Questions and Answers at the Investor Conference (February 07, 2018)

Q1: Are consolidated sales for the third quarter as expected?

Overall sales were as expected. Sales remained as forecasted in Overseas Market, Financial Market and Retail and Transporting Market, however, in Amusement Market, sales fell below expectation due to the influence of the regulation change on pachinko and pachislot machines.

Q2: Please explain how sales to the overseas retail industries are going.

Sales to the overseas retail industries are steady. Although sales in the U.S. are below the year-earlier period due to the special demand for coin sorters having run its course, sales are increasing very steadily mainly in Germany and France in Europe.

Q3: What is the background of the fourth-quarter forecast for Overseas Market?

We are expecting sales to the U.S. retail industries to recover. Further, sales in Europe will increase as expected since sales to the retail industries continue to be strong, and sales to the financial institutions are improving compared to the second-quarter. While the market environment continues to be severe in Asia and for OEM, we believe that the favorable results in Europe and the U.S. will contribute to an overall achievement of the Q4 forecast for Overseas Market.

Q4: Please tell us about the current condition of the face recognition business and the robotic SI business.

We are expanding the face recognition business by partnering with other companies in various fields.Although recently the demand in medical facilities is spreading, we believe that further increase in sales is required.
In the robotic SI business, we are endeavoring to cope with the increasing number of business inquiries. Particularly since the international robot exhibition held recently in which we participated, inquiries have been further increasing, and therefore, securing and training of human resources are becoming an urgent task. Nevertheless, we are very certain about future growth of this business.