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HOME | Investors | Presentation | Financial Conference for the Results of the First Half of Fiscal 2002

Progress report on the 2nd Phase of the
“NSK Business Restructuring Program”

 
 
 Progress summary of the 2nd phase of the “NSK Business Restructuring Program”
 
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  Current status Future developments
1. Domestic wage and employment reforms
·End of Sep. ’02 ¥-6.9 billion
·End of Mar. ’03 ¥-7.6 billion
Achieve the targeted 10% reduction
· Review current wage and employment structure
Reduce ¥10.0 billion in labor costs
2.Reduce external procurement costs
·End of Sep. ’02
 : ¥-1.5 billion
End of Mar. ’03: ¥-4.6 billion (forecast)
·End of Mar. ’05

: ¥15.0 billion (Initial plan)
Reduce further to ¥18.0 billion
Expand cost reduction activities to overseas affiliates and further reduce procurement costs
3.Restructure of European business ·Streamline production bases
 Closure of the Blackburn plant and consolidation of the steering column plants
·Personnel reduction
 End of Jun. ’02: Reduction of 830 employees
 End of Dec. ’02: Reduction of 1,380 employees
Return to profits in FY 2003 through the further reduction of personnel.
4.Reinforcement of business management and profit responsibilities ·Spin off of the steering column and precision machinery and parts business (Oct. ’02)
Transfer of personnel from the parent company to subsidiaries and further reduction of personnel
5.Reorganize domestic production systems
 ·Withdrawal from the CVJ business (Mar. ’03)
·Reorganization of bearings production plants
 NSK Fukushima Jakarta (final phase)
 Ohtsu, Ishibe and Fujisawa plants NSK Fukushima (Complete, except for machining processes)

 In order to speed up the decision making process and increase profitability, NSK Ltd. decided effective October 1, to spin off its precision machinery and steering column businesses into separate corporate entities, allowing each business to make the necessary changes to increase cost competitiveness and thus increase profitability.
 The restructuring of the domestic plants as well as our withdrawal from the CVJ business is proceeding as scheduled. The reorganization of the domestic plants includes transfer of medium-sized ball bearing production from the Fujisawa and Shiga Plants to NSK Fukushima Co. Ltd., transfer of miniature and small-sized bearing production from NSK Fukushima to the Jakarta plant, and production shift of standard ball bearings from Japan to China.
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