Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Minebea — Q2 FY ending March 2010 Earnings Presentation
36 slides from Minebeamitsumi's earnings presentation, Nov 6, 2009
Slide 1: Business Results: Second Quarter of Fiscal Year Ending March 31, 2010
Business Results Second Quarter of Fiscal Year Ending March 31, 2010 November 6, 2009 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy November 6, 2009 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer November 6, 2009 2
Slide 4: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Continue to improve profits by net sales recovery, but big negative impact from the 1Q deficit FY ended FY ending 1H of FY ending Change Mar. '09 Mar. '10 Mar. '10 (Millions of yen) Original 1H 1H YoY forecast Net sales 150,613 109,268 -27.5% 105,500～9
Slide 5: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Turned profitable by net sales recovery and cost cutting efforts FY ended FY ending Mar.'10 Change (Millions of yen) Mar.'09 2Q 1Q 2Q YoY QoQ Net sales 76,572 51,837 57,430 -25.0% +10.8% Operating income 6,615 -605 2,720 -58.9% N.M. Ordinary income 6,2
Slide 6: Quarterly Net Sales
Quarterly Net Sales (Billions of yen) Decreased 25.0% YoY 100.0 Increased 10.8% QoQ 86.5 85.1 81.8 81.0 80.0 74.0 76.6 59.2 57.4 60.0 51.8 46.4 40.0 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/08 FY 3/09 FY 3/10 November 6, 2009 5
Slide 7: Quarterly Operating Income
Quarterly Operating Income (Billions of yen) 9.8% 10.0 9.3% 9.0% 10.0% 8.7% 8.6% 8.0 8.4 7.7% 8.0 7.1 7.3 6.9% 8.0% 6.6 6.0 5.1 4.7% 6.0% 4.5 4.0 4.0% 2.7 2.0 -1.2% 2.0% (0.6) 0.0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q (2.0) -2.0% FY 3/08 FY 3/09 FY 3/10 (2.8) (4.0) -4.0% (6.0) -6.1% -6.0% (8.0) Operati
Slide 8: Machined Components Business
Business Segments Machined Components Business Net sales Operating income Other machined components (Billions of yen) Pivot assemblies (Billions of yen) Operating Income Operating Margin Rod-ends 40.0 8.0 19.3% 19.8% Ball bearings 36.7 19.3% 20.0% 35.5 36.1 35.7 18.7% 18.6% 4.5 33.9 4.6 4.8 4.2 33.3
Slide 9: Electronic Devices and Components Business
Business Segments Electronic Devices and Components Business Net sales Others Operating income Measuring components (Billions of yen) Operating Income Operating Margin Speakers Electronic devices (Billions of yen) 49.8 49.1 Keyboards 1.5 50.0 1.5 1.7 Information motors 1.2 46.2 2.4 45.3 HDD spindle
Slide 10: Quarterly Net Income
Quarterly Net Income (Billions of yen) (Yen) 12.7 6.0 10.9 15.0 7.9 9.5 9.0 4.0 5.1 6.6 6.2 10.0 4.3 3.8 3.6 3.4 2.0 3.1 5.0 2.6 2.4 (4.3) (1.7) 1.3 0.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q (2.0) (5.0) FY 3/08 FY 3/09 FY 3/10 (4.0) (10.0) (6.2) (6.0) (15.0) (15.6) (8.0) (20.0) Net income Net income per
Slide 11: Quarterly S.G. & A. Expenses
Quarterly S.G. & A. Expenses (Billions of yen) 15.0 25% 21.2% 12.4 12.8 12.8 12.0 12.3 12.6 19.9% 10.9 20% 10.3 10.1 9.8 10.0 18.4% 16.6% 16.5% 17.6% 15% 15.2% 14.8% 15.1% 14.8% 10% 5.0 5% 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/08 FY 3/09 FY 3/10 S.G. & A. expenses S.G. & A. to sales ratio Novemb
Slide 12: Quarterly Inventories
Quarterly Inventories (Billions of yen) 60.0 50.9 48.6 48.5 46.4 45.4 42.4 40.9 38.7 37.0 40.0 34.7 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/08 FY 3/09 FY 3/10 November 6, 2009 11
Slide 13: Capital Expenditure & Depreciation
Yearly Capital Expenditure & Depreciation (Billions of yen) 30.0 26.4 24.0 24.6 24.9 24.0 23.122.5 21.9 21.4 20.2 20.0 17.0 10.8 10.0 10.0 4.9 0.0 FY 3/05 FY 3/06 FY 3/07 FY 3/08 FY 3/09 FY 3/10 FY 3/10 Capital Expenditure 1H Forecast Depreciation & Amortization Expenses *From FY 3/09, due to change
Slide 14: Net Interest-Bearing Debt
Yearly Net Interest-Bearing Debt (Billions of yen) (Billions of yen) 160.0 150.7 146.9 30.0 128.5 23.4 120.0 109.6 110.0 103.6 22.7 96.0 20.0 16.0 80.0 12.5 10.0 40.0 7.8 9.1 3.8 0.0 0.0 FY 3/05 FY 3/06 FY 3/07 FY 3/08 FY 3/09 FY 3/10 FY 3/10 1H Forecast Net interest-bearing debt Free cash flow (rig
Slide 15: Forecast for Fiscal Year Ending March 31, 2010
Forecast for Fiscal Year Ending March 31, 2010 Full year forecast range unchanged FY ended Fiscal Year ending Mar. '10 Mar. '09 (Millions of yen) 2nd Half Forecast Range Full year Forecast Range 1st Half Upper Lower Upper Lower Full year end end end end Net sales 256,163 109,268 120,732 90,732 230,0
Slide 16: Business Segments 2H Forecast
Business Segments 2H Forecast for Fiscal Year Ending March 31, 2010 Machined Components Electronic Devices and Components Business Net Sales Net Sales HDD spi n dle m o t o r s In fo r m at i o n m o t o r s Bal l be ari n gs Ro d- e n ds Ot h e rs Ke ybo ar ds Pi vo t asse m bli e s Ot h e r m ac h
Slide 17: Policy and Strategy
Policy and Strategy Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 16
Slide 18: Orders on Track to Recovery
Orders on Track to Recovery ■Sales volume (On a quarterly basis) 2Q FY3/08 4Q FY3/09 2Q FY3/10 Pivot assemblies 63％ 107% Ball bearings 51％ 84% Fan motors 54％ 75% Stepping motors 57％ 62% HDD spindle 51％ 58% motors Rod ends 79％ (Sales value) 62% (%) November 6, 2009 17
Slide 19: Operating Income Also Steadily Recovering
Operating Income Also Steadily Recovering •Rod ends To remain stagnant •Ball bearings Continuing to recover profitability •HDD spindle motors One step away from breaking even •Keyboards Making improvements •Pivot assemblies Totally recovered •LED backlights Profits increasing •Speakers Making improv
Slide 20: Six Months after Implementing New Organizational Structure
Six Months after Implementing New Organizational Structure Boost Vertical Strength Increased agility Enhanced price Enhanced ability to meet demand competitiveness through for flexible pricing organizational restructuring Quick recovery in motor business performance Boost Horizontal Strength
Slide 21: EMS Project: What Are EMS Products?
EMS Project: What Are EMS Products ? HMSM, medical Large-scale module/end product equipment, etc. Core component + coupling device + electronic circuit +Software Core component + coupling device + (Sensor and electronic circuit) Motor product +coupling device (reducer, etc.) Technological expansion
Slide 22: EMS: Vision and Roadmap
EMS: Vision and Roadmap ¥30 billion in EMS product sales by FY March 2012 Establishment of EMS business model Product/ Achieve technology goal development with customers Product design and Progress marketing Launch FY March 2010 FY March 2011 FY March 2012 November 6, 2009 21
Slide 23: Ball Bearing Business Strategies
Ball Bearing Business Strategies [ Market change after global economic downturn ] Expansion of market for low-priced, mass-produced products Consider strategic entry into the market Target: standard size (Ball bearings for Chinese vacuum cleaner maker, etc.) Measures [1] Reduce cost by increasing pr
Slide 24: LED Backlight Business Strategies
LED Backlight Business Strategies Two Stronger Japanese manufacturers of small LED backlights in the market Expanding customer base for car instrument clusters (European car manufacturers) Stronger ties with LCD manufacturers Sales are expected to rise more during the second half of this fiscal year
Slide 25: HDD Spindle Motor Business Strategies
HDD Spindle Motor Business Strategies Invested the best management resources to restore business (Active involvement of relevant senior executive officers, reorganization in June put business into ICU) Improving communication among offices/factories (Japan, Germany, Thailand) Enhanced preciseness of
Slide 26: Information Motor Business to Expand (1)
Information Motor Business to Expand (1) Transfer of Panasonic’s information equipment motor business makes our Information motor business begin to grow Achieved 80% of the objective to make motor business our second pillar Moved on to profitability stabilization phase of motor business Confirmed co
Slide 27: Information Motor Business to Expand (2)
Information Motor Business to Expand (2) Minebea and Panasonic agreed to transfer Panasonic’s Information Equipment Motor Business to Minebea Motor Manufacturing Corporation, a joint venture of both company in April 2010. Merits [1] Strengthen motor engineers base [2] Enhance related intellectual pr
Slide 28: Prospects for Achieving ¥400 billion in Sales
Prospects for Achieving ¥400 billion in Sales Total approx. ¥380 billion Revenue from newly acquired businesses Panasonic’s information equipment motor business myonic Approx. FDK’s stepping motor business ¥42 billion Peak sales performance ¥334.4 billion (FY ended March 2008) With economic recovery
Slide 29: Initiatives to Turn Around Businesses Running in the Red
Initiatives to Turn Around Businesses Running in the Red Speakers Focus on high power micro speakers Build a system suitable for fabless operations Review outsourcing policy Enhance marketing and increase orders to put us back in the black Keyboards Develop roadmap to cut costs by 20% +
Slide 30: Development of Next-generation Input Devices
Development of Next-generation Input Devices Next-generation input devices (keyboards, remote controls, calculators, phones) designed by Dr. Kazuo Kawasaki, professor from the Osaka University Graduate School of Engineering Samples of Dr. Kawasaki’s work November 6, 2009 29
Slide 31: Profile of Dr. Kazuo Kawasaki
Profile of Dr. Kazuo Kawasaki Professor, School of Engineering, Osaka University (Ph.D. in medical science) Kazuo Kawasaki Member, JIDPO* Good Design Award Judging Committee Dr. Kawasaki works extensively on research, education and design in a wide range of fields from traditional handcrafts to eyew
Slide 32: Cost Reduction Initiatives
Cost Reduction Initiatives Top management took the lead to promote cost reduction (top-down) Established Cost Reduction Promotion Office Implemented a system to solicit cost reduction proposals (bottom-up) e.g. The system was implemented at the Tokyo Head Office Over 600 proposals were submitted dur
Slide 33: Introduction of Incentive Plan
Introduction of Incentive Plan Approx. ¥0.9 billion Employee Shareholding Incentive Plan (E-Ship®) introduced as part of management strategy to focus on share price. (Please see today’s press release for more details.) [1] Provides employees with medium to long-term incentives for increasing corpora
Slide 34: Financial Strategies (1)
Financial Strategies (1) Focus on creating free cash flow and maintaining sound financial structure Free cash flow has been steadily improving. Net-interest bearing debt is expected to reach the medium-term target of ¥100 billion as of the end of this fiscal year. Continue to focus on maintainin
Slide 35: Financial Strategies (2)
Financial Strategies (2) Enhance IR for individual investors Individual investors are important investor base Continue to work on policy of repurchasing own shares Making it possible to carry out an agile capital policy in response to changes in the business environment. Consider various equity
Slide 36: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ Any statements in the presentation which are not historical fact are future projections made based on certain assumptions and executive judgment drawn from currently available information. Please note that actual performance may vary signi
Minebea — Q2 FY ending March 2010 Earnings Presentation on 6ix