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Home | Investors | Financial information | Annual Report 2006

Annual Report 2006

New Mid-term Plan

Basic Policies

Reinforcement of Manufacturing Capability

Implement quality innovation driven by collaboration across the entire NSK organization

The reinforcement of manufacturing capability is essential as a manufacturer and will drive growth linked to improved earnings. We will approach this task through collaboration among all units of our organization, leading to quality innovation based on production, operational and procurement innovations.

Promote awareness of problems and improve front-line capabilities

Strengthen production technology
Train highly skilled production
workers
Expand maintenance activities

Increase capacity in existing facilities
Stabilize processing capabilities

Improve supply chain management

Qualitatively improve operations through streamlining of information flow and standardization of operations
Strengthen management capabilities of headquarters

Shorten lead times
Improve inventory turnover

Strengthen profit center functions

Build stronger relationships with
strategic partners
Accelerate global procurement

Continue further cost reductions
Improve procurement stability

Reinforcement of Product Development Capability

Accelerate growth through the introduction of high value-added products

To accelerate NSK’s future growth, developing high value-added products will be the most important leverage. We aim to improve our comprehensive technologies at the basic research, development, design and manufacturing stages, and to accelerate the introduction of new products shaped by prompt, accurate monitoring of market needs. We will also work to develop new technologies, which have the potential of forming the foundation of our future business.

Further strengthen comprehensive
technology, intensify new product development

Contribute to business reinforcement
Implement technology policies to support growth in all business segments
Reinforce global technology structure
Locations of overseas technology centers:
U.S.A., Brazil, U.K., Germany, Poland, China, South Korea, Thailand
Focus on future technological challenges

Reinforcement of Overseas Profitability

Increase the contribution of overseas earnings to group performance

NSK has aggressively expanded overseas and currently has over 150 business operations in 27 countries. Overseas sales are growing and now account for around 50% of total net sales. In the growth of emerging markets and global expansion of automobile manufacturers, we will globally expand our operations and strengthen our profitability, leading to further contribution of overseas earnings to group performance.

The Americas	Continue restructuring of operations in North America, raise presence in industrial machinery bearing market, improve profitability of automotive products
Europe	Expand sales by reinforcing segment marketing, improve financial structure
Asia	China:	Contribute to earnings through improvement and stabilization of start-ups
	ASEAN:	Further expand sales to automobile, motorcycle and aftermarket segments through reinforcement of marketing capabilities

Reinforcement of Global Management Capability

Optimize operational efficiency and accelerate decision making

We will work to optimize operational efficiency and accelerate decision making by
enhancing the organizations and structures that support our global operation, by
developing global human resources, and by strengthening our IT systems. We will
also target further improvement in our systems of corporate governance and internal control.

Reinforce global management structure and collaboration among business headquarters,
functional headquarters and regional headquarters

Enhance corporate government structure and internal control systems
Develop and improve global management infrastructure
- Accelerate deployment, recruitment and training of global human resources
- Enhance global core IT systems
- Develop global operating standards


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