Corporate Strategy Growth

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					                                                                                                                                                                        Growth
                                                                                                                                                                        Growth



   IV. Balanced Corporate Management:                                                                                (1) Growth Strategy-1                    Profitability
                                                                                                                                                               Profitability
                                                                                                                                                               Efficiency
                                                                                                                                                                Efficiency
                                                                                                                                                                               Soundness
                                                                                                                                                                                Soundness



                                         Victory (VI) and Advance (AD) Growth Strategies

                                                                                     VI Growth Strategy
                                                                                     VI Growth Strategy
                              Productivity and
                              Productivity and                            “Make strong businesses stronger”
                              Quality
                              Quality
  Bolster Corporate Support




                                                         Transportation                                                             Optical
                                                            Systems                           Electric and                     Broadband Access
                                                                              Factory     Electronic Products Satellites            Systems
                              R&D and
                               R&D and                                       Automation
                                                                              Products
                                                                                            for Automobiles

                              IP
                               IP
                                                   Elevators                                                                     Power
                                                 and Escalators                                                              Semiconductors
                              Procurement
                              Procurement                                                                                               Network Security
                                                                                                                                            Systems
                              Marketing and
                              Marketing and                                         AD Growth Strategy
                                                                                    AD Growth Strategy
                              Services
                              Services
                                                       Power
                                                      Systems
                                                                          “Reinforce solutions business
                              Financials
                              Financials                                  centered on strong businesses”                                 Air Conditioning
                                                                                                                                       and Housing Products

                                                                     Global Warming                                         Display
                              Human Resources                           Solutions                                           Display
                                                                                                                           Solutions
                              Human Resources                                                                              Solutions

                                                                                Total Security
   (Unit:
Billion Yen)                         Net Sales
                                     Net Sales                                    Solutions             AdvanCity
 4,200.0                                                                                                Solutions
 4,000.0                   3,855.7
                                        4,050.0
 3,800.0             3,604.1
 3,600.0       3,410.6           4,049.8
 3,400.0 3,309.6
 3,200.0
 3,000.0                                                                                                                                                                         7
           FY03 FY04 FY05 FY06 FY07 FY08
                                                                                                                                                                                                                                                        Growth
                                                                                                                                                                                                                                                        Growth



       IV. Balanced Corporate Management: (1) Growth Strategy-2                                                                                                                                                                              Profitability
                                                                                                                                                                                                                                              Profitability
                                                                                                                                                                                                                                              Efficiency
                                                                                                                                                                                                                                               Efficiency
                                                                                                                                                                                                                                                               Soundness
                                                                                                                                                                                                                                                                Soundness



       Energy Technology                       Media Technology                Display & Imaging
                                                                               Display & Imaging                       Information
                                                                                                                        Information                     Optical & Electrical
                                                                                                                                                        Optical & Electrical                    Communications
                                                                                                                                                                                                Communications              System Technology
       Energy Technology                       Media Technology                   Technology
                                                                                   Technology                          Technology
                                                                                                                        Technology                       Wave Technology
                                                                                                                                                         Wave Technology                          Technology
                                                                                                                                                                                                  Technology                System Technology

        Power Electronics
        Power Electronics                    Electric Technology                    Mechanical
                                                                                    Mechanical                    Device Technology                              Materials
                                                                                                                                                                 Materials                    Sensor Technology
           Technology
           Technology                        Electric Technology                    Technology
                                                                                    Technology                    Device Technology                             Technology
                                                                                                                                                                Technology                    Sensor Technology

        Quality Engineering, EMC (Electro-Magnetic Compatibility) Technology, Simulation Technology, Systemization Technology, Design Technology
        Quality Engineering, EMC (Electro-Magnetic Compatibility) Technology, Simulation Technology, Systemization Technology, Design Technology
                                                      Intellectual Property Rights, Standardization
                                                       Intellectual Property Rights, Standardization

                                                       Technological Synergy                                                                                   Technological Synergy
                                                                                                        VI Growth Strategy
                                                                                                        VI Growth Strategy
        Energy & Electric Systems
        Energy & Electric Systems                         Industrial Automation Systems
                                                           Industrial Automation Systems                  Information & Communication Systems
                                                                                                           Information & Communication Systems                                  Electronic Devices
                                                                                                                                                                                Electronic Devices                                Home Appliances
                                                                                                                                                                                                                                  Home Appliances
• Power Generation Systems • Disaster Prevention     • Programmable                                                                 • Wireless
                                                                              • Alternators/Starters                                                              • Power Devices (IGBT/IPM)                         • Air Conditioners/Heaters/Coolers/Compressors
• Transmission and           Systems                   Logic Controllers/     • ECU/Electric Power       • Satellites/                 Communications
  Distribution Systems     • Large Display Devices                              Steering                  Satellite Communication   • Communications              • High-Frequency and Optical Devices               • Housing products (ventilation, etc.)
                                                       Display Equipment                                   Systems                    Infrastructure Systems        (red LD, Power Amplifiers for mobile Handsets)   ・Solar power generation system
• Transportation           • Elevators and           • Servo Motors/Inverters • Car Audio Systems /
                                                                               Car Navigation Systems    • Radar/Antennas           • Information System          • LCD Panels                                       • Household Equipment
  Systems                    Escalators              • Circuit Breakers                                  • Electronic Systems         Equipment                                                                      • AV Equipment (LCD TVs, DLPs, DVDs)
                                                                                                   …                                                              • Printed Circuit Boards …
• Water Environment Systems• Building Security ...   • EDM/Laser Processing Machine/NC                                              • SI …




               Ozone Generator                                                Car                                               RFID                                                                                       Cold Region                Air to
                                                             MS            Multimedia                         Milliwave                   WiMAX                                SiC                  T-PM                    Heat Pump                 Water
     Particle Beam   Variable-speed                        Coating                                            Modules
  Treatment Systems Elevator Systems                                                                                                                                                                                                                Blu-Ray
                                                                                       IPU                                                                                                                                   Power
                                                                New Beam                                              Quantum    10G-PON                                             Blue LD                                                         DVD
                                                                                                                                                                                                                           Conditioners
                                                                                                                    Cryptography



                                                             Product Synergy                                                                                    Product Synergy


            Global Warming
            Global Warming                                     DSRC-Based
                                                               DSRC-Based                                        Total Security
                                                                                                                 Total Security                                             AdvanCity
                                                                                                                                                                            AdvanCity
               Solutions
               Solutions                                        Solutions
                                                                Solutions                                          Solutions
                                                                                                                   Solutions                                                Solutions
                                                                                                                                                                             Solutions



                               Total Building-management
                               Total Building-management                                     e-F@ctory                                                                                                   RFID -Based
                                                                                                                                                                                                         RFID -Based
                                   Systems Solutions
                                    Systems Solutions                                        e-F@ctory                                       Display Solutions
                                                                                                                                             Display Solutions                                            Solutions
                                                                                                                                                                                                          Solutions


                                                                                                        AD Growth Strategy
                                                                                                        AD Growth Strategy
                                      NC: Numeric Controller, ECU: Engine Control Unit, IGBT: Insulated Gate Bipolar Transistor, IPM: Intelligent Power Module, LD: Laser Diode,
                     DLP: Digital Light Processing, MS: Micro Spark, IPU: Intelligent Power Unit, RFID: Radio Frequency IDentification, WiMAX: Worldwide Interoperability for Microwave Access,                                                                       8
                              10G-PON: 10 Gigabit-Passive Optical Network, SiC: Silicon Carbide, T-PM: Transfer Mold-Power Module, DSRC: Dedicated Short Range Communication
                                                                                                                                                                                                      Growth
                                                                                                                                                                                                      Growth



        IV. Balanced Corporate Management: (1) Growth Strategy-3                                                                                                                            Profitability
                                                                                                                                                                                             Profitability
                                                                                                                                                                                             Efficiency
                                                                                                                                                                                              Efficiency
                                                                                                                                                                                                             Soundness
                                                                                                                                                                                                              Soundness



              Strengthen Global Business Promotion Structure (Principal Global Efforts)
【Energy & Electric Systems】                                                              【Transportation Systems [railway] 】
  ・Strengthen transmission and distribution business promotion structure                  ・China: Strengthen production structure
【Transportation Systems[railway]】                                                        【Energy & Electric Systems】   】
  ・Strengthen rolling stock air conditioner business promotion structure                  ・China: Strengthen transmission and distribution production                       【Transportation Systems [railway] 】
【Large-Scale Visual Information Systems】                                                   structure                                                                         ・Strengthen production structure
  ・Strengthen business promotion structure                                               【Elevators & Escalators】 】                                                         【Energy & Electric Systems】  】
【Elevators and Escalators】 ・Strengthen R&D structure                                      ・China, East Asia: Strengthen production structure                                 ・Strengthen transmission and
【Air Conditioning Systems】 ・Strengthen sales & service structure
                             】                                                            ・China: Strengthen double brand strategy (Production, sales)                        distribution production structure
  ・Launch air to water business                                                          【FA Systems】                                                                        ・Strengthen nuclear power generation
  ・Strengthen cold-region product business structure                                      ・China: Promote standardization                                                     system business promotion structure
                                       】
【Solar Power Generation Systems】 ・Strengthen sales structure                              ・Strengthen industry-government-academia alliances                                【Large-Scale LED Displays】
                                                                                         【Air Conditioning Systems】                                                          ・Strengthen production structure
                                                                                          ・China: Strengthen sales structure                                                【Automotive Equipment】
                                                                                          ・China: Strengthen production structure                                            ・Strengthen production structure
                   Europe                                                                【Visual Information Systems】 ・China: Strengthen sales structure
                                              Russia                                                                                                                        【Air Conditioning Systems】
                                                                                         【Power Devices】                                                                     ・Strengthen sales structure
                                                                                          ・China: Strengthen production structure                             North         【Solar Power Generation Systems】    】
                      Central & Eastern                                                   ・China, East Asia: Strengthen production structure
                                                                                                                                                             America         ・Strengthen sales structure
                           Europe
                                                                           China
                                                                                             Japan
                                                Middle
                                                 East

                                                                 India                                      【Transportation Systems [railway] 】
                                                                                   Vietnam                   ・ Strengthen production structure, etc.       Mexico
    【FA Systems】  】                                                                                         【Energy & Electric Systems】
     ・Central & Eastern Europe, Russia:                                    Thailand                          ・ Strengthen production structure, etc.
      Strengthen sales and engineering                                                                      【Elevators & Escalators】    】
      structure                                                                                              ・Construct new elevator testing tower
    【Automotive Equipment】                                                                                   ・Strengthen escalator production structure
     ・Strengthen production structure                                                                       【FA Systems】
    【Air Conditioning Systems】                   【Transportation Systems [railway] 】   ]                     ・Strengthen production structure:                           Brazil
     ・Strengthen sales structure                  ・India: Build business promotion structure                  e.g. functional capabilities as the mother
                                                                                                              factory
    【Visual Information Systems】                 【Energy & Electric Systems】    】                            ・Build a structure for annual production of
     ・Strengthen sales structure                  ・India: Invest in a power generation joint venture                                                            【Transportation Systems [railway] 】
                                                                                                              1,000 laser processing machines
                                                                                                                                                                 ・Mexico: Strengthen production structure
                                                 【Elevators and Escalators】                                 【Automotive Equipment】
                                                  ・Thailand: Strengthen production structure                                                                    【FA Systems】
                                                                                                             ・Strengthen alternator, starter, etc.,
                                                  ・India, Vietnam: Strengthen sales and service                                                                  ・South America: Strengthen sales structure
                                                                                                              production structure
                                                   structure                                                                                                    【Automotive Equipment】
                                                                                                            【Total Security Solutions】    】                      ・Brazil: Strengthen production structure
                                                 【FA Systems】                                                ・Strengthen business promotion structure
                                                  ・India: Strengthen sales structure                                                                            【Air Conditioning Systems】
                                                                                                            【Communications Systems】
                                                 【Automotive Equipment】                                                                                          ・Brazil: Strengthen sales structure
                                                                                                             ・Strengthen optical access and other
                                                  ・Thailand, Indonesia, Philippines, India: Strengthen        communications infrastructure business
       【Energy & Electric Systems】
                                                   production structure                                       promotion structures
        ・Strengthen transmission and
                                                  ・Thailand: Strengthen eco-car business structure
         distribution engineering structure                                                                 【Solar Power Generation Systems】        】
                                                 【Air Conditioning Systems】                                  ・Create 220MW capacity (2008),
       【Elevators and Escalators】
                                                  ・India, Vietnam, Australia: Strengthen sales structure      500MW capacity (2012 target)
        ・Strengthen sales and service
                                                  ・Thailand: Strengthen production structure
         structure                                                                                          【Power Devices】   】
                                                 【Solar Power Generation Systems】                            ・Acquire Renesas Technology Corp.’s
       【Air Conditioning Systems】
        ・Strengthen sales structure
                                                  ・Strengthen sales structure                                 Kumamoto Plant, etc.                                                                                9
                                                                                                                                                                                             Growth
                                                                                                                                                                                             Growth


        IV. Balanced Corporate Management: (1) Growth Strategy-4                                                                                                                   Profitability
                                                                                                                                                                                    Profitability
                                                                                                                                                                                    Efficiency
                                                                                                                                                                                     Efficiency
                                                                                                                                                                                                    Soundness
                                                                                                                                                                                                     Soundness

                               Environmental Management
                                                and
                                          Environment-Related Business Strategies


        Solar Power
        Solar Power                                                 2021 Environmental Vision
     Generation Systems
     Generation Systems                                             (Long-range vision with 2021 as target year)                  Power Devices
                                                                                                                                  Power Devices
                              Reduce CO2 emissions from                       Contributions to
                              product usage by 30%                            People and Earth                                                                  High-Efficiency Automobile
                              →Popularize and improve energy-saving products                                                                                    High-Efficiency Automobile
                              Reduce total CO2 emissions from                     through               Promote 3R Products                                              Equipment
                                                                                                                                                                         Equipment
                                                                                                        (Reduce, Reuse, Recycle)
                              production by 30% (520,000 tons)                Technology and             →Reduce resource input by 30%, recycle 100%
                               →Continue investment in energy-saving               Action                  of all plastic home appliances
                                technologies, adopt high-efficiency equipment, etc.
                                                                                                        Zero Emission
                              Contribute to CO2 emission reduction                                       →Aim for zero generation of landfill-destined
                              from power generation                                                         waste products
                               →Strengthen nuclear and solar
                                power generation businesses, etc.
    Clean Energy
    Clean Energy                                                          Preventing Recycling-Based
(Nuclear power generation,                                                            Recycling-
 (Nuclear power generation,
           IGCC)
            IGCC)                                                       Global Warming    Society                                                          Energy-Saving Countermeasure
                                                                                                                                                           Energy-Saving Countermeasure
                                                                                                                                                               and Support Equipment
                                                                                                                                                               and Support Equipment

                                                                        Ensure Harmony with Nature                                                               Environment-Related Business Sales
                                                                      Foster Environmental Awareness                                            (Billion Yen)
                                                                                                                                                  1400          Average yearly
                                                                                                                                                  1200           Growth: 8%
                                                                                                                                                  1000
                                                                                                                                                   800
               Heat Pump Application
               Heat Pump Application                                                                                                               600
                                                                                                                                                   400
                                                                                                                     High-Efficiency
                                                                                                                     High-Efficiency               200
                                                          Energy -Related Building Equipment                            Lighting
                                                                                                                         Lighting
*IGCC: Integrated coal Gasification                       Energy -Related Building Equipment                                                         0
         Combined Cycle                            (Energy-saving diagnostics, countermeasures and
                                                    (Energy-saving diagnostics, countermeasures and                                                              2006    2010       2012            2015
                                                               operations management)
                                                                operations management)                                                                                                          (Fiscal years)


                                                Promote Environment-Related Business Strategies
                                     ~ Contribute to the Prevention of Global Warming through a Variety of Energy-Saving Products ~
                                                                                                                                                                                                       10
                                                                                                                                                                       Growth
                                                                                                                                                                       Growth


VI
strategy
                                       Solar Power Generation Systems
                               Accelerate Global Business Development through Competitiveness
                                                                                                                                                             Profitability
                                                                                                                                                              Profitability
                                                                                                                                                              Efficiency
                                                                                                                                                               Efficiency
                                                                                                                                                                              Soundness
                                                                                                                                                                               Soundness



                                   Underpinned by World’s No. 1 Conversion Efficiency Rate
              Solar Cell Modules                                  PV Inverters                          Power Companies                         Electric & Electronic
                                                                                                         (Transmission)                               Appliances

                                                                                                                             Power Supply



                                                   • Direct current generated by solar cell converted to alternate current
 • Solar energy converted to direct current
                                                     ⇒ Conversion efficiency 97.5%  
  ⇒ Conversion efficiency 18.6%
                                                           Incorporate gradationally-controlled voltage Inverter
       (highest in the world)
                                                   • Automatic monitoring of overall system operation    



           Switzerland
                                                                                 China                                             U.S.A.
                                       Germany               India

                                                                                                                                            U.S.A.
               Italy                                                                              Thailand

                                         Austria


                                                                                                  Indonesia
                                           Solar Power Systems
              Gambia                          Production Plant
                                        (Iida Plant, Nakatsugawa                  Solar Cell Elements                   Solar Cell Modules
                                                   Works)                      Automated Processing Line            Automated Processing Line




                         Stepping up Production Capacity                  Present: 150MW → Oct. 2008: 220MW → 2012: 500MW (Targets)                                              11
                                                                                                                                                     Growth
                                                                                                                                                     Growth

   IV. Balanced Corporate Management: (1) Growth Strategy-5                                                                                Profitability
                                                                                                                                            Profitability
                                                                                                                                            Efficiency
                                                                                                                                                            Soundness
                                                                                                                                                             Soundness
                              Termination of Mobile Handset Business and                                                                     Efficiency



                                Strategic Shift of Management Resources
        Heavy Electric Equipment
        Heavy Electric Equipment                              Project Management
                Systems
                Systems                                           Technology                              Industrial Automation Systems
                                                                                                           Industrial Automation Systems
                                                         • Project management
                                                         • Wide-range software quality
                                                           management
                                                         • Mass-production manufacturing
                                                           technology, etc.
    Railway information and communication systems
    (“Train Vision,” wireless communication systems)
            Vision,”                                                                                                                    systems…
                                                                                                        FA systems, Car multimedia, ETC systems…
                                              systems…
   Monitoring control systems, Total security systems…
                                                               Information and
                                                                Information and                                Strengthen all businesses
          Strengthen all businesses                         Communications Systems
                                                            Communications Systems


                                                            Technology and know-how
                                                               developed through
                                                             mobile handset business


   Communications infrastructure systems,                                                                                              RFIDs…
                                                                                                             Satellite mobile handset, RFIDs…
Internal corporate communications systems…
                                  systems…                           Strengthen
                                                                 Communications Systems

             Electronic Devices
             Electronic Devices                                                                                  Home Appliances
                                                                                                                 Home Appliances
                                                                 Key Technologies
                                                          • Multimedia control
                                                          • Wireless communication control
                                                          • Software control (Application, OS,
                                                            middleware)
                                                          • LSI and electric circuit design
       High-                    devices…
       High-frequency and power devices…                                                                                     DVDs…
                                                                                                                    LCD TVs, DVDs…
                                                          • High-density packaging technology
                                                          • Structural and mechanical design,
         Strengthen all businesses                          etc.                                               Strengthen all businesses

                        *ETC: Electronic Toll Collection System, RFID: Radio Frequency Identification
                                                                                                                                                               12
IV. Balanced Corporate Management: (2)Strengthening Management 成長性
                                     )
                                                            収益性
                                                               成長性                                                                                                           Growth
                                                                                                                                                                             Growth


                                                                                                                                                                   収益性
                                                                                                                                                                    収益性
                                                                                                                                                                  Profitability
                                                                                                                                                                   Profitability
                                                                                                                                                                   Efficiency       健全性
                                                                                                                                                                                   Soundness
                                                                                                                                                                                     健全性
                                                                                                                                                                                    Soundness
                                                                                                                                                                   効率性
                                                                                                                                                                    Efficiency
                                                                                                                                                                   効率性

                            Management Improvement Measures for a Stronger Management Structure
                                                •• Improve manufacturing structure; broaden Just-in-Time (JIT) activities resulting in improved QCD; promote
                                                    Improve manufacturing structure; broaden Just-in-Time (JIT) activities resulting in improved QCD; promote
  Enhance craftsmanship




                           Productivity            in-house manufacturing of key parts; grow ties btw parent factories/overseas facilities, promote JIT in logistics etc.
                                                    in-house manufacturing of key parts; grow ties btw parent factories/overseas facilities, promote JIT in logistics etc.
                           and Quality          •• Enhance activities that focus on built-in quality from development and design stages
                                                    Enhance activities that focus on built-in quality from development and design stages

                                                •• Concentrated development in line with growth strategies; promote development of key parts;
                                                   Concentrated development in line with growth strategies; promote development of key parts;
                                                   promoting commercialization
                                                   promoting commercialization
                            R&D and IP
                                                •• Strengthen development of strategic intellectual property (IP) activities
                                                   Strengthen development of strategic intellectual property (IP) activities
                                                •• Promote C-SIGMA 21 activities; leverage cooperative efforts to cut costs from design stage; promote global
                                                   Promote C-SIGMA 21 activities; leverage cooperative efforts to cut costs from design stage; promote global
                                                   procurement forming partnerships with key suppliers, etc.
                                                   procurement forming partnerships with key suppliers, etc.
                           Procurement
                                                •• Promote countermeasures to rising material costs: intensify value analysis for raw materials
                                                   Promote countermeasures to rising material costs: intensify value analysis for raw materials

                                                •• Promoting strategic relationships with targeted customers, bolstering proposal-based marketing and service,
                                                   Promoting strategic relationships with targeted customers, bolstering proposal-based marketing and service,
                          Marketing                expand growth potential by promoting and strengthening coordinated marketing in cross-divisional terms
                                                   expand growth potential by promoting and strengthening coordinated marketing in cross-divisional terms
                          and service           •• Strengthen sales and service structures in emerging markets; and in such countries, regions and fields
                                                   Strengthen sales and service structures in emerging markets; and in such countries, regions and fields
                                                   where demand is anticipated with a focus on the environment, energy conservation, and safety and security
                                                   where demand is anticipated with a focus on the environment, energy conservation, and safety and security

                                                •• Reduce inventories, securitization of accounts receivable, promote further streamlining of assets
                                                    Reduce inventories, securitization of accounts receivable, promote further streamlining of assets
                          Financials            •• Improvement of Group finances (Global CMS…yen, dollars, euros, baht, yuan, etc.)
                                                    Improvement of Group finances (Global CMS…yen, dollars, euros, baht, yuan, etc.)

                                                •• Station and interchange human resources among businesses to make strong businesses stronger
                                                    Station and interchange human resources among businesses to make strong businesses stronger
                           Human                •• Implement intensive training and education programs; create internal, virtual college for business innovation
                                                    Implement intensive training and education programs; create internal, virtual college for business innovation
                          Resources             •• Respond to the baby boomers’ mass retirement by bolstering recruitment // employment and reemploying
                                                    Respond to the baby boomers’ mass retirement by bolstering recruitment employment and reemploying
                                                   skilled retirees as “senior experts”
                                                    skilled retirees as “senior experts”




                          Strengthen competitiveness in terms of quality, costs, production technology capabilities,
                                  development capabilities, intellectual property, and marketing and service
                               *QCD: Quality/Cost/Delivery, CΣ: Challenge (& Co-creation) Strategic Integration for Global Markets, CMS: Cash Management System                     13
                                                                                                                                                                                                                                                        Growth
                                                                                                                                                                                                                                                        Growth


IV. Balanced Corporate Management: (3) Improve Financial Standing                                                                                                                                                                             Profitability
                                                                                                                                                                                                                                               Profitability
                                                                                                                                                                                                                                               Efficiency
                                                                                                                                                                                                                                                Efficiency
                                                                                                                                                                                                                                                               Soundness
                                                                                                                                                                                                                                                                Soundness



     Generate stable cash flow by raising                                  Enhance and strengthen risk tolerance through the balanced
     profitability and streamlining assets                                   application of funds (Improve financial standing, return value to
                                                                                                                   shareholders, invest in growth fields)
                                                                       (Unit:                                                                                                                                    Shareholder returns
            Improve Profitability                                   Billion Yen
                                                                                         Debt Reduction                                                                           (%)          (¥/share)
                                                                                                                                                                                                                  (Cash dividends)
                                                                    2,000                                                                                                                       14
• Structural reforms for improved profitability                                     40.6%                                                                                                                                                              ¥ 13
                                                                                                        Debt to                                                                    40.0         12
• Stronger focus on quality, cost, production                                  1,769.3
  technologies, development, intellectual property,
                                                                                                       asset ratio                                                                                                                            ¥ 10
                                                                    1,500




                                                                                                                                                   Improve financial standing
  marketing and services                                                                    28.0%                                                                                               10
                                                                                                                                                                                   30.0
                                                                                               23.9%                                                                                                                                 ¥8
• Termination of businesses, strategic alliances                                                                                                                                                  8
                                                                                                     20.9%
                                                                    1,000                                 18.6%                                                                                                            ¥6        Annual
                                                                                                                15.8%                                                              20.0           6                                 Dividends
                                                                                         904.5
  Increase Asset & Cash Turnover                                                              755.7 693.1                                                                                                        ¥4
                                                                       500                                                                                                                        4        ¥3
• Promote inventory reduction mainly through Just In                                                      641.0                                                                    10.0
  Time activities and securitization of accounts                                         Interest-              550.7
                                                                                    bearing debt                                                                                                  2                                       Interim
  receivable, etc.                                                                                                                                                                                                                       Dividends
• Enhance Group finances                                                   0                                                                                                       0.0            0
  (Global CMS: yen, dollars, euros, baht, yuan, etc.)                               97        03        04         05           06        07      08                                                       02        03        04        05       06       07
                                                                                                                                 (Fiscal years)                                                                                           (Fiscal years)


                  Free Cash Flow                                                                                   Invest in Growth Fields
                                                                        (Unit:                                                                                                     (Unit:
   (Unit:     Cash flow from                                         Billion Yen)                                                                                               Billion Yen)
                                                                                                                                                                                                                   Capital
Billion Yen) operating activities                                                                       R&D                                                                                                      Investment
                                                    Increase        200     179.5                                                                                                200
                                                 profitability by                                                                                                                                                                                    170.0
 400.0               Free Cash Flow              strengthening                                                                                                                                                                 162.3 168.7
                                                                                                            148.7 151.4
                                                   businesses       150              136.5 130.5 130.6 132.7                                                                     150 130.8                 139.7 141.8
 300.0
          173.4      148.6                                                                                                                                                                        111.8
 200.0                          126.5                               100                                                                                                          100
 100.0 144.7               119.0
               87.7
   0.0                                                                50                                                                                                          50
-100.0
          Cash flow from investing                                     0                                                                                    0
-200.0            activities             Focus                                 02        03        04         05           06        07        08(Fiscal years)                           02          03        04        05        06         07       08
                                                                                                                                                                                                                                                    (Fiscal years)
        02 03 04 05 06 07 investment on
                                      growth fields
                                                                                                   : Energy and Electric
                                                                                                     Systems
                                                                                                                                     : Industrial Automation Systems
                                                                                                                                                                                                 : Information and Communication
                                                                                                                                                                                                    Systems
                                (Fiscal years)                                                     : Electronic Devices               : Home Appliances                                          : Other




                                                                                                                                                                                                                                                               14

				
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