Management Policy and Strategy March 2011

In the past, the Group has produced a Medium-term Management Plan, but the global economic crisis of two years ago created a need to review performance targets. We are currently producing the Medium-term Management Plan in careful consideration of economic trends.
In the fiscal year ending March 2011, we aim to maximize synergy through a merger between the Company and its two consolidated subsidiaries and enhance corporate value under a basic policy of “establishing overwhelming business competitiveness through the concentration of cross-group synergy and innovation”. The following challenges face the Company as it seeks to realize these goals.

Re-building domestic competitiveness through reform of “production, sales and technology” from a customer perspective
We will utilize the merits of the mergers to the full, strengthening the “production, sales and technology” functions and reforming the corporate structure as we seek new markets and customers. We will launch new products on the market as soon as possible in response to customer needs, such as energy-savings, at the same time as strengthening competitiveness by reducing costs and shortening lead times for products with customized specifications through the reform of design and production processes.

Proactive development of overseas growth markets
We regard China and newly emerging economies in Asia as a priority area and will establish a new Asia Business Unit and strengthen functionality by reorganizing the formation of Chinese and Asian affiliates, at the same time as proactively developing business in areas where growth is expected, including the promotion of a comprehensive marketing strategy.

Expansion of new business fields with a view to growth
We will expand sales by investing in new production facilities in the growth market of batteries. Moreover, we will expand sales and develop new business models in plant factories, which are forecast to see an increase in demand.

Radical reform of the revenue base in order to restore profitability
We will reduce fixed costs and improve the profit structure by concentrating multiple functions and reviewing systems through the merger process, at the same time as accelerating cost-cutting activities and implementing radical reforms of the revenue base.