Q&A
Latest Update :
Jul.11, 2008
Back to Shareholders' Meetings (Year 2008)
The 62nd Ordinary General Meeting of Shareholders
* Some parts have been added or modified for clearer understanding.
Question
- I think that Minebea's dividend payout ratio is low. Please describe the dividend policy.
- I think that before introducing takeover defense measures, management should improve performance, raise the stock price, provide dividends, and maximize total market value. What do you think?
- Minebea actively engaged in M&A in the past, but had some awful experiences. I think that the current management has little such experience, but what do you think about this?
- Minebea's stock price is low compared to the past. What do you think about this?
- Several companies targeted by Minebea's M&A in the past (when Minebea actively engaged in M&A) are even today in the NIDEC group, a competitor of Minebea. What do you think about this?
- I haven't heard much in the mass media about Minebea's record net sales and profits. Is Minebea properly carrying out IR activities?
- Please tell me number of patents acquired over approximately the past 5 years, and about the company reward system for patents.
- Is Minebea developing carbon bearings? Also, do Minebea's liquid crystal display back light products differ from Samsung's format?
Answer
- I think that Minebea's dividend payout ratio is low. Please describe the dividend policy.
- We think it is important to effectively manage net assets and to make better cash returns to shareholders. Therefore, we would like to pay dividends based on the business performance while strengthening the financial situation and increasing our internal reserve fund to establish a system enabling us to promptly deal with changes in the management environment. I think that the average dividend payout ratio for Japanese companies is 25 to 30%, and Minebea's current dividend payout ratio is about 25%.
- I think that before introducing takeover defense measures, management should improve performance, raise the stock price, provide dividends, and maximize total market value. What do you think?
- I think that regardless of takeover defense measures, of course the company's first premise is to improve business performance, raise dividends, increase corporate value, and increase the stock price. Management is also pushing forward on these.
- Minebea actively engaged in M&A in the past, but had some awful experiences. I think that the current management has little such experience, but what do you think about this?
- Minebea also did M&A in the past, but improving earnings of critical businesses has been the priority of current management. However, we are thinking that if there is an opportunity for M&A which strengthens and expands our main businesses, we can do it at any time. We do not reject the possibility of future M&A.
- Minebea's stock price is low compared to the past. What do you think about this?
- As in business report we just gave, Minebea's results recorded new record net sales and net income, but on the other hand, the stock price is affected by the global economic situation and weak Japan stock market. We shall continue to push forward with expansion of earnings, and I think that will lead to stock price increases.
- Several companies targeted by Minebea's M&A in the past (when Minebea actively engaged in M&A) are even today in the NIDEC group, a competitor of Minebea. What do you think about this?
- That was a long time ago, and current management is not in a position to comment on it.
- I haven't heard much in the mass media about Minebea's record net sales and profits. Is Minebea properly carrying out IR activities?
- We visit Japanese and foreign institutional investors, and regularly hold investor meetings and investor telephone conferences. Our IR web pages have won awards several times. I think that Minebea is carrying out IR activities which are well regarded among Japanese companies. However, if what you pointed out is true, I take it as a valuable opinion, and want to work hard, including on future PR aspects.
- Please tell me number of patents acquired over approximately the past 5 years, and about the company reward system for patents.
- Company rules have been developed for patents, including a company reward system. A patent committee has been established, for a system in which officers evaluate rewards for individual patents. Approximately 600 patent applications were submitted over the past 5 years. About 2,000 patents are now held, of which about 340 were newly registered last year.
- Is Minebea developing carbon bearings? Also, do Minebea's liquid crystal display back light products differ from Samsung's format?
- In ball bearings, we do not use carbon directly in bearing parts, but when they are required to have conductivity, we use carbon nanotubes put in grease. These are not ball bearings, but we use carbon in some spherical bearings which are aircraft parts. Regarding liquid crystal display (LCD) back lights, there are different formats for LCD TVs, notebook PCs, and mobile phones. Minebea produces back lights using white LEDs. Minebea has obtained patents for its unique optical design, which differs from Samsung's.
