IR Info.

TO OUR SHAREHOLDERS

We would like to express our sincere gratitude to our shareholders for your continued support and patronage.

We report the results for the NACHI-FUJIKOSHI Group for the period from December 1, 2016 to November 30, 2017.

Business Environment

The environment surrounding the NACHI-FUJIKOSHI Group during the present term has, overall, been a gentle recovery resulting from the rally of the economies of the developed countries led by Europe and the United States and of the Chinese economy.

Business Progress and Results

Given this environment, the NACHI-FUJIKOSHI Group has been making full use of its strength as a comprehensive machinery manufacturer with robotics business at its core, and also encompassing cutting tools, machine tools, bearings, hydraulic equipment, and special steel businesses, to expand its sales, by finding new customers, mainly new users in overseas countries, releasing new products into the market, and establishing technical centers globally.

Thanks to the initiatives mentioned above, consolidated sales in the current term reached 237.4 billion yen, up 12.3% compared with the previous period. This includes domestic sales of 119.1 billion yen (similarly increased by 5.5%) and overseas sales of 118.2 billion yen (similarly increased by 20.0%). In terms of profitability, operating income, ordinary income and current term net income attributable to owners of the parent were 16.1 billion yen (similarly increased by 44.8% compared with the previous period), 14.6 billion yen (similarly increased by 89.2%) and 9.7 billion yen (similarly increased by 2.5 times), respectively.

Dividends

With regard to the fiscal year-end dividend, taking into account the profit and the future business development, it has been decided that the dividend would remain the same as the previous period and 10 yen per share would be paid.

Future Initiatives

The demand structure surrounding NACHI-FUJIKOSHI Corp. is expected to go through a significant change due to the acceleration in the deployment of FA (Factory Automation) system for manufacturing, accompanied by the advancement of AI (Artificial Intelligence) and IoT (Internet of Things) technology, in addition to the declining birthrate and aging population and the declining labor force.

Seizing this change in the demand structure as a major opportunity, the NACHI-FUJIKOSHI Group will enhance the nature of all aspects of sales and ser vice, manufacturing and procurement, and research and development. We intend to do this by focusing on the robot business in which demand is expected to grow further, and establishing a medium-term management policy, ‚Innovate in manufacturing worldwide with advanced FA systems and mechatronics.” We will also strive to further improve our performance by working to expand product lineup, create new business opportunities, carry out fundamental cost reform, and strengthen and develop human resources.

I would like to express my sincerest appreciation to all of our shareholders for their continued support and understanding.

February 2018

President and Representative Director
Kenji Susukida

Chairman and Representative Director
Hiroo Honma