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In August 2020, Nachi-Fujikoshi released the newly developed Hi NVD-10, the latest in its Clean Master series of vacuum degreasing machines. The Hi NVD-10 uses hydrocarbon-based solvent to achieve both high quality cleaning and lower environmental impact. 1. Market Trends Processes designed to degrease industrial products entail numerous issues, including the difficulty of thorough cleaning due to the increasing precision of the parts to be washed and the environmental impact of cleaning fluids. The aqueous/semi-aqueous cleaning agents (alkaline cleaners) widely used today are low cost and relatively safe, but tend to offer only weak degreasing capabilities. They also generate waste fluid that must be treated before disposal. On the other hand, solvent-based cleaning agents (chlorinebased solvents, fluorine-based solvents, bromine-based solvents) offer high degreasing power and dry rapidly but create significant environmental burdens. Degreasing systems using hydrocarbonbased solvents offer both high quality degreasing and low environmental impact; for this reason, demand for such systems is expected to grow. In response to this demand, Nachi-Fujikoshi recently launched its newly developed Clean Master series Hi NVD-10 hybrid vacuum degreasing machine, which uses a hydrocarbon-based solvent. 2. Features of the Hi NVD-10 (1) Hybrid system offering high degreasing power The Hi NVD-10 in its standard configuration offers two washing systems, immersion washing and steam washing, to achieve high quality degreasing. ① Immersion washing (triple washing) High washing performance is achieved by a three-stage washing process consisting of a primary wash, immersion, and a secondary wash. A dedicated circulating pump allows heated washing for greater cleaning power. ② Steam washing Steam washing is a powerful method for cleaning workpieces featuring small holes and complex shapes. Coupled with shower washing, it effectively cleans deep holes in workpieces and other areas into which the cleaning agent may not otherwise effectively reach. (2) Reduced environmental impact In addition to using a hydrocarbon-based solvent with low environmental impact, the Hi NVD-10 reduces the volume of solvent retained by about 20% compared to the NVD-10E, the preceding model, thereby achieving both high washing performance and low environmental impact. (3) Compact design The new product requires an installation area of approximately 14m2, about 8% less than the previous model. 3. Target Markets Heat treatment field : Pre-washing electric/electronic parts, dies, etc. before vacuum heat treatment Automotive field : Pre- and post-washing pressed or deep-drawn parts before and after heat treatment Industrial machinery field : Degreasing large and heavy parts such as heavy electric machine parts and ship parts 4. Specifications Effective dimensions : 760(width) × 1,220(depth) × 760(height) mm Processing capacity : Max.1,000kg/gross charge (steam washing:400kg) Washing time : Approx.25 minutes (standard setting:triple washing) Solvent capacity : 1,500L, hydrocarbon-based solvent 5. Release Schedule (1)Release date : August 2020 (2)Price : 50 million yen (price for standard main unit/excluding tax) (3)Target sales : 10 units/year 6. Contact for Inquiries Regarding the New Product Planning Department, Thermotech Division, Nachi-Fujikoshi Corp., Tel: +81-(0)76-471-2981 END

1. Our initiatives In November 2018, Nachi-Fujikoshi launched its AquaREVO Drills worldwide. This carbide drill series differs dramatically from conventional drills in material, shape, and coating to yield long tool life, high efficiency, and exceptional versatility. In August 2019, the AquaREVO Drills Oil-Hole, with its innovative oil-hole geometry, was added to the product series to increase market share. The launch of the long-awaited AquaREVO blue carbide end mills, the third series of products in the AquaREVO line, will help boost customer productivity and cut customer costs while further expanding our market share. 2. Overview of the AquaREVO Mills (1) Target market and needs Increasing machining efficiency and tool life has become increasingly important for boosting productivity when machining automotive and machinery parts. As more and more difficult-to-machine materials (including stainless steel, which is prone to cause chatter vibration) require machining, demand is growing for long tool life and high efficiency carbide end mills. (2) Features ① Long tool life We’ve developed a carbide material suitable for end mills with excellent hardness and toughness by optimizing the design and particle size, utilizing Nachi-Fujikoshi’s proprietary technologies and expertise and the company’s materials development divisions. Combined with the REVO-M coat, the new material minimizes corner abrasion and results in 1.5 times the tool life(50% increase) compared to competing products when used to machine high carbon steel. ② High efficiency Irregular cutting edge spacing and unequal leads with different helix angles reduce cutting resistance and suppress chatter vibration against the workpiece surface, ensuring stable, highly efficient machining. ③ Versatility In addition to high abrasion and heat resistance, the REVO-M coat provides excellent thermal shock resistance, even for wet machining. The super smoothing treatment of film surfaces enhances adhesion resistance and protects against damage from adhering workpiece chips. Its tool life is more than double that of competing products when machining high hardness steel or stainless steel. These end mills are ideal for applications involving a wide range of materials, from ordinary steel to stainless steel and high hardness steel. (3) Series size range and prices AquaREVO Mills Two-flute 2.5D G type (gash land) Size range: Ø1.0 to 20.0mm: 20 sizes in all Reference size / typical size: Ø6.0 mm and 50.0 mm in overall length 3,350 yen/pc (tax excluded) Four-flute 2.5D G type (gash land) Size range: Ø1.0 to 20.0mm: 20 sizes in all Reference size / typical size: Ø6.0 mm and 50.0 mm in overall length 4,220 yen/pc (tax excluded) Two-flute 2.5D S type (sharp corner) Size range: Ø1.0 to 20.0mm: 20 sizes in all Reference size / typical size: Ø6.0 mm and 50.0 mm in overall length 3,350 yen/pc (tax excluded) Four-flute 2.5D S type (sharp corner) Size range: Ø1.0 to 20.0mm: 20 sizes in all Reference size / typical size: Ø6.0 mm and 50.0 mm in overall length 4,220 yen/pc (tax excluded) (4) Release date and sales target Release date : December 20, 2019, global release (The S type will be launched on June 1, 2020.) Target sales : 200 million yen annually in fiscal 2020 and 600 million yen annually three years later END

1. Expanding the robot market To address soaring labor costs and labor shortages and to enhance productivity in response to aging populations and shrinking workforces, manufacturers are increasingly turning to robots to automate production—not just in the automotive industry, but in other fields. 2. Our initiatives In 2013, Nachi-Fujikoshi launched the lightweight MZ07 (7 kg payload), the world’s fastest compact robot. Since then, we’ve expanded the MZ Series, which features high speed and high accuracy across the product lineup. This series has developed a strong reputation and expanded our global market share. Targeting the fields of automotive parts and general industrial machinery, where demand for automation is growing, we’ve added the MZ25 medium-sized robot (25 kg payload) to the MZ Series. With this new robot, which retains the speed, accuracy, and versatility of our MZ Series compact robots, we are aiming to expand our share of the medium-sized robot market. To meet the specific factory automation needs of our customers, we plan to broaden our lineup of compact to medium-sized robots and collaborative robots, including SCARA robots, and to propose new systems and applications incorporating robots. 3. Features of the MZ25 (1) High versatility  Thanks to powerful wrist torque and a larger work envelope compared to robots of similar payload capacity, the MZ25 is capable of handling large workpieces and compatible with large robotic grippers. It’s suitable for wide range of tasks and applications, such as loading, deburring, parts assembly, and transportation. The MZ25 features water and dust protection(IP67) and rust prevention in its standard configuration and can withstand environments subject to dust and splashing water. (2) Precise, high-speed movements  Featuring both light weight and toughness, these robots feature movements with class-leading precision and speed (position repeatability: ±0.05 mm), thereby increasing productivity. (3) Various applications  The MZ25 features our proprietary hollow-wrist design. To minimize interference problems associated with wiring to peripherals and to enhance reliability, all wiring and piping needed for various applications are provided as standard equipment. The standard equipment also includes a large-diameter air hose that enables large airflow and multiple connection ports for different applications, dramatically increasing convenience. 4. Release date and sales target (1) Release date: December 2019 (2) Price: Open pricing (3) Target sales: 1,000 units/year (fiscal 2020) 5. Inquiries about the new products Robot Sales Strategy & Promotion Dept., Robot Division, Nachi-Fujikoshi Corp., Tel: +81-(0)76-423-5135 END

1. Our efforts NACHI-Fujikoshi launched the AquaREVO Drills, a carbide drill with a completely renewed material, shape, and coating, in 2018. It features a long tool life, high efficiency, and multipurpose that have been recognized by a wide range of users, indicated by it is expanded market share. Now, we are introducing the AquaREVO Drills Oil-Hole, which adopts a new concept oil-hole shaped, to our lineup. On sites that require high-efficiency machining, this product will improve users' productivity and cost reduction. 2. Overview of the AquaREVO Drills Oil-Hole (1) Targeted markets and needs On sites machining car parts, mechanical parts, etc., there is an increasing demand for improved machining efficiency and longer tool life. In addition, amid rising demand for the machining of difficult to cut materials such as stainless steel that easily become work-hardened, the need for internally feeding oil-hole drills is increasing. (2) Features By orchestrating proprietary NACHI-Fujikoshi technologies and the expertise of our Materials Department, we have adopted a novel oil hole, the REVO Power Cooler, for new carbide materials that provide superior rigidity, toughness, and wear resistance. Through fluid and stiffness analysis, we have developed an optimal oil hole shape, which drastically improves cooling, lubricating, and chip evacuation performance. ① Overwhelmingly long tool life The REVO Power Cooler enables the doubling of the internal oil feed discharge rate, compared to our conventional product. This increase of the flowrate and flow velocity of cutting oil realizes a high cooling performance at the machining point, and improving lubricating and chip evacuation performance, allowing this product to attain approximately twice the tool life of general-purpose oil-hole drills. ② High-efficiency machining The REVO Power Cooler, featuring high cooling, lubricating, and chip evacuation performance, together with the REVO-D coating, which has superior wear and oxidation resistance, enable improved machining performance during high-feed cutting and high feed processing. ③ Support for a wide range of work materials Despite being a general-purpose oil-hole drill, when drilling stainless steel, the product has more than double the tool life of competitor’s oil hole drills dedicated stainless steel. The AquaREVO Drills Oil-Hole can be used for all work materials, from general steel to high hardness steel, stainless steel, titanium alloys, and heat-resistant alloys. (3) Series, dimension ranges, and prices AquaREVO Drills Oil-Hole 3D Size range : Ø3.0 to Ø16.0 Total : 131 sizes Reference size : Typical dimension : Ø6.0  Entire length : 82mm 14,200 yen/piece (tax excluded) 5D Size range : Ø3.0 to Ø16.0 Total : 131 sizes Reference size : Typical dimension : Ø6.0  Entire length : 100 mm 16,400 yen/piece (tax excluded) 8D Size range : Ø3.0 to Ø16.0 Total : 131 sizes Reference size : Typical dimension : Ø6.0  Entire length : 118 mm 18,400 yen/piece (tax excluded) (4) Release date and target sales Release date : Synchronized worldwide launch on August 21, 2019 (8D: To be released on February 21, 2020) Target sales : Annual sales of 0.5 billion yen in the first year, with the goal of annual sales of 1.5 billion yen in three years END

1. Our initiatives Nachi-Fujikoshi launched the Hyper Z Tap Series in November 2016. These innovative taps have edges and grooves shaped to combine stable machining accuracy and chip evacuation performance by feature our proprietary surface treatment. The series of Tap has been warmly received by customers across many fields for their remarkable stability and long service life. Now, we’ve launched the Hyper Z Low Spiral Taps designed to machine high hardness steel. The latest additions to the Hype Z Tap Series, following the general-purpose models and models designed for stainless steel, will broaden applications with a wide range of work materials, sizes, and cutting conditions. We also plan to propose combinations of drills and taps that optimize and increase the efficiency of the overall hole machining process, thereby helping users increase productivity while reducing costs. 2. Overview of the Hyper Z Low Spiral Taps (1) Target market and needs High hardness steel is widely used for dies and parts in many fields, including automobiles, automotive parts, and industrial machinery. Due to the hardness of this steel, ordinary tools are easily chipped and soon worn out. Thus, demand is growing for tools suited for high hardness steel and featuring strong cutting edges and high abrasion resistance. (2) Features ① Long life Our proprietary surface treatment and powder high speed steel conferring both hardness and toughness improve edge strength and wear resistance. In addition to high hardness steel, these taps can cut even ductile castiron without chipping cutting edges. They offer more than double the life of similar products from competitors. ② Stable machining performance The taps feature low spiral grooves optimized for high hardness steel. These grooves cut chips into small pieces for easy removal, allowing stable tapping, even with horizontal machining centers, which are prone to problems such as chip clogging and entwining. *To facilitate chip removal, low spiral taps feature smaller twist angles than ordinary spiral taps. (3) Series size range and prices Hyper Z Low Spiral Tap ZSP-LS Thread size range : M3 to M12, coarse thread and fine thread, 10sizes Reference sizes : Typical size M6 (coarse), 62 mm in overall length at 1,830 yen/pc (tax excluded) Typical size M20 (coarse), 82 mm in overall length at 4,880 yen/pc (tax excluded) (4) Release date and sales target Release date : May 2019, global release Target sales : 50 million yen annually END

1. Expanding the compact robot market To address labor shortages and enhance productivity in response to shrinking working populations and soaring labor costs, manufacturing industries are increasingly shifting towards automation through robot introduction. Demand for compact robots is growing rapidly, especially in the fields of electric machinery, electronics, and EMS. 2. Our initiatives Nachi-Fujikoshi made a full-scale entry into the compact robot market in 2013 with our world's fastest and lightest compact robot model “MZ07”. Since then, we've broadened our lineup of compact robots by adding new models to the MZ Series and launching the EZ Series wing slicer robots in the market. These compact robots have won praise worldwide in various fields, including industrial machinery, electric machinery, electronics, and EMS as well as our market share is growing widely. We have succeeded in further expansion of our market share since we launched ultracompact robot model “MZ01” designed to meet space-saving demands in the electric machinery, electronics, and EMS fields for applications that involve the handling of small component workpieces weighing around 100 g. Additionally, we're planning to expand the payload range from 1 kg up to 25 kg and to expand our lineup of compact robots, including SCARA robots, to allow use of Nachi robots in every customer process. In addition to compact robots, we offer systems incorporating the CZ Series of collaborative robots, which will help meet all the specific factory automation needs of individual customers. 3. Features of the MZ01 (1) World's smallest 1 kg payload robot Occupying 45% of the volume taken up by the MZ04, this robot features compact dimensions and high stiffness. It’s the world’s smallest vertically articulated robot with a payload of 1 kg. In addition, unlike SCARA robots of similar payload capacity, the new robot operates with a reduced range of interference to achieve significant space savings. (2) Clean room specifications allowing installation anywhere For installation in cleanrooms, this robot in its standard configuration meets cleanroom specifications (equivalent to ISO Class 5). It weighs a mere 10 kg and is easily carried by hand if facility layouts are reconfigured. (3) Support for various applications In addition to powerful wrist torque, the standard configuration provides the cables and hoses required for various applications. Eliminating the need for cable and hoses outside the robot reduces risk of interference with peripherals and dramatically improves customer convenience. 4. Release schedule (1) Release date : January 2019 (2) Price : Open pricing (3) Sales target : 3,000 units/year 5. Inquiries about the new products Robot Business Planning Department, Robot Division, Tel: +81-(0)76-423-5135 END

1. Our efforts NACHI-Fujikoshi was established in 1928, aiming to domestically produce cutting tools. Then we started the in-house production of special steel, which is a material for cutting tools, considering that superior materials are needed to produce better goods. Since then, we have continued to build and maintain our system for the integrated manufacturing of cutting tools, from materials to products. In recent years, demand for carbide tools has expanded as cutting conditions have become more diverse. Under these circumstances, we started the carbide material development project in 2015 and made efforts to develop materials and production technologies, obtaining unique know-how in the course of these efforts. In the future, we will stably supply new high-performance, high-quality carbide materials to contribute to improve the performance of carbide drills as well as productivity and reduction of user costs. 2. In-house production of carbide materials (1) Targets and purpose In carbide tools, to satisfy the need for improved productivity, it is desired that carbide tools are capable of responding to high-speed, high-feed cutting and therefore the raw materials and other materials must have high toughness and high wear resistance. Currently, we have developed a new material dedicated to the new carbide drill AquaREVO Drills in order to contribute to the significant improvement of performance of drills with this product. (2) Material developed We achieved a carbide base material dedicated to AquaREVO Drills with both high wear resistance and high toughness with our unique alloy design. (3) Advantages of in-house production ① Advantage in terms of material technology In cooperation with the Tools Department, we appropriately advanced the performance verification through cutting tests and achieved optimum performance. With high hardness and toughness the new material has been developed with our unique composition design and sintering technology in which the grain size and homogeneity of the metal carbide are strictly controlled. Production conditions have been optimized to improve product quality. ② Advantage in terms of production technology We have built a production line with state-of-the-art equipment, such as sintering HIP furnace, to produce high-quality carbide materials. On the other hand, we introduced an automated line with a unique robot system to achieve stable product quality and expand productivity improvements. ③ Description of development investment Investment description : Construction of a new, dedicated plant, introduction of most advanced production and inspection equipment such as the extrusion molding machine, sintering HIP furnace and others Investment amount : Approximately 2 billion yen 3. Efforts to be made in the future We will continue to develop unique, high-performance materials that satisfy the needs of the Tools Department and also advance the development of carbide alloy materials, which are used for tools other than round tools, such as a skiving cutter. In addition, we will examine sales of carbide materials to external companies. END

1. Our Efforts We released the AQUA Drill EX, a carbide drill, in 2008. Since then, the extensive lineup of product series, such as the AQUA Drill EX FLAT with a completely flatcutting edge end, has been expanded and our share of the carbide drill market has grown. However, in the field of manufacturing automobile and machine parts, demand for the ability to cope with difficult-to-cutting materials, such as highly rigid materials and heat-resistant steel, improved machining efficiency for enhanced productivity, and an extended tool lifespan have been growing. Tools developed on the assumption of existing technologies have reached their limit. We have adopted the newly developed carbide material and coating, and a newly designed blade shape for the new product, introducing to the market AquaREVO Drills, an innovative, high-precision carbide drill with a longer lifespan. With the new carbide drill advanced beyond the limit found in the development of earlier models, we will contribute to our users in improving productivity and reducing costs. 2. Overview of AquaREVO Drills (1) Innovation of AquaREVO Drills ① New Material By combining the unique technologies of NACHI-Fujikoshi, which has the material department in the Group, we have developed new material with both rigidity and tenacity, which has been conventionally difficult to achieve at the same time, as well as superior wear resistance. We have begun in-house, integrated production of this newly developed material. ② New Shape By adopting a straight, cutting-edge instead of a concave cutting-edge shape generally adopted in carbide drills, it disperses the stress applied during cutting. The shape of the chip is stable under any processing condition, enabling the highest-ever productivity. ③ New Coating Our newly developed REVO-D coating, which is a process for producing a tough film by laminating two types of film with superior oxidation and wear resistance, which are laminated on a nano level. Not only the supersmoothing process that improves the low friction but also the smoothest-ever process are continuously performed. (2) Advantages The new material, shape, and coating, beyond the existing concept, are matched to offer an unprecedented method. ① Longer Life With overwhelming durability and stability, it achieves a lifespan at least double that of competitors drills. ② Shorter Work Time High-speed cutting and high feeding are enabled to reduce the work time by 50%. ③ Wider Range of Materials to be cutting Realizing high-quality processing of a wide variety of materials, ranging from raw materials to high-hardened materials without a drop in efficiency. (3) Series, dimension range and price The first series of the lineup features two types, stub and regular. (Stub is mainly used for drilling shallow holes.) We will successively expand the series lineup in the future. AquaREVO Drills Regular Size range : Ø2.0 - Ø16.0 Total of 181 dimensions Typical dimension : Ø6.0, total length 82mm Reference price : 9,610 yen/piece (tax excluded) AquaREVO Drills Stub Size range : Ø2.0 - Ø16.0 Total of 181 dimensions Typical dimension : Ø6.0, total length 66mm Reference price : 8,140 yen/piece (tax excluded) (4) Launch Plans Launch date : November 1, 2018 for global launch Sales target : 1 billion yen per year for the first fiscal year, and 5 billion yen per year for the third fiscal year and beyond for the entire Series END

1. Expanding the Collaborative Robot Market With the aim of addressing the sharp rise in personnel expenses, eliminating labor shortages and boosting productivity in the fields of industrial machinery such as automobiles, electrical machinery, electronics and EMS, and across a wide range of industrials from foods to pharmaceuticals and cosmetics, efforts to achieve automation with the introduction of robots are well underway. In this environment, collaborative robots that allow a person to work side-by-side with a robot without the use of safety barriers enable the development of flexible production lines with a minimal footprint. Accordingly, these kinds of robots are expected to be adopted in industries that have not taken advantage of the technology previously and by small-to-medium-sized enterprises, suggesting that the size of the market will undergo significant expansion in the future. 2. Our Initiatives Nachi-Fujikoshi makes its full-scale entry into the compact robot market in 2013. In the time since, we have continued to expand and update our lineup, amassed expertise in the utilization of compact robots and worked on the development, improvement and functional enhancement of collaborative robots. Recently we launched the CZ10, a compact collaborative robot offering vastly improved safety and operability, along with advancements based on our pursuit of higher precision. The robot will satisfy automation needs across a wide range of fields, including customers who have been unfamiliar with robots to date. 3. Features of the CZ10 CZ10 (1) Exceptional Safety Performance With a safety design that meets the ISO10218-1 and TS15066 international safety standards, it is possible for a person to work side-by-side with the robot without the need for a safety barrier. In functional terms, the robot detects contact with a person and shuts down or moves away in response. In terms of design, the robot is designed to maintain a certain distance between its arms and other components to avoid a person’s finger or other body part getting caught between moving parts, thus ensuring safety. Until now, areas such as food, pharmaceuticals and cosmetics and the assembly of components have been handled with production lines of people working in close proximity. As CZ10 robots can be introduced without requiring major production line design changes, automation can be achieved in a flexible and speedy way. (2) Operability that Matches Expectations The CZ10 is equipped with linear motion, which has been difficult to set up with existing direct teaching methods, and a new direct teaching feature that enables teaching with the hands maintaining a given orientation. Additionally, by adopting the same design as conventional industrial robots where the wrist and pivot are arranged along the same straight line, we have pursued operability that will appear to a wide range of customers regardless of their experience controlling robots. In the areas of electric machinery and electronics with their short product lifecycles, production lines undergo frequent changes. By enabling swift programming such as direct teaching and simple setup, even these industries are able to shorten line start-up times and improve production efficiency. (3) High-precision Positioning Control Sensors are equipped not only in the motor but in the reducer to achieve high-precision positional control. Accordingly, precise tasks previously performed by experienced workers are also supported. 4. Release Schedule (1) Release Date: August 2018 (2) Price: Open Pricing (3) Target Sales: 2,400 units / year 5. Contact for Inquiries Regarding the New Product Robot Business Planning Department, Robot Division, Tel: +81-(0) 76-423-5135 END

1. Market Trends Coating processes are performed in a wide range of industrial fields to extend the useful life and improve the performance of metal products. There is particular demand for diamond-like carbon (DLC) film, a type of amorphous carbon-hardened film whose main constituent is carbon. Due to the abrasion resistance, non-coagulating properties and low friction of DLC film, it is widely used in tools such as aluminum cutting drills, plastic and glass lenses, molds for aluminum products, and automotive components such as clutch plates and piston rings. The size of the market is growing at a pace of more than 10% per year, and there is a heightened demand for faster and higher-quality DLC film forming equipment. Recently, Nachi-Fujikoshi developed and launched the SPS-2020, a hybrid ion plating device that achieves high-quality, high-speed film forming. 2. Features of the SPS-2020 (1) Improved film-forming quality through hybrid film-forming Through a hybrid film-forming technology that combines the sputtering method, where the film-forming substance is forced out through an ion beam in a vacuum, and the P-CVD method, where a gas containing film-forming substance is inserted into plasma, film forming quality has been improved in terms of hardness, film thickness and other qualities. (2) High-speed DLC film-forming The unit is equipped with two high current HDC plasma guns which emit high-density ion beams with a higher ionization rate. This offers a DLC film-forming speed that is about 1.5 times faster than that of previous units, providing improved production efficiency. (3) Stable film-forming quality Thanks to Nachi-Fujikoshi’s unique plasma control technology and optimum mechanical structure, variation between loaded workpieces is controlled to ensure stable film-forming quality. 3. Target Markets · Aerospace : Aluminum component cutting tools, bearings supporting high-speed rotation · Automotive : Sliding components that contribute to improved mileage thanks to low friction qualities, hybrid motor components · Industrial Machinery : Robotic components, power transmission components Other fields including medicine and optics 4. Specifications · Effective film-forming range : Ø500 × height 500mm · Processable weight : 200kg · Dimensions (w × d × h) : 5,000 × 4,500 × 3,000mm · Supported film types : DLC, TiN, AlCrN, TiAIN, others 5. Release Schedule (1) Release date : August 2018 (2) Price : 120 million yen (price for standard main unit / excluding tax) (3) Target Sales : 6 units / year 6. Contact for Inquiries Regarding the New Product Planning Department, Thermotech Division, Tel: +81-(0)76-471-2981 END

1. Our efforts We introduced the Hyper Z series of innovative taps in November 2016. The series comprises brand-new taps that no other companies offer, featuring a flute geometry and cutting-edge design that achieves both stable processing precision and chip evacuation as well as our original surface treatment. Attaining tremendous stability and a long tool life and proposing optimization of the entire hole drilling work in combination with a drill, the series has earned high marks from a broad range of users. We have recently added to this lineup the Hyper Z Spiral Tap for Stainless Steel. It achieves stable processing of stainless steel, which is known as a hard-to-machine material. It will help users with productivity enhancement and cost cuts. 2. Overview of the new product (1) Target markets and needs Stainless steel is so high in corrosion resistance that it is used in a broad range of industrial sectors, including automobiles, industrial machinery, electric machinery, electronics, energy and infrastructure. It is expected to be in growing demand. Meanwhile, it is high in tenacity and prone to strain hardening. In particular, it is likely to cause trouble arising from chips. As its corrosion resistance improves, stainless steel is expected to be yet more difficult to machine. There are mounting needs for machining tools specially designed for this material. (2) Features of the Hyper Z Spiral Tap for Stainless Steel ① Stable processing performance We have developed a flute geometry and cutting-edge design optimized for stainless steel, the chips of which tend to be long. It has improved chip evacuation and paved the way for stable internal thread processing. (Patent pending) ② A longer tool life Our unique surface treatment is applied to improve strength and wear resistance of the blade tip. It provides a surprising tool life that is at least double that of competitors’ taps for stainless steel. (3) Series, dimension range and price Hyper Z Spiral Tap for Stainless Steel ZSP-SUS Dimension range: M3 to M12, coarse and fine threads, total of 20 size Reference dimensions: Typical dimension M6 (coarse thread) Total length: 62 mm 1,610 yen per piece (tax excluded) Typical dimension M12 (coarse thread) Total length: 82 mm 3,830 yen per piece (tax excluded) (4) Sales target Sales target : 100 million yen per year