May 16, 2017

NTN Corporation
1

Contents

Ⅰ. Progress of Medium-termManagement Plan “NTN 100”
Ⅱ. Financial Results for FY2016 andForecast for FY2017• This presentation and comments made in this conference or during the following Q&A session include forward-looking
statements about future performance and future business strategies, all of which are based on decisions of the managementof the Company currently available.
• These statements represent the best judgment of the management of the Company based on the information currently
available. However, there can be no assurance that future results will meet any expectation, estimate or projection conveyed
by these statements or comments. Actual results may differ materially from Management projections depending on various
factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2017/5/16

2

Contents

Ⅰ. Progress of Medium-termManagement Plan “NTN 100”
Ⅱ. Financial Results for FY2016 andForecast for FY2017• This presentation and comments made in this conference or during the following Q&A session include forward-looking
statements about future performance and future business strategies, all of which are based on decisions of the managementof the Company currently available.
• These statements represent the best judgment of the management of the Company based on the information currently
available. However, there can be no assurance that future results will meet any expectation, estimate or projection conveyed
by these statements or comments. Actual results may differ materially from Management projections depending on various
factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2017/5/16

3

Trends in consolidated financial results
Affected by strong yen, net sales and Operating Income decreased YoY in FY17/3(higher sales and income excluding the effect of exchange rates)
For FY18/3, we expect an increase in YoY net sales and Operating Income.
However, Operating Margin will decline by 0.1 point due to an increase in expenses etc.

「NTN100」(Billion yen)

Operating Margin

FY17/3 Results(Billionyen)

Figures in brackets are previous announcement

Net sales： ¥683.3 billion (¥650.0 billion)
YoY -4.7%
Exclude exchange-rates effects, +3.6%
Operating income： ¥35.6 billion(¥30.0 billion)
YoY -25.4%
Exclude exchange-rates effects, +1.9%

Net income： ¥28.0 billion (¥3.0 billion)
Recorded extraordinary losses related to
the Anti-Monopoly Act, etc.
Year-end dividend： ¥5 *¥10 per annual

FY18/3 (Forecast)

Net sales： ¥700.0 billion
YoY +2.4%
Exclude exchange-rates effects, +3.0%
Operating income： ¥36.0 billion
YoY +1.1%
Exclude exchange-rates effects, +9.8%
Net income： ¥10.0 billion
Factored in ¥10.0 billion in extraordinary losses
Annual dividend： ¥15*Interim ¥7.5, year-end ¥7.5
Includes 5 yen dividend for commemorating
the Company’s 100th anniversary

2017/5/16

Note: “Net income” shows the “net income attributable to shareholder (parent company)”.

4

Progress of NTN 100：
Sales and Operating Income by Business Sector
For the volume of goods sold after excluding the effect of exchange-rates, initial targets were not achieved for
the Aftermarket Business and the Industrial Machinery Business. For the Automotive Business, progress
toward initial targets was made almost as expectedTransition in physical quantity as converted to theexchange rates for NTN100*(Billion yen)

Although sales steadily increased in the automotive aftermarket,
demand for industrial machinery AM did not grow due toa sluggish economic environment mainly in emerging economies.
Over all, the targets were not achieved

Operating Margin

＋37%
＋12%

＋12%

+2%
±0%

＋10%

Compared
to FY15/3(Other numbers
were comparedin the same manner)

2017/5/16

Aftermarket (comments on NTN100 sales targets)

Industrial machinery (comments on NTN100 sales targets)
Although sales were relatively steady in the fields of wind turbines,
Gearbox, aircrafts, etc., demand for construction machinery andagricultural machinery fell short of our expectations,and the targets were not achieved

Automotive (comments on NTN100 sales targets)
Sales increased due to stead demand in North America,
new projects for EVs and other factors, progress was madebasically as expected
For operating income after excluding the effect of exchange rates, profits
from drive-shafts of automobiles were improved however sales decreasedin terms of the industrial machinery aftermarket and industrial machinery
OEM and the improvement in operating income of the Group as a whole isexpected to be limited*All data are for indicating transition in physical quantity as converted to the exchange-rates
for the medium-term management plan NTN100 (US$ 1 =110 yen, € 1 =130 yen).

5

Progress of NTN 100：Aftermarket BusinessAlthough sales was stagnant in the industrial machinery aftermarket due to deteriorated market conditions,
we have worked to improve brand strength.
In the automotive aftermarket, sales steadily increased mainly in North America and Europe
Composition
AutoAM
Industry
AM

Improving Brand Strength Visit by “technical service units”

Sales trends in industrial
machinery aftermarket

CAGR-0%Approx. 900
companies are
visited annually
to hold technicalworkshops

Expansion of the ULTAGE series
Introduction of labels as a measureagainst counterfeit (April)

18/3
YOY
+3％

Sales of “handy type failure detection
devices”
World-highest
bearing function

Holograms and micro
characters used to defend
against counterfeit

Expanding the line-up of products for automobilesin Americas and Europe
Sales Trends in Americas
Sales Trends in Europe

Sales trends inautomotive aftermarket

18/3
YOY
+1％

Our two-year efforts resulted in achievement of a 2-digit share in the global market(approx. 50% share in the domestic market) *Estimated by our company
We will continue to promote various measures to strengthen customer services by shortening production and logistics lead times
We will focus on sales expansion for MRO projects and work on strengthening NTN brand and expanding sales.

2017/5/16

Note: Bar graphs show an index of transition in physical quantity.
In addition, CAGR is an annual average growth rate for five years from FY13/3 to FY17/3.

6

Progress of NTN 100:
Industrial Machinery BusinessFor sales of our main products for construction machinery, demand recovered from the second half of FY17/3
and continued to recover steadily in the first half of FY18/3
Business segments we focus on, such as wind turbines, Gearboxes (robots) and aircrafts, showed strong sales
Business segmentcomposition ratio

Sales Trends forindustrial machinery
business

YOY
+15％

YOY
+6％

YOY
+4％
Sales increased from 2H of FY17/3
and took a favorable turn from
-4% YoY in 1H to +9% YoY in 2H
We also expect an increase of+4% YoY in FY18/3

Demand for our products
for construction machineryrecovered rapidly in 2H-6% YoY in 1H of FY17/3+34% YoY in 2H of FY17/3

Construction machinery: Market launch of highly valued added productsWind turbines: Development of large bearings for power generators on the ocean
Gearboxes: Development of bearings for next-generation reducers for robots
Aircrafts: Expansion of production capacity for aircraft bearings in Europe

2017/5/16

Note: The pie chart shows business segment composition ratios for FY17/3, and bar graphs show an index of transition of physical quantity.
CAGR is an annual average growth rate for five years from FY13/3 to FY17/3.
YoY indicates comparison of physical quantities between FY17/3 and FY18/3 unless otherwise stated.

YOY
+14％

YOY
+4％

7

Progress of NTN 100:
Automotive Business and EV(-related) Business
Progress was achieved satisfactory due to robust demand and promotion of structural reforms ofthe driveshaft business, standardization based on new technologies, etc.
We promoted market launch of products such as “electric motors and actuators”
in line with automotive electrification, automatic driving, etc.
Product composition
OthersSales trends forautomotive business

Mexico Plant
Standardized ADS module(Electron beam welding + PCS connection) Mass production from
Dec. 2015

Drive shafts
Hubbearings

Light weight drive shafts for the rear
section (luxurious FR vehicles)

World’sNo.2
market share

World’s No.1
market share

HUB built in
multi axis
load sensors

Growth in the number of units produced

HUB for use ina harshenvironment

U.S. NTN-Bower
Mass production of
BJ cassettes

U.S. NTK Plant No. 2
Mass production from
Apr. 2018

U.S. NDA
Mass production from
Apr. 2017

Expand the strong core product businessand strengthen profits generation throughnew products and technologies and byincreasing production capacity(Source: IEA2014)

Million units

Fuel cell vehicle Continuous adoption ofElectric vehicle

drive shafts andNew in-wheel
hub bearings“Electric motors and actuators” series
motors＋Responding to automobile electrification and
Products responding toautomatic driving. In addition to core products,
electrification
expand the EV(-related) business, a new
business areas mentioned in NTN100

Plug-in hybrid vehicle

Hybrid vehicle
Internal combustion
engine vehicle

2017/5/16 Note: The pie chart shows product composition ratios for the automotive business in FY17/3.
CAGR is an annual average growth rate for five years from FY13/3 to FY17/3.

8

Progress of NTN 100:Natural Energy Business
Promote commercialization of natural energy products by utilizing of innovative “wing” technology

1. Launch of “Hybrid Street Lights” (July 2016)

Hybrid Street Lights generate electric energy by utilizing wind and solar power
and automatically activate LED lights during the nighttime- Providing secure and safe lights with quiet and independent power supply- Able to be used for receiving and transmitting emergency evacuation information
when a disaster occurs- Contributing to improvement of crime prevention by adding a monitoring function[1] Provide lights, communication functions (Wi-Fi), etc. in areas with no electric cables
in Japan and abroad[2] Strengthen cooperation with local governments across the nation, and other parties[3] Donate those lights for use in facilitating reconstruction of disaster-stricken areasand preventing disasters, as a part of the Company’s 100th anniversary project(Units)Jul.2016 Launch

2. Sequential launch of “NTN Micro Hydro Turbines” and“Compact Wind Turbines (10kW)”“NTN Micro Hydro Turbines”(scheduled for release in June 2017*)- Generate electric energy simply by placing themin an irrigation channel, etc.
- Generate electric energy stably andHighly efficiently- Easily generate and supply electric energy
in areas with no electric cables

2017/5/16“Compact Wind Turbines (10kW)”(scheduled for release in December 2017*)- Generate electric energy extremely
quietly and highly efficiently- Started a demonstration test in Japan- Promote acquisition of NK certification

Iwata City, Shizuoka Prefecture
Started a demonstration test in Iwata Eco-Park* The timing of release is scheduled as of May 2017 and may be subject to change.

9NTN 100 Progress of NTN 100:
Robot-related Business Service Solution Business
Promote commercialization in a new business areas under the theme of“Working and Living with People” and “Utilizing of Bid Data”

1. Promotion of development of applications for“Parallel Link Type High Speed Angle Control Equipment”

Special parallel link mechanism taking advantage of drive shaft technology- Achieved a wider range of moving angles with compact equipment- Positioning at high speed and with high accuracy is possible[1] Propose introduction in automatic production equipment[2] Propose use of the equipment as a substitute forexperienced skills required in welding and other processes[3] Promote collaboration with customers and other companies“Parallel link type high Collaboration with highspeed angle control precision cleaning system(Photo: courtesy of Air Water
equipment”
Inc.)

2. Advancement of “Condition Monitoring System (CMS) for Wind Turbines”
and roll-out to other fields
Monitor the operating condition consistently by utilizing bearing diagnostic andsensing technologies accumulated through many years of our experience- Cover a wide range of areas including the ocean- Remote measurement and diagnosis are possible- Detect abnormalities quickly through learning function
and automatic diagnosis[1] Promote further advancement of analysis technologies[2] Roll-out to other fields such as rolling stocks

2017/5/16

Condition
monitoring system
TM“Wind Doctor ”

Roll-out to otherfieldsContribute to safety
and security

10

Progress of NTN 100:Strengthening the Manage Foundation
Strengthening of global control and risk management (progress)
1. Promote supply chain CSR

Responding to social issues such as human rights, labor practices, the environment and anti-corruption* Supporting the UN Global Compact's ten principles

Requesting suppliers to take actions through briefing (twice a year), questionnaire surveys(approx. 350 companies), etc.
* Under the basic procurement policy, take actions based on the CSR Procurement Guidelines andthe NTN Green Procurement Standards* Make efforts to conduct survey on, and promote non-use of, conflict minerals

2. Ensure compliance

Holding “Compliance Committee,” a “Fair Trade Monitoring Committee,” and a “CSR Global Meeting”* Establishment of Anti-Bribery Rules, awareness-raising activities such as e-learning* Provide compliance and management education toemployees transferred overseas and executive managers of subsidiaries* Strengthen internal control globally in cooperation with Internal Control Sectionsof oversea districts

3. Strengthen of the “risk management”

CSR Global Mtg.
Constructing a database to globally prevent occurrence of risks and alleviate risks throughthe “Risk Control Committee”
Building a “Business Continuity Management (BCM)” system at the head office and
Iwata business place (model district), and then rolling out to other business places

4. Invest to strengthen the manage foundation

Investment in intangible fixed assets to re-build IT core systems

FY17/3: 5.9 billion yen, FY18/3: approx. 8.5 billion yen * Sequential introduction of financial and personnel systems

2017/5/16

11

Progress of “NTN 100” :Key Management Indicators
Creation of FCF for 2 years exceeded expected with the effects of improving profitability andinventory reduction. However, related indicators decreased, because net income decreased due
to loss related to Anti-monopoly Act and lawsuits and others.
3-year period
1. Strengthen asset efficiency
Reduction of interest-bearing debt
(excluding foreign exchange
impact)Inventory reduction(inventory turnover ratio)
Capital expenditure

NTN 100 target

FY2015FY2016FY2017

ResultResultFull year forcast

Total amount
Average rate

￥26.2 billion reduction￥1.8 billion reduction￥2.2 billion increase￥25.7 billion reduction￥60.0 billion reduction /3 years

4.0 times / year

4.0 times / year

4.1 times / year

4.1 times / year

4.5 times / year

￥36.3 billion / year

￥35.4 billion / year

￥44.0 billion / year

￥115.7 billion / 3 years￥135.0 billion / 3 years

FCF￥12.5 billion￥21.2 billion￥0 billion￥33.7 billion / 3 years￥67.0 billion / 3 years

Equity to capital ratio

29.2%

28.7%

29.1%

29.1%

30.0% or more

Net D/E ratio

1.1

1.1

1.1

1.1

1.0 or less

ROE

6.3%

1.2%

4.3%

3.9%

Over 14%

2. Improvement of the profit
margin on sales
Operating margin

3-year period
FY2015FY2016FY2017

ResultResultFull year forcast

Average

6.7%

5.2%

5.1%

5.7%

NTN 100 target
8.8%

3-year period
3. Shareholder return
Dividends

2017/5/16

FY2015FY2016FY2017

ResultResultFull year forcast

NTN 100 target
AverageAnnual ￥10

Annual ￥10

Annual ￥15--

Dividend payout ratio of
35%

Dividend payout ratio of
188%

Dividend payout ratio of80%

Dividend payout ratio of67%

Dividend payout ratio of 30% is
basic idea

12

Contents

Ⅰ. Progress of Medium-termManagement Plan “NTN 100”
Ⅱ. Financial Results for FY2016 andForecast for FY2017• This presentation and comments made in this conference or during the following Q&A session include forward-looking
statements about future performance and future business strategies, all of which are based on decisions of the managementof the Company currently available.
• These statements represent the best judgment of the management of the Company based on the information currently
available. However, there can be no assurance that future results will meet any expectation, estimate or projection conveyed
by these statements or comments. Actual results may differ materially from Management projections depending on various
factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2017/5/16

13

Contents★Financial Results for FY2017 : Key Factors
１．Consolidated Statements of Operation
２．Net Sales by Region
３．Net Sales and Operating Income by Business Sector
４．Results by Business Sector （Quarterly Trend）
５．Analysis of Operating Income
６．Net Sales and Operating Income by Company Location(1) Japan, Americas(2) Europe, Asia and others
７．Inventories
８．Interest-Bearing Debt
９．Capital Expenditure and Depreciation
１０．Cash Flows

2017/5/16

14

Financial Results for FY2016 : Key Factors
FY2016 Results◇ Net sales: ¥683.3 billion, a -¥33.7 billion decrease year-on-year(Excl. forex increase +¥25.6billion, +3.6% increase year-on-year◇ Operating income: ¥35.6 billion, a -¥12.1 billion decrease year-on-year(Excl. forex, increase +¥0.8 billion, +1.6%)◇ Extraordinary income/loss: -¥14.7 billion(Extraordinary income +¥2.1 billion, Extraordinary losses -¥16.9 billion)◇ Net income: ¥2.8 billion, -¥12.2 billion decrease year-on-year◇ Planned fiscal year-end dividend of 5.0 yen (Annual: 10 yen, same as last Fiscal year)

FY2017 Forecast◇ Net sales: ¥700.0 billion, a +¥16.7 billion (+2.4%) increase year-on-year◇ Operating income: ¥36.0 billion, a +¥0.4 billion (+1.1%) increase year-on-year◇ Extra ordinary loss: -¥10.0 billion◇ Net income: ¥10.0 billion, a +¥7.2 billion increase year-on-year◇ Dividends: Plan for annual dividend of 15 yen(¥5.0 and ¥2.5 commemorating dividends both interim and fiscal year-end)◇ Exchange rates: 1US$ = 110 yen, 1EURO = 115 yen
2017/5/16

Note: “Net income” shows the “net income attributable to shareholder (parent company)”.

15

1. Consolidated Statements of Operation
FY2015 FY2016 FY2017
Results Results Forecast

FY2016②-①

Year on year

(billion yen)
FY2017
③-②

①

②

③

Total

Volume

Forex

Total

VolumeForex

Net sales

717.0

683.3

700.0

-33.7

25.6

-59.2

16.7

20.9

-4.2

Operating income

47.8

35.6

36.0

-12.1

0.8

-12.9

0.4

0.9

-0.6

Operating margin(6.7%)(5.2%)(5.1%)(-1.4%)

Ordinary income

38.2

29.6

28.0

-8.6

4.0

-12.6

-1.6

-1.1

-0.5

Extraordinary
income/loss

-11.3

-14.7

-10.0

-3.4

-4.6

1.1

4.7

4.7

0.0

Net income attributable
to shareholders(parent company)

15.0

2.8

10.0

-12.2

-3.6

-8.6

7.2

7.5

-0.4

US＄

120.2

108.4

110.0

-11.8

-11.8

1.6

1.6

EURO

132.6

118.8

115.0

-13.8

-13.8

-3.8

-3.8

Exchangerate

2017/5/16(-0.1%)

16

2. Net Sales by Region
FY2015FY2016FY2017FY2016

Results Results Forecast

Year on year

②-①
Total

Volume(billion yen)

FY2017
③-②

Forex

Total

Volume

Forex

①

②

③

Japan

189.6

191.5

193.0

1.9

1.9

-

1.5

1.5

-

Americas

212.5

194.8

202.5

-17.8

3.6

-21.4

7.7

5.8

2.0

Europe

169.0

155.0

156.5

-14.0

4.7

-18.7

1.5

6.7

-5.2

Asia andothers

145.9

142.1

148.0

-3.7

15.4

-19.1

5.9

6.8

-0.9

Total

717.0

683.3

700.0

-33.7

25.6

-59.2

16.7

20.9

-4.2

2017/5/16

17

3. Net Sales and Operating Income by Business Sector＜Net Sales by Business Sector＞(billion yen)

FY2015FY2016FY2017

Year on year

Results

Results

Forecast

②
104.5

③
105.5

Total

Volume

Forex

Total

VolumeForex

Aftermarket

①
113.6

-9.1

-0.2

-8.9

1.0

2.1

-1.1

Industrial machinery

104.1

98.6

102.0

-5.5

1.9

-7.4

3.4

4.0

-0.6

Automotive

499.3

480.2

492.5

-19.0

23.9

-42.9

12.3

14.8

-2.6

Total

717.0

683.3

700.0

-33.7

25.6

-59.2

16.7

20.9

-4.2

FY2016②-①

FY2017③-②＜Operating Income by Business Sector＞
FY2015FY2016FY2017

Results

Results

Forecast

①
17.7

②
14.0

③
15.0

Industrial machinery

5.6

1.6

Automotive

24.4

Total

47.8

Aftermarket

2017/5/16(billion yen)

FY2016②-①
Total

VolumeYear on year

Forex

Total

FY2017③-②
Volume

-3.7

1.0

2.1

-4.0

0.5

20.0

18.9

-4.4

-1.1

35.6

36.0

-12.1

0.4

Forex

18

4. Results by Business Sector （Quarterly Trend）＊All figures in billion yen
Automotive

Industrial machineryOperating Income/ Operating Margin

Net Sales
200.0
180.0
160.0
140.0
120.0

182.8

178.0 176.5 179.7

②-①

185.0

171.5
26
0
0
300
29.2
29.0
159.6
28.6
29.4
26.7
167
0
0
500
24.6
25.5
0
0
0
500
25.2
27.9
26.8 118 25.00
26.0 0 26.3
24.6 0
23.5
22.6
167.3

20.0

18.2%

18.0

7.0%

800
16.0
700
700
14.0
0
12.0

100.0

10.0

80.0

8.0

60.0

127.0 122.6 124.9 124.7

127.9
118.3 111.7 122.3

6.6%

14.1 3.9%

5.3

1.9

10.8
4.2

16.0%

6.9
4.8

13.7% 15.0%

5.2% 5.0%8005.4%
600

400
600
3.3%
2.8%
200
400
0
0

11.5% 12.7%14.2%
2.1%

4.8%

11.9
4.3

-1.2%

4.7% 4.3%
3.9%
0.6%

11.0 10.9
3.9

3.8

1.2

0.9

0.7

6.5

6.2

6.4

1.7

2.0

20.0

14.4%

5.5%

6.0
4.0

40.0

0.0

Aftermarket

10.8
9.0

4.1

3.1
1.1

4.90.2
2.9

5.7

5.6

3Q

4Q

2.3
0.0
FY2015
1Q

2017/5/16

FY2016
2Q

3Q

4Q

1Q

2Q

3Q

4Q

-2.0

FY20151Q

FY2016
2Q

3Q

4Q

1Q

-0.3
2Q

19

5-1. Analysis of Operating Income （ FY2016 ）＊All figures in billion yen

Positive factors（ 14.7 ）Decrease in variable
costs

Scale merits

FY2015Full year
Operatingincome11.5

Exchange rates

Negative factors（ 26.9 ）12.9Sales price levels
Increase in personal costs
4.3

3.2

4.7

-121
-12.1

4.9

47.8

FY2015 Full year < Results >vs
FY2016 Full year < Results >2017/5/16

Expenses etc.
(Depreciation 1.3,
Other 3.6)

FY2016
Full year
Operatingincome35.6

20

5-2. Analysis of Operating Income （ FY2017）＊All figures in billion yen

Positive factors（ 15.0 ）Decrease in variable
costs

Exchange rates
3.1

5.4

Negative factors（ 14.6 ）Sales price levels
3.5

Increase in personal costs
Expenses etc.
(Depreciation 1.0,
Other 2.2)

4.8
Scale merits

3.2

9.6

+4
+0.4
FY2016
Full year
Operatingincome35.6

2017/5/16

FY2017Full year
OperatingincomeFY2016 Full year < Results >vs
FY2017 Full year < Forecast >

36.0

21

6. Net Sales and Operating Income by Company Location＊All figures in billion yen《 Japan 》《 Americas 》
Net Sales

Net Sales
400.0

343.3

337.7
-16.9

300.0

320.8

331.0

198.9

208.4
-17.0

191.4

201.1

FY2016FY2017

4.3%

4.3%

8.3

8.7

FY2016FY2017

100.0

100.0

50.0
FY2014FY2015FY2016FY2017

Operating Income
40.0

8.0%

30.0

27.6

10.0

FY20142017/5/16

FY2015FY2014FY201520.0

7.2%

24.1 -19.7

0.0

Operating Income
1.4%

20.0

0.0

200.0
150.0

200.0

0.0

250.0

4.5
FY20161.3%

4.4
FY2017

15.0
10.0
5.0
0.0

0.7%

2.8%
+2.5

1.4

5.8

FY2014FY201522

6. Net Sales and Operating Income by Company Location＊All figures in billion yen《 Europe 》
Net Sales
187.2

Net Sales《 欧州 》

250.0
200.0

《 Asia and others 》

183.5

250.0

-14.5

169.0

170.0

150.0

100.0

100.0

50.0

50.0
FY2014FY2015FY2016FY20170.0

132.9

FY2014

148.2

142.3

148.6

FY2015FY2016FY2017

Operating Income

Operating Income

20.0

20.0

15.0

2.0%

2.0%

1.7%

2.9%

10.0

15.0

7.6%

3.7

3.1

FY2014FY20152017/5/16

+0.2

3.3
FY2016

5.0
FY20175.0

0.0

10.2% 10.0%

8.5%
+1.9

10.0

5.0
0.0

-5.9

200.0

150.0

0.0

《 アジア他 》

10.1
FY2014

12.6

14.5

14.8

FY2015FY2016FY201723

7. Inventories◆ Inventories at end of March 2017 decreased by ¥6.7 billion compared to end of previous fiscal year

Inventories(billion yen)

250.0

Overseas

Inventory turnover ratio

4.0

3.8
184.1

200.0
150.0

178.2

128.5

4.0

171.5

170.0

3.0

2.0

123.1

100.0

118.6

119.9
1.0

50.0
0.0

55.6

55.1

52.9

50.1

FY2014Results

FY2015Results

FY2016Results

FY2017Forecast

Inventories
Overseas
Japan
Inventory turnover ratio (times)

2017/5/16

-6.7

4.0

4.1

Inventory turnover ratio (times)

Japan

300.0

0.0

FY2014
Results

FY2015Results

FY2016
Results(billion yen)
FY2017
Forecast

184.1(128.5)(55.6)
3.8

178.2(123.1)(55.1)
4.0

171.5(118.6)(52.9)
4.0

170.0(119.9)(50.1)
4.1
24

8. Interest-Bearing Debt
◆Net Interest-bearing debt at end of March 2017 decreased by ¥17.0 billion compared to end of previous fiscal year

500.0
400.0
300.0

Japan

1.1
359.1
128.1

Overseas

Net D/E ratio

1.1
325.2
106.9

1.5

1.1

1.1
1.0

-5.0

320.2

320.0

91.5

91.1

200.0
100.0
0.0

Interest-bearing debt

(Overseas)(Japan)Net Interest-bearing debt

2017/5/16

Net D/E ratio

Interst-bearing dept(billion yen)

600.0

0.5

231.0

218.3

228.6

228.9

FY2014Results

FY2015Results

FY2016Results

FY2017Forecast

FY2014
Results

FY2015Results

FY2016
Results(billion yen)
FY2017
Forecast

359.1(128.1)(231.0)
271.3

325.2
(106.9)(218.3)
257.9

320.2
(91.5)(228.6)
240.9

320.0
(91.1)(228.9)
245.7

0.0

25

9. Capital Expenditure and Depreciation
50.0（billion yen）

Investment（Japan）

40.4
31.3
25.0

24.7
20.3

0.0

11.0

15.7

FY2014 Results

Capital expenditure(Overseas)(Japan)Depreciation(Overseas)(Japan)2017/5/16

Investment（Overseas）

36.3

38.3

Depreciation（Japan）

Depreciation（Overseas）

44.0
35.4

36.6

37.4

24.5
23.3

26.4

23.2

23.5

11.8

12.2

13.2

13.0

FY2015 Results

22.9

19.5

FY2016 Results

FY2014
Results
31.3(20.3)(11.0)FY2015①Results
36.3(23.3)(13.0)FY2016②Results
35.4(23.2)(12.2)FY2017③Forecast
44.0(24.5)(19.5)FY2014
Results
40.4(24.7)(15.7)FY2015①Results
38.3(26.4)(11.8)FY2016②Results
36.6(23.5)(13.2)FY2017③Forecast
37.4(22.9)(14.5)

14.5

FY2017 Forecast(billion yen)
②-①

③-②

-0.9
(-0.1)(-0.8)②-①-1.6(-3.0)
(1.3)

8.6
(1.3)
(7.3)
③-②
0.8
(-0.6)(1.3)

26

10. Cash Flows◆Net CF (FY2017 forecast) is 0 billion yen due to payment related to extraordinary loss
FY2014
Results(billion yen)

Ⅰ．Cash flow fromoperating activities

FY2015①Results

FY2016②Results

FY2017③Forecast

②－①

③－②

25.1

46.2

62.4

44.5

16.1

-17.9

Ⅱ．Cash flow frominvesting activities

-31.3

-33.8

-41.2

-44.5

-7.4

-3.3

Ⅰ+Ⅱ．Net cash flow

-6.2

12.5

21.2

0.0

8.7

-21.2

Ⅲ．Cash flow fromfinancing activities

-37.5

-28.0

-8.2

-4.5

19.7

3.7

1.8

-5.0

-1.0

-0.5

4.0

0.5

-41.9

-20.5

12.0

-5.0

32.4

-17.0

Ⅳ．Effect of exchanging rate translation
on cash and cash equivalents

Ⅴ．Net increase in cash andcash equivalents
120.0
100.0

CF from operating activities

CF from investing activities

80.0

62.4

60.0
40.0
20.0

25.1

2017/5/16

21.2
0.0

-6.2

-20.0
-60.0

44.5

12.5

46.2

0.0

-40.0

Net CF

-31.3

-33.8

FY2014 Results

FY2015 Results

-41.2

-44.5

FY2016 Results

FY2017 Forecast

27

（Reference）
Main factor comments by region regarding to
Result for FY2016 and forecast for FY2017
by Business Sector

2017/5/16

28

(Reference) Aftermarket Business:
Actual Results of FY17/3 and Forecast for FY18/3<Results for FY17/3 (compared with FY16/3)>

Net sales: ¥104.5 billion (-8.0%), Operating income: ¥14.0 billion (-20.9%)• Even if the effect of strong yen is excluded, sales and income were decreased (Sales: -0.2%,operating income: -4.0%)• Automotive aftermarket continued to be robust but sales decreased in the industrial machinery aftermarket,
affected by sluggish economic conditions<FY18/3 forecast:comments on sales increase and decrease compared with FY17/3>

Net sales(Billion yen)

Operating MarginJapan

A decrease in the market size is expected
Strengthen measures to increase a market share anddiscover business chances

AmericasPromote sales to target industries
Strengthen distributor networks for auto parts

EuropePromote sales to major distributors
For auto parts, also promote sales to distributors

Although an increase in sales is expected in ASEAN,
Asia and sales in China are expected to be sluggish
othersdue to economic uncertainties
2017/5/16

29

(Reference) Industrial Machinery Business:
Actual Results of FY17/3 and Forecast for FY18/3<Results for FY17/3 (compared with FY16/3)>
Net sales: ¥98.6 billion (-5.3%), Operating income: ¥1.6 billion (-71.1%)• If excluding the effect of strong yen, sales increased and income decreased (Net sales: +1.8%, operating income: -26.8%)• For sales of our main products for construction machinery, demand recovered from the second half of the fiscal year
and sales of reducers for robots were also strong.
Operating
Net sales Margin(Billion yen)

<FY18/3 forecast:comments on sales increase and decrease compared with FY17/3>
Japan

Demand for construction machinery, expect to increase
due to demand from emerging economies
Increase demand for speed reduction gears for robots

For construction machinery, slight recovery ofAmericas sales for new vehicles is expected
A decrease in sales for wind turbine related products is
expected as a reaction from the previous term
EuropeIncrease demand for wind turbine related products
Sales are expected to increase due to the effect of
new aircraft engines

Wind turbines are expected to increase in China
Asia andothers Construction machinery and machine tools are
expected to decrease in Asia
2017/5/16

30

(Reference) Automotive Business:
Actual Results of FY17/3 and Forecast for FY18/3<Results for FY17/3 (compared with FY16/3)>
Net sales: ¥480.2 billion (-3.8%), Operating income: ¥20.0 billion (-18.2%)• If the effect of strong yen is exclude, sales and income increased (Net sales: +4.8%, operating income: +11.9%)• Favorable effects from robust markets in Asia and other regions and start of mass production at a new plant in China
Net sales(Billion yen)

OperatingMargin<FY18/3 forecast:comments on sales increase and decrease compared with FY17/3>

Japan

Although the launch of a new model will make some
contribution, sales is expected to remain almost
unchanged due to transfer of management ofour production to North America

Although there is some effect of review of a new vehicle
Americas production plan, sales are expected to increase due tothe launch of the new project of production in Mexico
EuropeAlthough the number of units produced will remainunchanged, sales are expected to increase due tostrong demand from major customers

Sales are expected to increase due to continuous
Asia and growth in the Chinese market and strong demand fromothersJapanese motorbike manufacturers in ASEAN
2017/5/16

31

2017/5/16

32