Message from the CEO

To Our Shareholders

 We would appreciate it if you could confirm the business report on the operations and results for the 113th term of the NOK Group (April 1, 2018 to March 31, 2019).

Recognizing the importance of achieving the basic management policy of establishing a highly profitable and strong corporate group by “producing low-cost original products―backed by technology―which are useful to society, and selling them at reasonable prices all over the world,” the NOK Group develops business management based on this policy.

In the consolidated business results for the fiscal year ended March 31, 2019, net sales were 669,482 million yen (down 8.2% from the previous fiscal year). In profit and loss, operating income was 23,140 million yen (down 48.5% from the previous fiscal year) and ordinary income was 31,135 million yen (down 44.7% from the previous fiscal year). Profit attributable to owners of parent was 3,419 million yen (down 90.3% from the previous fiscal year).

During the current consolidated fiscal year, the Japanese economy remained on a gradual recovery trend due to stable capital expenditures despite the effects of natural disasters such as the floods in western Japan. Looking overseas, while the U.S. economy remained resilient, China experienced slower economic growth mainly due to the impact of the trade dispute with the U.S.

Under such circumstances, the NOK Group saw both net sales and operating income decline due to a considerable decrease in the Electronic Product business although sales of the Seal business increased. With recognition that it is key to recovering the earnings capability of the Electronic Product business, we are determined to push forward with various measures.

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

We would like to ask a favor of each shareholder to have a deep understanding of the business environment surrounding the NOK Group, management direction and our determination. We also ask you for your further support and cooperation.

June 2019

Chairman of the Board  Masato Tsuru

President  Kiyoshi Doi