Emergency countermeasures and drastic structural reforms will beconducted, including reviews of the medium-term management plan
¥Global Advance 2013,G to provide greater flexibility with changes in thebusiness environment, as well as to strengthen the corporate structure.
 
There have been sudden changes to the external environmentsurrounding   business activities since sGlobal Advance 2013G
was established, including the European financial crisis, a slowdown ingrowth in expanding economies such as China and India, and the yen
remaining strong over the long-term.
 
Progress has been insufficient to meet plans for the first half of the yeardue to a decrease in sales of industrial machinery and
aftermarket/distributor, and an increase in costs in America in 1Q.

 Implement the<ON long-term
The most pressing challenges for the short-term are to strengthen thecorporate structure by increasing margins, and improving cash flow bylimiting capital expenditure and decreasing inventory.

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