Reviewing the First Year of Our Mid-term Business Plan

 Looking at the current status of our precision machinery and parts business;
 The sharp decline in sales volume during 2001 and 2002 forced this business into losses. During this period, we implemented measures to reform the profitability structure of this business segment, such as restructuring the employment system, reducing procurement costs, changing production methods, and separating the business unit into a independent corporate entity, to enable quick response to dramatic fluctuations in demand. Although we experienced a six-month delay, we were able to return to profitability in the second half of fiscal 2003.
 Next year, backed by a sharp recovery in demand, we will continue with our efforts to further improve profitability of this business.
 Our current sales estimate for the fourth quarter of fiscal 2003 is 15 billion yen. Multiply this by four and you will get our sales estimate for fiscal 2004, which we consider to be a fairly conservative figure. We expect sales and profits to reach record levels next year, with sales of 60 billion yen and operating income of 7 billion yen, and 65 billion yen and 10 billion respectively in fiscal 2005.