Mid-term Business Strategy

 These are the focal points of our business restructuring activities:
 First of all, we will streamline and reorganize our production system through closures and transfers of our production sites and aim to produce at optimum manufacturing bases. Especially in regards to Europe, we will push forward with our move out of the U.K. to continental Europe, as well as continue our withdrawal from unprofitable products.
 As for procurement, we will press-ahead with the establishment of optimum global procurement. In Japan, we are aiming to reduce procurement costs by at least 15% over the next three years.
 Regarding the reduction of labor costs, we will endeavor to reform the salary and employment system of the parent company into a more flexible, competitive system. We are also going forward with measures to reduce surplus workforce in all regions. We are also looking to establish alliances per product category and will accelerate the speed of such decision-making processes.
 Now I will move on and explain the details of our restructuring activities for each region.