Financial Highlights Strategy by Segment

Net Sales (Domestic/Overseas) Order Backlogs (Domestic/Overseas) Operating Income/Operating Margin

(Millions of yen) (Millions of yen) (Millions of yen) (%) Fujitec was the first company in the Japanese and escalator industry to expand into overseas markets, 200,000 240,000 15,000 14,449 15 establishing Fuji Engineering Co., (HK) Ltd. (currently Fujitec (HK) Co., Ltd.) in 1964. Since then, we have been 177,128 13,488 167,442 170,759 208,183 12,687 165,297 168,795 195,339 199,602 proactively promoting global business, which encompasses six R&D centers and 10 manufacturing bases in over 184,738 20 countries and regions. Each sales base is connected through our global supply chain network. 150,000 180,000 166,745 10,665 10,313 10,000 10 (As of March 31, 2019) 8.2 104,644103,860101,709 8.2 103,789116,747 139,171142,327 7.6 100,000 120,000 139,864127,538 6.3 6.0 118,966 5,000 5 50,000 60,000 61,508 60,381 62,798 64,935 69,050 60,431 65,856 47,779 55,475 57,200 0 0 0 0 Japan 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 North America & Net Sales ■ Domestic net sales ■ Overseas net sales ■ Domestic order backlogs ■ Overseas order backlogs ■ Operating income (left scale) ¥72,485 million ● Operating margin (right scale) Europe Operating Income ¥5,206 million Number of affiliates Profit Attributable to Owners of Parent/ Assets/Net Assets/Shareholders’ Net Income Per Share/ Net Sales ¥24,046 million* 3 ROE Equity Ratio Net Assets Per Share Number of employees Operating Income ¥893 million* 2,982 (Millions of yen) (%) (Millions of yen) (%) (Yen) 10,000 20 200,000 80 1,400 Number of affiliates 9,220 182,503184,690 10 8,857 179,856 1,243.461,271.28 8,807 8,564 171,872173,007 (Three of which are consolidated subsidiaries) 8,356 1,200 1,148.36 1,074.821,102.66 7,500 15 150,000 53.5 55.0 55.7 60 Number of employees 51.9 51.6 1,000 762 111,822113,923 800 Regions served: 9.4 9.7 9.4 104,620100,406103,847 5,000 9.2 9.1 10 100,000 40 U.S.A., Canada, Venezuela, Argentina, Uruguay, 600 Guam, U.K., Saudi Arabia, Egypt and UAE

400 2,500 5 50,000 20

200 90.84 109.36 106.35 109.82 114.14 0 0 0 0 0 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 ■ Profit attributable to owners of parent (left scale) ■ Assets (left scale) ■ Net assets (left scale) ■ Net income per share ■ Net assets per share ● ROE (right scale) ● Shareholders’ equity ratio (right scale) East Asia

Capital Investment/ South Asia Net Sales ¥69,308 million Cash Flows Depreciation and Amortization R&D Expenses (Domestic/Overseas) Net Sales ¥16,572 million (Millions of yen) (Millions of yen) (Millions of yen) Operating Income ¥2,270 million 15,000 14,360 5,000 2,500 2,425 2,302 2,323 Operating Income million Number of affiliates 11,870 ¥1,851 9 10,753 2,179 4,138 4,149 10,000 9,589 4,071 2,023 146 Number of affiliates (Eight of which are consolidated subsidiaries) 8,932 4,000 2,000 151 147 11 153 (Seven of which are consolidated subsidiaries) 123 Number of employees 4,739 5,000 3,055 2,915 3,000 2,748 2,751 1,500 Number of employees 1,622 2,373 Regions served: 0 2,721 2,176 2,279 , , and -619 2,026 2,151 Regions served: -2,160 2,000 1,000 1,900 -3,225 2,175 -5,000 -4,199 , Malaysia, the Philippines, -5,319 -5,346 -6,957 -3,858 Thailand, Vietnam, , India, 1,000 500 -10,000 -6,757 R&D centers Sri Lanka and Myanmar -11,532 -15,0000 0 0 Manufacturing bases 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 2015.3 2016.3 2017.3 2018.3 2019.3 Major sales bases * The segments of “North America” and “Europe” were consolidated as “North America & Europe” ■ Cash flows from operating activities ■ Capital investment ■ Depreciation and amortization ■ Domestic R&D expenses ■ Overseas R&D expenses in the ending March 31, 2020. The figures above for the fiscal year ended March 31, 2019 ■ Cash flows from investing activities Logistics base reflect this segment change. ■ Cash flows from financing activities

12 FUJITEC REPORT 2019 FUJITEC REPORT 2019 13 Japan East Asia

The Kitano Hotel Tokyo (Tokyo) Laguna Baycourt Club Hotel & Spa Resort (Aichi Prefecture) Hong Kong Children’s Hospital (Hong Kong) ASE Mall (Taiwan)

Net Sales Operating Income Net Sales Operating Income Market Characteristics >> • • Market Characteristics >> • • • Strong demand for new installations, (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 80,000 6,000 5,728 China 100,000 8,000 7,500 mainly in the Tokyo metropolitan area 72,485 73,000 5,445 67,646 5,199 5,206 5,200 • Accounts for about half of global 84,606 65,001 65,572 • Customer needs range from high- demand for new installations 80,000 60,000 4,500 72,594 70,442 69,308 6,000 value-added to standard products • Severe price competition, mainly in the 65,000 4,540 • Demand for modernization is high low-priced range 60,000 and the market is growing 40,000 3,000 4,000 Hong Kong, Taiwan and South Korea 40,000 2,600 • Mature markets. Centered on 2,258 2,270 20,000 1,500 2,000 after-sales 20,000 • Strong needs for high-value-added 0 0 0 0 2016.3 2017.3 2018.3 2019.3 2020.3 2016.3 2017.3 2018.3 2019.3 2020.3 new installations 2016.3 2017.3 2018.3 2019.3 2020.3 2016.3 2017.3 2018.3 2019.3 2020.3 （Forecast） （Forecast） （Forecast） （Forecast）

In Japan, orders for new installations increased significantly, elevator models that meet market needs. These new models In East Asia, although demand for new installations remained elevator models ZEXIA (with machine room) and REXIA mainly in the Tokyo metropolitan area, where large-scale will capture construction demand for office, residential and steady in China, the world’s largest market, new orders (without machine room). These models are our main products development projects are ongoing, and orders for modernization commercial facilities. In the modernization business, we will decreased significantly due to ongoing severe price competition. in China, the world’s largest market for and escalators. remained steady overall. Due to growth in both the new proactively respond to customer needs to maintain sustainable Net sales increased in China and Taiwan but decreased in In Hong Kong, Taiwan, and South Korea, we will focus on the installation business and the after-sales market business, net growth. In the maintenance business, we will use digitalization Hong Kong and South Korea, resulting in a 1.6% year-on-year after-sales market business, mainly for modernization projects. sales increased 7.2% from the previous fiscal year, setting a to make advances that will further improve our services and decrease overall. Operating income increased 0.5% from the For the fiscal year ending March 31, 2020, we aim to record high for the third consecutive year. On the other hand, strengthen profitability. previous fiscal year due to the improved profitability of new increase orders received in China despite the persistent operating income decreased due to increases in fixed costs For the fiscal year ending March 31, 2020, we forecast installations in China, although the profitability of exports severe price competition. Net sales are expected to decrease such as labor costs and in logistics costs due to concentration year-on-year increases in net sales in both the new installation decreased in South Korea. due to the large decline in orders in China in the previous of work associated with the start of a large-scale project. business and the after-sales market business, and expect Under the new mid-term management plan, we will work fiscal year. We expect an increase in operating income as a Under the new mid-term management plan, we aim to demand to remain firm, mainly in the Tokyo metropolitan area. to simultaneously increase the number of new orders and result of profits on par with the previous fiscal year in China, further enhance the Fujitec brand by achieving an increase in Operating income is expected to remain flat due to increased improve profitability in the new installation business by further improved profitability in South Korea and stable performance orders in the new installation business from properties with costs for upfront investment in digital technologies in the enhancing the price competitiveness of the global standard in Hong Kong and Taiwan. high market value. We will also begin sales of our new line of maintenance business.

Highlight Highlight Joint Research with Shiga University Building an Elevator with the World’s Longest Travel

Fujitec and Shiga University Faculty of Data Science are conducting joint research into the Huasheng Fujitec Elevator Co., Ltd., a Group company in China, received an order in development of a risk forecasting model. This model is based on the analysis of elevator March 2018 for three elevators that, when complete, will have the world’s longest travel operation log information. The purpose is to detect elevator problems, identify any – 638 meters through a mountain. The elevators will be installed in Zhangjiakou (Hebei), correlations, and eliminate future operating risks at the detection stage. We intend to use one of the venues for the 2022 Beijing Winter Olympics and Paralympics. They will the research results to provide society with safe, reliable and comfortable products. travel at the ultra-high speed of 720 meters per minute. Drilling work through the mountain is steadily proceeding, after which construction will commence. Artist’s rendition of shaft inside the mountain

14 FUJITEC REPORT 2019 FUJITEC REPORT 2019 15 North America South Asia & Europe

One Raffles Place (Singapore) Prestige High Fields (India) Madison Square Park Tower (U.S.) 610 Lexington Avenue (U.S)

Net Sales Operating Income Net Sales Operating Income Market Characteristics >> • • Market Characteristics >> • • (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) Singapore 20,000 2,000 1,936 North America 30,000 1,200 1,851 1,100 17,075 17,192 17,000 1,720 1,700 26,000 • The mature market requires high 16,572 1,626 • In the United States, trends in U.S.-China 24,382 15,586 25,000 24,046 1,000 22,868 22,500 893 service quality 15,000 1,500 trade friction remain unclear, making 875 852 India, Vietnam, Thailand and Indonesia global supply chain adaptability important 20,000 800 • In Canada, new installation demand is • South Asia is developing as a new base for 10,000 1,000 15,000 600 reaching new markets, centered on India firm, mainly in major cities and for • The market is growing, but growth infrastructure such as airports 10,000 400 5,000 500 speed differs by country Europe 5,000 200 94 • Susceptible to political factors, including • Economic outlook is unclear due to the 0 0 0 0 economic stagnation and currency 2016.3 2017.3 2018.3 2019.3 2020.3 2016.3 2017.3 2018.3 2019.3 2020.3 impact of the withdrawal of the United 2016.3 2017.3 2018.3 2019.3 2020.3 2016.3 2017.3 2018.3 2019.3 2020.3 depreciation in each country （Forecast） （Forecast） Kingdom from the European Union （Forecast） （Forecast） Note: The figures prior to the fiscal year ended March 31, 2019 represent the sum of the North America and Europe segments (before the segments were consolidated).

In South Asia, demand in the Singapore/ASEAN region is region, including the Mekong River Basin, and India. We In North America, due in part to economic expansion, demand modernization projects, and reinforce our maintenance consistent and strong. Orders received increased substantially, strengthened our product supply system with the development remained steady and orders received increased, particularly in infrastructure to improve profitability. In Europe, we will focus particularly in India, where demand for new installations of a supply chain centered in India, enabling us to expand Canada, where we received an order for a total of 22 airport on the new installation and modernization businesses. bounced back after a drop in the previous fiscal year when the sales in India as well as to increase exports from India to the terminal elevators, escalators and moving walks in connection For the fiscal year ending March 31, 2020, we expect firm Goods and Services Tax came into effect. New installations rest of the region. We will use the Experience Centre, an with the expansion of Vancouver International Airport. Net performance in both North America and Europe, and an increased in India but decreased in Singapore due to a slump employee training facility that opened in June 2019 in sales in North America decreased in the new installation increase in profits, mainly in the after-sales market business. in demand. Overall, net sales decreased 3.6% compared with Singapore, to promote and expand the Fujitec brand based on business, but increased in the after-sales market business. In North America, we plan on increases in net sales and the previous fiscal year. Operating income increased in safety and reliability. Both net sales and operating income were on par with the operating income in the new installation and modernization Malaysia and Indonesia but decreased in Singapore due to For the fiscal year ending March 31, 2020, sales are previous fiscal year. In Europe, sales decreased due to the businesses in both the United States and Canada. In Europe, worsening profitability for new installations. Although sales expected to decrease in Singapore, but to increase significantly sell-off of a German subsidiary in the previous fiscal year. In we aim to break even, starting by improving profitability in the increased in India, expenses also increased and the break- in India due to growth in orders, with improvement in income the United Kingdom, new installation business sales were United Kingdom. We will work to achieve increases in net even point remained on par with the previous fiscal year. expected as well. Operating income is forecast to decrease weak and did not achieve profitability. sales and operating income for the segment overall. Under the new mid-term management plan, we will due to higher labor costs resulting from our plan to increase Under the new mid-term management plan, we will work in continue to invest management resources in the ASEAN maintenance department staff in Singapore. North America to expand orders for new installations and

Highlight Highlight Opening of the Experience Centre in Singapore Large-Scale Modernization Projects in the U.S.

Fujitec Singapore Corpn. Ltd., the hub of our operations in South Asia, opened the In the United States, demand is increasing for modernization projects to update existing Experience Centre, an employee training facility, in June 2019. The facility includes a elevators. Fujitec America, Inc. has benefited from this demand through an increase in training area for engineers to polish their skills, in addition to a showroom for customers orders for modernization projects. The company worked on 1400 Smith Street, a and employees to learn about Fujitec’s history and products, and to deepen understanding landmark of the city of Houston, and carried out an elevator modernization project, of Fujitec. In the future, we plan to invite customers and employees from neighboring including a double-deck elevator, in the Bank of America Plaza in Dallas. Fujitec America countries with the aim of building trust and enhancing the skills of employees. will continue working to capture new orders backed by stable demand. Bank of America Plaza (Dallas) skyscraper standing at 317 meters

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