136th
Chairman and C.E.O.

Mitsuru Matsumoto

Kazuichi Satomi

periodApril 1, 2020

▼President and C.O.O.

InterimＢusinessReport
September 30, 2020

To Our Shareholders
Thank you very much for your continued support.
It is our pleasure to present our mid-term report for the 136th period, April 1st to September 30th, 2020.
As you well know, in this period the global economy was affected by the COVID-19 global pandemic, and subsequent
restrictions on social and economic activity created very difficult circumstances. While economic activity has graduallyresumed closer to home, in some countries and regions of the world the pandemic is spreading once again, and thesituation continues to be unpredictable. In the Japanese economy also, while consumer spending and corporate profits
showed signs of rebounding after the lifting of the state of emergency, the outlook remains uncertain.
The business environment faced by the Parker Group was one in which our key customers in the automotive industry
shutdown factory operations and adjusted production due to a fall in demand globally, resulting in a lower auto output.
In addition, our key customers in the steel industry also faced difficult circumstances as they reduced production due tostagnation of demand for steel.
In this period, the Parker Group entered the second year of its third mid-term management plan. Aiming to be a true
global company as a surface modification specialist, the Group instituted a variety of policies as we worked to achieve
our targets based on our key policies of growth strategies to win in global competition, group management optimization
and reform of governance in order to establish 3G Management (Global, Group, Governance). In addition, we reflectedon our founding spirit of sincerity and honesty, facing our customers sincerely, while pursuing innovation based on ourcore technology in order to be able to provide swift and accurate service and high quality products, and endeavoring tostrengthen our global quality improvement initiatives and research and development organization.

As a result, our consolidated business achievements for interim period were as described in the latter part of this report.
As resolved at the meeting of the Board of Directors on November 6, 2020, the interim dividend for this period will be
twelve yen per share, to be paid on December 10, 2020.
Regarding the economic outlook, it is anticipated that it will take some time for a solid recovery of economic activity
that had stagnated due to the effects of the COVID-19 pandemic as well as the continuing trade friction between theU.S. and China.
Regarding 決算ハイライト
the business outlook for the Parker Group, there are concerns that recovery of demand in the automotive
and steel industries will be continue to be difficult, and the outlook remains uncertain.
Against such an economic backdrop, the Parker Group will continue to pursue a range of policies to achieve the targetsof our third mid-term management plan while aiming for sustainable growth.
We look forward to the continuing support of our shareholders.
Thank you very much for your continued support.
It is our pleasure to present our mid-term report for the 136th period, April 1st to September 30th, 2020.

Consolidated results▌ Sales (Unit: Million yen)
129,207▌ Operating income (unit: Million yen)InterimEnd

InterimEnd

119,028
17,023
12,601

59,98759,9678,196

44,3177,610
2,9632019End/
interim2020
End/
interim2021
interim2019
End/
interimcompany

Interim11,424
15,723

9,449

6,013

9,262

5,875
2,938

4,448

2019
End/
interim2020
End/
interim2021
interimCompany outline 【As of September 30,2020】
Company name:NIHON PARKERIZING CO.,LTD.

Established:

July 12, 1928

Head Office:Employees:

2019
End/
interim4.56 billion yen
4.56 billion yen
4,390
4,390

First Section of Tokyo Stock
Exchange

2021
interim

Chairman andC.E.O.

KazuichiSatomi

Chief Executive Officer

President andC.O.O.

Mitsuru

MatsumotoChief Operating Officer

Director

Hiroyasu Tamura

General Manager of Administration
Division

Director

Masayuki Yoshida

General Manager of Technical Division
and Central Research Laboratories

OutsideDirector

Shimako EmoriOutside
Director

TatsuyaMori

Director

HayatoHosogane

OutsideDirector

Masaharu Kubota

Audit and Supervisory Committee
MemberOutside
Director

Koji

Audit and Supervisory Committee
Member(consolidated)

Listing:

2020
End/
interim

Directors 【As of September 30,2020】

15-1, 1-chome, Nihonbashi,Chuo-ku, Tokyo

Capital:Interim

End(Unit: Million yen)

20,13010,0452021
interim▌ Net income attributable to parent▌ Ordinary income (Unit: Million yen)End2020End/interim

Chika

Audit and Supervisory CommitteeMemberOverview by Business Segment (Business outline & share of sales)
OtherChemicals

Building maintenance, manufacture and sale ofbolts, etc.

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

1,543 million yen（3.5%）

18,200 million yen（41.1%）

Total
44,317
million yen
Jobbing
Rust preventive jobbing, heat treatment jobbing, etc.

17,022 million yen（38.4%）

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

7,550 million yen (17.0%）

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)

Ownership

8,541

7.10

Nippon Life Insurance Company

7,015

5.83

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

6,657

5.53

Meiji Yasuda Life Insurance Company

5,578

4.63

The Chiba Bank, Ltd.

4,765

3.96

Yugen Co., Ltd.

4,708

3.91

The Satomi Scholarship Foundation

4,633

3.85

Custody Bank of Japan, Ltd. (Trust account)

4,157

3.45

Sumitomo Mitsui Banking Corporation

3,113

2.58

2,664

2.21

▌ Financial
institutions

38.33%
52,825,000

9.32 %
12,354,000▌ Individuals,
otherratio (%)

NORTHERN TRUST CO.（AVFC）RE FIDELITY FUNDS

Custody Bank of Japan, Ltd. as trustee for NIPPON STEELCORPORATION Retirement Benefit Trust Account reentrusted by Mizuho Trust and Banking Co., Ltd▌ No. of shares heldin own names

300,000,000
132,604,524
4,042

7.63%
10,119,000

Number of shares

132,604,524▌ Foreign
corporation

22.46%
29,792,000▌ Othercorporations▌ Securities
companies

0.38%
499,000

21.88 %

29,013,000（Note）1. Nihon Parkerizing holds 12,354,000 treasury shares. (Not included in theShareholders’ Memoabove principal shareholders list.)
2. Shareholder ratios are calculated excluding the treasury shares.

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

Transition of share price

Dividends: Year-end Dividend Record Date: March 31
Interim Dividend Record Date: September 30

Share price (JPY)2,500

Turnover(1,000 shares)
20,000The method of public notice will be by electronic public notice;provided however that, if notices cannot be made by electronic

16,0002,000

public notice due to unavoidable circumstances,

12,0001,500＊For notices on Nihon Parkerizing website URL:

notices will be published in The Nikkei.

https://www.parker.co.jp/
8,000

1,000

S h a reholder R e g is tr y A d m inis tr ato r and S pec ial A c c o u nts A d m inis tr ato r:

4,000

500

Mitsubishi UFJ Trust and Banking CorporationContact:
Securities Agency Division, Mitsubishi UFJ Trust and BankingCorporation,002018

2019

Address: 1-1 Nikko-cho, Fuchu-shi , Tokyo2020

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

IR Calendar
1 st QuarterApr

2 nd Quarter

May
Announcementsof Annual
Financial
Statements

JunJulGeneral Meetingof Shareholders

Aug
Announcement of
1st quarter financial
statements

3 rd Quarter
SepOctAnnouncement of 2ndquarter financial
statements

Financial
Results
Briefing

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

https://www.parker.co.jp/検 索searchNov

4 th Quarter
DecJanFeb

Announcement of 3rdquarter financial
statementsMar