Securing Growth and Improved Profitability From FY 2004

 Our bearing business, NSK’s core business segment, is composed of three major product categories: automotive bearings which include HUB unit bearings and needle bearings; standard ball bearings used in electrical, IT and auxiliary automotive products; and general industrial bearings used by the steel industry, aftermarket, etc. NSK has already established its position as a leading global player in the first two product categories and will further endeavor to strengthen our position in these categories. For example, in fiscal 2003, we made NSK Needle Bearings Co., Ltd. a 100% held subsidiary, commenced production of tapered roller bearings at Timken NSK Bearings (Suzhou) Co., Ltd., a joint venture with The Timken Company of the U.S., reinforced production capacity at Kunshan NSK Co., Ltd., and transferred production of standard ball bearings from the U.K. to NSK Iskra S.A. in Poland.
 We are in the process of strengthening our aftermarket sales efforts. We consider this area to have a large potential for future growth, both in terms of sales volume and profits, and will focus our efforts on this area as an important means for improving the profitability of our overall bearing business.