Explanatory Meeting on
Mid-term Account Settlement for
the Term ended November 2012
July 10, 2012

Fujikoshi Corp.
Contents

1. General overview of businessperformance
2. Mid-term account settlement forfiscal 2012
Outline of Plan for full year offiscal 2012

2 to 6
7 to 23䋱Results of first half year and Plan for fullyear of 2012

General overview ofbusiness performance(in 100 million yen)

Fiscal 2011
First halfyear

Fiscal 2012
First halfyear

Full year(Rate of increase)

Full year䋨䋫䋷㪅䋹㩼䋩Sales䋷䋸䋹

Operating profit(Ratio)䋱㪃䋶䋶䋰䋸䋵䋱㩿䋹㪅䋱㩼㪀 䋷䋱 㩿䋸㪅䋸㩼㪀㩷㩷䋱䋴䋶

Current profit(Ratio)㩿䋸㪅䋰㩼㪀 䋶䋳 㩿䋷㪅䋸㩼㪀㩷㩷䋱䋲䋹Net profit of theterm䋵䋱䋨䋫䋵㪅䋴㩼䋩䋱㪃䋷䋵䋰䋨䂦䋱䋷㪅䋱䋦䋩䋨䂦䋱䋱㪅䋲䋦䋩㩿䋷㪅䋰㩼㪀㩷㩷䋵䋹㩿䋷㪅䋴㩼㪀㩷䋱䋳䋰䋨䂦䋱䋹㪅䋸䋦䋩䋨䂦䋱䋱㪅䋷䋦䋩㩿䋶㪅䋰㩼㪀㩷㩷䋵䋰㩿䋶㪅䋵㩼㪀㩷䋱䋱䋴䋨䂦䋴䋸㪅䋵䋦䋩䋨䂦䋳䋷㪅䋱䋦䋩䋱䋰䋰䋲䋶䋶䋳䋲

Transition of performance and Mediumterm business objective

General overview ofbusiness performance

Operating profit (100 million yen)

Sales (100 million yen)㪉㪃㪌㪇㪇㪈㪏㪇

Salesᄁ਄㜞
Operating profit༡ᬺ೑⋉㪈㪍㪎㪈㪌㪌㪉㪃㪇㪇㪇㪈㪋㪍㪈㪊㪉㪈㪃㪌㪇㪇㪉㪃㪇㪋㪏㪎㪍㪊㪋㪈㪌㪇

㪈㪇㪇㪈㪃㪎㪌㪇㪏㪉

㪈㪃㪐㪊㪍㪈㪃㪍㪍㪇㪈㪃㪊㪋㪏㪈㪃㪏㪍㪎㪊㪏㪈㪊㪇㪉㪃㪈㪇㪇㪈㪇㪇㪈㪃㪇㪇㪇㪈㪌㪌㪉㪇㪇㪈㪃㪇㪎㪌㪈㪃㪎㪍㪇㪌㪇㪈㪃㪌㪏㪏㪈㪃㪋㪎㪉㪌㪇㪇㪈㪃㪋㪍㪍㪈㪃㪊㪊㪐㪇䂦㪊㪉㪇䂦㪌㪇㪇㪈㪇㪉㪇㪊㪇㪋㪇㪌㪇㪍㪇㪎㪇㪏㪇㪐㪈㪇㪈㪈㪈㪉㪈㪊䋳

General overview ofExpand the emerging countries market businessperformance

Sales (100 million yen)䂾Transition of sales to emerging countries
Ratio to theprevious term

Central and North Americaਛධ☨
Ratio to theprevious term

East Europe᧲᰷India and Middle and Near East䍐䍻䍢䍼䍃ਛㄭ᧲

㪍㪇㪇

䋫㪊㪉㩼

ASEAN and Oceania䍏䍜䍏䍻䍃䍓䍜䍏䍤䍏

Chinaਛ࿖
㪊㪉㪇
㪊㪇㪇
㩿㪈㪎㩼㪀
Ratio (16%)

㪋㪍㪏䋨㪉㪎㩼䋩

㪋㪎㪈
䋨㪉㪏㩼䋩

East Asia᧲䍏䍚䍼䍏㪋㪇㪇

䂦㪈㩼

㪊㪍㪌
㩿㪈㪏㩼㪀

㪊㪌㪍
㩿㪉㪍㩼㪀
㪉㪌㪈
㩿㪉㪊㩼㪀

㪉㪇㪇

㪇
䋰䋶

䋰䋷

䋰䋸

䋰䋹

䋱䋰

䋱䋱

䋱䋲

䋲䋰䋱䋳ᐕ
2013
䋴

Upgrading and expanding business basesin the emerging countries markets

General overview ofbusiness performance(1) Chinese market
Newly construct a core production
base in China
Nachi (Jiangsu) Industries Co., Ltd.
To be completed and start
production in January 2013
Product line: Hydraulic equipment
for construction and industrial
machinery, CCV, small cutting tools, etc.

(2) Indian market
Newly construct our third plant inIndia
Nachi KG Technology India
To be completed in March 2013;
Start production in July 2013
Product line: Bearings forautomobiles and industrial
machinery䋵Expand the products lineup

General overview ofbusiness performance

Upgrade and expand
assortment and lineup of
fast-moving goods(1) Super-high speed robot “SRA Series”
Expand the series 㸢 Cover the full weldingline(2) Round tools
Expand high-performance flat drills lineup function(3) Hydraulic equipment forconstruction machinery
Jumboize units to target the emerging
countries market
䋶Outline of Fiscal 2012
Mid-term Account Settlement

䋷Overview of fiscal 2012 mid-term accountsettlement

2012 Mid-term(in 100 million yen)

Fiscal 2011
First half year
(A)

Fiscal 2012
First half year(B)䋷䋸䋹䋸䋵䋱

㩿䋫䋷㪅䋹㩼㪀

䋫䋶䋲

Sales

Increase/Decrease(percentage)(B)  (A)Operating profit㩿䋹㪅䋱㩼㪀䋷䋱㩿䋷㪅䋰㩼㪀䋵䋹䋨䂦䋱䋷㪅䋱㩼䋩䂦䋱䋲

Current profit㩿䋸㪅䋰㩼㪀䋶䋳㩿䋶㪅䋰㩼㪀䋵䋰䋨䂦䋱䋹㪅䋸㩼䋩䂦䋱䋲

Extraordinaryprofit䋰䋰䂦䋰

Extraordinaryloss䋱䋰䂦䋱Net profit of theterm䋵䋱䋲䋶䋨䂦䋴䋸㪅䋵㩼䋩䂦䋲䋴䋸

B/S & Management index

2012 Mid-term(in 100 million yen)

Fiscal 2011
First half year(A)Collective assets
Accounting capital䋱㪃䋸䋱䋳

Increase/Decrease(percentage)(B)  (A)

䋱㪃䋹䋷䋱

䋫䋱䋵䋸

䋨䋳䋱㪅䋲㩼䋩

䋵䋶䋶䋨䋳䋱㪅䋰㩼䋩

䋶䋱䋲䋫䋴䋵

(0.8 fold)䋶䋵䋲

(0.8 fold)

䋷䋳䋵

䋫䋸䋳

(Capital-to-assets ratio)

Interest-bearing
liabilities (Net D/E ratio)

Fiscal 2012
First half year(B)Capacity investment

䋵䋲

䋵䋹

䋫䋶

Allowance fordepreciation䋴䋶䋴䋹

䋫䋳

䋵㪃䋶䋰䋱

䋵㪃䋸䋳䋴

䋫䋲䋳䋳

82 yen112 yen78 yen104 yenYen value increased by 4 yen
per dollar
Yen value increased by 8 yen
per Euro

Number of employees
and officers
Foreign exchange rates(US dollar)(Euro)

䋹

Sales by regions and market areas 2012 Mid-term
䂾Sales by regions

100 million
yen䂾Sales by market areas䋸䋵䋱䋹䋰䋰

䋷䋸䋹Europe 䋳䋹䋸䋵䋱Europe 䋴䋲䋫䋸㪅䋴㩼

America 䋸䋰䋫䋴㪅䋵㩼䋷䋸䋹
Energyinfrastructure

America 䋷䋶䋱䋴䋲䋱䋳䋶
Asia 䋱䋸䋹䋶䋰䋰䋫䋴㪅䋴㩼Energyinfrastructure

Industrial
machinery /Market sales䂦䋳㪅䋶㩼

Asia 䋱䋹䋶

Industrial
machinery /Market sales䂦䋴㪅䋶㩼䋲䋷䋱䋲䋸䋴Japan 䋴䋷䋵Japan 䋵䋳䋸䋫䋱䋳㪅䋲㩼

Automobiles

䋳䋰䋰䋫䋱䋸㪅䋷㩼䋴䋳䋸Automobiles

䋳䋶䋹䋰

Fiscal 2011
Mid-term

Fiscal 2012
Mid-term

Fiscal 2011
Mid-term

Fiscal 2012
Mid-term

Sales by business categories䋱䋰2012 Mid-term(Machinery and tools)(in 100 million yen)

Cutting tools

Machine tools㪈㪌㪇Robots

8.2% increase over previousterm

㪈㪊㪌
㪈㪉㪌

㪈㪇㪇

31.6% increase㪈㪊㪉㪈㪈㪌㪈㪈㪉

㪈㪇㪌㪐㪍㪎㪐

9.7% decrease㪋㪋

㪌㪇㪋㪏

㪋㪐

2nd half

2012
1st half㪊㪍2011
1st half㪊㪋

2nd half

2012
1st half

2nd half

2011
1st half

2nd half

2010
1st half

2012
1st half

2nd half

2011
1st half

2nd half

㪇2010
1st half

㪋㪋2010
1st half㪌㪌䋱䋱Sales by business categories

2012 Mid-term(Parts, materials, etc.)(in 100 million yen)

Bearings

4.5% increase㪊㪇㪇㪊㪇㪏

㪊㪈㪈㪊㪉㪐Hydraulic equipment

Others

㪊㪉㪌

㪉㪎㪏

㪉㪇㪇
9.1% increase㪈㪋㪎 㪈㪍㪍 㪈㪍㪇
7.0% increase

㪈㪊㪍

㪈㪇㪇

㪏㪇

㪎㪋

2012
1st half㪍㪐2011
1st half

2nd half

2010
1st half

2012
1st half

2nd half

2011
1st half

2nd half

2010
1st half

2012
1st half

2nd half

2011
1st half

2nd half

㪇2010
1st half㪌㪈㪌㪐

2nd half㪈㪇㪐䋱䋲Sales and operating profits by business segments2012 Mid-term(in 100 million yen)

Fiscal 2011
First half year(A)Fiscal 2012
First half year(B)Increase/Decrease䋲䋶䋰䋲䋹䋰㩿䋫䋱䋱㪅䋶㩼㪀㩷 䋫䋳䋰䋲䋶㩿䋫䋲䋹㪅䋵㩼㪀㩷䋴䋸䋶㩿䋫䋶㪅䋰㩼㪀㩷 䋫䋲䋷䋲䋱䋨䂦䋴䋸㪅䋴㩼䋩 䂦䋱䋹(%) (B)䋭(A)Machinery and Cutting
Tools business
Sales
Operating profit

䋨䋸.䋰%䋩

䋲䋰

䋨䋹.䋲%䋩

䋫䋶Parts business
Sales
Operating profit䋴䋵䋹䋨䋸.䋹%䋩

䋴䋱

䋨䋴.䋴%䋩

Materials, etc.
Sales
Operating profit䋶䋹䋨䋱䋴.䋲%䋩

Total sales
Total operating profits䋹䋨䋱䋵.䋰%䋩

䋷䋸䋹
䋨䋹.䋱%䋩

䋷䋱䋨䋷.䋰%䋩

䋷䋴㩿䋫䋷㪅䋰㩼㪀䋫䋴䋱䋱㩿䋫䋱䋲㪅䋹㩼㪀䋫䋱䋸䋵䋱㩿䋫䋷㪅䋹㩼㪀㩷 䋫䋶䋲䋵䋹䋨䂦䋱䋷㪅䋱㩼䋩 䂦䋱䋲䋱䋳Factors for increse/decrease in operating profits

2012 Mid-term(Increase in profits: (Decrease in profits:3.7 billion yen)
4.9 billion yen)

100 millionyen

Cost cutting,etc.
+13

䋱䋰䋰

Improvementof capacity
utilization+24䋸䋰

Increase in fixed cost andsales cost and other factors
Effect of exchange rates 䂦䋱䋱
Decline of selling prices 䂦䋷
Rise of raw
material prices 䂦䋳䋶䋰䂦 1.2billion yen䋷䋱

䋵䋹

䋴䋰

䋲䋰

䋰

Fiscal 2011
First halfyear

Fiscal 2012
First halfyear䋱䋴

Forecast for
Full Fiscal Year of 2012䋱䋵Plan for fiscal 2012 (Review)

Plan for full year(in 100 million yen)

Fiscal 2011
Results (A)SalesOperating profits
Current profit

Increase/Decrease(percentage)(B)  (A)Fiscal 2012
Results (B)䋱㪃䋶䋶䋰䋱㪃䋷䋵䋰㩿䋫䋵㪅䋴㩼㪀㩷䋫䋸䋹㩿䋸㪅䋸㩼㪀䋱䋴䋶㩿䋷㪅䋴㩼㪀㩷䋱䋳䋰㩿䂦䋱䋱㪅䋲㩼㪀䂦䋱䋶㩿䋷㪅䋸㩼㪀䋱䋲䋹㩿䋶㪅䋵㩼㪀㩷䋱䋱䋴㩿䂦䋱䋱㪅䋷㩼㪀䂦䋱䋵

Extraordinaryprofit䋰䋰䂦䋰

Extraordinaryloss䋷

䋰䂦䋷

䋱䋰䋰

䋶䋳

Net profit of theterm㩿䂦䋳䋷㪅䋱㩼㪀䂦䋳䋷䋱䋶

Financial data

Plan for full year(in 100 million yen)

Fiscal 2011
Results(A)Collective assets

Fiscal 2012
Plan(B)

Increase/Decrease(percentage)(B)  (A)䋱㪃䋷䋹䋷䋱㪃䋹䋶䋰䋫䋱䋶䋲䋨䋳䋲㪅䋴㩼䋩䋵䋸䋱䋨䋳䋳㪅䋱㩼䋩 䋶䋴䋹䋫䋶䋷(0.7 fold)䋵䋵䋷(0.7 fold) 䋶䋵䋰䋫䋹䋲

Capacity investment䋱䋰䋱䋱䋵䋰䋫䋴䋸

Allowance fordepreciation䋹䋵䋱䋰䋰䋫䋵䋵㪃䋶䋴䋵

䋵㪃䋸䋵䋰

䋫䋲䋰䋵

81 yen112 yen78 yen105 yenYen value increased by 3 yen
per dollar
Yen value increased by 7 yen
per Euro

Accounting capital(Capital-to-assets ratio)

Interest-bearing
liabilities (Net D/E ratio)

Number of employees
and officers
Foreign exchange rates(US dollar)(Euro)

䋱䋷

Sales by regions and market areas Plan for full year
䂾Sales by regions

100 millionyen

䂾Sales by market areas䋱㪃䋷䋵䋰䋱㪃䋶䋶䋰

America 䋱䋷䋳 䋫䋸㪅䋳㩼Energyinfrastructure䋱㪃䋶䋶䋰Europe 䋸䋳䋱㪃䋵䋰䋰

America 䋱䋵䋹䋱㪃䋷䋵䋰䋫䋴㪅䋲㩼Europe 䋸䋷䋲䋹䋰䋲䋸䋵
Asia 䋴䋱䋰

Industrialmachinery /Market sales䋫䋳㪅䋱㩼Asia 䋳䋹䋷

Industrial
machinery /Market sales䋱㪃䋰䋰䋰䂦䋵㪅䋹㩼䋵䋶䋰䋵䋹䋵Japan 䋱㪃䋰䋱䋹

Automobiles

Japan 䋱㪃䋰䋸䋰 䋫䋶㪅䋰㩼Automobiles

䋹䋰䋰䋷䋸䋰䋵䋰䋰䋰䋫䋱㪅䋸㩼Energyinfrastructure

Fiscal 2011
Results

Fiscal 2012
Plan

Fiscal 2011
Results

䋫䋱䋵㪅䋴㩼

Fiscal 2012
Plan

Sales by business categories䋱䋸Plan for full year

(Machinery and tools)(in 100 million yen)

Cutting Tools

Machine tools

RobotsRatio to theprevious term
7.9% increase㪊㪇㪇㪊㪈㪈㪉㪎㪏㪊㪈㪏
13.1% increase㪉㪌㪎㪉㪇㪇㪉㪈㪏㪉㪈㪈㪈㪐㪉

6.2% increase㪈㪌㪌㪈㪇㪇㪈㪍㪈㪈㪊㪌㪈㪇㪊㪈㪉㪊㪍㪌㪇㪇㪏 㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉㪇㪏 㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉㪇㪏㪈㪈㪇㪎㪇㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉䋱䋹Sales by business categories

Plan for full year

(Parts, materials, etc.)(in 100 million yen)

Bearings
3.9% increase㪍㪇㪇Hydraulic equipmentOthers㪍㪍㪎
㪍㪐㪍
㪍㪋㪈
㪌㪏㪍

㪋㪇㪇
4.4% increase㪋㪌㪈㪊㪎㪊

㪊㪉㪏㪊㪈㪋
0.7% decrease㪉㪇㪇㪉㪋㪌㪈㪐㪊㪈㪌㪇 㪈㪋㪐㪈㪍㪐㪐㪉㪇㪇㪏 㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉㪈㪈㪇㪇㪏 㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉㪇㪏 㪇㪐 㪈㪇 㪈㪈 㪉㪇㪈㪉䋲䋰Sales and operating profits by business segmentsPlan for full year(in 100 million yen)

Fiscal 2011
Results (A)Fiscal 2012
Plan (B)

Increase/Decrease(%) (B)䋭(A)Machinery and Cutting
Tools business
Sales
Operating profit䋵䋵䋴䋨䋸.䋱%䋩

䋴䋴

䋨䋹.䋷%䋩

䋶䋰䋶㩿䋫䋹㪅䋳㩼㪀䋫䋵䋱䋵䋹䋨䋫䋳䋱㪅䋳㩼䋩䋫䋱䋴䋹䋹䋵㩿䋫䋴㪅䋱㩼䋩䋫䋳䋸䋴䋸䋨䂦䋳䋹㪅䋳㩼䋩䂦䋳䋱䋱䋴䋹㩿䂦䋰㪅䋷㩼㪀䂦䋱䋲䋳䋨䋫䋲㪅䋵㩼䋩䋫䋰䋱㪃䋷䋵䋰㩿䋫䋵㪅䋴㩼㪀䋫䋸䋹䋱䋳䋰䋨䂦䋱䋱㪅䋲㩼䋩䂦䋱䋶

Parts business
Sales
Operating profit䋹䋵䋶䋨䋸.䋳%䋩

䋷䋹

䋨䋴.䋸%䋩

Other businesses
Sales
Operating profit䋱䋵䋰䋨䋱䋵.䋰%䋩

Total sales
Total operating profits䋲䋲䋨䋱䋵.䋴%䋩

䋱㪃䋶䋶䋰
䋨䋸.䋸%䋩

䋱䋴䋶

䋨䋷.䋴%䋩

䋲䋱Factor for increase/decrease in operating profits Plan for full year
(Increase in profits: (Decrease in profits:
6.2 billion yen)
7.8 billion)

100 millionyen䋲䋰䋰

Increase in
fixed costs
and sales
administrative
expenses

Cost cutting䋫䋲䋸䂦䋴䋰

Improvementof capacity
utilization

Effect ofexchange
rates䂦䋱䋷

䋫䋳䋴䋱䋵䋰

Decline ofselling prices
䂦䋱䋵

䋱䋴䋶

䂦 1.6 billion

Raw material
prices 䂦䋶䋱䋳䋰䋰
Fiscal 2011
Results

Fiscal 2012
Plan䋲䋲

Aiming at the Medium-term business objective

Plan for full year
Operating profit(100 million yen)

Sales (100 million yen)

㪉㪃㪌㪇㪇

㪉㪇㪇
Salesᄁ਄㜞
Operating profit༡ᬺ೑⋉㪉㪃㪇㪇㪇㪈㪍㪎㪈㪌㪌㪈㪌㪌㪈㪋㪍 㪈㪊㪇㪈㪊㪉㪈㪌㪇㪈㪇㪇㪈㪃㪌㪇㪇㪈㪃㪇㪇㪇㪉㪃㪇㪋㪏㪎㪍㪊㪋㪈㪃㪐㪊㪍㪈㪇㪇㪈㪃㪍㪍㪇㪈㪃㪊㪋㪏㪈㪃㪏㪍㪎㪊㪏㪈㪃㪎㪌㪇㪏㪉㪈㪃㪇㪎㪌㪈㪃㪎㪍㪇㪌㪇㪈㪃㪌㪏㪏㪌㪇㪇㪈㪃㪋㪎㪉 㪈㪃㪊㪊㪐㪈㪃㪋㪍㪍㪇䂦㪊㪉㪇㪇㪈㪇㪉㪇㪊㪇㪋㪇㪌㪇㪍㪇㪎㪇㪏㪇㪐㪈㪇㪈㪈㪈㪉䂦㪌㪇㪈㪊 ᐕ䋲䋳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The future business prospects, business plans and other matters described inthis document have been worked out based on certain assumptions including
the current economic environment, business policy and other factors.
Please understand, therefore, that the actual business performance can bedifferent from this prospective performance due to various factors including
fluctuations in demands and exchanges.