II. Forecasts For The Year Ending March 31, 2003

 We are forecasting an operating loss of 2 billion yen in Europe this year. (This figure is the same amount we announced at our Mid-term Business Strategy Conference in February.) Please look at the left hand side of the slide for the breakdown of improvements from the previous term. We are expecting a reduction of SG&A expenses and procurement costs in addition to the 1.6 billion yen improvement resulting from business restructuring activities.

 Looking by product, automotive bearings are expected to return to profits as result of increased local production of EPS systems and improved profitability of our steering columns. Overall, including bearings and precision machinery and parts, we plan to turnaround our European business and expect to see profits by the forth quarter of this year, as can be seen in the bottom right graph.