To whom it may concern

Representative: Kazumasa Kimura, Representative Director

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

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

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)

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.

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

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.

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.