Message from the CEO

To Our Shareholders

 We are pleased to report our business results for the interim period of the 112th term (April 1, 2017 to September 30, 2017).

I would like to express my sincere gratitude for your unwavering support again during this term.

The NOK Group has been implementing a business management plan with which it hopes to become a strong business group with high profitability, under its management basis of producing low-cost original products―backed by technology―which are useful to society, and selling them at reasonable prices all over the world.

During the first six months of the current consolidated fiscal year, the Japanese business environment surrounding the Group remained on a gradual recovery trend, positively affected by public investments, governmental economic measures and expanding corporate capital expenditures. In overseas markets, the U.S. economy remained solid and the slowdown of the economic growth in China has bottomed out for the time being, yet uncertainty about the future is emerging.

Under these circumstances, the Group has promoted various measures with the aim of achieving sustainable growth with an eye toward the future.

In the first half of the fiscal year, the Group’s net sales amounted to 357,402 million yen, up 6.7% year on year. The Group recorded an operating income of 20,098 million yen, up 77.4% year on year; an ordinary income of 26,598 million yen, up 175.7% year on year; and a profit attributable to owners of the parent of 16,248 million yen, up 246.1% year on year.

For details, please refer to the "Business Report" mentioned below.

We ask for your understanding of the current business climate and our management direction, as well as our commitment.

The NOK Group greatly appreciates your continued support and guidance.

December 2017

Masato Tsuru
Chairman of the Board and President of NOK CORPORATION