Presentation Transcripts

Now for the most difficult part.
Foreign exchange factors have the biggest impact on our business segments that are running in the red. Although we implemented structural reforms for these businesses, we are still experiencing persistent problems affecting our overall operations.
As technology changes, we will keep pace with increasing sales of hybrid components. This is our "one and only" strategy in that we will move ahead with a focus on tapping into markets where we can harness our combined strengths and leveraging our technological advantages to boost motor sales. In terms of HDD spindle motors, we will zero in on high value-added products for servers and other applications. Our efforts invested in the high value-added S series of DC brush motors have finally begun to pay off and we are seeing that they are starting to dominate the market for single-lens reflex cameras, both with or without a mirror. Capable of generating the same torque as conventional motors in a small space, the S series motor is exactly what high-end camera manufacturers have been looking for. Our S series motor was recently adopted by one camera maker for its new small-size single-lens reflex camera and is now featured on its Website. The plan is to aggressively market products like this that give us big leg up over the competition.
We reorganized the stepping motor business by merging the micro actuator, PM motor and HB motor businesses under one roof to be overseen by a single manager.
We will reallocate overlapping engineering and backup personnel.
Through these measures, we will soon turn the rotary components business into one of our major profit engines.