 
    

㻶㼍㼜㼍㼚㻴㼥㼐㼞㼍㼡㼘㼕㼏㻱㼝㼡㼕㼜㼙㼑㼚㼠

 㻲㼅㻞㻜㻝㻤㻲㼅㻞㻜㻝㻥㻌㻼㼘㼍㼚 㻻㼠㼔㼑㼞㼟 㻲㼅㻞㻜㻝㻤㻲㼅㻞㻜㻝㻥㻌㻼㼘㼍㼚

Causes of Changes in Operating Income (FY2019 Plan)(Billion yen)

䠄 Increase 䠖 6.5䠅Increase insales price

FY2019e䠄 Decrease 䠖 4.8䠅Effect of exchange rate -1.3+1.0
Rise in material price-1.0

Increase in other costs-2.5

Cost reduction +2.5
Operating rate
improvement +3.0㻝㻣㻚㻜㻝㻡㻚㻟㻲㼅㻞㻜㻝㻤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㻥㻌㻼㼘㼍㼚Sales and Operating Income by Business Segment (FY2019 Plan)

FY2019e(Billion yen)

Machinery&Tools

Cutting Tools
Machine Tools
RobotsNet Sales

Others Components

Operating Income
Bearings
Hydraulic Equipment
Net Sales
Operating Income
Net Sales
Operating Income
Total Net Sales
Total Operating Income

FY2018(A)FY2019Plan (B)㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 㸦㸣㸧 Increase/Decrease(B) – (A)㸣㸣㸣㸣㸣  㸣 㸣 㸣㸣㸣㸣㸣㸣  

Transition of Orders Received(billion Yen)FY2017 FY2018
Orders received 241.4
259.0
Net Sales
237.4
252.2

(billion Yen)

2UGHUV5HFHLYHGManagement Strategy

1HW6DOHV  

YoY+7.3%+6.2%

        㸯㹏 㸰㹏 㸱㹏 㸲㹏 㸯㹏 㸰㹏 㸱㹏 㸲㹏 㸯㹏 㸰㹏 㸱㹏 㸲㹏 㸯㹏 㸰㹏)<)<)<)<Main Strategy of FY2019

Management StrategyStrengthening our structure of production
Promoting improvement of profitability by company-wide projects.
䕿Cost Improvement Project-Reducing procurement cost through multiple sourcing.
-Analyzing cost and improving original units.
-Shifting the amount of increase in costs onto sales price.
䕿Rationalization Project-Manufacturing products with machines and facilities tominimize the number of production staff.
-Establishing unmanned and flexible manpower lines.
䕿Management Improvement Project-Revising our management structure to improve and systematize it.
-Making investments in rationalization and IT
Expanding Strategic Products (Machinery & Tools)

Management Strategy

Cutting Tools
䞉Expantion of carbide drills, carbide endmills, and taps.
-Expanding the product lineup for the AquaREVO
series, made from newly developed carbide material.
Machine Tools
䞉Capturing demand for EV parts and small speed reducers.
-Integrated skiving gear shaping system
䞉Expanding production capacity forcarbon processing machines.
Robots䞉Expanding lineup for collaborative robots
and small-sized robots.
-CZ and MZ series of robots
䞉Strengthening our proposal abilities forrobotic systems.

,QWHJUDWHGVNLYLQJJHDUVKDSLQJV\VWHP㹋㹘㸮㸯

Expanding Strategic Products (Components)
Bearing䞉Expanding product lineup forcomponents for EVs and eco-friendly cars.
-Bearings for electric units䞉 Expanding product lineup forindustrial machinery.
-Thin-walled, precision bearings$TXD5(92 'ULOOV%HDULQJV IRU
HOHFWULFXQLWVAutomotive Hydraulics
䞉 Expanding product lineup for components
for EVs and autonomous cars.
-Electric actuators&ROODERUDWLYH5RERWV㹁㹘㸯㸮Management Strategy

7KLQZDOOHGEHDULQJVIRUVSHHGUHGXFHUV(OHFWULFDFWXDWRUHydraulic Equipment
䞉Strenthening product lineup for construction machinery.
-Hydraulic equipment for small-sized construction machinery+LJKSUHVVXUHSLVWRQSXPS
䞉Expanding product lineup for industrial machinery.
-High-pressure and large-capacity pumps, preventive maintenance valvesMid-term Business Plan

Management Strategy

Net Sales(Billion yen)

Operating Income(Billion yen)㻟㻜㻜

1HW6DOHV
2SHUDWLQJ,QFRPH㻢㻜㻡㻜 㻠㻜㻞㻜㻜 㻟㻜㻝㻜㻜㻞㻜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㻓㻝㻥㻲㼅㻞㻜㻞㻜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.

