January, 22. 2013㪥㪘㪚㪟㪠㪄㪝㪬㪡㪠㪢㪦㪪㪟㪠㩷㪚㪦㪩㪧㪅Contents

䋱䋮 General overview of businessperformance䋲䋮 Account settlement for fiscal
2012 and Outline of Plan forfiscal 2013䋲䌾 䋷䋸䌾䋲䋴

General overview ofResults for fiscal 2012 & Forecast for fiscal 2013 business performance(Billion yen)

Fiscal 2011
(Rate of increase)(+23.2%)Net Sales(profit ratio on net sales)

Fiscal 2013
Forecast

Fiscal 2012(+3.8%)(+1.6%)

166.0

172.2

175.0

Operating Income(8.8%)

14.6 (6.2%)

10.6(6.6%)

11.5

Ordinary Income(7.8%)

12.9

9.1(5.7%)

10.0

10.0

4.5

6.0

㪍㪅㪇㩷㫐㪼㫅㪍㪅㪇㩷㫐㪼㫅㪍㪅㪇㩷㫐㪼㫅Net Income
Dividend per share(䋵.䋳%)General overview ofbusiness performance

Historical Financial result and forecastSales㪉㪌㪇

Operating Income㪉㪇

Net Sales㪈㪍㪅㪎

Operating Income㪈㪌㪅㪌㪉㪇㪇㪈㪋㪅㪍㪈㪊㪅㪉㪈㪇㪅㪍 㪈㪈㪅㪌㪈㪇㪅㪇㪉㪇㪋㪅㪏㪈㪌㪇㪎㪅㪍㪈㪇㪇㪈㪌㪅㪌㪏㪅㪉㪈㪐㪊㪅㪍㪈㪍㪍㪅㪇㪈㪇㪎㪅㪌㪈㪎㪍㪅㪇㪈㪌㪏㪅㪏㪌㪇㪈㪇㪈㪎㪉㪅㪉㪈㪏㪍㪅㪎㪊㪅㪋 㪊㪅㪏㪈㪋㪎㪅㪉 㪈㪊㪊㪅㪐㪈㪎㪌㪅㪇㪈㪌㪌㪈㪊㪋㪅㪏㪈㪋㪍㪅㪍㪇䂦㪊㪅㪉㪇
FY 㩾㪇㪈(Billions of yen)

䂦㪌㩾㪇㪉

㩾㪇㪊

㩾㪇㪋

㩾㪇㪌

㩾㪇㪍

㩾㪇㪎

㩾㪇㪏

㩾㪇㪐

㩾㪈㪇

㩾㪈㪈

㩾㪈㪉

㩾㪈㪊

ForecastGeneral overview ofbusiness performanceLong Term Vision 㸢Year 2013 Policy

Fiscal 䋲䋰䋲䋰, Sales Amount 䋴䋰䋰 billion yen
䍀Challenge for a growth company䇮
Become a manufacturer which give dreams䇹
䋱䋮Aim for tough business structure䊶Improve productivity, decrease break-even point
䊶Promote Automation Skill-Less
䋲䋮Build business bases in the emerging countries
䊶Production enhance in China, Expand products
line-up
䊶Start Bearing production in India
䋳䋮Expand incoming order䊶Import New Product䊶Expand line-up of Hot-products

General overview ofbusiness performance

Business in Emerging Markets
Sales trend in emerging countries㪏㪇Central and South America
East Europe
India, Middle and Near East
ASEAN and Oceania

㪍㪇Foreign sales ratio

East Asia
China

㪋㪇

30.0(16%)32.0(17%)36.5(18%)47.1䋨28%䋩

-14% year
over year
40.7+12% year
over year
45.4

䋨26%䋩

䋨24%䋩

37.0(28%)

Aiming atbusinessexpansion inChinese,Indian,ASEAN, andTurkishmarket

25.1(23%)㪉㪇㪇
FY 㪇㪍(Billions of yen)㪇㪎㪇㪏㪇㪐㪈㪇

㪈㪈㪈㪉㪉㪇㪈㪊

㪅

General overview ofbusiness performance

Business in Emerging Markets

New China plant start production of Robotics (from Feb ’13)
䂾NACHI (JIANGSU) INDUSTRIES CO.,LTD
Products䋺Hydraulic equipment for construction/Industrial
machinery, Automotive, Precision Cutting Tools
䋫 Robots
䂾Develop Robots to adapt China Market
Techinical center 䋨R&D䇮Showroom䋩Expand the products, Lineup

General overview ofbusiness performanceSuper-high speed robot “SRA Series”
䊶Expand market share by Super-high speed
robot for spot welding
䊶Import to Industrial machinery market
Flat Drills䊶Solid Carbide Drills
䊶Expand Sizes, Series, andobtain Market Share

Hidraulic Equipments for Construction /Industrial Machinery
䊶Equipments for 8-ton construction Machine䊶Energy saving equipmentsConsolidated Financial Highlights

2012 Results(Billion yen)

Fiscal 2011
(A)

Fiscal 2012(B)

166.0

Net SalesYear over year(%)(B)-(A)

172.2(+3.8%)+6.2(profit ratio on net sales)

Operating Income(8.8%)

14.6(6.2%)

10.6(-27.3%)-4.0

Ordinary Income(7.8%)

12.9(5.3%)

9.1(-29.4%)-3.8

Extraordinary
income00-0Extraordinary
loss

0.7

0.3

-0.3

10.0

4.5

Net Income(-54.2%)-5.4
Consolidated Financial Data

2012 Results(Billion yen)

Fiscal 2011 (A)Fiscal 2012 (B)Year over year(B) – (A)

179.7

187.1

+7.3

Total Assets
Stockholder's equity(stockholder's equity ratio)䋨32.4%䋩

58.1

䋨33.1%䋩

61.9

+3.7

䋨0.7X䋩

55.7䋨0.7X)

60.7+5.0

Interest-bearing debt
(Net D/E ratio)

Capacity investment

10.1

13.3

+3.1

Depreciation andamortization

9.5

10.1

+0.6

Number of employees

5,645

5,845+200

Exchange rate (USD)

81 yen78 yen(Euro)112 yen

102 yen

3 yen appreciation
against USD
10 yen appreciation
against EURO

Sales by Region and Market segment
Sales by region
166.0
Europe 8.3

150

America 15.9

Sales by market

172.2
Europe 7.9-4.6%

America 17.6 +10.3%
Asia 36.3

Asia 39.7-8.5%

100Japan
101.9500Japan110.22012 Results

166.0Energy andinfrastructure

Fiscal 2011

Fiscal 2012

Energy andinfrastructure

28.5

31.0

Industrial
machinery /Marketsales
59.5

Industrial
machinery /Marketsales
54.7

+8.2%

Automobiles
78.0(Billions of yen)

172.2

Fiscal 2011

+8.8%

-8.1%

Automobiles+10.9%
86.5

Fiscal 2012

Sales by Business (Tools, Machinery & Robots)
CuttingTools

30

Machine Tools

2012 Results

RobotsUp 5.2%Up 26.4%
27.1
25.7

20

24.3
21.1

1019.2Up 5.0%

16.1

10.8
10.3

13.5 12.3
6.5

7.0

0
’09 ’10 ’11 2012’09 ’10 ’11 2012’09 ’10 ’11 2012

(Billions of yen)

Sales by Business (Components and Others)
Bearings

Hydraulicequipment2012 Results
Other

Down 0.9%6064.1 63.6
58.6

40Up 1.5%
45.1
31.9
31.4

2024.5

Down 4.4%

16.9
9.2 11.0

15.0 14.3

0’09 ’10 ’11 2012
(Billions of yen)

’09 ’10 ’11 2012’09 ’10 ’11 2012
Sales and Operating Income by business segments 2012 Results(Billion yen)

Fiscal 2011 (A)Fiscal 2012 (B)55.4

Year over year(%)(B)䋭(A)

62.3(12.6%)

6.9

5.5(22.6%)

1.0

95.5(-0.1%)-03.4(-56.6%)-4414.3(-4.4%)-61.6(-26.4%)-5166.0

172.2(3.8%)

6.2

14.6(6.2%) 10.6(-27.3%)-4.0

Machinery & Tools
Net Sales
Operating Income(8.1%)

4.4(8.9%)

Components
95.6

Net Sales
Operating Income(8.3%)

7.9(3.6%)

Materials & Others
Net Sales
Operating Income

15.0(15.0%)

Total Net Sales
Total OperatingIncome(8.8%)

2.2(11.5%)

Factors for Change in Operating Income(Profit up 4.1 billion yen)䋲䋰䋰䋱䋶䋰

Improved operating
capacity: +17
Cost reductions: +24

2012 Results(Profit down 8.1 billion yen)
Raw materials up -8
Price down -15
Effect of exchange rate -17
Fixed costs,sales overhead, etc: -41䋱䋲䋰

-4.0
billion yen䋸䋰

14.6

10.6
䋴䋰

䋰

Fiscal 2011
(Billions of yen)

Fiscal 2012

2013 Forecast

Outlook for Fiscal 2013

(Billion yen)

Fiscal 2012
(A)

Fiscal 2013
Forecast (B)172.2

Net SalesYear over year(%)(B)-(A)

175.0(+1.6%)+2.7(profit ratio on net sales)

Operating Income(6.2%)

10.6(6.6%)

11.5(+8.1%)+0.8

Ordinary Income(5.3%)

9.1(5.7%)

10.0(+9.8%)+0.8

Extraordinaryincome00-0.0

Extraordinaryloss

0.3

0-0.3

4.5

6.0

Net Income(+30.8%)

+1.4


Outlook for Consolidated Financial Data Fiscal 2013 2013 Forecast(Billion yen)

Fiscal 2012 (A) Fiscal 2013 (B)Total Assets

187.1

Year over year(B) – (A)

195.0

+7.8

Stockholder's equity(stockholder's equity ratio)䋨33.1%䋩

61.9

䋨34.5%䋩

67.2+5.3

䋨0.7X)

60.7

䋨0.6X)

66.5+5.7

Interest-bearing debt
(Net D/E ratio)

Capacity investment

13.3

10.0+3.3

Depreciation andamortization

10.1

10.3+0.1

Number of employees

5,845

5,850+5

Exchange rate (USD)

78 yen85 yen(Euro)102 yen

110 yen

6 yen depreciation
against USD
7 yen depreciation
against EURO2013 Forecast

Sales by Region and Market segment
Sales by region
172.2
Europe 7.9

150

America 17.6

Asia 36.3

Sales by market

175.0
Europe 8.0+0.5%

America 17.7 +0.4%

50

䋰

Fiscal 2012

(Billions of yen)

Energy andinfrastructure

31.0
Asia 40.3+10.7%

100Japan
110.2

172.2

Japan
109.0

Fiscal 2013
Forecast

Industrial
machinery /Marketsales
54.7

175.0
Energy andinfrastructure

+3.2%

32.0
Industrialmachinery /Marketsales
53.0-3.1%-1.2%

Automobiles
86.5

Fiscal 2012

Automobiles +4.0%
90.0

Fiscal 2013ForecastSales by Business (Tools, Machinery & Robots)
CuttingTools

Machine Tools

2013 ForecastRobots㪉㪏㪅㪌㪉㪎㪅㪈㪉㪌㪅㪎㪉㪋㪅㪊 㪉㪉㪅㪌㪉㪈㪅㪈㪈㪐㪅㪉㪈㪋㪅㪇㪈㪍㪅㪈㪈㪇㪅㪊㪈㪊㪅㪌 㪈㪉㪅㪊㪈㪇㪅㪏㪍㪅㪌 㪎㪅㪇
FY ’09 ’10 ’11 ’12 2013’09 ’10 ’11 ’12 2013’09 ’10 ’11 ’12 2013

(Billions of yen)Sales by Business (Components and Others)
Bearings

Hydraulicequipment2013 Forecast
Other6064.1
63.6

4058.6

62.0

45.1

34.0
31.9
31.42024.5

15.0
14.3

16.9

11.0

14.0

9.20
FY ’09 ’10 ’11 ’12 2013
(Billions of yen)

’09 ’10 ’11 ’12 2013’09 ’10 ’11 ’12 2013Sales and Operating Income by business segments 2013 Forecast(Billion yen)

Fiscal 2012 (A)Year over year

Fiscal 2013
Forecast (B)(%)(B)䋭(A)(+4.2%)+2.6

6.4 (+16.2%)+0.8

96.0(+0.5%)

+0.4

4.1

(+19.4%)

+0.6

14.0

(-2.4%)-0.3

1.0(-39.5%)-0.6

Machinery & Tools
Net Sales
Operating Income

62.3(8.9%)

5.5

65.0(9.8%)

Components
95.5

Net Sales
Operating Income(3.6%)

3.4(4.3%)

Materials & Others
Net Sales
Operating Income

14.3(11.5%)

1.6(7.1%)

Total Net Sales

172.2

175.0(+1.6%)+2.7

Total OperatingIncome(6.2%) 10.6(6.6%) 11.5(+8.1%)

+0.8



2013 Forecast

Factors for Change in Operating Income(Profit up 5.5 billion yen)
Improved operating
capacity: +1015

Effect of exchange
rate:
-17
Cost reductions: +30(Profit down 4.6 billion yen)
Raw materials up -10
Price down -15
Fixed costs,
sales overhead, etc: -21

10+9.0billion yen
51061150

Fiscal 2012(Billions of yen)

Fiscal 2013Achieving Our Long-term Vision

Sales Plan 2013

䂾 Year 䋲䋰䋱䋳, to achieve our long-term vision,
䊶Improvement of a business structure䋨billion of yen䋩䊶Build business basis
in the emerging countries
䊶Expand Products, Incoming order
400
Sales
204.8

172.2

175

2008

2012

2013

2014

2015

2020


㪿䌴䌴䌰㪑㪆㪆㫎㫎㫎㪅㫅㪸㪺㪿㫀㪄㪽㫌㫁㫀㫂㫆㫊㪿㫀㪅㪺㫆㪅㫁㫇㪆The future business prospects, business plans and other matters described inthis document have been worked out based on certain assumptions including
the current economic environment, business policy and other factors.
Please understand, therefore, that the actual business performance can bedifferent from this prospective performance due to various factors including
fluctuations in demands and exchanges.