code：4095

period April 1, 2019

▼135thＢusinessReport
March 31, 2020

Chairman and C.E.O.

President and C.O.O.

Kazuichi Satomi

Mitsuru Matsumoto

To Our Shareholders
Thank you very much for your continued support. It is our pleasure to present our annual report for the 135th period, ending on March 31, 2020.
As you well know, during the early part of this period the Japanese economy recovered moderately due to improvements in corporate earnings andthe employment environment. However, in the latter half of the period the economy deteriorated somewhat particularly in the manufacturingsector due to the extended trade friction between the U.S. and China. Together with the effects of the consumption tax raise, this has created aharsh economic climate. Looking overseas, economies around the world have slowed following the deceleration of the Chinese economy.
Furthermore, the global spread of COVID-19 from the end of the period has added a new degree of uncertainty to the future economic outlook.
The business environment faced by the Parker Group was a difficult one in which our key customers in the auto industry reduced auto production in
Japan following the consumption tax raise, and auto output in China also continued to fall compared to the previous year. In addition, our key
customers in the steel industry also faced a difficult business environment due to stiff competition from overseas manufacturers.
In this period the Parker Group embarked on its third mid-term management plan. Aiming to be a true global company as a surface modification
specialist, the Group united to institute a variety of policies including initiatives to strengthen governance, as we worked to achieve targets basedon our key policies of growth strategies to win in global competition, group management optimization and reform of governance in order toestablish 3G Management (Global, Group, Governance). In addition, we reflected on our founding spirit of sincerity and honesty, facing ourcustomers sincerely, and pursuing innovation based on our accumulated core technology in order to provide swift and accurate service and highquality products, while endeavoring to strengthen our global quality improvement initiatives and research and development organization.
As a result, our consolidated business achievements for this period were as described in the latter part of this report.
In consideration of our business achievements and dividend policy, the year-end dividend for this period will be thirteen yen per share.
Regarding the economic outlook, there are fears that the global economy may rapidly slow down due to the fall in consumption and the stagnationof production resulting from the spread of COVID-19. The outlook for the Parker Group business also remains opaque as our key customers in theauto industry and steel industry face a great deal of uncertainty.
Against such an economic backdrop, as the Parker Group enters the second year of the third mid-term management plan, our members willcontinue to aim to be a true global company as a surface modification specialist, working to improve profitability and actively taking up thechallenge of entering new fields, while engaging in initiatives to reform the company culture and consciousness and aim for sustainable growth.
We look forward to the continuing support of our shareholders.

Net Sales

Ordinary IncomeNet income attributable to parentcompany shareholders

119,000

12,600

million yenDown 7.9％ on theprevious year

9,400

million yen
Down 26.0％ on theprevious year

million yen
Down 17.3％ on
the previous year

Consolidated results▌ Sales (Unit: Million yen)

▌ Operating income (u nit: Million yen)End

129,207

Interim

End17,984

119,028

114,840

Interim

17,023
12,60153,4662018
End/
interim59,98759,967

8,663

2019
End/
interim2020
End/
interim2018
End/
interim20,750Interim

20,130

7,610

2019
End/
interim2020
End/
interim▌ Net income attributable to parent company▌ Ordinary income (Unit: Million yen)End8,196(Unit: Million yen)End12,721
11,424

9,449

15,723
10,392

10,0452018
End/
interim2019
End/
interim

6,370

9,262

2020
End/
interimCompany outline 【As of March 31,2020】
Company name:NIHON PARKERIZING CO.,LTD.

Established:

July 12, 1928

Head Office:15-1, 1-chome, Nihonbashi,

2018
End/
interimCapital:Employees

4,409(consolidated):
Listing:First Section of Tokyo Stock
Exchange

6,013

5,875

2019
End/
interim2020
End/
interim

Directors 【As of March 31, 2020】
Chairman andC.E.O.

KazuichiSatomi

Chief Executive Officer

President andC.O.O.

Mitsuru

MatsumotoChief Operating Officer

Director

Hiroyasu Tamura

General Manager of Administration
DivisionDirectorMasayuki Yoshida

General Manager of Technical Division andCentral Research Laboratories

Chuo-ku, Tokyo

4.56039 billion yenInterim

Outside Director Shimako

Emori

Outside Director Tatsuya

MoriDirectorHayato

Hosogane

Audit and Supervisory Committee Member

Outside Director Masaharu Kubota

Audit and Supervisory Committee Member

Outside Director Koji

Audit and Supervisory Committee Member

Chika

Overview by Business Segment (Business outline & share of sales)
OtherChemicals

Building maintenance, transport, manufactureand sale of bolts, etc.

Manufacture and sale of metal surface treatmentchemicals, rust preventive oil, rolling oil, paint,industrial cleaners, and electroless nickel plating
liquid, etc.

4,477 million yen（3.7%）

44,854 million yen（37.7%）

Total
119,028
million yen
Jobbing
Rust preventive jobbing, heat treatment jobbing, etc.

45,199 million yen（38.0%）

Equipment
Manufacture and sale of metal surface
treatment equipment, coating equipment, etc.

24,497 million yen (20.6%）

Stock information

Distribution by ownership（ 1）Total number of authorized shares（2）Number of shares outstanding（3）Number of shareholders at end of period（4）Principal shareholders
NameShares held (Unit: 1,000)

300,000,000
132,604,524
4,030

Ownership

ratio (%)

NORTHERNTRUSTCO.（AVFC）RE FIDELITY FUNDS

8,783

7.22

Nippon Life Insurance Company

7,015

5.76

The Master Trust Bank of Japan, Ltd. (Trustaccount)

5,605

4.60

Meiji Yasuda Life Insurance Company

5,578

4.58

The Chiba Bank, Ltd.

4,765

3.91

Yugen Co., Ltd.

4,708

3.87

The Satomi Scholarship Foundation

4,633

3.76

Japan Trustee Services Bank, Ltd. (Trustaccount)

4,108

3.37

Sumitomo Mitsui Banking Corporation

3,113

2.56

Trust & Custody Services Bank, Ltd. as trustee
for Nippon Steel Corporation Retirement
Benefit Trust Account re-entrusted by Mizuho
Trust and Banking Co., Ltd.

2,664

2.19（Note）1. Nihon Parkerizing holds 9,691,000 treasury shares. (Not included in theabove principal shareholders list.)
2. Shareholder ratios are calculated excluding the treasury shares.

Transition of share price▌ Financial
institutions

7.30%
9,691,000

39.43%
52,297,000▌ Individuals,
other

7.48%
9,918,000

Number of shares

132,604,524▌ Foreign
corporation

23.07%
30,599,000▌ Othercorporations▌ Securities
companies22.11%
29,319,000

0.59%
776,000

Shareholders’ Memo
Fiscal year: April 1 to March 31
Regular General Meeting of Shareholders: June

Share price (JPY)2,500

Turnover(1,000 shares)
20,000▌ No. of shares heldin own names

Dividends: Year-end Dividend Record Date: March 31
Interim Dividend Record Date: September 30
The method of public notice will be by electronic public notice;provided however that, if notices cannot be made by electronic

16,0002,000

12,000

1,500

8,000

1,000

S h a r e h o l d e r R e g i s t r y A d m i n i s t ra t o r a n d S p e c i a l A c c o u n t s A d m i n i s t ra t o r :

4,000

500

Mitsubishi UFJ Trust and Banking Corporation
Contact:

public notice due to unavoidable circumstances,notices will be published in The Nikkei.
＊For notices on Nihon Parkerizing website URL:
https://www.parker.co.jp/

Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation,002018

2019

Address: 1-1 Nik k o-cho, Fuchu-shi, Tok yo

2020

Telephone: 0120（232）711（Free dial)
Postal address: Securities Agency Division, Mitsubishi UFJTrust and Bank ing Corporation, P.O. Box 29, Shin Tokyo PostOffice, 137-8081

IR Calendar
1 st Quarter
AprMayAnnouncemen
ts of Annual
Financial
Statements

Financial
Results
Briefing

2 nd Quarter
JunJulAug

General Meeting Announcement ofof Shareholders 1st quarter financial
statements

3 rd Quarter
SepOctAnnouncement of 2ndquarter financial
statements

WebsitePlease refer to the website of Nihon Parkerizing Co., Ltd
for detailed IR information.
Nihon Parkerizing

https://www.parker.co.jp/

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Nov

4 th Quarter
DecJanFeb

Announcement of 3rdquarter financial
statements

Mar