BUSINESS REPORT
2016
December 1, 2015 to November 30, 2016

NACHI-FUJIKOSHI CORP.
Securities Code: 6474

TO OUR SHAREHOLDERS
We would like to express our sincere gratitude to our shareholders
for your continued support and patronage.
We report the results for the NACHI-FUJIKOSHI Group for theperiod from December 1, 2015 to November 30, 2016.

Business Environment
In spite of the economic recovery observed in the developed
countries led by the United States, the business environment
surrounding the NACHI-FUJIKOSHI Group during this ﬁscal year
has been under a tough situation as a whole due to factors such as
the slowdown in economic grow th in emerging economies
including China.

Business Progress and Results
Given this environment, the NACHI-FUJIKOSHI Group has been
making full use of its strength as a comprehensive machinery
manufacturer encompassing cutting tools, machine tools, robots,
bearings, hydraulic equipment, and special steel businesses topromote initiatives to ﬁnd new customers, mainly new users inoverseas countries, to deploy new products, and to expand its existingproduct range with the aim of increasing sales. In addition, we havebeen continuously making effort to reduce the total cost throughinitiatives to improve productivity, while strengthening the frameworkfor development, sales and production focusing on the robots
department, with an eye toward the future expansion of business.
However, sales in the current consolidated ﬁscal year were
211.4 billion yen (down 3.2% from the previous period), as the yen
continued to be strong. Of this, sales in the Japanese market were
112.9 billion yen (down 2.6%), while overseas sales totaled 98.5
billion yen (down 4.0%).
In terms of proﬁtability, operating proﬁt, ordinary income andnet income attributable to owners of the parent were 11.1 billion
yen (down 41.2%), 7.7 billion yen (down 55.2%) and 3.9 billion yen(down 66.1%), respectively.

manufacturing company" in 2011. Since then we have been taking
initiatives to strengthen operational foundations in the aim toachieve our 2020 performance target of 400 billion yen in sales
and 60 billion yen in operating income.
In terms of the future prospects, it is expected that mid- tolong-term demand would decrease for some of the existingproducts as environmentally friendly vehicles become more widely
available. In addition, against the background of an aging
population with fewer children and decreasing working population,
it is assumed that the demand structure around the Group will
signiﬁcantly change, with demand for labor saving and automationin manufacturing rising.
The Group considers this structural change in demand as amajor opportunity, and has decided to shift our focus on the robot
business, whose demand is expected to increase globally in themid- to long-term, while streng thening the framework anddeveloping human resources in various ﬁelds including researchand development, sales, ser vices, manufacturing andprocurement. Moreover, we will work on the expansion ofmerchandise, the creation of new business opportunities, andfundament al cost reform in order to fur ther improve our
performance.
I would like to express my sincerest appreciation to all of ourshareholders for their continued support and understanding.
February 2017

Dividends
With regard to the ﬁscal year-end dividend, taking into account the
proﬁt and the future business development, it has been decided
that the dividend would remain the same as the previous period
and 10 yen per share would be paid.

Future Initiatives
The Group announced a long-term vision with the slogan"Becoming a growing company and fulﬁlling aspirations as a

Chairman and
Representative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated)
Composition of Sales
Business Segment

MarketSpecial Steels/
Industrial Furnaces
and Others Cutting Tools
16%
7%
Hydraulic
Machine Tools
Equipment
9%23%¥211.4
BillionOverseas

Energy/Infrastructure
21%

America
31%
Automotive
52%¥211.4
BillionRobots11%

Machinery/
Retail27%

Bearings
34%

Trend in Business Results
Net Sales (¥ billions)
218.2

218.5

Asia, Oceania,
and Others
57%

Operating Income (¥ billions)¥98.5
BillionEurope12%

Net Income Attributable to
Owners of the Parent (¥ billions)
11.5

211.4

18.9
18.5

(207.4)9.9(9.5)(18.0)

11.1

3.9

FY

2014

2015

2016

FY

2014

2015

2016

FY

2014

2015

2016

*The ﬁgure in parenthesis in 2014 shows the actual record reﬂecting the inﬂuence of the change of the ﬁscal term inour overseas subsidiaries (for two months from October to November 2013).

TOPICSTo Realize Our Long-Term Vision
Under the new mid-term management policy, we will make the core business of our company the robot business,
whose demand is expected to increase globally, while taking initiative to improve our performance.

Mid-term Management Policy
1. Fully develop growing markets
Aiming to become a “comprehensive machinery
manufacturer with a focus on robots,” establish
operational foundations in growing ﬁelds/areas.

Performance goals in FY2020
・Sales400 billion yen
・Operating income
60 billion yen
・Overseas sales ratio
60％

400
billion yen

2. Strengthen production system
Implement TPM to gain conﬁdence in the
global market.
3. Create new products and new businesses
Enhance the basic technologies to create new
demand and business models.
4. Bolster and educate human resources
Based on TQC, pursue a higher goal from a
global perspective.

Sales
211.4
billion yen

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Expansion of Our Robot BusinessWe will focus our investment of management resources on sales,development and production to strengthen our competitiveness in the global market.

Expansion of Our Compact Robot Lineup
We
W released a “WING SLICER”
Type
T“EZ series” robot
tot the market in the electricanda electronic sectors
whichw
have increased needsforf automation.

"EZ03" won the Japan Power (Japan Brand)Award of the Best 10 New Products Award,
selected by Nikkan Kogyo Shimbun“EZ03” was evaluated highly in terms of adopting theoriginal structure that is very different from theconventional SCARA robot, saving space andsigniﬁcantly reducing cycle time.

Global Expansion of Robot Technical Centers“WING SLICER” Type “EZ03” robot

Based on the concept of the ROBOT FA Exhibition Hallat Toyama Plant, Robot Technical Centers will be newly
opened across China, North America and ASEAN,
where demand for robots is increasing. By presenting
robot systems that meet local demands, we will help ourcustomers realize their automation initiative.

Shanghai Robot Technical Center

FY2020Expansion of Merchandise
Making full use of our strength as a comprehensive machinery manufacturer,
we will actively deploy our new products into the market.

Approach to Skiving Machining
We have released multi-functional skiving machines in which three processes necessary
for gear machining, namely gear cutting, turning and drilling, are combined into one.
Utilizing our extensive design and control technologies, we realized high performance,high accuracy and space-saving products.
Skiving cutters are also provided.
Our system proposal includes compact
robots so that it will help improve theproductivity of our customers.

Skiving machining center for Gears “GMS450”

Example of machining using an integrated compact robot

Expansion of Carbide Drill and Tap Lineups
We have released sophisticated products one after
another that contribute to improving productivity inmachining processes. We expect that selling drills andtaps together will produce a synergetic effect that
contributes to expanding our market share.
“Aqua Drill EX series”“SG Tap series”

Strengthen Production System
We will increase local production at overseas locations where demand exists,
as well as take the "local production for local consumption" approach.
In March 2017, a plant for forging and turning bearings
will start full-scale operation in Thailand, realizing a fully
integrated local production.
This will signiﬁcantly strengthen our competitiveness in
the ASEAN region.
In addition, we will make enhancements to the plant,
making it the supply base for other bearings plants
across the world.

Nachi Forging Technology (Thailand)

Roller bearings for constant velocity joints

4FINANCIAL STATEMENTS
Consolidated Balance Sheets
Item(¥ millions)(¥ millions)

Previous (For Your Reference)2016(as of November 30, 2015)(as of November 30, 2016)

ASSETS:

Item

Previous (For Your Reference)2016(as of November 30, 2015)(as of November 30, 2016)

LIABILITIES:Current assets
Cash and cash equivalents

126,695
22,116

123,736
20,796

Notes and accounts receivable

48,584

48,423Inventories

45,87944,351

Current liabilities

98,40790,423

Notes and accounts payable

41,98841,414

Short-term loans

37,82732,705

Other

18,591

16,303Long-term liabilities

60,39874,599Long-term debt

35,02649,782Other

10,114

10,164

Allowance for retirement beneﬁts

11,006

10,792

Fixed assets

141,416

145,702

Other

14,365

14,024

Property, plant and equipment

103,606

110,011

Total liabilities

158,805

165,023

Buildings and structures

29,01730,940Shareholders’ equity

93,911

95,519Machinery and equipment

54,25562,574

Common stock

16,074

16,074

Additional paid-in capital

11,65011,121

NET ASSETS:

Land

8,152

8,053

Retained earnings

67,11868,562

Other

12,1808,442

Treasury stock

△ 932

△ 239

Revaluations and translation adjustments

8,641

2,551

Non-controlling interests

6,752

6,344

Total net assets

109,306

104,415

Total liabilities and net assets

268,112269,438

Intangible ﬁxed assets

1,051

1,233

Investments and advances

36,75834,457

Total assets

268,112269,438

Consolidated Statements of Income
Item

Net sales
Operating income
Ordinary income
Extraordinary income
Extraordinary losses
Income before income taxes
and minority interests
Net income attributable toowners of the parent

Previous (For Your Reference)(¥ millions)2016(Year ended November 30, 2015) (Year ended November 30, 2016)

218,535
18,945
17,31616464

211,449
11,139
7,765
280
226

16,868

7,819

11,593

3,929

Consolidated Statements of Cash Flows
Item

Previous (For Your Reference)(¥ millions)2016(Year ended November 30, 2015) (Year ended November 30, 2016)

Cash ﬂows from operating activities

13,855

15,866

Cash ﬂows from investing activities△ 22,017△ 23,418

Cash ﬂows from ﬁnancing activities
Net decrease in cash
and cash equivalents
Cash and cash equivalents
at beginning of the year
Cash and cash equivalents
at end of the year

6,777

7,137

△ 1,982

1,394

23,46921,48721,487

20,093

Breakdown of Shareholders

SHAREHOLDER INFORMATION (As of November 30, 2016)
Number of Shares Issued: 249,193,436
24,630
Number of Shareholders:Major Shareholders (top ﬁve):

Note: Shareholding ratios are calculated after
subtracting treasury stock (661 thousand shares).

Number of shares Shareholding ratio
held (thousand)(%)

Shareholders

NACHI WANEI Stockholding
Employees’ Stock Ownership Plan
Toyota Motor Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Hokuriku Bank, Ltd.

20,56313,80813,182
11,8888,659

Stock
Ownership
Associations
41,770 thousand(16.8%)

Foreign
Corporations
27,355 thousand(11.0%)

8.27
5.56
5.30
4.78
3.48

Individuals
49,130 thousand(19.8%)
Securities
Companies
1,231 thousand(0.5%)

Financial
Institutions
84,089 thousand(33.8%)
Other JapaneseCorporations
44,955 thousand(18.1%)DIRECTORS AND AUDITORS (As of February 22, 2017)
Chairman and
Representative Director

Managing Director

Director

Director

DirectorStanding Corporate Auditor

Hiroo Honma

Kouichi Watanabe

Tetsu Furusawa

Shigeru Togashi

Jun Sakamoto

Masashi Hori

President andRepresentative Director

Kenji Susukida
Managing Director

Masayuki Kobayashi

Managing Director

Director

Director

DirectorStanding Corporate Auditor

Hidenori Hayashi

Shinichi Urata

Noritsugu Sasaki

Kazuo Tsukahara*

Masakazu Yamazaki*

Director

Director

Director

Toru Inoue

Yutaka Tsukamoto Noboru Miura

Standing Corporate Auditor

Corporate Auditor

Hiroshi Yamada

Somuku Iimura**Outside director or outside corporate auditor.

CORPORATE OFFICERS (As of February 22, 2017)
Hideaki Hara
Yusaburou Nomura
Corporate Ofﬁcer Satoshi Hamamoto
Corporate Ofﬁcer Tetsuo Koshihama

Yukihiro Shoji
Ryohei Nobetani
Hiroyuki Hanato
Corporate Ofﬁcer Hiroyuki Ushimaru

Tetsuyuki Onoda
Tetsuhiko Takata
Corporate Ofﬁcer Shigemi Tochitani
Corporate Ofﬁcer Kazuho Tanimoto

Yuzo Aburamoto
Kazuyuki Tsunekawa
Corporate Ofﬁcer Naritoshi Nakamura

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer
Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

CORPORATE INFORMATION (As of November 30, 2016)
Foundation:
Capital:Number of Employees:
Major Products:
Machinery and tools business
Components business
Other business
Major Domestic Ofﬁces and Plants:
Toyama Head Ofﬁce
Tokyo Head Ofﬁce

December 21, 1928
¥16 billion
2,945 (Group employees 6,775)
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Machining Systems, Robots, Robot Systems
Bearings, Hydraulic Equipment, Automotive Hydraulics
Special Steels, Coating, Industrial Furnaces
1-1-1, Fujikoshi-Honmachi, Toyama 930-8511, Japan
Shiodome Sumitomo Bldg. 17F, 1-9-2, Higashi-Shinbashi, Minato-ku, Tokyo 105-0021, Japan

Tel:+81-76-423-5111+81-3-5568-5111

Eastern Japan Main BranchCentral Japan Main BranchWestern Japan Main Branch

Shiodome Sumitomo Bldg. 17F, 1-9-2, Higashi-Shinbashi, Minato-ku, Tokyo 105-0021, Japan
Nachi Nagoya Bldg. 2-120-3, Takayashiro, Meitou-ku, Nagoya 465-0095, Japan
Sumitomo Nakanoshima Bldg. 5F, 3-2-18, Nakanoshima, Kita-ku, Osaka 530-0005, Japan

Toyama Plant

1-1-1, Fujikoshi-Honmachi, Toyama 930-8511, Japan[Cutting Tools / Machine Tools / Bearings / Robots]
3-1-1, Yoneda-machi, Toyama 931-8511, Japan [Special Steels] / 3-2-1, Nakada, Toyama 931-8453, Japan [Hydraulic Equipment]
176, Ogake, Namerikawa 936-0802, Japan [Hydraulic Equipment / Automotive Hydraulics / Coating / Industrial Furnaces]
NACHI AMERICA INC. (U.S.A.) NACHI EUROPE GmbH (Germany) NACHI (SHANGHAI) CO., LTD. (China)
NACHI (JIANGSU) INDUSTRIES CO., LTD. (China) NACHI SINGAPORE PTE. LTD. (Singapore)
NACHI TECHNOLOGY（THAILAND）
CO., LTD.

Higashi-Toyama Plant
Namerikawa Plant
Major Overseas Ofﬁces and Plants:

INVESTOR INFORMATION
Securities Code:Fiscal Year:

6474
From Dec. 1 of each year to Nov. 30 of
the following year

Timing of Ordinary General
February
Meeting of Shareholders:Voting rights at General
Record Date:
Meeting of Shareholders November 30
Year-end dividend
November 30
Interim dividend
May 311,000 shares
Unit:
Shareholders’ Register Custodian/ 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, 100-8233, Japan
Administrator for Special Accounts: Sumitomo Mitsui Trust Bank, Limited
2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, Japan
Administrative Ofﬁce/
Sumitomo Mitsui Trust Bank, Limited
Mailing Address:
Stock Transfer Agency Department
Toll-free: 0120-782-031 (Toll-free in Japan)
Inquiries:
http://www.nachi-fujikoshi.co.jp/eng/
URL:

Notice regarding the Transfer of Dividends to the Shareholder’s AccountWe recommend transfer to the shareholder’s account as a safe, foolproof, andconvenient way to receive dividends.
Please choose from the following three methods for receiving dividends throughtransfer to the shareholder’s account.
Allocation by Proportion of Shares: Receiving dividends through accounts that theshareholder has with securities ﬁrms. (A shareholder who does not have an
account at a securities ﬁrm may not use this method.)
Registration of a Single Account for Receiving Dividends: Receiving dividends for
all categories of stock that the shareholder owns through a single account thatthe shareholder has with banks, etc. (An account with the Japan Post Bank may
not be designated for this purpose.)
Designation by Speciﬁc Stock: Assigning an account that the shareholder has withbanks, etc. for each category of stock and receiving dividends through suchaccounts.

Procedures regarding Shares
1. Notiﬁcation regarding Designation of the Method for Receiving Dividends; thePurchase of Additional Shares or Buyback of Holdings Less Than the Minimum
Trading Unit; Change of Address, Name, etc.; and Request for Stock Transfers
between Accounts
Please notify the securities company with which you have your account. For thoseshareholders who do not have an account with a securities company and who have
set up a special account instead, please notify Sumitomo Mitsui Trust Bank,
Limited which is the account administrator for special accounts.

2. Questions regarding Payments of Accrued Dividends and Other General Administrative Matters regarding Shares
Please contact Sumitomo Mitsui Trust Bank, Limited which administers theshareholders registry.

The Cover PhotographIn recent years skiving machining is
gaining more attention as ahighly-efficient gear machining method.
The cover photograph is a"skiving cutter," a key tool to improve accuracy andspeed of machining.