We Expect Wide-Moat Nabtesco's Reduction Gears To Drive Long-Term Top-Line Growth

As a global leader in motion control technology, Nabtesco boasts the leading global and/or domestic market share with its main products in each of its segments. Nabtesco’s precision reduction gears are supplied to the big four industrial robotics companies, as well as major Chinese players like Estun. With a 60% global share in the reduction gear market, a focus on medium-size to large reduction gears and a wide moat backed by high switching costs and intangible assets, the business will continue to be a key driver and a core part of Nabtesco’s strategy. We expect Nabtesco is well positioned for a secular growth in the industrial robotics industry, driven by skilled labor shortage and need to increase production efficiency through automation.