The environment that surrounds us greatly changes every day due to such factors as economic growth in the Asian region, overseas disputes, and fluctuations in exchange rates.

In the machine tool industry, it is expected that positive capital increases will continue because the Japanese automakers who have so far led demand for machine tools are now, diversitying their production bases to Asian countries, including China and the former communist countries.

In addition, overseas automakers are working out their strategies in a similar fashion. It is expected that the enhancement of technological performance and environmental measures will continue in the future, and these factors will lead to further capital investment. In terms of costs, the users continue demanding cost reductions to get lower prices of equipment and machinery. As our strategy for survival under such current circumstances in which demand is increasing while prices become more severe, we have set up our target to increase our sales to 50 billion yen in the fiscal year of 2006, which is a 30% increase over the previous fiscal year.

In addition, it is necessary for us to move ahead at a fast pace to manage such operational concerns as more competitive sales routes, manufacturing, products, quality, prices, and financial capacity.

The basic policy to achieve the acceleration of this management innovation is the "Triple 30."