(Translated) July 29, 2022

To whom it may concern

Company name: Nabtesco Corporation

Representative: Kazumasa Kimura, Representative Director

(Securities Code: 6268; Prime Section of the Tokyo Stock Exchange)

Contact: Yasushi Minegishi,

General Manager, Corporate Communication Department. (Tel: +81-3-5213-1134)

Notice of the Differences between FY2022 First Six-month of Consolidated Financial Results and

its Financial Forecast, and the Revision to FY2022 Financial Forecast

Nabtesco Corporation (hereinafter, "the Company") hereby announces that there are differences between FY2022 first six-month consolidated forecast and the result as follows;

Moreover, the Company announces the revision of FY2022 financial forecast due to the current business condition as follows.

1. Differences between FY2022 first six-month of consolidated financial results and its financial forecast (January 1, 2022 to June 30, 2022)

(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)

153,500

13,400

14,400

7,700

64.03

(Announced on Feb.10, 2022)

Results (B)

142,195

7,886

(5,674)

(5,106)

(42.56)

Change (B-A)

(11,305)

(5,514)

(20,074)

(12,806)

－

Rate of Change (%)

(7.4)

(41.1)

(139.4)

(166.3)

－

(Reference) Previous

145,708

14,613

108,465

68,056

556.45

year's results

(2) Reason for the differences

Sales was behind the previously announced forecast due to the temporary spread of COVID-19 at the domestic plant in Precision Reduction Gears, and in Hydraulic Equipment for construction machinery in addition to lower- than-expected demand in the Chinese market, a city lockdown in Shanghai caused a temporary suspension of operations at a Chinese plant. In addition, procurement delays, mainly for electronic components and others, in the Transport Solution Businesses and in Packaging Machine resulted in lower sales results than previously forecast.

Operating income fell short of the previous forecast due to the decrease in net sales, as well as the impact of higher raw material prices and logistics costs.

As for income before income taxes and income attributable to owners of the parent company, in addition to the decrease in operating income, the valuation loss of Harmonic Drive Systems, Inc. (hereinafter, as "HDS") shares held by the Company resulting from the revaluation at the stock price as of the end of the second quarter of the current fiscal year (closing price on June 30, 2022).

2. Revision to the full-year FY2022 consolidated financial forecast (January 1, 2022 to December 31, 2022)

(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)

320,000

33,000

35,000

23,400

194.57

(Announced on Feb.10, 2022)

Revised forecast (B)

310,000

26,000

35,000

23,400

195.02

Change (B-A)

(10,000)

(7,000)

－

－

－

Rate of Change (%)

(3.1)

(21.2)

－

－

－

(Reference) Previous

299,802

30,017

101,966

64,818

534.67

year's results

  1. Reason of revision

Sales and operating income are expected to decrease from the previous forecast due to the impact of the city lockdown in Shanghai in the first half, in addition to the weak demand in the Chinese market for Hydraulic Equipment for construction machinery, despite continued high demand for industrial robots in the Precision Reduction Gear business.

Income before taxe and net income attributable to owners of the parent are expected to remain unchanged

from the previous forecast due to a gain (4.9 billion yen) from the completion of the partial sale of HDS shares on July 11, 2022 and foreign exchange gains resulting from yen depreciation, despite a decrease in operating income. The impact of the fair value valuation of HDS shares that we continue to hold (valuation gain/loss) has not been changed from the previous forecast because it is difficult to predict the share price as of the end of December 2022.

The dividend for the fiscal year ending December 31, 2022 remains unchanged from the previous forecast.

【Referential information】

Full-year forecast for consolidated FY2022 by segment (January 1, 2022 through December 31, 2022)

(Sales)

(Million yen)

Component

Transport

Accessibility

Others

Corporate or

Total

solutions

Solutions

solutions

elimination

Previously announced

forecast (A)

151,800

73,200

73,300

21,700

－

320,000

(Announced on Feb.10, 2022)

Revised forecast (B)

145,000

71,700

74,100

19,200

－

310,000

Change (B-A)

(6,800)

(1,500)

800

(2,500)

－

(10,000)

Rate of Change (%)

(4.5)

(2.0)

1.1

(11.5)

－

(3.1)

(Reference) Previous

138,130

67,744

75,108

18,820

299,802

year's results

(Operating income)

(Million yen)

Component

Transport

Accessibility

Others

Corporate or

Total

solutions

Solutions

solutions

elimination

Previously announced

forecast (A)

26,400

6,600

7,100

2,900

(10,000)

33,000

(Announced on Feb.10, 2022)

Revised forecast (B)

22,600

5,800

5,400

2,100

(9,900)

26,000

Change (B-A)

(3,800)

(800)

(1,700)

(800)

100

(7,000)

Rate of Change (%)

(14.4)

(12.1)

(23.9)

(27.6)

－

(21.2)

(Reference) Previous

22,903

5,617

7,642

2,736

(8,882)

30,017

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.

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Nabtesco Corporation published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 07:24:11 UTC.