Financial Results for the Fiscal Year
Ended November 30, 2013
Mid-term Business Plan for 2016
January 16, 2014

Contents1䠊Overview of FY2013 andMid-term Business Plan for 2016

2–8

2䠊 FY2013 Full-Year Results
FY2014 Full-Year Forecasts

9 – 22

FY2013 Results & FY2014 Forecasts

Overview(Billions of yen)

FY2013Results

FY2012
Results

175.6

172.2

Net Sales

FY2014
Forecasts
205.0(profit ratio on net sales)

Operating Income(6.2%)

10.6(7.0%)

12.3(8.3%)

17.0

Ordinary Income(5.3%)

9.1(6.7%)

11.6(7.8%)

16.0

4.5

6.7

10.06.0 yen

6.0 yen

8.0 yen

Net Income
Dividend per shareFinancial Results and Forecasts

Overview
OperatingIncome(Billions of yen) 㻞㻜Net Sales㻞㻡㻜㻺㼑㼠㻌㻿㼍㼘㼑㼟㻻㼜㼑㼞㼍㼠㼕㼚㼓㻌㻵㼚㼏㼛㼙㼑
㻞㻜㻜

㻝㻢㻚㻣
㻝㻡㻚㻡

㻝㻡㻚㻡

㻝㻠㻚㻢

㻝㻟㻚㻞

㻝㻜㻚㻢

㻝㻜㻚㻜
㻝㻡㻜

㻝㻜㻜

㻝㻣㻚㻜

204.8

㻣㻚㻢

193.6
176.0

㻝㻜

175.6

㻡

107.5

158.8
㻡㻜

205.0

166.0 172.2
134.8

186.7

㻟㻚㻠 㻟㻚㻤147.2

㻤㻚㻞

㻝㻡

㻝㻞㻚㻟

146.6
133.9

㻜

㻙㻟㻚㻞
㻜
FY 㻜㻝䕧㻡

㻜㻞

㻜㻟

㻜㻠

㻜㻡

㻜㻢

㻜㻣

㻜㻤

㻜㻥

㻝㻜

㻝㻝

㻝㻞

㻝㻟

㻝㻠


To Accomplish Our Long-term Vision

Overview

䕿 Mid-term Business Plan 2016
䞉Net Sales
250 billions yen
䞉Operating Income 25 billions yen
Operating Profit Margin 10%
䞉Net Income
16 billions yen

NetSalesFY
%LOOLRQV\HQ







Mid-term Business Plan 2016Overview

Long-term Corporate Vision 2020
“Accepting the challenges to grow the enterprisethat achieve aspiration of our customers,associates and society.”
䞉Net Sales
400 billion yen
䞉Operating Profit
60 billion yen (15%)
䞉Rate of Oversea Sales 60%
Mid-term Policy
1. Deep cultivation of growth markets
2. Creation of new products and new business
3. Enhance and train associatesDeep cultivation of growth markets

Overview

䕿 NACHI (JIANGSU) INDUSTRIESCore base of China
Robots, Hydraulic equipments, Car
control valves, and Cutting Tools
䕿 NACHI KG Technology India
Plant of Bearings for industrial
machinery and motor vehicles
䕿 Enhance production bases
in growth markets
ASEAN

USAChina

Creation of new products and new business

Overview

The world’s fastest compact robot
䞉Expand sales in the world
Energy saving Compact
Hydraulic Unit
䞉Acquire Increasing demandin Emerging markets

Carbide drill
䞉Expand Sizes andAdd Series

Hydraulic Equipments forConstruction Machine䞉Expand lineupTarget of Mid-term Business Plan

Overview(Billions of yen)

FY2013Result (A)FY2016
Target (B)175.6

Net Sales

Increase/Decrease(Proportion)(B) – (A)250.0

(x1.4)+743(profit ratio on net sales)

Operating Income(7.0%)

12.3(10.0%)

25.0(x2.0)+12.6

Ordinary Income(6.7%)

11.6(9.6%)

24.0(x2.1)+12.3(x2.4)+9.2

Net Income

6.7

16.0

Capacity investment(sum of 3year)

36.4

50.0

+13.5

Number of employees

6,072

6,500+428

Stockholder's equity ratio

37%

43%

+5 points

92 / 121 yen

100 / 135 yen+8 / +14 yen

Exchange rate US$/€

Consolidated Financial Highlights of FY2013

FY2013(Billions of yen)

FY2012(A)
172.2

Net Sales

Increase/Decrease(Proportion)(B) – (A)FY2013(B)
175.6(䠇2.0%)+3.4(profit ratio on net sales)

Operating Income(6.2%)

10.6(7.0%)

12.3(+16.0%)+1.6

Ordinary Income(5.3%)

9.1(6.7%)

11.6(+28.4%)+2.5

Extraordinary
income

0.0

0.4

+0.3

Extraordinary
loss

0.3

1.2

+0.8

4.5

6.7

Net Income(+46.3%)+2.1
FY2013

Quarterly Financial Results and ForecastOperating
Income(Billions of yen)㻢㻠㻣㻚㻟㻠㻡㻚㻡Net Sales㻡㻜㻺㼑㼠㻌㻿㼍㼘㼑㼟㻻㼜㼑㼞㼍㼠㼕㼚㼓㻌㻼㼞㼛㼒㼕㼠㻠㻝㻚㻝㻠㻡㻚㻡㻠㻟㻚㻥㻠㻝㻚㻢㻠㻟㻚㻥㻠㻟㻚㻞㻠㻝㻚㻟㻟㻥㻚㻡㻟㻣㻚㻤㻠㻜䕰 㻠㻟㻚㻞㻟㻚㻥㻠㻚㻝㻟㻚㻥㻠㻟㻚㻡㻟㻚㻟㻞㻚㻤㻟㻚㻝㻞㻚㻡㻟㻜㻞㻚㻤㻞㻚㻞㻞㻚㻟㻠㻽㻝㻟㻛㻝㻽㻞㻚㻥㻞䡚䡚0㻞㻜㻜㻝㻝㻛㻝㻽㻞㻽㻟㻽㻠㻽㻝㻞㻛㻝㻽㻞㻽㻟㻽㻞㻽㻟㻽㻠㻽

Consolidated Financial Data

FY2013(Billions of yen)

FY2012(A)
Total Assets

FY2013(B)

187.1

Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt
(Net D/E ratio)

Increase/Decrease(B) – (A)

207.9

+20.7

䠄33.1%䠅

61.9

䠄37.1%䠅

77.1

+15.2

䠄0.7X䠅

60.7䠄0.5X䠅

55.1

-5.6

Capacity investment

13.3

12.6

-0.7

Depreciation andamortization

10.1

10.3

+0.2

Number of employees

5,845

6,072

+227

92 yen
121 yen

14 yen depreciation
against USD
19 yen depreciation
against Euro

Exchange rate (US$)(Euro€)

78yen
102 yen

Sales by Region and Market Segment(Billions of yen)

Sales by region
172.2
Europe 7.9

䠍䠑䠌Sales by market

175.6
Europe 8.9

America 17.6

America 20.7

Asia 36.3

Asia 40.3

Japan 110.2

Japan 105.7+12.0%+17.5%+10.8%

䠍䠌䠌䠑䠌䠌

FY2012FY2013

FY2013172.2

175.6Energy andinfrastructure
31.0

Energy andinfrastructure
32.6

Industrial
machinery /Market sales
54.7

Industrial
machinery /Market sales
50.4

Automobiles
86.5

Automobiles
92.7

FY2012FY2013

+5.2%

-7.9%

-4.1%
+7.2%

FY2013

Sales and Operating Income by Business Segments(Billions of yen)

FY2012
䠄A䠅

Increase / Decrease

FY2013
䠄B䠅(%)(B) - (A)Machinery & Tools
Net Sales
Operating Income

62.3
䠄8.8%䠅

5.5

䠄8.7%䠅

63.8(+2.3%)+1.4

5.5

䠄+0.9%䠅

+0.0

98.2

(+2.8%)+2.6

5.4

䠄+59.5%䠅

+2.013.6(-4.8%)-0.6

1.2

䠄-23.4%䠅

-0.3

175.6

(+2.0%)

+3.4

12.3

䠄+16.0%䠅

+1.6

Components
95.5

Net Sales
Operating Income

䠄3.6%䠅

3.4

䠄5.6%䠅

Materials & Others
14.3

Net Sales
Operating Income

䠄11.5%䠅

Total Net Sales
Total Operating Income

1.6䠄9.3%䠅

172.2
䠄6.2%䠅

10.6

䠄7.0%䠅

Factors for Change in Operating Income

FY2013(Billions of yen)

(Profit up 7.5 billion yen)Effect of Sales
and Outputs
reduction; +1.0

(Profit down 5.8 billion yen)Price down; -2.3

Effect ofexchange rate;+3.7Raw materials up; -1.2

Cost reductions;+2.8

Increase in fixed costand SGA; -2.3



+1.7
Billion yen㻝㻞㻚㻟㻝㻜㻚㻢㻲㼅㻞㻜㻝㻞㻗㻌㼒㼍㼏㼠㼛㼞㻙㻌㼒㼍㼏㼠㼛㼞㻲㼅㻞㻜㻝㻟Consolidated Financial Highlights of FY2014 PlanFY2014(Billions of yen)

FY2013(A)

FY2014
Forecasts (B)175.6

Net Sales

Increase/Decrease(Proportion)(B) – (A)

205.0(+16.7%)+29.3(profit ratio on net sales)

Operating Income(7.0%)

12.3(8.3%)

17.0(+37.8%)+4.6

Ordinary Income(6.7%)

11.6(7.8%)

16.0(+36.8%)+4.3

Extraordinaryincome

0.40.0-0.4

Extraordinaryloss

1.2

0.0

-1.2

6.7

10.0

Net Income(+49.1%)

+3.2


Consolidated Financial Data

FY2014(Billions of yen)

FY2013(A)
Total Assets

FY2014
Forecast (B)Increase/Decrease(B) – (A)

223.0

+15.0

207.9

Stockholder's equity(stockholder's equity ratio)

Interest-bearing debt
(Net D/E ratio)䠄37.1%䠅

77.1

䠄37.7%䠅

84.0+6.8

䠄0.5X䠅

55.1

䠄0.4X䠅

56.0+0.8

Capacity investment

12.6

15.0+2.3

Depreciation andamortization

10.3

11.0+0.6

Number of employees

6,072

6,100+28

Exchange rate (US$)(Euro€)

92 yen
121 yen

100 yen
135 yen

8 yen depreciation
against USD
14 yen depreciation
against Euro

Sales by Region and Market Segment(Billions of yen)

Sales by region

Sales by market

205.0

䠎䠌䠌

Europe 10.5

175.6

205.0
+17.7%

America 29.0 +40.1%

Europe 8.9

䠍䠑䠌America 20.7
Asia 53.5+32.6%

䠍䠌䠌Japan 112.0

Energy andinfrastructure
32.6+5.9%

Automobiles
92.7

䠑䠌

䠌

175.6

Industrial
machinery /Market sales
50.4

Asia 40.3

Japan 105.7

FY2013

FY2014
Forecasts

FY2014FY2013

Energy andinfrastructure +22.7%
40.0Industrial
machinery /Market sales
58.0+15.1%

Automobiles
107.0+15.4%FY2014
Forecasts

FY2014

Sales and Operating Income by Business Segments(Billions of yen)
Increase / Decrease

FY2014
Forecasts䠄B䠅

FY2013
䠄A䠅(%)(B)䠉(A)

Machinery & Tools
Net Sales
Operating Income

63.8
䠄8.7%䠅

5.5

䠄10.0%䠅

69.0(+8.1%)+5.1

6.9

䠄+24.1%䠅

+1.3

120.0

(+22.2%䠅

+21.7

8.6

䠄+57.0%䠅

+3.1

16.0

(+17.2%)

+2.3

1.5

䠄+18.5%䠅

+0.2

205.0(+16.7%)

+29.3

17.0

䠄+37.8%䠅

+4.6

Components
Net Sales
Operating Income

98.2
䠄5.6%䠅

5.4

䠄7.2%䠅

Materials & Others
Net Sales
Operating Income

13.6
䠄9.3%䠅

䠄9.4%䠅

175.6

Total Net Sales
Total Operating Income

1.2

䠄7.0%䠅

12.3

䠄8.3%䠅



Factors for Change in Operating Income

FY2014(Billions of yen)

(Profit up 15.5 billion yen)

3228

(Profit down 11.0 billion yen)

Effect of Sales
and Outputs
reduction; +10.5

Other; -5.0
Price down; -3.0

24
20
16

Effect ofexchange rate;+2.0

Raw materials up; -3.0

Cost reductions;+3.0

1217.08+4.6
Billion yen

12.340㻲㼅㻞㻜㻝㻟㻗㻌㼒㼍㼏㼠㼛㼞㻙㻌㼒㼍㼏㼠㼛㼞

㻲㼅㻞㻜㻝㻠

To Accomplish Our Long-term Vision

FY2014

䕿 Mid-term Business Plan 2016
䞉Net Sales
250 billions yen
䞉Operating Income 25 billions yen
Profit rate on net sales 10%
䞉Net Income16 billions yen

250.0

Net
Sales

400.0
Billio
nsyen

205.0

204.8

172.2

175.6

FY 







ᖺ


㼔䡐䡐䡌㻦㻛㻛㼣㼣㼣㻚㼚㼍㼏㼔㼕㻙㼒㼡㼖㼕㼗㼛㼟㼔㼕㻚㼏㼛㻚㼖㼜㻛

These materials describe our future earnings forecasts and business plans,
and are based on the assumption of an economic environment andbusiness policies that remain fixed as they are now. Therefore, please
note that actual earnings are subject to numerous factors, including
market fluctuations and currency fluctuations, which may result in adifferent earnings forecast.