Conference : January 30, 2007
NACHI –FUJIKOSHI CORP.

ContentsPart 1

Outline of the Closing

1 䋮Final Accounts for Fiscal 2006

2 to 82 䋮Plans for Fiscal 2007

9 to 14Part 2
Prospects for Fiscal 2007

15 to 25

䋱Outline : Consolidated Final Results Ended Nov.2006
䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥䋨 unit䋺100 million Yen 䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪌㩷㩿㪘㪀㩷 㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㩿㪙㪀㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪪㪸㫃㪼㫊䋱㪃䋷䋶䋰㪚㪿㪸㫅㪾㪼㫊㩷䋨㩼䋩㩿㪙㪀㩷㪄 㩿㪘㪀䋱㪃䋸䋶䋷㩿䋫䋶㪅䋱㩼㪀㩷㩷䋫䋱䋰䋷䋱䋵䋵㩿䋫䋱䋷㪅䋴㩼㪀㩷㩷 䋫䋲䋳㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㩿䋷㪅䋵㩼㪀㩷㩷㪚㫌㫉㫉㪼㫅㫋 㪜㪸㫉㫅㫀㫅㪾㫊㩿䋶㪅䋸㩼㪀㩷㩷㩷㩷 䋱䋲䋰㩿䋷㪅䋶㩼㪀㩷㩷㩷㩷 䋱䋴䋱㪪㫇㪼㪺㫀㪸㫃㩷㪧㫉㫆㪽㫀㫋䋳䋶䋫䋳㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪣㫆㫊㫊䋲䋸䋱䋶䂦䋱䋲㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋵䋱䋷䋳䋱䋳䋲㩿䋸㪅䋳㩼㪀㩷㩷㩿䋫䋱䋷㪅䋷㩼㪀㩷㩿䋫䋴䋱㪅䋰㩼㪀䋫䋲䋱䋫䋲䋱䋲䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥Managerial Data䋨 unit䋺100 million Yen 䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪌㩷㩿㪘㪀㩷 㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㩿㪙㪀㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪚㫆㫃㫃㪼㪺㫋㫀㫍㪼㩷㩷㪘㫊㫊㪼㫋㫊㩷㪚㪿㪸㫅㪾㪼㫊䋨㪙䋩䋭䋨㪘䋩䋱㪃䋶䋳䋹䋱㪃䋸䋶䋱䋫䋲䋲䋱㩿㪉㪎㪅㪎㩼㪀㩷 䋴䋵䋴㩿㪉㪏㪅㪍㩼㪀㩷 䋵䋳䋲㩿㪂㪇㪅㪐 㫇㫆㫀㫅㫋㪀 䋫䋷䋷䋴䋶䋹䋶䋰䋴䋫䋱䋳䋵䌄䋯䌅 㫉㪸㫋㫀㫆䋱㪅䋰 㫄㫌㫃㫋㫀㫇㫃㫀㪼㪻䋱㪅䋱 㫄㫌㫃㫋㫀㫇㫃㫀㪼㪻㪚㪸㫇㫀㫋㪸㫃㩷㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼㫊䋱䋴䋱䋱䋸䋰䋫䋳䋹㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅㩷㪚㫆㫊㫋䋷䋶䋸䋷䋫䋱䋰㪟㫌㫄㪸㫅㩷㩷㪩㪼㫊㫆㫌㫉㪺㪼㫊䋵㪃䋳䋸䋳 㫁㫆㪹㫊䋵㪃䋶䋱䋳 㫁㫆㪹㫊㩷䋫䋲䋳䋰 㫁㫆㪹㫊㪫㫆㫋㪸㫃㩷 㪜㫈㫌㫀㫋㫐㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋䋳

Summaries by Geographical Locations
䂾Sales䋨 unit䋺100 million Yen 䋩

Fiscal 2005
Performance
䋨A䋩

Fiscal 2006
Performance(B)

Non-consolidated

䋱,䋴䋴䋹

SalesChanges

䂾Sales Profit䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥䋨 unit䋺100 million Yen 䋩

Changes(B)䋨B䋩䋭䋨A䋩䋱,䋵䋴䋷䋫䋹䋷䋹䋶䋱䋱䋷䋫䋲䋱䋲䋳䋵䋲䋳䋹䋫䋴䋸䋹䋫䋱

Production䋳䋵䋷䋳䋴䋹䂦䋸䋱䋶䋱䋲䂦䋴

Domestic䋵䋹䋲䋵䋸䋸䂦䋴䋲䋴䋲䋱䂦䋳Americas䋱䋹䋵䋲䋳䋸䋫䋴䋳䋱䋵䋱䋹䋫䋴Europe䋸䋲䋹䋴䋫䋱䋲䂦䋱䋰䋫䋱Asia䋹䋱䋱䋲䋶䋫䋳䋵䋴䋴䋰㪦㫍㪼㫉㫊㪼㪸㫊䋳䋶䋸䋴䋵䋹䋫䋹䋱䋱䋸

䋲䋳

䋫䋵

Total

䋹䋶䋰

䋱,䋰䋴䋷䋫䋸䋷䋴䋲䋴䋴䋫䋲

Subtotal

䋲,䋴䋱䋰

䋲,䋵䋹䋴

䋫䋱䋸䋴䋱䋳䋸䋱䋶䋱䋫䋲䋳

Adjustment䂦䋶䋵䋰䂦䋷䋲䋷䂦䋷䋷䂦䋶䂦䋶䋰Consolidated Net Sales

䋱,䋷䋶䋰

䋱,䋸䋶䋷

䋫䋱䋰䋷

䋱䋳䋲䋱䋵䋵

䋫䋲䋳㪪㫌㪹㫊㫀㪻㫀㪸㫉㫀㪼㫊

Fiscal 2006
Performance

䋨B䋩䋭䋨A䋩Fiscal 2005
Performance
䋨A䋩

Factors Fluctuate Business Profit
100 million Yen

Increase in Sales& Production

䋲䋲䋰

Cost Reduction䋲䋰䋰䋫䋴䋰䂦䋱䋸䋴䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

Up Pricing On RawMaterials
Increase in Fixed Cost
Increase in䂦䋲䋶

Sales Administrative Expense䂦䋱䋵Effects of the withdrawal
from housing business 䂦䋶Sales Price䋱䋸䋰䋱䋶䋰

Reformation䋫䋱䋹

Effects of Currency

䋫䋱䋲Exchange Rate䋫䋱䋶䋱䋴䋰䋱䋵䋵

େYUZ䋱䋲䋰䋸䋰䌾䌾䋰䋱䋳䋲
Performance
2005

Performance2006

䋵Sales & Operating Profits by Business Segments(Unit: 100 million Yen)

Changes (%)(B) 䋭(A)Fiscal 2005(A)Performance

Fiscal 2006 (B)PerformanceTool䋳䋰䋳䋳䋱䋳㩿 䋫䋳㪅䋱㩼㪀㩷 䋫䋱䋰Machine Tool䋱䋷䋷䋱䋹䋲㩿 䋫䋹㪅䋰㩼㪀Robot䋱䋶䋷䋱䋸䋱㩿 䋫䋷㪅䋹㩼㪀㩷㩷 䋫䋱䋳Total䋶䋴䋸䋶䋸䋷㩿 䋫䋶㪅䋰㩼㪀㩷 䋫䋳䋸䋶䋷㩿䋫䋱䋷㪅䋷㩼㪀㩷㩷㩷㩷䋫䋱䋰䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

SalesTools & Machine

CuttingBusinessProfit䋨䋸.䋹%䋩

䋵䋷䋨䋹.䋸%䋩

䋫䋱䋵

SalesComponents

B e a r i n g䋵䋹䋱䋶䋳䋴㩿㩷㩷䋫䋷㪅䋳㩼㪀㩷㩷㩷㩷䋫䋴䋲

Hydraulic Equipment䋳䋲䋲䋳䋶䋳㩿䋫䋱䋲㪅䋸㩼㪀㩷㩷㩷㩷䋫䋴䋱T䋹䋱䋳䋹䋹䋷㩿 䋫䋹㪅䋲㩼㪀㩷㩷㩷㩷䋫䋸䋴䋸䋲㩿䋫䋲䋴㪅䋲㩼㪀㩷㩷 䋫䋱䋶ot

Businessal

Profit䋨䋷.䋲%䋩

䋶䋶

䋨䋸.䋲%䋩

Sales

Materials etcSpecial Steels䋱䋳䋷䋱䋳䋹㩿 䋫䋱㪅䋰㩼㪀㩷㩷㩷 䋫䋲Ot

her

䋶䋰

䋴䋳㩿䂦䋲䋸㪅䋵㩼㪀㩷㩷 䂦䋱䋷Total

䋱䋹䋸

䋱䋸䋲

㩿 䂦䋸㪅䋰㩼㪀 䂦䋱䋵

Business

Profit䋨䋴.䋷%䋩

䋹

䋨䋳.䋰%䋩

䋵㩿䂦䋴䋰㪅䋸㩼㪀䂦䋳Figures䋱㪃䋷䋶䋰䋱㪃䋸䋶䋷㩿 䋫䋶㪅䋱㩼㪀㩷䋫䋱䋰䋷

Gross Business Profits

䋨䋷.䋵%䋩 䋱䋳䋲

䋨䋸.䋳%䋩 䋱䋵䋵㩿䋫䋱䋷㪅䋴㩼㪀㩷 䋫䋲䋳

GrossSales䋶

Sales Figures by Main Business 䋨Machining & Cutting Tools䋩
Tools䋩
(Unit: 100 million Yen)䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

䋳.䋱% up㪊㪈㪊㪊㪇㪊

䋹.䋰% up䋷.䋹% up㪉㪎㪌㪈㪎㪊

CuttingTools㪈㪎㪎㪈㪏㪈㪈㪐㪉

㪈㪍㪎㪈㪋㪉

MachiningTools

Robots㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㩷㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍䋷

Sales Figures by Main Businesses 䋨Components & Special Steels䋩
Steels䋩(Unit: 100 million Yen)䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

䋷.䋳% up㪍㪊㪋㪌㪐㪈

䋱䋲.䋸% up㪌㪋㪍㪊㪍㪊

䋸.䋰% down㪊㪉㪉㪉㪏㪇

㪈㪎㪇

HydraulicEquipment

Bearings

㪈㪐㪏㪈㪏㪉Special Steels& Other㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃 㪝㫀㫊㪺㪸㫃㪝㫀㫊㪺㪸㫃㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍㪉㪇㪇㪋 㪉㪇㪇㪌㪉㪇㪇㪍Profit Planning :䋸as of Nov. 2007䋨 㫌㫅㫀㫋䋺㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㩷㩷㪰㪼㫅㩷䋩㪇㪎㩷㪧㫃㪸㫅㪪㪸㫃㪼㫊㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㩿㪘㪀㩷 㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㩿㪙㪀㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅䋱㪃䋸䋶䋷㪚㪿㪸㫅㪾㪼䋨㩼䋩㩿㪙㪀㩷㪄 㩿㪘㪀䋱㪃䋸䋸䋰 㩿 䋫䋰㪅䋷㩼㪀㩷㩷 䋫䋱䋳㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋳㩼㪀㩷㩷㪚㫌㫉㫉㪼㫅㫋㩷㩷㪜㪸㫉㫅㫀㫅㪾㫊㩿䋷㪅䋶㩼㪀㩷㩷㩷㩷 䋱䋴䋱㩿䋸㪅䋰㩼㪀㩷㩷㩷㩷 䋱䋵䋰㪪㫇㪼㪺㫀㪸㫃㩷㪧㫉㫆㪽㫀㫋䋶䋳䂦䋳㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪣㫆㫊㫊䋱䋶䋱䋴䂦䋲㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋷䋳䋷䋵䋱䋵䋵㩿䋸㪅䋸㩼㪀㩷㩷䋱䋶䋵㩿䋫䋶㪅䋱㩼㪀㩷㩷 䋫䋱䋰㩿䋫䋵㪅䋹㩼㪀㩷㩿䋫䋲㪅䋷㩼㪀䋫䋹䋫䋲䋹

Managerial Data㪇㪎㩷㪧㫃㪸㫅䋨 㫌㫅㫀㫋䋺㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㩷㩷㪰㪼㫅㩷䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㩿㪘㪀㩷 㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㩿㪙㪀㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅㪚㫆㫃㫃㪼㪺㫋㫀㫍㪼㩷㪘㫊㫊㪼㫋㫊㩷㪚㪿㪸㫅㪾㪼㫊䋨㪙䋩䋭䋨㪘䋩䋱㪃䋸䋶䋱䋱㪃䋹䋰䋰䋫䋳䋹㩿㪉㪏㪅㪍㩼㪀㩷 䋵䋳䋲㩿㪊㪇㪅㪐㩼㪀㩷 䋵䋸䋷㩿㪂㪉㪅㪊 㫇㫆㫀㫅㫋㩷㪀 䋫䋵䋵䋶䋰䋴䋶䋶䋰䋫䋵䋵䋱㪅䋱 㫄㫌㫃㫋㫀㫇㫃㫀㪼㪻䋱㪅䋱 㫄㫌㫃㫋㫀㫇㫃㫀㪼㪻䋱䋸䋰䋲䋰䋰䋫䋲䋰㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅㩷㪚㫆㫊㫋䋸䋷䋹䋷䋫䋱䋰㪟㫌㫄㪸㫅㩷㪩㪼㫊㫆㫌㫉㪺㪼㫊䋵㪃䋶䋱䋳 㫁㫆㪹㫊䋵㪃䋶䋵䋰 㫁㫆㪹㫊䋫䋳䋷 㫁㫆㪹㫊㪫㫆㫋㪸㫃㩷㪜㫈㫌㫀㫋㫐㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋䌄䋯䌅 㫉㪸㫋㫀㫆㪚㪸㫇㫀㫋㪸㫃㩷㩷㩷㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼㫊䋱䋰㪇㪎㩷㪧㫃㪸㫅
Projection by Geographical Locations 䋰䋷ᐕ⸘↹
䂾Sales䋨 unit䋺100 million Yen 䋩

Fiscal 2006
Performance
䋨A䋩

Fiscal 2007
Projection
䋨B䋩

䋱,䋵䋴䋷

Sales

䋨 unit䋺100 million Yen 䋩䋨B䋩䋭䋨A䋩Fiscal 2006
Performance
䋨A䋩

Fiscal 2007
Projection
䋨B䋩

䋨B䋩䋭䋨A䋩䋱,䋵䋵䋰䋫䋳

䋱䋱䋷䋱䋲䋲䋫䋴

䋲䋳䋹䋲䋴䋸䋫䋹䋹䋱䋱䋫䋲

Production䋳䋴䋹䋳䋳䋰䂦䋱䋹䋱䋲䋱䋶䋫䋴

Domestic䋵䋸䋸䋵䋷䋸䂦䋱䋰䋲䋱䋲䋷䋫䋶

Americas䋲䋳䋸䋲䋵䋳䋫䋱䋵䋱䋹䋲䋱䋫䋲Europe䋹䋴䋹䋲䂦䋲䋰䋲䋫䋲Asia䋱䋲䋶䋱䋳䋶䋫䋱䋰䋴䋷䋫䋲Overseas䋴䋵䋹䋴䋸䋲䋫䋲䋳䋲䋳䋳䋰䋫䋷

Total䋱,䋰䋴䋷䋱,䋰䋶䋰䋫䋱䋳䋴䋴䋵䋷䋫䋱䋳

Subtotal䋲,䋵䋹䋴

䋲,䋶䋱䋰䋫䋱䋶

䋱䋶䋱䋱䋷䋹䋫䋱䋷

Adjustment䂦䋷䋲䋷䂦䋷䋳䋰䂦䋳䂦䋶䂦䋱䋴䂦䋷

Consolidated Net
Sales䋱,䋸䋶䋷䋱,䋸䋸䋰䋫䋱䋳䋱䋵䋵

䋱䋶䋵䋫䋱䋰

Non-consolidated

Changes

䂾Sales ProfitChanges㪪㫌㪹㫊㫀㪻㫀㪸㫉㫀㪼㫊䋱䋱

Prospects by Business Segments (sales & business profit )䋨 unit䋺100 million Yen 䋩㪇㪎㩷㪧㫃㪸㫅

Fiscal 2006(A)Performance

Fiscal 2007(B)Projection

Changes (%)(B)䋭(A)

Sales

Tools & Machines

CuttingTool䋳䋱䋳䋳䋲䋵㩿 䋫䋳㪅䋸㩼㪀㩷 䋫䋱䋲MachineTool䋱䋹䋲䋱䋸䋰㩿 䂦䋶㪅䋷㩼㪀

Robot䋱䋸䋱䋱䋷䋰㩿 䂦䋶㪅䋱㩼㪀㩷㩷 䂦䋱䋱Total䋶䋸䋷䋶䋷䋵㩿 䂦䋱㪅䋸㩼㪀㩷 䂦䋱䋲䋶䋷㩿㩷㩷㩷㩷㩷㩷 䋭 㪀㩷㩷

BusinessProfit

䋨䋹.䋸%䋩

䋶䋷

䋨䋹.䋹%䋩

䂦䋱䋳䋭SalesComponents

B e a r i n g䋶䋳䋴䋶䋵䋵㩿㩷㩷䋫䋳㪅䋲㩼㪀㩷㩷㩷㩷䋫䋲䋱Hydraulic Equipment䋳䋶䋳䋳䋸䋵㩿 䋫䋶㪅䋰㩼㪀㩷㩷㩷㩷䋫䋲䋲T䋹䋹䋷䋱,䋰䋴䋰㩿 䋫䋴㪅䋲㩼㪀㩷㩷㩷㩷䋫䋴䋳ot

Businessal

Profit䋨䋸.䋲%䋩

䋸䋲䋨䋸.䋶%䋩

䋸䋹㩿 䋫䋷㪅䋳㩼㪀㩷㩷䋫䋶SalesMaterials etc.

Special Steels䋱䋳䋹䋱䋴䋴㩿 䋫䋳㪅䋵㩼㪀㩷㩷㩷 䋫䋵Ot

her䋴䋳䋲䋱㩿䂦䋵䋱㪅䋲㩼㪀㩷㩷 䂦䋲䋲

Total

䋱䋸䋲

䋱䋶䋵㩿 䂦䋹㪅䋴㩼㪀㩷㩷 䂦䋱䋷

Business

Profit䋨䋳.䋰%䋩

䋵

䋨䋵.䋵%䋩

䋹㩿䋫䋸䋰㪅䋰㩼㪀䋫䋴

Figures䋱㪃䋸䋶䋷䋱㪃䋸䋸䋰㩿 䋫䋰㪅䋷㩼㪀㩷 䋫䋱䋳

Gross Business Profits

䋨䋸.䋳%䋩 䋱䋵䋵䋨䋸.䋸%䋩 䋱䋶䋵㩿 䋫䋶㪅䋱㩼㪀㩷 䋫䋱䋰

GrossSales䋱䋲Plan : Factors Fluctuate Sales Figures㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㩷㪰㪼㫅㪇㪎㩷㪧㫃㪸㫅

Hydraulic Business䋫䋲䋲䋱㪃䋹䋲䋰

Housing Business䂦䋲䋴
Bearing Business
Machine Tool䊶Robot Business䋫䋲䋱䋱㪃䋹䋰䋰䂦䋲䋴Cutting Tool Business䋱㪃䋸䋸䋰Material Business䋫䋵䋱㪃䋸䋶䋰䌾䋰

䋫䋱䋲
䋱㪃䋸䋸䋰

େ୍U୏


䋱㪃䋸䋶䋷

PerformanceProjection

20062007䋱䋳Plan : Factors Fluctuate Business Profit㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅 㪰㪼㫅

Increase in Sales䋲䋰䋰& Production䋫䋱䋳䂦䋱䋰㪇㪎㩷㪧㫃㪸㫅

Cost Reduction

Increase in Fixed Cost䋫䋲䋲
䋱䋸䋰

䂦䋲䋰

Sales Price
Reformation

䋱䋶䋰

Up Pricing On Raw
Materials

䂦䋱䋰

Effects of䋫䋱䋰

housing business䋫䋶

Increase inSales Administrative Expense

䋫䋱Billion䋱䋶䋵䋱䋴䋰䌾䌾䋰䋱䋵䋵
PerformanceProjection

20062007䋱䋴

Prospects for Fiscal 2007
Part 2
1. Midrange Outlook for Fiscal 2007
2. Future Outlook and Stance for Nachi-Fujikoshi
3. Management Strategies
㽲 Expanding Capabilities
㽳 Promoting Engineering Business㽴 Policies for Investment in the Future
4. Management Goals

16 to 1718
1920 to 21
22
23 to 2425

䋱䋵

1. Performance for Fiscal 2006 and 2007㩿㪬㫅㫀㫋㪑㩷㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㩷㫐㪼㫅㪀㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪌㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅㩷䋱㪃䋷䋶䋰䋱㪃䋸䋶䋷䋱㪃䋸䋸䋰䋱䋵䋵㩿䋸㪅䋸㩼㪀㩷㩷 䋱䋶䋵㪥㪼㫋㩷㫊㪸㫃㪼㫊㩷㪦㫇㪼㫉㪸㫋㫀㫅㪾㩷㫀㫅㪺㫆㫄㪼䋱䋳䋲㩿䋷㪅䋵㩼㪀㩷㩷㪦㫉㪻㫀㫅㪸㫉㫐㩷㫀㫅㪺㫆㫄㪼㩷㩿䋸㪅䋳㩼㪀㩷㩷㩿䋶㪅䋸㩼㪀㩷㩷㩷㩷 䋱䋲䋰㩿䋷㪅䋶㩼㪀㩷㩷㩷㩷 䋱䋴䋱䋵䋱䋷䋳䋷䋵㪉㪇㪅㪋㪋㩷㫐㪼㫅㪉㪐㪅㪊㪏㩷㫐㪼㫅㪊㪇㪅㪈㪍㩷㫐㪼㫅㪎㩷㫐㪼㫅㪏㩷㫐㪼㫅㪏㩷㫐㪼㫅䋳䋴㪅䋲䋦䋲䋷㪅䋲䋦䋲䋶㪅䋵䋦㪥㪼㫋㩷㫀㫅㪺㫆㫄㪼㪥㪼㫋㩷㫀㫅㪺㫆㫄㪼㩷㫇㪼㫉㩷㫊㪿㪸㫉㪼㩷㪛㫀㫍㫀㪻㪼㫅㪻㩷㫇㪼㫉㩷㫊㪿㪸㫉㪼㩷㪛㫀㫍㫀㪻㪼㫅㪻㩷㫇㪸㫐㫆㫌㫋㩷㫉㪸㫋㫀㫆㩷㩿䋸㪅䋰㩼㪀㩷䋱䋵䋰䋱䋶

Transition in the Current Decade
Business Profit (100 million Yen)

Sales (100 million Yen)㪉㪃㪇㪇㪇㪈㪃㪏㪇㪇㪈㪃㪍㪇㪇㪈㪃㪌㪋㪈㪈㪃㪋㪉㪐㪪㪸㫃㪼㫊㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㪈㪃㪌㪊㪈 㪈㪃㪋㪎㪉㪈㪃㪎㪍㪇㪈㪃㪌㪏㪏㪈㪃㪋㪍㪍㪈㪌㪌㪈㪍㪌㪈㪏㪇㪈㪍㪇㪈㪋㪇㪈㪉㪇㪈㪃㪉㪇㪇㪈㪇㪇㪈㪃㪇㪇㪇㪈㪇㪇㪏㪇㪎㪍㪏㪇㪇㪍㪇㪍㪇㪇㪋㪇㪇㪈㪃㪏㪏㪇㪈㪊㪉㪈㪃㪊㪊㪐㪈㪃㪋㪇㪇㪈㪃㪏㪍㪎㪋㪍㪋㪏㪌㪍㪋㪇㪊㪏㪊㪋㪉㪇㪇㪉㪇㪇㪇㪈㪐㪐㪏dividend (Yen)㪏㪍㪊㪋㪉㪇㪈㪐㪐㪐

㪉㪇㪇㪇㪉㪇㪇㪈㪉㪇㪇㪉

㪉㪇㪇㪊㪉㪇㪇㪋

㪉㪇㪇㪌
㪎㪉㪇㪇㪍

㪉㪇㪇㪎

㪏㪏

㪌
㪊㪊㪊

㪊㪊䋱䋷

2. Future Outlook and Stance
Breakdown of Net
Sales Per Market

100 million yen㪉㪃㪇㪇㪇㪈㪏㪏㪅㪇㩷㪹㫀㫃㫃㫀㫆㫅㩷㫐㪼㫅䋱㪃䋸䋶䋷䋱㪃䋷䋶䋰䋱㪃䋵䋸䋸㪈㪃㪌㪇㪇㪈㪃㪇㪇㪇㪌㪇㪇䋱㪃䋴䋶䋶㪎㪍㪐㪌㪉㩼㪐㪉㪏㪌㪇㩼㪐㪈㪇㪋㪏㩼䊶Capital investment isresurgentIndustrial Machinery䊶Expansion inconstruction andaerospace machinery iscontinuing㪊㪌㪉㪉㪉㩼㪋㪊㪇㪉㪋㩼㪋㪏㪎㪉㪍㩼㪌㪉㪌㪉㪏㩼㪏㪏

㪏㪇

㪎㪎

㪏㪇

Electrical andelectronic products

㪊㪋㪉

㪊㪌㪇

㪊㪎㪇

㪊㪎㪌

㪊㪍㪌

Retail etc.

㪉㪇㪇㪊

㪉㪇㪇㪋

㪉㪇㪇㪌㪉㪇㪇㪍

㪉㪇㪇㪎

㪊㪇㪍
㪉㪈㩼
㪋㪐

㪇

㪎㪐㪏
㪌㪇㩼

㪏㪏㪇
㪌㪇㩼

Automobiles
䊶Worldwide production isbullish

㪉㪇㪇㪏
䋱䋸

3. Management Strategies(1) Expanding Capabilities
䊶 Strengthening relationships with suppliers,
allied companies, distributors and dealers.
(2) Promoting Engineering Business䊶 Focusing expansion of the engineeringbusiness in the Japanese, North Americanand Asian markets.
(3) Policies for Investment in the Future䊶 Proactive investment in research anddevelopment, employee education and aproduction system for products that have asuperior competitive advantage.
䋱䋹(1) Expanding Capabilities 1
Business Transactions with Allied Companies
100 million yen

Expand Alliances㪉㪇㪇䊶Expand into group companies
䊶Expand into suppliers andperipheral device makers

㪉㪉㪊㪈㪌㪇
㪈㪇㪇

㪈㪎㪌

㪈㪐㪏

㪈㪊㪎

㪌㪇
㪇
100 million yen

㪏㪇Business Transactions with NACHI Dealers㪥㪸㪺 㪿 㫀㩷㪪㫐㫄 㪹㫀㫆㪥㪸㪺 㪿 㫀㩷㪨㫌 㪼 㫊㫋㪥㪸㪺 㪿 㫀㩷㪤 㪸㫋 㪼 㫉 㫀㪸㫃 㪥㪸㪺 㪿 㫀㩷㪪㫐㫊㫋 㪼 㫄㪍㪇Building Up Distribution
Channels䊶Distributors
Domestic NACHI group companies:
148 companies
Overseas NACHI group companies:55 companies

㪋㪇䊶Dealers: 144 companies
䊶Major NACHI Dealers
Top dealer in each field㪉㪇㪇㪉㪇㪇㪊㪉㪇㪇㪋㪉㪇㪇㪌㪉㪇㪇㪍㪉㪇㪇㪎䋲䋰(1) Expanding Capabilities 2
Number of VA/VE proposals from suppliersCount㪈㪃㪇㪇㪇
㪈㪃㪇㪇㪐

㪏㪇㪇
㪍㪇㪇
㪋㪇㪇

Bolstering Partnerships
䊶Suppliers: 1,410 companies
䊶Expand connections with goodsuppliers to grow business
opportunities㪎㪈㪋㪋㪊㪊

㪌㪋㪌㪉㪇㪇㪇
Visitors㪈㪉㪃㪇㪇㪇

Number of visitors to NACHI's complex㪈㪇㪃㪇㪇㪇㪈㪈㪃㪏㪇㪇㪈㪉㪃㪇㪇㪇
㪈㪈㪃㪇㪇㪇㪏㪃㪇㪇㪇㪍㪃㪇㪇㪇

㪏㪃㪊㪇㪇

㪋㪃㪇㪇㪇
㪉㪇㪇㪊

㪉㪇㪇㪋㪉㪇㪇㪌

㪉㪇㪇㪍

㪉㪇㪇㪎

Providing places to dobusiness䊶 NACHI complex activities
Providing locations(w/business facilities) forinteraction between
businesses, industries andregions
䊶Business information exchange
Creating hybrid newbusiness models䋲䋱(2) Developing Engineering Business
Developing engineering as a core business by enlarging
engineering service systems domestically and overseas.
(1) Established NACHI Engineering in
Ayase, Kanagawa prefecture䊶 Expanding hybrid engineering services
for regrinding and recoating tools,
robot, machine tools, heat treatment
equipment, bearings, hydraulicequipment and specialty steels(2) Established engineering systems in
USA and China for globaldevelopment

NACHI Precision North Carolina

NACHI Engineering (April 2007 open)

NACHI (Shanghai) Precision Tools Co., Ltd.

䋲䋲(3) Managing for Investment in the Future 1
Investing for the future by educating personnel, expanding overseas,
boosting research & development to grow our production system forproducts with primary competitive advantages.

(1) Establishing a dominant production system for products that have a
primary competitive advantage
䊶Construction machinery and hydraulic equipment for utilities
䊶Precision machine tools (broaches and gear cutting tools)
䊶High performance bearings for industrial machinery䊶Robots, specialty steels and other products

New Hydraulics Factory (Namerikawa groundbreaking, autumn 2007)(2) Boosting research and development capabilities
Research and development spending (in real terms)
2005: 5.4, 2006: 6.7, 2007: 8.0 billions of yen
䊶Growing operations in parts business by applying materials and heat treatment
technology
䊶Product manufacturing using machine tool and robot technology
Intra-company sales 2003: 6.3, 2006: 11.0, 2007: 13.0 billions of yen
䋲䋳(3) Managing for Investment in the Future 2(3) Expansion in overseas operations㪘㫊㫀㪸䊶Ratio of net sales overseas is 31%
㪊㪍㩼2001㪘㫄㪼㫉㫀㪺㪸㫊43.3 billion㪌㪇㩼㸢 in real terms it is 55%yen
䊶Overseas networks㪜㫌㫉㫆㫇㪼
㪈㪋㩼
2001: 35 㸢 2006: 46 locations
䊶Expand overseas operations in Asia starting from 2007(4) Bolstering personnel㪘㫊㫀㪸㪋㪌㩼

2006
58.2 billionyen㪘㫄㪼㫉㫀㪺㪸㫊㪋㪇㩼㪜㫌㫉㫆㫇㪼
㪈㪌㩼Promoting each skill for each person

Progress of engineers getting qualifications
Participants

Cumulative participants㪌㪇㪇㪋㪇㪇㪊㪇㪇㪈㪃㪇㪇㪇

㪚㪼㫉㫋㫀㪽㫀㪼㪻㩷㫊㫋㪸㪽㪽㩷㩿㫋㫆㫋㪸㫃㩷㫇㪼㫆㫇㫃㪼㪀㪚㫌㫄㫌㫃㪸㫋㫀㫍㪼㩷㫇㪸㫉㫋㫀㪺㫀㫇㪸㫅㫋㫊

People㪏㪇㪇㪍㪎㪌㪋㪎㪍

㪌㪊㪇

㪋㪏㪍

㪊㪌㪇
㪉㪎㪏

㪉㪇㪇
㪈㪇㪇㪉㪇

㪏㪇㪇

䊶Passing on technical expertise㪍㪇㪇䊶Increasing competitiveness ofpersonnel㪋㪇㪇㪉㪇㪇㪈㪈㪋

㪈㪍

People䊶Boosting research and training
䊶Raising motivation㪇㪇㪉㪇㪇㪊㪉㪇㪇㪋㪉㪇㪇㪌㪉㪇㪇㪍䋲䋴㪉㪇㪇㪎

䋴䋮Management Goals㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪊㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋䋷㪅䋶㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼 㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅䋱䋵㪅䋵䋱䋶㪅䋵㩿㪹㫀㫃㫃㫀㫆㫅㩷㪰㪼㫅㪀㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㩷㪝㫀㫊㪺㪸㫃㪉㪇㪈㪇㪫㪸㫉㪾㪼㫋㪈㪇䋦 㪪㪺㪸㫃㪼䋵䋮䋲䋦䋸䋮䋳䋦䋸䋮䋸䋦㩿㩼㪀㫛㪈㪇㩷㪛㫀㫍㫀㪻㪼㫅㪻㪆㫊㪿㪸㫉㪼㩿㪰㪼㫅㪀䋳䋸䋸㪸㫅㪻㩷㪸㪹㫆㫍㪼䌄䌏䌅㩿㩼㪀䋲䋮䋴䋦䋳䋮䋷䋦䋳䋮䋴䋦䋳䋦 㪪㪺㪸㫃㪼䋲䋵㪿䌴䌴䌰㪑㪆㪆㫎㫎㫎㪅㫅㪸㪺㪿㫀㪄㪽㫌㫁㫀㫂㫆㫊㪿㫀㪅㪺㫆㪅㫁㫇㪆Contact : Corporate Planning Dept.
䌔䌅䌌 䋰䋳䋭䋵䋵䋶䋸䋭䋵䋲䋱䋰䌆䌁䌘 䋰䋳䋭䋵䋵䋶䋸䋭䋵䋲䋱䋵E-mail 䋺 kikaku@nachi-fujikoshi.co.jp
All the future business outlook and business plans in this presentation are premised onrecent economic circumstances and business policy settled currently.
Therefore, please keep in mind that the actual business performance could be differed by plural fluctuating
parameters such as seesawing demand change or currency exchange rate.