SHOEI CO., LTD.SHOEI CO., LTD.PresentationPresentation

November 22, 2018

Regime for the 62nd Fiscal YearRegime for the 62nd Fiscal Year☆Sales volume increased 15,000 units year on year, mainly , y y , y

in Japan and North America. Unit prices of products increased as well. As a result, revenue was up １,507 million yen.

☆Foreign exchange rates (euro) at the term-end of subsidiaries (the end of June) were almost the same as those of the 61st term, and there was almost no foreign exchange impact on consolidated incomeexchange impact on consolidated income.

☆Meantime, despite an increase in raw materials cost and SG&A expenses operating profit rose 272 million yenSG&A expenses, operating profit rose 272 million yen.

☆As a result, net income of 2,578 million yen was posted, an all-time high for profit this term, as well.all time high for profit this term, as well.

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The Fiscal Year Ended Sep. 30, 2018

（１） Consolidated Statements of Income (Millions of yen)

O OOct.16-Sept.17

Oct.17-Sept.18 Changes from

Previous year(％)

N t S l 15 641 17 148 +9 6N e t S a l e s 15,641 17,148 +9.6O p e r a t i n gI n c o m e 3,461 3,734 +7.9O d iO r d i n a r yI n c o m e 3,497 3,772 +7.9Profit attributablet o o w n e r s o f

t 2,358 2,578 +9.3p a r e n t , ,N e t I n c o m ep e r S h a r e ¥171.29 ¥187.21 +9.3

D i v i d e n d ¥85 00 ¥93 00 9 4

Notes:The net income per share is calculated using the weighted average number of shares (excluding

D i v i d e n dp e r S h a r e ¥85.00 ¥93.00 +9.4

The net income per share is calculated using the weighted average number of shares (excludingtreasury stock) during the period.

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（２） Change of Sales and Net Income Indicator

4 00018 000

Sales Net Income (Millions of yen)(Millions of yen)4,000

15,000

18,000

3,000

12,000

2,000

6,000

9,000

1,000

3,000

00The 57th The 58th The 59th The 60th The 61st The 62nd

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（３）The trend of Exchange Rate

140.00

EUR(MUFG Bank,Month end)EUR(Average rate)EUR(for Subsidiaries)USD(MUFG B k M h d)

【YEN】

130 00

135.00

USD(MUFG Bank,Month end)USD(Average rate)USD(for Subsidiaries)

125.00

130.00

115.00

120.00

105 00

110.00

100.00

105.00

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

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＜＜NEOTENEOTEＣＣⅡⅡ＞＞

New Products during the 62nd Fiscal Year

＜＜NEOTENEOTEＣＣⅡⅡ＞＞System helmet with sun visor supporting intercomSystem helmet with sun visor supporting intercom

sold in unprecedented quantities thanks to thesold in unprecedented quantities thanks to thepopularity of the innovative design and builtpopularity of the innovative design and built--ininintercom functionality.intercom functionality.

【Europe】

Launching in January 2018

【North America】

Launching in March 2018

【Japan】

Launching in May 2018

Sales Vol me ( Consolidated base) Total 95 000 nitsSales Volume ( Consolidated base) Total : 95,000 units

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（４）Consolidated Balance Sheets(Millions of Yen)

Sept.30,2017 Sept.30,2018C a s h a n d D e p o s i t s 7,230 8,115 （ +884）

A c c o u n t R e c e i v a b l e 1,794 2,179 （ +384）1,794 2,179 （ ）

Merchandise and Finished Goods 1,198 1,396 （ +198）

W o r k i n P r o c e s s 449 421 （ -28）

R a w M a t e r i a l s a n d P a r t s 569 689 （ +120）R a w M a t e r i a l s a n d P a r t s 569 689 （ +120）

O t h e r C u r r e n t A s s e t s 982 973 （ -9）

T o t a l C u r r e n t A s s e t s 12,226 13,776 （ +1,550）

T t l F i d A t 2 776 2 979 （ +202）T o t a l F i x e d A s s e t s 2,776 2,979 （ +202）

T o t a l A s s e t s 15,003 16,755 （ +1,752）

C u r r e n t L i a b i l i t i e s 2,005 2,296 （ +290）

（ ）F i x e d L i a b i l i t i e s 742 799 （ +57）

T o t a l L i a b i l i t i e s 2,747 3,096 （ +348）

S h a r e h o l d e r s ‘ E q u i t y（ C i t l S t k ）

12,704(1 394)

14,111(1 394)

（ +1,406）（ ）（ C a p i t a l S t o c k ）

（ T r e a s u r y S t o c k ）

(1,394)(-0)

(1,394)(-1)

（ ―）（ -0）

T o t a l N e t A s s e t s 12,255 13,659 （ +1,403）

T o t a l L i a b i l i t i e s a n d15 003 16 755 （ 1 752）

T o t a l L i a b i l i t i e s a n dT o t a l N e t A s s e t s 15,003 16,755 （ +1,752）

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（５） Financial Indicator

(Millions of yen)

0%

30.0%

Ordinary income to net sales ratio ＲＯＡ ＲＯＥ

22.9% 22.4% 22.0%

16 7% 16 6% 16 2%

21.3% 20.7% 19.9%

20.0%

25.0%

16.7% 16.6% 16.2%

10 0%

15.0%

5.0%

10.0%

0.0%

The 60th The 61st The 62nd

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Regime for the 63rd Fiscal Year☆Budgeting of helmet sales volume is 544,000 units, an increase of 22,000

Regime for the 63rd Fiscal Year☆ g g , , ,

units compared to the 62nd term. We believe that this volume can be achieved on the strength of a promising new model, which we will touch on lateron later.

☆On the other hand, operating profit is expected to decrease 7.9%, due to an assumed stronger yen in exchange rates and a rise in SG&A expenses.

Provided there is no sharp rise in the yen that exceeds the opening budget or a deterioration in market conditions the budget at this point is expectedor a deterioration in market conditions, the budget at this point is expected to be fully achievable.

☆Foreign exchange sensitivity:☆Foreign exchange sensitivity: 1 yen/1 dollar: consolidated net sales: 29 million yen, net income: 12 million yen1 yen/1 euro: consolidated net sales: 54 million yen, net income: 23 million yen

*These are only rough indications and actual results may differ from these

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These are only rough indications, and actual results may differ from these figures.

Forecasts for the Fiscal Year Ending Sep. 30, 2019

（１） Consolidated Statements of Income (Millions of yen)

O OOct.17-Sept.18

Oct.18-Sept.19 Changes from

Previous year(％)

N t S l 17 148 18 150 +5 8N e t S a l e s 17,148 18,150 +5.8O p e r a t i n gI n c o m e 3,734 3,440 -7.9O d iO r d i n a r yI n c o m e 3,772 3,450 -8.5Profit attributablet o o w n e r s o f

t 2,578 2,390 -7.3p a r e n t , ,N e t I n c o m ep e r S h a r e ¥187.21 ¥173.55 -7.3

D i v i d e n d ¥93 00 ¥86 00 7 5D i v i d e n dp e r S h a r e ¥93.00 ¥86.00 -7.5

Notes:1. The net income per share is calculated using the weighted average number of shares (excluding

treasury stock) during the period

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treasury stock) during the period.2. The assumed exchange rates for the 2019 fiscal year are USD/JPY = 110.00 and EUR/JPY = 125.00.

TotalTotal 17,148(changes (changes +1,507) +1,507) TotalTotal 17,148(changes (changes +1,507) +1,507) TotalTotal 15,641TotalTotal 15,641

TotalTotal 18,150((changes + 1,001) changes + 1,001) (544 Thousands units)(544 Thousands units)

TotalTotal 18,150((changes + 1,001) changes + 1,001) (544 Thousands units)(544 Thousands units)

（２） Consolidated Sales Composition by Region

20 000(Millions of yen) Other AreasOther Areas (11 0%)(11 0%)

( g( g , ), )(521 Thousands units)(521 Thousands units)( g( g , ), )(521 Thousands units)(521 Thousands units)(506 Thousands units)(506 Thousands units)(506 Thousands units)(506 Thousands units) Exchange rate

US$=￥ 110.00 (+ ¥ 0.22)EUR=￥125.00 ( - ¥ 7.03)

( )( )( )( )

Other AreasOther Areas (10.0%)(10.0%)1 8111 811 (changes(changes --73)73)

Exchange rate US$=￥ 109.78 ( - ¥1.14)EUR=￥132.03 ( + ¥9.67)

Exchange rate US$=￥ 110.92EUR 122 3620,000

( y ) Other AreasOther Areas (11.0%)(11.0%)1,884 1,884 ((changes +26)changes +26)(62 Thousands units)(62 Thousands units)

1,811 1,811 (changes (changes 73)73)(60 Thousands units)(60 Thousands units)

Other AreasOther Areas (11.9%)(11.9%)1,8581,858(65 Thousands units)(65 Thousands units)

EUR=￥122.36

16,000 North AmericaNorth America (16.1%)(16.1%)2,767(changes +628)2,767(changes +628)(90 Thousands units)(90 Thousands units)

North AmericaNorth America (18.0%)(18.0%)3,272 3,272 (changes (changes +504)+504)(110 Thousands units)(110 Thousands units)North AmericaNorth America (13.7%)(13.7%)

2 1382 13812,000

( )( )

EuropeEurope ((48.0%)48.0%)

Overseas (76.0%)13,797(changes + 1,234)changes + 1,234)(420 Thousands units)(420 Thousands units)

Overseas (76.0%)13,797(changes + 1,234)changes + 1,234)(420 Thousands units)(420 Thousands units)

2,138 2,138 (71 Thousands units)(71 Thousands units)

Overseas (74.0%)11,557 (385 Thousands units)

Overseas (74.0%)11,557 (385 Thousands units)

Overseas (73.3%)12,562 (changes changes +984) +984) (389 Thousands units)(389 Thousands units)

Overseas (73.3%)12,562 (changes changes +984) +984) (389 Thousands units)(389 Thousands units)

8,000 EuropeEurope (46.1%)(46.1%)7,910(changes +330)7,910(changes +330)(235 Thousands units)(235 Thousands units)

EuropeEurope ((48.0%)48.0%)8,714 8,714 (changes (changes +803) +803) (250 Thousands units)(250 Thousands units)

EuropeEurope (48.5%)(48.5%)7,580 7,580 (248 Thousands units)(248 Thousands units)

4,000 Japan (26.7%)4,586 (changes changes +522) +522) (132 Thousands units)(132 Thousands units)

Japan (24.0%)4,353 (changes changes --233233) (124 Thousands units)

Japan (26.0%)4,063 (120 Thousands units)

0 Oct.16-Sep.17 Oct.17-Sep.18 Oct.18-Sep.19

(Forecast)-10-

（３）Key Themes in the 63rd Term①Improving productivity with expansion of production capacity (facilities, increase inproduction capacity (facilities, increase in headcounts) and JIT (improvement, kaizen activities etcactivities, etc.

②Make a thorough analysis of customer needs and launch attractive new models through the convergence of electronics and IT. An increase gin unit price is planned after that.

③B d t t③Brand strategy

④Sales force enhancement in promising④Sales force enhancement in promising markets

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①Expansion of production capacity

From the 62nd term through the 64th term, the From the 62nd term through the 64th term, the existing policy of enhancing production capacity existing policy of enhancing production capacity g p y g p p yg p y g p p yfrom 500,000 to 600,000 units per year is firmly from 500,000 to 600,000 units per year is firmly maintained. In order to achieve it, we will work maintained. In order to achieve it, we will work ,,diligently on capital investment (attachment,) diligently on capital investment (attachment,) increasing headcounts (attachment,) developing increasing headcounts (attachment,) developing g ( ,) p gg ( ,) p gpromising new models (attachment,) improving promising new models (attachment,) improving productivity through JIT improvement activities productivity through JIT improvement activities p y g pp y g p(attachment,) and enhancing our sales force (attachment,) and enhancing our sales force (attachment.) Our production capacity in the 63rd (attachment.) Our production capacity in the 63rd ( ) p p y( ) p p yterm is planned to be 548,000 units, including 10 term is planned to be 548,000 units, including 10 days’ holiday work.days’ holiday work.y yy y

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Capital Expenditures and Depreciation

1,500

(Millions of Yen) ・Investment for Molds of New Products・Construction of Large Wind Tunnel Experiment Facility

・2nd Enlargement of Painting Facility &

1,073 1,099

1,193 1,200

Equipment in Both Factories・Investment for Molds of New Products

961 923

848

952

849900

・Investment for Molds of New Products・Large Wind Tunnel Experiment Facility

683

525 495

730 707

543

501509

614 605600

375 332

348 365

450501

397

300

0O 07 O 08 O 09 O 10 S 11 O 12 O 13 O 14 O 15 O 16 O 17 O 18

Large scale investment to equipmentand facility for growth is completed within current term

Large scale investment to equipmentand facility for growth is completed within current term

Oct.07-

Sept.08

Oct.08-

Sept.09

Oct.09-

Sept.10

Oct.10-

Sept.11

Sept.11-

Oct.12

Oct.12-

Sept.13

Oct.13-

Sept.14

Oct.14-

Sept.15

Oct.15-

Sept.16

Oct.16-

Sept.17

Oct.17-

Sept.18

Oct.18-

Sept.19

Investment to Equipment & Facility Depreciation Forecast

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CAPEX for the 63rd Fiscal YearTotal 1,193,202 Thousands of YenMain capital investments1 Mold 355 000 Thousands of Yen1. Mold 355,000 Thousands of Yen2. Cap bodies molding presses

166,800 Thousands of Yen3 Robot grinder/expanded grinding3. Robot grinder/expanded grinding

workshop89 850 Th d f Y89,850 Thousands of Yen

4. Open preform machines4. Open preform machines62,300 Thousands of Yen

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Change of Employee

Regular employee Contract worker(People)

500

600

g p y(People)

400

500

300

100

200

0Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018 Sep.2019

Forecast

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JIT (Just in time) improvement activitiesJIT (Just in time) improvement activities

Classroom lecture Onsite guidance

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Increase in unit prices of productsHigher added value and production streamlining are g p ga pair of wheels for sustaining “Made in Japan.”

Headquarters side

Strength of SHOEI

Plants side

Strength of SHOEIProduct Planning DepartmentProduct planningResearch (including new technologies)

Development DepartmentTransforming ideas for mass production

PlantsProductivity improvement

Product Design SectionNew functionality, innovative design Procurement Department

Cost management

Quality Control Department

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Graphic Design SectionInnovative design

Quality Control DepartmentResponse to standardsMaintenance of high quality

②Increase in unit price by developing attractive new models

Introduction of New Products to the Market＜＜ EXEX--ZERO ZERO ＞＞Introduction of New Products to the Market

Vintage style fullVintage style full--face modelface model

【Japan】

Launching in November 2018Suggested Retail Price : YEN 38,000 ～ YEN 46,000

(E l di S l T )(Excluding Sales Tax)

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＜＜ GTGT--Air Air ⅡⅡ＞＞F ll F H l t i d ith S ViF ll F H l t i d ith S Vi

【Europe】

L hi i M h 2019 (*)

Full Face Helmet equipped with Sun VisorFull Face Helmet equipped with Sun Visor

Launching in March 2019 (*)(Initial Shipment : January 2019 (*) )

Suggested Retail PriceGermany, France : EUR499.00 y,

～EUR629.00(Including VAT (Tax))GT-Air : EUR479.00 ～ EUR579.00(Including VAT(Tax))

【North America】【North America】

Launching in April 2019 (*)(Initial Shipment : January 2019 (*) )

Suggested Retail Price : US$599.00～US$699.00 (Excluding Sales Tax)

GT-Air : US$549.99 ～ US$670.99(Excluding Sales Tax)

【Japan】【Japan】

Launching in Spring 2019 (*)

(Initial Shipment : Spring 2019 (*) )Suggested Retail Price : To be announced

GT Ai YEN45 000 YEN56 000(E l di S l T )

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GT-Air : YEN45,000 ～ YEN56,000(Excluding Sales Tax)

* Launch schedules are subject to change.

The trend of average unit price for motorcycles helmets

（units） （Yen）

Sales unit price

25,000

30,000

500

600Sales quantity

Unit price

（units） （Yen）

20,000

,

400

15,000300

5 000

10,000

100

200

0

5,000

0

100

Sep.2005 Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018

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p p p p p p p p p p p p p p

③ Brand strategy③ Brand strategy

With an awareness that significant market gexpansion in developed countries is unlikely in future we will aim to enhance our brandin future, we will aim to enhance our brand strength and retain consumers and dominant retailers by promoting PFS utilizing theretailers by promoting PFS, utilizing the internet, and pursuing effective advertising.

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Marc Marquez

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Retain consumers by ＰＦＳ

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④Sales force enhancement in promising marketsmarkets

Sales force enhancement in promisingSales force enhancement in promising markets

Development of products meeting the new helmet safety standards in the Chinesehelmet safety standards in the Chinese market.

Preferential allocation of management t fi ld t d t iresources to fields expected to grow in

Asian markets other than China, such as ,Taiwan, Thailand, and Malaysia.

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Asian Market TrendsG / i ( S$)

China

Indonesia

1,386.4

264.0

Population (1 million people)

China

Indonesia

Philippines

8,643

3,876

2,976

GDP/capita (US$)

Philippines

Thailand

Korea

Malaysia

104.9

69.0

51.5

31.6

23 6

Philippines

Thailand

Korea

Malaysia

Taiwan

2,976

6,591

29,891

9,813

24,577

0  200  400  600  800  1,000  1,200  1,400 

Taiwan

Hong Kong

Singapore

23.6

7.4

5.6

0 10,000 20,000 30,000 40,000 50,000 60,000

Hong Kong

Singapore

46,109

57,713

China

Indonesia

15,087,000

5,886,103

Sales units of motorcycles

China

Indonesia

12,597

927

Sales units of large sized motorcycles

China

Indonesia

The Company's sales volume for the 62nd term

Philippines

Thailand

Korea

Malaysia

1,319,075

1,810,771

81,919

15,436

Philippines

Thailand

Korea

Malaysia

2,538

51,500

0

1,354

Philippines

Thailand

Korea

Malaysia

0 5,000,000 10,000,000 15,000,000 20,000,000

Taiwan

Hong Kong

Singapore

909,863

0

0

0 10,000 20,000 30,000 40,000 50,000 60,000

Taiwan

Hong Kong

Singapore

3,342

0

0

0 5,000 10,000 15,000 20,000

Taiwan

Hong Kong

Singapore

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（13）Conclusion Summary

Maintaining Maintaining Basic PolicyBasic Policy for for Medium and Long Term Medium and Long Term Stable Growth and Stable ProfitStable Growth and Stable Profit

1. Maintaining Healthy Financial Positions (Protect Own Company by Ourselves)

2. Maintain “Made in Japan,” focusing on higher value-added products and production a ta ade Japa , ocus g o g e a ue added p oducts a d p oduct orationalization.

3. Continuation of Investment4 Targeting # 1 in All Premium Helmet Markets in the World4. Targeting # 1 in All Premium Helmet Markets in the World

5. It takes 10 years to build a castle, but just one day for it to fall. We will not assign an irrational quota that could cause injustice.

Move forward steadily in a simple, honest manner, but without sidestepping the challenges in front of us.

6. Fair distribution of retained earnings• 50% dividend of profit after tax• Distribution to employees• Distribution to company (proper retained earnings kept)

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Thank you very much for your attention and please take good care of our p g

SHOEI’s helmets further on.