Message from the CEO

To Our Shareholders

 We would like to express our sincere thanks for your loyal patronage.

We would appreciate it if you could confirm the business report on the operations and results for the 111th term of the NOK Group (April 1, 2016 to March 31, 2017).

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, 2017, net sales were 713,138 million yen (down 4.4% from the previous fiscal year).

In profit and loss, operating income was 39,776 million yen (down 17.6% from the previous fiscal year) and ordinary income was 45,709 million yen (down 14.9% from the previous fiscal year). Profit attributable to owners of parent was 27,328 million yen (down 9.1% from the previous fiscal year).

During the current fiscal year, Japan’s economy remained on a recovery path due to the effects of economic stimulus measures, including public investments, and an upward trend in capital expenditure. In overseas markets, there was a pause in the slowdown of China’s economy, while the U.S. economy remained similarly robust.

Under such circumstances, the NOK Group’s net sales decreased due to a decline in sales of the Electronic Device Product business, despite a sales increase in the Seal business. Having recognized that stabilizing sales is the biggest challenge of the NOK Group, we diligently promote a set of countermeasures incorporated into the three-year plan launched in the current fiscal year.

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 2017

Masato Tsuru
Chairman of the Board and President of NOK CORPORATION