INTERIM BUSINESS REPORT
2016
December 1, 2015 to May 31, 2016

NACHI-FUJIKOSHI CORP.
Securities Code: 6474

TO OUR SHAREHOLDERS
We would like to express our sincere gratitude

totaled 49.9 billion yen, up 1.7%.

comprehensive machinery manufacturer

In terms of proﬁtability, operating proﬁt,

with robotics at its core. By doing this, wecurrent proﬁt and the quarter net proﬁt ofwill work on the expansion of merchandise

We repor t the interim results for thethe parent company shareholders were 6.4

and product range, the creation of new

NACHI-FUJIKOSHI Group for the periodbillion yen (decreased by 33.4% over thebusiness opportunities, and fundamental

from December 1, 2015 to May 31, 2016.

same interim period of the previous ﬁscal

cost reform.

to our shareholders for your continued support
and patronage.

year), 4.3 billion yen (similarly decreased by

I would like to express my sincerest

Business Environment

51.6%) and 2.7 billion yen (similar ly

appreciation to all of our shareholders for

In spite of the economic recovery observed indecreased by 52.5%), respectively. This

their continued support and understanding.

the developed countries led by the United

was due to increased upfront investment

States, the business environment surrounding

cost including the expansion of sales andthe NACHI-FUJIKOSHI Group during thethe production system for business expansion

interim period under review has been underin the future, as well as the inﬂuence of thea tough situation as a whole due to theappreciation of the yen against the dollar.

slowdown in economic growth in emerging
economies such as China and the impact of

We wish to forego the payment of interim
dividends for this interim period.

rapid and signiﬁcant ﬂuctuations in currency
exchange rates.

Future Initiatives
As for the future outlook, while uncertain

Business Progress and Results

situations such as the strengthening of theGiven this environment, the NACHI-FUJIKOSHI

yen and the slowdown of emerging economies

Group has been making full use of its strength

may continue for the time being, increased

as a comprehensive machinery manufacturer

needs for automation and systemizationencompassing cutting tools, machine tools,

mainly in the robotics sector are expected

robots, bearings, hydraulic equipment, andin the mid-to-long-term due to a drastic

special steel businesses to promote initiatives

change in the demand structure such as theto ﬁnd new customers, mainly new users in

spread of green-cars and the soaring needs

overseas countries, to deploy new products,of streamlining in manufacturing sites.

and to expand its existing product range.

With our axis shifted to the robotics busi-

Despite these efforts, sales in the current

ness with promising expansion and taking

consolidated ﬁscal year reached 106.2 billion

this structural change as a good opportunity,

yen, down 1.1% over the same period of thethe Group has determined that it will promoteprevious year. Of this, sales in the Japaneseinternal reform in various sections including

market were 56.2 billion yen, down 3.4% oversales, services, manufacturing, procure-the previous period, while overseas sales

ment as well as research development as a

President andRepresentative Director

August 2016

RESULTS OF OPERATIONS (Consolidated Operating Result for Second Quarter of Fiscal 2016)
Breakdown of Net Sales
MarketBusiness Segment
Special Steels/
Industrial Furnaces
and Others Cutting Tools
6%15%
HydraulicEquipment
23%

Energy/Infrastructure20%

Machine Tools
11%¥106.2
BillionOverseas

Robots10%

America31%¥106.2
BillionMachinery/
Retail30%

Bearings
35%

Automotive
50%

¥49.9
Billion

Asia, Oceania,
and Others
57%

Europe12%

Trend in Business Results
Net Sales (¥ billions)Operating Income (¥ billions)
218.5

218.2

■Interim■Full-year■Interim■Full-year(207.4)
18.9

18.5

175.6

(18.0)

110.9

12.3
107.3
3

106.2
10.0

82.8

(100.1)

9.6

(9.5)
6.4
5.2

FY

2013

2014

2015

2016

FY

2013

2014

2015

2016

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

TOPICS
Becoming a Comprehensive Machinery Manufacturer with Robotics at Its Core○

Keeping firmly in mind the mid-to-long-term changes in demand structure that surround us, such as the trend of new kind ofvehicle except having engine in the automotive sector and a lack of laborers at manufacturing sites led by the global fallingbirth rate and aging population, we will make efforts to establish a stance as a comprehensive machinery manufacturer withthe robotics business at its core in which an expansion of demand is expected in the future.

Expansion of Merchandise

Expansion of Our Compact Robot Lineup
We released a “WING SLICER” Type “EZ series” robot to the market
targeting the electric and electronic ﬁelds which have increased
needs for automation.
We realized space-saving, ultrafast operation and minimizing ofdead space by adopting our unique Z-axis moving structure andd6-axis model.

Provision of a Wide Range Of System Designss
A wider range of system designs are available with theecombination of the EZ and MZ series.
We provide more compact and high-speed robotic
csolutions for machine processing, transportation, as
well as the assembly process.

“WING SLICER” Type “EZ series” robot○

The world’s fastest and lightweight compact
pact robots,
thehe MZ series

Strengthening system response capabilities

Construction of the
new ROBOT FA Exhibition HallThe ROBOT FA Exhibition Hall has been opened in
the Toyama Head Ofﬁce as a venue for solution
proposal for automation needs from clients.

NACHI (JIANGSU) INDUSTRIES CO., LTD.

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

Toyama Head Office ROBOT FA Exhibition Hall

The facility consists of a showroom inwhich many system examples in various
business types are displayed and ademonstration and testing area where theautomation concept is implemented it canbe also used for a robot training course.

3Based on the concept of the ROBOT FA Exhibition Hall, Robot Technical Centers will be newly opened at 10 locations across China, North
America, Europe and ASEAN. Various case studies will be prepared to meet local demands as well as the growing needs for automation.

Further Cultivation of the Chinese Market■

To meet the huge demand in the Chinese Market, Robot Technical Centers will be opened at three locations in China (Shanghai, Qingdao andGuangzhou), which is the biggest point of demand for robots, and one location in Taiwan (Taipei), where the headquarters of EMS manufacturers
are concentrated.

■○

Global Expansion of Robot Technical Centers

Enhancement of Sales Organization

We will signiﬁcantly increase the numberof sales personnel, as well as sales
bases, and expand local production
capacities to promote local production
for local consumption in China.

The Shanghai Technical Center will be opened
in China’s largest exhibition hall, the National
Exhibition and Convention Center（Qingdao）

NACHI (JIANGSU) INDUSTRIES CO., LTD.

（Shanghai）（Guangzhou）

Diagram of Shanghai Technical Center（Taipei）

In November of 2016, the Shanghai Technical Center,
which is twice as large as the Toyama Head Ofﬁce ROBOTFA Exhibition Hall, will be newly established to meet thegrowing needs for automation.

Held the opening ceremony for the Qingdao Technical Center (April 15, 2016)
A big opening ceremony was held, which
was attended by over 100 people,
including Qingdao government ofﬁcials,
to give a tour and to fully experience thevarious case studies.

4

FINANCIAL STATEMENTS
Consolidated Balance Sheets
Item(¥ millions)Interim 2016

Previous(as of May 31, 2016)(as of November 30, 2015)

ASSETS:

Item

Interim 2016

Previous(as of May 31, 2016)(as of November 30, 2015)

LIABILITIES:Current assets
Cash and cash equivalents

124,052
23,944

126,695
22,116

Notes and accounts receivable

47,012

48,584Inventories

44,09545,879

Other

9,000

10,114

Fixed assets

142,925

141,416

Property, plant and equipment

108,901

103,606

Buildings and structures

30,52829,017

Machinery and equipment

60,40054,255

17,972

Other

Intangible ﬁxed assets

1,218

20,332
1,051

Investments and advances

32,80536,758

Total assets

266,978

268,112

Consolidated Statements of Income(¥ millions)

Current liabilities

100,719

98,407

Notes and accounts payable

40,251

41,988

Bonds and short-term bank loans

43,34737,827

Other

17,12018,591Long-term liabilities

63,52860,398Long-term debt

38,63635,026

Allowance for retirement beneﬁts

10,776

11,006Other

14,115

14,365

Total liabilities

164,247

158,805

Shareholders’ equity

94,64993,911

Common stock

16,074

16,074

Additional paid-in capital

11,65011,650Retained earnings

67,338

67,118NET ASSETS:

Treasury stock

△ 414

△ 932

Revaluations and translation adjustments

1,686

8,641

Minority interests

6,394

6,752

Total net assets

102,730

109,306

Total liabilities and net assets

266,978

268,112

Consolidated Statements of Cash Flows(¥ millions)Interim 2016

Interim 2015

December 1, 2015
to May 31, 2016

December 1, 2014
to May 31, 2015

106,201

107,357

Cash ﬂows from operating activities

8,204

7,233

Operating income

6,445

9,683

Cash ﬂows from investing activities△ 12,804△ 10,112

Ordinary income

4,358

9,010

7,508

4,452

Extraordinary income

273

12

1,991

1,540

Extraordinary losses
Income before income taxes
and minority interests
Net income

171

20

4,460

9,002

21,48723,469

2,705

5,700

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

23,47925,010Item

Net sales

Item

Interim 2016

Interim 2015

December 1, 2015
to May 31, 2016

December 1, 2014
to May 31, 2015

SHAREHOLDER INFORMATION (As of May 31, 2016)
Number of Shares Issued: 249,193,436
24,953
Number of Shareholders:Major Shareholders (top ﬁve):

Note: Shareholding ratio is calculated after
subtracting treasury stock (654 thousand shares).

Breakdown of Shareholders
ForeignInvestors
28,676 thousand(11.5%)
Individuals
47,532 thousand(19.1%)

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.

20,18913,475
13,182
11,888
8,659

8.12
5.42
5.30
4.78
3.48

Stock
Ownership
Associations
40,879 thousand(16.5%)

Securities
Companies
2,158 thousand(0.9%)

Financial
Institutions
84,530 thousand(34.0%)
Other JapaneseCorporations
44,761 thousand(18.0%)DIRECTORS AND AUDITORS (As of August 2016)
President andRepresentative Director

Managing Director

Director

Director

DirectorStanding Corporate Auditor

Hiroo Honma

Hidenori Hayashi

Toru Inoue

Shinichi Urata

Akira Kunisaki

Masakazu Yamazaki*

Managing Director

Managing Director

Director

DirectorStanding Corporate Auditor

Corporate Auditor

Kenji Susukida

Masayuki Kobayashi

Tetsu Furusawa

Yutaka Tsukamoto

Hiroshi Yamada

Eiichi Fukushima*

Managing Director

Director

Director

DirectorStanding Corporate Auditor

Isao Hori

Kazuo Tsukahara*

Tadataka Hori

Masatoshi Akagawa

Masashi Hori

*Outside director oroutside corporate auditor.

CORPORATE OFFICERS (As of August, 2016)
Hideaki Hara

Yusaburou Nomura Tetsuo Koshihama

Noboru Miura

Yukihiro Shoji

Noritsugu Sasaki Hiroyuki Hanato

Shigeru Togashi Satoshi Hamamoto Tsutomu Kurosawa Kouichi Watanabe Ryohei Nobetani Jun Sakamoto

Tetsuyuki Onoda

Hiroyuki Ushimaru

CORPORATE INFORMATION (As of May 31, 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
2,958 (Group employees 6,794)
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Machining Systems, Robots, Robot Systems
Bearings, Hydraulic Equipment, Automotive Hydraulics, Seismic Isolation 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]

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

NACHI AMERICA INC. NACHI EUROPE GmbH NACHI (SHANGHAI) CO., LTD. NACHI (JIANGSU) INDUSTRIES CO., LTD.
NACHI SINGAPORE PTE. LTD. NACHI TECHNOLOGY (THAILAND) CO., LTD.

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.
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 Photograph
The front cover shows a“WING SLICER” Type “EZ02” robot.
We realized space-saving, ultrafast operation andminimizing of dead spaceby adopting unique own mechanism.
This robot contributes to space-saving andproductivity improvement at production sites.