July 7th, 2008
NACHI –FUJIKOSHI CORP.

Contents
Part 1.
Outline of Operations
1. Interim Figures of Fiscal 2008㪉㩷㫋㫆㪈㪇2䋮Plans for the Whole Fiscal 2008 㪈㪈㩷㫋㫆㩷㪈㪏Part 2.
Management Measures㪈㪐㩷㫋㫆㩷㪉㪌䋱䋲㪦㫍㪼㫉㫍㫀㪼㫎㩷㫆㪽㩷㪠㫅㫋㪼㫉㫀㫄㩷㪝㫀㪾㫌㫉㪼㫊㩷㪽㫆㫉㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏 㩿㪚㫆㫅㫊㫆㫃㫀㪻㪸㫋㪼㪻㪀Mid’ 08

䂾 Profit and Loss Statements
䋨unit䋺100mil Yen)㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎㪠㫅㫋㪼㫉㫀㫄㩷㩿䌁㪀㪝㫀㫊㪺㪸㫃㪉㪇㪇㪏㪠㫅㫋㪼㫉㫀㫄㩷㩿㪙㪀䋹䋲䋶㪥㪼㫋㩷㪪㪸㫃㪼㫊㪚㪿㪸㫅㪾㪼㫊㩷㫀㫅㩷㪧㫉㫆㪽㫀㫋㩿㪙㪀㩷㪄 㩿㪘㪀䋱㪃䋰䋴䋸㩿䋫䋱䋳㪅䋲㩼㪀䋫䋱䋲䋲㪦㫇㪼㫉㪸㫋㫀㫅㪾㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋶㩼㪀㩷㩷䋷䋹㩿䋹㪅䋱㩼㪀㩷㩷䋹䋵㩿䋫䋲䋰㪅䋶㩼㪀㩷䋫䋱䋶㪦㫉㪻㫀㫅㪸㫉㫐㩷㪧㫉㫆㪽㫀㫋㩿䋷㪅䋸㩼㪀㩷䋷䋲㩿䋸㪅䋲㩼㪀㩷䋸䋶㩿䋫䋱䋹㪅䋲㩼㪀䋫䋱䋳㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㩷㩷㩷䋹䋰䂦䋸㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪣㫆㫊㫊䋳䋱䂦䋲㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㩷㪧㫉㫆㪽㫀㫋䋴䋱䋴䋸㪧㫉㫆㪽㫀㫋㩿䋫䋱䋶㪅䋰㩼㪀䋫䋶䋳㪠㫅㪻㪼㫏㩷㫆㪽㩷㪙㫌㫊㫀㫅㪼㫊㫊㩷㪩㪼㫊㫌㫃㫋㫊Mid ‘08
Ordinary Profit (100mil yen)

Net Sales(100mil yen)㪦㫇㪼㫉㪸㫋㫀㫅㪾㩷㪧㫉㫆㪽㫀㫋㪥㪼㫋㩷㪪㪸㫃㪼㫊㪈㪃㪇㪈㪇㪈㪃㪇㪇㪇㪏㪇㪇㪏㪈㪉㪎㪎㪍㪍㪇㪇㪋㪇㪇㪋㪊㩿㪌㪅㪍㩼㪀㪌㪍㩿㪎㪅㪇㩼㪀㪏㪋㪏㪎㪇㪍㪉㩿㪎㪅㪎㩼㪀㩿㪎㪅㪊㩼㪀㪐㪊㪍㪐㪊㪈㪐㪈㪈㪈㪃㪇㪋㪏㪈㪇㪇㪐㪉㪍㪎㪐㩿㪏㪅㪍㩼㪀㪎㪐㪎㪌㩿㪏㪅㪌㩼㪀㩿㪏㪅㪈㩼㪀㪏㪏㩿㪏㪅㪏㩼㪀㪐㪌㩿㪐㪅㪈㩼㪀㪏㪇㪍㪇㪋㪇㪉㪇㪇㪉㪇㪇㪇㩾㪇㪋㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩾㪇㪌㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩷㩾㪇㪍㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩾㪇㪎㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩾㪇㪏㩷㪈㫊㫋㪟㪸㫃㪽䋴

Major Management Indexes 2008
䋨unit䋺100 mil yen䋩㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋷㪠㫅㫋㪼㫉㫀㫄㩷㩿䌁㪀㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋸㪠㫅㫋㪼㫉㫀㫄㩷㩿㪙㪀䋱㪃䋹䋰䋱䋲㪃䋰䋶䋸䋫䋱䋶䋷䋨䋱㪅䋱 㫋㫀㫄㪼㫊䋩 䋶䋱䋱䋨䋱㪅䋱 㫋㫀㫄㪼㫊䋩 䋶䋲䋴䋫䋱䋲㪫㫆㫋㪸㫃㩷㪘㫊㫊㪼㫋㫊㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋㩷Mid ’08㪚㪿㪸㫅㪾㪼㫊䋨㪙䋩䋭䋨㪘䋩䋨㪛㪆㪜 㪩㪸㫋㫀㫆䋩㪪㪿㪸㫉㪼㪿㫆㫃㪻㪼㫉㫊㩷㩷㪜㫈㫌㫀㫋㫐㩷㩿㪜㫈㫌㫀㫋㫐㩷㪚㪸㫇㫀㫋㪸㫃㩷㪩㪸㫋㫀㫆㪀䋨䋲䋹㪅䋴㩼䋩䋵䋵䋹䋨䋲䋸㪅䋷㩼䋩䋵䋹䋳䋫䋳䋳㪚㪸㫇㫀㫋㪸㫃㩷㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼䋸䋹䋱䋱䋴䋫䋲䋴㪜㫏㫇㪼㫅㫊㪼㫊㩷㫆㪽㩷㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅䋴䋵䋵䋰䋫䋴㪥㫌㫄㪹㪼㫉㩷㫆㪽㩷㪘㫊㫊㫆㪺㫀㪸㫋㪼㫊䋵㪃䋶䋹䋸䋵㪃䋸䋵䋷䋫䋱䋵䋹䌒 䌏 䌁䋸㪅䋳䋦䋹㪅䋲䋦䋰㪅䋹 㫇㫆㫀㫅㫋㫊㩷㫀㫄㫇㫉㫆㫍㪼㩷䌒 䌏 䌅䋱䋵㪅䋵䋦䋱䋶㪅䋳䋦䋰㪅䋸 㫇㫆㫀㫅㫋㫊㩷㫀㫄㫇㫉㫆㫍㪼㪜㫏㪺㪿㪸㫅㪾㪼㩷㪩㪸㫋㪼䋨㪬㪪㩻䋩䋨㪜㪬㪩䋩䋱䋱䋹㫐㪼㫅䋱䋵䋴㫐㪼㫅䋱䋰䋹㫐㪼㫅䋱䋶䋱㫐㪼㫅䋱䋰㫐㪼㫅㩷㪸㫇㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅䋶㫐㪼㫅㩷㪻㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅䋵

Sales by Each Area

Mid ‘08㪊㪉㪎

100 mil yen㪈㪃㪇㪇㪇Overseas Sales 㸢㪏㪇㪇㪍㪇㪇䌾䌾㪋㪇㪇㪊㪊㪋㪊㪏㪉㪐㪌㪌㪍㪊㪌㪌㪏㩾㪇㪋㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩿㪊㪇㪅㪇㩼㪀 㩿㪊㪉㪅㪊㩼㪀 㩿㪊㪊㪅㪉㩼㪀㪈㪈㪌㪈㪈㪈㪊㪏㪋㪉㪋㪍㪌㪈㪊㪐㪈㪇㪊㪈㪈㪋㪈㪈㪎㪈㪉㪏㪈㪊㪐㪈㪉㪏㪏㪍㪍㪈㪇㩿㪊㪊㪅㪇㩼㪀㪘㫊㫀㪸㪈㪋㪊㪈㪋㪏㪜㫌 㫉 㫆 㫇㪼㪍㪇㪌㪋㪘㫄㪼 㫉 㫀㪺 㪸㪈㪉㪋㪈㪊㪈Domestic㪍㪎㪍㪍㪌㪋㪍㪌㪈㪍㪊㪊㪍㪈㪏㪉㫅㪻㩾㪇㪍㩷㪈㫊㫋㪟㪸㫃㪽㪉㫅㪻㩾㪇㪎㩷㪈㫊㫋㪟㪸㫃㪽㩾㪇㪌㩷㪈㫊㫋㪟㪸㫃㪽㩿㪊㪈㪅㪉㩼㪀㪊㪇㪎㪈㪉㪉㪈㪈㪋㪐㪎㪉㪎㪐㩷㪊㪇㪉㩷㪊㪊㪊㪎㪉㪈㪉㫅㪻㩾㪇㪏㩷㪈㫊㫋㪟㪸㫃㪽䋶Sales by Business Segments 䋨Cutting Tools & Machines䋩
Mid ’08(Unit䋺100 mil yen䋩㪈㪌㪇㪈㪍㪏㪈㪌㪍㪈㪌㪍㪈㪌㪎㪈㪌㪐 㪈㪌㪍㪈㪊㪌㪈㪇㪇㪈㪇㪈㪐㪈㪐㪈㪐㪇㪐㪈㪏㪋㪏㪌㪏㪉㪌㪇Cutting Tools
㪇

1stHalf
2006

2ndMachine Tools

1st

1st

1st

1stHalf

2nd Half

Half

2nd Half

2007

2008

2006

2006

2nd

Robots
1st

1stHalf

Half

2006

2006

2nd

1st

1stHalf

2nd Half

2006

2006

䋷

Sales by Business Segments 䋨Components & Special Steels 䋩Mid ‘08(unit䋺100 mil yen䋩㪊㪋㪍㪊㪋㪊㪊㪇㪇㪊㪉㪋㪊㪈㪊㪊㪉㪇㪉㪇㪇㪈㪐㪍㪈㪏㪎㪈㪎㪍㪈㪐㪎

㪈㪏㪌Special Steels& Other㪈㪇㪇Hydraulic
Bearings㪇

1stHalf

2nd2006㪎㪇㪍㪏㪎㪍

㪎㪇㪎㪐

Equipments

1st

1st

1st

1st

1st

1st

1st

1stHalf

2nd Half

Half

2nd Half

2nd Half

Half

2nd Half

2nd Half

2006

2006

2006

2006

2006

2006

2006

2006

䋸

Sales & Operating Profits by Business Segments
Fiscal 䋲䋰䋰䋸Interim (B)S

Cutting Tools䋱䋵䋷䋱䋵䋶㩿 䂦䋰㪅䋷㩼㪀㩷䂦䋱

aMachine Tools䋸䋲䋱䋶䋸㩿䋲㪅䋰 㫋㫀㫄㪼㫊㪀

䋫䋸䋵e

Ros䋹䋱

䋸䋵㩿 䂦䋶㪅䋸㩼㪀㩷㩷䂦䋶s(unit䋺100 mil yen䋩

Fiscal 䋲䋰䋰䋷Interim (A)

Tol

䋳䋳䋱

䋴䋰䋹㩿䋫䋲䋳㪅䋸㩼㪀㩷 䋫䋷䋸䋲䋸㩿 䋫䋸㪅䋹㩼㪀㩷㩷㩷 䋫䋲Mid ‘08

Changes(%)(B)䋭(A)lot

OperatingS a l e staProfit

䋨䋷.䋹%䋩䋲䋶䋨䋷.䋰%䋩

B e a r i n g s䋳䋲䋴䋳䋴䋶㩿㩷㩷䋫䋶㪅䋶㩼㪀㩷㩷㩷㩷䋫䋲䋱

Hydraulic Equipments䋱䋸䋵䋱䋹䋷㩿 䋫䋶㪅䋳㩼㪀㩷㩷 䋫䋱䋱T䋵䋱䋰䋵䋴䋳㩿 䋫䋶㪅䋵㩼㪀㩷㩷㩷㩷䋫䋳䋳䋴䋷䋨䋱䋰.䋵%䋩 䋵䋶Special Steels䋷䋰䋷䋹㩿䋫䋱䋱㪅䋶㩼㪀㩷㩷㩷 䋫䋸Oot

OperatingS a l e sO t h e r s

Tools & Machines C o m p o n e n t s M a t e r i a l s &b

Tt

S a l e set

Operatingl

Profithoa䋨䋹.䋲%䋩

㩿䋫䋲䋰㪅䋵㩼㪀㩷䋫䋹rs䋱䋴䋱䋶㩿䋫䋱䋵㪅䋰㩼㪀㩷㩷㩷㩷 䋫䋲al䋸䋵䋹䋵㩿䋫䋱䋲㪅䋲㩼㪀䋫䋱䋰䋹㩿䋫䋶䋳㪅䋲㩼㪀㩷䋫䋳

Profit䋨䋶.䋹%䋩

䋹䋲䋶T o t a lOperating Profit Total

䋵䋨䋸.䋶%䋩

䋷䋹䋨䋱䋰.䋱%䋩

䋱㪃䋰䋴䋸䋨䋹.䋱%䋩䋹䋵㩿䋫䋱䋳㪅䋲㩼㪀 䋫䋱䋲䋲㩿䋫䋲䋰㪅䋶㩼㪀㩷㩷 䋫䋱䋶䋹

Factors of Fluctuating Sales Profit Figures(unit䋺 100 mil yen䋩

Increase in Sales& Production
䋫36

Mid ‘08
Increase of Costsof Raw Materials
䂦12
Increase in FixedCosts & Others
䂦14

Cost Reduction
䋫8
Sales Price
Reformation
䋫4

Effects of Currency
Exchange Rate
䂦6䋫㪈㪍㩷㪐㪌㩷㪎㪐
1st Half

1st Half

2007

2008

䋱䋰䋱䋱㪤㪸㫅㪸㪾㪼㫄㪼㫅㫋㩷㪧㫃㪸㫅㩷㫆㪽㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏㩷’08 Plan䋨unit䋺100 mil yen䋩㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋷㩿䌁㪀㪪㪸㫃㪼㫊㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋸㪧㫃㪸㫅㩷㩿䌂㪀䋱㪃䋹䋳䋶䋲㪃䋰䋷䋰㪚㪿㪸㫅㪾㪼㫊㩿㪙㪀㩷㪄 㩿㪘㪀㩿䋫䋶㪅䋹㩼㪀㩷㩷䋫䋱䋳䋳㪦㫇㪼㫉㪸㫋㫀㫅㪾㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋷㩼㪀㩷㩷䋱䋶䋷 㩿䋸㪅䋲㩼㪀㩷㩷 䋱䋷䋰㩿䋫䋱㪅䋳㩼㪀㩷㩷㩷䋫䋲㪦㫉㪻㫀㫅㪸㫉㫐㩷㪧㫉㫆㪽㫀㫋㩿䋷㪅䋹㩼㪀㩷㩷㩷㩷 䋱䋵䋲 㩿䋷㪅䋵㩼㪀㩷㩷㩷㩷 䋱䋵䋵㩿䋫䋱㪅䋴㩼㪀㩷㩷䋫䋲㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪧㫉㫆㪽㫀㫋䋱䋰㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㩷㪣㫆㫊㫊㩷㩷䋲䋷䋷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋷䋸䋸䋸 㩿䋫䋱䋲㪅䋰㩼㪀 䋫䋱䋰䂦䋱䋰䂦䋲䋰䋱䋲

Major Management Index
䋨unit䋺100 mil yen䋩㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋷㩿䌁㪀㪝㫀㫊㪺㪸㫃㩷䋲䋰䋰䋸㪧㫃㪸㫅㩷㩿㪙㪀䋲㪃䋰䋱䋷䋲㪃䋰䋰䋰䂦䋱䋷㪫㫆㫋㪸㫃㩷㪘㫊㫊㪼㫋㫊㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋’08 Plan㪚㪿㪸㫅㪾㪼䋨㪙䋩䋭䋨㪘䋩䋨䋱㪅䋰 㫋㫀㫄㪼䋩䋶䋱䋹䋨䋱㪅䋰㫋㫀㫄㪼䋩䋶䋶䋶䋫䋴䋶䋨䋲䋹㪅䋳㩼䋩䋵䋹䋰䋨䋳䋲㪅䋶㩼䋩䋶䋵䋲䋫䋶䋱䋨㪛㪆㪜 㪩㪸㫋㫀㫆䋩㪪㪿㪸㫉㪼㪿㫆㫃㪻㪼㫉㫊㩷㪜㫈㫌㫀㫋㫐㩿㪜㫈㫌㫀㫋㫐㩷㪚㪸㫇㫀㫋㪸㫃㩷㪩㪸㫋㫀㫆㪀㪚㪸㫇㫀㫋㪸㫃㩷㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼䋱䋹䋲䋲䋰䋰䋫䋷㪜㫏㫇㪼㫅㫊㪼㫊㩷㫆㪽㩷㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅㩷䋹䋹䋱䋰䋴䋫䋵㪥㫌㫄㪹㪼㫉㩷㫆㪽㩷㪘㫊㫊㫆㪺㫀㪸㫋㪼㫊䋵㪃䋸䋰䋲䋵㪃䋹䋰䋰ੱ䋫䋹䋸䌒 䌏 䌁䋸㪅䋳䋦䋸㪅䋵䋦䋰㪅䋲㫇㫆㫀㫅㫋㩷㫀㫄㫇㫉㫆㫍㪼䌒 䌏 䌅䋱䋳㪅䋳䋦䋱䋳㪅䋵䋦䋰㪅䋲㫇㫆㫀㫅㫋㩷㫀㫄㫇㫉㫆㫍㪼㪜㫏㪺㪿㪸㫅㪾㪼㩷㪩㪸㫋㪼䋨㪬㪪㩻䋩䋨㪜㪬㪩䋩䋱䋱䋹㫐㪼㫅䋱䋵䋸㫐㪼㫅䋱䋰䋶㫐㪼㫅 䋱䋳 㫐㪼㫅㩷㪸㫇㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅䋱䋵䋸㫐㪼㫅䋭䋱䋳Capital Expenditure and Debt with Interest 䊶Equity’08 PlanDebt with Interest(100 mil yen)㪏㪇㪇㪎㪊㪇㪍㪏㪐㪎㪊㪍㪎㪊㪐㪚㪸㫇㫀㫋㪸㫃㩷㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋㪜㫈㫌㫀㫋㫐㪍㪐㪊㪌㪐㪐㪍㪇㪇

Capital Expenditure(100 mil yen)㪍㪍㪍㪍㪈㪐㪍㪇㪋㪌㪊㪉㪌㪊㪉㪉㪇㪇㪋㪇㪇㪉㪏㪐㪊㪇㪍㪉㪎㪉㪉㪍㪐㪉㪇㪇㪈㪐㪉㪊㪎㪏㪉㪏㪌㪍㪌㪉㪌㪐㪇㪋㪍㪐㪋㪇㪇㪊㪇㪇㪈㪏㪇㪉㪎㪐㪈㪋㪈㪈㪇㪇㪈㪇㪎㪉㪇㪇㪏㪊㪌㪐㪌㪎㪍㪇㪊㪏㪌㪊㪇㪇㪐㪏㪐㪐㪉㪇㪇㪇㪇㪈㪇㪉㪇㪊㪇㪋㪇㪌㪇㪍㪇㪎㪉㪇㪇㪏䋱䋴Sales by Business Segments 䋨Cutting Tools & Machines䋩
’08 Plan㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪊㪈㪍㩷㩷 㸢 㪊㪉㪇㩷㩿㪂㪈㪅㪇㩼㪀

䋨unit䋺100 mil yen䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪉㪈㪎㩷㩷㩷㩷㩷㩷㸢 㪉㪎㪇㩷㩿㪂㪉㪋㪅㪈㩼㪀㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪈㪎㪌㩷㩷 㸢 㪈㪏㪇㩷㩿㪂㪉㪅㪊㩼㪀㪈㪌㪇㪈㪌㪐㪈㪌㪍㪈㪌㪎㪈㪌㪍㪈㪍㪊

Risk of the Investment forAutomobile Industry䋺䂦5 billion yen㪈㪍㪏㪈㪊㪌㪈㪇㪇㪈㪇㪉㪐㪈㪐㪇㪐㪈㪏㪋㪏㪌㪐㪌㪏㪉㪌㪇

㪇

Cutting Tools

Machine Tools

2nd 1st 2nd 1st 2nd
Half Half
Half
2006 20072008

2nd 1st 2nd 1st 2ndHalf Half
Half
2006 2007
2008

Robots2nd 1st 2nd 1st 2ndHalf Half
Half
2006 20072008

䋱䋵Sales Figures by Main Business(Components & Special Materials)’08 Plan䋨unit 䋺 100 mil yen䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪍㪍㪏㩷㩷㸢 㪎㪇㪌㩷㩿㪂㪌㪅㪋㩼㪀㪊㪋㪍㪊㪇㪇

㪊㪌㪏㪊㪋㪊㪊㪉㪇㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪊㪏㪈㩷㩷㸢 㪋㪇㪇㩷㩿㪂㪋㪅㪏㩼㪀㪊㪉㪋㪉㪇㪇㪈㪏㪎

㪈㪐㪍

㪈㪏㪌

㪈㪐㪎

㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㸢 㪉㪇㪇㪏㪈㪋㪎㩷㩷㸢 㪈㪍㪌㩷㩿㪂㪈㪈㪅㪐㩼㪀㪉㪇㪉Special Steels & others㪈㪇㪇

HydraulicBearings㪇㪍㪏

Equipments

2nd 1st 2nd 1st 2ndHalf Half
Half
2006 20072008

2nd 1st 2nd 1st 2ndHalf Half
Half2006 20072008

㪎㪇㪏㪌

㪎㪐

㪎㪍

2nd 1st 2nd 1st 2ndHalf Half
Half2006 2007
2008

䋱䋶

Prospects by Business Segments ( Sales & Operating Profit )Fiscal 2007
(A)

’08 Plan(unit 䋺 100 mil yen䋩

Fiscal 2008
Plan (B)

Change(%)(B)䋭(A)䋳䋱䋶䋳䋲䋰㩿 䋫䋱㪅䋰㩼㪀㩷䋫䋳

aMachine Tools䋲䋱䋷䋲䋷䋰㩿䋫䋲䋴㪅䋱㩼㪀

䋫䋵䋲e

Ros

䋱䋷䋵

䋱䋸䋰㩿 䋫䋲㪅䋳㩼㪀㩷㩷

䋫䋴s

Tol

䋷䋱䋰

䋷䋷䋰㩿㩷䋫䋸㪅䋴㩼㩷㪀㩷㩷 䋫䋶䋰䋵䋲㩿㩷䋫䋲㪅䋰㩼 㪀㩷㩷lSbot

OperatingS a l e sta

Profit䋨䋷.䋳%䋩

䋵䋱䋨䋶.䋸%䋩

䋫䋱B e a r i n g s䋶䋶䋸䋷䋰䋵㩿㩷㩷䋫䋸㪅䋴㩼㪀㩷㩷㩷㩷䋫䋳䋶H y d r a u l i cE q u i p m e n t s䋳䋸䋱䋴䋰䋰㩿 䋫䋴㪅䋸㩼㪀㩷㩷㩷㩷䋫䋱䋸l䋱,䋰䋵䋰䋱,䋱䋰䋵㩿 䋫䋵㪅䋲㩼㪀㩷㩷㩷㩷䋫䋵䋴Profit䋨䋹.䋷%䋩 䋱䋰䋱

䋨䋹.䋳%䋩 䋱䋰䋳Special Steels䋱䋴䋷䋱䋶䋵㩿䋫䋱䋱㪅䋹㩼㪀㩷㩷㩷㩷䋫䋱䋷

OTot

OperatingS a l e sO t h e r sTools & Machines C o m p o n e n t s M a t e r i a l s &Cutting Tools

Tt

hoet

Operatinga䋫䋱rs䋲䋸䋳䋰㩿㩷㩷䋫䋴㪅䋸㩼㪀㩷㩷al䋱䋷䋶䋱䋹䋵㩿䋫䋱䋰㪅䋸㩼㪀㩷㩷 䋫䋱䋹䋱䋵㩿䋫䋱䋰㪅䋷㩼㪀㩷㩷

Profit䋨䋷.䋷%䋩

䋱䋳

䋨䋷.䋷%䋩

T o t a l䋱㪃䋹䋳䋶䋲㪃䋰䋷䋰

Operating Profit Total

䋨䋸.䋷%䋩 䋱䋶䋷䋨䋸.䋲%䋩 䋱䋷䋰S a l e s㩿 䋫䋱㪅䋴㩼㪀㩷㩷䋫䋲䋫䋱㩿㩷䋫䋶㪅䋹㩼㪀㩷㩷䋫䋱䋳䋳㩿㩷䋫䋱㪅䋳㩼㪀㩷㩷䋫䋲䋱䋷Factors of Fluctuating Sales Profit Figures’08 Plan(unit 䋺 100 mil yen䋩

Increase in Sales &Production
䋫40

Cost Reduction
䋫㪈㪎Sales PriceReformation䋫㪈㪉

Increase of Costsof Raw Materials䂦㪊㪊

Increase in Fixed
Costs & Others䂦㪈㪐
Effects of Currency
Exchange Rate䂦㪈㪌
䋫㪉
㪈㪎㪇

㪈㪍㪎
Fiscal 䋲䋰䋰䋷

Fiscal 䋲䋰䋰䋸

PerformancePlan䋱䋸䋱䋹Management Policies and Market Awareness1. Outlook on market environment䊶In 2008 the economy continued to fluctuate as the markets diversified
Economic recession in the US 㸢 May spread to the global economyInflated cost of resources 㸢 Resources and developing countries growing in importance䂯Downturn in demand 䂯Falling dollar 䂯Escalating cost of materials

2. Management policies
䊶Strengthen interconnectivity of management
䊶Expand operations on multiple fronts

Establishing stable profit growth

I. Bolster production capacities of strategic products - Specifically in the industrial machinery field
II. Expand business in new markets
III. Promote engineering business䋲䋰㽲Industrial Machinery as Main Business䂾㪪㪸㫃㪼㫊㩷㪹㫐㩷㪜㪸㪺㪿㩷㪤㪸㫉㫂㪼㫋䋲㪃䋰䋷䋰

100 mil yen㪉㪃㪇㪇㪇䋱㪃䋷䋶䋰䋱㪃䋸䋶䋷䋱㪃䋹䋳䋶<Automotive><Automotive>䋱㪃䋵䋸䋸㪈㪃㪌㪇㪇㪈㪃㪇㪇㪇㪌㪇㪇䋱㪃䋴䋶䋶㪎㪍㪐㪌㪉㩼㪐㪌㪏㪋㪐㩼㪌㪌㪎㪉㪐㩼㪍㪈㪇㪉㪐㩼

FiscalFiscal ‘03㸢’08‘03㸢’08
Sales
Sales 䋲.䋰䋲.䋰 times
times
Ratio
Ratio 䋫䋸䋫䋸 points
pointsElectric and electronics

㪊㪌㪉㪉㪉㩼㪋㪊㪇
㪉㪋㩼

㪏㪏

㪏㪇

㪎㪎㪍㪇㪍㪌

㪊㪋㪉㪊㪌㪇㪊㪎㪇㪊㪎㪌㪊㪍㪈㪊㪍㪌㪇㪊㪇㪋

㪇㪌

㪇㪍㪇㪎

㪉㪇㪇㪏

㪊㪇㪍㪉㪈㩼

FiscalFiscal ‘03㸢’08‘03㸢’08
Sales
Sales 䋱.䋳䋱.䋳 times
times
Ratio
Ratio 䂦䋲䂦䋲 points
points<Industrial<Industrial Machinery>
Machinery>㪋㪏㪎㪉㪍㩼

㪋㪐

㪇

㪎㪐㪏
㪌㪇㩼

㪏㪏㪇
㪌㪇㩼

㪐㪉㪏
㪌㪇㩼

㪈㪃㪇㪊㪇
㪌㪇㩼

Retail etc.

䋲䋱Focusing Management Resources on Strategic Products
Bolster production framework of strategic products forindustrial machinery and automotive marketsMizuhashi Plant

Toyama Head office, Toyama Plant

Precision bearings

Bearing heat treatment factory

Gear cutting tools

NACHI Tohoku Seiko Co.,Ltd.
(Yamagata)

Namerikawa Plant

Wheel Drive motors
for construction
machinery

Rotary center joints

Control valves
for Automobiles

䋲䋲II. Expand Business in New Markets
Expand overseas operations in emerging nations
䂾 Overseas net sales: 641 (33.1%) 㸢 65.0 billion yen (31.4%)
Asia
+8.7%
Europe +3.7%
100 million yen䋲,䋰䋷䋰
USA
䂦7.4%䋱,䋹䋳䋶㪉㪃㪇㪇㪇㪘㫊㫀㪸
Thailand: ASEAN Business Center䋱,䋸䋶䋷䋱,䋷䋶䋰㪉㪍㪉䋱,䋵䋸䋸㪈㪃㪌㪇㪇䋱,䋴䋶䋶㪉㪈㪉㪈㪐㪈㪈㪎㪎㪉㪇㪇㪈㪃㪇㪇㪇㪉㪉㪎㪈㪏㪐㪎㪏㪉㪊㪈㪉㪌㪐㪏㪏㪈㪇㪍㪇㪊㪊㪇㪇㪬㪪㪉㪋㪇㪜㪬㪈㪈㪇㪎㪍㪈㪃㪈㪉㪉㪇㪋

Established

Shanghai: Hydraulic equipment joins
bearing and cutting tool production㪈㪃㪉㪍㪋㪈㪃㪉㪏㪋㪈㪃㪉㪐㪌㪡㪸㫇㪸㫅㪈㪃㪋㪉㪇㪇㪌㪇㪍㪇㪎㪉㪇㪇㪏㪍㪊䌾 㪈㪃㪇㪈㪈
䌾㪌㪇㪇

㪉㪎㪌

Brazil: Growing auto and motorcycle
demand䋲䋳III. Promote Engineering Business

Expanding engineering at home and abroad䂾 Key facilities in Japan - From engineering to presentations & training -Kyushu Plant (provisional name, opening summer 2009)(Kurume City, Fukuoka Prefecture)

NACHI Engineering(Ayase City, Kanagawa Prefecture)䂾 Key facilities overseas - USA, China, Mexico, and India -NACHI PRECISIONNORTH CAROLINA

NACHI (Shanghai) Precision Tools Co., Ltd.

NACHI MEXICANAENGINEERING CENTER

䋲䋴㪚㫆㫄㫇㪸㫉㫀㫊㫆㫅㩷㫆㪽㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏㩷㫎㫀㫋㪿㩷㪩㪼㪺㪼㫅㫋㩷㪰㪼㪸㫉㫊Continuous 6-terms Increase in Revenue & Profit䋨 Stable Growth of Profit 䋩Sales (100 mil yen)

Operating Profit(100 mil yen)㪉㪃㪇㪎㪇㪦㫇㪼㫉㪸㫋㫀㫅㪾㩷㪧㫉㫆㪽㫀㫋㪪㪸㫃㪼㫊㪉㪃㪇㪇㪇㪈㪃㪌㪋㪈㪈㪃㪌㪇㪇㪈㪃㪋㪉㪐㪈㪃㪌㪊㪈㪈㪃㪎㪍㪇㪈㪃㪌㪏㪏㪈㪃㪋㪎㪉㪈㪃㪊㪊㪐㪈㪃㪋㪍㪍㪈㪊㪉㪎㪅㪌㩼㪈㪃㪇㪇㪇㪌㪇㪇㪋㪏㪋㪍㪈㪃㪏㪍㪎㪈㪃㪐㪊㪍㪎㪍㪌㪅㪉㩼㪌㪍㪊㪋㪈㪌㪌㪏㪅㪊㩼㪈㪍㪎㪏㪅㪎㩼㪉㪇㪇㪈㪎㪇㪏㪅㪉㩼㪈㪇㪇㪈㪇㪇㪍㪅㪊㩼㪌㪇㪊㪏㪇㪇㪐㪏㪐㪐㪉㪇㪇㪇㪇㪈㪇㪉㪇㪊㪇㪋Dividend (yen)㪏㪍㪋㪉㪇㪈㪌㪇㪇㪌㪎㪇㪍㪉㪇㪇㪎㪉㪇㪇㪏㪏㪏㪏㪌㪊㪊㪊㪊㪊㪊䋲䋵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

These materials are produced based on expectations of future performance and business plans that arepredicated on a continuation of current economic conditions and business policies.
Because of this, actual performance may vary from expected business performance due to fluctuations indemand, exchange rates and various other factors.