Sanix Incorporated has decided to temporarily freeze its Spring Plan 2010, its mid-term business plan for the three-year period from the year ended March 2009 through the year ending March 2011, which was announced on April 22, 2008. Details are as follows.

On April 22, 2008, the Sanix Group announced Spring Plan 2010, its mid-term business plan for the three-year period from the year ended March 2009 through the year ending March 2011. In this plan, the Group aimed to raise the operating income margin to 10% in the final year of the plan as a foundation for further business expansion.

However, with changes in the overall business environment surrounding the Group along with the deteriorating business conditions, the business results for the fiscal year ended March 2009, the initial year of the plan, fell short of the target. Management, therefore, has decided to temporarily freeze the mid-term plan since it has become very difficult to forecast mid-term economic trends under these conditions.

Even though the economic slump is expected to continue for a while, the Sanix Group will maintain the basic policies and measures set forth in the business plan by looking at the current harsh environment as a business opportunity. The Group will establish the business structure to be able to flexibly cope with customers’ needs and improve the earnings structure so as to recover business performance, with the aim of getting the Group back on a fast-growth track.

In April 2010, the Sanix Group will announce a new mid-term business plan, giving careful consideration to the business results for the fiscal year ending March 2010 and the overall business environment surrounding the Group.

For more information, please contact:
Masahiro Shimojo, Director,
Management and Planning Division