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For Investors

I would like to express my gratitude to all our stakeholders for their continuing support.

 

We have completed the settlement of accounts for the period through the second quarter of our 96th fiscal year (April 1 to September 30, 2018). At this point, I would like to provide an update for all those of you who provide vital support for our day-to-day business activities on our business performance and related aspects.

 

During the period through the second quarter of this fiscal year, while certain regions suffered from the consequences of earthquakes, typhoons, torrential downpours, and other natural disasters, Japan’s economy maintained a pattern of gentle recovery. We continued to see signs of improvement attributable to government economic and monetary policies in areas including corporate business performance, employment, and income. Nevertheless, against a backdrop of instability in international affairs, the future remains unclear. This instability includes geopolitical risks in certain countries and regions; political and economic trends in the United States; concerns about the rise of protectionist sentiment around the world; and slowing economic growth in China and other emerging markets.

 

Against this backdrop, despite a decrease in sales from large-scale transactions in various types of plant equipment to overseas and domestic markets, our consolidated business performance was marked by remarkably strong sales in automation equipment for the automotive industry and equipment for manufacturing electronic components and other products.

 

The broad range of topics that need to be addressed in the automotive industry includes the need for lighter vehicle weight and improved environmental performance. Developments include the accelerating adoption of electronics for use in automatic controls and self-driving technologies, progress in electric vehicles, and powertrain innovations. We can help automakers meet these challenges in various ways; and by realizing structures that effectively take advantage of these opportunities, we can achieve considerable growth and advances. The environment in which we do business continues to change. To expand our earning power, we must advance our existing businesses still further while creating new businesses from interactions between existing businesses. To begin doing so, we will make steady progress toward the targets identified in our current DASH2018 mid-term management plan and establish a style of business that will allow us to move forward toward new growth in our next mid-term management plan. At the same time, we will remain aware at all times of the need to further evolve our products, human resources, and organization.

 

Alongside the changes in the world, the ways in which companies do business are changing. At times like this, we must heighten our awareness of issues in the areas of the environment, society, and governance (ESG). We must consider what we can do and how we can contribute to society as a general trading company specializing in machinery, then put our findings into practice. We are committed to strengthening our value as an enterprise not just by growing company profits, but by maintaining a heightened sense at all times of prospects that might lie beyond the scope of our current businesses.

 

We are deeply grateful for the continuing support of our stakeholders.

 

November 2018

Ichiro Uno

President & CEO

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