| 702 individuals participated
in the NSK Early Retirement Program, a
program implemented in September. On an
annual basis, this reduction in personnel
will mean a reduction in labor expense
equivalent to ¥5.4 billion. Natural
attrition during the 1st half of FY 2001
will account for an additional reduction
of ¥1.5 billion for a total savings
of ¥6.9 billion.
An additional labor expense reduction
of ¥0.7 billion is expected by the
end of March 2003, mostly from natural
attrition. Therefore, labor reduction
for the full year is expected to total
¥7.6 billion, enabling us to achieve
the targeted 10% reduction in labor costs.
Furthermore, review of the present
wage and employment policies following
the spin-offs of various entities, coupled
with the transfer of employees from the
parent company to subsidiaries and additional
personnel reductions, should enable us
to reduce overall labor expense by the
targeted ¥10.0 billion.
NSK, including the spin-off companies,
was able to reduce external procurement
costs by ¥1.5 billion as of the end
of September 2002. An additional reduction
of ¥1.6 billion is expected in the
bottom half of this fiscal term which
should bring total external procurement
savings of ¥4.6 billion. NSK’s
targeted reduction in external procurement
costs was set at ¥15.0 billion by
the end of March 2005. However, at the
current pace, we have revised this figure
upward to ¥18.0 by the end of March
2005.
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End of Mar. ’03:
¥-4.6 billion
(forecast)