Q&A
Latest Update :
Jul.17, 2007
Back to Shareholders' Meetings (Year 2007)
The 61st Ordinary General Meeting of Shareholders
* Some parts have been added and modified for a clearer understanding.
Question
- What proportion of Minebea's sales is accounted for by railway-related products?
- I can see that Minebea places an emphasis on technology. How many patents do you own, and what kind of patent incentive program do you have?
- What is the total amount of investments that have been made in China up to this point? Also, when Minebea built its plant in China in 1994 had the investment been made after careful study?
- What was the amount of the loss associated with reorganization within the keyboard business in China, and what happened that required such an amount?
- As Keiaisha Co., Ltd is one of Minebea's major shareholders, I would like to ask your opinion regarding the changes in its shareholding structure and the situation.
- Is there any concern of improper transactions between Minebea and a shareholder of Keiaisha Co. Ltd?
- Sales in China now account for about 20 percent of the company's total sales, and I assume they will continue to grow since China is a promising market. What are your thoughts on country risk, especially when it comes to problems like counterfeit products?
- I heard before that Minebea uses its own airplane to ship its products. Is that cost-effective?
Answer
- What proportion of Minebea's sales is accounted for by railway-related products?
- Although we do sell railway-related parts by our subsidiaries in the United Kingdom and other areas for devices such as railway signals, they account for only a small percentage of the company's overall sales.
- I can see that Minebea places an emphasis on technology. How many patents do you own, and what kind of patent incentive program do you have?
- We have about 1,500 patents registered in Japan and overseas in areas such as bearings, motors and electronic devices. The rights to patented technologies developed by employees during the course of their duties belong to the company, but there are programs in place to promote invention and reward inventors equitably based on the value of the patent.
- What is the total amount of investments that have been made in China up to this point? Also, when Minebea built its plant in China in 1994 had the investment been made after careful study?
- We have invested more than 50 billion yen in China up to this point. As for the plant, we spent two years carefully reviewing our options and looked at Dalian, Beijing, Shanghai, Huanan and other areas. Ultimately, we decided on Shanghai. Since the plant was built we have been investing in the keyboard business in Shanghai as well as in the Minebea-Matsushita Motor Corporation plant, which is located in the Huanan region.
- What was the amount of the loss associated with reorganization within the keyboard business in China, and what happened that required such an amount?
- We moved keyboard production from Thailand to China to maintain our competitiveness in the midst of fierce price competition with Taiwanese manufacturers. Nevertheless, profitability in the keyboard business continued to deteriorate, and in 2006 we eliminated unprofitable mass production models and performed reorganization to limit our production to high-value-added products such as notebook PC keyboards and keyboards with wireless capabilities. We returned to profitability on a monthly basis in March of this year. We had to dispose of unnecessary production equipment and reduce the workforce, so we posted an extraordinary loss of approximately 3.5 billion yen.
- As Keiaisha Co., Ltd is one of Minebea's major shareholders, I would like to ask your opinion regarding the changes in its shareholding structure and the situation.
- As it does not have any connection with the purposes of this shareholders' meeting, I will have to refrain from answering it at this time.
- Is there any concern of improper transactions between Minebea and a shareholder of Keiaisha Co. Ltd?
- Minebea is committed to compliance with laws and ethical principles. We do not think there is any concern of improper transactions you mentioned.
- Sales in China now account for about 20 percent of the company's total sales, and I assume they will continue to grow since China is a promising market. What are your thoughts on country risk, especially when it comes to problems like counterfeit products?
- We take country risk into deep consideration in our investments and operations not only in China but all over the world.
- I heard before that Minebea uses its own airplane to ship its products. Is that cost-effective?
- We used to use our own airplane, but we have since sold it. As with most other companies, we now use professional shipping companies to deliver our products.
