NACHI-FUJIKOSHI CORP.

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

I am pleased to report that the NACHI-FUJIKOSHI Group’ s business overview for the fiscal year ended November 2014 (from December 1, 2013 to November 30, 2014).

I would like to inform you that the end date of the fiscal period for our overseas subsidiaries has been changed from September 30 to November 30 as of the current consolidated fiscal year. For this reason, the consolidated cumulative period of the fiscal year ended November 2014 is our overseas subsidiaries 14 months, from October 2013 to November 2014.

As for the business environment surrounding the NACHI-FUJIKOSHI Group during the period under review, a gradual recovery is underway in general. Although there were some signs of economic weakness due to the impact of the consumption tax rate increase in Japan and the slowdown in economic growth in emerging economies including China, advanced economies have continued to show signs of recovery, driven by the United States, and automotive production in overseas countries is showing steady increase.

Given this environment, the NACHI-FUJIKOSHI Group has been making full use of its strength as a comprehensive machinery manufacturer encompassing the cutting tools, machine tools, robots, bearings, hydraulic equipment, and special steel businesses to promote initiatives to find new customers, mainly new users in overseas countries, to deploy new products, and to expand the existing product range, as well as changing the fiscal term of our overseas subsidiaries as of the first quarter. As a result, sales in the current consolidated fiscal year reached 218.2 billion yen, up 24.2% over the previous period. Of this, sales in the Japanese market were 118.4 billion yen, up 12.0% over the previous period, while overseas sales totaled 99.7 billion yen, up 42.6%.

In terms of profitability, with the success of the total cost reduction effort, such as improvement of operation capacity and productivity, operating income totaled 18.5 billion yen, up 50.5% over the same period of the previous fiscal year, ordinary income 18.4 billion, up 57.5%, and net income 9.9 billion yen, up 48.1%.

The NACHI-FUJIKOSHI Group considers redistribution of profits to our shareholders as one of the most important tasks, and our basic policy is to provide stable dividends based on the comprehensive consideration on consolidated operating results and dividend payout ratio. The internal reserves will be allocated to the future business development and strengthening of financial structure.

With regard to the fiscal year-end dividend, based on the above policy and taking into account the operating results of this fiscal year, it has been decided that 8 yen in dividends would be paid per share, an increase of 2 yen per share over the previous period, to show our appreciation to the support from our shareholders.

As for the future outlook, although there is a concern that the economy in Japan is slowing down, it is expected that the demand in the automotive, industrial machinery, construction machinery, and aircraft sectors will increase in the mid to long-term period, mainly in the North American and emerging markets, which will contribute to a steady growth in general.

The Group will place our focus on the volume zones inside and outside Japan to enhance sales/service framework and expand our merchandise and product range, while strengthening procurement framework, and reducing costs by innovation of production line.

The company will work to improve operating results and secure a stable profit structure with the purpose of fulfilling our Long-Term Vision and the Mid-Term Business Plan 2016 that was formulated in January 2014.

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