Nabtesco : Notice of the Differences b/w FY2021 First Six-month of Consolidated Results and its Forecast and the Revision to FY2021 Forecast

(Translated) July 30, 2021

To whom it may concern

Company name: Nabtesco Corporation

Representative: Katsuhiro Teramoto, Representative Director

(Securities Code: 6268; 1st Section, Tokyo Stock Exchange)

Contact: Yasushi Minegishi,

General Manager, Corporate Communication Department. (Tel: [phone])

Notice of the Differences between FY2021 First Six-month of Consolidated Financial Results and its

Financial Forecast and the Revision to FY2021 Financial Forecast

Nabtesco Corporation (hereinafter, "the Company") hereby announces that there are differences between FY2021 first six-month consolidated forecast and the result as follows;

Moreover, the Company announces the revision of FY2021 financial forecast due to the current business condition as follows.

1. Differences between FY2021 first six-month of consolidated financial results and its financial forecast (January 1, 2021 to June 30, 2021)

(1) Differences between consolidated financial results and financial forecast

		Operating	Income before	Net income	Basic earnings
	Sales	attributable to	per share
	income	tax
		owners of parent	(Yen)
Previously announced	Million yen	Million yen	Million yen	Million yen	Yen
forecast (A)
139,000	10,800	144,400	99,000	824.06
(Announced on Feb.10, 2021)
Results (B)	145,708	14,613	108,465	68,056	556.45
Change (B-A)	6,708	3,813	(35,935)	(30,944)	－
Rate of Change (%)	4.8	35.3	(24.9)	(31.3)	－
(Reference) Previous	136,486	13,669	14,693	9,392	75.66
year's results

(2) Reason for the differences

Sales and operating income exceeded the previously announced forecast due to the expansion of automation demand for industrial robots and general industry in Precision Reduction Gears, as well as Q1 strong demand in China and demand recovery in Europe, the US and Southeastern Asian countries, etc in Hydraulic Equipment.

Income before tax was below the previously announced forecast because of the re-valuation of Harmonic Drive Systems Inc. (hereinafter, as "HDS") shares held by the Company as of June 30, 2021 (based on the closing price of the day).

Net income attributable to owners of parent was below the previously announced forecast due to the decrease of valuation gain regarding HDS as above and income tax increase by the exclusion of HDS.

2. Revision to the full-year FY2021 consolidated financial forecast (January 1, 2021 to December 31, 2021)

(1) Revision to financial forecast

					Net income	Total basic
			Operating	Income before	earnings per
		Sales	attributable to
		income	tax	share
			owners of parent
					(Yen)
	Previously announced	Million yen	Million yen	Million yen	Million yen	Yen
	forecast (A)
	286,000	29,000	163,000	112,200	933.93
	(Announced on Feb.10, 2021)
	Revised forecast (B)	306,000	33,000	169,000	110,800	914.30
	Change (B-A)	20,000	4,000	6,000	(1,400)	－
	Rate of Change (%)	7.0	13.8	3.7	(1.2)	－
	(Reference) Previous	279,358	28,533	33,718	20,505	165. 18
	year's results
(2) Reason of revision

Sales and operating income is expected to exceed the previously announced forecast because favorable demand continues in industrial robots and general industry in Precision Reduction Gears and demand recovers in Europe, the US and Southeastern Asian countries, etc in Hydraulic Equipment.

Income before tax is expected to exceed the previously announced forecast due to operating income increase and gain from currency effect. The Company does not change the valuation gain of HDS shares because share price forecast as of December 31, 2021 is currently unforeseen.

Net income attributable to owners of parent is expected to be below the previously announced forecast due to the income tax increase by the exclusion of HDS.

Moreover, the Company does not change dividend forecast.

【Referential information】

Full-year forecast for consolidated FY2021 by segment (January 1, 2021 through December 31, 2021)

(Sales)

							(Million yen)
		Component	Transport	Accessibility	Others	Corporate or	Total
		solutions	Solutions	solutions	elimination
	Previously announced
	forecast (A)	122,800	70,600	72,400	20,200	－	286,000
	(Announced on Feb.10, 2021)
	Revised forecast (B)	141,800	70,300	74,400	19,500	－	306,000
	Change (B-A)	19,000	(300)	2,000	(700)	－	20,000
	Rate of Change (%)	15.5	(0.4)	2.8	(3.5)	－	7.0
	(Reference) Previous	109,855	78,090	73,665	17,747		279,358
	year's results
(Operating income)
							(Million yen)
		Component	Transport	Accessibility	Others	Corporate or	Total
		solutions	Solutions	solutions	elimination
	Previously announced
	forecast (A)	20,400	6,600	7,300	2,900	(8,200)	29,000
	(Announced on Feb.10, 2021)
	Revised forecast (B)	25,000	6,600	7,600	2,800	(9,000)	33,000
	Change (B-A)	4,600	－	300	(100)	(800)	4,000
	Rate of Change (%)	22.5	－	4.1	(3.4)	－	13.8
	(Reference) Previous	17,673	3,338	7,733	2,329	(2,540)	28,533
	year's results

Descriptions in this document concerning future figures including forecasts for operating results, etc. are based on currently available information and certain assumptions that the Company considers reasonable. Actual results may vary significantly from such forecasts due to a variety of factors.