Securities code: 6440

To Our Shareholders

Business Report for the First Half of the 98th Business Term(From January 1, 2012 through June 30, 2012)

JUKI CORPORATION

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● Net sales decreased by 11.0% year on year, mainly due to the effect of stagnant demand in the Chinese and European markets

● Operating, ordinary and net income all went into the red

Major Points of Business Performance

■ Net sales

(100 million yen)

FY20101st halfFY2010(Apr-Sep)

FY2011*(nine months)

1st halfFY2012 (Jan-Jun)

1st halfFY2011 (Apr-Sep)

896

653

0

200

400

600

800

1,000

434 435

1st half Full-year

(Reference)

385

(12)

25

6 7 7

(15)

0

15

30(100 million yen)

FY20101st halfFY2010(Apr-Sep)

FY2011*(nine months)

1st halfFY2012 (Jan-Jun)

1st halfFY2011 (Apr-Sep)

1st half Full-year

(Reference)■ Net income

8

2

86

(7)

(10)

(5)

0

5

10(100 million yen)

FY20101st halfFY2010(Apr-Sep)

FY2011*(nine months)

1st halfFY2012 (Jan-Jun)

1st halfFY2011 (Apr-Sep)

1st half Full-year

(Reference)■ Operating income

■ Total assets ■ Net assets ● Equity ratio

(%)

1,066

115 124

10.6% 10.6% 9.4%

0

200

400

600

800

1,000

1,200

0

10

20

30

40

FY2010(as of March 31,

2011)

FY2011(as of December 31,

2011)

1st half FY2012(as of June 30,

2012)

1,1431,098

105

(100 million yen)

(12)

12

3

1412

(20)

(10)

0

10

20(100 million yen)

FY20101st halfFY2010(Apr-Sep)

FY2011*(nine months)

1st halfFY2012 (Jan-Jun)

1st halfFY2011 (Apr-Sep)

1st half Full-year

(Reference)■ Ordinary income

(Yen)

0

1

2

3

4

3 3

FY2010 FY2011 FY2012(1st half)

■ Cash dividends per share

We decidednot to pay an

interimdividend

for FY2012

(Note) In this Business Report, when expressing amounts in units of 100 million yen, the amounts are rounded to the nearest 100 million yen.

* Effective from FY2011, the Company changed its fiscal year-end from March 31 to December 31 of every year in order to increase the efficiency of JUKI Group’s execution of business, such as

budgeting and performance management on a consolidated basis. Accordingly, the period comprising FY2011 was a transitional period of nine months from April 1, 2011 to December 31, 2011.

Net sales38.5 billion yen (down by 5.0 billion yen year on year)

Operating income-0.7 billion yen (down by 1.3 billion yen year on year)

Ordinary income-1.2 billion yen (down by 2.4 billion yen year on year)

Net income-1.2 billion yen (down by 1.9 billion yen year on year)

1 Business Report for the First Half of the 98th Business Term

Financial Highlights

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We would like to express our appreciation for your

ongoing support of our business activities.

In presenting our business results for the first half

of the 98th business term (from January 1, 2012

through June 30, 2012), I would like to take the

opportunity to convey a few words to our

shareholders.

In the first half under review, consolidated net sales

were 38,492 million yen, mainly due to the effect of

stagnant demand particularly in the Chinese and

European markets. Although we carried out cost

reductions aggressively by such means as promoting

the procurement of parts from overseas,

consolidated ordinary income went into the red by

1,226 million yen because the impact from the

decline in net sales was considerable. Consolidated

net income went into the red by 1,199 million yen,

despite the recording of extraordinary income

including proceeds from the sale of real estate to a

joint venture.

Regrettably, in view of these results and other

factors, we decided not to pay an interim dividend

for FY2012. We humbly ask for your understanding

on this matter.

In the second half we will work to swiftly improve

our business performance by actively winning new

customers in untapped markets and markets where

we are yet to gain a presence, particularly in

emerging countries, while also pressing ahead with

launches of new products, promotion of further cost

reductions and expansion of our business fields.

In closing, we ask for the ongoing support and

guidance of our shareholders.

Akira KiyoharaPresident

2Business Report for the First Half of the 98th Business Term

To Our Shareholders

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Three Key Initiatives

Lockstitch with thread trimmerFor woven fabric: Suits, shirts, etc.

Use

Jan-Jun

1st half FY2012 2nd half FY2012

Jul-Sep Oct-Dec

Household

Strategic launches of new sewing machine products Concentrated in 2nd half

1 Winning new customersThoroughly promote solution sales in untapped markets and markets where JUKI is yet to gain a presence to increase new customers

2 Launching new productsDevelop new products that we can clearly differentiate from our competition and launch them to market in a timely manner

3 Promoting further cost reductionsSpeed up total cost reductions (material costs, processing costs, indirect costs, etc.) and deploy cost reduction projects by product

Five Management Policies

■Strengthening of sales and cost reductions

■Expansion of business fields

■Promotion of a global production strategy

■Business operation innovation at the Development Center

■Business operation innovation at the administrative departments

1

2

3

4

5

6

7

Example: 7 MEB-3810 Series Computer-controlled, eyelet

buttonholing machine (for jeans and cotton pants)

8

Launch completed

Launch completed9

10

11

12

13

PICK UP

Knitwear machineryFor knitted fabric: T-shirts, sportswear, etc.

Use

Non-apparelAutomobiles, shoes, etc.

Use

Specialty/AutomaticSewing suit pockets, buttons, etc.

Use

(Sales contribution: 3.4 billion yen)

● Launch of 13 models 1 to 13

3 Business Report for the First Half of the 98th Business Term

Launch completed

Management Policies and Key Initiatives for 2nd Half FY2012

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Key initiatives for the 2nd half in the Sewing Machinery Business

Prevail in competition for winning new customers

Thorough promotion of solution sales that respond to customer needs

1 Thorough promotion of sales approaches to untapped markets

● Winning share in growing markets: Cambodia, Myanmar, etc. as well as Bangladesh, Vietnam and Indonesia

● Strengthening of sales operations in entry markets: inland China, India, Russia, Central and South America, etc.

2 Thorough promotion of sales approaches to markets where JUKI is yet to gain a presence

● Increase market share in non-apparel field and knitwear machinery

3 Strategic launches of new products ● Launches of new products in line with market

strategy (13 models across all model lines)

4 Strengthening efforts towards development projects for major users

5 Winning custom from global companies that shift production across borders

● Following up shifts in sewing factories to Southeast Asia, etc.

1st half FY2012

2nd half FY2012

■ China 32%■ Asia 38%■ Japan 9%■ Europe 12%■ Americas 9%

■ China 32%■ Asia 44%■ Japan 5%■ Europe 10%■ Americas 9%

■ Woven 79%

■ Non-apparel, knitwear 21%

■ Woven 76%

■ Non-apparel, knitwear 24%

1st half FY2012

2nd half FY2012

Thoroughly promote sales approaches to untapped markets and markets where JUKI is yet to gain a presence, and expand sales in Asia[Ratio of sales (by region: industrial sewing machines (excluding parts, etc.))]

Focus efforts on expanding sales in non-apparel field and knitwear machinery[Ratio of sales (by market: industrial sewing machines (excluding parts, etc.))]

Sewing Machinery Business

In the first half of FY2012, consolidated net sales of the Sewing Machinery Business as a whole were 25,262 million yen. This reflected stagnant capital investment demand in China primarily due to relocation of production bases and decreased demand in other regions, mainly due to the impact of the debt crisis in Europe. Ordinary income went into the red by 615 million yen.

4Business Report for the First Half of the 98th Business Term

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Key initiatives for the 2nd half in the Electronic Assembly Systems Business

In the first half of FY2012, consolidated net sales of the Electronic Assembly Systems Business as a whole were 9,704 million yen due to sluggish sales mainly in China and Europe, despite a sales increase in Asian regions. Ordinary income went into the red by 275 million yen.

Speed up acquisition of new customers

1 Winning over major customers ● Boost share in high-speed

SMT market

Expansion of sales

through high-speed

electric production line

proposals

● Expansion of sales through global sales operations

(1) Winning over major Japanese, Taiwanese and

Chinese companies

(2) Follow up expansion of global companies to

South America, Eastern Europe, etc.

● Individual area strategies: specify important areas

such as Thailand, Indonesia, Korea, India, and South

America, and further strengthen sales operations

2 Winning over customers in local areas ● Strengthen activities through use of agencies

3 Expanding business fields ● Respond to customer laborsaving needs at factories

■ China 44%■ Asia 14%■ Japan 17%■ Europe 10%■ Americas 15%

■ China 51%■ Asia 9%■ Japan 17%■ Europe 12%■ Americas 11%

1st half FY2012

2nd half FY2012

1st half FY2012

2nd half FY2012

■ High-speed SMT 19%■ Mid-speed SMT 52%■ Entry-level model 3%■ Growing business fields 1%■ Other 25%

■ High-speed SMT 21%■ Mid-speed SMT 42%■ Entry-level model 6%■ Growing business fields 5%■ Other 26%

Proactively develop major customers and further expand sales in China[Ratio of sales (by region)]

Focus efforts on expanding sales in high-speed SMT and growing business fields[Ratio of sales (by market)]

Electronic Assembly Systems Business

High-speed electric production lineCombined FX-3R and KE-3020V/VR production line

5 Business Report for the First Half of the 98th Business Term

Management Policies and Key Initiatives for 2nd Half FY2012

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■Corporate Profile

Trade name JUKI CORPORATION

Founded on December 15, 1938

Paid-in capital 15,950.26 million yen

Head office 2-11-1, Tsurumaki, Tama-shi, Tokyo

Fiscal year-end DecemberBusiness items Industrial sewing machines, SMT systems,

household sewing machines, etc.Number of employees 6,551 (on a consolidated basis)Number of consolidated subsidiaries

31

■Stock Information

●Total number of authorized shares ......400,000,000 shares

●Total number of issued shares .............129,370,899 shares

●Total number of shareholders .................................. 15,538

■Stock Distribution Status by Owner Type

Financial institutions25.85%(33,449,000 shares)

Other domesticlegal entities

2.99%(3,878,000 shares)

Securities companies4.37%(5,659,000 shares)

Individuals,others

57.37%(74,231,000 shares)

Treasury stock0.11%

(152,000 shares)

Foreign legal entities9.27%(11,999,000 shares) Total number of

issued shares129,370,899 shares

■Major Shareholders

Shareholder name Number of shares(shares)

Shareholding ratio (%)

Mizuho Bank, Ltd. 4,690,320 3.62

Nippon Life Insurance Company 4,306,968 3.33

Asahi Mutual Life Insurance Company 3,556,000 2.75

The Dai-ichi Life Insurance Company, Limited 2,558,000 1.97

Meiji Yasuda Life Insurance Company 2,300,000 1.77

(Note) The shareholding ratio is calculated by deducting treasury shares (152,890 shares).

Item FY2011as of December 31, 2011

1st half FY2012as of June 30, 2012

Assets

Current assets 73,504 70,249

Noncurrent assets 40,759 39,584

Total assets 114,263 109,834

Liabilities

Current liabilities 67,596 68,280

Noncurrent liabilities 34,305 31,008

Total liabilities 101,901 99,289

Net assets

Shareholders’ equity 19,538 17,723

Accumulated other comprehensive income (7,436) (7,437)

Minority interests 260 259

Total net assets 12,361 10,545

Total liabilities and net assets 114,263 109,834

Consolidated Balance Sheets (Million yen)

Consolidated Statements of Income (Million yen)

Item1st half FY2011

April 1, 2011 to September 30, 2011

1st half FY2012January 1, 2012 to June 30, 2012

Net sales 43,470 38,492

Cost of sales 31,985 29,021

Gross profit 11,484 9,470

Selling, general and administrative expenses 10,893 10,133

Operating income (loss) 591 (663)

Non-operating income 1,493 388

Non-operating expenses 872 951

Ordinary income (loss) 1,211 (1,226)

Extraordinary income 392 431

Extraordinary loss 545 33

Income (loss) before income taxes and minority interests 1,058 (829)

Income taxes 334 373

Income (loss) before minority interests 724 (1,202)

Minority interests in income (loss) 0 (2)

Net income (loss) 724 (1,199)

6Business Report for the First Half of the 98th Business Term

Corporate Information (as of June 30, 2012)Consolidated Financial Statements for the First Half (Summary)

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2-11-1, Tsurumaki, Tama-shi, Tokyo 206-8551, Japan Tel: +81-42-357-2211

Information for Shareholders

Business year January 1 to December 31Ordinary General Meeting of Shareholders

March

Record date for the Ordinary General Meeting of Shareholders

December 31

Unit stock 1,000 sharesMethod of public notice

We will post the public notice electronically on our website (http://www.juki.co.jp); provided, however, that in the case where an electronic public notice is impracticable due to an accident or any other unavoidable reason, the same public notice of the Company may be given in the Nihon Keizai Shimbun.

Listed stock exchange Tokyo Stock Exchange, 1st section (securities code: 6440)Shareholder register manager

1-2-1, Yaesu, Chuo-ku, TokyoMizuho Trust & Banking Co., Ltd.

(Handling office) 1-2-1, Yaesu, Chuo-ku, TokyoHead Office Stock Transfer Agency Department,Mizuho Trust & Banking Co., Ltd.

Shareholders with an account at a securities company

Shareholders without an account at a securities company, etc.(shareholders using a special account)

Mailing address The securities company with which you trade

2-8-4, Izumi, Suginami-ku, Tokyo 168-8507Stock Transfer Agency Department, Mizuho Trust & Banking Co., Ltd.

Telephone number for inquiries

0120-288-324 (toll free; within Japan only)(Business hours: 9:00 – 17:00 excluding Saturdays, Sundays, and national holidays)

Handling offices for various procedures (changes in the shareholder’s address, changes in the way of receiving dividends for shareholders, etc.)

Mizuho Investors Securities Co., Ltd.Headquarters and branch offices“Planet Booths” for consultations with Mizuho Investors Securities in Mizuho Bank branch lobbies

Mizuho Trust & Banking Co., Ltd.Headquarters and branch offices

Offices for payment of dividends yet to be received

Headquarters and branch offices of Mizuho Trust & Banking Co., Ltd.Headquarters and branch offices of Mizuho Bank, Ltd.(Mizuho Investors Securities Co., Ltd. only acts as a forwarding office.)

Note To have statements of payment issued, please refer to the above-mentioned mailing address, telephone number for inquiries, and handling offices for various procedures for shareholders using a special account.

You may purchase or sell shares through a special account only if you additionally purchase shares less than one unit or sell such shares. You need to open an account at a securities company, etc. and carry out a book-entry transfer of your shares in the special account. If you intend to carry out procedures at Mizuho Investors Securities Co., Ltd. to make a request to purchase shares of less than one unit in order to make your holding into a whole unit of shares, you need to remit the relevant payment to the account designated by Mizuho Trust & Banking Co., Ltd., in advance.

Our Website

http://www.juki.co.jp

JUKI CORPORATION

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