Presentation Transcripts

In regards to the business integration with Mitsumi Electric, we concluded a final agreement with them on March 30, 2016. On the following day of the agreement, we started seeking approval from anti-monopoly authorities. To date we have already acquired approval from competition authorities in Japan, the U.S., and Germany. The only countries that have not given approval are Korea and China. We expect to acquire approval from those two countries by around July of this year because we do not see any significant issues that could have a negative impact on approval. I hope that the Korean and Chinese authorities will approve the business integration as soon as possible, given that we will not be able to actively proceed with activities related to the integration with Mitsumi Electric until then because of regulatory requirements.
I paid visits to quite a few business hubs operated by Mitsumi Electric during the period from January through March of this year, and realized that there is great potential for Mitsumi Electric to improve its manufacturing process and its productivity if we succeed in migrating our production technologies to Mitsumi Electric. There is a really good chance that Mitsumi Electric will make a great comeback as a highly profitable company if we successfully rebalance their business portfolio. We also hope to be able to leverage Mitsumi Electric's expertise when developing our products in various fields. I will not talk about our three-year business plan today because we believe that it is too early to give you an outlook for the next three years ahead of the business integration with Mitsumi Electric, which is scheduled to be completed on March 17 next year. I will discuss our business plan for the next three years at the appropriate time next year after we have more extensive information about the business conducted by Mitsumi Electric.