BUSINESS REPORT
2018
December 1, 2017 to November 30, 2018

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, 2017 to November 30, 2018.

Business Environment

The environment surrounding the NACHI-FUJIKOSHI Group during
the present term has, overall, transitioned to a bullish market amidst
the gentle recovery of Japan’s economy as well as continuingworldwide economic growth centered on Europe, the United States,
and Asia.

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, anddevelopment and market introduction of pioneering new products.
We have also promoted strengthening and expansion of ourdevelopment, sales and production systems aiming for expansion of
mid-term business operations and improvement of profit structures.
Thanks to these initiatives mentioned above, consolidated net
sales in the current term reached 252.2 billion yen, up 6.2% overthe same period of the previous year. This includes domestic salesof 131 billion yen (up 9.9% YoY) and overseas sales of 121.1 billion
yen (up 2.4% YoY). In terms of profitability, in addition to sudden
price increases in raw materials, energy and distribution costs,
personnel expenses, and other increasing costs put pressure on
profits, and operating income, ordinary income and this period’s net
income attributable to owners of the parent were 15.3 billion yen(down 5.1% YoY), 13.9 billion yen (down 5.4% YoY) and 8.9 billion
yen (down 8.2% YoY), respectively.

transition to bullish demand in the automobile and construction
machinery fields, and it is expected that rationalization andautomation needs will further rise centered on the industrial
machinery field. On the other hand, with regard to the future, it isexpected that there will be major changes in the management
environment surrounding NACHI-FUJIKOSHI Group. including
opacity of the economic climate including the trade issue between
the United States and China, the strengthening movement forelectric vehicles (EV) in the automobile market, the decreasing
worldwide workforce, and acceleration of factory automation (FA)due to the progress of AI and the IoT.
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 slogan of “Innovate
in manufacturing worldwide with advanced FA systems andmechatronics.” We will also leverage our unique strengths ind i v e r s e b u s i n e s s i n c l u d i n g r o b o t i c s , t e c h n o l o g y, a n dmanufacturing knowhow and create new products and business
opportunities that respond to EV and manufacturing FA needs,
along with striving to further improve our performance by carryingout fundamental cost reform, and strengthening and developing
human resources.
We would like to express our sincerest appreciation to all of ourshareholders for their continued support and understanding.
February 2019

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 100 yen per share would be paid.
Furthermore, on June 1, 2018, NACHI-FUJIKOSHI Corp. had a shareconsolidation such that 10 shares were consolidated to one share.

Future Initiatives

With regard to the future outlook, in the near future there will be a

Chairman and
Representative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated)
Composition of Sales
Business Segment

MarketSpecial 特殊鋼
Steels/・Industrial工業炉ほか
Furnaces
工具Tools
Cutting
and Others
15
6％
14％
%
7%
Machine Tools
工作機械
油圧機器
Hydraulic
7%
8％
24
％
Equipment¥252.2
1,144億円
26%
BillionRobots
ロボット
13%
14
％

RegionEnergy/Infrastructure22%¥252.2
BillionAsia
28%
Automotive
50%

ベアリング
Bearings

3333%％

Americas14%

Trend in Business Results
Net Sales (billion yen)

Europe6%Machinery/
Retail
28%

Japan
52%

¥252.2
BillionOperating Income (billion yen)

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

252.2
237.4
211.4
9.7
16.1

8.9

15.3

11.1

3.9

FY

2016

2017

2018

FY

2016

2017

2018

FY

2016

2017

2018

TOPICS
1.Expansion of Merchandise
We respond to our customers’ advanced needs with our proprietary technology and knowhow for the development of EV and manufacturing FA.

Expansion of our compact robot lineup
We introduced the compact robot “MZ01” to the market. We realized theworld’s smallest body for a vertical, multijointed robot in the 1kg movableclass, and respond to needs for shrinking spaces of facilities in fields suchas electrical machinery, electronics, and EMS that handle many small parts.

Introduction of New Carbide Drill to the Market
We released the innovative carbide drill“AquaREVO drill,” made with developed
carbide materials, coating, and a newly-designed cutting edge.

The automated line leveraging
NACHI-FUJIKOSHI Corp.’s robot system
was introduced to the carbide materials
production line, and combined quality
stabilization and enhanced productivity.
Compact Robot MZ01

Carbide Drill “AquaRevo Drill”

Carbide materials production line

Expansion of products for EV and autonomous driving
We will accelerate product development responding to EV andautonomous driving technology.
Through optimization of the cage shape and reduction of the bearing
width, the thin-walled deep groove ball bearing for electric units
contributes to making electric units more compact and lighter.
The electric actuator based on solenoid technology is available with ahigh-powered lock mechanism that contributes to electronic controlof the powertrain.

Electric actuatorThin-walled deep groove ballbearing for electric units

2.Promotion of Initiatives toward Globalization
We are promoting overseas business expansion toward realizing our overseas sales ratio becoming 60% of our overall sales, raised with
our long-term vision.

Business Expansion in China

Proactive Exhibits at Worldwide Exhibitions

We changed the company name of our Chinese sales subsidiary to
NACHI-FUJIKOSHI (CHINA) CO., LTD. and We have strengthened ourunification functions in China. In addition, we attended the China
International Import Expo, which is led by the Chinese government,
and the exhibited robots and IoT caught visitors’ attention.

IMTS (United States) September 2018
China International Import Expo November 2018
JIMTOF (Japan) November 2018

3.Strengthening Manufacturing Structures

We establish factories with the Iatest robot and FA systems, and construct slim, flexible manufacturing systems.

Establishment of Factories in Japan

Introduction of unmanned automated lines

We will establish our 3rd robot factory (for manufacturing compact robots) and our 4th automotive
hydraulics factory. Both will be in operation in 2019.

We are promoting introduction of unmanned automated lines inall factories towards rationalization and lowering personnel formaking products with machines and equipment.

New factory for compact robots

Automated production line leveraging the robot system

Received awards including the Nikkan Kogyo Shimbun’s The Best 10 New Products Award
The CZ10 slim collaborative robot was highly evaluated for its excellent
safety, ease of use, and highly precise work performance, and received
a Ten Best New Products Award.
NPR-FX25, screw parts for injection molding machines for fluororesin was
highly evaluated for its technological creativity combining longevity andhigh strength, and was awarded the Machinery and Robot Parts Award of
the “Cho” Monodzukuri Innovative Parts and Components Award.

The award ceremony for the CZ10

NPR-FX25

4

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

November 30, 2017 November 30, 2018

November 30, 2017 November 30, 2018

Item(for your reference)

ASSETS:(for your reference)

LIABILITIES:
139,308

144,109

Cash and cash equivalents

23,43622,363

Notes and accounts receivable

53,56158,378Inventories

51,92556,337

Current assets

10,385

Other

7,030

Current liabilities

99,083

104,240

Notes and accounts payable

48,10549,923

Short-term loans

29,53434,403

Other

21,443

19,912Long-term liabilities

80,671

71,833Long-term debt

53,92549,178

Allowance for retirement benefits

10,866

10,543

Other

15,87912,162

Total liabilities

179,755

176,124

Fixed assets

159,846

153,090

Property, plant and equipment

114,867

113,634

Buildings and structures

31,59830,582

Shareholders’ equity

102,785

109,571

Machinery and equipment

64,177

66,239Common stock

16,074

16,074

Additional paid-in capital

11,137

11,221
82,537NET ASSETS:

Land

9,483

9,441

Retained earnings

75,824

Other

9,608

7,370

Treasury stock

– 251

– 262

Revaluations and translation adjustments

10,113

4,968

Non-controlling interests

6,500

6,536

Total net assets

119,399

121,076

Total liabilities and net assets

299,155

297,200

Intangible fixed assets

2,654

2,749

Investments and advances

42,32436,706

Total assets

299,155

297,200

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)

Year EndedYear Ended
November 30, 2017 November 30, 2018237,461
16,13014,69031641

252,20915,306
13,90120

14,08013,325

9,747

8,945

596

Consolidated Statements of Cash Flows
Item(million yen)

Year EndedYear Ended
November 30, 2017 November 30, 2018

Cash flows from operating activities

25,95820,207

Cash flows from investing activities‒ 19,527‒ 18,110

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

‒ 3,874‒ 2,582

2,443

‒ 758

20,093

22,53722,537

21,778

SHAREHOLDER INFORMATION (As of November 30, 2018)
24,919,343
Number of Shares Issued:
21,127
Number of Shareholders:Major Shareholders (top five):

Note: Shareholding ratios are calculated after
subtracting treasury stock (70 thousand shares).

NACHI WANEI Stockholding
Employees’ Stock Ownership Plan
Toyota Motor Corporation
MUFG Bank, Ltd.
The Hokuriku Bank, Ltd.

2,112
1,366
1,318
1,188
865

8.50
5.50
5.30
4.78
3.48

DIRECTORS AND AUDITORS (As of February 19, 2019)
Hiroo Honma

President andRepresentative Director

Jun Sakamoto
Executive
Vice PresidentManaging Director

Director

Shigeru Togashi
Managing Director

Toru Inoue
Director

Masayuki Kobayashi
Managing Director

Hideaki Hara

Hidenori Hayashi

Tetsu Furusawa
Director

Shinichi Urata

Eastern Japan Main BranchCentral Japan Main BranchWestern Japan Main Branch
Higashi-Toyama Plant
Namerikawa Plant
Major Overseas Offices and Plants:

Notice of Changes
in Share Units andShare Consolidation

Individuals
4,734 thousand(19.1%)

Financial
Institutions
7,958 thousand(32.0%)

Other JapaneseCorporations
4,524 thousand(18.2%)

Director

Securities Companies
163 thousand(0.7%)

Director

Noritsugu Sasaki

Shinjiro Iwata*

Director

Director

Noboru Miura

Standing Corporate Auditor

Hiroshi Yamada

Standing Corporate Auditor

Junichi Kodama*

Masashi Hori

Standing Corporate Auditor

Director

Masakazu Yamazaki*

Masatoshi Akagawa

Director

Corporate Auditor

Yutaka Tsukamoto

CORPORATE INFORMATION (As of November 30, 2018)
Foundation:
Capital:Number of Employees:
Major Products:
Machinery and tools business
Components business
Other business
Major Domestic Offices and Plants:
Head OfficeToyama Plant

Stock
Ownership
Associations
4,233 thousand(17.0%)

Foreign
Corporations
3,235 thousand(13.0%)

Number of shares Shareholding ratio
held (thousand)(%)

Shareholders

Chairman and
Representative Director

Breakdown of Shareholders

Somuku Iimura**Outside director or outside corporate auditor.

December 21, 1928
¥16 billion
3,147 (Group employees 7,484)
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

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-FUJIKOSHI (CHINA) CO., LTD.
NACHI (JIANGSU) INDUSTRIES CO., LTD. (China) NACHI TECHNOLOGY（THAILAND）
CO., LTD. (Thailand)
NACHI SINGAPORE PTE. LTD. (Singapore)
Effective as of June 1, 2018, the Company changed the number of shares constituting one unit andconsolidated shares as follows.

● Changes in Share Units

We changed from 1,000 shares to 100 shares.

● Share Consolidation

10 shares of common shares
have been consolidated to 1 share.

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 Meeting of Shareholders on November 30
Record Date:
Year-end dividend on November 30
Interim dividend on May 31
100 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 PhotographThis is the carbide drill “AquaREVO Drill.” It is
an innovative drill that realizes high precision andlongevity by using newly developed carbide
materials, coating, and a newly-designed
cutting edge.
It contributes to enhanced productivity at the
production site and lowering costs.