Presentation Transcripts

Before moving on to explaining our mid-term business plan, I'd like to show you our new mid- to long-term target. We are shooting for one trillion yen in sales or 100 billion yen in operating income, whichever comes first. That doesn't mean we have to achieve both the one trillion yen and 100 billion yen targets. We could generate a 100 billion yen in operating income before selling one trillion yen worth of products. We are flexible about it. Still we'll work to increase sales to generate more profit, meaning we are more geared towards profitability and going for an operating income of 100 billion yen. I'm telling employees to work toward "1 and/or 100," i.e. achieving either one trillion or 100 billion yen, by 2020. The image on the slide is the Matterhorn. We chose this photo to show that we want to take on Mount Everest after conquering the Matterhorn. We successfully established both our main pillars in name and deed by fiscal 2014. We will make these two pillars even bigger by fiscal 2017 and build a third pillar, which will include new products that employ our wireless technology, by fiscal 2020. This as well as large M&As should enable us to quickly reach our target by at least fiscal 2020. Since we don't know exactly when we'll be signing a large M&A deal, we may be able to hit that target even earlier. That's why I've been making "Change to Grow," what I like to call the C to G project, our company-wide mantra. If Minebea is to grow, it must change. That means changing the way we think, our products, and more. We must think outside the box, otherwise we'll just end up doing the same thing over and over. Sitting around and waiting for our customers to grow is no longer an option. That's a thing of the past. I've been trying to drive this point home with all our employees and I'd like to talk a little about it today.