Presentation Transcripts

Latest Update : Aug.3, 2012

Back to Financial Results (FY3/2013)

Investor Conference Call for 1Q FY 3/2013 held on July 31, 2012

Table of Contents

I will explain the production and sales of ball bearings and pivot assemblies.
As you can see in this slide, our ball bearing external shipment has been recovering from a demand decrease due to the Thai Floods. Because of an inventory adjustment in the HDD market in and after June, internal shipment of ball bearings for pivot assemblies would stay flat for a while. We would like to utilize this extra production capacity for other applications in order to expand volume more. Currently, demands from automobile industry and for fan motors are quite steady. We will also proceed with the expansion program into low-priced mass-produced ball bearings and mid-sized ones starting early next year as originally planned.

Our pivot assembly sales volume increased significantly after the Thai Floods due to an increase in our market share and recovery of the HDD market. Although the second quarter shipment would stay flat from the previous quarter due to the inventory adjustment in the HDD market in and after June, we expect volume would gradually increase again in and after the third quarter because of the production capacity recovery in the HDD industry. We also expect our profitability to improve by increases in high-value-added products such as pivot assemblies for the 7mm height 2.5 inch HDDs of which we have 100% of the market.

16page (total 17pages)

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