Presentation Transcripts

Latest Update : June 5, 2017

Back to Financial Results (FY3/2017)

Investor Meeting Presentation for FY 3/2017 held on May 9, 2017

Table of Contents

After turning around a number of businesses that were running in the red, we went straight to work on improving Mitsumi's earnings, which is why we couldn't focus on the machined components business. I've decided that now, after returning all of the money-losing operations of the motor and Mitsumi businesses back to profitability, we will take the same approach with the machined components business. So I checked all processes with all managers in Thailand and made about 40 suggestions for making improvements. I received very positive feedback from shop floor workers and found out that making those improvements would lead to an additional 35 million units per month. This means that we can make 35 million more units at the same cost of raw materials, plus some indirect materials, with almost no extra capital investment. Since we found this out only recently, it was not factored into the latest mid-term business plan.
When we announced the third quarter results, I told you about our plan to make an 8-billion-yen capital investment in increasing ball bearing production. We will put off installing new equipment as much as possible and work on improving productivity as a means of boosting production. This will actually take a fair amount of time since we will be making improvements to all processes at all plants. I expect every plant to have a higher production capacity by October or later. Morale is up across the shop floor and I'm getting only positive feedback. My feeling is that we can absolutely produce up to 300 million ball bearing units a month at our existing plants without any additional investments.

29page (total 57pages)

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