NACHI-FUJIKOSHI CORP.

Nachi-Fujikoshi will implement organizational reform aiming to improve efficiency of the domestic business as a group among other objectives, and personnel reshuffling at executive level including transfer to the international business head office.

• Improve efficiency of the domestic business structure as a group
• Nachi-Tokiwa (Tokiwa Sangyo Co., Ltd. in Tokyo - became subsidiary on June 21, 2007), as a trading firm specializing in machinery, has supplied products and services focusing on utilities/facilities to dominant customers such as automobile makers, based on their long-accumulated information and know-how on production systems.
• In order to work effectively as a group by capitalizing on Nachi-Tokiwa’s personnel strength (approximately 70 employees), business bases (10 locations in Japan), information and know-how, the tasks and roles of Nachi-Fujikoshi and Nachi-Tokiwa will be clearly defined. All business contacts will be unified customer by customer. In the future, the necessary number of personnel from Nachi-Fujikoshi will be dispatched to Nachi-Tokiwa (currently 10 staff members) to assist with sales and technical services for promoting Nachi business.
• Reorganization of the East Japan area
• In the Fukushima and Yamagata areas, there are increasing numbers of general industrial machinery plants of potential customers, such as construction machinery, aircraft and printing machinery manufacturers.
• Responding to the present conditions, the Yamagata Sales Office, a new business entity will be established to work with the present Fukushima Sales Office (new name of current Tohoku Sales Office in Koriyama) in order to expand to the potential demands in Fukushima, Yamagata and other Tohoku prefectures.

• The Distribution Department will be established in the Machine & Cutting Tool Division to manage sales and distribution strategies. One of its major tasks is to expand domestic and overseas markets for round tools including drills and end-mills.
• The Product Management Departments will be established in Machine Tool Plant where a product manager shall be allocated for each product, being responsible for overall management. The manager will manage the entire manufacturing process including product strategy planning, business inquiries, product designing and manufacturing, product quality and services, and will work to improve the competitiveness of the product.

Nachi-Fujikoshi Group’s internationalization rate has reached nearly 60% (ratio of overseas sales to domestic sales including indirect export by the customers). Some personnel will be transferred to the International Trade Headquarter in order to increase sales in the overseas markets. (Ten staff members will be transferred this time.)