INTERIM REPORT
2017
December 1, 2016 to May 31, 2017

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 interim results for the NACHI-FUJIKOSHI Groupfor the period from December 1, 2016 to May 31, 2017.

Business Environment
The environment surrounding the NACHI-FUJIKOSHI Group during
the interim term has, overall, been a gentle recovery resulting fromthe rally of the economies of the developed countries led by theUnited States and of the Chinese economy.

Business Progress and Results
Given this environment, the NACHI-FUJIKOSHI Group has been
making full use of its strength as a comprehensive machinerym anu f a c t ure r w i t h r o b o t s a s i t s c o r e p r o du c t , an d als oencompassing cutting tools, machine tools, bearings, hydraulicequipment, and special steel businesses, to expand its sales, byﬁnding new customers, mainly new users in overseas countries,
deploying new products, and expanding its existing product range.
It has also strengthened its earning structure through increased
in-house production and improved productivit y, and othermeasures, and expanded its sales and production systems aiming
for future business growth.
Thanks to these initiatives, consolidated sales in the interim
term reached 114.4 billion yen, up 7.8% over the same period of
the previous year. This includes domestic sales of 57.1 billion(similarly increased by 1.6%) and overseas sales of 57.3 billion(similarly increased by 14.8%). The overseas sales share exceeded
50% for the ﬁrst time.
In terms of proﬁtability, operating income, ordinary income andquarterly net income attributable to owners of the parent were 7.7billion yen (similarly increased by 19.8% over the same interim
period of the previous ﬁscal year), 6.7 billion yen (similarly
increased by 55.9%) and 4.6 billion yen (similarly increased by
71.8%), respectively.
We wish to forego the payment of interim dividends for thisinterim period.

Future Initiatives
The Group announced a long-term vision, “Becoming a growing
company and fulﬁlling aspirations as a manufacturing company”.

Since then we have been taking initiatives aiming to achieve our
performance target of 400 billion yen in sales and 60 billion yen in
operating income, by looking ahead to change of the medium andlong-term demand environment, hammering out a business policythat positions robots as our core business and steadily expanding
the scale of our business.
As part of our efforts, in August 2017, we replaced the Toyama Tokyo two head ofﬁce system by integrating our head ofﬁce inTokyo, which is a personnel, corporate, and informational
collection and distribution center, in order to obtain superior
personnel from inside and outside of Japan, strengthen our links
with industry, academia, and government, and transform theconsciousness of our employees to deal with our globalization.
We will continue initiatives to further improve the performanceof NACHI-FUJIKOSHI Group, to prioritize volume zones inside andoutside of Japan, and to unite the group in efforts to increase theessential strength of the Group in R&D, sales and services, and in
manufacturing and procurement.
I would like to express my sincerest appreciation to all of ourshareholders for their continued support and understanding.
August 2017

Chairman and
Representative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated Operating Result for Second Quarter of Fiscal 2017)
Composition of Sales
Business Segment

MarketSpecial Steels/
Industrial Furnaces
and Others Cutting Tools
15%
6%
Hydraulic
Machine Tools
Equipment
8%24%¥114.4
BillionRobots14%
Bearings
33%

RegionEnergy/Infrastructure
21%

Asia
30%
Automotive
48%¥114.4
BillionJapan
50%¥114.4
BillionMachinery/
Retail31%

Europe6%
Americas14%

Trend in Business Results
Net Sales (¥ billions)■Interim■Full-year

218.5

218.2

Operating Income (¥ billions)■Interim■Full-year

211.4(207.4)18.9

18.5(18.0)

110.9

107.3
3

106.2
2

114.4
10.0

(100.1)

11.1
9.6

(9.5)
6.4

FY

2014

2015

2016

2017

FY

2014

2015

2016

7.7

2017

*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
Expanding the scale of our business in the world market
Based on the philosophy, “local production for local supply”, centered on rapidly growing overseas markets,
we will reinforce sales personnel and expand technical centers in order to develop new customers overseas,
as we also expand local production and local procurement to expand our international business.

Worldwide deployment of Technical Centers
Guided by the concept of the ROBOT FA Exhibition Hall at the Toyama Plant,
we will open Technical Centers at 10 overseas locations in China, North America, Europe, and the ASEAN sphere.
At the Technical Centers, in addition to exhibits of robots
and other products, we will exhibit many diverse systems
designed to overcome customers’ problems, and by, fore x amp l e , p e r f o r min g t r i al s hy p o t h e s i z in g a c t u alpro duction, concretely demons trate our ide as forautomating our customers’ operations.

Toyama Plant - ROBOT FA Exhibition Hall

Guangzhou Technical Center (from May 2017)

Strengthening local production systems overseas
We will expand our initiatives such as automated unmanned lines which have succeeded in Japan to our overseas factories,
improving productivity and strengthening our supply capability.
We operate abearing production
factory in Mexico.
This will increase
our capacity tosupply bearingsin the Americas.

We achieved integrated local productionin Thailand by operating bearing forging
and turning factories.
And as a base that supplies forged andturned products to bearing factories inother parts of the world, it will strengthen
our global cost competitiveness.
Factory in Mexico (from March 2017)

Factory in Thailand (from March 2017)

Integrating our Head Ofﬁce in Tokyo
In August 2017, we integrated our Head Ofﬁce in Tokyo in order to obtain
personnel skilled in robotics and other advanced technologies, tostrengthen exchanges and links with powerful corporations, universities,
and research institutes inside and outside of Japan, and to transform theconsciousness of our employees to promote globalization.
The former Toyama Head Ofﬁce will continue to grow as the Toyama
Plant, now positioned as the central factory that will serve as the modelfor our production centers in Japan and around the world.
Head OfficeToyama Plant

Expansion of Merchandise
Our aim is to expand merchandise for the industrial machinery field,
where growing demand is predicted, and to increase our market sharein a wide range of industries.

Deep plowing the compact robot market
We will expand our lineup of compact robots, which can be used in many ways.
We will strive to meet the industrial machinery ﬁeld’s growing need for automation
by introducing a series of new uniquely specialized compact robots to the market.

Expanding our lineup of bearings
We introduced the TAF-X Series of bearings
which provide higher load capacit y andser vice life about 1.5 times longer thanconventional products. They will ensure thelonger service life and higher speed now
required by the motorization of injection
molding machines and other equipment.

MZ series

EZ series

TAF-X series

Strengthening sales of sets of carbide drills and taps
We introduced a new series of carbide drills and taps to the market.
They achieve higher precision and higher efﬁciency processing
than previously possible at every step in hole drilling from the pilot
hole drilling to internal thread processing. Introducing drill and tap
sets will boost our customers’ productivity.

AQUA Drills EX Power Feed

Hyper Z Tap series

Opening of the renovated Nachi Toyama Dormitory and the Fujikoshi Ajisai Preschool

Nachi Toyama Dormitory

To prepare for an increase in employees
from outside the prefecture and inforeign trainees, we have expanded
the existing single employees
apartments and lodging facilities andhave opened the Nachi Toyama Dormitory.
With its exterior designed in a stylereminiscent of Southern France, it has
370 rooms, a large bath, restaurant
and other amenities, and creates anenvironment guaranteeing a pleasantexperience for both residents and visitors.

Fujikoshi Ajisai Preschool

The Fujikoshi Ajisai Preschool has
reopened at a new location to serve
the needs of employees and tocontribute to the life of the region.
Its 3,0 0 0m² site includes gardens
conveying the feelings of the four
seasons and a 300m² recreation room
where children can play in the winter.
Its complete educational program
includes English conversation classes
led by foreign teachers and nutritional
instruction utilizing a vegetable garden
on the preschool grounds.

4

FINANCIAL STATEMENTS
Consolidated Balance Sheets
Item(¥ millions)

Previous (For Your Reference)

Interim 2017(as of November 30, 2016)(as of May 31, 2017)

ASSETS:

Item

Previous (For Your Reference)

Interim 2017(as of November 30, 2016)(as of May 31, 2017)

LIABILITIES:Current assets
Cash and cash equivalents

123,736

125,034

20,796

19,759Notes and accounts receivable

48,42350,566Inventories

44,351

46,560Other

10,1648,149

Fixed assets

145,702

149,596

Property, plant and equipment

110,011

112,407

Buildings and structures

30,94031,504

Machinery and equipment

62,574

62,169Other

16,49518,733

Intangible ﬁxed assets

1,233

1,631

Investments and advances

34,45735,558

Total assets

269,438

274,631

Consolidated Statements of Income
Item

Net sales
Operating income
Ordinary income
Extraordinary income
Extraordinary losses
Quarterly income before income
taxes and minority interests
Quarterly net income attributableto owners of the parent

Interim 2016 (For Your Reference)(¥ millions)Interim 2017

1, 2015( December
to May 31, 2016 )1, 2016( December
to May 31, 2017 )

106,201
6,445
4,358
273
171

114,485
7,723
6,793
5
578

4,460

6,220

2,705

4,647

Current liabilities

90,42388,473

Notes and accounts payable

41,414

43,820

Short-term loans

32,70527,373Other

16,303

17,279Long-term liabilities

74,59978,455Long-term debt

49,782

53,943

Allowance for retirement beneﬁts

10,792

10,749Other

14,024

13,763

Total liabilities

165,023

166,928

Shareholders’ equity

95,51997,773

Common stock

16,074

16,074

Additional paid-in capital

11,121

11,220Retained earnings

68,56270,724

Treasury stock

△ 239

△ 246

Revaluations and translation adjustments

2,551

3,714

Non-controlling interests

6,344

6,214

Total net assets

104,415

107,702

Total liabilities and net assets

269,438

274,631

NET ASSETS:

Consolidated Statements of Cash Flows
Item

Interim 2016 (For Your Reference)
1, 2015( December
to May 31, 2016 )(¥ millions)Interim 2017

1, 2016( December
to May 31, 2017 )Cash ﬂows from operating activities

8,204

14,175

Cash ﬂows from investing activities△ 12,804△ 10,652

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 the end of the quarter

7,508△ 4,402

1,991

△ 946

21,487

20,093

23,47919,146

Breakdown of Shareholders

SHAREHOLDER INFORMATION (As of May 31, 2017)
Number of Shares Issued: 249,193,436
20,570
Number of Shareholders:Major Shareholders (top ﬁve):

Note: Shareholding ratios are calculated after
subtracting treasury stock (673 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.

20,955
13,62913,182
11,8888,659

Stock
Ownership
Associations
41,940 thousand(16.9%)

Foreign
Corporations
34,436 thousand(13.9%)

8.43
5.48
5.30
4.78
3.48

Individuals
41,044 thousand(16.5%)
Securities
Companies
1,924 thousand(0.8%)

Financial
Institutions
84,611 thousand(34.0%)
Other JapaneseCorporations
44,562 thousand(17.9%)DIRECTORS AND AUDITORS (As of August 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

DirectorStanding Corporate Auditor

Corporate Auditor

Toru Inoue

Yutaka Tsukamoto

Noboru Miura

Hiroshi Yamada

Somuku Iimura**Outside director or outside corporate auditor.

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

Yukihiro Shoji
Ryohei Nobetani
Hiroyuki Ushimaru
Corporate Ofﬁcer Tetsuyuki Onoda

Shigemi Tochitani Corporate Ofﬁcer Naritoshi Nakamura
Kazuho Tanimoto
Corporate Ofﬁcer Yuzo Aburamoto
Corporate Ofﬁcer Kazuyuki Tsunekawa

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer

Corporate Ofﬁcer
Corporate Ofﬁcer

Corporate Ofﬁcer

CORPORATE INFORMATION (As of August 2017)
Foundation:
Capital:Number of Employees:
Major Products:
Machinery and tools business
Components business
Other business
Major Domestic Ofﬁces and Plants:
Head Ofﬁce
Toyama Plant
Eastern Japan Main BranchCentral Japan Main BranchWestern Japan Main Branch
Higashi-Toyama Plant
Namerikawa Plant
Major Overseas Ofﬁces and Plants:

December 21, 1928
¥16 billion
3,076 (Group employees 7,009)*As of May 31, 2017
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Machining Systems, Robots, Robot Systems
Bearings, Hydraulic Equipment, Automotive Hydraulics
Special Steels, Coating, Industrial Furnaces
Shiodome Sumitomo Bldg. 17F, 1-9-2, Higashi-Shinbashi, Minato-ku, Tokyo 105-0021, Japan
1-1-1, Fujikoshi-Honmachi, Toyama 930-8511, Japan[Cutting Tools / Machine Tools / Bearings / Robots]

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

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
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.

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 Photograph
Bearings that are installed in industrial machinery.
The advancing performance of industrial machinery
demands bearings that can also bear higher load
at faster speed.
NACHI-FUJIKOSHI offers a wide lineup of
products with the world’s finest performance.