Presentation Transcripts

It took longer than initially anticipated, but we finally got antitrust clearance, and Minebea AccessSolutions (MAS, formerly Honda Lock) joined our group on January 27. This slide summarizes how we are going to generate synergies between U-Shin and MAS, how they will grow, and how we'll cultivate that growth.

First off, let's look at product synergies. U-Shin makes door latches, spindle drive units, heater controls, and overhead controls, but MAS doesn't. MAS makes door mirrors, wheel sensors, and kick sensors, but U-Shin doesn't.
While we already have customers who have agreed to buy our kick sensors, figuring out how to cross-sell these products is what will make all the difference.

As for production capacity synergies, both companies have locations in the four areas shown on the slide, so you can see they complement each other.
In China (Zhongshan), for example, MAS needed a new plant, due to lack of space and aging equipment, in order to accommodate increased production, but it can now use the space within U-Shin's plant. U-Shin will be able to use the space in MAS facilities in Mexico and Brazil.
When trying to cross-sell products, we sometimes hear concerns from existing customers about our production capacity, but that's not a problem for us since we can utilize available space at our other locations without thinking twice about it.
As a manufacturer of access products, we are uniquely positioned to supply the same quality products to any region of the world, from Europe and the United States to Vietnam and Indonesia, in response to customer demand.
We expect to see the supply of semiconductors revive in the second half of the next fiscal year, and we will do our best to make these synergies happen by then.

In the motorcycle market, which we have not entered so far, we will be able to generate very large profits by bringing the MinebeaMitsumi brand to motorcycle manufacturers around the globe, in addition to Honda, which has the largest market share in the world.
The recovery in automobile production, the outcome of U-Shin's structural reforms, and the acceleration of synergies between U-Shin and MAS should enable us to easily hit the 20-billion-yen operating income mark.