Jan. 24, 2020
NACHI-FUJIKOSHI CORP.
Outline㻌㻌㻌 㻌 Business Results for FY2019㻌䠎㻌䠉㻌 䠓㻌㻌 㻌 Business Forecast for FY2020

䠔㻌䠉䠍䠏㻌㻌 㻌 Management Strategy䠍䠐䠉䠍䠕㻌Business Results for FY2019

FY2019(Billion JPY)

FY2018(A)

Increase/Decrease(B) – (A)㸣 㸫

OperatingIncome㸣   㸣  㸣  㸫

OrdinaryIncome㸣  

㸣  

㸣  㸫Net Income㸣  㸫

Exchange rate-3<-3< -3<DSSUHFLDWLRQ
-3< -3<DSSUHFLDWLRQ
-3< -3<DSSUHFLDWLRQ

-3<-3<Net Sales


FY2019(B) 㸦USD㸧       
-3< 㸦Euro㸧-3< 㸦RMB㸧        Cash DividendsConsolidated Financial Data

FY2019
㸦Billion JPY㸧FY2018(A)

Increase/Decrease(B)-(A)FY2019
(B)

ROE㸣㸣㸫SW

Total Assets

㸩

Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt
(Net D/E Ratio)

㸣  㸣    㸩   㸩

Capacity Investment㸩

Depreciation andAmortization㸩

Number of Employees㸫Sales by Business Segment and Region

FY2019(persons)( Sales by Business Segment)(Billion JPY)
    

5RERWV(XURSH0DFKLQH7RROV(Sales by Region)  $VLD
H[FHSW&KLQD 

%HDULQJV      

&KLQD
 YoY$PHULFDV&XWWLQJ7RROV    -DSDQ+\GUDXOLF(TXLSPHQW

2WKHUV      㻲㼅㻞㻜㻝㻤㻲㼅㻞㻜㻝㻥㻲㼅㻞㻜㻝㻤㻲㼅㻞㻜㻝㻥Causes of Changes in Operating Income(Increase㸸2.6)

(Billion JPY)

FY2019

䠄 Decrease 䠖 4.5䠅

Increase insales price

Rise in material price-0.5

Effect of exchange rate -1.7
Increase in other costs-2.3+1.3

Cost reduction +1.3



㻝㻡㻚㻟㻌

㻝㻟㻚㻟㻌



㻲㼅㻞㻜㻝㻤

㻵㼚㼏㼞㼑㼍㼟㼑㻌㼒㼍㼏㼠㼛㼞㼟㻰㼑㼏㼞㼑㼍㼟㼑㻌㼒㼍㼏㼠㼛㼞㼟㻲㼅㻞㻜㻝㻥

Sales and Operating Income by Business Segment

FY2019
㸦Billiion JPY㸧FY2018(A)
Machinery &Tools

Cutting Tools
Machine Tools
RobotsNet SalesOthers Components

Operating IncomeBearings
Hydraulic EquipmentNet Sales
Operating Income
Net Sales
Operating Income
Total Net Sales
Total Operating Income

FY2019(A)Increase/Decrease(B) – (A) 㸫㸣   㸫  㸩㸣 㸩 
 㸫㸣 㸫 
 㸩㸣 㸩   㸩㸣 㸩㸦㸣㸧㸦㸣㸧 
 㸫㸣  㸫 
 㸩㸣  㸩 
 㸫㸣 㸫㸫㸣㸦㸣㸧㸦㸣㸧 㸫 㸩㸣 㸩㸩㸣㸦㸣㸧 㸦㸣㸧  㸩㸫㸣  㸫㸫㸣㸦㸣㸧㸦㸣㸧  㸫 

FY2020e
Consolidated Financial Highlights (FY2020 Plan)
(Billion JPY)

FY2019(A)

Net Sales

FY2020Plan (B)Increase/Decrease㻌 㻌(B) – (A)㸫㸣 㸫

OperatingIncome㸣  㸣  㸫㸣  㸫

OrdinaryIncome㸣   㸣   

㸫㸣  㸫Net Income
Exchange rate㸫㸣  㸫 (USD㸧       
 (EUR㸧 (RMB㸧-3<
-3<
-3<

-3< -3<DSSUHFLDWLRQ
-3< -3<DSSUHFLDWLRQ
-3< -3<DSSUHFLDWLRQCash Dividends

-3<-3<


Consolidated Financial Data (FY2020 Plan)

FY2020e(Billion JPY)

FY2019(A)Increase/Decrease㻌 㻌(B) – (A)FY2020Plan (B)ROE㸣㸣㸫SW

Total Assets



㸫

Stockholder’s Equity(Stockholder’s Equity Ratio)

Interest-bearing Debt
(Net D/E Ratio)㸣  㸣    㸩  㸩

Capacity Investment

㸫

Depreciation andAmortization



㸩

Number of Employees

㸫Sales by Business Segment and Region (FY2020 Plan)

FY2020e(persons)(Sales by Business Segment)

(Sales by Region)(Billion JPY)
㻯㼡㼠㼠㼕㼚㼓㻌㼀㼛㼛㼘㼟㻌㻹㼍㼏㼔㼕㼚㼑㻌㼀㼛㼛㼘㼟㻌 s 5RERWV    㻭㼙㼑㼞㼕㼏㼍㼟㻌㻱㼡㼞㼛㼜㼑㻌  
㻭㼟㼕㼍㻔㼑㼤㼏㼑㼜㼠㻌㻯㼔㼕㼚㼍㻕    㻯㼔㼕㼚㼍㻌㻮㼑㼍㼞㼕㼚㼓㼟㻌


(YoY)



    㻶㼍㼜㼍㼚㻌㻴㼥㼐㼞㼍㼡㼘㼕㼏㻌㻱㼝㼡㼕㼜㼙㼑㼚㼠㻌㻻㼠㼔㼑㼞㼟㻌  㻲㼅㻞㻜㻝㻥㻲㼅㻞㻜㻞㻜㻌㻼㼘㼍㼚  

  㻲㼅㻞㻜㻝㻥

㻲㼅㻞㻜㻞㻜㻌㻼㼘㼍㼚Causes of Changes in Operating Income (FY2020 Plan)
䠄 Increase 䠖 5.1䠅(Billion JPY)

FY2020e䠄 Decrease 䠖 5.9䠅

Cost reduction +2.5

Effect of exchange rate -0.9Decreasein other costs +2.6

Operating rate
deterioration -5.0㻝㻟㻚㻟㻌㻝㻞㻚㻡㻌㻲㼅㻞㻜㻝㻥㻵㼚㼏㼞㼑㼍㼟㼑㻌㼒㼍㼏㼠㼛㼞㼟㻰㼑㼏㼞㼑㼍㼟㼑㻌㼒㼍㼏㼠㼛㼞㼟㻲㼅㻞㻜㻞㻜㻌㻼㼘㼍㼚

Sales and Operating Income by Business Segment (FY2020 Plan)

FY2020e(Billion JPY)

FY2019(A)Machinery &Tools

Cutting Tools
Machine Tools
RobotsNet Sales

Others Components

Operating Income
Bearings
Hydraulic Equipment
Net Sales
Operating Income
Net Sales
Operating Income
Total Net Sales
Total Operating Income

FY2020Plan (B)

Increase/Decrease(B) – (A) s㸣 s   㸣 㸫   㸣 㸩   㸣 㸫     㸩 㸩㸦㸣㸧㸦㸣㸧  㸣     㸣     㸣 㸣㸣㸧 㸦㸣㸧  㸣 㸣㸣㸧 㸦㸣㸧 㸣  

㸣㸣㸧㸦㸣㸧    


Outline of FY2020 Plan

Management Strategy

Market view
㻌 AutomobileᲴDecrease of sales and production, restrain of capacity investment
㻌㻌- Low level of the demand for industrial machine(Billion JPY)Net Sales252.2
Operating(6.1%) 15.3
IncomeNet Sales249.0   Net Sales230.0
OperatingOperating(5.4%)
13.3(5.4%)12.5
IncomeIncome

1Q

1Q

2Q

3Q

㻲㼅㻞㻜㻝㻤㻌

4Q

2Q

3Q

㻲㼅㻞㻜㻝㻥㻌

4Q

1Q

2Q

3Q

㻲㼅㻞㻜㻞㻜㻌㻼㼘㼍㼚㻌

4Q



Management Strategy

Strategy of production

Reducing the cost rate
㻌 Rationalization and flexible manpower line㻌 Reducing the cost of materials and outside manufacturing thoroughly㻌 Starting mass production at Robot factory 䠏㻌䞉Reinforcing production capacity
by two and a half times before
䞉Start up unmanned lines㻌㻌㻌

5RERWIDFWRU\

Securing and Increasing OrdersձManagement Strategy㻌 Responding rationalization and automation㻌㻿㼑㼞㼕㼑㼟㻌㼛㼒㻌㻌㻌㼏㼛㼙㼜㼍㼏㼠㻌㻌㼞㼛㼎㼛㼠㼟㻌㻌㻌㻿㼏㼍㼞㼍㻌㻾㼛㼎㼛㼠㻌㻌㻌㻌䠩䠶䠌䠍㻌䠩䠶䠌䠐㻌䠩䠶䠌䠓㻌䠩䠶䠍䠎㻌䠩䠶䠎䠑㻌'HEXUULQJ&HOO

㻌 Responding energy saving and improving productivity(QHUJ\6DYLQJ8QLW163L

3RZHU0HLVWHU$TXD5(92'ULOOV$TXD5(920LOOVSecuring and Increasing OrdersղManagement Strategy

Responding the shift to EVs and autonomous cars
$FWXDWRUVStart up Automotive Hydraulics Factory 4㻌䞉Automated and utilizing IoT at production line㼂㼂㼍㼚㼑㻌㼜㼡㼙㼜㻌$XWRPRWLYH+\GUDXOLFV)DFWRU\Promoting Structual ReformManagement Strategy㻔㻾㼑㼠㼡㼞㼚㻌㼠㼛㻌㼓㼞㼛㼣㼠㼔㻌㼜㼍㼠㼔㻕㻌Net Sales(Billion JPY)㻟㻜㻜

Operating Income(Billion JPY)㻢㻜

1HW6DOHV
2SHUDWLQJ,QFRPH㻡㻜㻠㻜㻞㻜㻜㻟㻜㻝㻤㻚㻡㻌㻌 㻝㻤㻚㻥㻌㻌㻝㻜㻜㻝㻠㻚㻢㻌㻌㻝㻜㻚㻢㻌㻌㻤㻚㻞㻌㻌㻝㻞㻚㻟㻌㻌㻝㻢㻚㻝㻌㻌 㻝㻡㻚㻟㻌㻌㻝㻟㻚㻟㻌㻌 㻝㻞㻚㻡㻌㻌㻞㻜㻝㻝㻚㻝㻌㻌㻝㻜

㻜㻜㻝㻜㻝㻝㻝㻞㻝㻟㻝㻠㻝㻡㻝㻢㻝㻣㻝㻤㻝㻥 㻲㼅㻞㻜㻞㻜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㻌

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 various factors, including market
fluctuations and currency fluctuations, which may result in a different
earnings forecast.

