Slide 1: Business Results: Fiscal Year Ended March 2014
Minebea Passion to Exceed Precision Business Result: Fiscal Year Ended March : May 9, 2014 Minebea Co., Ltd.
Slide 2: Financial Results; Policy and Strategy
May 9, 2014 Minebea Passion to Exceed Precision 1. Financial Results 2. Policy and Strategy
Slide 3: Financial Results
May 9, 2014 Minebea Passion to Exceed Precision Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer
Slide 4: Net sales for fiscal year ended March 31, 2014 increased 31.6%
Net sales for the fiscal year ended March 31, 2014 increased by 31.6% from the previous fiscal year to total 371,543 million yen. Operating income was 32,199 million yen, which is 3.2 times higher than it was last year. Net income was 20,878 million yen, which is 11.6 times more than what it was las
Slide 5: Fourth quarter net sales and income
Net sales during the fourth quarter of the fiscal year ended March 31, 2014 was 93,608 million yen. Operating income totaled 8,883 million yen. Net income reached 4,998 million yen. In net sales, we estimate a foreign exchange gain of 10.2 billion yen year-on-year and a gain of 2.8 billion yen quart
Slide 6: Net sales up 31.6% to record high
In the fiscal year ended March 31, 2014, net sales were up 31.6% year on year to total 371.5 billion yen. This is a new record high, surpassing the previous record set in the fiscal year ended March 2008. We expect sales for the fiscal year ending March 2015 at 400 billion yen. 5
Slide 7: Operating income of 32.2 billion yen
Operating income for the fiscal year ended March 31, 2014 totaled 32.2 billion yen, up 3.2 times over what it was last year while the operating margin rose 5.1 percentage points to hit 8.7%. Operating income for the fiscal year ending March 2015 is projected to increase to 36.5 billion yen as growin
Slide 8: Machined components annual net sales and operating income
These graphs show annual net sales and operating income for the machined components business segment. Net sales for the fiscal year ended March 31, 2014 totaled 140.0 billion yen, up 23.3% from the previous fiscal year. Operating income increased 31.8% to reach 33.6 billion yen while the operating m
Slide 9: Machined components quarterly results
These graphs show quarterly net sales and operating income for the machined components business segment. Fourth quarter net sales for the segment were up 5.0% from the previous quarter to total 36.5 billion yen. Operating income increased by 10.2% to reach 9.5 billion yen, and the operating margin i
Slide 10: Electronic devices and components annual results
In the electronic devices and components business segment, net sales for the fiscal year ended March 31, 2014 totaled 230.5 billion yen. That’s up 37.3% from the previous fiscal year due to strong growth in LED backlight sales, which account for the majority of electric devices sold, and represents
Slide 11: Electronic devices and components quarterly results
These graphs show quarterly net sales and operating income of the electronic devices and components business segment. Fourth quarter net sales for the segment fell 8.5% below the figure for the previous quarter to hit 56.8 billion yen. Operating income decreased 46.8% to reach 2.3 billion yen, and t
Slide 12: Net income jumped to 20.9 billion yen
Net income for the fiscal year ended March 31, 2014 jumped to 20.9 billion yen, which is 11.6 times what it was last fiscal year, as operating income increased. Net income per share was 55.9 yen. Extraordinary gains totaled 1.7 billion yen and extraordinary losses came to 2.9 billion yen. The extrao
Slide 13: SG&A expenses
SG&A expenses for the fiscal year ended March 31, 2014 increased by 6.5 billion yen year on year, mostly from a foreign exchange gain of 5.2 billion yen, to total 53.6 billion yen. However, due to increased sales and cost cutting efforts, the SG&A expenses-to-sales ratio dropped 2.3 percentage point
Slide 14: Inventories
Inventories as of March 31, 2014 were up 5.5 billion yen year on year to total 63.7 billion yen. This uptick was due to a foreign exchange gain of 3.9 billion yen as well as increased sales. 13
Slide 15: Capital expenditures and depreciation
Capital expenditures for the fiscal year ended March 31, 2014 totaled 20.7 billion yen while depreciation and amortization expenses for the period totaled 23.7 billion yen. For the fiscal year ending March 2015, we also plan to limit capital expenditures to 21.5 billion yen, which is less than our d
Slide 16: Net interest-bearing debt and net D/E ratio
This graph shows net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents, and net debt to equity ratio for each fiscal year. Net interest-bearing debt fell by a whopping 26.3 billion yen to total 109.9 billion yen at the end of the fiscal year. Thanks to the i
Slide 17: Free cash flow
Free cash flow for the fiscal year ended March 31, 2014 turned positive and amounted to 24.2 billion yen due to increased net income. 16
Slide 18: Forecast for fiscal year ending March 2015
This is a summary of our forecast for the fiscal year ending March 2015. We expect sales and profits to continue growing and ordinary income to reach a new record high this fiscal year along with sales and operating income as they did last fiscal year. This increase will come from a big jump up in L
Slide 19: Business segment forecasts
This slide shows the business segment forecasts. 18
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Slide 21: Operating income versus initial forecast
Operating income for the fiscal year that ended March 2014 was almost twice as much as we initially forecasted. On top of market upturns, it's fair to say the various efforts we had been making have finally paid off. Our forecast for the fiscal year ending March 2015 may seem conservative given the
Slide 22: Biannual operating margins
This graph shows the biannual operating margins. We achieved a 10% operating margin on a biannual basis for the first time in 13 years (since 2001). 21
Slide 23: Moving into a new growth stage
It's been an uphill battle over the last four years and we are now moving into a new growth stage. Today I'm going to talk mainly about our plans for the next three years. I'll touch on our performance forecast for this fiscal year as one of the mileposts in our three-year plan. 22
Slide 24: Sales versus global GDP growth
The graph shows sales from our continuing operations and global GDP growth indexed against figures for1984. While sales from our continuing operations had been below the global GDP in recent years, this distortion was finally resolved in 2013, and sales are climbing upward. 23
Slide 25: Demand for high-end parts as living standards rise
This slide shows how sales of our parts and components will grow as people's living standards rise across the globe, which I have mentioned a number of times already. The world is witnessing the dawn of new era where high-end parts and components are in strong demand. As you can see in the slide, as
Slide 26: Medium-term business plan targets
These are the targets set in our new medium-term business plan. We expect organic growth in the next three years will lead to sales of 500 billion yen by the end of the fiscal year ending March 2017. This fiscal year ending March 2015, sales are expected to reach 400 billion yen and operating income
Slide 27: Ball bearing market
The ball bearing market is still growing now. At the moment there is no real competition in the areas we specialize in, so we will steadily move forward at this pace but nevertheless keep our guard up. The order volume reached 150 million units in April. Under our Five Arrows strategy, I think the f
Slide 28: Ball bearings in the automobile industry
This slide highlights the automobile industry to illustrate one of the reasons behind growing ball bearing sales. It compares annual sales volumes of the ball bearings we identify as being used by the automobile industry with annual global automobile production volumes. As noted on the slide, use of
Slide 29: NHBB Group aircraft parts initiatives
I'll now talk about the NHBB Group's initiatives focusing on aircraft parts. 28
Slide 30: NHBB, myonic and Cerobear aircraft bearings
NHBB stands for New Hampshire Ball Bearings. We took over myonic, a German bearing manufacturer in 2009 and Cerobear, a German ceramic bearing company in 2013. Since the acquisition of these two companies, we have jointly worked on various R&D as well as marketing initiatives and will soon start shi
Slide 31: LED backlights sales target
LED backlights will have the largest impact on our three-year plan. The slide shows that our sales target for the fiscal year ending March 2015 is 80 billion yen. Given the current order status, it may easily exceed 100 billion yen. The Chinese mobile phone market is now growing at a phenomenal rate
Slide 32: Hybrid components sales target
Although the slide says the hybrid components sales target for the fiscal year ending March 2015 is 40 billion yen, we are working hard to bring it up to 50 billion yen. We have set up the Tokyo Research &Development Center inside our Tokyo Head Office building to really concentrate on hybrid compon
Slide 33: Two promises made at May 2009 investor meeting
This slide shows the two promises I made to you at the May 2009 investor meeting just five years ago. The first was “to increase earnings per share,” and the other was “to lay the foundation for Minebea’s 100th anniversary.” Back then, we had just marked the 58th year of being in business, with our
Slide 34: Advanced technology in niche markets
When I take a good look at our current operations, I can see a common thread running through the fabric of our entire business. We possess the kind of advanced technological capability that will enable us to gain a high share of niche markets and achieve high margins. I listed some examples here on
Slide 35: Five Arrows strategy
When you think of our Five Arrows strategy, think of Rothchild's five arrows aimed at diversifying risk rather than the three arrows approach Mori Motonari used as a means of uniting one another to reach a specific goal. The strategy for our 100th anniversary that I mentioned earlier is targeted at
Slide 36: Lighting devices joint venture and wireless technology
We launched a joint venture with Iwasaki Electric Co., Ltd. and Koizumi Lighting Technology Corp. Now that we have fewer divisions that are running in the red, I can invest more time on planting the seeds of future growth. I felt as though I got a good response after marketing our products myself. S
Slide 37: Measuring components growth
This fiscal year, we are aiming for more than a 20% jump in measuring component sales. Measuring components are part of our Five Arrows strategy, and we are working to rapidly develop new products, so this is an area where we can really look forward to seeing good things develop in the future. 36
Slide 38: Financial strategy and dividend
Finally, let's look at our financial strategy. Although we used to pay an annual dividend of more than 10 yen per share in the past, for the fiscal year that ended March 2014 we will increase our dividend by one yen to make it an annual dividend of 8 yen upon approval at the general meeting of share
Slide 39: Net D/E ratio outlook and M&A leeway
As you can see from this slide, if we do nothing, the net D/E ratio will decrease. Since we are always looking into M&A opportunities, we will have more leeway once our financial health improves in this way. Rest assured though we won't leap into any M&A deal without looking at it from every angle.
Slide 40: Dividend and buy-back policies
: T Mineb Dividend and buy-back policies Pontes ec Dividend and buy-back policies ear-end yen/ Total FY ended 3/2014 aided: share; year: 8 lenere Dividend forecast Ally 4 for FY ending 3/2015: [nterim: “® yen/share Year-end: 4 yen/share Our basic dividend policy gives priority to enhancing equity ef
Slide 41: M&A and alliance strategies
M&A and alliance strategies ees # Think twice about large scale M&A deals a Give priority to boosting machined components via medium to small M&As and various alliances May 9, 2014 40 40
Slide 42: Business Results
May 9, 2014 Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ Minebea Passion to Exceed Precision Any statements in this presentation which are not historical are future projections based on certain assumptions and executive judgments drawn from currently available information. Please not