periodApril 1, 2019

Chairman and C.E.O.

President and C.O.O.

Kazuichi Satomi

Kentaro Sato▼135thInterimBusinessReport
September 30, 2019

To Our Shareholders
Thank you very much for your continued support. It is our pleasure to present our mid-term report for the 135th
period, April 1st to September 30th, 2019.
As you well know, during this period the Japanese economy recovered moderately due to improvements inequipment investment and the employment environment. However, exports fell due to the effects of U.S.-China
trade friction, and there were signs that the growth will slow, as companies revised results downwards particularly inthe manufacturing industry. In the global economy, as well as the distinct deceleration in the Chinese economy,
Asian and European economies exhibited weakness, and the outlook has become more opaque.
The business environment faced by the Parker Group was one in which, among our key customers in the autoindustry, while auto production was robust in Japan, in China the auto output fell compared to the previous year andgrowth overseas was dampened. In addition, for our key customers in the steel industry, while domestic demand forsteel was generally strong, the expansion of demand was weakened by the increasing deceleration of the Chinese
economy.
Against such a backdrop, the Parker Group embarked on its third mid-term management plan, aiming to be a true
global company as a surface modification specialist. To this end we have instituted a variety of measures to achievetargets based on our key policies of growth strategies to win in global competition, group management optimization
and reform of governance in order to establish 3G Management (Global, Group, Governance). In addition, we
reflected on our founding spirit of sincerity and honesty, facing our customers sincerely, providing swift and accurate
service and high quality products through innovation based on our accumulated core technology, while endeavoring
to strengthen our global quality improvement initiatives and research and development organization.
As a result, our consolidated business achievements for this period were as described in the latter part of this report.
As resolved at the meeting of the Board of Directors on November 8, 2019, the interim dividend for this period willbe eleven yen per share, to be paid on December 10, 2019.
Regarding the economic outlook, it is anticipated that the global economy will remain unpredictable, and there areconcerns that the Japanese economy will also slow.
Against such an economic backdrop, the Parker Group will continue to pursue policies to achieve the targets set in
the third mid-term management plan as we aim for sustainable growth.
We look forward to the continuing support of our shareholders.

Financial Highlights(unit: Million yen)
Net income attributable to parent company
shareholders

Net SalesOrdinary Income

59,900

7,600

5,800

Compared to same period in
previous year △7 . 1 ％Compared to the same period in theprevious year △2 . 3 ％Compared to same period in
previous year △ 0 . 0 ％Consolidated results▌ Sales (Unit: Million yen)
129,207▌ Operating income (u nit: Million yen)
End

InterimEnd

114,840

53,4662018
End/
interim

17,98459,9872019
End/
interim59,967

2020
Interim▌ Ordinary income (Unit: Million yen)
End

Interim17,023

8,663

8,196

2018
End/
interim2019
End/
interim

7,610

2020
Interim▌ Net income attributable to parent company(Unit: Million yen)End

20,750InterimInterim12,721

20,13011,424

10,392

10,0452018
End/interim

2019
End/
interim

6,370

9,262

2020
InterimCompany outline 【As of Sept. 30, 2019】2018
End/interim

6,013

5,875

2019
End/interim

2020
Interim

Directors【As of September 30, 2019】

Company name:NIHON PARKERIZING CO.,LTD.

ChairmanKazuichiSatomi

Chief Executive Officer

Established:

July 12, 1928

President

KentaroSato

Chief Operating Officer

Director

HayatoHosogane

General Manager of Corporate Planning
Division

Director

Hiroyasu Tamura

General Manager of Administration
Division

Director

Masayuki Yoshida

General Manager of Technical Division andCentral Research Laboratories

HEAD Office:15-1, 1-chome, Nihonbashi, Chuo-ku,
Tokyo

Capital:4.56 billion yen

Outside Director Shimako

EmoriEmployees

4,409

Outside Director Tatsuya

Mori

Outside Director Mitsuru

Matsumoto(consolidated):
Listing:First Section of Tokyo Stock Exchange

Audit and Supervisory Committee Member

Outside Director Masaharu Kubota

Audit and Supervisory Committee Member

Outside Director Koji

Audit and Supervisory Committee Member

Chika

Overview by Business Segment (Business outline & share of sales)
Other

Chemicals
Manufacture and sale of metal surface treatment
chemicals, rust preventive oil, rolling oil, paint, industrial
cleaners, and electroless nickel plating liquid, etc.

Building maintenance, transport, manufacture andsale of bolts, etc.

2,308 million yen（3.7%）

22,666 million yen（37.8%）

Total

59,967
million yen

Jobbing
Rust preventive jobbing, heat treatment jobbing, etc.

23,093 million yen (38.5%)

Equipment
Manufacture and sale of metal surface treatment
equipment, coating equipment, etc.

11,899 million yen (20.0%）

Stock information

Distribution by ownership（ 1）Total number of authorized shares（2）Number of shares outstanding（3）Number of shareholders at end of period（4）Principal shareholders
Name

300,000,000
132,604,524
4,030

Shares held (Unit: 1,000)

Ownership ratio (%)

NORTHERNTRUSTCO.（AVFC）RE FIDELITY FUNDS

8,510

6.92

Nippon Life Insurance Company

7,015

5.70

Meiji Yasuda Life Insurance Company

5,578

4.53

The Master Trust Bank of Japan, Ltd. (Trustaccount)

4,989

4.05

The Chiba Bank, Ltd.

4,765

3.87

Yugen Co., Ltd.

4,708

3.83

The SATOMI Scholarship Foundation

4,633

3.76

Mizuho Bank, Ltd.

4,227

3.43

Japan Trustee Services Bank, Ltd. (Trustaccount)

3,927

3.19Sumitomo Mitsui Banking Corporation

3,113

2.53

▌ No. of shares heldin own names▌ Financial
institutions

7.30%
9,691,000

39.43%
52,297,000▌ Individuals,
other

7.48%
9,918,000▌ Foreigncorporation

Number of shares

132,604,524

23.07%
30,599,000▌ Othercorporations▌ Securities
companies

22.11%
29,319,000

0.59%
776,000

Shareholders’ Memo
Fiscal year: April 1 to March 31（Note）1. Nihon Parkerizing holds 9,691,000 treasury shares. (Not included inRegular General Meeting of Shareholders: June

the above principal shareholders list.)
2. Shareholder ratios are calculated excluding the treasury shares.

Dividends: Year-end Dividend Record Date: March 31
Interim Dividend Record Date: September 30

Transition of share price

The method of public notice will be by electronic public notice;
Share price (JPY)2,500

Turnover(1,000 shares)
20,000provided however that, if notices cannot be made by electronic
public notice due to unavoidable circumstances,notices will be published in The Nikkei.

16,0002,000

12,000

1,500

8,000

1,000

4,000500＊For notices on Nihon Parkerizing website URL:
https://www.parker.co.jp/
S h ar e h o lder Re gi s t r y A dm i n i s tr at or an d S pe cial A cco u n t s A dm i n i st rato r:00
2017

2018

2019

Mitsubishi UFJ Trust and Banking Corporation
Contact:
Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation,

Address: 1-1 Nikko-cho, Fuchu-shi, Tokyo
Telephone: 0120（232）711（Free dial).

Postal address: Securities Agency Division, Mitsubishi UFJ
Trust and Banking Corporation, P.O. Box 29, Shin Tokyo
Post Office, 137-8081

IR Calendar
1 st Quarter

AprMayAnnouncements ofAnnual
Financial
Statements

2 nd Quarter

JunJulAug

3 rd Quarter

Sep

Financial
Announcement
Financial
Results Generalof 1st quarter
Results
Briefing Meeting of
Briefing Shareholders financial
statements

WebsitePlease refer to the Nihon Parkerizing Co., Ltd for
detailed IR information.
Nihon Parkerizing

検 索

https://www.parker.co.jp/Oct

Nov

4 th Quarter

Dec

Announcement of
2nd quarter
financialstatements

JanFebMar

Announcement of
3rd quarter financial
statements