February 1998

Effects of Business Structure Improvements

With regard to improvements to its business structure, Toagosei set a target of generating ¥2 billion in profits by the end of 1997, with fiscal 1993 as the starting point. The company recorded profits of ¥1.25 billion on a financial accounting basis, and with the addition of other items, this resulted in profits of ¥1.86 billion, so the total goal was almost achieved. Although the target limit expired in fiscal 1997, a second step involving "a management system review" will be conducted with the aim of performing task-achievement-type business operations through the "introduction of MBO". At the same time, we plan to change our business processes and systems and increase the speed of business by "promoting groupWare" and "attaining ISO certification."