[PPT] - Tsubakimoto Chain Co. FYE 2012 Settlement of Accounts Presentation PowerPoint Presentation

SLIDE 1

Tsubakimoto Chain Co. FYE 2012 Settlement of Accounts Presentation Meeting

May 21, 2012

SLIDE 2

1 FYE 2012 Full Year Settlement of Accounts Business Report

Note: ‘Full year,’ as referred to in this report, indicates the period from April 1 through March 31 of the next year of the applicable consolidated accounting year.

(For some overseas subsidiaries, the ‘full year’ indicates the period from January 1 through December 31 of the applicable year.)

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 3

FYE 2011 FYE 2012

Comparison with previous term

Full year figure (actual) Full year figure (actual)

Increase/decrease

Forecast (Aug. 5, 2011)

Increase/decrease

Net sales 138,243

144,896

4.8% 140,000 3.5% Operating income 11,022

12,081

9.6% 11,200 7.9%

Operating income margin

8.0%

8.3%

8.0% Ordinary income 11,111

12,140

9.3% 11,100 9.4% Net income 6,093

6,814

11.8% 6,200 9.9% Net income per share 32.76

36.60 －

33.33

－

(Exchange rates 1US$)

85.74

79.07 －

82.00

('11/11/11) Changed to ¥80

(Exchange rates 1EURO)

113.14

109.02 －

110.00

－

Shareholders' equity ratio

45.3%

46.9% Equity capital/total assets

Return on equity (ROE)

7.4%

7.9%

Net D/E ratio 0.37

0.30

(Yen, millions) Interest-bearing liabilities/equity capital Comparison with forecast

Net income/Average return on equity during term

2 ■ We achieved increases both in sales and profit despite challenges such as the

appreciation of the yen and the impact of the earthquake. Operating income was 7.9% higher than expectations (as published Aug. 5, 2011).

■ D/E ratio improved to 0.30. Our financial position was further strengthened.

1. FYE 2012 Review

Highlights of Consolidated Settlement of Accounts

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 4

3 2 9 3 2 9 3 5 3 3 5 3 3 4 0 3 4 0 3 5 8 3 5 8 3 3 0 3 3 0 3 6 8 3 6 8 3 5 5 3 5 5 3 9 4 3 9 4 7 . 7 .7 % 7 % 7 . 7 .9 % 9 % 9 . 9 .4 % 4 % 6 . 6 .9 % 9 % 7 . 7 .1 % 1 % 8 . 8 .8 % 8 % 9 . 9 .0 % 0 % 8 . 8 .4 % 4 % 1 0 0 1 0 0 2 0 0 2 0 0 3 0 0 3 0 0 4 0 0 4 0 0 5 0 0 5 0 0 1 Q 1 Q 2 Q 2 Q 3 Q 3 Q 4 Q 4 Q 1 Q 1 Q 2 Q 2 Q 3 Q 3 Q 4 Q 4 Q 0 % 0 % 5 % 5 % 1 0 % 1 0 % 1 5 % 1 5 % 2 0 % 2 0 % 2 5 % 2 5 % 億円

3 ■ Trend in sales and operating income margin (consolidated)

FYE 2011 FYE 2012

Major exchange rates

FYE 2011 FYE 2012 US$ ¥85.74 ¥79.07 Euro ¥113.14 ¥109.02

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

2. FYE 2012 Review

Trend in Quarterly Consolidated Settlement of Accounts

(Yen, 100 millions) : Net sales : Operating income margin

(Yen, 100 millions)

SLIDE 5

4

< Factors decreasing operating income>

1. Total labor cost increase: 1.9 billion yen

Staff cost increase from rise in

production

Salary and bonus increases from

earnings recovery 2. Total increase in other fixed costs: 2.0 billion yen

Increase in cost from rise in production
Increase in fee payments, etc.

3. Total effect of foreign exchange (Yen favored): 0.2 billion yen * Impact of material costs:

Approx. 0.1 billion yen

¥5.3 billion ¥12.0 billion

I ncreasing factors Decreasing factors

I ncrease in

perating income:

¥1.0 billion

Other fixed cost increase Sales increase

¥2.0 billion ¥1.9 billion

Labor cost increase

¥0.2 billion

FYE 2012 Operating income

¥11.0 billion Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

3. FYE 2012 Review

Analysis of Factors Consolidated I ncreasing/ Decreasing Operating I ncome

■ FYE 2011 vs. FYE 2012

Effect of foreign exchange

FYE 2011

Operating income

< Factors increasing operating income>

1. Total sales increase: 5.3 billion yen

Increase in gross margin from

increase in sales

SLIDE 6

(Yen, millions)

FYE 2011 FYE 2012

Comparison w ith prev ious term

Full year figure (actual) Full year figure (actual) Increase/decrease

Forecast ( Aug. 5, 2011) I ncrease/decrease

Net sales*1

48,262

51,692

7.1% 50,300 2.8%

Operat ing income

2,780

3,462

24.6% 3,050 13.5%

Operating income margin

5.8%

6.7%

6.1%

Net sales*1

20,061

21,364

6.5% 20,900 2.2%

Operat ing income

2,065

2,512

21.6% 2,130 17.9%

Operating income margin

10.3%

11.8%

10.2%

Net sales*1

43,303

43,509

0.5% 43,000 1.2%

Operat ing income

5,382

4,846

10.0%

4,530 7.0%

Operating income margin

12.4%

11.1%

10.5%

Net sales*1

26,340

27,977

6.2% 25,900 8.0%

Operat ing income

215

878

307.1% 820 7.1%

Operating income margin

0.8%

3.1%

3.2%

Net sales*1

2,689

2,911

8.3% 2,650 9.8%

Operat ing income

173

170

1.8%

150 13.3%

Operating income margin

6.5%

5.9%

5.7%

Materials Handling Systems Operations Other* 2

*1: Sales figures include internal sales and transfers between segments. *2: "Other" is not a reportable segment.

Comparison with forecast Automotive Parts Operations Chain Operations

Power Transmission Units and Components Operations

5 ■ Significant profits achieved in Chain Operations; Power Transmission Units and Components

Operations; and Materials Handling Systems Operations. Automotive Parts Operations achieved rapid recovery in the second half. (Operating income increased 32.1% year-on-year.)

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

4. FYE 2012 Review

Breakdown by Segment and Operations

SLIDE 7

50 100 150

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

0% 5% 10% 15% 50 100 150

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

0% 5% 10% 15%

6

< Sales by industry> ・ Sales were brisk to the machine tool, steel and food industries. < Sales by region> ・ Sales were good in Japan, North America, Europe and all other

regions.

・ KabelSchlepp (Germany) Co., Ltd., became a consolidated

subsidiary last year and achieved a turnaround, contributing to improved profitability.

< Sales by industry> ・Sales to the machine tool and shipbuilding industries have been

good.

・ Sales to the automotive and steel industries slowed in the second

half.

・ Sales to the LC/semiconductor industries have been stalled since

Q2.

< Sales by region> ・ Sales in Japan, China, and other regions have been good.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

5. FYE 2012 Review

Breakdown by Segment and Operations

■ Trends in sales and operating income margin

Chain Operations
Power Transmission Units and Components

Operations

(Yen, 100 millions) (Yen, 100 millions)

FYE 2011 FYE 2012 FYE 2011 FYE 2012

(Yen, 100 millions) : Net sales : Operating income margin

SLIDE 8

50 100 150

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

0% 5% 10% 15% 20%

100
50

50 100 150

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

10%
5%

0% 5% 10% 15%

< Sales by industry>

Sales of conveyors to the machine tool industry increased 26%

year-on-year.

Powder transport facilities maintained strong sales.
The distribution industry posted a strong showing.
Sales were sluggish to the automotive and steel industries.

7

< Sales by region>

Sales in the first half declined year-on-year due to the impact of

the earthquake but rebounded in the second half.

The impact of flooding in Thailand was limited.
Sales increased slightly year-on-year in Japan, North America,

Europe, Thailand, and China. (Companies outside Japan are calculated on a local currency basis.)

The South Korean subsidiary is newly consolidated as of Q1 of

this fiscal year. * Profit margin for Q1 of FYE 2011: -8.6%

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting (Yen, 100 millions) : Net sales : Operating income margin

5. FYE 2012 Review

Breakdown by Segment and Operations

■ Trends in sales and operating income margin

Automotive Parts Operations
Materials Handling Systems Operations

(Yen, 100 millions) (Yen, 100 millions)

FYE 2011 FYE 2012 FYE 2011 FYE 2012

SLIDE 9

< Sales share of each region>

■ Sales increased significantly in North America. Europe was profitable.

Asia and Oceania declined due to the impact of the earthquake and flooding in Thailand. 8

FYE 2012 Japan 65.5% North America 17.1% Europe 8.3% Asia/ Oceania 9.0% FYE 2011 FYE 2012

Comparison with previous term

Full year figure(actual) Full year figure(actual)

Percentage increase/decrease

Japan

Net sales*

108,607

112,940

4.0%

Operating income

8,650

9,165

6.0%

Operating income margin

8.0%

8.1%

North America

Net sales*

24,918

25,444

2.1%

Operating income

1,077

1,338

24.3%

Operating income margin

4.3%

5.3%

Europe

Net sales*

10,966

12,335

12.5%

Operating income

323

242 －

Operating income margin

－ 2.0%

Asia / Oceania

Net sales*

12,972

13,910

7.2%

Operating income

1,685

1,419

15.8%

Operating income margin

13.0%

10.2%

Other areas

Net sales*

72

89

24.0%

Operating income

48
53

－

Operating income margin

－－

Consolidated

Net sales

138,243

144,896

4.8%

Operating income

11,022

12,081

9.6%

Operating income margin

8.0%

8.3%

* Sales figures include internal sales and transfers between segments.

< Actual exchange rate> FYE 2011: US$= ¥87.54, EURO= ¥113.14, Can$= ¥84.29, A$= ¥80.73, THB= ¥2.77, NT$= ¥2.77, RMB= ¥12.96 FYE 2012: US$= ¥79.07, EURO= ¥109.02, Can$= ¥79.72, A$= ¥82.72, THB= ¥2.62, NT$= ¥2.68, RMB= ¥12.34, WON= ¥0.07

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

6. FYE 2012 Review

Segment by Region

Sales share figures are calculated

from sales to outside clients.

SLIDE 10

20
20
15
15
10
10
5
5

5 10 10 15 15 20 20 25 25 30 30 35 35 40 40 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q

8%
8%
6%
6%
4%
4%
2%
2%

0% 0% 2% 2% 4% 4% 6% 6% 8% 8% 10% 10% 12% 12% 14% 14% 16% 16% 5 10 10 15 15 20 20 25 25 30 30 35 35 40 40 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 0% 0% 2% 2% 4% 4% 6% 6% 8% 8% 10% 10% 12% 12% 14% 14% 16% 16% 20 20 40 40 60 60 80 80 100 100 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 0% 0% 2% 2% 4% 4% 6% 6% 8% 8% 10% 10% 12% 12% 14% 14% 16% 16% 50 50 100 100 150 150 200 200 250 250 300 300 350 350 400 400 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 0% 0% 2% 2% 4% 4% 6% 6% 8% 8% 10% 10% 12% 12% 14% 14% 16% 16%

9

FYE 2011 FYE 2012 FYE 2011 FYE 2012 FYE 2011 FYE 2012 FYE 2011 FYE 2012

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

7. FYE 2012 Review

Quarterly Trends by Region

North America
Japan
Asia / Oceania
Europe

(Yen, 100 millions) : Net sales : Operating income margin

SLIDE 11

10 ■ Capital investments were focused on Automotive Parts Operations, including

production facilities outside Japan and construction of the Saitama Plant.

29.4 35.1 37.0 74.9 102.3 100.4 39.9 58.1 95.2 108.9 67.4 60.8 55.0 55.1 59.5 73.0 73.4 73.9 75.4 74.0 20 40 60 80 100 120 140 160 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 10 20 30 40 50 60 70 80 設備投資（連結）減価償却費（連結）

億円億円

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

8. FYE 2012 Review

Capital I nvestment and Depreciation

Capital Investment (consolidated) Depreciation (consolidated)

(Yen, 100 millions) (Yen, 100 millions)

SLIDE 12

11

Mid-Term Management Plan 2012 Progress Achieved with Problem Areas

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 13

1,270 1,500 1,382 1,448 5.0% 9.0% 8.3% 8.0%

5 0 0 1 ,0 0 0 1 ,5 0 0 2 ,0 0 0

2011年3月期 2012年3月期 2013年3月期

0 % 5 % 1 0 % 1 5 %

売上高( 目標) 売上高( 実績) 営業利益率( 目標) 営業利益率( 実績)

億円

12

* The target value for year 2 (FYE 2012) of the Mid-term Management Plan is undisclosed.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

1. Outline of Mid-Term Management Plan 2012

A 3-year plan for strengthening

ur management foundation in response to the sudden

upheaval in the economic environment. We are changing the composition of our earnings by reviewing our product strategy and regional strategy from a medium-to-long-term perspective.

Mid-Term Management Plan 2012 Projected Consolidated Financial Performance

(Yen, 100 millions)

FYE 2011 FYE 2012 FYE 2013

Sales (Target) Sales (Result) Operating Income Margin (Target) Operating Income Margin (Result)

SLIDE 14

13

2. Basic Policies for “Mid-Term Management Plan 2012”
3. Always put the customer first
2. Become a solutions provider
1. Strengthen foundation as a manufacturer
4. Hone the ‘Global-Best’ strategy
5. Work on manpower development

■ Working to achieve important objectives according to our five basic policies.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 15

14

3. Strengthen foundation as a manufacturer

Results and Progress as of FYE 2012

1. Rolled out best practices in all manufacturing companies

Case outcome: In-process defect rate at Automotive Parts Division of Saitama Factory 2009/2H: 0.14% → 2011/2H: 0.07% (relative to sales)

2. Strengthened development of certified skilled worker

Case outcome: Approximately two-fold increase in five years in the number of workers obtaining skilled worker certifications (total number

f workers)

Problem Areas for FYE 2013

1. Results subsequent to the adoption of the dantotsu process

< Chain> Creation of reform line at Kyotanabe Plant

< Automotive Parts> Manufacturing reform initiatives → Construction of new

Saitama Plant

2. Passing on technical skills and improving motivation at the

worksite

・Provide workplace environment for spearheading the passing on of technical

skills

・Tsubaki Technical Skills Olympics

■ Extending dantotsu improvement activities and strengthening technical skills

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 16

15

4. Become a solutions provider

Results and Progress as of FYE 2012

Aim: Differentiate from other companies in terms of environmental friendliness ・FYE 2012 performance: 17 sales

Problem Areas for FYE 2013

Improve customer acceptance of environmentally friendly aspects of eco-products

・PR and raising awareness through Tsubaki Eco Link and

ther means

・Create benefits for customer ・Eco-products for FYE 2013 (Projected): 20 products

Zip chain actuators Zerotech series timing chain

■ Development of Eco & Eco (Economy & Ecology)

Delivery of 10 models to three

companies has begun.

Pre-orders have been received

for six additional models.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

SLIDE 17

16

5. Hone the ‘Global-Best’ strategy

< Restructuring>

・Spin-off of U.S. subsidiary → CBO system strengthened (Scope of responsibilities clarified)

・Integration of KabelSchlepp subsidiaries as our subsidiaries (in the U.S.A., China, and

elsewhere) → Management integration < Expansion>

South Korea - Representative office

pened

Vietnam - Representative office opened Indonesia - Representative office opened Germany - Subsidiary established Germany - KabelSchlepp becomes subsidiary Korea - Subsidiary plant is in operation

: Manufacturing company, etc. : Engineering company : Sales company : Representative office

■ Strengthen Overseas Production Centers

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

India - Sales company established China (Tianjin) - Subsidiary established China (Shanghai) - Subsidiary established

SLIDE 18

17

Strengthen competitiveness (Chain)

Results and Progress as of FYE 2012

・Established manufacturing center, Tsubakimoto Chain (Tianjin) Co., Ltd. (TCT) and started construction of

plant

Problem Areas for FYE 2013

・Started local production of conveyor chain (October)

→Targeting 20% of the Chinese conveyor chain market (2016)

■ Capturing the Chinese Market’s Volume Zone

Entry into Chinese sorting systems market (Materials Handling Division)

Results and Progress as of FYE 2012

・Established engineering company - Tsubakimoto Materials Handling

Systems (Shanghai) Co., Ltd. (TMS) One order already received.

Problem Areas for FYE 2013

・Expand sales of sorting systems

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

5. Hone the ‘Global-Best’ strategy

SLIDE 19

18

Results and Progress as of FYE 2012

1. Established a sales subsidiary in Germany

→ Received first order from Volkswagen

2. Developed a low-cost timing chain drive system

Received orders from two companies for this low-cost design (1.1 million units/year)

3. Established a global production system covering six regions

(Launched South Korean subsidiary in October 2011)

Problem Areas for FYE 2013

1. Increase our market share among the global top five automobile

manufacturers

2. Increase our market share in China
3. Improve productivity through “manufacturing reform initiatives,”

accommodating production increases by strengthening the global production system and reducing risk

Saitama Plant (mother plant)

■ Increase in global market share of Automotive Parts Operations

USTA TUKL TAT TAS TAK

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

5. Hone the ‘Global-Best’ strategy

SLIDE 20

19

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

Settlement of Accounts Forecasts for FYE 2013

SLIDE 21

(Yen, millions)

FYE 2012 FYE 2013

Year-on-year comparison

Mid-Term Management Plan

Full year figure (actual)

First half figure

Second half forecast

Full year forecast

I ncrease/ decrease

Target value

Net sales

144,896 73,000 77,000

150,000

3.5% 150,000

Operating income

12,081 5,800 7,700

13,500

11.7% 13,500

Operating income margin

8.3% 7.9% 10.0%

9.0%

Ordinary income

12,140 5,900 7,100

13,000

7.1%

Net income

6,814 3,300 4,400

7,700

13.0%

Net income per share

¥36.60

¥41.14
(Exchange rates 1US$)

¥78.98

¥77.00

¥85.00

(Exchange rates 1EURO）

¥110.62

¥103.00

¥115.00

Dividend per share (yen)

7.00 3.00 4.00

7.00

20

■ Expected to achieve numerical targets of the Mid-Term Management Plan

despite the appreciation of the yen and significant difference in currency exchange assumptions.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

1. FYE 2013

Consolidated Settlement of Accounts Forecast

SLIDE 22

FYE 2012

Year-on-year comparison

Mid-Term Management Plan

Full year figure(actual) First half figure

Second half forecast Full year forecast

Increase/decrease

Target value

Net sales* 1

51,692 25,900 26,700

52,600

1.8% 52,400

Operat ing income

3,462 1,700 2,060

3,760

8.6% 4,260

O perating income margin

6.7% 6.6% 7.7%

7.1%

8.1%

Net sales* 1

21,364 10,500 10,800

21,300

0.3%

20,700

Operat ing income

2,512 1,140 1,250

2,390

4.9%

1,890

O perating income margin

11.8% 10.9% 11.6%

11.2%

9.1%

Net sales* 1

43,509 23,500 25,700

49,200

13.1% 47,200

Operat ing income

4,846 2,500 3,500

6,000

23.8% 5,160

O perating income margin

11.1% 10.6% 13.6%

12.2%

10.9%

Net sales* 1

27,977 13,100 14,100

27,200

2.8%

29,400

Operat ing income

878 360 630

990

12.8% 1,900

O perating income margin

3.1% 2.7% 4.5%

3.6%

6.5%

Net sales* 1

2,911 1,430 1,410

2,840

2.4%

3,300

Operat ing income

170 80 110

190

11.8% 200

O perating income margin

5.8% 5.6% 7.8%

6.7%

6.1%

Automotive Parts Operations Materials Handling Systems Operations Other* 2

*1: Sales figures include internal sales and transfers between segments.

Chain Operations

Power Transmission Units and Components Operations

*2: "Other" is not a reportable segment.

(Yen, millions)

FYE2013

21 ■ Profits from Automotive Parts increased significantly. Sales of Chain Operations;

Power Transmission Units and Components Operations; and Material Handling Systems Operations are expected to remain flat.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

2. FYE 2013

Settlement of Accounts Forecasts by Business Segment

SLIDE 23

22

< Factors increasing operating income> 1. Total sales increase: 4.0 billion yen

Increase in gross margin from

increase in sales * Impact of material costs: 0.1 billion yen

(Decline in steel prices but rise in price

f plastic products)

< Factors decreasing operating income> 1. Total labor cost increase: 1.0 billion yen 2. Total increase in other fixed costs: 1.3 billion yen 3. Total effect of foreign exchange (Yen favored): 0.2 billion yen

¥4.0 billion ¥13.5 billion

FYE 2012 Operating income

I ncreasing factors Decreasing factors

Other fixed cost increase Effect of foreign exchange Sales increase

¥1.3 billion ¥1.0 billion

Labor cost increase

¥0.2 billion

FYE 2013 Operating income

¥12.0 billion Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

3. FYE 2013

Analysis of Factors Consolidated I ncreasing/ Decreasing Operating I ncome

■ FYE 2012 (actual figures) vs. FYE 2013 (forecasts)

I ncrease in

perating income:

¥1.5 billion

SLIDE 24

20 40 60 80 100 120 140 160 ’ 10／3 ’ 11／3 ’ 12/3 ’ 13/3計画

チェーン事業精機事業自動車部品事業マテハン事業本社他減価償却費億円

23 ■ Major capital investments

1. Investments related to construction of subsidiary’s manufacturing plant in Tianjin China (Chain Operations) 2. Investments related to strengthening the global production system for Auto Parts Operations

¥5.8 billion ¥3.9 billion ¥7.3 billion ¥7.5 billion ¥7.2 billion ¥7.4 billion ¥14 billion ¥9.5 billion

Capital investment Depreciation

■ Capital investment and depreciation transitions

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting

4. FYE 2013

Capital I nvestment

(Yen, 100 millions)

Headquarters and

thers

Depreciation Materials Handling Systems Operations Automotive Parts Operations Power Transmission Units and Components Operations Chain Operations

Plan

SLIDE 25

1 , 1 ,1 9 1 1 9 1 1 , 1 ,2 9 5 2 9 5 1 , 1 ,4 7 7 4 7 7 1 , 1 ,5 5 7 5 5 7 1 , 1 ,6 7 2 6 7 2 1 , 1 ,4 1 5 4 1 5 1 , 1 ,1 2 7 1 2 7 1 , 1 ,3 8 2 3 8 2 1 , 1 ,4 4 8 4 4 8 1 , 1 ,5 0 0 5 0 0 6 . 6 .7 % 7 % 8 . 8 .1 % 1 % 9 . 9 .4 % 4 % 1 0 . 1 0 .3 % 3 % 1 1 . 1 1 .8 % 8 % 6 . 6 .4 % 4 % 4 . 4 .2 % 2 % 8 . 8 .0 % 0 % 8 . 8 .3 % 3 % 9 . 9 .0 % 0 % 500 1,000 1,500 2,000

04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3予想

0% 5% 10% 15% 20%

億円

24

5. Reference Data

■ Trends in sales and operating income margin (consolidated) ■ Trend in dividend per share

6 . 6 .0 0 0 0 7 . 7 .0 0 0 0 9 . 9 .0 0 0 0 7 . 7 .0 0 0 0 8 . 8 .0 0 0 0 8 . 8 .0 0 0 0 6 . 6 .0 0 0 0 7 . 7 .0 0 0 0 7 . 7 .0 0 0 0 7 . 7 .0 0 0 0 1 7 . 1 7 .0 % 0 % 1 9 . 1 9 .1 % 1 % 2 1 . 2 1 .4 % 4 % 3 5 . 3 5 .1 % 1 % 2 4 . 2 4 .8 % 8 % 1 4 . 1 4 .4 % 4 % 1 5 . 1 5 .4 % 4 % 2 5 . 2 5 .9 % 9 % 3 0 . 3 0 .7 % 7 % 3 4 . 3 4 .5 % 5 % 5 10 15

04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3予想

0% 25% 50% 75% 100%

円/株/年 Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting (Yen, 100 millions) (Yen, 100 millions) : Net sales : Operating income margin : Dividend per share (yen/year)

: Dividend payout ratio (consolidated)

Yen/Share/Year

Forecast Forecast

SLIDE 26

This reference document describes our business plans and our earnings

utlook. The content of this document is based on current information

available to our company and on certain assumptions determined as

reasonable. I t is not intended to represent a performance commitment.

Note that actual results may differ from the earnings outlook described herein, as the results are dependent upon a variety of variables.

Tsubakimoto Chain Co.

FYE 2012 Settlement of Accounts Presentation Meeting