January 29, 2008
NACHI –FUJIKOSHI CORP.

CONTENTSPart 1: Outline of the Closing
1. Final Accounts for Fiscal 2007

2 - 102. Plans for Fiscal 200811 - 15

Part 2
Prospects for Fiscal 200816 - 23䋱㪦㫌㫋㫃㫀㫅㪼㪑㩷㪚㫆㫅㫊㫆㫃㫀㪻㪸㫋㪼㪻㩷㪝㫀㫅㪸㫃㩷㪩㪼㫊㫌㫃㫋㫊 㪜㫅㪻㪼㪻㩷㪥㫆㫍㪅㩷㪉㪇㪇㪎(100 millions of yen)䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿㪘㪀㪪㪸㫃㪼㫊䋱㪃䋸䋶䋷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿㪙㪀䋱㪃䋹䋳䋶㪚㪿㪸㫅㪾㪼㩿㪙㪀㩷㪄 㩿㪘㪀㩿䋫䋳㪅䋷㩼㪀䋫䋶䋹㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋳㩼㪀㩷㩷㪚㫌㫉㫉㪼㫅㫋 㪧㫉㫆㪽㫀㫋㩿䋷㪅䋶㩼㪀㩷㩷㩷㩷 䋱䋴䋱㩿䋷㪅䋹㩼㪀㩷㩷㩷㩷 䋱䋵䋲㪪㫇㪼㪺㫀㪸㫃㩷㪧㫉㫆㪽㫀㫋䋶䋱䋰䋫䋴㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪣㫆㫊㫊䋱䋶䋲䋷䋫䋱䋱㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋷䋳䋷䋸䋱䋵䋵㩿䋸㪅䋷㩼㪀㩷㩷䋱䋶䋷㩿䋫䋷㪅䋸㩼㪀㩷㩷 䋫䋱䋲㩿䋫䋷㪅䋹㩼㪀㩷㩿䋫䋷㪅䋶㩼㪀䋫䋱䋱䋫䋵䋲Managerial Data
(100 millions of yen)㪚㫆㫃㫃㪼㪺㫋㫀㫍㪼㩷㪘㫊㫊㪼㫋㫊㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿㪘㪀䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿㪙㪀㪚㪿㪸㫅㪾㪼㫊䋨㪙䋩䋭䋨㪘䋩䋱㪃䋸䋶䋱䋲㪃䋰䋱䋷䋫䋱䋵䋶㩿㪉㪏㪅㪍㩼㪀㩷 䋵䋳䋲㩿㪉㪐㪅㪊㩼㪀㩷 䋵䋹䋰㩿㪂㪇㪅㪎㫇㫆㫀㫅㫋㪀 䋫䋵䋸㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋䋶䋰䋴䋶䋱䋹䋫䋱䋵䌄㪆䌅 㫉㪸㫋㫀㫆㪈㪅㪈㫏㪈㪅㪇㫏㪚㪸㫇㫀㫋㪸㫃㩷䋱䋸䋰䋱䋹䋲䋫䋱䋲㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅㩷㪚㫆㫊㫋䋸䋷䋹䋹䋫䋱䋲㪟㫌㫄㪸㫅㩷㩷㪩㪼㫊㫆㫌㫉㪺㪼㫊䋵㪃䋶䋱䋳 㫁㫆㪹㫊䋵㪃䋸䋰䋲 㫁㫆㪹㫊㪫㫆㫋㪸㫃㩷㪜㫈㫌㫀㫋㫐㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼㫊䋫䋱䋸䋹 㫁㫆㪹㫊 䋳Factors of Fluctuating Business Profit by Market䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

100 millions of yen

Industrial Machinery䂦䋱䋷䋫䋷䋰䋱㪃䋹䋴䋰

䂦䋱䋳

Electric, Electronic
Machinery
Other䋱㪃䋹䋲䋰䋱㪃䋹䋳䋶䋱㪃䋹䋰䋰

䋫䋶.䋹 㪹㫀㫃㫃㫀㫆㫅

Auto䋫䋳䋰
䋱㪃䋸䋸䋰䋱㪃䋸䋶䋰䋱㪃䋸䋶䋷䌾䋰

Performance
2006

Performance
2007䋴

Factors of Fluctuating Business Profit by Area䋰䋶 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

100 millions of yen䋱㪃䋹䋴䋰America䋫䋲䋷䋱㪃䋹䋲䋰Europe䋱㪃䋹䋰䋰䋫䋱䋷
Asia䋫䋶.䋹㪹㫀㫃㫃㫀㫆㫅䋱㪃䋹䋳䋶䋫䋱䋴䋱㪃䋸䋸䋰Japan䋫䋱䋰䋱㪃䋸䋶䋰䌾䋱㪃䋸䋶䋷䋰

Performance
2006

Performance2007䋵Factors of Fluctuating Sales Profit by Business Field
100 millions of yen

Bearings

Housing䋫䋳䋴䋱㪃䋹䋴䋰䂦䋱䋴

Robotic 䂦䋵Hydraulic Equipment
䋱㪃䋹䋲䋰

Machining Tools
䋱㪃䋹䋰䋰䋫䋱䋸䋱㪃䋹䋳䋶

䋫䋶.䋹 㪹㫀㫃㫃㫀㫆㫅䋫䋲䋴
Special Steels 䋫䋸䋱㪃䋸䋸䋰Cutting Tools 䋫䋳䋱㪃䋸䋶䋷

䋱㪃䋸䋶䋰

䌾
䋰

Performance
2006

Performance
2007

Factors of Fluctuating Business Profit䋶䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥

100 millions of yen

Increase in Sales &Production

䋲䋰䋰

Cost Reduction䂦䋱䋸Increase in Fixed Costs
Sales PriceReformation䋱䋸䋰䋫䋲䋰

Increase in Cost of Raw
Materials

Effects of Currency
Exchange Rate

Effects of Housing business䋱䋶䋰䋫䋴䋫䋱䋸䂦䋲䋸䋫䋸䋫䋸䋫䋱.䋲㪹㫀㫃㫃㫀㫆㫅䋱䋶䋷䋱䋴䋰䌾䌾䋱䋵䋵䋰

Performance2006

Performance2007

䋷Sales & Operating Profits by Business Segments
Fiscal 2006
Performance(A)䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥(100 millions of yen)

Fiscal 2007
Performance(B)Change(B)䋭(A)Sales䋳䋱䋳䋳䋱䋶㩿 䋫䋱㪅䋱㩼㪀㩷䋫䋳

Machine Tools䋱䋹䋲䋲䋱䋷㩿䋫䋱䋲㪅䋷㩼㪀

䋫䋲䋴

Ros

䋱䋸䋱

䋱䋷䋵㩿 䂦䋲㪅䋹㩼㪀㩷㩷

䂦䋵

Tol

䋶䋸䋷

䋷䋱䋰㩿 䋫䋳㪅䋳㩼㪀㩷 䋫䋲䋲䋵䋱㩿䂦䋲䋳㪅䋳㩼㪀㩷㩷㩷㩷䂦䋱䋵S a l e s

SalesTools & Machines Components

Cutting Tools
bottaP r o f i t

䋨䋹.䋸%䋩䋶䋷䋨䋷.䋳%䋩䋶䋳䋴䋶䋶䋸㩿㩷㩷䋫䋵㪅䋴㩼㪀㩷㩷㩷㩷䋫䋳䋴Hydraulic Equipment䋳䋶䋳䋳䋸䋱㩿 䋫䋵㪅䋰㩼㪀㩷㩷㩷㩷䋫䋱䋸T䋹䋹䋷䋱,䋰䋵䋰㩿 䋫䋵㪅䋳㩼㪀㩷㩷㩷㩷䋫䋵䋲䋸䋲

䋨䋹.䋷%䋩 䋱䋰䋱㩿䋫䋲䋳㪅䋹㩼㪀㩷㩷 䋫䋱䋹Special Steels䋱䋳䋹䋱䋴䋷㩿 䋫䋶㪅䋰㩼㪀㩷㩷㩷 䋫䋸Other䋴䋳䋲䋸㩿䂦䋳䋳㪅䋶㩼㪀㩷㩷 䂦䋱䋴Total䋱䋸䋲䋱䋷䋶㩿 䂦䋳㪅䋴㩼㪀䂦䋶䋱䋳㩿㪉㪅㪌㫏㪀䋫䋸oS a l e s

Sales

Materials etc

B e a r i n g stal

P r o f i t

S a l e s

P r o f i t

䋨䋸.䋲%䋩

䋨䋳.䋰%䋩

䋵

䋨䋷.䋷%䋩

Figures䋱㪃䋸䋶䋷䋱㪃䋹䋳䋶㩿 䋫䋳㪅䋷㩼㪀㩷 䋫䋶䋹

Gross Business Profits

䋨䋸.䋳%䋩 䋱䋵䋵䋨䋸.䋷%䋩 䋱䋶䋷㩿 䋫䋷㪅䋸㩼㪀㩷 䋫䋱䋲

GrossSales䋸

Sales Figures by Main Business (Machining & Cutting Tools)䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥(100 millions of yen)䋱.䋱%up㪊㪈㪊㪊㪈㪍

䋱䋲.䋷%up㪊㪇㪊

䋲.䋹%down㪉㪎㪌㪉㪈㪎㪈㪎㪊CuttingTools㪈㪎㪎㪈㪏㪈 㪈㪎㪌㪈㪐㪉㪈㪍㪎㪈㪋㪉

Machining
Tools

Robots‘㪇㪋 ‘㪇㪌 ‘㪇㪍㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎‘㪇㪋‘㪇㪌‘㪇㪍 㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎‘㪇㪋‘㪇㪌 ‘㪇㪍 㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎䋹Sales Figures by Main Business 䋨Components & Special Steels)
䋵.䋴% up(100 millions of yen)䋰䋷 䌐䌥䌲䌦䌯䌲䌭䌡䌮䌣䌥㪍㪍㪏㪍㪊㪋

㪌㪐㪈

䋵.䋰% up㪌㪋㪍㪊㪏㪈㪊㪍㪊

䋳.䋴% down㪊㪉㪉㪉㪏㪇

㪈㪎㪇

HydraulicEquipment

Bearings㪈㪐㪏 㪈㪏㪉 㪈㪎㪍Special Steels& Other㪇㪋㪇㪌㪇㪍㪝㫀㫊㪺㪸㫃㪇㪋㪇㪌㪇㪍 㪝㫀㫊㪺㪸㫃㪇㪋㪉㪇㪇㪎㪉㪇㪇㪎㪇㪌㪇㪍 㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎䋱䋰㪤㪸㫅㪸㪾㪼㫄㪼㫅㫋㩷㪧㫃㪸㫅㪑㩷㪸㫊㩷㫆㪽㩷㪥㫆㫍㪅㩷㪉㪇㪇㪎㩷㩷䋰䋸 㪧㫃㪸㫅䋨㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㫊㩷㫆㪽㩷㫐㪼㫅䋩㪪㪸㫃㪼㫊㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿㪘㪀㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅㩷㩿㪙㪀䋱㪃䋹䋳䋶䋱㪃䋹䋷䋰䋱䋶䋷㪚㪿㪸㫅㪾㪼㩿㪙㪀㩷㪄 㩿㪘㪀㩿䋫䋱㪅䋷㩼㪀㩷㩷 䋫䋳䋳䋱䋷䋰㩿䋫䋱㪅䋳㩼㪀㩷㩷䋫䋲㩿䋷㪅䋹㩼㪀㩷㩷㩷㩷 䋱䋵䋵㩿䋫䋱㪅䋴㩼㪀㩷䋫䋲㪪㪸㫃㪼㫊㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋷㩼㪀㩷㩷㪚㫌㫉㫉㪼㫅㫋㩷㪧㫉㫆㪽㫀㫋㩿䋷㪅䋹㩼㪀㩷㩷㩷㩷 䋱䋵䋲㪪㫇㪼㪺㫀㪸㫃㩷㪧㫉㫆㪽㫀㫋䋱䋰㪜㫏㫋㫉㪸㫆㫉㪻㫀㫅㪸㫉㫐㩷㪣㫆㫊㫊㪼㫊䋲䋷䋱䋲㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋷䋸䋸䋵㩿䋸㪅䋶㩼㪀㩷㩷䂦䋱䋰䂦䋱䋵㩿䋫䋸㪅䋲㩼㪀䋫䋶䋱䋱

Managerial Data㪇㪎㩷㪧㫃㪸㫅㪝㫀㫊㪺㪸㫃㪉㪇㪇㪎㩷㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㩿䌁㪀䋨㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㫊㩷㫆㪽㩷㫐㪼㫅 䋩㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅㩿㪙㪀㪚㪿㪸㫅㪾㪼䋨㪙䋩䋭䋨㪘䋩㪚㫆㫃㫃㪼㪺㫋㫀㫍㪼㩷㪘㫊㫊㪼㫋㫊䋲㪃䋰䋱䋷㪫㫆㫋㪸㫃㩷㪜㫈㫌㫀㫋㫐㩿㪉㪐㪅㪊㩼㪀㩷 䋵䋹䋰㪛㪼㪹㫋㩷㫎㫀㫋㪿㩷㪠㫅㫋㪼㫉㪼㫊㫋䋶䋱䋹䋶䋶䋰䌄㪆䌅 㫉㪸㫋㫀㫆㪈㪅㪇㫏㪈㪅㪇㫏㪚㪸㫇㫀㫋㪸㫃㩷㩷㩷䋱䋹䋲䋲䋰䋰䋫䋷㪛㪼㫇㫉㪼㪺㫀㪸㫋㫀㫆㫅㩷㪚㫆㫊㫋䋹䋹䋱䋰䋹䋫䋱䋰㪟㫌㫄㪸㫅㩷㪩㪼㫊㫆㫌㫉㪺㪼㫊䋵㪃䋸䋰䋲 㫁㫆㪹㫊䋵㪃䋹䋰䋰 㫁㫆㪹㫊䋲㪃䋰䋸䋰䋫䋶䋲㩿㪊㪈㪅㪌㩼㪀㩷 䋶䋵䋶 㩿㪂㪉㪅㪉㩷㫇㫆㫀㫅㫋㪀 䋫䋶䋵䋫䋴䋰㪜㫏㫇㪼㫅㪻㫀㫋㫌㫉㪼㫊䋫䋹䋸 㫁㫆㪹㫊 䋱䋲

Prospects by Business Segments (Sales & Business Profits)(100 millions of yen)

Fiscal2007
Performance(A)Fiscal 2008
Projection (B)ChangeSalesSales䋳䋱䋶䋳䋲䋵㩿 䋫䋲㪅䋶㩼㪀㩷䋫䋸

Machine Tools䋲䋱䋷䋲䋰䋵㩿 䂦䋵㪅䋸㩼㪀䂦䋱䋲

Ros䋱䋷䋵

䋱䋸䋰㩿 䋫䋲㪅䋳㩼㪀㩷㩷䋫䋴Tol䋷䋱䋰䋷䋱䋰㩿㩷㩷㩷㩷㩷㩷 䋭 㪀㩷㩷䋭䋵䋳㩿㩷䋫䋲㪅䋲㩼 㪀㩷㩷䋫䋱

botta

Profit䋨䋷.䋳%䋩

䋵䋱

䋨䋷.䋵%䋩

B e a r i n g s䋶䋶䋸䋶䋸䋵㩿㩷㩷䋫䋲㪅䋴㩼㪀㩷㩷㩷㩷䋫䋱䋶

Hydraulic Equipment䋳䋸䋱䋳䋹䋵㩿 䋫䋳㪅䋵㩼㪀㩷㩷㩷㩷䋫䋱䋳l䋱,䋰䋵䋰䋱,䋰䋸䋰㩿 䋫䋲㪅䋸㩼㪀㩷㩷㩷㩷䋫䋲䋹Profit

䋨䋹.䋷%䋩 䋱䋰䋱

䋨䋹.䋶%䋩 䋱䋰䋴Special Steels䋱䋴䋷䋱䋵䋵㩿 䋫䋵㪅䋲㩼㪀㩷㩷㩷 䋫䋷Other䋲䋸䋲䋵㩿䂦䋱䋲㪅䋶㩼㪀㩷㩷䂦䋳

Total

䋱䋷䋶

䋱䋸䋰

㩿 䋫䋲㪅䋳㩼㪀㩷㩷䋫䋴䋱䋳㩿㩷㩷㩷㩷㩷㩷 䋭 㪀㩷㩷䋭

ToBusiness

SalesTools & Machines C o m p o n e n t s Materials etc.

Cutting Tools

BusinessBusinesstaProfit

䋨䋷.䋷%䋩

䋱䋳

䋨䋷.䋲%䋩

Figures䋱㪃䋹䋳䋶䋱㪃䋹䋷䋰

Gross Business Profits

䋨䋸.䋷%䋩 䋱䋶䋷䋨䋸.䋶%䋩 䋱䋷䋰

Gross(A)䋭(B)

Sales㩿 䋫䋳㪅䋹㩼㪀㩷㩷䋫䋲㩿 䋫䋱㪅䋷㩼㪀㩷 䋫䋳䋳㩿 䋫䋱㪅䋳㩼㪀䋫䋲䋱䋳Factors of Fluctuating Sales Figures (Projected)㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㫊㩷㫆㪽㩷㫐㪼㫅䋱㪃䋹䋹䋰

Bearing Business
Machine Tool Business䋫䋱䋶䂦䋱䋲Hydraulic Business䋱㪃䋹䋷䋰Other 䂦䋳䋫䋱䋳Cutting Tool Business䋱㪃䋹䋵䋰 Robot Business䋫䋴䋫䋳.䋳 㪹㫀㫃㫃㫀㫆㫅

䋫䋸Material Business 䋫7䋱㪃䋹䋷䋰䋱㪃䋹䋳䋶䋱㪃䋹䋳䋰䌾䌾䋰

Fiscal 2007

Fiscal 2008

Performance

Projection

䋱䋴

Factors of Fluctuating Business Profit (Projected)
Increase in Sales䋰䋸 㪧㫃㪸㫅㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㫊㩷㫆㪽㩷㫐㪼㫅& Production䋫䋱䋴䂦䋱䋵

Increase of Costs ofRaw Materials

Cost Reduction
Increase in Fixed Costs䋫䋲䋰

䋱䋹䋰

䂦䋱䋵
Effects of Currency
Sales Price
Reformation䋱䋷䋰䂦䋱䋰Exchange Rate䋫䋸䋱䋷䋰䋱䋵䋰䌾
䌾䋰䋫䋲 㪹㫀㫃㫃㫀㫆㫅䋱䋶䋷
Fiscal 2007

Fiscal 2008

Performance

Projection䋱䋵Prospects for 2008
䋱䋮 Sales Prospects for 200817

䋲䋮 Future Outlook and Management Stance18

for Nachi-Fujikoshi
㽲 Promoting Engineering Business19

㽳 Developing R&D Connections with20

Other Main Business㽴 Industrial Machinery as Second Main

21-22

Business䋳䋮Management Strategies23䋱䋶䋱䋮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
Sales (100 millions of yen)

Business Profit (100 millions of yen)㪙㫌㫊㫀㫅㪼㫊㫊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㪏㪍㪎㪈㪃㪐㪊㪍 㪈㪃㪐㪎㪇㪉㪇㪇㪈㪃㪌㪏㪏㪈㪃㪋㪎㪉㪈㪃㪊㪊㪐㪈㪃㪋㪍㪍㪈㪍㪎㪈㪎㪇㪈㪌㪌㪈㪌㪇㪈㪊㪉㪈㪇㪇㪈㪃㪇㪇㪇㪈㪇㪇㪎㪍㪌㪇㪇
㪋㪏

㪋㪍㪌㪇

㪌㪍
㪊㪋㪊㪏㪇㪈㪇㪉

㪇㪇㪐㪏㪐㪐

Dividend (yen)
㪏㪍
㪊
㪊
㪋
㪉
㪇

㪉㪇㪇㪇

㪇㪊

㪇㪋

㪇㪌㪇㪍
㪎

㪉㪇㪇㪎 㪉㪇㪇㪏
㪏

㪏

㪏

㪌
㪊

㪊㪊㪊

䋱䋷

䋲䋮Future Outlook and Stance for Nachi-Fujikoshi
䋨䋱䋩 View on Managerial Environment
䊶2008 as transition period of economic prospectsEconomic recession in U.S.A.
Apprehension about slow economic fluctuations in ChinaFactors in political and economical instability
Stronger yen rate…

The end of domination of the American dollar
The beginning of diversified times

䋨䋲䋩 Stance for Diversified Times
䊶Stronger connection in every managerial aspect㽲 Promoting engineering business㽳 Developing R&D connections with other main business㽴 Industrial machines as second main business䋱䋸㽲 Promoting Engineering Business䊶Expansion of Engineering Business Footholds in Japanand Other Countries
䊶Promoting Connected Engineering between Machinery
Manufacturing, Robot, Component and Steel MaterialBusinesses
䊶Foundation of “Nachi Engineering” to spread out all over Japan
䊶Spread across the world, especially in the U.S.A., China andother areas where our customers are.

㪥㪘㪚㪟㪠 㪧㪩㪜㪚㪠㪪㪠㪦㪥 㪥㪦㪩㪫㪟 㪚㪘㪩㪦㪣㪠㪥㪘㪥㪘㪚㪟㪠㩷㩿㪪㪟㪘㪥㪞㪟㪘㪠㪀㩷㪚㪦㪅㪃㩷㪣㪫㪛㪅䋱䋹㽳 Developing R&D Connections with Other Main Businesses
Developing New Products and Technologies that are
Linked to Other Main Businesses On Top of Basic Researchand Development of Production Techniques䊶㪝㫆㫌㫅㪻㪸㫋㫀㫆㫅㩷㫆㪽㩷㵰㪩㩽㪛㩷㪤㪸㫋㪼㫉㫀㪸㫃㵱㪛㪼㫍㪼㫃㫆㫇㫄㪼㫅㫋㩷㫆㪽㩷㫅㪼㫎㩷㫇㫉㫆㪻㫌㪺㫋㫊㩷㫌㫊㫀㫅㪾㩷㫄㪸㫋㪼㫉㫀㪸㫃㩷㪸㫅㪻㩷㪿㪼㪸㫋㩷㫋㫉㪼㪸㫋㫄㪼㫅㫋㩷㫋㪼㪺㪿㫅㫀㫈㫌㪼㫊䌆䌍 㪘㪣㪣㪦㪰 㪸㫅㪻㩷㪽㫆㫉㫄㪼㪻㩷㪸㫃㫌㫄㫀㫅㫌㫄㩷㫇㫉㫆㪻㫌㪺㫋㫊㩷㪼㫋㪺㪅䊶㪧㫉㫆㫍㫀㪻㪼㩷㫆㫌㫉㩷㫄㪸㫅㫌㪽㪸㪺㫋㫌㫉㫀㫅㪾㩷㫋㪼㪺㪿㫅㫀㫈㫌㪼㩷㫎㫀㫋㪿㩷㫇㫉㫆㪻㫌㪺㫋㫊䋲䋰㽴 Industrial Machinery as Second Main Business㪈㪇㪇㩷㫄㫀㫃㫃㫀㫆㫅㫊㩷㫆㪽㩷㫐㪼㫅㪉㪃㪇㪇㪇䋱㪃䋷䋶䋰䋱㪃䋸䋶䋷䋱㪃䋹䋳䋶䋱㪃䋹䋷䋰䋱㪃䋵䋸䋸㪈㪃㪌㪇㪇㪈㪃㪇㪇㪇䋱㪃䋴䋶䋶㪎㪍㪐㪌㪉㩼㪐㪎㪇㪋㪐㩼㪓㪠㫅㪻㫌㫊㫋㫉㫀㪸㫃㩷㪤㪸㪺㪿㫀㫅㪼㫉㫐㪕㪌㪌㪎㪉㪐㩼㪍㪇㪇㪊㪇㩼䊶 㪚㫆㫅㫋㫀㫅㫌㪼㪻㩷㪾㫉㫆㫎㫋㪿㩷㫀㫅㩷㪺㫆㫅㫊㫋㫉㫌㪺㫋㫀㫆㫅㩷㪸㫅㪻㩷㪸㪼㫉㫆㫊㫇㪸㪺㪼㩷㪼㫈㫌㫀㫇㫄㪼㫅㫋䊶㪪㫋㪸㪹㫃㪼㩷㪧㫉㫆㪽㫀㫋㪜㫃㪼㪺㫋㫉㫀㪺㩷㪸㫅㪻㩷㪼㫃㪼㪺㫋㫉㫆㫅㫀㪺㫊㪊㪌㪉㪉㪉㩼㪋㪊㪇㪉㪋㩼㪏㪏㪏㪇㪎㪎㪍㪇㪍㪇㪊㪋㪉㪊㪌㪇㪊㪎㪇㪊㪎㪌㪊㪍㪈㪊㪋㪇㪇㪊㪇㪋㪇㪌㪇㪍㪉㪇㪇㪎㪉㪇㪇㪏㪉㪈㩼㪋㪐㪇㪐㪌㪏㪋㪐㩼㪋㪏㪎㪉㪍㩼㪊㪇㪍㪌㪇㪇㪎㪐㪏㪌㪇㩼㪏㪏㪇㪌㪇㩼㪐㪉㪏㪌㪇㩼㪓㪘㫌㫋㫆㫄㫆㫋㫀㫍㪼㪕䊶 㪮㫆㫉㫃㪻㫎㫀㪻㪼㩷㫇㫉㫆㪻㫌㪺㫋㫀㫆㫅㩷㫀㫊㩷㫊㫋㪼㪸㪻㫐䊶㪚㪸㫇㫀㫋㪸㫃㩷㫀㫅㫍㪼㫊㫋㫄㪼㫅㫋㩷㫀㫊㩷㫌㫅㫊㫋㪸㪹㫃㪼㪅㪩㪼㫋㪸㫀㫃㩷㪼㫋㪺㪅䋲䋱㪜㫏㫇㪸㫅㫊㫀㫆㫅㩷㫆㪽㩷㪧㫉㫆㪻㫌㪺㫋㫊㩷㫎㫀㫋㪿㩷㪧㫉㫀㫄㪸㫉㫐㩷㪚㫆㫄㫇㪼㫋㫀㫋㫀㫍㪼㩷㪘㪻㫍㪸㫅㫋㪸㪾㪼㫊Strengthening products with primary competitive advantages
for industrial machinery and automotive markets(1) Targeting Industrial Machinery䊶㪟㫐㪻㫉㪸㫌㫃㫀㪺㩷㪼㫈㫌㫀㫇㫄㪼㫅㫋㩷㪽㫆㫉㩷㪺㫆㫅㫊㫋㫉㫌㪺㫋㫀㫆㫅㩷㫄㪸㪺㪿㫀㫅㪼㫉㫐䊶㪧㫉㪼㪺㫀㫊㫀㫆㫅㩷㪹㪼㪸㫉㫀㫅㪾㫊㩷䊶㪧㫉㪼㪺㫀㫊㫀㫆㫅㩷㫋㫆㫆㫃㫊㩷㪽㫆㫉㩷㪸㪼㫉㫆㫊㫇㪸㪺㪼㩷㫄㪸㪺㪿㫀㫅㪼㫉㫐㪸㫅㪻㩷㪾㪼㫅㪼㫉㪸㫋㫆㫉㫊䊶㪥㪼㫎㩷㪧㫃㪸㫋㪽㫆㫉㫄㩷㪩㫆㪹㫆㫋㩷㩿㪧㫉㪼㫊㫋㫆㩷㪤㪩㪉㪇㪀㩷㪼㫋㪺㪅(2) Targeting Automotive Industries䊶㪞㪼㪸㫉㩷㪺㫌㫋㫋㫀㫅㪾㩷㫋㫆㫆㫃㫊㩷㪽㫆㫉㩷㫋㫉㪸㫅㫊㫄㫀㫊㫊㫀㫆㫅㫊䊶㪙㪼㪸㫉㫀㫅㪾㫊㩷㪽㫆㫉㩷㪚㪅㪭㪅㪡㪅䊶㪘㫌㫋㫆㫄㫆㫋㫀㫍㪼㩷㫊㫆㫃㪼㫅㫆㫀㪻㩷㫍㪸㫃㫍㪼㫊 㪼㫋㪺㪅䋲䋲䋳䋮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䋲䋰䋰䋸(100 millions of yen)㪪㪸㫃㪼㫊㩷㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪏㪧㫉㫆㫁㪼㪺㫋㫀㫆㫅㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪍㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼㪝㫀㫊㪺㪸㫃㩷㪉㪇㪇㪎㪧㪼㫉㪽㫆㫉㫄㪸㫅㪺㪼䋱㪃䋸䋶䋷䋱㪃䋹䋳䋶䋱㪃䋹䋷䋰䋱䋶䋷㩿䋸㪅䋶㩼㪀㩷㩷 䋱䋷䋰㪙㫌㫊㫀㫅㪼㫊㫊㩷㪧㫉㫆㪽㫀㫋㩿䋸㪅䋳㩼㪀㩷㩷㪚㫌㫉㫉㪼㫅㫋㩷㪧㫉㫆㪽㫀㫋㩿䋷㪅䋶㩼㪀㩷㩷㩷㩷 䋱䋴䋱㩿䋷㪅䋹㩼㪀㩷㩷㩷㩷 䋱䋵䋲㪚㫌㫉㫉㪼㫅㫋㩷㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋䋷䋳䋷䋸䋸䋵䋲䋹㪅䋳䋸䋳䋱㪅䋶䋱䋳䋴㪅䋱䋸䋸

䋸䋸㪥㪼㫋㩷㪧㫉㫆㪽㫀㫋㪆㪪㪿㪸㫉㪼䋱䋵䋵㩿䋸㪅䋷㩼㪀㩷㩷㩿䋷㪅䋹㩼㪀㩷䋱䋵䋵㩿㫐㪼㫅㪀㪛㫀㫍㫀㪻㪼㫅㪻㪆㪪㪿㪸㫉㪼㩿㫐㪼㫅㪀䋲䋳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.