Reviewing the First Year of Our Mid-term Business Plan

 This shows our business strategies that have been implemented over the past few years.
 The global business environment surrounding NSK is rapidly changing, triggering violent fluctuations in demand for our products. Especially in Japan, the hollowing out of industries, contraction of the Japanese market, and continuing deflationary pressures made it impossible to expect a cyclical recovery in demand as we have seen in the past.
 Under these circumstances, we made drastic changes to our business structure to respond to the economic environment and overhauled our profit structure. In line with our “Select and Focus” strategy, we implemented what we refer to as “defensive” measures, such as the closure of domestic production sites, withdrawal from unprofitable businesses, streamlining of our organization, and reduction of fixed costs.
 At the same time, we introduced a business unit system and broke off several of these units into separate corporate entities to increase motivation and efficiency, clarify business and profit responsibility and implement separate strategies that match the characteristics of each product segment. Our organization has become a constitution of streamlined, highly competitive business units.
 We continue to build a stable foundation for growth by simultaneously promoting profitability improvement activities and growth strategies, and focusing on the efficient use of our management resources.