Growth Strategies of Existing Businesses

In addition to developing, producing and selling new products in our existing businesses, we will expand our entire value chain, mainly consisting of the after-market business and the rental-to-used equipment business by strengthening business, including mergers and acquisitions. In FY2015, we acquired a distributor in Mexico, which I have mentioned earlier, as well as Lehnhoff Hartstahl GmbH, a leading manufacturer of attachments in Germany. We will continue to expand this value chain into the future.

With respect to development of new products, while emphasizing the development of DANTOTSU products, we will work to develop latest emission regulation-compatible models for advanced countries, as well as local needs-tailored models for emerging countries. We will also work to develop application-specific models, such as dredging, demolition, industrial waste processing and agricultural engineering. In the forklift truck business, we will focus efforts to broaden the range of new FE series electric models and FH series of hydrostatic transmission-drive engine models.

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Value of chain (conceptual) of construction equipment

In an effort to solidly establish the DANTOTSU No. 1 market position in Asia, we will establish a training center in Thailand and a development center in Indonesia, where we will make more effort to develop human resources of our distributors and develop local needs-tailored products, respectively.

We will also focus our efforts on the aggregate and cement industries, where we will be able to capitalize on our solutions know-how gained in the construction and mining industries. By helping customers solve their jobsite problems, we will enhance our position in these industries.

In the forest machine business, in addition to improving our product and attachment offerings, we will provide forestry jobsite solutions, which include the establishment and growth of forests in addition to felling.

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Our forest machine in operation in Brazil