BUSINESS REPORT 2009
December 1, 2008 to November 30, 2009

NACHI-FUJIKOSHI CORP.
Securities Code: 6474

TO OUR SHAREHOLDERS
I would like to repor t to you about
NACHI-FUJIKOSHI’s business performancefor the fiscal year ended November 30, 2009.

Business Environment

T he env iro nm ent sur ro un ding t he
NACHI-FUJIKOSHI Group was unprecedentedly
harsh with the sudden and broad-based
contraction of markets across a wide rangeof areas, including domestic and overseas
automobiles, industrial machiner y,electrical/electronics, etc.

Business Progress and Results

In this environment, the NACHI-FUJIKOSHI
Group continued its efforts to expand into
new markets leveraging our proprietary
engineering business, reduce fixed costs,
re-engineer production systems to improve
productivity, and strengthen our earnings
base.
The decrease in demand, however, could
not be stopped and revenues fell 47.5%
year-on-year to 107.5 billion yen. By geography,
revenues in the Japan market were 70.1
billion yen (a decrease of 49.7% comparedto the previous period) and revenues in therest of the world were 37.5 billion yen (adecrease of 42.9% vs. the previous period).

The colorful triangle on the lower
right of the front cover symbolizes
the notion of “Sei-Han-Go,”or“Fusing
discrete and opposing ideas into
one,” the Group corporate philosophy
implicit in the meaning of “Fuji”
in our name.

Facing a sudden and dramatic fall in sales
and production levels, we endeavored tolower materials and external vendor costs,
reduce fixed costs including labor, and reduce
various expenses such as selling, general,and administrative costs. Despite these efforts,
however, the impact of reduced operatinglevels was significant, and the Group recorded
an operating loss of 3.2 billion yen, and an
ordinary loss of 5.0 billion yen.
When extraordinary income and loss fromgains on sale of fixed assets and re-structuringcosts, as well as corporate taxes, etc., areaccounted for, we recorded a net loss of 7.4
billion yen for the period.

Cash Dividends

In consideration of our operating results
during the period, and the prospects forbusiness growth in the future, dividends
were set with regret at 1.50 yen per share.

Future Action

While recovery of demand can be observedin cer tain areas, primarily in emerging
countries and in certain industrial segments
such as automobiles, production levels
across the industrial machinery field as awhole remain at low levels. The overall harshenvironment is forecasted to continue.

The NACHI-FUJIKOSHI Group will continue
its efforts to expand the “Nachi Business,”which integrates industrial tools, components,and materials/heat treatment technologies,
expand into emerging markets where long-term
growth can be expected, and explore newmarkets such as energy and infrastructure.
We shall endeavor to improve our operating
results through fundamental improvement of
all aspects of our business including
manufacturing, procurement, distribution,
research & development, organization andhuman resources, reduce costs, and build astable platform for earning growth.
I thank all of our shareholders for yourcontinued support and understanding.
February 2010

President and Representative Director

RESULTS OF OPERATIONS (Consolidated)
Sales by Business Segments
Special Steels/
Industrial Furnaces
and Others
8%
HydraulicEquipment
16%

Cutting Tools
15%¥107.5
BillionBearings
42%

Robots6%

Overseas Sales

Energy/Infrastructure
15%

Machine Tools/
Precision Machinery
13%

Net Sales (¥ billions)
193.6

Sales by Market

Automotive
48%¥107.5
BillionMachinery/
Retail37%

America33%¥37.4
BillionEurope12%

Operating Income (¥ billions)

204.8

Asia, Oceania,
andthe Middle East
55%

16.7

Overseas Sales (¥ billions)
64.1

15.5

65.5

37.4

107.5

(3.2)
2007

2008

2009

2007

2008

2009

2007

2008

2009

TOPICSWe are working to grow operations in global markets by expanding into emerging markets, wherelong-term growth can be expected, energy/infrastructure markets, and the continued expansionof our engineering business.

Shifting our Focus toward Emerging Markets
We increased our production capacity, primarily for bearings used in automobiles and motorcycles, in China, Thailand, and Brazil.
We also expanded our sales, service, and presentation systems in India, the Middle East, and Central & South America.

NACHI TECHNOLOGY (THAILAND) CO., LTD.
(South East Asia, Thailand)

DONGGUAN NACHI C.Y. CORPORATION(Shanghai, China)

Construction of factory #3 was completed inAugust 2009. We strengthened our production
system for motorcycle bearings, demand forwhich is expanding in ASEAN.

With growth in the China automobile market,
we constructed a new production line andstarted increasing production of bearings usedin constant-velocity joints.

SHANGHAI NACHI BEARINGS CO., LTD.
NACHI (SHANGHAI) PRECISION TOOLS CO., LTD.
(Shanghai, China)
Full local production of hydraulic machinery
for construction equipment began in Spring
2009, adding to our existing lines of bearings
and tools for the China automobile industry.

Major Overseas Facilities

Overseas Exhibitions
We participated actively at exhibitions and private showsheld in emerging markets. Robots for machine processing
and palletization were the center of attention.

NACHI BRASIL LTDA. (Brazil)
IMTEX (India Exhibition) (January 2009)

METALEX 2009 (Thailand Exhibition)(November 2009)

Aiming at the expansion of markets in Central
and Sou th America, we built additional
manufacturing facilities in Mar ch 20 0 9,
strengthening production capacity for bearings
used in automobiles and motorcycles.

Developing Energy and Infrastructure Markets
We continued to introduce distinctive new products, with
the intention of making energy and infrastructure markets
the primary drivers of growth.
Palletizing Robot[Presto LP130/180]
These robots enablehigh-speed, high-precisionpalletization of cardboard
boxes, bags, bottles, andmetal products. We willdevelop
distribution
infrastructure markets
primarily in emerging
countries.

Christmas Tree-Shaped Formed Cutter

Linear Motor Car Branching Unit

The energy-saving system that provides for the control of the large power
requirements of railroads, bridges, rivers, harbor facilities, environmental systems,
etc. The Chubu Hydraulic Center, established in September 2009, will provide
customers with comprehensive support from design to after-sales service.

Magni Cradle S Series

Essential tools for high precision, high performance processing ofgenerator turbines and aircraft engines.

River Gate Unit

Energy-Saving Hydraulic System [α Design Unit]

Dialysis Solution

Large Servers

Greatly reduces the shock of earthquakes while remaining thin and light.
Protects servers, medical equipment, artworks, etc.

Bringing Our Engineering Business to the WorldNACHI TOOL ENGINEERING CO., LTD. was established in May 2009 to strengthen operations in recycling and re-use of cutting tools.
This company is positioned as the mother factory from which we will grow into global markets.
(Japan)(Overseas)

Toyama Technical Center Eastern Japan Service Center(Inside the Toyama Plant) (Ayase City, Kanagawa)

NACHI MEXICANA,S.A. DE C.V.
ENGINEERING CENTERNACHI (SHANGHAI)
NACHI TOOL AMERICA INC.
PRECISION TOOLS CO., LTD.
SHANGHAI NACHI SAW CO., LTD.

FINANCIAL STATEMENTS
Consolidated Balance Sheets
Item(¥ millions)

2009

2008

30,
30,
（As of November）（As of November
）
2009
2008

ASSETS:

Item

2009

2008

30,
30,
（As of November）（As of November
）
2009
2008

LIABILITIES:
80,802

90,617

Cash and cash equivalents

28,37313,001

Notes and accounts receivable

23,65538,507

Current assets

69,501

91,892

Notes and accounts payable

18,14740,093

Short-term bank loans

43,061

36,687

Other

8,292

15,111

57,21937,020Bonds and long-term debt

44,26427,730Allowance for retirement benefits

6,339

6,081

Current liabilities

Long-term liabilities

Inventories

23,62932,787

Other

5,143

6,320

Fixed assets

95,445

101,827

Other

6,615

3,208

Property, plant and equipment

81,07287,395

Total liabilities

126,720

128,913

Buildings and structures

31,211

31,858NET ASSETS:

Machinery and equipment

35,38045,922

Land

7,320

7,376

Other

Intangible fixed assets
Investments and advances
Total assets

7,159

2,237

391

403

13,981

14,027

176,248

192,444

Consolidated Statements of Income
Item
Net sales
Operating income
Ordinary income
Extraordinary income
Extraordinary losses
Income before income taxes
and minority interests
Net income(¥ millions)

2009

2008

107,586(3,217)(5,051)740
1,351

204,844
15,532
13,953955
978(5,661)(7,449)13,931
8,347

For the year ended
For the year ended（November（November
30, 2009 ）30, 2008 ）

52,42662,439Common stock

16,074

16,074

Additional paid-in capital

11,561

11,567Retained earnings

24,967

34,972

(176)

(175)

Revaluations and translation adjustments(5,232)(1,681)

Minority interests

2,332

2,772

Shareholders’ equity

Treasury stock

Total net assets

49,52763,530Total liabilities and net assets

176,248

192,444

Consolidated Statements of Cash Flows
Item
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents
at beginning of the year
Cash and cash equivalents
at end of the year(¥ millions)

2009

2008

(2,161)(8,376)
26,493

14,730(23,647)
1,126

15,428(8,131)

12,833

20,96528,262

12,833For the year ended
For the year ended（November（November
30, 2009 ）30, 2008 ）SHAREHOLDER INFORMATION (As of November 30, 2009)
Number of Shares Issued:
Number of Shareholders:Major Shareholders:

249,193,436
34,562

Shareholders

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

NACHI WANEI Stockholding
Toyota Motor Corporation
Employeesʼ Stock Ownership Plan
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Hokuriku Bank, Ltd.

14,71913,182
12,101
11,888
8,659

5.91
5.29
4.86
4.77
3.48

Breakdown of Shareholders
Foreign Investors
9,457,000
shares
(3.8%)
Financial
Institutions
82,146,000
shares(33.0%)

Stock
Ownership
Associations
31,974,000
shares(12.8%)

Other
Japanese
Corporations
45,131,000
shares(18.1%)

DIRECTORS AND AUDITORS (As of February 23, 2010)
President andRepresentative Director

Individuals
79,002,000
shares(31.7%)

Securities
Companies
1,481,000
shares (0.6%)

CORPORATE OFFICERS(As of February 23, 2010)

Hiroo Honma

Makoto Sasaki

Managing Director

DirectorStanding Corporate Auditor

Atsushi Saguchi*

Kiyoshi Meguro

Corporate Officer

Corporate Officer

Managing Director

Managing Director

Director

Corporate Auditor

Corporate Officer

Corporate Officer

Zenshiro Kaneko

Yukihiko Tanaka

Naoshi Katayama

Managing Director

Director

Atsushi Seki*

Kenji Susukida

Managing Director

DirectorStanding Corporate Auditor

Noriyasu Shiba
Kiyoshi Nakagawa

Hideo Terakoshi

Keiichi Ogino
Director

Naoto Nakano

Teruo Akashi

Corporate Auditor

Masayuki Kobayashi

Sachio Tanaka
Toshio Sugiura

Eiichi Fukushima*

Nishiki Seto

Corporate Officer

Corporate Officer

director or outside* Outside
corporate auditor

Corporate Officer

Corporate Officer

Nobuo Segawa

Tadashi Yamazaki
Shigeki Miwa

CORPORATE INFORMATION (As of November 30, 2009)
Foundation:
Capital:Number of Employees:
Major Products:
Machining
RobotsComponents
Materials & Heat Treatment
Major Domestic Offices and Plants:
Toyama Head Office
Tokyo Head Office

December 21, 1928
¥16 billion
5,351 (Consolidated) 2,556 (Non-consolidated)
Cutting Tools, Forming Tools, Cutting Saws, Machine Tools, Precision Machinery, Machining Systems
Robot Systems, Electronic Equipment
Bearings, Hydraulic Equipment, Automotive Parts, Seismic Isolation Systems, Filtration Systems
Special Steels, Coating, Industrial Furnaces
1-1-1, Fujikoshi-Honmachi, Toyama 930-8511, Japan
Shiodome Sumitomo Bldg. 17F, 1-9-2, Higashi-Shinbashi, Minato-ku, Tokyo 105-0021, Japan

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

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
Nachi Osaka Bldg., 2-3-7, Honjo-nishi, Higashi-Osaka 578-8522, Japan+81-3-5568-5280+81-52-769-6811+81-6-6748-2510

Toyama Plant

1-1-1, Fujikoshi-Honmachi, Toyama 930-8511, Japan[Cutting Tools / Machine Tools / Bearings / Robots]
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 /Precision Machinery / Coating / Industrial Furnaces]+81-76-423-5111+81-76-438-4411+81-76-438-8970+81-76-471-2320

Higashi-Toyama Plant
Namerikawa Plant

INVESTOR INFORMATION
Securities Code:Fiscal Year:
Ordinary General Meeting of
Shareholders:

6474
From Dec. 1 of each year to Nov. 30 of
the following year
February

Record Date:

Voting rights at General
Meeting of Shareholders
Year-end dividendInterim dividend

Unit:

1,000 shares

Shareholders’ Register
Custodian:

3-33-1, Shiba, Minato-ku, Tokyo, JapanThe Chuo Mitsui Trust and Banking Company, Ltd.

Mailing Address:

2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, JapanThe Chuo Mitsui Trust and Banking Company, Ltd.
Stock Transfer Agency Department
Toll-free : 0120-78-2031 (Toll-free in Japan)
Transactions are handled by Chuo Mitsui Trust andBanking Co., Ltd. and its branches nationwide andthe head office of Japan Securities Agents, Ltd.
and its branches nationwide.

(Contact via phone):

URL:

November 30
November 30
May 31

http://www.nachi-fujikoshi.co.jp/eng/

Notification of Change of Address and Requests forPurchase of Additional Shares or Buyback of Holdings
Less Than the Minimum Trading Unit
Please notify the securities company with which you haveyour account. For those shareholders who do not have an
account with a securities company and who have set up a
special account instead, please notify Chuo Mitsui Trustand Banking Co., Ltd., which is the account administrator
for special accounts.

Payment of Accrued Dividends
Please contact Chuo Mitsui Trust and Banking Co., Ltd.,
which administers the shareholders registry.

Dividend Calculation Sheet
The Dividend Calculation Sheet that is sent with payment ofdividends also serves as the Notification of Payment as
stipulated by the regulations of the Act on Special Measures
Concerning Taxation. This form may be used as reference
documentation when filing tax returns. For the Notification ofPayment form for shareholders who receive dividends
through the proportional distribution based on number ofshares, please contact the transacting securities company.

Wonders from NACHI, Art in NACHI
Exciting Technology—that’s Art.

Cover photography features industrial robots at work in manufacturing facilities.
The seven-jointed robot is truly like a human arm.
Using the hands (fingers) and sensors (eyes), robots are capable of a range of movements
including carrying, assembling, and welding.
In the pursuit of smooth and complex movement, robots are approaching human form and function.
NACHI-FUJIKOSHI endeavors to create art in the world of manufacturing.