annual select 2020 nagano keiki co., ltd. · u.s. / china trade friction made the outlook...

For the Fiscal Year Ended March 31, 2020

Annual Select® 2020

NAGANO KEIKI CO., LTD.

1-30-4 Higashimagome, Ohta-ku, Tokyo, Japan

(Securities Code: 7715)

+81-3-3776-5311

Corporate Profile

Our goal as a company is to deliver safety, security and trust The history of NAGANO KEIKI CO., LTD. (“Nagano Keiki”) is also the history of pressure measurement technology. Since starting operations in 1896, and being incorporated in 1948, Nagano Keiki has defined itself as a “technology-oriented company.” As the leading company in pressure gauges and pressure sensors, building on our customers’ deep trust in our quality and performance, we have continued to expand our product line-up from pressure measurement to measurement & control technologies in response to the development of increasingly intelligent industrial equipment.

In our mid-term business plan that started in the fiscal year ending March 31, 2021 (FY2020), we set our management vision as “Achieve continuing growth through enhancing profitability and business structural reform based on safety, security and trust.” We also set our basic policies (four growth strategies) to be: (1) strengthen the competitiveness of existing businesses, (2) strengthen global strategy, (3) expand new business areas, and (4) strengthen the management foundation. We are all striving to deliver on these growth strategies with the aim of further expanding our business and increasing our corporate value.

Corporate Philosophy

World-class expertise rising to the challenge President and Representative Director

Masatsugu Sato

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I. Summary of Selected Financial Data (Consolidated)

94th fiscal year 95th fiscal year 96th fiscal year 97th fiscal year 98th fiscal year

From April 1, 2015 to March 31, 2016





Net sales (Thousands of yen)

44,949,093 44,199,287 50,448,356 52,059,635 49,067,079

Ordinary profit (Thousands of yen)

2,077,240 1,921,544 3,599,510 2,859,943 2,256,472

Profit attributable to owners of parent

(Thousands of yen) 1,319,101 1,331,891 2,818,502 1,902,327 1,587,280

Comprehensive income (loss) (Thousands of yen)

(287,218) 2,078,711 3,865,086 1,002,524 789,085

Net assets (Thousands of yen)

18,262,230 19,936,281 23,565,348 24,028,696 24,289,807

Total assets (Thousands of yen)

42,327,523 44,809,143 47,414,950 46,241,403 46,666,045

Net assets per share (Yen)

926.17 1,005.98 1,182.42 1,203.50 1,223.72

Basic earnings per share (Yen)

74.80 68.70 145.38 98.12 82.18

Diluted earnings per share (Yen)

– – – – –

Equity ratio (%)

42.4 43.5 48.3 50.5 50.5

Return on equity (ROE) (%)

7.6 7.1 13.3 8.2 6.8

Price earnings ratio (PER) (Times)

8.6 10.4 8.3 8.2 9.8

Net cash provided by (used in) operating activities

(Thousands of yen) 2,599,678 2,717,295 2,574,921 2,873,528 3,780,754

Net cash provided by (used in) investing activities

(Thousands of yen) (1,031,148) (960,934) (1,147,802) (1,893,490) (2,654,538)

Net cash provided by (used in) financing activities

(Thousands of yen) (411,585) (1,702,805) (1,659,391) (1,072,594) 190,886

Cash and cash equivalents at end of period

(Thousands of yen) 4,927,454 4,910,730 4,711,458 4,560,596 5,811,794

Number of employees [Separately, average number of temporary employees]

(Persons)

2,059 [223]

1,997 [209]

2,066 [231]

2,139 [229]

2,259 [221]

Notes: 1. Net sales do not include consumption taxes (meaning consumption tax and local consumption tax. The same shall apply hereinafter).

2. Diluted earnings per share is not presented because no potential shares exist. 3. The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) and

relevant Guidances have been applied from the beginning of the 97th fiscal year. Accordingly, the figures for the 96th fiscal year have been adjusted retroactively.

4. The Company introduced a share-based remuneration plan in the fiscal year ended March 31, 2020, and the Company’s shares held by Sumitomo Mitsui Trust Bank, Limited as trust property are recorded as treasury shares in the consolidated financial statements. Accordingly, in calculating basic earnings per share, the Company’s shares owned by the trust are included in the number of treasury shares deducted from the average number of outstanding ordinary shares during period.

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II. Results of the Fiscal Year Ended March 31, 2020 and Outlook for the Fiscal Year Ending March 31, 2021

Business Environment for the Nagano Keiki Group

With regard to the global economy in the fiscal year ended March 31, 2020 (FY2019), a moderate economic expansion centered on developed countries had been underway, however the prolonging of the U.S. / China trade friction made the outlook uncertain. Furthermore, the global spread of the coronavirus (COVID-19), active since the beginning of the year, sharply slowed economic activity. In the United States, a favorable employment environment had supported personal consumption, however, growth in exports was sluggish due to the impact of the U.S. / China trade friction and capital investment slowed due to a slump in the manufacturing industry. In Europe, exports were weak and capital investment remained subdued. In China, the economy slowed down due to the reduction in exports as a result of the U.S. / China trade friction.

As for the Japanese economy, the spread of COVID-19 has sharply slowed economic activity and the situation is increasingly uncertain.

Conditions at the Nagano Keiki Group

In the Nagano Keiki Group, a subsidiary in Europe, which became a part of the U.S. subsidiary in April 2019, contributed to an increase in sales. However, demand declined for pressure gauges and pressure sensors for the industrial machinery & process industries, the FA pneumatic equipment industry, the air-conditioning and semi-conductor industries, after a strong performance in the fiscal year ended March 31, 2019. Demand also declined for die-cast equipment for which the main customers are in the automotive industry. As a result, net sales was ¥49,067 million (down 5.7% year on year). With regard to profits and losses, due to the impact of a decrease in net sales, operating profit was ¥2,306 million (down 21.4% year on year), ordinary profit was ¥2,256 million (down 21.1% year on year), and profit attributable to owners of parent was ¥1,587 million (down 16.6% year on year).

The impact of the spread of COVID-19 on the operating results for the FY2019 is insignificant.

Net sales (Unit: Millions of yen)

Operating profit (Unit: Millions of yen)

Profit attributable to owners of parent

(Unit: Millions of yen)

44,199

50,448 52,059 49,067

0

10,000

20,000

30,000

40,000

50,000

60,000

95th fiscal year(FY2016)




1,850

3,401

2,932

2,306

0

1,000

2,000

3,000

4,000





1,331

2,818

1,902

1,587

0

1,000

2,000

3,000





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Earnings Outlook for the Fiscal Year Ending March 31, 2021

In the pressure gauge business, we forecast higher sales in the industrial machinery, process, FA, and semiconductor industries.

In the pressure sensor business, we project higher sales in products for the industrial machinery industry, the process industry, and the semiconductor industry. In volume products, we expect lower sales in automotive pressure sensors but higher sales in products for the construction machinery industry.

In the measurement & control equipment business, we project increases in sales for air leakage testers used in the automotive and electronic components industries, and pneumatic equipment for FA.

In the die-cast business, we forecast higher sales of die-cast products for the automotive industry.

In other businesses, we forecast steady sales of automotive electrical components to continue.

Amid these conditions, for the Nagano Keiki Group to continue its continuing growth and to increase its corporate value, we aim to achieve plans by profit increase, higher investment efficiency, and enhancing our financial foundation.

In our consolidated earnings outlook for FY2020, we anticipate net sales of ¥52,000 million, operating profit of ¥2,580 million, ordinary profit of ¥2,490 million, and profit attributable to owners of parent of ¥1,760 million.

The assumed foreign exchange rates in our earnings outlook are ¥105 to the U.S. dollar and ¥117 to the euro.

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Our Mid-term Business Plan

The Nagano Keiki Group has formulated a new mid-term business plan that started in FY2020 with a view to enhancing our corporate value over the mid- to long-term in the rapidly changing business environment.

Management vision

Our goal is to achieve continuing growth through enhancing profitability and business structural reform based on safety, security and trust.

Key measures and issues to be addressed

The four growth strategies in the mid-term business plan

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III. Principal Products

Pressure gauge-related products

In addition to general pressure gauges, there are various

pressure gauge-related products such as duplex pressure

gauges, low differential pressure gauges, and differential

pressure gauges. These gauges measure the pressure by

detecting deformation of pressure sensing element inside

such as Bourdon tube, magnifying and converting the

deformation to rotational motion of pointer using gear

system. The pressure value is displayed by the pointer on

the dial. These gauges have a broad range of applications,

for its simple structure and needlessness of electricity.

Pressure sensors / Pressure control devices

Pressure sensors include pressure transmitters and digital

pressure gauges. Pressure-sensing element is deformed by

receiving pressure. Then, electronic resistance or

capacitance of the sensing element changes accordingly.

This change can be pulled out as voltage or current signal

and transmitted via cable to a remote location. As pressure

can be controlled by processing these transmitted signals

on a computer, these sensors are expected to have a wide

range of applications, including the use in advanced

machineries and equipment to which pressure is applied.

Global Network of the NAGANO KEIKI Group

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IV. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Thousands of yen)

As of March 31, 2019 As of March 31, 2020

Assets Current assets

Cash and deposits 5,610,668 6,822,817 Notes and accounts receivable - trade 9,104,670 8,941,960 Electronically recorded monetary claims - operating 1,692,153 1,098,066

Merchandise and finished goods 5,346,045 5,246,382 Work in process 2,540,477 2,841,124 Raw materials and supplies 1,870,410 2,321,206 Other 804,453 680,116 Allowance for doubtful accounts (185,820) (203,938) Total current assets 26,783,058 27,747,735

Non-current assets Property, plant and equipment

Buildings and structures 10,946,179 11,009,650 Accumulated depreciation (8,663,357) (8,748,495) Buildings and structures, net 2,282,822 2,261,154

Machinery, equipment and vehicles 19,598,604 20,255,305 Accumulated depreciation (16,995,507) (17,372,282) Machinery, equipment and vehicles, net 2,603,096 2,883,022

Land 4,366,134 4,356,724 Leased assets 938,964 995,476

Accumulated depreciation (478,880) (602,439) Leased assets, net 460,084 393,036

Construction in progress 618,982 527,409 Other 4,241,680 4,437,347

Accumulated depreciation (3,952,677) (4,111,157) Other, net 289,002 326,190

Total property, plant and equipment 10,620,123 10,747,538 Intangible assets

Goodwill 148,123 137,041 Leased assets 105,499 61,470 Other 532,547 842,516 Total intangible assets 786,169 1,041,028

Investments and other assets Investment securities 6,494,127 5,743,863 Retirement benefit asset 49,414 24,368 Deferred tax assets 458,859 507,010 Other 1,117,921 1,102,493 Allowance for doubtful accounts (68,271) (247,992) Total investments and other assets 8,052,051 7,129,743

Total non-current assets 19,458,344 18,918,310 Total assets 46,241,403 46,666,045

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(Thousands of yen)

As of March 31, 2019 As of March 31, 2020

Liabilities Current liabilities

Notes and accounts payable - trade 4,121,711 3,706,806 Short-term borrowings 5,392,875 5,862,295 Current portion of long-term borrowings 3,190,933 1,192,227 Lease obligations 181,018 184,938 Income taxes payable 544,100 479,525 Provision for bonuses 1,025,113 861,337 Other 2,041,748 1,981,418 Total current liabilities 16,497,502 14,268,550

Non-current liabilities Long-term borrowings 1,965,118 4,292,463 Lease obligations 430,859 333,506 Deferred tax liabilities 664,291 503,037 Provision for retirement benefits for directors (and other officers) 183,865 95,564

Provision for share-based remuneration – 12,755 Retirement benefit liability 2,322,424 2,668,470 Asset retirement obligations 32,949 32,949 Other 115,695 168,941 Total non-current liabilities 5,715,204 8,107,687

Total liabilities 22,212,706 22,376,238 Net assets

Shareholders’ equity Share capital 4,380,126 4,380,126 Capital surplus 4,448,737 4,451,407 Retained earnings 13,218,206 14,378,639 Treasury shares (27,338) (126,569) Total shareholders’ equity 22,019,731 23,083,603

Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,628,677 2,126,278

Foreign currency translation adjustment (796,404) (992,255) Remeasurements of defined benefit plans (519,582) (664,748) Total accumulated other comprehensive income 1,312,690 469,275

Non-controlling interests 696,274 736,928 Total net assets 24,028,696 24,289,807

Total liabilities and net assets 46,241,403 46,666,045

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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income (Thousands of yen)

Fiscal year ended March 31, 2019


Net sales 52,059,635 49,067,079 Cost of sales 37,608,833 34,877,696 Gross profit 14,450,801 14,189,382 Selling, general and administrative expenses

Packing expenses and haulage expenses 640,810 578,958 Salaries and allowance 4,100,929 4,180,529 Welfare expenses 1,034,847 1,064,928 Provision for bonuses 271,046 205,375 Retirement benefit expenses 125,072 125,075 Provision for retirement benefits for directors (and other officers) 33,466 22,176

Provision of allowance for doubtful accounts 13,785 176,338 Depreciation 345,143 429,342 Research and development expenses 1,429,553 1,322,912 Other 3,523,908 3,777,556 Total selling, general and administrative expenses 11,518,564 11,883,196

Operating profit 2,932,237 2,306,186 Non-operating income

Interest income 30,829 25,162 Dividend income 111,585 141,356 Rental income 18,839 7,238 Share of profit of entities accounted for using equity method 127,393 75,429

Other 130,087 182,330 Total non-operating income 418,736 431,517

Non-operating expenses Interest expenses 225,213 242,078 Loss on sales of notes receivable - trade 55,097 54,540 Commission expenses 10,363 8,998 Foreign exchange losses 114,912 104,577 Other 85,442 71,036 Total non-operating expenses 491,030 481,231

Ordinary profit 2,859,943 2,256,472 Extraordinary income

Gain on sales of non-current assets 37,063 5,993 Gain on sales of investment securities 1,222 – Total extraordinary income 38,286 5,993

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(Thousands of yen)



Extraordinary losses Loss on sales of non-current assets 73 1,037 Loss on retirement of non-current assets 29,683 15,512 Impairment loss 108,964 – Total extraordinary losses 138,722 16,550

Profit before income taxes 2,759,507 2,245,915 Income taxes - current 691,133 646,591 Income taxes - deferred 93,011 (34,639) Total income taxes 784,145 611,951 Profit 1,975,362 1,633,963 Profit attributable to non-controlling interests 73,035 46,683 Profit attributable to owners of parent 1,902,327 1,587,280

- 11 -

Consolidated Statements of Comprehensive Income (Thousands of yen)



Profit 1,975,362 1,633,963 Other comprehensive income

Valuation difference on available-for-sale securities (536,765) (503,519) Foreign currency translation adjustment (332,895) (167,552) Remeasurements of defined benefit plans, net of tax (59,310) (145,165) Share of other comprehensive income of entities accounted for using equity method (43,865) (28,640)

Total other comprehensive income (972,837) (844,877) Comprehensive income 1,002,524 789,085 Comprehensive income attributable to

Comprehensive income attributable to owners of parent 932,431 738,398

Comprehensive income attributable to non-controlling interests 70,093 50,687

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(3) Consolidated Statements of Changes in Equity

Fiscal year ended March 31, 2019 (Thousands of yen)

Shareholders’ equity

Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity

Balance at beginning of period 4,380,126 4,448,737 11,839,340 (27,081) 20,641,123

Changes during period

Dividends of surplus (523,460) (523,460)

Profit attributable to owners of parent 1,902,327 1,902,327

Purchase of treasury shares (257) (257)

Net changes in items other than shareholders’ equity

Total changes during period – – 1,378,866 (257) 1,378,608

Balance at end of period 4,380,126 4,448,737 13,218,206 (27,338) 22,019,731

Accumulated other comprehensive income

Non-controlling interests Total net assets

Valuation difference on

available-for-sale securities

Foreign currency translation adjustment

Remeasurements of defined

benefit plans

Total accumulated

other comprehensive

income Balance at beginning of period 3,165,038 (421,763) (460,271) 2,283,002 641,222 23,565,348


Dividends of surplus (523,460)

Profit attributable to owners of parent 1,902,327

Purchase of treasury shares (257)


(536,360) (374,640) (59,310) (970,312) 55,052 (915,260)

Total changes during period (536,360) (374,640) (59,310) (970,312) 55,052 463,348

Balance at end of period 2,628,677 (796,404) (519,582) 1,312,690 696,274 24,028,696

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Fiscal year ended March 31, 2020 (Thousands of yen)

Shareholders’ equity

Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity

Balance at beginning of period 4,380,126 4,448,737 13,218,206 (27,338) 22,019,731


Dividends of surplus (426,847) (426,847)

Profit attributable to owners of parent 1,587,280 1,587,280

Purchase of treasury shares (117,170) (117,170)

Disposal of treasury shares 2,670 17,940 20,610


Total changes during period – 2,670 1,160,432 (99,230) 1,063,871

Balance at end of period 4,380,126 4,451,407 14,378,639 (126,569) 23,083,603

Accumulated other comprehensive income

Non-controlling interests Total net assets

Valuation difference on

available-for-sale securities

Foreign currency translation adjustment

Remeasurements of defined

benefit plans

Total accumulated

other comprehensive

income Balance at beginning of period 2,628,677 (796,404) (519,582) 1,312,690 696,274 24,028,696


Dividends of surplus (426,847)

Profit attributable to owners of parent 1,587,280

Purchase of treasury shares (117,170)

Disposal of treasury shares 20,610


(502,398) (195,850) (145,165) (843,414) 40,654 (802,760)

Total changes during period (502,398) (195,850) (145,165) (843,414) 40,654 261,111

Balance at end of period 2,126,278 (992,255) (664,748) 469,275 736,928 24,289,807

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(4) Consolidated Statements of Cash Flows (Thousands of yen)



Cash flows from operating activities Profit before income taxes 2,759,507 2,245,915 Depreciation 1,213,913 1,319,204 Impairment loss 108,964 – Increase (decrease) in allowance for doubtful accounts (23,253) 187,498

Increase (decrease) in provision for bonuses (124,867) (160,042) Increase (decrease) in retirement benefit liability (43,071) 390,554 Interest and dividend income (142,415) (166,518) Interest expenses 225,213 242,078 Loss on sales of notes receivable - trade 55,097 54,540 Share of loss (profit) of entities accounted for using equity method (127,393) (75,429)

Loss (gain) on sales of investment securities (1,222) – Decrease (increase) in trade receivables 1,085,748 1,175,275 Decrease (increase) in inventories (788,171) 34,883 Increase (decrease) in trade payables (846,380) (573,701) Increase (decrease) in accrued consumption taxes (64,440) 175,469 Other, net 98,212 (306,828) Subtotal 3,385,441 4,542,898 Interest and dividends received 390,632 215,964 Interest paid (224,677) (242,416) Payments for sales of notes receivable - trade (57,168) (53,907) Income taxes paid (620,699) (681,785) Net cash provided by (used in) operating activities 2,873,528 3,780,754

Cash flows from investing activities Payments into time deposits (617,776) (916,950) Proceeds from withdrawal of time deposits 548,017 955,999 Purchase of property, plant and equipment (1,381,280) (1,373,297) Proceeds from sales of property, plant and equipment 60,035 7,216 Purchase of investment securities (8,349) (8,783) Proceeds from sales of investment securities 3,849 – Purchase of shares of subsidiaries resulting in change in scope of consolidation (389,339) (1,284,729)

Collection of long-term loans receivable 44,710 43,560 Other, net (153,356) (77,552) Net cash provided by (used in) investing activities (1,893,490) (2,654,538)

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(Thousands of yen)



Cash flows from financing activities Net increase (decrease) in short-term borrowings 56,048 479,122 Proceeds from long-term borrowings 1,507,000 1,860,000 Repayments of long-term borrowings (1,962,866) (1,458,159) Purchase of treasury shares (257) (117,170) Dividends paid (524,064) (426,998) Dividends paid to non-controlling interests (15,041) (10,033) Other, net (133,411) (135,875) Net cash provided by (used in) financing activities (1,072,594) 190,886

Effect of exchange rate change on cash and cash equivalents (58,306) (65,904)

Net increase (decrease) in cash and cash equivalents (150,861) 1,251,197 Cash and cash equivalents at beginning of period 4,711,458 4,560,596 Cash and cash equivalents at end of period 4,560,596 5,811,794

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V. Company History

December 1948 Established as Nagano Keiki Seisakusho Co., Ltd. when predecessor Tokyo Keiki Seisakusho Co., Ltd. was liquidated and split into the Company and Tokyo Keiki Seizosho Co., Ltd. (now TOKYO KEIKI INC.). Nagano Keiki Seisakusho Co., Ltd. established its headquarters and factory in Komoro Town in Kitasaku County in Nagano Prefecture (present day Komoro City, Nagano Prefecture) and began operation with capital of ¥5 million

December 1966 Completed third stage construction of the Ueda Measurement Instrument Plant in Nagano Prefecture’s Ueda City and moved company headquarters

June 1976 Company headquarters moved to Higashimagome, Ohta-ku, Tokyo November 1988 Signed pressure sensor technology and marketing agreement with Dresser Industries Inc. of

the United States March 1989 Completed first stage construction of the Maruko Electronic Instrument Plant and began

full-fledged production of pressure sensors in Maruko Town in Chiisagata County in Nagano Prefecture (present day Mitakedo, Ueda City, Nagano Prefecture)

Established KOREA NAGANO CO., LTD., as a joint venture for the production and sale of pressure gauges and thermometers

March 1991 Established DRESSER-NAGANO, LTD., as a joint venture with United States’ Dresser Inc. and began production of silicon capacitance sensors

February 1995 Ueda Measurement Instrument Plant and Maruko Electronic Instrument Plant obtained ISO 9001 certification from the Japan Quality Assurance Organization

September 1996 Ueda Measurement Instrument Plant was named Designated Manufacturing Business Operator for aneroid pressure gauges

October 1996 Signed technology transfer and licensing agreement with United States’ Delco Electronics Corporation (now Delphi Automotive Systems) for high-pressure sensing technology

July 1997 Changed company name to NAGANO KEIKI CO., LTD. September 1998 Signed technology transfer and licensing agreement with Germany’s Robert Bosch GmbH

for high-pressure sensing technology December 1998 Stock registered on over-the-counter market of the Japan Securities Dealers Association November 2000 Ueda Measurement Instrument Plant and Maruko Electronic Instrument Plant obtained ISO

14001 certification from the Japan Gas Appliances Inspection Association April 2003 Acquired all shares of FUKUDA CO., LTD., and began full-scale production of flow

control devices (mainly air leakage testers) December 2004 Canceled OTC registration with Japan Securities Dealers Association and listed stock on

JASDAQ Securities Exchange February 2005 Listed on Second Section of Tokyo Stock Exchange May 2006 Established Nagano Keiki Solutions Support Center (NSSC) in Sachsen, Germany Acquired all shares of Ashcroft Holdings, Inc., and promoted developing global business in

pressure gauges and pressure sensors Changed name of Ashcroft Holdings, Inc. to AN Holdings, Inc., effective May 30 April 2007 Upgraded to First Section of Tokyo Stock Exchange Changed name of AN Holdings, Inc. to Ashcroft-Nagano Keiki Holdings, Inc., effective

April 25 February 2008 Took equity stake in S3C, Inc., to promote development of pressure sensors April 2008 Acquired all shares of New-Era Co., Ltd., to promote early commercialization of

measurement & control equipment and development of new markets June 2009 Established New-Era International Co., Ltd., as Thai subsidiary of New-Era Co., Ltd. November 2013 Signed agreement with Germany’s Elmos Semiconductor AG and Silicon Microstructures,

Inc. of the United States on business alliance for joint development and provision of ASIC and MEMS type pressure sensor elements

July 2014 Established joint venture, JADE Sensortechnik GmbH, with Germany’s Intelligente Sensorsysteme Dresden GmbH

April 2017 Established The Silicon Valley Office in California, the United States

- 17 -

July 2017 Made FUTABA SOKKI CO., LTD. a subsidiary March 2018 Liquidated S3C, Inc. January 2019 Made NAKAMURA-KANAGATA LTD. a subsidiary April 2019 Ashcroft Instruments GmbH acquired all shares of Rueger Holding S.A. and Stiko

Meetapparatenfabriek B.V. to strengthen the thermometer-related business and promote and development of new markets

December 2019 Ashcroft Instruments GmbH established Ashcroft Instruments S.R.L. in Italy

- 18 -

VI. Company Information

Company Information (as of March 31, 2020)

Trade name: NAGANO KEIKI CO., LTD. Established: December 1948 Listed: December 2004 Business year: From April 1 to March 31 Paid-in capital: 4,380 million yen Number of employees: 2,259 (including temporary employees; on a consolidated basis) Head office: 1-30-4 Higashimagome, Ohta-ku, Tokyo, Japan Telephone: +81-3-3776-5311 Consolidated subsidiaries: New-Era Co., Ltd.

FUKUDA CO., LTD. Nagano Hanyo Keiki Mfg. Co., Ltd. Nagano Co., Ltd. NAGANO KEISO CO., LTD. Yoshitomi-Mahshin, Co., Ltd. FUTABA SOKKI CO., LTD. NAKAMURA-KANAGATA CO., LTD. Epoch Nagano, Co., Ltd. Sun Cast Co., Ltd. Ashcroft-Nagano Keiki Holdings, Inc. Willy Instrumentos de Medicao e Controle Ltda. Ashcroft Instruments (Suzhou) Co., Ltd. JADE Sensortechnik GmbH Other sixteen (16) companies

Directors and Audit & Supervisory Board Members (as of June 26, 2020)

Chairman and Representative Director Shigeo Yoda President and Representative Director Masatsugu Sato Managing Director Sanji Hirai Managing Director Toshie Yajima Director Kazuya Yamagishi Director Hiroshi Nagasaka Director Norio Kakuryu Director Junichiro Onozawa Director Toyoshige Kobayashi Director* Masanori Suzuki Director* Yoshiyuki Terashima Audit & Supervisory Board Member (Standing) Zenji Imai Audit & Supervisory Board Member (Standing) Mamoru Odanaka Audit & Supervisory Board Member** Hideaki Saito Audit & Supervisory Board Member** Hirotoshi Mizusawa

* Outside Director ** Outside Audit & Supervisory Board Member

- 19 -

Stock Status (as of March 31, 2020)

Total number of authorized shares: 54,840,000 shares Total number of issued shares: 19,432,984 shares Number of shareholders: 4,549 Major shareholders (Top 10)

Shareholder name Number of shares held (Thousands)

Share-holding ratio (excluding treasury

shares) (%) AIR WATER INC. 1,402 7.22 Nagano Keiki Business Partners Shareholders’ Association 1,288 6.64 The Hachijuni Bank, Ltd. 842 4.34 Japan Trustee Services Bank, Ltd. (Trust Account) 803 4.14 TAIYO NIPPON SANSO CORPORATION 700 3.61 The Master Trust Bank of Japan, Ltd. (Trust Account) 682 3.52 Shigeru Miyashita 578 2.98 NIDEC SANKYO CORPORATION 521 2.68 Hachijuni Capital Co., Ltd. 505 2.60 Naoki Toya 501 2.58

Note: In addition to the above, there are 16,019 treasury shares. The treasury shares do not include the Company’s shares owned by the Sumitomo Mitsui Trust Bank,

Limited (170,000 shares) based on the “share-based remuneration plan.”

* Annual Select is an English-language disclosure format developed by ZAIHON, INC. to increase the level of convenience of investors outside Japan based on Japanese-language statutory disclosure material, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material. Annual Select is a registered trademark of ZAIHON, INC. Reproduction or copying without prior permission is prohibited.

* While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company does not guarantee it is 100% accurate. Therefore, please verify the original Japanese text for any final judgments made based on this information.

annual select 2020 nagano keiki co., ltd. · u.s. / china trade friction made the outlook...

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