News Releases

September 30, 2005

The outline of semiannual settlement for the year ending November 2005,
forecasts for the full year, and future business strategies

Q.Semiannual settlement at May and forecasts for the full year
A.The mid-term financial settlement at May was very good. Sales and profit increased compared to the results in the same term in the previous year and to the initial plan. Because the industrial machine field has a very broad base, our composite and linked type technology was recognized in various markets, and it established a unique position. In the announced forecasts for the full year, we thought risk factors including influence of material inflation a little higher. Though it is a rigid plan, we regard it as a minimum plan to be achieved.
Q.Investment in plant and equipment increased compared to the initial plan
A.Plan of investment in plant and equipment in this term is 13.5 billion yen. For the time being, we will continue to keep the level over 10 billion yen, and in three years by 2007, it seems to increase 30% to about 40 billion yen compared to the plan. Demand for automobile and industrial machine field is larger than expectation, and customers have already announced business plans and investment plans aiming for 2007 and 2008. To meet their need, we have to get stronger.
Q.How to acquire necessary human resources
A.We employ adaptable fighting potential, so-called talented persons at needed time. The number of newly recruited employees with new graduates in this year is 250 persons for the group companies in Japan. We will continue in this pace after next year. We will actively introduce in-house robots to manufacturing processes, not only covering them by manpower. At present, 150 robots are operating in our company. We will increase them at least to 300 units, and to 500 units if we can, to improve productivity and to enhance quality.
Q.Activities in the years after next term
A.In the "Prospect of Nachi Business," the medium term management plan created in the fall of 2003, we set the ordinary profit of 10 billion yen in the fiscal year 2006 as a milestone, but it seems that we can achieve it one year earlier. Based on the fiscal year 2005, we are now discussing the new medium term management plan for the coming five years until the fiscal year 2010, and it will be announced by the end of this year. We are going to aim for the stable profit growth, utilizing the synergy of three divisions, machining, component parts and material.
Q.Plan of return to shareholders and dividend policy
A.We cannot increase or decrease dividend levels by the fluctuation of profits. Mr. Bubka, a pole vaulter of athletic sports, has renewed world records 35 times by 1cm. Like him, we will steadily make records. We will not take a rest in spite of the largest profit, forge solid footing again, and break down opportunity losses.