INTERIM REPORT
2021
December 1, 2020 to May 31, 2021

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, 2020 to May 31, 2021.

Business Environment

The operating environment for the group during the interim period
has been on a gradual recovery trend in general, reflecting the
expansion of the Chinese economy and the recovery in advanced
economies. Nevertheless, the outlook remains uncertain due toconcerns over the re-expansion of COVID-19, the global shortage ofsemiconductors, and the prolonged U.S.-China Conflict.

Business Progress and Results

Under the circumstances, the NACHI-FUJIKOSHI Group has been
making full use of its strength as a comprehensive machinery
manufacturer with various businesses encompassing robotics,
cutting tools, machine tools, bearings, hydraulic equipment, andspecial steel businesses to realize the expansion of orders and sales
by developing new products and offering technical proposals that
contribute to users’ manufacturing. We have also been working on
the reconstruction and streamlining of our flexible production
system to fluctuations in demand, aiming to improve profitability.
During the interim period, despite the equipment-related orders
remaining at a low level, consolidated net sales in the interim
reached 112.0 billion yen, increase 8.0% year-on-year, due to therecovery in demand primarily in the automotive and construction
machinery sectors. This includes domestic sales of 57.3 billion yen(increase 1.7% YoY) and overseas sales of 54.6 billion yen (increase
15.4% YoY). In terms of profitability, we have achieved overall cost
reductions through measures implemented since last year, including
improved productivity from streamlined operations, in-sourcing of
manufacturing, and reduced selling and administrative expenses
from improved operational efficiency, while also improving capacity
utilization through increased sales and manufacturing. As a result,
this term’s operating income, ordinary income, and quarterly net
income attributable to the parent company shareholders were 6.4
billion yen (2.4 times YoY), 6.5 billion yen (4 times YoY), and 4.4
billion yen (10 times YoY) respectively.
We wish to defer the payment of interim dividends for this interim
period.

Future Initiatives

The outlook for the business environment remains unclear due tothe global shortage of semiconductors, the re-expansion of
COVID-19, and other factors, while demand in the automotive,
industrial machinery, construction machinery, and commercial
sectors are all on a recovery trend. In addition, our group’ sbusiness environment is changing drastically, including theacceleration of initiatives for the adoption of EVs toward realizing adecarbonized societ y in the automotive field, which is ourcompany’ s main area of business, and progress in factory
automation and the digitization of manufacturing.
The NACHI-FUJIKOSHI Group will leverage its unique strengths
as a comprehensive machinery manufacturer that possesses
diverse business, technological, and manufacturing knowhow,
including those related to robotics, and will create new business
opportunities. While maintaining the automotive sector as thefoundation of our business, we will also carry out structural reforms
in 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, in order to further
improve our business quality to realize the development andexpansion of the industrial machinery sector, which has anextensive base. In addition, we will strive to further enhance our
performance by not overlooking market movements and changes,
responding to them flexibly, and promoting efforts to further
improve productivity, such as cost reduction, streamlining, andautomation.
We would like to express our sincerest appreciation to all of ourshareholders and other stakeholders for their continued support.
August 2021

Chairman and
Representative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated Operating Result for Six Months Ended May 31, 2021)
Composition of Sales
Business Segment

MarketSpecial Steels/
Industrial Furnaces
Cutting Tools
and Others
13%
5%
Machine Tools
7%
HydraulicEquipment¥112.030%
RobotsBillion
12%

RegionEnergy/Infrastructure
27%

Asia
32%

¥112.0Billion¥112.0BillionAutomotive
50%

Europe5%
Americas12%

Machinery/
Retail23%

Bearings
33%

Japan
51%

Trend in Business Results
Net Sales (billion yen)
252.2

■Interim■Full-year

249.0

Operating Income (billion yen)■Interim■Full-year

225.0（forecast)

201.0

15.3
124.6

127.1
103.7

13.5

（forecast)

13.3

112.0

8.1

7.4

6.8

6.4

2.6

FY

2014
2018

2015
2019

2016
2020

2017
2021

FY

2018

2019

2020

2021

TOPICS
1.Further Enhancing Products to Meet Market and Customer Needs
Expansions of Industrial Machinery Products
We will contribute to improving customer productivity by expanding the lineup of carbide round tools and taps for which
demand is expected to grow, and increasing the number of products for the industrial machinery sector, such as small
robots for various uses including the MZ series and SCARA robots.

Carbide round tools
AquaREVO series

SCARA robot
EC06

Ball screw support bearings
for industrial machinery

Expansion of Environmentally Friendly Products
Amid growing calls for decarbonization and reduced energy consumption to prevent from global warming, we will expand our
lineup of products that meet the environmental conservation needs of our customers.

Energy saving solenoid valve for industrial machinery(Approximately 25% reduction in power
consumption compared to conventional products)

Actuator(Compatible with EVs and eco-friendly cars)

Thin-walled deep groove ball bearing
for electric units(Compatible with EVs and eco-friendly cars)

2.Enhancing Manufacturing System
Consolidation of standard radial bearing manufacturing
We are establishing a new factory in Thailand into which the manufacturing of radial bearings will be consolidated in order toincrease our competitiveness through integrated local manufacturing and automation. Meanwhile, Toyama Plant will continue to
produce high value-added bearings mainly to meet the needs of our customers.
Thailand
Bangkok
Rayong

New factory in Thailand (scheduled to start operation in spring 2022)●Sales company●Manufacturing company

Improvement of manufacturing efficiency
We will build a manufacturing system that is capable of flexibly responding to fluctuations in demand by introducing unmanned
production lines and automated assembly processes. In addition, we will also revamp our core information system and promote
operational efficiency and global collaboration so that we can respond to our customer needs in a timely manner.

Production line for automotive hydraulic equipment(Utilizing our robots)

Hydraulic motor factory(Automation of the assembly process ofhydraulic equipment for construction machinery)Hydraulic equipment for
construction machinery

3.Implementation of Organizational Reform
As part of our structural reforms, we abolished the branch manager system in this March. We implemented organizational reforms
to enhance our system and ensure all divisions operate with a focus on customers, taking unified sales and product strategies domestically and abroad under the direction of the General Managers of the relevant divisions.

Main changes to the company organization

・Newly established the Strategy Headquarters for each business type at their respective divisions to formulate and promote domestic
and overseas sales strategies. At the same time, sales units in each domestic area have been incorporated under the direct controlof the General Managers of the relevant divisions.
・Reorganized the technology and development department in each division into groups for each core product or element tostrengthen product and technological capabilities.
・Newly established the Sales Headquarters at the Head Office to manage and guide the strategies and tactics at the Strategy
Headquarters.
4

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

November 30, 2020
(for your reference)

May 31, 2021

ASSETS:

Item

November 30, 2020
(for your reference)

May 31, 2021

LIABILITIES:Current assets
Cash and cash equivalents

137,960

148,158

40,11839,941

Notes and accounts receivable

45,93854,298Inventories

48,15149,879

Other

3,752

4,039

Fixed assets

155,099

157,177

Property, plant and equipment

113,085

112,687

Buildings and structures

29,60330,040Machinery and equipment

65,65065,893

Other

17,831

16,752Intangible fixed assets

2,828

2,716

Investments and advances

39,185

41,773

Total assets

293,060

305,335

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(million yen)

Six Months Ended
May 31, 2020

Six Months Ended
May 31, 2021

Current liabilities

92,92696,898Notes and accounts payable

33,50943,464

Short-term loans

48,272

31,037

Other

11,144

22,396Long-term liabilities

75,874

77,675Long-term debt

54,85256,098

Allowance for retirement benefits

10,148

10,187

Other

10,873

11,388

Total liabilities

168,800

174,574

Shareholders’ equity

113,302113,567

Common stock

16,074

16,074

Additional paid-in capital

11,243

11,297NET ASSETS:

Retained earnings

88,12391,356

Treasury stock– 2,139– 5,161

Revaluations and translation adjustments

3,591

9,242

Non-controlling interests

7,366

7,951

Total net assets

124,259

130,761

Total liabilities and net assets

293,060

305,335

Consolidated Statements of Cash Flows
Item

103,792

112,047

Cash flows from operating activities

2,636

6,435

Cash flows from investing activities

1,606
13
321
1,298

6,505
347
111
6,741

445

4,474

Cash flows from financing activities
Net decrease in cash
and cash equivalents
Cash and cash equivalents
at beginning of period
Cash and cash equivalents
at end of period(million yen)

Six Months Ended
May 31, 2020

Six Months Ended
May 31, 2021

6,678
– 7,138

20,698– 5,564

21,493– 16,500

20,416– 368

20,15738,936

40,57438,568

SHAREHOLDER INFORMATION (As of May 31, 2021)
24,919,343
Number of Shares Issued:
17,918
Number of Shareholders:Major Shareholders (top five):

Note: Shareholding ratios are calculated after
subtracting treasury stock (81 thousand shares).

Breakdown of Shareholders
Foreign
Corporations
3,262 thousand(13.5%)
Individuals
4,108 thousand(17.1%)

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

Shareholders

NACHI WANEI Stockholding
Employees’ Stock Ownership PlanMUFG Bank, Ltd.
The Master Trust Bank of Japan, Ltd. (trust accounts)
Custody Bank of Japan, Ltd. (trust accounts)

2,360
1,443
1,188
1,182
963

9.79
5.99
4.93
4.90
4.00

Other JapaneseCorporations
3,014 thousand(12.5%)

Executive
Vice President

Hiroo Honma

Shigeru Togashi

President andRepresentative Director

Managing Director

Jun Sakamoto
Executive
Vice President

Hidenori Hayashi

Director

Shinichi Urata
Director

Hideaki Hara
Director

Noritsugu Sasaki
Director

Akira Kunisaki

Tetsu Furusawa

Director

Kyo Kitayama

Director

Tetsuo Koshihama
Director

Shuichi Hirose
Director

Kazuyoshi Ichikawa

Financial
Institutions
8,970 thousand(37.2%)
Securities Companies
92 thousand(0.4%)DIRECTORS AND AUDITORS (As of August 2021)
Chairman and
Representative Director

Stock
Ownership
Associations
4,659 thousand(19.3%)

Director

Tsutomu Kurosawa

Director

Junichi Kodama*
Director

You Okabe*

DirectorStanding Corporate Auditor

Masayuki Kobayashi

Standing Corporate Auditor

Masashi Hori

Standing Corporate Auditor

Masakazu Yamazaki*
Corporate Auditor

Yuichi Sawasaki

Tokuhiro Matsunaga**Outside director or outside corporate auditor.

CORPORATE INFORMATION (As of May 31, 2021)
Foundation:
Capital:Number of Employees:
Major Products:
Machinery and tools business
Components business
Other business
Major Domestic Offices and Plants:
Head OfficeToyama 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
3,376 (Group employees 7,282)
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 (SHANGHAI) CO., LTD. (China)
NACHI (JIANGSU) INDUSTRIES CO., LTD. (China) NACHI TECHNOLOGY（THAILAND）
CO., LTD. (Thailand)
NACHI SINGAPORE PTE. LTD. (Singapore)

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 a flange mounted bearing with a special
structure for use in automobile drivetrain units.
It is a highly reliable high-performance part that
contributes to the optimal design of automobiles.