QI0028. I-E Oct. 2019 200 IP

2951-4 Ishikawa-machi, Hachioji-shi, Tokyo 192-8522, JapanTEL: +81-42-642-3111 (Representative)FAX: +81-42-644-5815http://www.nireco.com

NIRECO CORPORATION

Nireco Corporation's corporate philosophy is "Technology and Trust". Since our founding in 1950, we have continued to support our customers' productive operations as a manufacturer of production line controlling, measuring and inspecting devices. We have got to where we are today thanks to the support of our customers, business partners, stockholders and all our other stakeholders. To all these people we are truly grateful. With the globalization of economies in recent years, the opportunities for our products to face �erce competition have increased. In this kind of market environment, we are making good use of the technologies that we have built up over our long history, and are pursuing new technologies. By continuing to boldly challenge various projects we are building up a strong position as a leading manufacturer of production line controlling, measuring and inspecting devices. By continuing to provide advanced technologies and by meeting the needs of our customers, we are gaining trust and impressing and pleasing the people who use the products that we produce. This is what we as Nireco Corporation want to achieve. We trust that we will continue to receive your further support and guidance well into the future.

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Technology and trust have been Nireco’s invariable principlessince its foundation

Introduction of NirecoProcess ControlWeb ControlInspection SystemsR & DCompany Outline

President and CEO

Toshiharu Kubota

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Pioneer of Automatic Control SystemThe history of Nireco can be traced back to the limited

partnership company Askania, which was established

by Askania Werke A.G. (Germany) in 1931. In 1936,

Askania was reorganized to become a publicly traded

company, and this was when the company started the

domestic production of hydraulic jet pipe type

automatic control systems. At that time, Japan relied

solely on imports for these systems. The company

was later dissolved, but ex-Askania employees played

the central role in taking over the operation and

established a new company, Nippon Regulator, in

1950. Ex-Askania business partners participated in the

new company through capital investment. This was

where Nireco's history started.

Since its early days, Nireco has been developing

process automatic control systems. Our customers in

the manufacturing �eld had a number of demands,

encouraged by the advance and growth of industrial

products such as steel and chemical products. In an

e�ort to satisfy their needs, Nireco has developed

new products by combining the technologies the

company had cultivated and those developed in

foreign countries, which contributed to the industry’s

growth and prosperity. Nireco started its business

with process control, gradually added new business

segments based on the technology and know-how

the company has developed, including web control

and inspection systems, and transformed itself into

the present structure supported by the three core

businesses.

Characteristics and Strengths of Nireco Our products are characterized by three keywords:

"Control," "Measurement," and "Inspection." By having

our products mounted on each production line that

satisfy the line’s characteristics (customized where

necessary), we help our customers eliminate waste

generated in the production process and improve

product quality. In addition to our product competi-

tiveness, we have the advantages of continuous, full

follow-up services for the products at work and a

proven track record of such services over years.

Introduction of Nireco

34% 41% 22%

ProcessControl

ProcessControl

WebControl

InspectionSystems

WebControl Inspection

Systems

Segments and Markets

Markets

Segments

*Proportion of sales by business segment*Another 3% by business not classi�ed in these 3 segments

Steel, Nonferrous Metal

Printing, Paper

Chemical, Textile

Electrical, Precision Equipment

Agriculture

Food

Introduction of NirecoProcess Control

Web Control

Inspection Systems

R & DCom

pany OutlineAutomatic control device made by Askania at the time

Our process control includes products mainly for production

processes of steel and nonferrous metal industries.

Originally, our process control started from process

control equipment used to adjust operating conditions

such as temperature and pressure settings at steel

manufacturing processes using hydraulic power. This has

been our core business since the beginning of the

company. Currently, Nireco’s wide range of products is

applied at various steel-related production processes to

support product quality and production e�ciency.

Not only products but also follow-up services such as

maintenance and checking as well as parts and consumable

replacements are also important for supporting production

of steel products. Our process control has a strong

advantage with reliability and a solid service structure

backed by our long-standing track record in supporting

continuous production activities.

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Process Control

Introduction of NirecoProcess Control

Web Control

Inspection Systems

R & DCom

pany Outline

Steel productproduction processes

Raw materials

Iron ore / Lime stone / Coal

Marking

Surface Treatment

Process control

Rolling Mill

Iron and Steel making

Steel Products

Introduction of the Process Control products

Electro-hydraulic Actuator Eddy Current Level Meter

These are systems that used to adjust pressure, �ow and temperature by controlling valves with hydraulic power at “pig iron manufacturing” and “steel manufacturing” processes where iron ore is melted for processing.

These are systems that used to measure the position of a bath surface (i.e., surface of molten steel) at a “continuous casting” process where molten steel is poured into a cast.

Thickness Measuring Systems Edge Position Control Systems (for in-furnace use)

Edge Position Control Systems (for other than in-furnace use) Automatic Marking Systems

These are non-contact, online systems that measure strip thicknesses with a high degree of accuracy. (Available only in Japan)

These are non-contact systems that detect the centerline of strip traveling inside the furnace and prevent it from meandering.

These are non-contact systems that detect the centerline of strip traveling on the production line, prevent it from meandering, and adjust the coil winding and unwinding positions.

These are systems that mark characters on the surface of steel products. Paint marking or laser marking can be selected depending on the product's shape and process. Robotic marking at high temperatures and hand-held marking are available.

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Web Control

Introduction of NirecoProcess Control

Web Control

Inspection Systems

R & DCom

pany Outline

Introduction of the Web Control products

In our industry, web refers to a “thin object” in a sheet or

rolled form. In our daily life, typical examples include

paper used for newspapers or magazines, resin sheets

used for liquid crystal panels on personal computers or

smart phones and food packaging �lms. Web control

methods are used to control materials in production

processes of “thin objects” to prevent shifting, sagging or

creasing.

Speci�c controls required in production are mainly “align-

ing”, “pulling” and “adjusting”. These control methods

have been developed through steel sheet control in our

process control. We have added “inspecting” methods

developed through our inspection systems. And �nally,

we have established ourselves as a total web control

manufacturer that can meet customers’ various needs.

Edge Position Control Systems Tension Control Systems

These are systems that prevent creasing, sagging and breaking by evenly aligning the edges of materials at web rolling and let-o� processes.

These are systems that prevent sagging and breaking by evenly applying tension at web rolling and let-o� processes.

Automatic Register Control Systems Print-to-cut Register Control Systems

These are systems that maintain clear printing by instantly detecting printing displacement and adjusting positions in all directions.

These are control systems that can be used for a variety of printing techniques, such as cutting position control, face-to-back alignment, and pre-print overlapping printing, on a number of printing machines ranging from food packing machines to o�set rotary press machines.

Printing Quality Inspection Systems Gluing Control Systems

These are systems that detect printing blots on a food package or printing surface and automatically identify fault sections.

These are systems that control and monitor for automatic gluing processes of business forms such as slips, and cans and paper making.

Pull

Adjust

Inspect

Aline

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Inspection Systems

Introduction of NirecoProcess Control

Web Control

Inspection Systems

R & DCom

pany Outline

Introduction of the Inspection Systems products

Process to commercialization

Products

Undetectableby humansAccuracy Manpower

shortage

Customer's problems

Sensingtechnology

Systemtechnology

Softwaretechnology

Hardwaretechnology

Opticstechnology

Our inspection systems utilize core technologies such

as sensing and optics technologies and provides

high-speed, high sensitivity equipment used to identi-

fy small scratches or blots that are di�cult to detect

through human eyes.

Originally, these technologies were developed for

steel manufacturers to arithmetically process images

of steel surfaces for measurement of grain sizes and to

accurately measure halftone dots on printed matter.

We have been building our technologies in basic

research and product inspecting �elds at universities

and laboratories for di�erent products such as medi-

cal, biological and industrial use for years. Currently,

we o�er a wide range of standard products used to

test various objects including high-performance �lms

and agricultural products to continuously meet cus-

tomer requirements.

De�ect Inspection System for Plain Surfaces Pouch Packaging Inspection Systems

Near-infrared Ray Analysis Systems Image Processing and Analysis Systems

These are systems that inspect continuously and quickly moving plain surfaces of high-performance �lm, paper and metal for scratches and blots. Inspection equipment systems for electrode sheets used for next-generation batteries such as secondary batteries and fuel cells that require more sophisticated functions are also available.

These are inspection systems that can detect not only scratches and stains on packing materials for food, chemicals, and other contents, but also foreign material accidentally mixed inside.

These analyzers that utilize near-infrared ray can be applied to measurement and inspection in various �elds, such as food, medicine and chemistry, by changing their built-in software.(Available only in Japan)

These are high accuracy image acquisition and analysis systems that can be used for a variety of applications ranging from research �elds to production lines.(Available only in Japan)

Fruit and Vegetable Quality Analysis Systems (internal quality) Fruit and Vegetable Quality Analysis Systems (external quality)

These are non-destructive inspection systems that can instantly discern the quality of agricultural products based on their internal state (e.g., sugar content, acid level).

These are non-destructive inspection systems that can instantly discern the quality of agricultural products based on their external state (e.g., color, size, scratch, decay).

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R & D

Introduction of NirecoProcess Control

Web Control

InspectionSystems

R & DCom

pany Outline

Our products are born from novelimagination and an integrated system for production and sales.Many of Nireco products are mounted on our cus-

tomers' production lines. A computer program

designed to the speci�cations of each production

line operates semi-custom-made products. Nireco

o�ers solutions for various customer requirements

such as downsizing, light-weighting, and produc-

tion e�ciency improvements.

Nireco has a system that can o�er product develop-

ment to quickly respond to customer needs and

required state-of-the-art technologies through

close cooperation among R & D members, local

sales representatives, and sales agents. "Our sta� in

any section are agile in responding to their custom-

ers’ comments" is Nireco's strength that enables the

company, which is not just a maker but also a "ser-

vice provider," to supply many kinds of products

(about 1,000 items) in small-lot quantities.

At the same time, another strength of Nireco is

that the same R & D representative is involved in

the entire R & D process ranging from product

planning, design, testing, to onsite adjustments on

the customer's production lines. Such experience

as this makes our individual R & D representatives

feel a sense of accomplishment, which motivates

their commitment to the next R & D themes.

Company Outline History

1931

1936

1945

1950

1951

1956

1965

1969

1971

1972

1979

1984

1989

1996

1998

2000

2003

2004

2012

2013

2014

2015

2017

2018

2019

NIRECO CORPORATIONNovember 19503.072 billion yenTSE JASDAQ (Standard)2951-4 Ishikawa-machi, Hachioji-shi, Tokyo 192-8522, Japan TEL: +81-42-642-3111 (Representative)FAX: +81-42-644-5815URL : http://www.nireco.jp (Japanese) http://www.nireco.com (English)355 (Consolidated basis)

Process controlWeb controlInspection systems

President and CEO 　　 Toshiharu KubotaDirector and Executive O�cer Kouji HazamaDirector and Executive O�cer Makoto MiuraDirector, Audit & Supervisory Committee Member Atsunori Nakano*1 Director, Audit & Supervisory Committee Member Mitsuo Hashimoto*1

Director, Audit & Supervisory Committee Member Junichi Sato*1

Hachioji O�ce (Head O�ce)

Osaka O�ce

Tokyo O�ce

Kyushu O�ce

Nireco Automatic Controller(Shanghai) Co., Ltd.

Nireco Taiwan Corporation

Nireco Process Korea Co., Ltd

Nireco International GmbH

Tokyo, JapanTEL: +81-42-642-3111 FAX: +81-42-644-5815

Osaka, JapanTEL: +81-6-6190-5550 FAX: +81-6-6190-5551

Tokyo, JapanTEL: +81-3-5534-0585(Sales) +81-3-3522-2020(Services) FAX: +81-3-3522-2002

Fukuoka, JapanTEL: +81-93-953-8631(Sales) +81-93-953-8672(Services) FAX: +81-93-953-8632(Sales) +81-93-953-8673(Services)

Room 101, First Floor，Building 7, Erea 8, Lane 449Nujiangbei Rd, Putuo District, Shanghai 200333 China

No.2, Ln.12, Qingle St., Tucheng Dist., New Taipei City236, Taiwan

#920-37, Cheongang-Ro, Gangdong-Myeon, Gyeongju-Si, Gyeongbok,780-912 Korea

Deilbachtal 199 45257 Essen Germany

Company nameEstablishedCapitalizationStockHead o�ce

No. of employees

Business sectors

Our executives

Our o�ce

Our group

*1 Means Outside Director as provided for in Article 2-15 of the Company Act.

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Nippon Regulator Co., Ltd. established in Chuo-ku, Tokyo

Meguro plant begins production in Shinagawa-ku, Tokyo

Rokugo Plant begins production in Ota-ku, Tokyo

Hachioji O�ce opens in Hachioji-shi, Tokyo

Meguro Plant operations transferred to the Hachioji O�ce site

Subsidiary Nireco Service Co., Ltd (later Nireco Keiso Co., Ltd.) established

Head O�ce relocated to Ishikawa-machi, Hachioji-shi, Tokyo

Head O�ce relocated to Minato-ku, Tokyo

Rokugo Plant operations transferred to the Hachioji O�ce siteCompany name changed to Nireco Corporation

Registered on the OTC share market with the Japan Securities Dealers Association (currently JASDAQ)

Construction of the research wing of the Hachioji O�ce completed

Acquired Nireco Taiwan Corporation following application for capital increase ISO9001certi�cation for all web controllers gained 50th anniversary since the Company's founding

Nireco Automatic Controller (Shanghai) Co., Ltd. established in Shanghai, China

Terminated registration as an OTC company and listed stocks on the JASDAQ Securities Exchange

Closed our Kyobashi O�ce and merged it with our Hachioji O�ce

With the merging of the Tokyo Stock Exchange and the Osaka Securities Exchange, we became listed on the Tokyo Stock Exchange JASDAQ (standard)Merged with and absorbed subsidiary Nireco Keiso Co., Ltd.

Nireco Process Korea Co.,Ltd. established in Korea.

Acquired Megaopt Co.,Ltd

Nireco Process Korea Co., Ltd. has acquired land and building, and established local production system.

Completed the rebuilding, seismic strengthening and the new construction of ancillary facilities of our Hachioji o�ce in order to accommodate to aging.

German enterprise Askania Werke AG established its Japanese corporation Askania

Askania reorganized to become a joint-stock corporation

Company dissolution

Nireco International GmbH established in Germany.