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 112th term of the NOK Group (April 1, 2017 to March 31, 2018).

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, 2018, net sales were 729,341 million yen (up 2.3% from the previous fiscal year).

In profit and loss, operating income was 44,934 million yen (up 13.0% from the previous fiscal year) and ordinary income was 56,291 million yen (up 23.2% from the previous fiscal year). Profit attributable to owners of parent was 35,281 million yen (up 29.1% from the previous fiscal year).

During the current consolidated fiscal year, the Japanese economy remained on a gradual recovery trend due to the effects of economic measures including public investments and the increasing trend of capital expenditures. Overseas, the U.S. economy remained robust and the Chinese economy was stable.

Under such circumstances, the NOK Group’s consolidated net sales and operating income increased due to strong demand in the Seal business. However, having recognized that further seeking increased profitability is a challenge of the NOK Group, we diligently promote a set of countermeasures.

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 2018

Chairman of the Board  Masato Tsuru

President  Kiyoshi Doi