Expecting Industrial Robot Demand and Infrastructure Investments To Be Tailwinds for Nabtesco

As a global leader in motion control technology, Nabtesco boasts the leading global and/or domestic market share with its main products in each of its segments. Nabtesco’s precision reduction gears are supplied to the big four industrial robotics companies, as well as major Chinese players like Siasun and Estun. With a 60% global share in the reduction gear market, a focus on medium-size to large reduction gears, which are more difficult to replicate, and a wide moat backed by high switching costs and intangible assets, the business will continue to be a key driver and a core part of Nabtesco’s strategy. We expect factory automation investments to be put off in the near term as a result of uncertainties from the trade friction between the United States and China; however, Nabtesco will be well positioned as a recovery in capital expenditures and secular growth in the industrial robotics industry drive demand in the medium to long term.