
	Investors

	TOP Message

	IR Calendar

	Financial Information

	Presentation

	FAQ

	Cautionary statements

Home | Investors | Financial information | Annual Report 2006

Annual Report 2006

New Mid-term Plan

Departing for the New Decade

To Become No. 1 in Total Quality

To achieve sustainable growth by creating customer value, we will continue to target the improvement of customer satisfaction through an exhaustive commitment to total quality, including not only product quality, but also the quality of all of our services.

Reinforce the Foundation as NSK Moves toward its Centenary
The new mid-term plan launched in the current year (ending March 2007) will be our first step on a 10-year-long path leading to the realization of our vision for NSK in 2016—the centenary year. In the plan, we have two core strategies: growth strategies and profitability enhancement, and we set the four basic policies described below. They will strengthen our operating basis and capability to respond quickly to changes in the business environment. The foundations for these measures are “global recruitment and training of human resources,” “enhancement of our manufacturing capabilities” and “the improvement of global IT systems.”

For NSK, the next three years will be important years for launching the groundwork. We will accept the challenge of using new perspectives and ways of thinking that are different from traditional ones as we move towards the next stage.


Human resources providing the capabilities needed to run our global business operations will be vital to the successful implementation of our policies as we take up the challenge of moving NSK into a new global growth phase. We will revitalize our human assets through global human resource development, and through the utilization of our human resources across multiple regions. At the same time, we will help employees develop the skills and talents needed to support NSK’s future growth by raising the motivation of individual employees and creating energetic work environments.	The creation of quality products is the most fundamental mission of a manufacturer. We must remain focused on this mission and work constantly to improve quality in the context of our day-to-day activities. At our production sites, we use “manufacturing centers” to pass on and improve manufacturing skills. In the marketing and administrative areas, we are implementing operational innovations designed to optimize our manufacturing capabilities. All of these initiatives are integrated into group-wide production innovation efforts aimed at further optimization of our quality manufacturing.	Information infrastructure is essential to our business activities, and we need to develop infrastructure that matches the global scale of our operations and changes in our business environment. We plan to upgrade the key systems in Japan, the Americas, Europe and Asia to support further progress toward globally integrated management of production, sales, technology and administration. Our aim is to improve operational efficiency and speed up decision-making. This sophistication will result in the evolution of information infrastructure capable of supporting growth and adapting flexibly to future changes.

(¥ Billions)

	06/3 (Actual)	09/3 (Target)	Percent change
Net sales	628.5	740.0	+17.7%
Operating income	42.6	74.0	+73.7%
Operating income margin	6.8%	10.0%	-
ROE	12.1%	15.0%	-
Net interest-bearing debts	171.1	109.0	(62.1)
Net D/E ratio (times)	0.73	0.40	-

The “NEXT 10”

In the previous mid-term plan (FY2003–FY2005), NSK shifted its core policies from business restructuring to growth, and the results will lead NSK to a new stage of further growth. In considering where NSK should be at this milestone, new perspectives on how we should work to realize that vision over the 10 years leading up to our 100th anniversary will be required. Through “NEXT 10,” we will build a foundation to become a company capable of maintaining sustainable growth.


Copyright 2000 - NSK Ltd. All rights reserved.		Term of use