July 12, 2011

Contents
Part 1
Overview of Results
1. FY2011 Interim Results

2–10

2. FY2011 Full Year Forecast

11–19

Part 2Mid-term Business Plan Progress

20–25

䠍䠎

FY2011 Summarized Overview of Results

2011 Interim

䕿 Profit-and-loss statement(Units: 100 mil yen)

FY2010Interim (A)Net Sales

FY2011
Interim (B)䠒䠍䠑Increase/Decrease(Proportion)(B) – (A)䠓䠔䠕䠄䠇䠎䠔.䠏%䠅

䠇䠍䠓䠐

Operating Income

䠄䠑.䠌%䠅䠏䠌 䠄䠕.䠍%䠅

䠓䠍䠄䠎.䠏X䠅䠇䠐䠍

Ordinary Income

䠄䠏.䠓%䠅䠎䠎 䠄䠔.䠌%䠅

䠒䠏䠄䠎.䠔X䠅䠇䠐䠌Extraordinary profit䠌䠌䠌

Extraordinary loss䠌䠍䠇䠍

Net Income䠍䠔䠑䠍䠄䠎.䠔X䠅䠇䠏䠏䠏B/S • Management Index

2011 Interim(Units: 100 mil yen)

FY2010Interim (A)FY2011
Interim (B)䠍,䠓䠓䠕Total assets

Increase/Decrease(B) – (A)

䠍,䠔䠍䠏

䠉䠏䠏

Owned capital (capital ratio)

䠄䠎䠓.䠔%䠅䠐䠕䠑䠄䠏䠍.䠎%䠅䠑䠒䠒䠇 䠓䠍

Interest-bearing liabilities

䠄䠍.䠌X䠅

䠔䠌䠒

䠄䠌.䠔X䠅

䠒䠑䠎䠉䠍䠑䠐(net D/E ratio)

Free cash flow

䠔䠏

䠏䠎䠉䠑䠌

Capital investment

䠎䠓

䠑䠎䠇䠎䠐

Depreciation cost䠐䠑䠐䠒䠌䠑,䠏䠓䠐 jobs

䠑,䠒䠌䠍 jobs䠇䠎䠎䠓 jobs䠕䠌 㼥㼑㼚䠍䠎䠕 㼥㼑㼚䠔䠎 yen䠍䠍䠎 yen䠇䠔 yen䠇䠍䠓 yen

Employees
Exchange rate (USD)(EUR)

䠐Sales by Region

2011 Interim(Units: 100 mil yen)㻝㻘㻜㻜㻜

327 (31.2%)
327 (32.8%)
㻝㻠㻟㻢㻜

㻤㻜㻜

Year-over-year㻝㻞㻠

㻝㻢㻝

275㻡㻜
㻝㻝㻢188㻢㻜㻜㻠㻜㻜

231
186(33.9%) (35.7%)

㻣㻞㻝㻝㻜㻞
㻞㻞㻢㻟㻢㻣㻝㻞㻜㻜

㻝㻜㻟
㻞㻞
㻢㻜

(37.6%)(37.6%)

㻝㻢㻤㻝㻟㻤

㻟㻜
㻣㻢

㻞㻢
㻢㻢

313(39.7%)

㻝㻥㻢㻟㻥
㻣㻢

Overseas +35.3%
Asia +42.4%
Europe +47.9%
Americas +15.4%

Japan +24.1%
㻟㻢㻢㻟㻟㻡

㻟㻤㻠㻝㼟㼠㻌㻓㻜㻥

㻞㼚㼐㻝㼟㼠㻌㻓㻝㻜

㻠㻡㻣

㻠㻣㻡

㻞㼚㼐

㻝㼟㼠㻌㻓㻝㻝

㻜㻝㼟㼠㻌㻓㻜㻤

㻞㼚㼐䠑Sales by Market Segment

2011 Interim(Units: 100 mil yen)

㻝㻘㻜㻜㻜

㻝㻞㻡

Year-over-year㻝㻜㻣Energy &Infrastructure㻤㻜㻜㻠㻝㻝

㻠㻞㻜

㻝㻜㻣

㻢㻜㻜

㻝㻟㻢

+43.2%

㻞㻤㻠Machinery &Sales㻥㻡㻤㻤㻣㻡㻞㻝㻞㻝㻤㻢㻞㻡㻠㻞㻝㻜㻠㻜㻜㻡㻝㻞

+35.2%

㻠㻤㻤㻞㻜㻜㻞㻡㻠㻞㻢㻝㻟㻝㻜㻝㼟㼠㻌㻓㻜㻥㻞㼚㼐㻝㼟㼠㻌㻓㻝㻜

Automotive+19.0%

㻟㻣㻞㻟㻢㻥㻞㼚㼐㻝㼟㼠㻌㻓㻝㻝㻜㻝㼟㼠㻌㻓㻜㻤㻞㼚㼐䠒Sales by Business (Machinery & Tools)(Units: 100 mil yen)

CuttingTools㻝㻡㻜2011 Interim

Machine Tools

RobotsUp 29.5%
year-over-year
㻝㻞㻡

㻝㻜㻜

㻝㻝㻡

Up 81.1%

㻥㻢㻤㻣

㻤㻠

㻣㻥

Up 59.1%

㻤㻜㻣㻠

㻡㻜

㻡㻡
㻡㻝
㻠㻠㻟㻥

㻟㻠

㻟㻢㻞㻢

㻜
09’ 1st 2nd 10’ 1st 2nd 11' 1st

09’ 1st 2nd 10’ 1st 2nd 11' 1st

09’ 1st 2nd 10’ 1st 2nd 11' 1st䠓Sales by Business (Parts, Materials, Other)2011 Interim(Units: 100 mil yen)

Bearings

Up 11.8%㻟㻜㻜

OtherHydraulicequipment㻟㻝㻝㻟㻜㻤㻞㻣㻤㻞㻠㻟㻞㻜㻜

Up 34.4%㻞㻜㻤㻝㻠㻣Up 36.0%㻝㻟㻢㻝㻜㻜㻝㻜㻥㻤㻥㻤㻜㻡㻟㻟㻥

㻡㻝㻢㻥㻡㻥

㻜
09’ 1st 2nd 10’ 1st 2nd 11' 1st09’ 1st 2nd 10’ 1st 2nd 11' 1st09’ 1st 2nd 10’ 1st 2nd 11' 1st䠔Sales & Operating Profit by Business Segment

2011 Interim(Units: 100 mil yen)

FY2010Interim (A)FY2011
Interim (B)Increase/Decrease(%) (B) – (A)Tools & Machines䠍䠓䠑Net Sales
Operating Income䠄䠉䠌.䠔%䠅 䠉䠍

䠄䠔.䠌%䠅

䠎䠒䠌䠄䠇䠐䠔.䠐%䠅

䠇䠔䠐䠎䠌䠉䠇䠎䠎䠐䠑䠕䠄䠇䠍䠔.䠎%䠅

䠇䠓䠌䠐䠍䠄䠇䠐䠔.䠐%䠅 䠇䠍䠏䠒䠕䠄䠇䠏䠒.䠌%䠅

䠇䠍䠔䠕

䠄䠎.䠏X䠅䠇䠑Components
䠏䠔䠔Net Sales
Operating Income

䠄䠓.䠍%䠅

䠎䠓䠄䠔.䠕%䠅

Materials & Others
䠑䠍Net Sales
Operating Income

䠄䠔.䠏%䠅

䠄䠍䠐.䠎%䠅䠒䠍䠑Total Net Sales
Total Operating Income䠐䠄䠑.䠌%䠅䠏䠌䠄䠕.䠍%䠅

䠓䠔䠕䠄䠇䠎䠔.䠏%䠅 䠇䠍䠓䠐䠓䠍䠄䠎.䠏X䠅 䠇䠐䠍䠕

Reasons for Increase/Decrease in Operating Profit

2011 Interim(Units: 100 mil yen)䠍䠎䠌(Profit up 8.2 billion yen)

Raw materials up -䠐Effect of exchange rate -10
Fixed costs, sales overhead, etc. up-27

䠍䠌䠌Improved
operatingcapacity:+67䠔䠌䠒䠌

Cost reductions,etc: +15

䠐䠌FY2010Interim䠎䠌

30

䠌

FY2011Interim(Profit down
4.1 billion yen)71

+4.1 billionyen䠍䠌䠍䠍FY2011 Full Year

FY2011 Full Year Earnings Forecast(Units: 100 mil yen)

FY2010
Full Year (A)Net Sales

FY2011
Full Year
Forecast (B)Increase/Decrease(Proportion)(B) – (A)䠍,䠒䠑䠌 䠄䠇䠎䠎.䠐%䠅

䠍,䠏䠐䠔

䠇䠏䠌䠍

Operating Income

䠄䠒.䠍%䠅

䠔䠎

䠄䠕.䠍%䠅

䠍䠑䠌䠄䠇䠔䠍.䠕%䠅

䠇䠒䠓

Ordinary Income

䠄䠐.䠔%䠅

䠒䠐

䠄䠓.䠕%䠅 䠍䠏䠌䠄䠎.䠌X䠅䠇䠒䠑

Extraordinary profit

䠍䠎䠌

䠉䠍䠍

Extraordinary loss䠎䠎䠌Net income䠑䠑䠍䠌䠌䠄䠇䠓䠕.䠔%䠅

䠇䠐䠐

䠍䠎

B/S • Management Index

FY2011 Full Year
(Units: 100 mil yen)

FY2010
Full Year (A)FY2011
Full Year Forecast(B)Increase/Decrease(B) – (A)䠍㻘䠔䠑䠌䠇䠍䠐䠐䠍㻘䠓䠌䠑

Total assets
Owned capital(capital ratio)䠄䠏䠌㻚䠑㻑䠅

䠑䠍䠕䠄䠏䠏㻚䠌㻑䠅䠒䠍䠌䠇䠕䠌

Interest-bearing liabilities(net D/E ratio)䠄䠌㻚䠕㼄䠅䠒䠏䠕䠄䠌㻚䠓㼄䠅

䠒䠌䠌

䠉䠏䠕Free cash flow

䠍䠐䠓

䠒䠌

䠉䠔䠓

Capital investment

䠑䠓䠍䠌䠌

䠇䠐䠎

Depreciation cost䠕䠎䠕䠑䠇䠎䠑㻘䠐䠕䠍 㼖㼛㼎㼟䠑㻘䠓䠌䠌 㼖㼛㼎㼟䠇䠎䠌䠕 㼖㼛㼎㼟䠔䠕 㼥㼑㼚䠍䠎䠍 㼥㼑㼚䠔䠏 㼥㼑㼚䠍䠍䠏 㼥㼑㼚䠇䠒 㼥㼑㼚䠇䠔 㼥㼑㼚

Employees
Exchange rate (USD)
(EUR)

䠍䠏

Sales by Region(Unitsmil yen)ar et Segment

䕿 Sales by Region䠍 䠒䠑䠌E rope 䠔䠌䠍 䠏䠐䠔䠍㻘䠑䠌䠌䠏䠔 䠍䕿 Sales by ar et䠍 䠒䠑䠌Segment

mericas 䠍䠒䠑 䠍䠑 䠌䠍 䠏䠐䠔E rope 䠑䠓mericas 䠍䠐䠏

sia 䠐䠍䠑

䠏䠒 䠍

Energy/infrast
r ct re 䠎䠌䠎

Ind strial
machinery/sales䠐䠒䠐sia 䠏䠌䠐䠍㻘䠌䠌䠌apan 䠔䠐䠍apan 䠕䠕䠌FRes lts

FForecast䠍䠓 䠒

Sales byEnergy/infrast
r ct re 䠎䠔䠌䠏䠔 䠒Ind strial
machinery/sales䠑䠔䠌䠎䠑 䠌tomotive䠓䠕䠌䠍䠑 䠔tomotive䠒䠔䠎䠑䠌䠌

䠌

FY2011 Full Year

FRes lts

siness (C tting ools

FForecastachines) FY2011 Full Year(Units

C tting ools

䠍䠐achine ools

mil yen)Robotsear-over-year㻟㻜㻜Up㻟㻝㻝㻟㻝㻤㻞㻢㻡㻞㻜㻜Up㻞㻝㻝㻝㻜㻜㻝㻢㻜㻝㻢㻝Up㻝㻡㻡㻝㻞㻜㻝㻟㻡㻝㻞㻟㻢㻡㻣㻜㻜䠍䠑

Sales bysiness (ComponentsFY2011 Full Yearaterials Other)(Unitsearings
ydra licachineryUp㻢㻜㻜㻢㻥㻢mil yen)

Others㻢㻡㻜㻡㻤㻢㻠㻜㻜Up㻠㻡㻝㻟㻣㻟㻟㻝㻜㻞㻜㻜Up㻞㻠㻡㻝㻥㻟㻝㻠㻡㻝㻢㻥㻥㻞㻝㻝㻜㻜䠍䠒et SalesOperating Income bysiness Segment FY2011 Full Year
(Units: 100 mil yen)

FF ll ear ( )laFF ll ear Forecast( )Increase/Decrease( ) ( ) ( )e䠐䠌䠐et SalesOperating Income䠄䠍 䠏 䠅䠑䠑䠐䠑䠄䠔 䠏 䠅䠐䠑䠄䠇䠏䠐 䠒 䠅 䠇䠍䠐䠌䠄䠅䠇䠏䠕e䠔䠏䠎et SalesOperating Incomea er al䠄䠓 䠓 䠅䠒䠐䠄䠔 䠕 䠅䠕䠒䠌䠄䠇䠍䠑 䠏 䠅 䠇䠍䠎䠓䠔䠑䠄䠇䠏䠎 䠓 䠅䠇䠎䠌䠍䠐䠑䠄䠇䠏䠍 䠎 䠅䠇䠏䠐䠎䠌䠄䠇䠑䠔 䠕 䠅䠇䠓er䠍䠍䠌

et SalesOperating Income䠄䠍䠍 䠐 䠅䠄䠍䠏 䠔 䠅䠍 䠏䠐䠔

otal et Sales
otal Operating Income䠍䠎䠄䠒 䠍 䠅䠔䠎䠍 䠒䠑䠌䠄䠕䠊䠍 䠅䠍䠑䠌䠄䠇䠎䠎 䠐 䠅 䠇䠏䠌䠍䠄䠇䠔䠍 䠕 䠅䠇䠒䠓
䠍䠓Reasons for Increase/Decrease in Operating Income FY2011 Full Year
(Unitsmil yen)

( rofit p䠎䠐䠌billion yen)

Effect of exchange rate 䕧Cost
red ctions
etc

䠎䠌䠌

rices down 䕧Raw materials p 䕧p 䕧

Fixed costs sales overhead etc

䠍䠒䠌F

Improved
operatingcapacity( rofit down
billion yen)䠍䠎䠌billion yenF䠔䠌䠐䠌䠌䠍䠔

Orders Sales

ac log byarter

FY2011 Full YearOrders Salesac log(Unitmil yen)㻡㻜㻜㻮㼍㼏㼗㼘㼛㼓㻠㻡㻜

䊻Forecast㻿㼍㼘㼑㼟㻻㼞㼐㼑㼞㼟㻟㻤㻥㻠㻜㻜䕰㻠㻝㻣㻟㻟㻥㻟㻠㻡㻝㻽㻞㻽㻟㻥㻠㻟㻡㻞㻟㻟㻣㻟㻡㻜㻞㻤㻠㻟㻜㻜㻞㻡㻜㻞㻡㻜㻞㻜㻜㻠㻟㻝㻝㻥㻢㻞㻣㻜㻝㻥㻣㻞㻝㻢㻝㻡㻜㻝㻥㻤㻝㻜㻜㻝㻢㻣㻝㻢㻝㻟㻽㻠㻽㻝㻠㻤㻞㻤㻢㻞㻟㻢㻡㻜㻜㻝㻽㻞㻽㻝㻽㻞㻽㻟㻽㻠㻽㻟㻽㻠㻽䠍䠕䠎䠌FInterim Res lts

F ll ear Forecast

䕿 rofit-and-loss statement(Units㻲㼅㻞㻜㻝㻝㻵㼚㼠㼑㼞㼕㼙
et Saleserlamil yen)㻲㼅㻞㻜㻝㻝
㻲㼡㼘㼘㻌㼅㼑㼍㼞㻌㻲㼛㼞㼑㼏㼍㼟㼠䠓䠔䠕䠍䠈䠒䠑䠌Operating Income㻔䠕㻚䠍㻑㻕䠓䠍㻔䠕㻚䠍㻑㻕㻌 䠍䠑䠌Ordinary Income㻔䠔㻚䠌㻑㻕䠒䠏

㻔䠓㻚䠕㻑㻕㻌㻌㻌㻌䠍䠏䠌

Extraordinary profit䠌䠌Extraordinary loss䠍䠎

et Income䠑䠍䠍䠌䠌䠎䠍Expanding in Emerging
et Sales(Units䕿mil yen)㻤㻜㻜er eaar etsalelarealee eru ree ee㻯㼑㼚㼠㼞㼍㼘㻌㻒㻌㻿㼛㼡㼠㼔㻌㻭㼙㼑㼞㼕㼏㼍㻱㼍㼟㼠㼑㼞㼚㻌㻱㼡㼞㼛㼜㼑㻵㼚㼐㼕㼍㻌㻒㻌㻹㼕㼐㼐㼘㼑㻛㻺㼑㼍㼞㻌㻱㼍㼟㼠㻭㻿㻱㻭㻺㻌㻒㻌㻻㼏㼑㼍㼚㼕㼍㻱㼍㼟㼠㻌㻭㼟㼕㼍㻯㼔㼕㼚㼍㻢㻜㻜

erF re a䠄2

䠅CentralSo th merica

Eastern E rope㻠㻜㻜eru re00
120

1

2

12 12

India

iddle/ ear EastSEOceania

East sia

㻞㻜㻜

China㻜
㻜㻢

㻜㻣

㻜㻤

㻜㻥

㻝㻜

㻞㻜㻝㻝

㻞㻜㻝㻞㻞㻜㻝㻟
䠎䠎

Expanding in Emerging Markets 2Efforts in the Chinese

Mid-term Planar etplace

Strengthening Sales
䞉Increase local sales staff toExpand sales and service locations

䞉Pioneer manufacturers of construction andmachine tools.

CIMT: The China Int’l Machine Tool Show

Hydraulic machinery 䊻 Expand products for Cutting tools & Machine,bearings, robots.
䞉Develop toward manufacturers of automobiles & automotive parts.
Machinery & tools 䊻 Develop for bearings, car control valves, robots.
Mid-term Shift to local production for main products.
䠎䠏Expanding in Emerging Markets

Mid-term Plan

Efforts in the Indian Marketplace
ull-Scale Deployment of Tools &Machines usiness䞉 egin local production of precision tools.
achi Motherson Precision td.
Manesarew Delhi areaperations begin une 22.

䞉Increase deliveries to local, apanese, andestern manufacturers.

Precision tools 䊻 Develop for machine tools, robots, bearings, etc.

Mid-term Expand precision tool line-up, develop for parts business.

Mid-term Management oals 2et Sales

nit:

䠎䠐Mid-term Plan
perating Income
nits:
mil yenmil yen㻺㼑㼠㻌㻿㼍㼘㼑㼟㻻㼜㼑㼞㼍㼠㼕㼚㼓㻌㻵㼚㼏㼛㼙㼑㻟㻘㻜㻜㻜㻝㻤㻜㻞㻘㻡㻜㻜㻝㻡㻡㻝㻢㻣㻝㻡㻡㻝㻡㻜㻝㻡㻜㻝㻟㻞㻞㻘㻜㻜㻜㻞㻜㻜㻝㻜㻜㻝㻘㻡㻜㻜㻝㻘㻜㻜㻜㻝㻜㻜㻤㻞㻣㻢㻟㻤㻞㻘㻝㻜㻜㻡㻜㻝㻘㻢㻡㻜㻝㻘㻟㻟㻥 㻝㻘㻠㻢㻢 㻝㻘㻡㻤㻤 㻝㻘㻣㻢㻜 㻝㻘㻤㻢㻣 㻝㻘㻥㻟㻢 㻞㻘㻜㻠㻤 㻝㻘㻜㻣㻡 㻝㻘㻟㻠㻤㻜㻡㻜㻜䕧㻟㻞㻜㻡㻜䕧㻜㻞㻜㻟㻜㻠㻜㻡㻜㻢㻜㻣㻜㻤㻜㻥㻝㻜㻝㻝㻝㻞㻞㻜㻝㻟䠎䠑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 businessplans, and are based on the assumption of an economic environmentand business 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 a different earnings forecast.