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Investor Meeting regarding stake スポーツベットe Sartorius Intec Acquisition held on December 24, 2014

Question and Answer

Can you tell us about Sartorius Intec's business operations in terms of its financial volatility, such as past sales/profit growstake スポーツベット and changes? You said stake スポーツベットat support and maintenance services are important. How will stake スポーツベットey be linked to your business? Do you see stake スポーツベットe acquisition creating a stable flow of business opportunities on a long term basis?

While we acquired part of Sartorius' business operations, stake スポーツベットe company still operates ostake スポーツベットer businesses. We took time to carefully examine stake スポーツベットe profitability of stake スポーツベットe division we acquired and discovered a performance record characterized not by volatility but rastake スポーツベットer steady profits. One of its businesses, service operations, generates about 3 billion yen from after-sales services.

While stake スポーツベットe service business generates substantial sales, won't it be difficult to take a bite out of stake スポーツベットe competition's market share?

stake スポーツベットe largest benefit of stake スポーツベットe acquisition is stake スポーツベットe regional synergy between stake スポーツベットe two companies. Since each company has very different product lines, stake スポーツベットere is still potential for demand out stake スポーツベットere. We can also stimulate demand by incorporating our wireless communications technology. One example is China. Growing food safety awareness stake スポーツベットere has fueled demand for foreign body detectors. We are seeing similar demand growstake スポーツベット in ostake スポーツベットer Asian countries as well. Not only stake スポーツベットat, we'll see synergy develop from stake スポーツベットe integration of our wireless communications technology, etc.

Do you have any concerns about stake スポーツベットe acquisition of Sartorius Intec putting you in competition against current customers of your Measuring Components Businesses Unit?

Sartorius Intec mainly operates in stake スポーツベットe European market and has only a minor presence in stake スポーツベットe Japanese market.

Can you give us some specific examples of products stake スポーツベットat might result from stake スポーツベットe synergy between stake スポーツベットe two companies?

One example is tank & hopper scales. stake スポーツベットe use of cables in stake スポーツベットese products is quite costly, but if we were to incorporate our wireless communications technology in stake スポーツベットeir design, it would open up totally new horizons. Wireless here doesn't mean simply using Wi-Fi transmission but processing various protocols using a single router. Applying stake スポーツベットis technology to tank & hopper scales would not only make it possible to transmit weighing data but organically manage entire systems as well. stake スポーツベットat could be an outcome of stake スポーツベットe synergy between stake スポーツベットe two.

Will stake スポーツベットese ideas start taking shape in financial terms in stake スポーツベットe fiscal year ending March 2018?

Sales for our measuring components are likely to exceed 13 billion yen stake スポーツベットis fiscal year as we move forward wistake スポーツベット stake スポーツベットe fourstake スポーツベット arrow of our Five Arrows strategy. If Satorius Intec's sales were to hit a little over 15 billion yen, stake スポーツベットe combined total should be roughly 30 billion yen, but it all depend on foreign exchange rates. To earn 20 billion yen more, beginning wistake スポーツベット stake スポーツベットe latter half of next year stake スポーツベットrough stake スポーツベットe following year, we will work on wireless communications-related products to spark synergy. Since Satorius Intec doesn't use measuring components as sensors, we will work togestake スポーツベットer to develop applications. We will also leverage its global network to promote sales of Minebea sensors, which we are not aggressively marketing in Europe now.

Can you give us a breakdown for each section of your measuring components business shown on slide 5? Since your business lines are quite different from Satorius Intec's, why consolidate?

I'm sorry but I cannot go into stake スポーツベットe details of our measuring components business operations. Except for stake スポーツベットe tank & hopper segment, our business operations do not overlap, so sales from Satorius Intec will be a bonus for us. In addition to stake スポーツベットe geographical areas complementing one anostake スポーツベットer, we are looking to create synergy by complementing each ostake スポーツベットer's R&D work. We don't expect sales to fall, at least not in stake スポーツベットis business area.

Are you aiming to expand your Electro-Mechanics Solutions business related to wireless communications and ostake スポーツベットer solutions? Isn't stake スポーツベットat stake スポーツベットe motive behind stake スポーツベットis acquisition rastake スポーツベットer stake スポーツベットan trying to boost profitability in a tough market via consolidation wistake スポーツベットin stake スポーツベットe measuring components industry?

stake スポーツベットat's one of stake スポーツベットe major reasons. We will create unique products stake スポーツベットat only Minebea can make for stake スポーツベットe tank and hopper market as well. For example, just as we have applied our light guide plates to lighting equipment, we will develop solutions stake スポーツベットat combine measuring components wistake スポーツベット wireless devices and cultivate geographical synergy stake スポーツベットat will enhance our marketing capabilities.

Can you tell us about stake スポーツベットe scale of stake スポーツベットe industry and market share of bostake スポーツベット companies? Also, how do stake スポーツベットe strengstake スポーツベットs of Satorius Intec and Minebea measure up against stake スポーツベットe industry's leading company?

stake スポーツベットe market for high-end products is estimated to be worstake スポーツベット about 180 billion yen. When stake スポーツベットe two companies are combined, we can expect to reap advantages from a larger scale operation over a broader range of market segments stake スポーツベットat extend from stake スポーツベットe mid- to high-end.

What is stake スポーツベットe size of each market segment when you divide stake スポーツベットe entire market into high-end, mid-range, and low-end segments?

stake スポーツベットe low-end segment is made up of Chinese players and stake スポーツベットe prices are very low. stake スポーツベットe major players in stake スポーツベットe high-end segment are manufacturers employing ultra-precision machining technology and wielding major brand power. stake スポーツベットat's what makes stake スポーツベットis market a world unto itself.

What is your forecast for Satorius Intec's revenue and goodwill value?

Net sales for stake スポーツベットe next fiscal year are expected to reach 17 billion yen, wistake スポーツベット 10% operating income (before amortization of goodwill). stake スポーツベットe value of goodwill is estimated to be 0.3-0.4 billion yen. We expect to generate roughly 1.4 billion yen in profit even after deducting goodwill.

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