Outcome of Enhanced Early Retirement Plan

06 May 2008
NSG Group, (hereinafter “the Company”) announces that the outcome of the Enhanced Early Retirement Plan (EERP) in Japan, which was announced on 28th February 2008, is as follows.

1. Summary of the Plan

  1. Eligible employees: all managerial employees in Japan (approximately 820)
  2. Application period: from 6th March to 18th April 2008
  3. Expected date of retirement: The majority of the retirements will be between 31st May and 31st July 2008

2. Outcome of the Plan

  1. Number of managers to retire under the Plan: Approximately 220 employees
  2. Cost to be incurred: Approximately JPY 12.5 billion (to be recognized as an extraordinary charge, on both consolidated and non-consolidated basis, in the fiscal year to March 2008)

3. Impact on the operation

The implementation of the Company’s Medium-term Plan strategy requires that we improve our operational performance and competitiveness across the Group. The EERP was offered because we need to reduce our cost base and simplify the organization in order to be more efficient in Japan.

The resulting approximate annual cost reduction is estimated at JPY 2 billion in FY2009, JPY 3 billion in FY2010.