Okamoto Nabeya Group -- Our Businesses and Hopes for the Asia Pacific Region --

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Document for METI-RIETI APEC Symposium on Small and Medium-Sized Enterprises (Provisional translation) Okamoto Nabeya Group -- Our Businesses and Hopes for the Asia Pacific Region -- Tomohiko Okamoto President of Okamoto Nabeya Group

Corporate Profile Founded: 1560 (The year Oda Nobunaga won the Battle of Okehazama) Five operating companies Capital: 247 million Total sales: 8.5 billion No. of employees: 373 1. Manufacture and sale of cast products 2. Manufacture and sale of equipment for water and sewage pipelines 3. Manufacture and sale of standard jigs for machine tools 4. Manufacture and sale of anti-vibration equipment for devices used in liquid crystal and semiconductor facilities 5. Special anti-corrosion processing of device for liquid crystal and semiconductor facilities 6. Wholesale of devices for housing equipment and household use, construction 7.Manufacture and sale of aluminum exterior products 2

Equipment for water and sewage pipelines Landscape materials 3

Standard jig elements for machine tools 10,000 standard jig elements Produced with our wealth of knowledge and experience Using our brochure Friends (250,000 copies) and our website Precision jig systems High precision & ultra-high speed Precision machine vises The most versatile jigs Made-to to-order order jigs Process design, jig design, integrated production 4

Liquid crystal and semiconductors Products for eliminating/preventing vibration Testing equipment Electronic microscopes Industrial equipment Measuring/testing 5

Cast products High specification materials E 6

Housing equipment (wholesale), home renovation Manufacturing and sales of exterior materials Custom designs 7

Management Principles and Corporate Policies Management Principles Ensuring robust management and timely adaptation Win-Win business with customers, local communities and the global environment Corporate Policies Focusing on the development of new products and businesses Evolution of technical craft to enable production of variable products in variable quantities Action Guidelines Pursue a hands-on policy (actual places and actual products) Gather wisdom and keep everyone informed Take specific action with a broad perspective 8

Our Approach to Manufacturing Methods Technical Craft = Advanced Technologies + Skills Improvement Ongoing activities for strengthening manufacturing capability (production of variable products in variable quantities) 1. Skills improvement Encourage employees to pass skills examinations -Grade S Grade 2 (accredited by the national government) -Accumulated total of 254 workers/160 workers passed 2. Promotion of use of 3D digital engineering Purpose: Stable quality, quicker start to production 3D digital engineering is used for development design in: casting (raw materials) precision machining (μ( precision) until products are complete 3. Improvement activities Eradication of waste, irrationality and unevenness Visualization of processes 9

History of Our Overseas Business 1930s 1960s 1970s 1980s Exported pots, pans, and charcoal irons to the United States and Asia Exported hand tools (vises) to the United States and Asia Exported machine tool attachments 1985 Plaza Accord (Yen appreciated dramatically) 1989 2001 Founded a sales company in Singapore with a 30% stake Founded a sales company in Shanghai with a 30% stake Current volume of transactions Exports (mainly to Asia): 200 million Imports (from Germany, Italy, US, and China): 100 million 10

What We Expect from the Symposium Increasing business opportunities in the Asia Pacific 1. Rebuilding sales channels 2. Finding manufacturing partners Keywords: Win-Win business Contributing to local communities When in Rome, do as the Romans do. Conditions for starting the overseas business of small and medium enterprises (SMEs( SMEs) (Based on the assumption that employment in Japan is secured) 1. Establishing an environment for fair competition Action against the appreciation of the yen Elimination of tariff barriers and non-tariff barriers 2. Helping SMEs establish an overseas presence Assistance with risk hedging Support for investment Support for expatriation cost 11