Presentation Transcripts

The areas I have described so far will be our growth drivers two to three years from now.
Now I would like to talk about next year, before our five arrows reach their targets.

We will increase LED backlight sales by 20 billion yen next year. We project this year's sales figure to total 60 billion yen. While sales usually dip from now on due to seasonal factors, we haven't seen any drop at all this year. That's why we expect third quarter sales to remain strong. Since we are getting a lot of inquiries, we intend to make capital investments to boost production capacity. We are now working to increase next year's sales by 20 to 80 billion yen, but unofficially we've set our sights on an even higher sales target. As smartphones become thinner, battery requirements are becoming more complex. While it's not so easy to make thinner smartphones, our light guide plates make thinner displays possible. Known for its ultraprecision machining technology, Minebea has the cutting-edge technology to mass produce light guide plates that are slimmer than 0.3 mm. This technology gives us a tremendous advantage. According to the business unit that actually makes the guide plates, the technology enables us to make it as thin as 0.23 mm. I'm confident that we'll see an increase of 20 billion yen in sales next year.

Although I can't give you any specific details about the new products we have developed, sales of hybrid components are expected to climb 10 billion yen next year. Since the TRDC was established, it has been working on designing, testing, and commercializing products. One such product was launched into the market three months ago. Although the shipment volume is still low, we are getting a lot of inquiries about products like this.

The synergy we've realized in our operations and enhanced production efficiency from working to clear out the large order backlog we now have will bring aircraft parts sales up by about 3 billion yen next year.

The turbocharger bearing unit we have spent several years developing will finally make its market debut at the end of this fiscal year. Designed by our German subsidiary, myonic, the prototype was made and tested at our Karuizawa Plant and will finally be mass produced in Thailand. This myonic's technology gives us a technological leg up over our competitors in the industry.
Due to all these growth engines, 400 billion yen in sales is now well within reach.
Under the targets set in the medium-term business plan we announced in May 7, 2010, we were aiming to achieve 400 billion yen in net sales and 40 billion yen in operating income by March 2013. Unfortunately, we were unable to reach these targets last year due to the floods, the sharp appreciation of the yen, the Senkaku Island issue, etc. As things stand now, it looks like 400 billion yen in net sales will be achievable next fiscal year. We will carefully review our operating income target and give you more details next year.