Robotics Industry October 2017 - Macrosource Media · ROBOTICS INDUSTRY MARKET REPORT October 2017...

Executive Summary

Industry Overview pg 1 Introduction Market Scope

Market Trends pg 4Applications pg 9

Market Opportunities And Challenges pg 10

Large Players To Watch pg 11ABB Ltd (SWX: ABBN) Hangzhou Hikvision Digital Technology Co. Ltd (SZSE: 002415) Fanuc Corporation (TSE: 6954) Yaskawa Electric Corporation (TSE: 6506) Midea Group Co., Ltd (SZSE: 000333) Mitsubishi Electric Corporation (TSE: 6503) Omron Corporation (TSE: 6645) Denso Corporation (TSE: 6902) EPSON Robots (division of Seiko Epson Corporation (TSE: 6724) Lockheed Martin Corp (NYSE: LMT)

Mid-Sized Players To Watch pg 34Kawasaki Heavy Industries (TSE: 7012) iRobot Corporation (Nasdaq: IRBT) Hiwin Technologies Corp (TSEC: 2049) Nachi-Fujikoshi Corp (TSE: 6474) SIASUN Robot & Automation Co. Ltd (SZSE: 300024)

Small Players To Watch pg 44Universal Robotics Inc (private) Grey Orange Robotics (private) Staubli International AG (private) Aethon Inc (acquired by ST Engineering) Rethink Robotics (private)

Key References pg 49

TABLE OF CONTENTS October 2017

EXECUTIVE SUMMARY

Robots have been around for decades but it has only been recently that their adoption has picked up at a rapid pace. The first industrial robot was introduced in the US in 1961 and since then their usage has primarily been limited to the manufacturing sector, in particular the automotive and electronics industry. There has been very little non-industrial deployment to-date.

Technological improvements however are changing that quickly. Technology adoption is the single most important driver of growing robotics adoption. At the same time, the cost of robots has been declining while the functionality has been improving by leaps and bounds. With technology progressing in a non-linear fashion and with rapid progress in areas such as sensing, machine learning and artificial intelligence, the expansion of robotics into non-industrial sectors is bound to hasten.

In fact, there has been strong interest in services robots being used for personal tasks such as domestic work, home security and entertainment as well as for commercial use in various areas such as hospitality, logistics, medical, construction, transportation, and banking. The services robot market is larger in value than the industrial robots market and the growth rate is also pegged higher.

In the near term, the industrial sector will continue to offer growth opportunities. Over the medium-to-long term, technological innovation and modernization in the field of robotics will lead to more sophisticated, intelligent and smaller forms of robots, which should spur rapid growth in professional service robots. The sectors that stand to benefit the most from this include e-commerce, logistics, healthcare, defence, mining and agriculture.

While increasing penetration of robots will lead to short-term labour market dislocations, the long-term collective benefits of robotics adoption, notably higher productivity, better quality, safety and savings, should exceed the costs.

Senior Analyst Garvit Bhandari

Contact Details [email protected]

Published by Macrosource Media Pty Ltd

©Macrosource Media 2017

www.macrosourcemedia.com

ISSN: 2206-4052

ROBOTICS INDUSTRYMARKET REPORT

ROBOTICS INDUSTRY MARKET REPORT

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INDUSTRY OVERVIEW Introduction The first industrial robot was introduced by General Motors in 1961. Since then, robots have witnessed a steady increase in adoption particularly in the manufacturing sectors for tasks such as welding, painting, sorting among a few. Already robotic systems are playing an important role in a range of industries from the automotive, aerospace and electronics to food, recycling, logistics, and biotechnology sectors.

For example, Rio Tinto has deployed automated haul trucks and drilling machines at its mines in Pilbara, Australia, and as a result is experiencing 10-20% increases in productivity. Google has successfully used automation and machine learning to cut the amount of energy by 40% at its data centers.

However, cost remains a major deterrent to mass adoption of robots. But this is about to change as cost goes down owing to improvement in technology and we may witness a robotic revolution in the coming decades.

As robotic systems become smarter, faster and cheaper, their usage will expand beyond mundane and dangerous tasks to those requiring higher intelligence and capabilities. With the advent of artificial intelligence and machine learning it is becoming increasingly possible to give robots traits that mimic human ability to interact, manipulate, train and recognize objects. Few examples include ReThink Robotics Baxter robot and Amazon Robotics Kiva warehouse system which are taking on tasks that require higher degree of skill including picking and packaging, testing, inspecting products and assembling complex electric components.

The growth of the global installed base of robots is likely to accelerate going forward. It is likely to be supported by the three key factors: 1) technology, 2) demographics and 3) Chinese market growth.

Technology –Technological progress is probably the single most critical key driver of robotics adoption. With rapid improvement in technology, the cost of robots has been declining while the functionality has been improving by leaps and bounds. These twin factors have made it more feasible for firms both economically and functionally to increase the use of robots.

Demographics – As the world’s demographics keep getting older, there will be fewer and fewer people available for jobs. With fewer workers around, there will be a growing need for deploying robotic automation solutions as they offer one obvious way of addressing this problem.

China – China has been experiencing strong wage inflation as its makes rapid progress from a developing nation to a developed economy. The rising cost of labor has to an extent put pressure on China’s long held low-cost manufacturing advantage. An ideal way to address this problem will be increasing adoption of robotic automation. Indeed, significant steps have already been taken and China is set to become one of the largest consumers of robots worldwide.

In the near term, most notable growth opportunities will continue to be found in the industrial sector where robotic automation is already well established. Going forward, over the medium-to-long term, services is a space that offers tremendous opportunity for robots. The continuing advances in technology should enable more independent, more intelligent, more accurate and more “human like” forms of robots, which should trigger rapid growth in professional service robot segment.

Apart from the automotive and electronics sector which have been early adopters of robotics, many other industries are likely to benefit going forward. Some of the sectors that could benefit the most in the future are the e-commerce, healthcare, defense, mining and agriculture sectors.

In this report, we examine the growth potential for primarily industrial robots and service robots (both professional and personal).


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Market Scope

Global Robotics Market

The market for robotics continues to experience tremendous growth with worldwide spending on robots and related services projected to double by 2020, according to research firm IDC. The global robots and related services market stood at ~$91 billion in 2016 and is anticipated to grow at a CAGR of ~20% during 2016-2020 to reach a size of $188 billion. The growth is driven by technology improvements, declining costs and higher acceptance by the market.

The manufacturing sector remains the key driver for growth accounting for more than half of the 2016 spending and is expected to account for ~$110 billion by 2020. After manufacturing, the next three industries with the largest robotics spending in 2016 were Resource Industries ($8.0 billion), Consumer ($6.5 billion), and Healthcare ($4.5 billion).

On a geographic basis, the Asia-Pacific account for ~two thirds of the overall spending, while EMEA stood second with spending at ~$14.7 billion in 2016, followed by Americas at $12.9 billion. Going forward, Asia-Pacific will continue to be a key driver with robotic spending projected to double during 2016-2020. Within the Asia-Pacific, China is set to lead with its share of spending set to more than double from $24.6 billion in 2016 to ~$59.4 billion in 2020.

In 2017 the number of robot installations is estimated to increase by 21% in the Asia-Australia region. Robot supplies in the Americas could surge by 16% and in Europe by 8%.

In this note we mainly discuss two broad categories of the robotics market -1) Industrial Robots and 2) Service Robots.

Industrial Robots

Industrial Robots are widely adapted in the manufacturing sector and the trend is likely to continue as robots become more sophisticated and cheaper. The global market for industrial robots stood at $12.3 billion in 2016 and is projected to reach $33.8 billion by 2025. The worldwide estimated operational stock of industrial robots stood at ~1.8 million units in 2015 and is projected to grow to 3.0 million by 2020. The International Federation of Robotics expects global shipments of industrial robots to grow to 400,000 units, or roughly a 17% CAGR over the next three years. Between 2016 and 2019, the International Federation of Robotics estimates that more than 1.4 million new industrial robots will be installed in factories around the world.

On a geographic basis, the Asia-Pacific will lead the demand for new industrial robots accounting for more than 70% of the annual supply by 2019. China remains the largest market for industrial robots in 2016. By 2020, China could account for ~950,300 units of industrial robots, equating to ~50% of the total expected robots in Asia. Major EU countries mainly Germany, Italy, Spain, France and UK are likely to see slow but steady growth during the period (+5 to 10% per year till 2019).

Over the past five years, there has been a very visible acceleration in demand for industrial robots globally and we see the trend to continue. Growth is already under way. Factories are actually buying a lot more robots now than they have in previous years. In North America alone, there were 32% more robots bought in the first quarter of 2017 than at the same time last year.

Service Robots

A service robot is broadly divided into two categories: 1) Personal service robots: used by humans for personal and non-commercial tasks such as domestic work, home security, and entertainment, and 2) Professional service robots: are aimed for commercial use in various areas such as hospitality, logistics, medical, construction, transportation, and banking.

According to the International Federation of Robotics, the professional service robots market is projected to reach ~$23.1 billion by 2019, up from ~$4.6 billion in 2015. The total number of professional service robots sold in 2015 stood at 41,060 units, up 25% compared to 32,939 units in 2014. The market for personal service robots could reach $22.3 billion by 2019. In 2015, about 5.4 million service robots for personal and domestic use were sold, 16% more than in 2014.


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MARKET TRENDS Asia-Pacific to Lead Demand for Industrial Robots: China is Key The Asia-Pacific remains the most dominant region in terms of demand for industrial robots, accounting for more than 65% of the new supply in 2016. The region saw ~160,600 units sold in 2015 compared to just 50,100 units in Europe and 38,100 units in America. Amongst the top five countries which accounted for ~75% of global sales in 2015, three belonged to Asia (China, Japan and Korea). China was the largest with ~69,000 units of sales, South Korea was second with sales of 38,000 units, Japan third with 35,000 units followed by Germany (27,000 units) and Italy (6,700 units) at fourth and fifth place respectively.

In 2016, China’s market share in the global industrial robots stood at ~30%, compared to just 5% in 2005. China became the world’s largest industrial robots market in 2014. With sales of about 87,000 industrial robots in 2016, China came close to the total sales volume of Europe and the Americas combined (97,300 units). The total units grew at a CAGR of ~34% during 2010-2016 and are anticipated to show strong momentum with projected growth of ~25% CAGR during 2015-2019 to reach ~210,000 units by 2020.

The International Federation of Robotics expects the installed base of industrial robots in China to grow steadily at around 30% over the next three-year period and expects annual demand for industrial robots to increase on average by 25%. This would imply an additional 83,000 units of industrial robot demand in China in 2019 compared to 2016.

The total operational stock of industrial robot stood at ~340,000 units in China at the end of 2016 (~33% higher than 2015). IFR anticipates China to contribute ~55% of the incremental growth in overall industrial robot demand over the next three years. It is estimated that ~115,000 industrial robots will be sold in China in 2017 and the overall industrial robot market in China will reach ~$4.2 billion in 2017.

Exhibit 1: Region Wise Annual Supply of Industrial Robots - Asia to Lead

Source: World Robotics 2017


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Exhibit 2: By 2020 ~40% of Total Global Supply will go to China


Non-Autos Driving Market Demand

The auto sector was the driving force behind the increasing demand of industrial robots during the period 2010-2015. Robot sales to the auto sector increased at a CAGR of ~20% during 2010-2015. The sector consumed 97,500 units in 2015, representing 38% of the overall units sold.

Investments in new production capacities in the emerging markets as well as investments in production modernization in major car producing countries have caused the number of robot installations to rise. Globally, auto-related demand for industrial robots remains a medium to long term structural growth story. Robot shipments to China made up 25% of the global supply of industrial robots to the automotive industry in 2016. The market share of Chinese robot suppliers in the automotive industry is still on a rather low level but has increased from 10% to 13%.

Besides this, non-auto sectors have also been witnessing robust growth in the recent years, in particular the electronics, metal and machinery, rubber and plastics and food and beverage industry which witnessed an average annual growth rate during 2011-2016 of 19%, 15%, 9% and 12% respectively.

Robot shipments to the electrical/electronics industry were up 41% year-on-year in 2016 to 91,300 units, accounting for ~31% of overall sales. The growing demand for electronic products and the increasing trend towards automation were the primary factors for the boost in sales.

In 2016, sales to the metal industry fell slightly by 3% year-on-year to 28,700 units. Since 2010, robot sales to the metal industry has been on an uptrend.

The number of installation in the rubber and plastics industry has continuously increased since 2009 from about 5,800 units to 17,300 units in 2015. However, sales declines modestly by 8% year-on-year in 2016 to 16,000 units. The share of the total supply in 2016 was about 5%. Going forward, non-auto sector industries are likely to have higher growth potential and greater opportunities for market expansion.


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Exhibit 3: Worldwide Annual Supply of Robots by Industry Type


Low global density of robots presents attractive opportunity

Robot density remains low globally and as such presents huge opportunities for new installations. The average global robot density was about 74 industrial robots installed per 10,000 employees in the manufacturing industry in 2016. This compared to South Korea at 631 robots per 10,000 employees, Singapore at 488, Germany at 309 and Japan at 303. China, the largest market for industrial robots, had a density of just 68 robots per 10,000 employees, presenting huge potential for robot installations.

The Chinese Government wants to transform China into top ten most automated nations by 2020. The plan includes strengthening Chinese robot suppliers and further increasing their market shares in China and abroad. By 2020, China is targeting robot density to rise to 150 industrial robots per 10,000 employees.

The robot density in the general industry (all industries excluding automotive) is still comparatively low, offering high potential for new robot installations.

Strong demand in logistics and defense sector driving demand for professional service robots

The logistics sector is by far the largest consumer of professional service robots, accounting for ~50% of the total units sold. Robots are being heavily adopted in warehouses, sorting centers, and in last-mile delivery. ~175,000 new units are anticipated to be sold to the sector during 2016-2019. This represents ~53% of the total forecast units.

A total of 109,400 units are expected to be sold to the defense sector during 2016-2019. This represents ~33% of the total forecast.

Further, increases in the demand from urban households for domestic cleaning, home security, entertainment and leisure and surveillance are expected to support the service robotics market growth in the near future. As per International Federation of Robotics estimates, sales of all types of robots for domestic tasks (vacuum cleaning, lawn mowing, window cleaning and other types) is projected to reach 31 million units in the period 2016-2019, with an estimated value of $13.2 billion. Sales of robots used for entertainment and leisure is estimated at 11 million units during 2016-2019, with an estimated value of $9.1 billion.


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Exhibit 4: Personal Service Robot: Office Support Exhibit 5: Personal Service Robot: Cleaning

Source: Fujitsu Company data Source: Xiaomi Company data Exhibit 6: Professional Service Robot: Security Exhibit 7: Professional Service Robot: Banking

Source: New Fang Tech Company data Source: Aldebaran Robotics Exhibit 8: Service robots: Industry Wise Deployment

Source: International Federation of Robotics


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Exhibit 9: Personal Service Robots Market

Source: International Federation of Robotics


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APPLICATIONS As robotic systems become smarter, faster and cheaper, their usage will expand beyond the traditional manufacturing sector. Some of the other prominent sectors that are expected to see heavy use and applications of robotic systems include e-commerce, logistics, defense and healthcare. Manufacturing: This sector by far remains the largest user of robotic systems. Robots are being increasingly used in the manufacturing sector to lower cost, increase productivity and competitiveness. Traditionally automotive sector has been the largest consumer of robotic systems but with increasing sophistication and declining cost robots are witnessing rapid adoption in many other industries such as food and beverage, consumer goods, pharmaceuticals, metals and many others.

Advances in technology and artificial intelligence are enabling greater computing power and autonomy in making decisions without human intervention. As such robots are moving from typical applications of welding, painting and assembly to more sophisticated tasks such as packaging and labelling, palletizing, product inspection, and testing.

E-commerce: E-commerce offers tremendous growth opportunity for professional service robots. With consumers shifting to online from traditional brick and mortar stores, the sales from online medium has exploded. In order to keep the customers’ experience smooth, many of the leading players have been investing huge sums of money to make their supply chains leaner and more efficient. This includes utilizing robotic automation in their warehousing facilities.

Amazon has been an early adopter of robotics. In 2012, it acquired Kiva Systems, a robotics company that makes hardware and software for material handling and warehouse automation. Since then Amazon has been investing heavily in automating its warehouses. The adoption of advanced robotics systems helps Amazon to drive efficiency in its supply chain, thereby gaining more advantage over traditional retailers.

Healthcare: Professional service robots have great potential in the healthcare field. These include robot surgical assistants, robotic devices for disabled as well as roving robots in the emergency room. The adoption of robots could lower the cost of medical care in many instances. In the field of surgery, for example, robots in combination with the latest imaging technology have the potential to conduct operations more accurately and at lower cost. For disabled people, robotic devices can be immense help in doing normal tasks and improving the quality of life.

Defense: Robotic systems have tremendous potential to serve the defense sector. The robots can work in difficult conditions such as elevated temperature and pressure, difficult terrains and war situations. A good example of this is the thousands of the unmanned tele-operated ground vehicles that have been used extensively in Iraq and Afghanistan in order to successfully defuse explosives. More recently, the unmanned aerial drone program of the US army has seen tremendous success in places like Pakistan and Yemen. The robots can successfully complete a task without errors and delay while minimizing the risk to human life. Already significant military investment in these types of technologies is being undertaken and is very likely to grow more in the future.

Mining – Mining is a challenging sector owing to environmental as well as worker safety risks. With, output declining in many of the mines across the world, it is becoming increasingly difficult to keep the operations economically viable unless costs are reduced dramatically. In this context, professional service robots can be utilized. They can boost extraction intensity, lower the cost and also there are less safety concerns.

For example, Rio Tinto has been aggressively pushing for the use of robotic automations at its mines. It has started its “Mine of the Future Programme” that seeks to automate majority of the mining operations. The operations will be monitored remotely via a centralized location.

Logistics: The robotics market serving the logistics and transportation sector is experiencing rapid growth. Currently majority of warehouses are manually operated with little or no automation. According to Robotics Industry Association, the logistics robotic market clocked a revenue of $1.9 billion in 2016. By 2021, the logistics robotic market is projected to reach $22.4 billion. The robot unit shipments are anticipated to grow from 40,000 to 620,000 annually during the same period. The robots are used for container loading and unloading, packaging and picking of items. They help companies increase their productivity, accuracy and efficiency


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MARKET OPPORTUNITIES AND CHALLENGES Robots present a plethora of opportunities and advantages for businesses as well as consumers. Businesses are bound to benefit from increased productivity, savings and safety. For consumers, personal service robots can greatly reduce work load (such as household tasks) and improve the quality of life. Going forward, the development of small and user-friendly robots would create opportunities for the growth in the market.

Despite the strong momentum surrounding the adoption of robotic technology, there still exists a number of challenges. The primary challenges revolve around cost, expertise, lack of need and understanding. According to a survey by PwC, 41% of US companies do not use and robotic technology and the primary reason limiting the investment remains cost effectiveness and a lack of need.

Cost remains high

The cost of implementing a robotic system still remains high and is a major concern. If one looks at the total cost of robotic system (including software, controller, technical help, set-up and work cell, etc.), it amounts to three times the cost of robot itself. With more technological advancement, the cost is likely to get pushed down going forward making it more feasible for mass adoption.

Lack of expertise

The complexity of traditional robotics systems requires high levels of skill and expertise to operate and maintain. This is challenging particularly for small and medium enterprises which often lack the talent to handle such tasks. SMEs face the challenge of attracting and retaining an expert who can reprogram the robot cell for new tasks and address technical issues as they arise.

Lack of need

For many businesses, especially SMEs, the batch size or production is too small to require any automation. The setting up of technology itself can be too time consuming. As such there remains reservations about using robotic systems.

Ease of usability

For robots to succeed, the devices need to be designed with usability and user interaction. The biggest pool of potential robotics users is made up of people who do not have an intimate understanding of the technology. Ease of use will be a key factor in the spread of automation not only among SMEs but also general consumers worldwide.


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LARGE PLAYERS TO WATCH ABB Ltd (SWX: ABBN) Headquarters: Zurich, Switzerland Address: Affolternstrasse 44, Zurich 8050, Switzerland Phone: +44-43-317-7111 Website: http://new.abb.com/ Company Overview ABB is one the world’s leading provider of robotics and industrial automation solutions. Its robotics business offers robots, controllers, software systems, as well as complete robot automation solutions. The company’s products are specifically used by tier 1 OEMs in the automotive sector as well as by others in the general industry.

General industry segments in which robotics solutions are used range from metal fabrication, foundry, plastics, food and beverage, chemicals and pharmaceuticals, and electronics. Typical robotic applications in general industry include welding, material handling, machine tending, painting, picking, packing, palletizing and small parts assembly automation. Robotics and Industrial Automation divisions accounted for 42% of revenues in 2Q17.

Key Executives: Ulrich Spiesshofer President, Chief Executive Officer Timo Ihamuotila Chief Financial Officer Jean-Christophe Deslarzes Chief Human Resource Officer Diane de Saint Victor General Counsel Sami Atiya President – Robotics and Motion division

Number of Employees: 132,000 Market Capitalization: CHF 50.74 billion (as of September 26, 2017) Investors Information: http://new.abb.com/investorrelations Email Notification for Company Results: No Latest Key Financial Data

(In US$ million) Fiscal Year Ending

December 31, 2015 December 31, 2016 Revenue 35,481 33,828

Operating Income 3,049 2,987 Net Income 2,055 2,034

Total Assets 41,356 39,499 Total Equity 14,988 13,897

Annual Reports Fiscal 2015: http://new.abb.com/docs/default-source/investor-center-docs/annual-report/annual-report-2015/abb-group-annual-report-2015-english.pdf Fiscal 2016: http://new.abb.com/docs/default-source/investor-center-docs/annual-report/annual-report-2016/abb-group-annual-report-2016-english.pdf Quarterly Financial Statements Fiscal 2017:

• First Quarter: http://cdn.news.e.abb.com/api/public/attachment/2017/4/20/1352/en-US/ABB-Q1-2017-financial-information.pdf


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• Second Quarter: http://cdn.news.e.abb.com/api/public/attachment/2017/7/20/1851/en-US/ABB-Q2-2017-financial-information.pdf

Fiscal 2016: • First Quarter: http://d2xkif65zmv3u5.cloudfront.net/attachment/2016/4/20/75/ABB-Q1-2016-financial-

information.pdf • Second Quarter: http://cdn.news.e.abb.com/attachment/2016/7/21/123/ABB-Q2-2016-financial-

information.pdf • Third Quarter: https://cdno.news.e.abb.com/api/public/attachment/2016/10/27/375/ABB-Q3-2016-financial-

information.pdf • Fourth Quarter: http://cdn.news.e.abb.com/api/public/attachment/2017/3/12/683/ABB-Q4-2016-financial-

information-restated.pdf Stock information Exhibit 10: LTM Price Performance vs. S&P 500

Source: Nasdaq Robotics Implementation

• Mett Pty Ltd Mett Pty Ltd, an Australian manufacturer, has been a user of ABB’s robotic solutions. Some 40 robots from ABB do everything from sawing and deburring to assembly work. The company invested in five ABB robot installations and has seen breakeven for most of the investment within 12 months. The robots provided consistency in terms of quality.

• US Injection Moulder Itech uses ABB’s 6-axis robot A robot nicknamed ‘Abby’ has been deployed by US injection moulder Itech. The company noted the ABB’s 6-axis IRB 4400 robot has been a tremendous success, recouping investment on the installation just 7.8 months. Normally, it takes two years to get breakeven.


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• Packaging solution for a large Pharma company A large Australian pharmaceutical company wanting to improve the speed & flexibility of its existing Blow Fill Seal line it turned towards ABBs FlexPicker. The robot packs sterile nebules into blister packs.


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Hangzhou Hikvision Digital Technology Co. Ltd (SZSE: 002415) Headquarters: Hangzhou, China Address: 555 Qianmo Road, Binjiang District, Hangzhou 310052, China Phone: +86-571-8807-5998 Website: http://www.hikvision.com/ Company Overview Hangzhou Hikvision Digital Technology Co., Ltd. is increasingly focusing on industrial robots that leverage its expertise in video surveillance products. The company is currently focusing on warehousing robots, transferring robots, sorting robots, parking robots and software platforms. The two flagship products include a warehousing robot ‘Crossroad’ and a smart parking robot.

Key Executives: Hu Yangzhong Chief Executive Officer, Executive Director, General Manager Jin Yan Chief Financial Officer, Deputy General Manager Huijuan Bi Deputy General Manager Changyang Cai Deputy General Manager Dingguo Cai Deputy General Manager Chen ZongNian Chairman Number of Employees: Approx. 18,000 Market Capitalization: CNY 288.40 billion (as of September 27, 2017) Investors Information: http://www.hikvision.com/en/InvestorRelations_825.html Email Notification for Company Results: No Latest Key Financial Data

(In CNY million) Fiscal Year Ending

December 31, 2015 December 31, 2016

Revenue 25,271 31,924 Operating Income 5,209 6,604

Net Income 5,869 7,422 Total Assets 30,316 41,339 Total Equity 19,298 24,487

Annual Reports Fiscal 2016: http://oversea-download.hikvision.com/uploadfile/Investment%20Relationship/Hikvision%202016%20Annual%20Report.pdf Fiscal 2015: http://oversea-download.hikvision.com/uploadfile/Investment%20Relationship/Hikvision%202015%20Annual%20Report.pdf Quarterly Financial Statements Fiscal 2017:

• First Quarter: http://oversea-download.hikvision.com/uploadfile/Investment%20Relationship/Hikvision%202017%20Q1%20Report.pdf

• Half Yearly: http://oversea-download.hikvision.com/uploadfile/Investment%20Relationship/Hikvision%202017%20Half%20Year%20Report.pdf


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Fiscal 2016:

• First Quarter: http://www.cninfo.com.cn/finalpage/2016-04-09/1202157225.PDF • Second Quarter: http://www.cninfo.com.cn/cninfo-

new/disclosure/szse_sme/bulletin_detail/true/1202499843?announceTime=2016-07-23 • Third Quarter: http://www.cninfo.com.cn/cninfo-

new/disclosure/szse_sme/bulletin_detail/true/1202750225?announceTime=2016-10-12 • Fourth Quarter: http://www.cninfo.com.cn/finalpage/2017-04-14/1203296056.PDF

Stock information Exhibit 11: LTM Price Performance vs. Hang Seng Index

Source: Marketwatch Key Products • Warehouse Robots: Hikvision has developed the warehouse robotic system “Crossroad” which consists of

logistics robots, a robot scheduling system (RCS), and an intelligent warehouse management system (iWMS). The logistics robot can clock a maximum operating speed of 1 meter per second, carry a maximum load of 500kg, comes with a collision avoidance system and is self-charging. The company has also released a package-sorting robot “Little Orange” which can be used in warehouses. The packages can be placed on top of these robots which are then automatically sorted and sent to their respective chutes. It would take workers five hours to sort the same number of parcels the robots sort in three hours. In addition, workers might make mistakes, handle parcels violently or become stressed and tired under high pressure.

• Smart Parking robots: Hikvision smart parking robots help to park safely in two minutes and enhance the overall parking experience. The robots possess an accuracy error below 5 mm, and each robot can lift, handle, rotate and lower a 2,500 kg vehicle.


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Fanuc Corporation (TSE: 6954) Headquarters: Yamanashi, Japan Address: Oshino-mura, Yamanashi Prefecture 401-0597, Japan Phone: +81-555-84-5555 Website: http://www.fanuc.co.jp/eindex.html Company Overview Headquartered in Yamanashi, Japan, Fanuc Corporation was founded in 1972. The company provides factory automation products worldwide. Fanuc is one of the largest makers of industrial robots in the world with robot sales of over $1.6 billion. Fanuc has a diversified portfolio and supplies a broad range of robots from arc welding robots to materials handling robots to painting robots.

The company has significant capital expenditure plans to expand its robot production facility at Ibaraki. Management has stated intentions to invest ~¥50 billion. It plans to double its monthly production capacity to 10,000 units per month by 2020 from 5,000 units currently. This would imply that the company will cater to approximately 30% of global demand for industrial robots (or ~44% of the incremental increased in global demand for industrial robots by 2018).

Fanuc’s business model is based upon taking advantage of the economies of scale. The company manufactures large quantities of standardized products at its production facilities allowing it to keep the costs low and maintain higher margins than its competitors.

Currently, the Americas account for the majority of Fanuc’s robot segment revenue (approximately 24% of total robot segment sales as of 1Q17). However, going forward, the company expects growth to be driven by emerging markets such as China.

Key Executives: Yoshiharu Inaba Chairman of the Board, Chief Executive Officer Kenji Yamaguchi President, Chief Operating Officer Yoshihiro Gonda Senior Executive Vice President, Chief Financial Officer Hiroyuki Uchida Senior Executive Vice President, Chief Technology Officer Kiyonori Inaba Senior Executive Vice President, General Manager of Robot Business Division

Number of Employees: 5,469 Market Capitalization: ¥4,400.47 billion (as of September 27, 2017) Investors Information: http://www.fanuc.co.jp/en/ir/index.html Email Notification for Company Results: No Latest Key Financial Data

(In ¥ billion) Fiscal Year Ending

March 31, 2016 March 31, 2017 Revenue 623.4 536.9

Operating Income 215.6 153.2 Net Income 159.7 127.6

Total Assets 1,512.9 1,564.8 Total Equity 1,344.2 1,381.8

Annual Reports Fiscal 2015: http://www.fanuc.co.jp/en/ir/annualreport/pdf/annualreport2015_e.pdf Fiscal 2016: http://www.fanuc.co.jp/en/ir/annualreport/pdf/annualreport2016_e.pdf


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Quarterly Financial Statements Fiscal 2017:

• First Quarter: http://www.fanuc.co.jp/en/ir/announce/pdf/financialresult201706_e.pdf Fiscal 2016:

• First Quarter: http://www.fanuc.co.jp/en/ir/announce/pdf/financialresult201606_e.pdf • Second Quarter: http://www.fanuc.co.jp/en/ir/announce/pdf/financialresult201609_e.pdf • Third Quarter: http://www.fanuc.co.jp/en/ir/announce/pdf/financialresult201612_e.pdf • Fourth Quarter: http://www.fanuc.co.jp/en/ir/announce/pdf/financialresult201703_e.pdf

Stock information Exhibit 12: LTM Price Performance vs. NIKKEI Index

Source: Marketwatch Key Products

• Learning Robot: Learning robot provides smooth and high-speed motion by suppressing robot vibration. This enhances robot productivity and the efficiency of a production line which contributes to reduction of overall production costs.

• Bin Picking Robot: The robots equipped with a vision sensor automates the picking process of randomly piled parts in a bin.

• Collaborative Robot: The collaborative robot immediately and safely stops when it comes in contact with a human operator, allowing for safe operation in the same workspace without safety fences. This provides production efficiency and cost savings.

• Force Sensor/ Deburring - Polishing: The Six-Axis Force Sensor, equipped on the robot wrist enables a contouring motion of the robot tool while maintaining a designated pushing force to the part.


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Yaskawa Electric Corporation (TSE: 6506) Headquarters: Kitakyushu, Japan Address: 2-1 Kurosakishiroishi Yahatanishi-ku, Kitakyushu Fukuoka, 806-0004, Japan Phone: +81-93-645-8801 Website: http://www.yaskawa.co.jp/en/ Company Overview YASKAWA Electric Corporation was founded in 1915 and is headquartered in Kitakyushu, Japan. YASKAWA’s major segments include motion control, robotics, system engineering, and others. Yaskawa is Japan’s second largest vendor of industrial robots. The company has a wide presence in the Americas, Europe, the Asia Pacific, and Africa. The company has shipped over 300,000 robots since releasing Japan’s fully electrically-driven industrial robot in 1977.

For Yaskawa, alongside Japan, China is its largest market for industrial robots, representing around 22% of its robot segment-related revenue. In China the key source of growth has been the automotive sector, but more recently it has seen increasing revenue from other sectors, highlighting the growing rate of adoption of robots beyond the automotive industry. In markets such as Japan, the auto industry remains by far the largest market, representing almost 80% of revenue.

According to company’s mid-term business plan ‘Dash 25’, it is targeting robotics segment to generated sales of ~¥170 billion by 2018 (~38% of overall sales). As part of its business plan, the company has already increased investments in robotics segment. It has opened 13 new Robot Centers, taking the total tally to 36.

Key Executives: Junji Tsuda Chairman of the Board, Chief Executive Officer Hiroshi Ogasawara Director, President Shuji Murakami Corporate Executive Vice President Yoshikatsu Minami Corporate Senior Vice President Koichi Takamiya Yuji Nakayama

Corporate Senior Vice President Corporate Vice President

Number of Employees: 14,632 (Including temporary employees) (as of March 20, 2017) Market Capitalization: ¥929.39 billion (as of September 27, 2017) Investors Information: https://www.yaskawa.co.jp/en/ir Email Notification for Company Results: No Latest Key Financial Data




Total Assets 373.5 387.5 Total Equity 175.3 190.6

Annual Reports Fiscal 2015: https://www.yaskawa.co.jp/en/wp-content/uploads/2015/01/ar2015_E.pdf Fiscal 2016: https://www.yaskawa.co.jp/en/wp-content/uploads/2016/08/ar2016_E.pdf Quarterly Financial Statements

Fiscal 2017:

• First Quarter: https://www.yaskawa.co.jp/en/wp-content/uploads/2017/07/20170720_en.pdf


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Fiscal 2016:

• First Quarter: https://www.yaskawa.co.jp/en/wp-content/uploads/2016/07/20160720_en.pdf • Second Quarter: https://www.yaskawa.co.jp/en/wp-content/uploads/2016/10/20161020_en.pdf • Third Quarter: https://www.yaskawa.co.jp/en/wp-content/uploads/2017/01/20170123_en.pdf • Fourth Quarter: https://www.yaskawa.co.jp/en/wp-content/uploads/2017/04/20170420_en.pdf



• Arc Welding: Yaskawa ArcWorld robotic welding systems are pre-engineered, pre-assembled and ready to weld. These robots can be configured with multiple robots, a heavy-duty positioner or servo-controlled external axes for coordinated motion.

• Bin Picking: These systems can accurately identify and sort nearly any mix of inventory presented in bins, cases or cartons.

• Cutting/Trimming: The ‘Eco Trim Solution’ ensures high-speed ultrasonic cutting, trimming, deburring and chamfering applications. This technology replaces waterjet, laser cutting, hard tooling and manual trimming or routing methods.

• Pallet Assembly: The system can assemble a wide range of custom pallets ranging from 20” to 120”. It can be used for stringer, black and custom pallet.

• Spot Welding: The company offers spot welding robots with broad range of payloads, reaches and servo-controlled spot guns.


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Midea Group Co., Ltd (SZSE: 000333) Headquarters: Guangdong, China Address: No.6 Midea Avenue, Beijiao, Shude, Foshan City, Guangdong Province, China 528311 Phone: +86-757-2633-8888 Website: http://www.midea.com/global/ Company Overview The company has been making investments in robotics and automation as early as 2015. In 2015, it set up JV with Yaskawa by investing ~$65 million. In 2016, the company made investments in Anhui Effort, which develops Industrial robots with a focus on logistics storage and transportation equipment, welding, painting and final assembly within the automotive industry. In May 2016, Midea launched a takeover offer of KUKA. The acquisition of KUKA widens the company’s presence in industrial and service robots. While Midea will help KUKA expand its presence in China.

According to the International Federation of Robotics, sales of industrial robots in China reached 68,600 units in 2015, up 20% YoY and it became one of the world’s biggest markets. The International Federation of Robotics expects that by 2018, China could account for over one-third of industrial robots installed worldwide.

In 1H17, the company’s Robots and Automation segment accounted for ~12% of overall sales. Midea management expects Chinese automakers will be a key driver of growth going forward.

Key Executives: Fang Hongbo Chairman and President Xiao Mingguang Chief Financial Officer Liu Min Chief Human Resources Hu Ziqiang Vice President, Chief of the Central Research Institute Yin Bitong Zhu Fengtao Gu Yanmin Wang Jinliang Li Feide

Vice President Vice President Vice President Vice President Vice President

Number of Employees: Approx. 130,000 Market Capitalization: CNY 285.6 billion (as of September 27, 2017) Investors Information: http://www.midea.com/global/investors/ Email Notification for Company Results: No Latest Key Financial Data

(In CNY billion) Fiscal Year Ending

December 31, 2015 December 31, 2016 Revenue 139.3 159.8



Annual Reports Fiscal 2015: http://img1.midea.com/global/investors/financial_statements/annual_reports/201604/P020160418664990496964.pdf Fiscal 2016: http://img.midea.com/global/investors/financial_statements/annual_reports/201704/P020170428514262327242.pdf


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Financial Statements Fiscal 2017: • First Quarter:

http://img.midea.com/global/investors/financial_statements/Interim_reports/201705/P020170503701629794225.pdf

• Second Quarter: http://img.midea.com/global/investors/financial_statements/Interim_reports/201709/P020170915669079133690.pdf

Fiscal 2016: • First Quarter:

http://img1.midea.com/global/investors/financial_statements/Interim_reports/201605/P020160505381354686806.pdf

• Second Quarter: http://img.midea.com/global/investors/financial_statements/Interim_reports/201610/P020161031680463475627.pdf

• Third Quarter: http://img1.midea.com/global/investors/financial_statements/Interim_reports/201610/P020161112431672415229.pdf

• Fourth Quarter: http://img.midea.com/global/investors/financial_statements/annual_reports/201704/P020170428514262327242.pdf

Stock information Exhibit 14: LTM Price Performance vs. HangSeng Index

Source: Marketwatch Application of Robots

• FAW Group: The company used KUKA robots for heavy duty material handling. KUKA KR 1000 titan robot was used for handling of 700kg cylinder blocks. KUKA KR 1000 titan is a six-axis robotic system. It is used in heavy handling and assembly operations.

• Horsch Maschinen GmbH: The company’s goal was to achieve higher output with higher quality in the welding process of its agriculture implements. The KUKA KR30-L16 robots were used for the welding process. The company installed two robot systems which helped it to reduce the production time by half.


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• Maba Track Solutions GmBH: The company was in a search of 3D measurement of railway sleepers and also handling the same which measured 320kg with a length of 2.60 m. The KUKA KR 500-3 heavy duty robot was selected for this application which stands out for its reliability as well as easy operator control. The use of the robot-automated solutions brings many advantage like 100% quality check, reduce in handling time etc.


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Mitsubishi Electric Corporation (TSE: 6503) Headquarters: Tokyo, Japan Address: Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan Phone: +81-3-3218-2111 Website: http://www.mitsubishielectric.com/ Company Overview Mitsubishi Electric Corporation manufactures and sells electrical and electronic equipment worldwide. Since 1980, Mitsubishi Electric has been producing robots for the manufacturing industry. Its Industrial Automation Systems segment provides vertical type robots, horizontal type robots, ceiling mounted horizontal type robots and micro working robots. The industrial automation systems sales stood at ¥1,310 billion in 2017.

Key Executives: Kenichiro Yamanishi Chairman Masaki Sakuyama President, Chief Executive Officer Yutaka Ohashi Executive Vice Presidents Takeshi Sugiyama Executive Vice Presidents Isao Iguchi Senior Vice Presidents Nobuyuki Okuma Senior Vice Presidents Akihiro Matsuyama Senior Vice Presidents Takashi Sakamoto Nobuyuki Abe Yasuyuki Ito

Senior Vice Presidents Senior Vice Presidents Senior Vice Presidents

Number of Employees: 138,700 (as of March 31, 2017) Market Capitalization: ¥3,735.4 billion (as of September 28, 2017) Investors Information: http://www.mitsubishielectric.com/company/ir/index.html Email Notification for Company Results: No Latest Key Financial Data


March 31, 2016 March 31, 2017 Revenue 4,394.3 4,238.6



Annual Reports Fiscal 2016: http://www.mitsubishielectric.com/company/ir/library/annual_report/pdf/ar2016.pdf Fiscal 2017: http://www.mitsubishielectric.com/company/ir/library/annual_report/pdf/ar2017.pdf Financial Statements Fiscal 2018:

• First Quarter: http://www.mitsubishielectric.com/company/ir/library/results/pdf/fy2018_1/0731.pdf Fiscal 2017:

• First Quarter: http://www.mitsubishielectric.com/company/ir/library/results/pdf/fy2017_1/0728.pdf • Second Quarter: http://www.mitsubishielectric.com/company/ir/library/results/pdf/fy2017_2/1031_a.pdf


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• Third Quarter: http://www.mitsubishielectric.com/company/ir/library/results/pdf/fy2017_3/0202.pdf • Fourth Quarter: http://www.mitsubishielectric.com/company/ir/library/results/pdf/fy2017_4/0428.pdf


Source: Marketwatch Key Solutions Offered

• Material Handling: Mitsubishi offers robots designed for smart and careful material handling. It includes floor, ceiling, and wall mounted models that can safely transport objects. The robots intelligently interact with conveyors, feeders, fixtures, and other material handling systems to locate incoming parts and move them forward.

• Pick and Place: The company offers high-performance robots for picking and placing products faster and safer, thereby improving productivity. A benefit is the high degree of precision yield long-term cost savings for the user.

• Material Removal: Mitsubishi offers solutions that can deburr metals and plastics with great precision. • Dispensing: The company’s robots are used for handling heavy payloads as well as apply lubricants, sealants

and paints. The robots have been used across industries including food packaging to electronics. • Packing/Palletizing: The company offers packing and palletizing solutions. Used across industries including

food and beverages, healthcare, automotive and education.


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Omron Corporation (TSE: 6645) Headquarters: Kyoto, Japan Address: Shiokoji Horikawa, Shimogyo-ku, Kyoto 600-8530 Japan Phone: +81-75-344-7000 Website: https://www.omron.com/ Company Overview In 2015, Omron acquired US industrial robot producer, Adept Technologies, for $180 million. Prior to that, the company historically had very limited presence in robotics. Omron Adept Technologies, Inc. is a leading provider of intelligent vision-guided robotics systems and services. Post the acquisition of Adept, Omron’s product portfolio boasts a variety of robots for light assembly and packaging applications, including SCARA robots, delta robots and six-axis robot arms. In April 2016, Omron released its new series of 49 robots, which will be sold across 39 countries worldwide.

Omron is offering innovative solutions to a range of industries including food processing and pharmaceuticals by integrating the robots with its sensor, safety components, automation controllers and automation platform. The company’s robots are extremely beneficial for customers that are challenged by a high variety of products with short product lifecycles.

Recently, the company installed two new lines to produce parallel robots at its European manufacturing site in Den Bosch, the Netherlands. The aim is to cut lead times, accelerate responses and improve productivity for robots delivered to customers in Europe. Also, the company recently acquired Microscan Systems, a provider of machine vision technology for identification, inspection and verification, for $157 million. Omron plans to integrate the technology with its automation solutions

Key Executives: Fumio Tateishi Chairman Yoshihito Yamada President and Chief Executive Officer Yutaka Miyanaga Executive Vice President Kiichiro Miyata Senior Managing Executive Officer and Chief Technology Officer Koji Nitto Senior Managing Executive Officer and Chief Financial Officer

Number of Employees: 36,008 (as of March 31, 2017) Market Capitalization: ¥1,210.1 billion (as of September 28, 2017) Investors Information: http://www.omron.com/about/ir/ Email Notification for Company Results: No Latest Key Financial Data

(In ¥billion) Fiscal Year Ending




Annual Reports Fiscal 2016: http://www.omron.com/about/ir/irlib/pdfs/ar16e/ar2016e.pdf Fiscal 2017: https://www.omron.com/about/ir/irlib/pdfs/ar17e/ar2017e.pdf


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Financial Statements Fiscal 2018:

• First Quarter: https://www.omron.com/about/ir/irlib/pdfs/20170727_financial_results.pdf Fiscal 2017:

• First Quarter: http://www.omron.com/about/ir/irlib/pdfs/20160728_financial_results.pdf • Second Quarter: http://www.omron.com/about/ir/irlib/pdfs/20161027_financial_results.pdf • Third Quarter: http://www.omron.com/about/ir/irlib/pdfs/20170131_financial_results.pdf • Fourth Quarter: http://www.omron.com/about/ir/irlib/pdfs/20170427_financial_results.pdf

Stock information

Exhibit 16: LTM Price Performance vs. NIKKEI Index


• RAPID4mation, Inc: RAPID4motion had developed a manual material removal/finishing process for the consumer components which worked well but was subject to ergonomic concerns and part consistency issues. The company wanted to automate the same process to eliminate the existing issues. The Cobra 600 SCARA robot could very closely mimic the successful manual material finishing motions and would thus require relatively little process development.

• Titan Industries: Titan Industries is the world fifth largest and India’s leading manufacturer of watches. The company had to manually load and unload the watch cases that would cost three hours of labor time. With the installation of Adept Cobra 4 Axis robot combined with an AdeptSight vision system, the company’s production volume has doubled from 750 pieces to 1,500 pieces per eight hour shift.

• Philips: Philips has planned an automation solution that delivered quality, supported their profitability, and had flexibility to adapt to any future product changes. It employed Cobra SCARA and AnyFeeder to build a fully automation solution.

• Hershey Foods: The company needed an automated packaging solution for packaging their Reese’s Peanut Butter Cup wrapped chocolates from six separate wrapping machines and turned to 3-axis AdeptModules and a multi-pick gripper that can pick 20 chocolates at once. The company also added SCARA robots to make the packing even faster.

• Fresenius Kabi Deutschland: The company wants to boost it throughput and quality of its packaging line for medical infusion bags. The company relied on Adept systems Erhardt+Abt, to come up with a high-performance innovation solution. The integration work resulted in a line featuring a flexible PC-based vision system using Adept HexSight software library and four Adept Cobra s800 robots in a load-balancing configuration. The company achieved the increase in throughput time and the quality of its packaging line was improved.


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Denso Corporation (TSE: 6902) Headquarters: Aichi, Japan Address: 1-1, Showa-cho, Kariya, Aichi, 488-8661, Japan Phone: +81-566-25-5511 Website: https://www.denso.com/global/en/ Company Overview Denso is a leading supplier of advanced automotive technology, systems and components for major automakers. Since 1960, It has also been a pioneer in automation, including the design and manufacturing of industrial robot arms. The Denso robots provide a wide range of high-speed, high-precision 4-axis SCARA and 5 and 6-axis articulated industrial robots, for a payload up to 20kgs. Denso is also the world’s largest user of small assembly robots having more than 17,000 DENSO small industrial robots employed in the company's manufacturing facilities, and more than 77,000 additional DENSO small industrial robots are used by other companies worldwide. Key Executives:

Nobuaki Katoh Chairman Koji Kobayashi Vice Chairman Koji Arima President and Chief Executive Officer Haruya Maruyama Executive Vice President Yasushi Yamanaka Executive Vice President Hiroyuki Wakabayashi Executive Vice President

Number of Employees: 154,493 (as of March 31, 2017) Market Capitalization: ¥4,400.95 billion (as of September 28, 2017) Investors Information: https://www.denso.com/global/en/investors/ Email Notification for Company Results: No Latest Key Financial Data





Annual Reports Fiscal 2016: http://www.denso.com/global/en/investors/library/annual_report/2016/ Fiscal 2017: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/annual_report/documents/2017_annual_report.pdf Financial Statements Fiscal 2018:

• First Quarter: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/settlement/2018/documents/financial-201707.pdf


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Fiscal 2017:

• First Quarter: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/settlement/2017/documents/financial-2017_7.pdf

• Second Quarter: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/settlement/2017/documents/financial-2017_10.pdf

• Third Quarter: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/settlement/2017/documents/achievment-2017_0202.pdf

• Fourth Quarter: https://www.denso.com/common/confidential-static-contents/global/en/investors/library/settlement/2017/documents/financial-201704.pdf



• Owens Design Inc: Owens Design had to develop an automated assembly system for a new, cutting-edge mobile device. The company used 24 Denso robots, both four- and six-axis models plus 29 inspection and alignment cameras and 19 computers.

• Market Resources Packaging: The company’s requirement was to pick a sachet in a random location from a moving conveyor and place it on to the card located on another moving conveyor in a specific location. The company used Denso’s VS-6556G six-axis robotic arm, which was controlled by Denso’s RC7M controller. The DENSO robots and camera helped in picking accurately the sachets.

• Surefire LLC: The company wanted to replace its hard automation equipment with articulated robots to further streamline its manufacturing operations. The company has two DENSO Robots with three more robots in order. These robots have helped to reduce the cycle time by half and have also reduced labor cost.


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EPSON Robots (division of Seiko Epson Corporation (TSE: 6724)) Headquarters: Nagano, Japan Address: 3 - 5, Owa 3-chome, Suwa, Nagano, 392-8502, Japan Phone: +81-266-523-131 Website: http://global.epson.com/ Company Overview Epson began developing robots in 1981. Originally created to support internal automation needs, EPSON Robots quickly became popular in many of the top manufacturing sites throughout the world. Over the past 32 years EPSON Robots has been leading the industry for small parts assembly applications and has introduced many products including PC-based controls, compact SCARA robots, and more. It is the #1 SCARA robots manufacturer in the world. Key Executives:

Minoru Usui President Shigeki Inoue Director, Senior Managing Executive Officer Koichi Kubota Director, Senior Managing Executive Officer Masayuki Kawana Director, Executive Officer Tatsuaki Seki Director, Executive Officer

Number of Employees: 67,605 Market Capitalization: ¥958.4 billion (as of September 28, 2017) Investors Information: http://global.epson.com/IR/ Email Notification for Company Results: Yes (https://cform.epson.jp/form5/pub/e042/1006003007013010627) Latest Key Financial Data





Annual Reports Fiscal 2016: http://global.epson.com/IR/library/pdf/ar2016.pdf Fiscal 2017: http://global.epson.com/IR/library/pdf/ar2017.pdf Financial Statements Fiscal 2018:

• First Quarter: http://global.epson.com/IR/financial_results/2017/pdf/results_2017_1q_e.pdf Fiscal 2017:

• First Quarter: http://global.epson.com/IR/financial_results/2016/pdf/results_2016_1q_e.pdf • Second Quarter: http://global.epson.com/IR/financial_results/2016/pdf/results_2016_2q_e.pdf • Third Quarter: http://global.epson.com/IR/financial_results/2016/pdf/results_2016_3q_e.pdf • Fourth Quarter: http://global.epson.com/IR/financial_results/2016/pdf/results_2016_full_e.pdf


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• Inspection/Packaging Application: A Tier 1 automotive supplier wanted to prevent shipments of defective parts to its customers. The manual methods made the workers accidently include the defective parts in the shipment. The company’s workcell was equipped with an EPSON TT8800 robot and a simple pneumatic gripper. The company benefited from the installation of the robot as it resulted in higher production yield, reducing defective shipments and improving end user satisfaction.

• Medical Device Test Automation: Extensive testing of inhalers is a very time consuming and labor intensive work. By installing an EPSON robot as the material handling device, the company benefited from a 500% increase in testing throughput, a 97% reduction in cost per test, significant reductions in labor cost, faster reporting of test results, low rejection rates and less material wastage.

Recent Announcement T- Series All-in-One robots: The company announced expanding its line of industrial SCARA robots with the new T-Series All-in-One robots with built-in controller, a new technology feature which reduces space requirements and simplifies setup.


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Lockheed Martin Corp (NYSE: LMT) Headquarters: Maryland, United States Address: 6801 Rockledge Drive, Bethesda, Maryland 20817, United States Phone: +1-301-897-6000 Website: http://www.lockheedmartin.com/ Company Overview Lockheed Martin Corp is a security and aerospace company, engaged in research, design, development, manufacturing, integration and sustainment of technology systems, products and services worldwide. The company is also focusing on robotics and unmanned vehicles segments. The company is a major supplier of robotics and unmanned vehicle to the defense sector. The company recently made a strategic investment in Ocean Aero, the developer of unmanned maritime vehicles. This investment will allow Lockheed Martin to further strengthen its presence in autonomous maritime vessels for defense sector. Key Executives: Marillyn Hewson Chairman, President and Chief Executive Officer Bruce Tanner Executive Vice President, Chief Financial Officer Richard Ambrose Executive Vice President, Space Systems Dale Bennett Executive Vice President, Rotary and Mission Systems Orland Carvalho Executive Vice President, Aeronautics Richard Edwards Executive Vice President, Missile and Fire Control Number of Employees: Approx. 97,000 (as of December 31, 2016) Market Capitalization: $89.31 billion (as of September 27, 2017) Investors Information: http://phx.corporate-ir.net/phoenix.zhtml?c=83941&p=irol-IRHome Email Notification for Company Results: Yes (http://phx.corporate-ir.net/phoenix.zhtml?c=83941&p=emailalerts_home) Latest Key Financial Data

(In USD million) Fiscal Year Ending


Operating Income 4,712 5,549 Net Income 3,605 5,302

Total Assets 49,304 47,806 Total Equity 3,097 1,606

Annual Reports Fiscal 2015: http://www.lockheedmartin.com/content/dam/lockheed/data/corporate/documents/2015-Annual-Report.pdf Fiscal 2016: http://www.lockheedmartin.com/content/dam/lockheed/data/corporate/documents/2016-annual-report.pdf


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Financial Statements Fiscal 2017:

• First Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mzc1MTE3fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636287178387176739

• Second Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzgzNTk1fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636359756089196712

Fiscal 2016:

• First Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzM1MDI4fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=635972657834994413

• Second Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQ0NjYzfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636044945369683175

• Third Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzU1NTAzfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636129124140375338

• Fourth Quarter: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzYzNTkyfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636208006476063820

Stock information Exhibit 19: LTM Price Performance vs. S&P 500

Source: Nasdaq


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Application of Robots • Robots to the Rescue: The use of unmanned vehicles to detect roadside bombs in Afghanistan, mines in

Persian Gulf, shipping lanes or any other attacks has been on the rise. According to Department of Defense (DOD), US casualties from improvised explosive devices (IEDs) dropped by nearly half in 2012 thanks largely to use of unmanned robots and vehicles.


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MID-SIZED PLAYERS TO WATCH Kawasaki Heavy Industries (TSE: 7012) Headquarters: Tokyo, Japan Address: 1-14-5, Kaign, Minato-ku, Tokyo, 105-8315, Japan Phone: +81-3-3435-2111 Website: http://global.kawasaki.com/ Company Overview Kawasaki Heavy Industries, Ltd., is the third largest industrial robots vendor in Japan. The company through its Precision Machinery segment produces a variety of industrial robots. The company is a major supplier of robots to the automotive sector including painting robots, arc and spot welding robots. Over the years, the company has expanded its product range and now supplies 6-axis robot arms, SCARA robots and parallel-link robots. The segment contributed sales of ¥155.2 billion in 2016 (~10% of the total sales).

KHI produced Japan’s first industrial robot in 1969 and since then, it has installed over 151,000 robots worldwide. The robot business is only a small part of the company’s overall revenue, but going forward is expected to be a key growth driver.

According to company’s sales director Dan Hasley KHI plans to use the experience and system engineering technologies it has built in industrial robots to drive the expansion of new sectors, such as medical and collaborative robots, to further serve and assist humans. The company is planning to expand its industrial robot production in China. Chinese unit Kawasaki Precision Machinery (Suzhou) will install three new assembly lines by the end of 2017 for four types of small to midsize robots. The group aims to boost sales in China by 70% to ~8,000 units for FY 2018

Key Executives: Shigeru Murayama Chairman of the Board Yoshinori Kaneghana Director, President Kazuo Hida Senior Vice President Toshiyuki Kuyama Senior Vice President Kazua Ota Senior Vice President Makoto Ogawara Senior Vice President Tatsuya Watanabe Senior Vice President Number of Employees: 35,127 (as of March 31, 2017) Market Capitalization: ¥623.1 billion (as of September 28, 2017) Investors Information: http://global.kawasaki.com/en/corp/ir/ Email Notification for Company Results: No Latest Key Financial Data

(In ¥ billion) Fiscal Year Ending March 31, 2016 March 31, 2017

Revenue 1,541 1,518.8 Operating Income 95.8 45.9

Net Income 46.0 26.2 Total Assets 1,620.5 1,687.3 Total Equity 438.3 446.2


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Annual Reports Fiscal 2016: http://global.kawasaki.com/en/corp/sustainability/report/environmental/pdf/16_houkokusyo.pdf Fiscal 2017: http://global.kawasaki.com/en/corp/ir/library/pdf/170526_1e.pdf Quarterly Financial Statements Fiscal 2018:

• First Quarter: http://global.kawasaki.com/en/corp/ir/library/pdf/170731_2e.pdf Fiscal 2017:

• First Quarter: http://global.kawasaki.com/en/corp/ir/library/pdf/160829_1e.pdf • Second Quarter: http://global.kawasaki.com/en/corp/ir/library/pdf/161028_1e.pdf • Third Quarter: http://global.kawasaki.com/en/corp/ir/library/pdf/170228_1e.pdf • Fourth Quarter: http://global.kawasaki.com/en/corp/ir/library/pdf/170526_1e.pdf


Source: Marketwatch Applications

• Aerospace Industry: The company’s robots are being used to execute sensitive, repetitive tasks, including bolting, riveting and welding interior and exterior sections of aircraft, as well as general assembly processes.

• Automotive Industry: The company’s robots are used for arc welding, spot welding, palletizing, painting, assembly and other functions.

• Food & Beverage Industry: Kawasaki offers a wide variety of robots which can be used for handling processes, including bottle positioning, capping, filling, sterilizing and high-speed picking and sorting.

• Life Sciences Industry: Kawasaki robots are used across functions ranging from assembly of medical device implants and sensitive dispensing of pharmaceutical compounds to packing and palletizing operations.


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iRobot Corporation (Nasdaq: IRBT) Headquarters: Massachusetts, United States Address: 8 Crosby Drive, Bedford, Massachusetts, 01730, United States Phone: +1-781-430-3001 Website: http://www.irobot.com Company Overview Headquartered in Massachusetts, USA, iRobot Corp designs, builds, and sells robots for the consumer market. IRBT sells various products that are designed primarily for personal services such as home cleaning. The robots are sold through various distribution channels, including brick and mortar stores as well as offline.

The company’s sales stood at $660 million in 2016 an increase of 11% YOY and it expects sales of $840 to $860 million in 2017. In 2Q17, the US revenues were up 45% YOY, with the company now expecting full year revenues in the US to grow by 30% YOY in 2017.

Key Executives: Colin M. Angle Chairman, CEO and Founder Alison Dean Executive Vice President, CFO, Treasurer and Principal Accounting Officer Russell J. Campanello Executive Vice President, Human Resources and Corporate Communications Christian Cerda Chief Operating Officer Tim Saegar Executive Vice President, Engineering Glen D. Weinstein Executive Vice President, Chief Legal Officer Number of Employees: About 600 (In 2016) Market Capitalization: USD 2.19 billion (as of September 27, 2017) Investors Information: http://investor.irobot.com/ Email Notification for Company Results: Yes (https://irobotcorporation.gcs-web.com/shareholder-services/email-alerts) Latest Key Financial Data

(In USD million) Fiscal Year Ending

January 2, 2016 December 31, 2016 Revenue 616.8 660.6



Annual Reports Fiscal 2015: https://irobotcorporation.gcs-web.com/static-files/ed6719e5-3df0-4165-a832-4eb48e021f9e Fiscal 2016: https://irobotcorporation.gcs-web.com/static-files/dd908bee-7ad3-40d5-bdb2-6d21eb8f12a0 Quarterly Financial Statements Fiscal 2017: • First Quarter: http://investor.irobot.com/news-releases/news-release-details/irobot-reports-first-quarter-financial-

results-2 • Second Quarter: http://investor.irobot.com/news-releases/news-release-details/irobot-reports-strong-second-

quarter-financial-results-0


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Fiscal 2016: • First Quarter: https://irobotcorporation.gcs-web.com/news-releases/news-release-details/irobot-reports-first-

quarter-financial-results-1 • Second Quarter: https://irobotcorporation.gcs-web.com/news-releases/news-release-details/irobot-reports-

strong-second-quarter-financial-results • Third Quarter: https://irobotcorporation.gcs-web.com/news-releases/news-release-details/irobot-reports-strong-

third-quarter-financial-results • Fourth Quarter: https://irobotcorporation.gcs-web.com/news-releases/news-release-details/irobot-reports-fourth-

quarter-and-full-year-financial-results-4 Stock information Exhibit 21: LTM Price Performance vs. S&P 500

Source: Nasdaq Key Products

• Roomba floor vacuuming robot: These robots are designed for vacuum cleaning. Roomba's design allows it to clean under kick boards, beds and other furniture, resulting in cleaner floors since the Roomba could access more of the floor than standard upright vacuum cleaners. As of 2016, Roomba held ~64% market share in the robot vacuum cleaning space globally.

• Braava floor mopping robot: These robots are particularly designed for hard surface floors. The robot automatically dusts and damp mops hard surface floors. The mopping is aligned with consumer behaviour in the Asian markets. They are available at <$200 price point.

• Mirra Pool Cleaning robot: The robot is used to clean residential pools and removes debris as small as approximately 2 microns.


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Hiwin Technologies Corp (TSEC: 2049) Headquarters: Taichung, Taiwan Address: No. 7, Jingke Road, Taichung Precision Machinery Park, Taichung, 40852, Taiwan Phone: +886-4-23594510 Website: http://www.hiwin.com.tw/ Company Overview Hiwin is leading manufacturer of linear motion control products and industrial robots. Hiwin aims to become the world’s major robot manufacturer. Hiwin’s robots are used across a range of industries, such as electronics, medical service, food, banks, consumer goods, machine tools, industrial machinery, panels and PCB. The Industrial Robot segment generated revenues of NT$456 million or ~9% of overall sales in 2Q17. Key Executives: Eric Y. T. Chuo Chairman, CEO and President Lin Yifeng Assistant General Manager of Finance Department Peng Yanqi Vice General Manager of Marketing Business Qu Yueling Assistant General Manager of Chairman Room Song Xiande Vice General Manager of Chairman Room Hui-Chin Tsai General Manager, Director Number of Employees: 5,333 employees (3,283 Direct, 2,050 Indirect employees as of March 31, 2017) Market Capitalization: TWD 76.06 billion (as of September 28, 2017) Investors Information: http://www.hiwin.com.tw/en/stock/investor_relations.aspx# Email Notification for Company Results: No Latest Key Financial Data

(In TWD million) Fiscal Year Ending


Operating Income 1,902.6 1,450.9 Net Income 1,642.2 1,326.8


Annual Reports Fiscal 2015: http://www.hiwin.com.tw/stock/annual_report/2015_Annual_report.pdf Fiscal 2016: http://www.hiwin.com.tw/stock/annual_report/2016_Annual_report.pdf Quarterly Financial Statements Fiscal 2017:

• First Quarter: http://www.hiwin.com.tw/stock/finance_report/201701_2049_A02_en.pdf • Second Quarter: http://www.hiwin.com.tw/stock/finance_report/201702_2049_A02_en.pdf

Fiscal 2016:

• First Quarter: http://www.hiwin.com.tw/stock/finance_report/201601_2049_A02_en.pdf • Second Quarter: http://www.hiwin.com.tw/stock/finance_report/201602_2049_A02_en.pdf • Third Quarter: http://www.hiwin.com.tw/stock/finance_report/201603_2049_A02_en.pdf • Fourth Quarter: http://www.hiwin.com.tw/stock/finance_report/201604_2049_A02_en.pdf


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Stock information Exhibit 22: LTM Price Performance vs. TSEC 50 Index


• Articulated Robot RA605 Series: It is a compact and agile 6-axis jointed-arm robot for precise assembly, complex machinery and workpiece manipulating. The applications include: pick and pack, handling, assembly, complex machining and work manipulating.

• Delta Robot RD401 Series: It is a 4-axis parallel robot used for variety of applications including: pick and place, assembly, alignment and packaging in range of sectors such as plastic, automotive, electronics, pharmaceuticals and food industries.

• SCARA Robot: SCARA robots are used for pick and place and assembly applications. Widely used in the plastic, automobile, electronic, pharmaceutical, and food industries.

• Robot Endoscope Holder: The robot mainly focuses on controlling the position and angle of the surgical instruments used during minimally invasive surgery.

• Hygiene System: The "Bath Assistive Equipment" is a medical bathtub that stirs water to reduce pain and itch by hydrotherapy. This hygiene system can also be used to clean patients.


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Nachi-Fujikoshi Corp (TSE: 6474) Headquarters: Toyama, Japan Address: Shiodome Sumitomo Bldg. 17F, 1-9-2 Higashi-Shinbashi, Minato-ku, Tokyo 105-0021, Japan Phone: +81-3-5568-5111 Website: http://www.nachi-fujikoshi.co.jp/eng/index.html Company Overview Headquartered in Tokyo, Nachi-Fujikoshi Corp. has been in operations since 1928. The company is one of the leading industrial robot producers in Japan. It offers robots for spot welding, arc welding, handling, palletizing, heavy duty and cleanroom. For FY 2016, sales from robots stood at ¥22.4 billion. For 1H17, the company reported robot sales of ~¥16 billion (or 14% of overall sales).

The company anticipates robot sales to jump to ¥30 billion in 2017 (increase of ~34% year-on-year). The sales growth will primarily be driven by the launch of new products (such as WING SLICER type “EZ series” robot) and expanding operations in China and Japan. The company has opened an exhibition hall (ROBOT FA) in its Toyama head office as a venue for displaying its various robotic solutions. Based on the concept of the ROBOT FA Exhibition Hall, the company is planning for a global expansion of Robot Technical Centers. These centers will be opened at 10 locations across China, North America, Europe and ASEAN.

Key Executives: Hiroo Honma Chairman Kenji Susukida President Masayuki Kobayashi Managing Director Koichi Watanabe Managing Director Hidenori Hayashi Managing Director Hideaki Hara Director of Robot Business Center, Nachi Number of Employees: 6,775 Market Capitalization: ¥157.1 billion (as of September 28, 2017) Investors Information: http://www.nachi-fujikoshi.co.jp/eng/ir/index.html Email Notification for Company Results: No Latest Key Financial Data

(In ¥ billion) Fiscal Year Ending November 30, 2015 November 30, 2016

Revenue 218.5 211.5 Operating Income 18.9 11.1

Net Income 11.5 3.9 Total Assets 268.1 269.4 Total Equity 102.5 98.0

Annual Reports Fiscal 2015: http://www.nachi-fujikoshi.co.jp/eng/ir/business_report/pdf/ji_133.pdf Fiscal 2016: http://www.nachi-fujikoshi.co.jp/eng/ir/business_report/pdf/ji_134.pdf Financial Statements Fiscal 2016:

• Interim: http://www.nachi-fujikoshi.co.jp/eng/ir/business_report/pdf/ji_134a.pdf • Final: http://www.nachi-fujikoshi.co.jp/eng/ir/business_report/pdf/ji_134.pdf


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• EZ Series: The SCARA family EZ are high-speed, high accuracy systems that are excellent for applications such as assembly and handling.

• MZ Series: Lightweight and compact robot. Its design prevents dust and dirt from accumulating and makes it easy to remove. Used in assembly, picking, packaging and deburring.

• MC Series: These robots are suited for a variety of production environment with the high dust and water protection functions.

• MR Series: The robot is equipped with 7-axis arm design which can handle complex motions and harsh environments.

• MC Heavy Loader Series: Used primarily to handle large and heavy duty loads. The company has a variety of other robots like the palletizing robots, clean-room robots, welding robots etc. which gives the company a diversified product portfolio.


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SIASUN Robot & Automation Co. Ltd (SZSE: 300024) Headquarters: Shanghai, China Address: 5# Building No. 1295 Chuanqiao Rd, Jinqiao, Export, Pudong, Shanghai, 201206, China Phone: +86-213-102-1788 Website: http://www.shsiasun.com/en/ Company Overview SIASUN Robot & Automation Co. Ltd is a leading supplier of industrial robots and automation equipment. The portfolio includes industrial robots, clean room automation equipment, automatic complete set equipment, Logistics and storage automation, Laser manufacturing set equipment and Tregaskiss sealing machines. The products find application in industries including Automobile, Motorcycle, Engineering Machinery Electronic and Electric assembly. Key Executives: Daokui Qui President, Vice Chairman and Director Qing Feng Jin Financial Director Hong Yu Wang Vice President and Director Li Guo Zhao Vice President and Secretary Zheng Gang Li Executive Officer Gao Qiang Vice President Number of Employees: N/A Market Capitalization: RMB 33.2 billion (as of September 29, 2017) Latest Key Financial Data

(In RMB million) Fiscal Year Ending

December 31, 2015 December 31, 2016 Revenue 1,685.4 2,033.5



Stock information Exhibit 24: LTM Price Performance vs. HangSeng Index

Source: Marketwatch


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Key Products

The industrial robots manly include spot welding, arc welding, handling, assembling, gluing, spraying, casting, and moulding etc. The robots can perform various tasks including the design and manufacture of welding & assembly lines for car’s white body and automated pressing lines of the car body.


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SMALL PLAYERS TO WATCH Universal Robotics Inc (private) Headquarters: Tennessee, United States Address: 1127 Winding Way, Nashville, Tennessee, 37217, United States Phone: +1-615-366-7281 Website: http://www.universallogic.com/ Company Overview Universal Robotics was founded in 2001 and provides supply chains with complete automated material handling systems for high-mix, high-volume applications. The company offers Neocortex, an artificial intelligence module of Spatial Vision, a software platform that handles sensor connection, calibration, PLC and robot communication, path planning, obstacle avoidance, vision guidance, inspection, database management, and learning functions. Key Executives: David Peters Chairman, Chief Executive Officer Hob Wubbena Vice President Goutham Mallapragada Chief Technology Officer Neil Hughes Senior Account Executive Owen Long Project Manager Nick Buchta Project Manager Products and applications The company offers robotic systems for Bin Picking, Box Moving, Part induction, Bag Handling, Order Fulfilment, Machine Tending, 3D Inspection and Assembly/Kitting applications. The systems are based on company’s artificial intelligent module, Neocortex. The robots can pick up 500-800 units per hour with an affordable cost of $7/hour for 2 shifts over 5 years. The system can be customized to pick up 1000s of cartons, bottles, tubes, bags, cans of odd shapes and sizes. The robots are available in three sizes small, medium and large which provide different speed and flexibility of picking products.


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Grey Orange Robotics (private) Headquarters: Singapore, Singapore Address: 25 Kallang Avenue #05-05, Singapore, 339 416 Singapore Phone: +65-6589-8380 Website: http://www.greyorange.com/ Company Overview Grey Orange is a multinational firm that designs, manufacturers and deploys advanced robotics systems for automation at warehouses, distribution and fulfilment centers. The company was founded in 2011 and is headquartered in Singapore with offices in India, Hong Kong, Japan, Germany and UAE. It is recognized as one of the world’s top 50 robotics companies by Robotics Business Review. Key Executives: Samay Kohli Global Chief Executive Officer Akash Gupta Chief Technology Officer Nalin Advani Chief Executive Officer, Asia-Pacific Priyanka Kohli Lead, People Operations Vartul Jain Vice President, Finance Gautam Pande Director -Operations Key Products

• Butler: Butler Robots bring inventory stored in racks to the operator. With the throughput of up to 600 picks per hour per picker, the system improves productivity by 8-10 times.

• Linear Sorter: The GreyOrange Linear Sorter is built on the backbone of tried and tested pneumatic arms technology with next-generation of IoT sensors and advanced software, offering unmatched throughputs, package-handling capability and reliability. It recently was selected by Pos Indonesia, the national postal company for assortment of parcels.

• PPTL: Pick-Put-to-Light (PPTL) system is designed to handle pick, put and sort operations. It helps to minimize errors, speed up the cycle and improve order processing accuracy, while improving overall productivity.

• G-Stat: GreyOrange G-Stat is an advanced system for static dimensioning, weighing and scanning of items or cases in the warehouse. It can accurately capture packet weight or measure length, breadth, height and real volume of the packet.

• Profiler: GreyOrange Profiler is a high-speed dynamic packet profiling system designed to capture volumetric and dead weight, along with dimensions of packet in real-time. The technology can be leveraged across logistics, e-commerce, retailers, consumer packaged goods and automotive industries.


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Staubli International AG (private) Headquarters: Zurich, Switzerland Address: PO Box 30, Pfaffikon, Zurich 8808 Switzerland Phone: +41-55-416-00-40 Website: https://www.staubli.com/ Company Overview Staubli International is involved in providing high quality robotic systems and solutions. Staubli offers a complete range of 4-axis and 6-axis robots designed to handle up to 150 kg payload. Besides this, the company offers robot controllers as well robot software. Key Executives: Rolf Strebel Chief Executive Officer Thomas Nauer Chief Communications Officer Key Products

• Laser Cutting Robots: The Staubli TX90 laser cutting system is designed to remove waste edges from door panels, remove excess film from back-injection moulded parts, or create cut-outs in medium-sized plastic parts cleanly, leaving no visible or structural damage.

• Washing Robots: The Stauble washing solutions are used extensively in the automotive, casting and machining industries for washing, cleaning, deburring, rinsing, degreasing and drying applications.

• Life Sciences Pharmaceutical Robots: These robots find application in medical device manufacturing, pharmaceutical production, biotechnology, laboratory research and hospital automation.

• Hospital Robots: Robotic solutions from Staubli combine patient safety with high performance in applications like preparing and dispensing of chemotherapy drugs for individual patients, filling of syringes or safe handling of cytotoxic drugs.


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Aethon Inc (acquired by ST Engineering) Headquarters: Pennsylvania, United States Address: 100 Business Centre Drive, Pittsburgh, Pennsylvania 15205, United States Phone: +1-412-322-2975 Website: http://www.aethon.com/ Company Overview Aethon Inc is best known for its autonomous mobile delivery robot which transports medicine, meals and materials through hospitals. The company also offers MedEx, a software system that tracks and maintains chain-of-custody control of medication delivery. Aethon’s Intralogistics solutions automate the physical delivery of goods, track and monitor high value medication deliveries and ultimately improve hospital efficiency, clinical staff effectiveness and patient satisfaction. Aethon’s solutions are used by over 140 hospitals in some of the most prestigious medical centers in the world. In August 2017, ST Engineering completed the acquisition of Aethon Inc which was announced in July 2017. Aethon Inc. becomes a wholly owned subsidiary of ST Engineering. Key Executives: Aldo Zini President and Chief Executive Officer Peter Seiff Senior Vice President Business Development Robert Reilly Chief Financial Officer Spencer Allen Chief Technology Officer David Wolfe Director Product Management Key Products

• Aethon’s robots in healthcare perform the delivery and transportation tasks to free clinical and service staff to focus on patient care. Hospitals move an immense amount of materials through hallways, on elevators, in basements and to patient units. This is a complex and demanding internal logistics challenge that has implications on costs, quality and safety. Automating delivery of this material generates considerable savings, efficiency and worker satisfaction. It can be used in various other departments also.

• The company also serves the healthcare industry via its MedEx platform. MedEx is a suite of products designed to prepare, track, secure, distribute and confirm medication deliveries.


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Rethink Robotics (private) Headquarters: Massachusetts, United States Address: 27-43 Wormwood Street, Boston, Massachusetts 02210, United States Phone: +1-617-500-2487 Website: http://www.rethinkrobotics.com/ Company Overview Rethink Robotics develops and produces industrial robots primarily for the manufacturing sector. The company provides a variety of products like Baxter, Sawyer and Intera. In July 2017, the company signed deals with nine distribution partners throughout the US and Europe to extend the availability of its robots. Key Executives: Rodney Brooks Founder, Chairman and CTO Scott Eckert President and CEO Jason Barton Chief Revenue Officer Steve Daignault Vice President, Finance Jim Lawton Chief Product & Marketing Officer Ann Whittaker Co-Founder and VP, People and Culture Key Products

• Intera 5: It is the world’s first smart collaborative robot that can orchestrate key elements of the work cell, opening up new and affordable automation possibilities. It will indirectly help customers work toward a smart factory and providing a path toward Industrial IoT.

• Sawyer: It is a collaborative robot designed to execute tasks which were impractical to automate with traditional robots. The robot features 7 degrees of freedom with a 1260 mm reach that maneuvers into tight spaces and operates in work cells designed for humans. Tennplasco, a plastic injection molding company, deployed ‘Sawyer’ and successfully solved its labor shortage problem.

• Baxter: It is an industrial automation solution for a wide range of tasks including material handling, packaging, loading and others. The robot is re-trainable across lines and tasks.


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KEY REFERENCES

International Federation of Robotics (IFR) The International Federation of Robotics (IFR) is a professional non-profit organization established in 1987 to promote, strengthen and protect the robotics industry worldwide https://www.ifr.org

International Data Corporation (IDC) IDC is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. http://www.idc.com/

World Robotics Report 2016 A report published on the current trends in the industrial and services robot industry. https://ifr.org/ifr-press-releases/news/world-robotics-report-2016

Robotic Industries Association (RIA) RIA is a trade group based in North America organized specifically to serve the robotics industry. https://www.robotics.org/

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