BUSINESS REPORT
2014
December 1, 2013 to November 30, 2014

NACHI-FUJIKOSHI CORP.
Securities Code: 6474

TO OUR SHAREHOLDERS
We would like to express our sincere gratitude

expand the existing product range, as well as

automotive, industrial machinery, construction

to our shareholders for their continued supportchanging the fiscal term of our overseas subsid-

machinery, and aircraft sectors will increase in

and patronage.

iaries as of the first quarter. As a result, sales in

the mid to long-term period, mainly in the North

I am pleased to report that the NACHI-FUJIKOSHI

the current consolidated fiscal year reached

American and emerging markets, which will

Group’ s business overview for the fiscal year

218.2 billion yen, up 24.2% over the previous

contribute to a steady growth in general.

ended November 2014 (from December 1, 2013

period. Of this, sales in the Japanese market

The Group will place our focus on the volume

to November 30, 2014).

were 118.4 billion yen, up 12.0% over thezones inside and outside Japan to enhanceprevious period, while overseas sales totaled

sales/service framework and expand our mer-

I would like to inform you that the end date of
the fiscal period for our overseas subsidiaries
has been changed from September 3 0 to

99.7 billion yen, up 42.6%.
In terms of profitability, with the success of thechandise and product range, while strengthening procurement framework, and reducing

November 30 as of the current consolidated

total cost reduction effort, such as improvementfiscal year. For this reason, the consolidatedof operation capacity and productivity, operating

The company will work to improve operating

cumulative period of the fiscal year ended

income totaled 18.5 billion yen, up 50.5% overresults and secure a stable profit structure with

November 2014 is our overseas subsidiaries 14

the same period of the previous fiscal year, ordi-

the purpose of fulfilling our Long-Term Visionmonths, from October 2013 to November 2014.

nary income 18.4 billion, up 57.5%, and net

and the Mid-Term Business Plan 2016 that wasincome 9.9 billion yen, up 48.1%.

formulated in January 2014.

As for the business environment surrounding

Dividends

tion to all of our shareholders for their contin-

the NACHI-FUJIKOSHI Group during the period

The NACHI-FUJIKOSHI Group considers redis-ued support and understanding.

under review, a gradual recovery is underway intribution of profits to our shareholders as one ofgeneral. Although there were some signs of

the most important tasks, and our basic policy

economic weakness due to the impact of theis to provide stable dividends based on the

consumption tax rate increase in Japan and thecomprehensive consideration on consolidated

slowdown in economic grow th in emerging

operating results and dividend payout ratio. The

economies including China, advanced econo-

internal reserves will be allocated to the futuremies have continued to show signs of recovery,business development and strengthening ofdriven by the United States, and automotive

financial structure.

Business Environment

production in overseas countries is showing

costs by innovation of production line.

I would like to express my sincerest apprecia-

With regard to the fiscal year-end dividend,

steady increase.

based on the above policy and taking into

Business Progress and Results

has been decided that 8 yen in dividends would

Given this environment, the NACHI-FUJIKOSHI

be paid per share, an increase of 2 yen per share

Group has been making full use of its strength

over the previous period, to show our apprecia-

as a comprehensive machinery manufacturer

tion to the support from our shareholders.

account the operating results of this fiscal year, it

President andRepresentative Director

encompassing the cutting tools, machine tools,
robots, bearings, hydraulic equipment, andFuture Initiatives

special steel businesses to promote initiatives to

As for the future outlook, although there is afind new customers, mainly new users in over-concern that the economy in Japan is slowing

seas countries, to deploy new products, and todown, it is expected that the demand in the

February 2015

RESULTS OF OPERATIONS (Consolidated)
Composition of Sales
MarketBusiness Segment
Special Steels/
Industrial Furnaces
and Others Cutting Tools
8%15%
HydraulicEquipment
Machine Tools
11%
21%¥218.2
BillionOverseas

Energy/Infrastructure
20%

Robots8%

Machinery/
Retail27%

Bearings
37%

America
28%¥218.2
Billion¥99.7
Billion

Asia, Oceania,
and others
58%

Automotive
53%

Europe14%

Trend in Business Results
Net Sales (¥ billions)Operating Income (¥ billions)

Net Income (¥ billions)

218.2
18.5
172.2

9.9

175.6

12.3

6.7

10.6
4.5

FY

2012

2013

2014

FY

2012

2013

2014

FY

2012

2013

2014

*The fiscal year 2014 includes the impact (sales: 10.7 billion yen, operating income, 500 million yen,
net income: 400 million yen) due to the change to the fiscal period for our overseas subsidiaries(changed from September 30 to November 30, consolidated fiscal period of 14 months).

TOPICS
Expanding Business in the Growing Market
Our Group is undertaking the expansion of our business in the North American and Asian markets, where mid andlong-term demand growth is expected, by expanding local production and improving our sales and services framework.

Strengthening operations in the North American market
New production base of bearings will open in Mexico
A new production base will open in Mexico, where automotive production
is expected to increase. We will deploy our bearings business in full-scale.

NACHI TECHNOLOGY MEXICO S.A. DE C.V.
(To be completed in December 2015)

Roller bearings forconstant velocity joints

Bearings for transmissions

Increasing the local production of cutting tools in America
In the aim to expand sales in the fast-growing automotive and aircraft sectors, wewill start local production of carbide drills and broaches to expand our market share.

NACHI TOOL AMERICA INC.

AQUA Drill EX series

Large-diameter helical broaches for machining
the gears for automotive transmissions

Further Cultivation of the Chinese Market
We will enhance our production capacity of robots, hydraulic equipment, car
control valves, and bearings for automobiles to meet the increasing local demand,in accordance with the “local production for local consumption” concept.

Robot “SRA”

NACHI (JIANGSU) INDUSTRIES CO., LTD.

Hydraulic equipment for
construction machines

Expand the sales/service framework for robots
Established a new robot technical center in
Guangzhou, following Shanghai.
We will promote efforts to improve customer
satisfaction and increase sales orders.

The opening ceremony
at the technical centerin Guangzhou

Expansion of merchandise and product range
Utilizing our strength as a comprehensive machinery manufacturer, we will actively deploy our new and improved
products into the market.

Full-scale entry into the small robot market“MZ04” has been deployed into the small robot market, targeting thevolume zone of 3-4kg transportable robots.
Together with MZ07, it enhanced the product range of small robots.
In addition to automotive and industrial machineries, we will promote effort
to develop electrical/electronic and chemical/food industries.

Strengthened Carbide Drill Lineup
The highly acclaimed AQUA Drill EX series now
includes the enhanced lineup of EX 3 Flutes,
which achieve high-accuracy drilling with a
3-flute design.
“The World’s fastest”
Lightweight, Compact Robot “MZ07”, “MZ04”

They c an b e us e d with a wider range ofmachine tools, as well as enabling the machining of high-hardness materials.

“AQUA Drill EX 3 Flutes”

Saving energy and space for hydraulic units

Energy-saving and compact hydraulic unit
“Power Meister”

A “new type of Power Meister,” which is ideal as the driving source of machine tools andpress machines, has been deployed into the market.
It will meet the increasing needs of saving energy and space.

Held the opening ceremony for the new factory in India.
The new factory in India, which started operating in July 2013, has started full-scale
operation.

A scene from the opening ceremony

NACHI KG TECHNOLOGYINDIA PTE. LTD.

A big opening ceremony was held in November 2014, which was attended by a total ofmore than 200 people including users, agencies, and local parties mainly from automotive sector.

4

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

2014

2013

Item

(as of November 30, 2014) (as of November 30, 2013)ASSETS:

2014

2013

(as of November 30, 2014)(as of November 30, 2013)

LIABILITIES:Current assets

127,328

101,135

Cash and cash equivalents

23,932

18,591

Notes and accounts receivable

49,90639,896Inventories

44,345
9,144

Other

35,448
7,199

Current liabilities

103,331

79,292

Notes and accounts payable

47,48338,918

Bonds and short-term bank loans

32,76523,795

Other

23,082

16,579Long-term liabilities

54,77947,263

Bonds and long-term debt

31,392

31,328

Allowance for retirement benefits

-

6,626

Liabilities concerning retirement benefits

11,062-

Fixed assets

128,351

106,780

Other

12,324

9,308

Property, plant and equipment

94,56682,354

Total liabilities

158,111

126,556

NET ASSETS:
Shareholders’ equity

83,18875,964

Common stock

16,074

16,074

Additional paid-in capital

11,561

11,561Retained earnings

56,97048,527△ 1,418△ 199

Revaluations and translation adjustments

8,357

1,157

Minority interests

6,023

4,238

Total net assets

97,56981,360Total liabilities and net assets

255,680

207,916

Buildings and structures

29,42228,803

Machinery and equipment

46,19038,472

Land

7,845

7,108

Other

11,109

7,970

932

716

Intangible fixed assets
Investments and advances

32,852

23,709Total assets

255,680

207,916

Consolidated Statements of Income(¥ millions)

Treasury stock

Consolidated Statements of Cash Flows(¥ millions)

2014

2013

Net sales

218,225

175,697

Cash flows from operating activities

18,69920,737

Operating income

18,574

12,338Cash flows from investing activities△ 19,159△ 10,413

Ordinary income

18,419

11,698Cash flows from financing activities
Net increase in cash
and cash equivalents
Cash and cash equivalents
at beginning of the year
Cash and cash equivalents
at end of the year

4,416

△ 9,188

5,240

2,467

18,22915,761

23,46918,229Item

Extraordinary income
Extraordinary losses
Income before income taxes
and minority interests
Net income(Year ended November 30, 2014) (Year ended November 30, 2013)

28

400

1,748

1,240

16,69910,858

9,934

6,706

Item

2014

2013

(Year ended November 30, 2014) (Year ended November 30, 2013)

SHAREHOLDER INFORMATION (As of November 30, 2014)
Number of Shares Issued: 249,193,436
23,819Number of Shareholders:Major Shareholders (top five):

Note: Shareholding ratios are calculated after
subtracting treasury stock (623 thousand shares).

Breakdown of Shareholders

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.

19,101
13,233
13,182
11,888
8,659

7.68
5.32
5.30
4.78
3.48

Stock
Ownership
Associations
39,118 thousand(15.7%)

ForeignInvestors
35,980 thousand(14.5%)
Individuals
41,162 thousand(16.6%)
Securities
Companies
3,507 thousand(1.4%)

Financial
Institutions
83,466 thousand(33.6%)
Other JapaneseCorporations
45,333 thousand(18.2%)DIRECTORS AND AUDITORS (As of February 19, 2015)

CORPORATE OFFICERS

President andRepresentative Director

Corporate Officer

Managing Director

DirectorStanding Corporate Auditor

Hiroo Honma

Hidenori Hayashi

Tetsu Furusawa

Masakazu Yamazaki*

Managing Director

Managing Director

DirectorStanding Corporate Auditor

Noriyasu Shiba

Masayuki Kobayashi Fumio Honda

Managing Director

Director

Director

Kenji Susukida

Kazuo Tsukahara*

Tadataka HoriManaging Director

DirectorStanding Corporate Auditor

Isao Hori

Toru Inoue

Nobuo Okada

Hiroshi Yamada
Corporate Auditor

Eiichi Fukushima**Outside director or outside
corporate auditor.

CORPORATE INFORMATION (As of November 30, 2014)
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(As of February 19, 2015) Corporate Officer

Shinichi Urata
Corporate Officer

Hideaki Hara

Corporate Officer

Shigeru Togashi
Corporate Officer

Hiroshi Goto

Corporate Officer

Masatoshi Akagawa

Takihiro Hirasaki
Corporate Officer

Yusaburo Nomura
Corporate Officer

Satoshi Hamamoto
Corporate Officer

Tetsuo Koshihama
Corporate Officer

Jun Sakamoto
Corporate Officer

Tsutomu Kurosawa

December 21, 1928
¥16 billion
2,797 (Group employees 6,296)
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Machining Systems, Robots, Robot Systems
Bearings, Hydraulic Equipment, Automotive Hydraulics, Seismic Isolation Systems, Filtration Systems
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. NACHI EUROPE GmbH NACHI SINGAPORE PTE. LTD.
NACHI TECHNOLOGY（THAILAND）
CO., LTD. NACHI (SHANGHAI) CO., LTD. NACHI (JIANGSU) INDUSTRIES CO., LTD.

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

INVESTOR INFORMATION
Securities Code:Fiscal Year:
Ordinary General Meetingof Shareholders:Record Date:

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

Voting rights at General
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.
Designation by Specific Stock: Assigning an account that the shareholder has withbanks, etc. for each category of stock and receiving dividends through suchaccounts.
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.)
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.)

The Cover Photograph

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 image is the world’s fastest
lightweight, compact robot MZ04.
The light weight robot arm and the state-of-art
control technology have achieved the fastest
operating speed in its class.
With its wide range of applications, it willcontribute to significantly improve productivity.