NACHI-FUJIKOSHI CORP.

Nachi-Fujikoshi plans to practice its business in the global market making the best out of its unique business model of the multiple and linked system. For this purpose, we will implement changes in the tasks to be carried out by the board directors and personnel reshuffling mainly on the executive level while implementing organizational reform in order to strengthen our overseas sales system.

Upon re-election of the board of directors, the contents of their duties including technical development, management planning, allocation and training of personnel, and procurement will be partially changed. A new director for engineering will be elected to develop the engineering business as a main source of profits for the businesses of Nachi-Fujikoshi group.

• The internationalization ratio of the Nachi-Fujikoshi group has reached nearly 60%. Internationalization ratio refers to the ratio of overseas sales to domestic sales including indirect exports by our customers.
• The International Trade Headquarters will be established to aggressively shift Nachi-Fujikoshi's focusS on the global market. Under the International Trade Headquarters, the International Trade Division I (bearings and hydraulic products), and the International Trade Division II (cutting tools, machine tools, precision products, robots and others) will be established. The 80 members of the new organization will work to expand business in cooperation with the overseas subsidiaries.

In order to effectively implement "business practices (i.e. NACHI-BUSINESS) that take advantage of the strength derived from our multiple, linked businesses," the NACHI-BUSINESS Headquarters will be responsible for global business planning that cuts across the Nachi-Fujikoshi group as well as for controlling the joint strategy that focuses on our global customers.
Under a positive attitude, this new organizational reform will eliminate the present Sales Strategy Headquarters.