1

FY 2017 First Quarter Financial Results

(from Apr. 2016 to Jun. 2016)

2

Highlights of Consolidated Results Summary of P/L

FY2016 FY20171Q (3M) 3Q (3M) Amount %

Net Sales 17,857 15,338 △ 2,518 △14.1%

Cost of Sales 13,435 11,784 △ 1,650 △12.3%

Gross Profit 4,421 3,553 △ 867 △19.6%

<Gross Profit ratio> 24.8% 23.2% (△1.6P)

2,323 2,287 △ 36 △1.6%

Operating Income 2,097 1,266 △ 831 △39.6%

<Operating Income ratio> 11.7% 8.3% (△3.4P)

Ordinary Income 2,347 1,378 △ 969 △41.3%

Income Before Income Taxes 2,347 1,377 △ 969 △41.3%

Net Income 1,536 988 △ 548 △35.7%

1USD＝ ¥121.32 ¥108.33 ¥-12.99 -10.7%

1EUR＝ ¥134.23 ¥122.33 ¥-11.90 -8.9%

Gross Profit:

Operating Income:

Ordinary Income:

Net Income:

Exchange Rate

(JPY mil.)

Selling, general & administrativeexpenses

Fluctuation

<Summary>

Net Sales:While net sales in Europe expanded, group net sales decreased by 14.1% (7.6%excluding foreign exchange factor) from 1Q of previous FY, due to decline in netsales in other areas and yen appreciation.

Gross profit decreased by 19.6% (11.9% excluding foreign exchange factor) andgross profit ratio fell by 1.6P from 1Q of the previous FY, due to decline in netsales and yen appreciation.

Operating income decreased by 39.6% (27.8% excluding foreign exchange factor)and operating income ratio fell by 3.4P from 1Q of the previous FY, due to theabove factors.

Ordinary income decreased by 41.3% from 1Q of the previous FY, due to declineof non-operating income caused by reduction in foreign exchange gain.

Net income decreased by 35.7% from 1Q of the previous FY, due to the abovefactors.

【REF】：

Amount %

Net Sales △ 25.2 △ 11.6 △ 13.6 △ 7.6%

Gross Profit △ 8.7 △ 3.4 △ 5.3 △ 11.9%

Operating

Income

△ 8.3 △ 2.5 △ 5.8 △ 27.8%

Change

from

previous

quarter

of which

foreign

exchange

factor

Change from previous

quarter excluding foreign

exchange factor

Currency exchange factor included in change

from previous quarter (100 million yen)

3

Quarterly Financial Performances

FY20171Q 2Q 3Q 4Q 1Q

17,857 19,611 19,393 18,668 15,338Gross Profit 4,421 4,572 4,767 4,225 3,553Operating Income 2,097 2,136 2,221 1,583 1,266Gross Profit ratio 24.8% 23.3% 24.6% 22.6% 23.2%Operating Income ratio 11.7% 10.9% 11.5% 8.5% 8.3%

Net Sales

FY2016

※ Decline in yen-equivalent net sales caused by yen appreciation: 1.16 billion yen (compared with 1Q of FY2016)

※

※

4

Sales (by Business/Customer/Geographic segment)

Sales by Business segment Sales by Geographic segment

Amount % Amount %Press Machines 14,892 83.4% 12,284 80.1% △ 2,608 △ 17.5% Japan 5,481 30.7% 4,410 28.8% △ 1,070 △ 19.5% Services 2,914 16.3% 3,021 19.7% 107 3.7% Asia 4,550 25.5% 3,263 21.3% △ 1,287 △ 28.3% Others 50 0.3% 32 0.2% △ 17 △ 34.9% Americas 5,108 28.6% 4,279 27.9% △ 828 △ 16.2% Total 17,857 100.0% 15,338 100.0% △ 2,518 △ 14.1% Europe 2,716 15.2% 3,385 22.1% 668 24.6%

　　Total 17,857 100.0% 15,338 100.0% △ 2,518 △ 14.1%

Sales (press machines) by Customer industry

Amount %Automotive 12,514 84.0% 9,569 77.9% △ 2,944 △ 23.5% Electric related 1,294 8.7% 858 7.0% △ 436 △ 33.7% Others 1,083 7.3% 1,856 15.1% 772 71.3% Total 14,892 100.0% 12,284 100.0% △ 2,608 △ 17.5%

(JPY mil.)

Fluctuation(JPY mil.)

FluctuationFY20161Q

FY20171Q

FY20161Q

FY20171Q

FY20161Q

FY20171Q

Fluctuation

(JPY mil.)

14,892 15,835 16,020 14,48712,284

2,9143,742 3,286

4,130

3,021

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Press Machines Services Others

12,514 13,039 13,09611,194

9,569

1,294 1,164 1,705

1,578

858

1,0831,633 1,218

1,716

1,856

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Automotive related Electric related Others

5,481 6,976 7,082 6,677 4,410

4,5504,577 4,215 3,754

3,263

5,108 4,420 3,922 4,6154,279

2,716 3,639 4,174 3,622

3,385

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Japan Asia Europe Americas

5

Sales / Operating Income (by Geographic segment)

Amount % Amount %

Net Sales △ 1,818 △ 17.2% Net Sales △ 1,734 △ 31.0%

Operating Income

948 9.0% 508 5.8% △ 439 △ 46.4% Operating Income

662 11.9% 265 6.9% △ 397 △ 59.9%

Amount % Amount %

Net Sales △ 1,103 △ 20.4% Net Sales 565 19.6%

Operating Income

445 8.2% 313 7.3% △ 131 △ 29.6% Operating Income

3 0.1% 63 1.8% 59 1556.3%

3,453 2,888 4,317 5,420

FluctuationFluctuation FY20171Q

(JPY mil.)FY2016

1QFY2017

1Q(JPY mil.)

FY20161Q

EuropeAmericas

10,584 8,765

AsiaJapan

(JPY mil.)FY2017

1QFY2016

1QFluctuation

(JPY mil.)FY2016

1QFY2017

1QFluctuation

5,587 3,853

10,58411,697 11,130

10,630

8,765

948

1,2681,484

1,267

508

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Net Sales Operating Income

5,587 5,6845,166

4,5523,853

662 651746

262 265

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Net Sales Operating Income

5,4204,523 4,095

4,9704,317

445

327204

351313

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Net Sales Operating Income

2,888

3,8504,286

3,8293,453

3

△ 194

△ 161△ 138

63

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

Net Sales Operating Income

6

Orders Intake & Backlog (by Business/Customer/Geographic segment)

Orders Intake by Business Segment Orders Intake by Customer Industry (Press Machines)

Orders Intake by Geographic Segment Orders Backlog by Geographic Segment

9,970

6,436

8,331

3,033

4,221

3,945

6,823

1,381

964

1,534

5,526

4,303

4,022

4,382

2,370

4,705

1,728

6,866

3,057

1,120

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

JPY mil. Japan Asia Americas Europe

21,273 20,73221,981

18,337 18,147

12,493 14,740 11,905

9,1157,386

12,301

12,18412,298

12,070

10,162

12,15710,246 12,923

12,354

10,089

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

JPY mil. Japan Asia Americas Europe

20,814

15,544

16,805

7,786

5,893

3,206

3,725

3,707

3,644

3,291

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

JPY mil. Press Machine Services Others

16,311

12,841

14,235

6,044

3,789

2,004

1,248

588

328

810

2,498

1,455

1,981

1,415

1,294

FY2016/31Q

2Q 3Q 4Q FY2017/31Q

JPY mil. Automotive related Electric related Others

24,148

24,148

58,225

20,814

19,289

19,289

57,903

15,544

20,600

59,109

20,600

16,805

11,437

7,786

11,437

51,878

9,246

5,893

9,246

45,786

※ Decline in yen-equivalent order backlog caused by yen appreciation: 2.82 billion yen (compared with 4Q of FY2016)

※

※

※

※

7

Major Changes on Balance Sheet

(JPY mil.) (JPY mil.)

VS end of Mar. 2015 VS end of Mar. 2015

Total assets △△△△ 6,041 Total current liabilities △△△△ 3,010

Current liabilities △△△△ 3,003Advances from customers oncontracts

△ 1,067

Income taxes payable △ 695Accrued bonuses for employees △ 525

Current assets △△△△ 4,745Cash & cash equivalents △ 2,745Notes and accounts receivable, trade andElectronically recorded monetary claims-operating

△ 1,730

Long-term liabilities △△△△ 7

Fixed assets △△△△ 1,295Property, plant and equipment △ 952 Net assets △△△△ 3,031

Retained earnings △ 963

Foreign currency translationadjustments

△ 2,037

Assets Liabilities and Net Assets

68,758 65,727

4,9114,903

26,940

23,937

FY2016/3 FY2017/3 1H

Current liabilitiesLong-term liabilitiesNet assets

100,609100,609100,609100,609

67,34267 ,34267 ,34267 ,342

71 ,30071 ,30071 ,30071 ,300百万円百万円百万円百万円

67,34267,34267,34267,342

31,705 30,410

68,90364,158

FY2016/3 FY2017/3 1H

Fixed assets Current assets

100,609100,609100,609100,609

94,56894,56894,56894,56894,56894,56894,56894,568

Capital Adequacy Ratio (CAR)

68.2％％％％ 69.3％％％％

8

Highlights: Forecasts of FY2017 Consolidated Results

FY2017/32H Forecast

(revised)Full-year forecast

【【【【A】】】】Amount % Initial Forecast【【【【B】】】】 Amount %

Net Sales 75,529 32,000 70,000 △ 5,529 △7.3% 80,000 △ 10,000 △12.5%

Cost of Sales 57,544 24,500 53,900 △ 3,644 △6.3% 61,500 △ 7,600 △12.4%

Gross Profit 17,985 7,500 16,100 △ 1,885 △10.5% 18,500 △ 2,400 △13.0%

<Gross Profit ratio> 23.8% 23.4% 23.0% (△0.8P) 23.1% (△0.1P)

9,947 4,600 9,600 △ 347 △3.5% 10,400 △ 800 △7.7%

Operating Income 8,037 2,900 6,500 △ 1,537 △19.1% 8,100 △ 1,600 △19.8%

10.6% 9.1% 9.3% (△1.3P) 10.1% (△0.8P)

Ordinary Income 8,364 3,000 6,600 △ 1,764 △21.1% 8,200 △ 1,600 △19.5%

Income Before Income Taxes 8,329 3,000 6,600 △ 1,729 △20.8% 8,100 △ 1,500 △18.5%

Net Income 5,782 2,100 4,600 △ 1,182 △20.5% 5,900 △ 1,300 －

¥30 － ¥40 ¥10 33.3% ¥40 － －

1USD＝ ¥120.11 ¥105.00 ¥105.00 ¥-15.11 -12.6% ¥108.00 ¥-3.00 -2.8%

1EUR＝ ¥132.66 ¥117.00 ¥117.00 ¥-15.66 -11.8% ¥124.00 ¥-7.00 -5.6%

Net Sales:

Gross Profit:

Operation Income:

Cash Dividend perShare:

【Summary】

Due to losing of expected large orders, postponing of delivery and decrease of yen-equivalent overseas salescaused by yen appreciation, forecast of net sales was revised downward. Net sales excluding foreignexchange factor is expected to exceed the previous FY, contributed by increase of order intakes from 2Q.

While gross profit decreased by 10.5% (4.4% excluding foreign exchange factor) from the previous FY dueto decline in net sales and yen appreciation, gross profit ratio is forecasted at the same level as originallyplanned by achieving cost reduction to cover cost increase caused by capital investment and human resourcedevelopment.

Ｃｈａｎｇｅ＝　【Ｃｈａｎｇｅ＝　【Ｃｈａｎｇｅ＝　【Ｃｈａｎｇｅ＝　【AAAA】】】】----【【【【 BBBB】】】】

Cash Dividends per Share

Exchange Rate

(JPY mil.) FY2016/3FluctuationFY2017/3

Operating income ratio is aimed at more than 9.3% by reducing other SG&A to cover cost increase causedby capital investment and human resource development. Decline in operating income is expected to be19.1% (12.0% excluding foreign exchange factor) compared to the previous FY.

Cash dividend per share is forecasted to be 40 yen as originally planned, regardless of decline in profit.

Selling, general and administrativeexpenses

<Operating Income ratio>

【REF】：

Amount %

Net Sales △ 55.3 △ 59.9 4.6 0.6%

Gross Profit △ 18.9 △ 10.9 △ 8.0 △ 4.4%

Operating

Income

△ 15.4 △ 5.7 △ 9.7 △ 12.0%

Currency exchange factor included in change

from previous quarter (100 million yen)

Change

from

previous

quarter

of which

foreign

exchange

factor

Change from previous quarter

excluding foreign exchange

factor

9

Forecasts of Orders Intake/Sales/Operating Income (by segment)

Amount % Amount %

Press Machine 60,949 56,800 △ 4,149 △ 6.8% 61,234 54,800 △ 6,434 △ 10.5%

Services 14,282 15,000 718 5.0% 14,072 15,000 928 6.6%

Others 242 200 △ 42 △ 17.4% 222 200 △ 22 △ 9.9%

Consolidated 75,474 72,000 △ 3,474 △ 4.6% 75,529 70,000 △ 5,529 △ 7.3%

Amount % Amount % Amount %

Japan 27,770 25,000 △ 2,770 △ 10.0% 44,041 41,000 △ 3,041 △ 6.9% 4,967 3,500 △ 1,467 △ 29.5%

Asia 13,113 14,000 887 6.8% 20,989 18,500 △ 2,489 △ 11.9% 2,321 1,500 △ 821 △ 35.4%

Americas 18,233 18,000 △ 233 △ 1.3% 19,008 18,500 △ 508 △ 2.7% 1,327 1,300 △ 27 △ 2.0%

Europe 16,356 15,000 △ 1,356 △ 8.3% 14,853 13,500 △ 1,353 △ 9.1% △ 490 100 590 -　

Reconciliation △ 23,363 △ 21,500 1,863 △ 8.0% △ 88 100 188 -　

Consolidated 75,474 72,000 △ 3,474 △ 4.6% 75,529 70,000 △ 5,529 △ 7.3% 8,037 6,500 △ 1,537 △ 19.1%

Operating incomeOrders

FY2017forecast

FY2017forecast

FY2017forecast

FY2016

Fluctuation: FY2017

vs FY2016FY2016

Fluctuation: FY2017

vs FY2016FY2017forecast

Orders

FY2016

Fluctuation: FY2017

vs FY2016

(JPY mil.)

(JPY mil.)

FY2016

Fluctuation: FY2017

vs FY2016

FY2016

Fluctuation: FY2017

vs FY2016

FY2017forecast

Net Sales

Net Sales

By Business

By Region

10

(for Reference) Statistics of Forming Machinery Industry

Monthly Average

JPY(billion)

Monthly Average

Press: Mechanical, Hydraulic, Forging & Automation

Place of origin: JFMA

11

Remarks

Cautions about forecast statements contained in this package

・・・・The information in this package contains future forecasts.

・・・・Future forecasts contained in this document are based on the judgment of company management based on currently available information. Although the future forecasts are based on or grounded in assumptions, future economic circumstances and actual business results may differ from these assumptions.

・・・・Although the Company or its management is stating its expectations and/or convictions regarding future results, this does not guarantee that these expectations or convictions will be realized, nor does it guarantee that the actual results will be close to the forecasts. Moreover, the Company does not assume any obligation to update or revise any forecasts unless otherwise stipulated by law.

August 2016

AIDA ENGINEERING, LTD.