FY2017 Investor Conference (May 18, 2018)

Q1. According to the 2020 Medium-Term Management Plan, average annual sales growth of 7% is expected in Overseas Market. Which do you think will show higher growth rate, sales to the financial institutions or sales to the retail industries?

A1. We expect that the growth rate of sales to the retail industries will be higher. Currently, sales to the financial institutions is the main pillar but sales to the retail industries are increasing year by year in Europe, and are expected to increase also in the United States.

Q2. Please tell us the background of setting lower sales target for Financial Market in FY2020 than the results in FY2017.

A2. Automation of cash processing operation has been already advancing in the domestic financial institutions, and we recognize it as a matured market where replacement demand is our main target. Also, movement to proceed the branch reformation is recently seen in many banks including megabanks, and we consider this as our business chance. However, we expect that its contribution to sales in FY2020 will not be significant.

Q3. Please tell us about the new business domains in more detail.

A3. As for “Currency circulation management”, we aim to realize new cash access and cycle. For example, we are considering to develop a system for emerging countries whereby payment and transfer of money can be done more conveniently. As for “Various methods of payments”, we will promote to strengthen service infrastructure to realize diversification of settlement methods, including further reinforcement and expansion of our information processing center “GCAN.” As for “Personal identification and authentication”, we aim to create structure to provide secure solutions using personal identification and authentication by promoting open innovation. We will also attempt to develop new business model with consideration for BtoBtoC by applying big-data and AI. As for “Automated society”, we will aim to provide the collaborative environment between a robot and human through the provision of robot SI services.