Presentation Transcripts

The gray lines show our current business model. With the vertically integrated production system, machined components such as dies and pressed parts are supplied to the electronic component or rotary component business for assembly and then sold to customers, or as indicated by the gray lines on the bottom, lines of machined components such as ball bearings and rod end bearings are sold directly to customers.

The green and blue arrows indicate what we can do by enhancing our vertical and horizontal integrated strength. Traditionally we wouldn't sell our machined components such as molded parts and dies to customers. However, Thailand where we produce most of our products has achieved such remarkable growth that it is now called the Detroit of Asia. Although the automobile industry is currently facing difficult times, I believe that the Thai automobile industry still has excellent growth potential. We plan to tap into these kinds of markets.
We also plan to produce and sell hybrid components that combine our machined components. At our new rod end bearing factory for example, we will not only produce our existing product lines but also combine them with mechanical components like arms, hinges and shafts to make high-value-added aircraft components and aggressively market these components.

Let's look at hybrid components which are indicated by the blue lines. Various electronic devices are made of various machined components. Since machined components is the area we are most specialized in, we will look into business models that incorporate as many machined components as possible.

This may be our first step toward laying the foundation for Minebea's 100th anniversary. It's not that we can start selling these products right way, but we will quickly establish a department dedicated to this area of business that will be ready to launch product sales.