Securing Growth and Improved Profitability From FY 2004

 China will play a key role in determining whether or not we reach our mid-term targets.
Our sales in China in fiscal 2003 grew 30% compared to fiscal 2002, with an increase in sales to the aftermarket, electrical and industrial machinery sectors. We forecast sales to double that of fiscal 2002 in fiscal 2005.
 We will strengthen the presence of our “NSK Brand” in China by filling in demands from the steel, construction machinery and machine tool industries, as well as demand from the rapidly expanding automotive industry.
 Our business concept in China is to establish ourselves not as an “outsider” but as a “local” player, and increase our market share from within the country. In addition to increasing our business capacity using our own capital, we are also considering forming business alliances with local companies. We are also trying to establish a management system that matches local practices and run by local personnel.
 By doing so, we hope to upgrade our operations in China and establish a stable foothold in this market.