BUSINESS REPORT
2020
December 1, 2019 to November 30, 2020

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, 2019 to November 30, 2020.

Business Environment
Although there were some improvements in the environment
surrounding our group during this period, such as China swiftly
re suming its economic activitie s and the automotive andconstruction machinery sectors, the global economy including
Japan continued its severe slowdown due to the infection spread ofCOVID-19.

Business Progress and Results
Under these environments, the NACHI-FUJIKOSHI Group has been
making full use of its strength as a comprehensive machine
manufacturer with robotics business at its core, and also
encompassing cutting tools, machine tools, bearings, hydraulicequipment, and special steel businesses, to introduce new products
matching user needs to the market, thereby securing both orders
and sales by developing sales adapted to the COVID-19 crisis. We
also built up and rationalized our manufacturing systems responding
to sudden changes in demand toward improvement of profitability.
However, the impacts of COVID-19 caused a major slump indemand in the automotive and industrial machinery sectors, both inJapan and abroad. This resulted in consolidated net sales in thefiscal year remaining at 201 billion yen, down 19.3% year-on-year.
This includes domestic sales of 104.4 billion yen (down 22.6% YoY)
and overseas sales of 96.5 billion yen (down 15.3% YoY). In termsof profitability, mainly due to a decrease in capacity utilization
caused by the decline in sales, this term’ s operating income,ordinar y income, and net income at tributable to the parentcompany shareholders were respectively 6.8 billion yen (down48.7% YoY), 5.5 billion yen (down 55.0% YoY), 2.4 billion yen (down
70.2% YoY).

Dividends
With regard to the fiscal year-end dividend, taking into account theprofit and the future business development, unfortunately it has
been decided that the dividend will be 50 yen per share.

Future Initiatives
The outlook for the business environment is unclear due to thespread of COVID-19 and the ongoing trade issues between the USand China. At the present time, it is difficult to forecast demand
trends in the automotive, industrial machinery, construction
machinery, and retail sectors. In addition, our group’ s businessenvironment is changing drastically, including the accelerated
initiatives for the adoption of EVs in the automotive field, which isour comp any ’ s main are a of demand, tow ard re alizing acarbon-free society, and progress with factory automation and theuse of IoT in manufacturing.
The NACHI-FUJIKOSHI Group will strengthen the constitution of
all aspects of sales and service, manufacturing and procurement,
and research and development under the business operations
slogan of “Le ading in manufacturing innovations throughtechnologies at the highest global standards, with its core businessin robotics.” We will also leverage our unique strengths in various
businesses, technology, and manufacturing knowhow in robotics
and other areas as a comprehensive machine manufacturer tocreate new business opportunities, along with striving to further
improve our performance by grasping trends and needs in themarket, expanding sales of products and services that link andintegrate technologies in all divisions, and improving productivity.
We would like to express our sincerest appreciation to all of ourshareholders and other stakeholders for their continued support.
February 2021

Chairman andRepresentative Director

President andRepresentative Director

RESULTS OF OPERATIONS (Consolidated)
Composition of Sales
Business Segment

MarketSpecial Steels/
Industrial Furnaces Cutting Tools
and Others
14%
6%
Machine Tools
7%
HydraulicEquipment¥201
28%
BillionRobots13%

RegionEnergy/Infrastructure
24%Asia
31%¥201
BillionEurope5%
Americas12%

Machinery/Retail26%

Bearings
32%

Trend in Business Results
Net Sales (billion yen)
252.2

Japan52%¥201
BillionAutomotive
50%

Net Income Attributable toOwners of the Parent (billion yen)

Operating Income (billion yen)

249.0

201.0

205.0
8.9

15.3

8.2

13.3

8.0

4.0

6.8
2.4

FY

2018

2019

2020

2021
(forecast)

FY

2018

2019

2020

2021
(forecast)

FY

2018

2019

2020

2021
(forecast)TOPICS
1.Toward expansion of orders received
As a comprehensive machine manufacturer with a variety of businesses including robotics, we will accelerate thedevelopment of new products by grasping market trends and needs as well as linking and combining various
technologies, and expand sales of products for EVs and industrial machinery worldwide.

<Major turning point for industrial structures>
Decarbonization
FA and digitalization<Market changes>
Automobiles: spread of EVs
Industrial machinery: development of streamlining, etc.

Leading in manufacturing innovations through technologies at the highest global standards, with its core business in robotics
Robot technologies
Elemental andindustrial technologies

Processing technologies[Global sales expansion of products for EVs and industrial machinery based on automobiles]
2.Sales expansion of products for EVs and eco-friendly cars
We will respond to the accelerating trend toward EVs by linking and integrating technologies in all divisions cultivated forautomobiles.

Vane pump

ActuatorThin-walled deep grooveball bearing for electric units

3.Expansion of sales of products for the industrial machinery sector
We will expand sales of products that contribute to customers’ productivity improvement and energy savings, such as
hydraulic equipment used in battery manufactuaring facilities for which demand is expected to grow, carbide roundtools, and a various lineup of small robots.

POWER MEISTER
energy-saving hydraulic system
Carbide endmill
AquaREVO Mills

The system for assemble electronic substrate

Compact robots MZ Series

Holding online seminars
In conjunction with our participation in the Japan International
Machine Tool Fair (JIMTOF), which was held online, we launcheda special website called “NACHI TECHNOLOGY PARK.”On the site, in addition to introducing our products, we held
online seminars using videos to promote the appeal of our products to customers in various industries and areas.

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

November 30, 2019 November 30, 2020

November 30, 2019 November 30, 2020

Item(for your reference)

ASSETS:(for your reference)

LIABILITIES:
141,930

137,960

Cash and cash equivalents

21,512

40,118Notes and accounts receivable

56,77745,938Inventories

59,301

48,151

Current assets

4,339

Other

3,752

Current liabilities

104,879

92,926

Notes and accounts payable

51,90633,509

Short-term loans

35,572

48,272

Other

17,40011,144Long-term liabilities71,074

75,874Long-term debt

50,81054,852

Allowance for retirement benefits

10,501

10,148

Other

9,762

10,873

175,953

168,800

Fixed assets

158,820

155,099

Property, plant and equipment

116,838

113,085

Buildings and structures

30,466

29,603

Shareholders’ equity

113,354

113,302

Machinery and equipment

68,08765,650Common stock

16,074

16,074

Additional paid-in capital

11,252

11,243

Total liabilities

NET ASSETS:

Land

9,615

9,473

Retained earnings

88,297

88,123

Other

8,668

8,358

Treasury stock‒ 2,269‒ 2,139

Intangible fixed assets

3,1442,828

Revaluations and translation adjustments

4,878

3,591

Investments and advances

38,83739,185

Non-controlling interests

6,563

7,366

Total net assets

124,797

124,259

Total assets

300,751

293,060

Total liabilities and net assets

300,751

293,060

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, 2019 November 30, 2020

Consolidated Statements of Cash Flows
Item(million yen)

Year EndedYear Ended
November 30, 2019 November 30, 2020

249,077

201,055

Cash flows from operating activities

24,226

19,25813,3486,850

Cash flows from investing activities‒ 13,996

5,508

930

‒ 1,706

13,858437

677

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

‒ 23,792

12,241‒ 1,620

18,77821,77820,157

20,15738,936

11,813

4,861

8,245

2,458

SHAREHOLDER INFORMATION (As of November 30, 2020)24,919,343
Number of Shares Issued:
18,366
Number of Shareholders:Major Shareholders (top five):

Note: Shareholding ratios are calculated after
subtracting treasury stock (94 thousand shares).

Breakdown of Shareholders

Individuals
4,175 thousand(16.8%)

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)

2,357
1,475
1,188
1,108
1,086

StockOwnershipAssociations
4,671 thousand(18.8%)

ForeignCorporations
2,612 thousand(10.5%)

9.49
5.94
4.79
4.46
4.38

FinancialInstitutions
9,270 thousand(37.4%)

Other JapaneseCorporations
3,867 thousand(15.6%)

Securities Companies
225 thousand(0.9%)DIRECTORS AND AUDITORS (As of February 19, 2021)
Chairman and
Representative Director

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 KitayamaDirector

Director

Director

Director

Tetsuo Koshihama
Shuichi Hirose
Director

Kazuyoshi Ichikawa

Tsutomu Kurosawa

Standing Corporate Auditor

Masayuki Kobayashi

Standing Corporate Auditor

Junichi Kodama*

Director

Yo Okabe*

Director

Masashi Hori

Standing Corporate Auditor

Masakazu Yamazaki*
Corporate Auditor

Yuichi Sawasaki

Tokuhiro Matsunaga**Outside director or outside corporate auditor.

CORPORATE INFORMATION (As of November 30, 2020)
Foundation:
Capital:Number of Employees:
Major Products:
Machinery and tools business
Components business
Other business
Major Domestic Offices and Plants:
Head OfficeToyama PlantEastern Japan Main BranchCentral Japan Main BranchWestern Japan Main Branch
Higashi-Toyama Plant
Namerikawa Plant
Major Overseas Offices and Plants:

December 21, 1928
¥16 billion
3,307 (Group employees 7,242)
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, Japan1-1-1, 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)

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 PhotographElectric actuator developed based on solenoid
technology fostered by our company. We are
expanding sales in diverse areas such as EVs,
eco-friendly cars, and automated driving.