Presentation Transcripts

Latest Update : May 20, 2010

Back to Financial Results (FY3/2010)

Investor Meeting Presentation for FY 3/2010 held on May 7, 2010

Table of Contents

We assume that the global economy will be at 80% capacity in the first year (this fiscal year), 90% the second year, and 100% the third year. While some people may say it's at 100% capacity now, some of the indicators I noted earlier suggest otherwise. The aircraft market has just started to bounce back. The office automation equipment industry has yet to fully recover. The luxury car market has in no way regained the strength it had before the collapse of Lehman Brothers. All this points to an overall economy that is still running at only 80% capacity. Since our business encompasses a number of different industries, including ball bearings, etc. our macroeconomic assumptions reflect overall economic conditions.

The highlight of our medium-term business plan entails a rather aggressive capital investment plan, spending 93 billion yen over the next three years. As you can see from this graph, we are aiming for an operating margin of 9% this year, 10% next year, and 10% again in the third year with 400 billion yen in sales and 40 billion yen in operating income. While this may seem too conservative or too far below the targets we are aiming for this year, I believe it is a good place to start.

59page (total 67pages)

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