May 10, 2013
Takaaki Fudetani,
Representative Director, President, CEO
Kyokuto Kaihatsu Kogyo Co., Ltd.
6-1-45, Koshienguchi, Nishinomiya-shi,Hyogo Pref., JapanTo all those who are concerned:

Announcement of Establishment of New Medium-termManagement Plan "Next Step 2015"
Please be informed that Kyokuto Kaihatsu Kogyo group has established its
new Medium-term management planning "Next
Next Step 2015"
2015 for the three fiscal
years until the period ending in March 2016 as described below.

Our group’s previous medium-term management plan "Plan 2010"(three-year plan) completed in March 2013. In this plan, we successfullyachieved our initial targets in sales, profits and other priority themes. To
make the next step forward, we have established a new three-year plan. We
will work together as a group to achieve this plan.
1.

Plan name" Next Step 2015"" to make the next step forward

2.

Target period

April 1, 2013 to March 31, 2016

(Three-year plan)
Basic policies
Kyokuto Kaihatsu Kogyo Group will celebrate its 60th anniversary in thefinal year of this medium-term management planning.
Positioning this three-year range as an important term to make ourstructural reforms to make the next step forward, we will try to restructure
our management foundation and improve our corporate values as well as
promote the formation of attractive corporate culture as a trusted and loved
group based on the following basic policies.
3.

" Step"
Step " to survive in the domestic market
For the core businesses (special purpose vehicles, environment and parking
businesses), we will construct a firm earning system to survive in the matured
domestic market.
" Step"
Step " to the global developmentPositioning the overseas business as a key for the future profits, we will
strengthen the foundation for global development.
We will energetically promote the early profit contribution of the overseas
sites and new market development.
" Step"tothestrengtheningoftotalmonozukuri
Step "(manufacturing) power
We will establish core technologies, develop human resources and ensurehigh quality in order to strengthen the total monozukuri power as a company
1and develop our domestic/overseas business based on the power.
" Step"
Step " to improve the brand value
We will provide high quality to various needs in the product development,production, sales and service fields to improve customer satisfaction as well as
develop effective PR strategies proactively in order to improve our brand value
in both Japan and abroad.
" Step"
Step " to get
g et new sources of earnings
We will energetically promote business collaboration, M&A and entry in new
fields in order to expand our bushiness chances and create future core businessso that we will be able to become a company that earns 100 billion yen.

4.
Key Strategies
We will tackle with the following key strategies based on the basic policies of"Next Step 2015".
(1)
Establishing a firm earning system for the existing businesses
Special purpose vehicles business[1] Securing orders by securely receiving domestic demands for earthquake
disaster reconstruction and recovery and land toughening.
[2] Expanding the shares of key products for sales expansion (dump trucks,refuse trucks, tailgate lifters, trailers).
[3] Improving the production efficiency by measures such as reviewing theproduction process drastically, promoting the automation and standardizing
product specifications.
[4] Establishing the procurement system aiming at the best price and bestquality.
[5] Establishing a firm earning foundation as a stock business by improving theafter-sales service.
Environmental business[1] Participating in joint venture with other companies for recycle facilities andsecuring orders taking advantage of competitive prices.
[2] Securing long-term stable earnings by after-sales service and accepting
operation.
Parking business[1] Securing our competitiveness by promoting the product development in thefields whose markets are expected to expand, overseas production andimproving quality for mechanical multistory parking equipment.
[2] Promoting the selection of business locations focusing on the profitability inthe pay-by-the-hour parking lot "P.ZONE®."(2)
Strengthening the foundation for global development[1] Realizing the early stable operation of the plants in India and Indonesia andtheir contribution to the group performance.
[2] For the Kunshan plant in China, enhancing the sales in the South-East Asiaand the parts supply function to the group companies.
[3] Strengthening the business development in the special purpose vehicles,environment and parking businesses in the China and the ASEAN region.
[4] Strengthening the development of human resources who support globaldevelopment.
[5] Strengthening the collaboration of domestic and overseas development sitesof the group and developing products that are competitive in the overseas
2markets.
(3)
Enhancing the total power as a monozukuri company[1] Ensuring quality that is the top in the special purpose vehicles business bymeasures such as promotion of internal manufacturing, skill tradition formonozukuri and improvement of technical skills and production technology.
[2] Establishing the lineup of only one and number one products that areaccepted in the world and keep leading the industry.
[3] Promoting the product development in new fields powerfully by using
existing technologies.
(4)
Improving the brand value[1] Improving the reliability by company-wide collaboration in the development,
production, sales and service for quality improvement.
[2] Sharing the awareness in the group that the brand is an importantmanagement resource and inputting management resources aggressively.
[3] Establishing systems for continuous brand value improvement activities anda system to evaluate such activities.
(5)
Creating future core businesses
Exploiting new needs in the existing businesses, inputting new products andcreating "the fourth pillar" as a new core business in order to keep
developing in the future.
(E.g. entering in promising markets that are not influenced by the existingbusinesses)(6)CompanyCompany - wide activities for corporate value improvement[1] Strengthening the law observance and impropriety prevention system andsocial contribution by powerful promotion of CSR activities.
[2] Strengthening the environmental management by taking measures such asenergy-saving promotion and reduction of substances of concern.
[3] Improving the satisfaction level of stockholders by implementing effective
stockholder return measures.
5.

Performance
Perf ormance Goal

[ Fiscal year ended March 2016 ]Consolidated net sales

89 billion yen (16( 16 % increase compared to fiscal year ended March 2013)

Group operating profit

7 billion yen ( 36 % increased compared to fiscal year ended March 2013)3