Mid-term Business Strategy

< Measures & Targets >

Target	- Min. 15% reduction over 3 years
	- 50% reduction of the number of suppliers

2. Promotion of SACC activities

(Strategic Approach for Cost Competitiveness) - Aiming for world-class competitiveness per product - Automotive bearings and components Horizontal deployment to other products

3. Promotion of global procurement

- Procurement from the region with the lowest overall costs -

• Establishment of a supply base in Asia
• Utilization of the overseas plant of other Japanese manufacturers
• Development of local manufacturers

 In addition to the reorganization of production sites, we are going to review our procurement and employment & human resource systems.
 For the machining and procurement processes, we have set the following three targets:
 The first is to halve the number of our suppliers, and to reduce procurement costs by at least 15% by the year ending March 2005.
 Our second target is to achieve the goals set for our SACC activities.
 The third is to promote global procurement and promote the use of materials and parts procured from overseas. As an example of these activities, we are considering establishing a procurement base in China and promoting the export of machined bearing parts to Japan and the U.S.
(Note: Machining processes refer to all processes preceding heat treatment.)