Securing Growth and Improved Profitability From FY 2004

 During the past few years, we have implemented various reforms such as the business restructuring activities carried out in Japan and Europe. As the result, we have been able to establish a fairly stable foundation for future profit growth.
 In pursuit of our mid-term business goals, we plan to spend 60 billion yen in capital expenditures over the next two years. This is close to current levels of depreciation and amortization, and we plan to carry out investments with due consideration to investment efficiency.
 We believe we have now come to a turning point: The foundations for profit growth have been made. Now it is time to take the offensive, focus our attention on “growth”, and take steps to increase both sales and profits.
 After 88 years of doing business, we acknowledge that the foundation of our operations centers on our core product segment: bearings. We will build on the technological and management expertise acquired through our bearing business, and strengthen our presence in the global market as an “all-round” bearing manufacturer. We will also use these foundation to make our automotive components and precision machinery businesses more profitable and attractive.
 Our new organization will clarify business responsibility, and enable each product division to pursue their mid-term goals more efficiently. And by achieving our mid-term goals, we aim to increase the corporate value of the NSK Group.