BUSINESS REPORT
2017
December 1, 2016 to November 30, 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 results for the NACHI-FUJIKOSHI Group for theperiod from December 1, 2016 to November 30, 2017.

Business Environment
The environment surrounding the NACHI-FUJIKOSHI Group during
the present term has, overall, been a gentle recovery resulting fromthe rally of the economies of the developed countries led by
Europe and the United 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 machinery
manufacturer with robotics business at its core, and also
encompassing cutting tools, machine tools, bearings, hydraulicequipment, and special steel businesses, to expand its sales, byﬁnding new customers, mainly new users in overseas countries,
releasing new products into the market, and establishing technicalcenters globally.
Thanks to the initiatives mentioned above, consolidated sales in
the current term reached 237.4 billion yen, up 12.3% comparedwith the previous period. This includes domestic sales of 119.1
billion yen (similarly increased by 5.5%) and overseas sales of118.2 billion yen (similarly increased by 20.0%). In terms of
proﬁtability, operating income, ordinary income and current term
net income attributable to owners of the parent were 16.1 billion
yen (similarly increased by 44.8% compared with the previous
period), 14.6 billion yen (similarly increased by 89.2%) and 9.7
billion yen (similarly increased by 2.5 times), respectively.

Future Initiatives
The demand structure surrounding NACHI-FUJIKOSHI Corp. ise x p e c t e d t o g o t hr o u g h a sig ni ﬁ c an t chang e du e t o t h eacceleration in the deployment of FA (Factory Automation) system
for manufacturing, accompanied by the advancement of AI(Artiﬁcial Intelligence) and IoT (Internet of Things) technology, in
addition to the declining birthrate and aging population and thedeclining labor force.
Seizing this change in the demand structure as a major
opportunity, the NACHI-FUJIKOSHI Group will enhance the natureo f all a sp e c t s o f s al e s an d s e r v i c e , m anu f a c t ur in g an dprocurement, and research and development. We intend to do thisby focusing on the robot business in which demand is expected to
grow further, and establishing a medium-term management policy,“Innovate in manufacturing worldwide with advanced FA systems
and mechatronics.” We will also strive to further improve our
performance by working to expand product lineup, create new
business opportunities, carry out fundamental cost reform, andstrengthen and develop human resources.
I would like to express my sincerest appreciation to all of ourshareholders for their continued support and understanding.
February 2018

Dividends
With regard to the ﬁscal year-end dividend, taking into account the
proﬁt and the future business development, it has been decided
that the dividend would remain the same as the previous period
and 10 yen per share would be paid.

Chairman and
Representative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated)
Composition of Sales
Business Segment

MarketSpecial Steels/
Industrial Furnaces Cutting Tools
and Others
14%
6%
Hydraulic
Machine Tools
Equipment
8%24%¥237.4
BillionRegionEnergy/Infrastructure
22%

Asia
30%

Robots15%

Europe6%
Americas14%

Machinery/
Retail28%

Bearings
33%

Trend in Business Results
Net Sales (billion yen)

Operating Income (billion yen)

Net Income Attributable to
Owners of the Parent (billion yen)

237.4
218.5

Japan
50%

¥237.4
BillionAutomotive
50%¥237.4
Billion

11.5

211.4

18.9
9.7
16.1

11.1

3.9

FY

2015

2016

2017

FY

2015

2016

2017

FY

2015

2016

2017

TOPICS
Launch of New Medium-term Management Plan
NACHI-FUJIKOSHI Corp. has formulated a new medium-term management plan covering up to FY2020 as amilestone for realizing our long-term vision, and begun taking steps to achieve further expansion of our operations.
*For more information on the medium-term management plan, please visit our website.

Long-term vision performance goals
Sales at 400 billion yen
Operating income at 60 billion yen
Operating income margin at 15%

Performance goals in FY2020
Sales at 300 billion yen
Operating income at 27 billion yen
Operating income margin at 9%

Mid-term Management Policy“Innovate in manufacturing worldwide with advanced FA system and mechatronics”
NACHI-FUJIKOSHI Corp. utilizes robot technology to connect processing technology
such as cutting, grinding, forming, heat treatment, cleaning, and coating,400
with production technology used to manufacture a variety ofbillion yen
parts such as those for vehicles, construction machinery,
and industrial machinery, and offers the most optimal
Sales
300
FA system solutions.
billion yen

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Our Robot Business Initiatives
Going forward, demand for robots is expected to further expand in various fields and uses, in addition to the fields ofautomobile, industrial machinery, electronics, electron, and electronics manufacturing service (EMS). NACHI-FUJIKOSHI Corp.
provides the latest and easy-to-use robots and systems in order to satisfy our customers’ FA needs.

Enhancement of compact robot MZ series
We have introduced “MZ12” to the market. MZ12 has basefeatures of MZ series (compact, light weight, and rigidity) andis capable of transporting 12kg, which is the biggest demandin the ﬁelds of electronics, electron, and EMS.
We will continue to make efforts in expanding the compact
robot market.

Worldwide deployment of Technical Centers

MZ12

NACHI-FUJIKOSHI Corp. has established technicalcenters, where visitors can experience the latest robotics
system, in 10 locations worldwide with high demand for
robots, including Shanghai in China. The centers propose
a user-friendly FA system to customers in each location.

Guangzhou Technical Center

Expansion of Merchandise
NACHI-FUJIKOSHI Corp. develops and provides high precision, high efficiency, and long-life merchandise to the extensive
industrial machinery field to realize productivity enhancements for our customers.

High-pressure hydraulic equipment
We have released the high-pressure type variable volume piston pumpfor press machine “PZH-3B,” which is compact and offers the highest
level of high pressure, targeting the high-pressure hydraulics ﬁeld
where hydraulic equipment is used for a variety of purposes such aspress processing of electronics and electron parts.
This piston pump helps meet the needs for energy saving and morecompact industrial machinery.

Introducing screw parts for ﬂuororesin to the market
PZH-3BWe have added to our lineup NPR-FX25, screw parts compatible with injection
molding of ﬂuororesin parts, which is in increasing demand in the automotive
ﬁeld. It contributes to the stable mass production of ﬂuororesin parts.
NPR-FX25

Enhancement of the Tap series lineup
The lineup of Hyper Z Tap series,
which realized stable processing
accuracy and longer tool life, hasbeen expanded.
This series achieves stable processingof difﬁcult-to-cut materials, mainly
stainless, signiﬁcantly improving
productivity.

Hyper Z Tap series won the Machinery ComponentAward of the Nikkan Kogyo Shimbun “Cho” Monodzukuri
Innovative Parts and Components Award
This award recognized thesigniﬁcant improvements
made in wear resistanceand fracture resistance,
achieved by integrating
seeds technology withmaterials, heat treatment
and surface treatment.

Hyper Z Tap series

Strengthening Cost Competitiveness in Global Contexts
Toyama Plant (mother plant) will work on the mechanization
and rationalization of the production line, expansion of
the inhouse production of core components, and thebuilding of FA systems that incorporate robot andinformation technology. These improvements will besequentially deployed to overseas plants to strengthen
our cost competitiveness in global contexts.

China Plant (manufacturing of robots, hydraulic equipment, and tools)

Mexico Plant (manufacturing of bearings)

At the Mexico Plant, an integrated production line forgrinding and assembling has entered full-scale operation.
In addition, a robotics automatic assembly line will be
introduced at the China Plant.

4

FINANCIAL STATEMENTS
Consolidated Balance Sheets
Item(million yen)(million yen)

2016(For Your Reference)2017(as of November 30, 2016)(as of November 30, 2017)

ASSETS:

Item

2016(For Your Reference)2017(as of November 30, 2016)(as of November 30, 2017)

LIABILITIES:Current assets
Cash and cash equivalents

123,736

139,308

20,79623,436

Notes and accounts receivable

48,42353,561Inventories

44,351

51,925Current liabilities

90,42399,083

Notes and accounts payable

41,414

48,105

Short-term loans

32,70529,534Other

16,303

21,443Long-term liabilities

74,59980,671Long-term debt

49,782

53,925

Other

10,164

10,385

Allowance for retirement beneﬁts

10,792

10,866

Fixed assets

145,702

159,846

Other

14,024

15,879Property, plant and equipment

110,011

114,867

Total liabilities

165,023

179,755

Buildings and structures

30,94031,598

Shareholders’ equity

95,519102,785

Machinery and equipment

62,57464,177

Common stock

16,074

16,074

Additional paid-in capital

11,121

11,13775,824

NET ASSETS:

Land

8,053

9,483

68,5628,442

Retained earnings

Other

9,608

Treasury stock

– 239

– 251

Revaluations and translation adjustments

2,551

10,113

Non-controlling interests

6,344

6,500

Total net assets

104,415

119,399

Total liabilities and net assets

269,438

299,155

Intangible ﬁxed assets

1,233

2,654

Investments and advances

34,45742,324

Total assets

269,438

299,155

Consolidated Statements of Income
Item

Net sales
Operating income
Ordinary income
Extraordinary income
Extraordinary losses
Income before income taxes
and minority interests
Net income attributable toowners of the parent(million yen)

2016(For Your Reference)

2017(Year ended November 30, 2016) (Year ended November 30, 2017)

211,449
11,139
7,765
280
226

237,461
16,13014,69031

7,819

14,080

3,929

9,747

641

Consolidated Statements of Cash Flows
Item

2016(For Your Reference)(million yen)

2017

(Year ended November 30, 2016) (Year ended November 30, 2017)

Cash ﬂows from operating activities

15,86625,958Cash ﬂows from investing activities‒ 23,418‒ 19,527

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

7,137

‒ 3,874‒ 1,394

2,443

21,487

20,09320,093

22,537

SHAREHOLDER INFORMATION (As of November 30, 2017)
Number of Shares Issued: 249,193,436
20,096
Number of Shareholders:Major Shareholders (top ﬁve):

Note: Shareholding ratios are calculated after
subtracting treasury stock (681 thousand shares).

Breakdown of Shareholders

Individuals
39,177 thousand(15.8%)

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.

20,746
13,47013,182
11,8888,659

Stock
Ownership
Associations
41,608 thousand(16.7%)

Foreign
Corporations
35,559 thousand(14.3%)

8.35
5.42
5.30
4.78
3.48

Securities
Companies
2,708 thousand(1.1%)

Financial
Institutions
84,738 thousand(34.1%)
Other JapaneseCorporations
44,720 thousand(18.0%)DIRECTORS AND AUDITORS (As of February 21, 2018)
Chairman and
Representative Director

Hiroo Honma
President andRepresentative Director

Managing Director

Director

Director

DirectorStanding Corporate Auditor

Masayuki Kobayashi

Toru Inoue

Noritsugu Sasaki

Kazuo Tsukahara*

Masashi HoriManaging Director

Director

Director

DirectorStanding Corporate Auditor

Kouichi Watanabe

Tetsu Furusawa

Noboru Miura

Shinjiro Iwata*

Masakazu Yamazaki*

Kenji Susukida

Managing Director

Director

DirectorStanding Corporate Auditor

Corporate Auditor

Executive
Vice President

Shigeru Togashi

Shinichi Urata

Jun Sakamoto

Hiroshi Yamada

Somuku Iimura*

Hidenori Hayashi

Director

Director

Yutaka Tsukamoto

Hideaki Hara

*Outside director or outside corporate auditor.

CORPORATE OFFICERS (As of February 21, 2018)
Senior Corporate Ofﬁcer
Senior Corporate Ofﬁcer
Senior Corporate Ofﬁcer
Senior Corporate Ofﬁcer

Satoshi Hamamoto
Ryohei Nobetani
Akira Kunisaki
Tsutomu Kurosawa

Corporate Ofﬁcer
Corporate Ofﬁcer
Corporate Ofﬁcer
Corporate Ofﬁcer

Yusaburou Nomura
Tetsuo Koshihama
Hiroyuki Ushimaru
Tetsuyuki Onoda

Corporate Ofﬁcer
Corporate Ofﬁcer
Corporate Ofﬁcer

Shigemi Tochitani
Kazuho Tanimoto
Yuzo Aburamoto

Corporate Ofﬁcer
Corporate Ofﬁcer

Kazuyuki Tsunekawa
Naritoshi Nakamura

CORPORATE INFORMATION (As of November 30, 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

December 21, 1928
¥16 billion
3,072 (Group employees 7,202)
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Machining Systems, Robots, Robotics 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+81-76-423-5111

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

Higashi-Toyama Plant
Namerikawa Plant

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 TECHNOLOGY（THAILAND）
CO., LTD.
NACHI SINGAPORE PTE. LTD. (Singapore)

Major Overseas Ofﬁces and Plants:

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.

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.

These are cutting tools called “Taps,”which are used during the final process ofcreating threaded screw holes.
The Hyper Z Tap series brings together
NACHI’s seeds technology to achieve stable

2. Questions regarding Payments of Accrued Dividends and Other General Administrative Matters regarding Sharesprocessing accuracy and longer tool life.

Please contact Sumitomo Mitsui Trust Bank, Limited which administers theshareholders registry.

This series helps improve productivity
at machining sites.