Securities code: 6268

Management Policy and Growth Strategy President & CEO Kazuaki KOTANI 4 December, 2012 1

Agenda

I.

Steps in the Consolidation

II.

Company Overview

III.

Forecast for 2013/3 Consolidated Figures

IV.

Consolidated Annual Results and Targeted Financial Figures

V.

Main Products by Business Segment

VI.

The Long-Term Vision for 2021/3

VII. Growth & Investment Strategy

2

Steps in the Consolidation

Oct., 2004 Merged into Nabtesco

Established in 1944

Sept., 2003 Establishment of Nabtesco (as a holding company)

Nov., 2002 Established in 1925

Conclusion of basic agreement with regard to consolidation

3

Company Overview Aiming to be the world’s leading manufacturer of Motion Control Systems and related components for Air, Land and Marine applications

Company Name Nabtesco Corporation Established

September 29, 2003

Address

7-9, Hirakawacho 2-chome, Chiyoda-ku, Tokyo 102-0093, Japan

Capital

10 billion yen

Representatives

President & CEO: Kazuaki KOTANI

Employees*

Consolidated 5,119

Consolidated subsidiaries* Japan: 11 (other 6 equity-method affiliates) International: 31 (other 3 equity-method affiliates) (*as of September 2012) 4

Forecast for 2013/3 Consolidated figures 2012/3

2013/3

H1 result

H2 result

FullFull-year result

FullFull-year (previous forecast)

H1 result

H2 forecast

FullFull-year forecast

97,671 (+23.5%)

100,856 (+11.8%)

198,527 (+17.3%)

210,000 (+5.8%)

90,666 (-7.2%)

94,334 (-6.5%)

185,000 (-6.8%)

12,234 (+29.4%)

10,624 (-1.2%)

22,858 (+13.1%)

24,200 (+5.9%)

7,595 (-37.9%)

9,405 (-11.5%)

17,000 (-25.6%)

Operating profit margin

12.5%

10.5%

11.5%

11.5%

8.4%

10.0%

9.2%

Ordinary profit

13,201 (+27.9%)

11,455 (-4.9%)

24,656 (+10.2%)

26,100 (+5.9%)

8,470 (-35.8%)

10,730 (-6.3%)

19,200 (-22.1%)

8,351 (+41.2%)

6,405 (-14.3%)

14,756 (+10.2%)

16,800 (+13.8%)

6,513 (-22.0%)

7,787 (+21.6%)

14,300 (-3.1%)

17

17

34

39 (forecast)

18

18 (forecast)

36 (forecast)

(JPY million)

Sales year-on-year) (year-

Operating profit (yearyear-onon-year)

year-on-year) (year-

Net profit (yearyear-on-year)

Dividend per share (Yen)

Notes： Full-year forecast for 2013/3 consolidated figures Notes： Full-year forecast for 2013/3 consolidated figures The full-year forecast for 2013/3 has been revised downward in consideration of the H1 result and some variation factors, such as The full-year forecast for 2013/3 has been revised downward in consideration of the H1 result and some variation factors, such as slower than expected recovery of demand for construction machinery in China. Dividend per share will also be revised downward from slower than expected recovery of demand for construction machinery in China. Dividend per share will also be revised downward from 39 yen to 36 yen, which, however, is a 2 yen increase from the previous fiscal year’s level. 39 yen to 36 yen, which, however, is a 2 yen increase from the previous fiscal year’s level.

5

Co nsolidated Annual Sales & Profit by Consolidated Business Segment 250,000

Precision

Transport

Aircraft & Hydraulic

Industrial

Sales (JPY million)

198,527 200,000

150,000

174,254 32,912 48,981

100,000

169,303

158,170 28,026 46,765

126,249 15,278

32,438 48,289 48,182

50,000

35,725

51,390 31,987

0

41,492 27,589

Operating Profit & Net Profit (JPY million) (11.1%)

46,800

29,575

41,798

48,800

(11.9%)

22,858

15,000

(7.6%)

12,012 6,060

10,000

11,025

4,554

2,506 4,682 4,425

6,466

(6.3%)

7,964

13,387 5,915

(9.2%) 8,013

14,756 6,068

603 3,654

4,133

2,614 2,209

1,804 4,017 1,902

2008/3

2009/3

2010/3

0

(11.5%)

20,212

19,429 4,682

5,000

47,000

64,240 59,106

30,000

20,000

42,400

41,888 56,634

25,000

44,199

185,000

17,000

OPM

OP

6,200

14,300 5,100

5,609

6,130

2,220

2,646

4,100

2011/3

2012/3

2013/3 Forecast

NP

1,600

6

Main Products: Precision Equipment

Precision Reduction Gears Features High positioning accuracy, high rigidity No.1 Others Nabtesco 60%

Approx. 60% of the world market share for joints of industrial robots No.1

Others Nabtesco 60%

Approx. 60% of the domestic market share for machine tool ATCs (ATC = Automatic Tool Changer)

Main Customers Robots: Fanuc, Yaskawa Electric, KUKA Roboter (Germany), ABB Robotics (Sweden) Machine tools: Yamazaki Mazak, Okuma, Mori Seiki

7

Main Products: Transport Equipment Railroad Vehicles Brake Systems

No.1

Others

Nabtesco 50%

Approx. 50% of the domestic market share

No.1

Door Operating Systems

Others

70%

Marine Vessels 2-stroke Main Engine Control Systems

No.1

Others

Approx. 70% of the domestic market share Approx. 60% of the domestic market share (Approx. 40% of the world market share)

No.1

Others

Nabtesco 70%

Others

Air Dryers

Nabtesco 60%

Commercial Vehicles Wedge Chambers

Nabtesco

Approx. 70% of the domestic market share

No.1

Nabtesco 85%

Approx. 85% of the domestic market share

Main Customers Railroad vehicle equipment JR companies, Private railway companies, KHI, Bullet train and subway projects in China, etc. Marine vehicle equipment KHI, Mitsui Engineering & Shipbuilding, MHI, Hitachi Zosen, MHI, Diesel United, Hyundai Heavy Industries (Korea), MAN Diesel (Denmark) Commercial vehicle equipment Mitsubishi Fuso, Truck & Bus, Hino, Isuzu, UD Trucks 8

Main Products: Aircraft & Hydraulic Equipment Flight Control Actuation Systems (FCA) ⃞ One of the four major world players in FCA manufacturing (major FCA supplier to Boeing Company) ⃞ Expanding business into engine accessories and electric power generation generation No.1 Nabtesco 100%

100% share of the FCA market for domesticallyproduced aircrafts

Traveling Motors for hydraulic excavators No.1 Nabtesco Others

30%

Approx. 30% of the world market share Drive units for wind turbine generators

Main Customers Hydraulic equipment Traveling motors: (Japan) Komatsu, Kobelco Construction Machinery, Sumitomo Construction Machinery Manufacturing, (China) Sany, Xugong Excavator, Zoomlion, Liu Gong, (Korea) Doosan Drive units for wind turbine generators: MHI, Others Aircraft equipment Boeing, MHI, KHI, IHI, Japanese Ministry of Defense, ANA, Singapore Airlines

9

Main Products: Industrial Equipment

Automatic Doors

Platform Screen Doors

No.1

No.1

Nabtesco Approx. 50% of the domestic

market share for building automatic doors (over 20% of the world market share)

50% Others

Others

Nabtesco 95%

Approx. 95% of the domestic market share (accumulated total)

Packaging Machines No.1 Others Nabtesco 85%

Approx. 85% of the domestic market share for automatic fillers/sealer machines for retort pouch foods

Main Customers Automatic doors Automatic doors for buildings: Major general contractors, sash manufactures, hospitals, banks, public institutions, etc. Platform doors: Subway projects in France, subway projects in China Packaging machines Ajinomoto, Marudai Food, Mitsui Sugar, P&G, Kao, Lion, Mars (France), beverage companies in US, food companies in China

10

Targeted Financial Figures for 2021/3

(JPY billion)

2012/3

2013/3

2021/3







198.5

185

400

Sales Operating profit O.P. margin

22.8

17

60

11.5%

9.2%

15.0%

ROA

7.6%

7.0%

11.0%

ROE

15.6%

13.6%

18.0%

Notes： Notes： The The“Long-Term “Long-TermVision” Vision”for forfiscal fiscal2020 2020released releasedininMay May2012 2012 Risk Riskfactors： factors： Change Changeinincompetitive competitiveclimate climatewith withthe theappearance appearanceofofthird-party third-partysuppliers suppliersininemerging emergingcountries countries 11

Positioning of Main Businesses Precision

Transport

Aircraft & Hydraulic

Industrial

Green energy related

Precision Reduction Gears Solar Tracking Equipment

Commercial Vehicle Equipment

Hydraulic Equipment

profitability

Marine Vessel Equipment

Packaging Machines

Redirection considered

Drive Units for Wind Turbine Generators Overseas sales expansion Overseas sales expansion (China, USA) (China, USA)

Automatic Doors

Aircraft Equipment

Railroad Vehicle Equipment

Stable growth

MidMid- and longlong-term growth drivers

growth

12

Future Prospects Precision Reduction Gears

Hydraulic Equipment

Automatic Doors

Growth with market expansion of robots Development in new fields (solar thermal power generation, etc.)

Long-term demand for construction machinery in emerging countries led by infrastructure investment

Expansion of sales networks in four regions of the world through M&A Expansion of MRO business both within and outside Japan

Railroad Vehicle Equipment

Growth in the Chinese market (high-speed railway, intercity transport, and urban transport) Entry into the US and European markets

Expansion of MRO business - Expanding：Aircraft equipment, Marine vessel equipment, Automatic doors (Europe, USA) - To be expanded：Railroad vehicle equipment (outside Japan), Automatic doors (Japan) (MRO = Maintenance, Repair and Overhaul)

13

Consolidated Sales by Business Segment for 2021/3 (JPY billion)

400 400

300

New Business (except derivatives of existing products) Precision Transport Aircraft & Hydraulic Industrial

198.5

25 95

95

200

44.1 48.2

110

100

64.2 41.7

75

0

Status in FY 2011 (2012/3)

Status in FY 2020 (2021/3) 14

Consolidated Sales by Geographic Segment for 2021/3 Status in FY 2011 (2012/3)

120 billion yen (30%)

35.7 billion yen (18%) 111.8 billion yen (56%)

Status in FY 2020 (2021/3)

400

120 billion yen (30%)

billion yen

198.5

billion yen 51.0 billion yen (26%)

Japan

Europe & N. America

160 billion yen (40%)

Asia & emerging countries

Overseas employees ratio： 60% 15

Growth Strategy Fostering the Development of World-Class Human Resources and Speeding up Business 1. Promoting feeling of unity among employees through “The Nabtesco Way” 2. Reforming the personnel system by measures such as introducing an incentive system 3. Rebuilding of in-house companies and separation of management from execution in order to speed up business 4. Establishment of a cross-organizational department for higher business efficiency (Production Division, New Business Development Office, Technological Development Satellite)

Creation of New Business 1. Renewable energy business (solar tracking equipment & drive units for wind turbine generators)：15 billion yen per year 2. New business：25 billion yen per year 3. R&D - Conduct research into component technologies on a global scale - Search for and study state-of-the-art technologies relevant to new products (industry-government-academia) - Secure high-level and world-class engineers 16

Investment Strategy (For the period from 2012/3 to 2021/3)

M&A 100 billion yen

Technology a. Creation of additional value through mechatronics products b. In relation to nursing care and medical treatment

Market

Target Target

Expansion of sales channels in the automatic door business

Production Capacity i.e. surface treatment

Areas Areasnot not addressed addressedso sofar far

CAPEX 100 billion yen Automation

Target Target

Promotion of Production in Overseas Markets

Black Box 17