Slide 1: Business Results, Fiscal Year Ended March 31, 2014
Business Results Fiscal Year Ended March 31, 2014 May 9, 2014 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy May 9, 2014 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer May 9, 2014 2
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Posting record high net sales and net income FY ended FY ended FY ended Mar.'14 Change (Millions of yen) Mar. '13 Mar. '14 February forecast Full year Full year YoY Full year VS. Forecast Net sales 282,409 371,543 +31.6% 370,000 100.4% Operating income 10,169
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q FY ended FY ended Change (Millions of yen) Mar. '13 Mar. '14 4Q 3Q 4Q YoY QoQ Net sales 71,601 97,135 93,608 +30.7% -3.6% Operating income -474 10,312 8,883 N.M. -13.9% Ordinary income -1,587 8,370 7,943 N.M. -5.1% Net income -2,992 7,107 4,998 N.M. -2
Slide 6: Net Sales Yearly
Net Sales Yearly Topping record high net sales (Billions of yen) 500.0 Increased 31.6% YoY 400.0 400.0 371.5 334.4 300.0 282.4 269.1 256.2 251.4 228.4 200.0 100.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15E May 9, 2014 5
Slide 7: Operating Income Yearly
Operating Income Yearly Increased 3.2 X YoY (Billions of yen) 40.0 36.5 15% 35.0 32.2 30.8 30.0 25.0 9.2% 22.2 9.1% 10% 8.7% 20.0 13.4 8.2% 12.1 15.0 8.6 10.2 5% 10.0 5.3% 5.2% 5.0 3.4% 3.6% 0.0 0% Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15E Operating income Operating margin May
Slide 8: Machined Components Business Yearly
Machined Components Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) Pivot assemblies Rod-ends/Fasteners Operating income Operating margin 150.0 Ball bearings 40.0 35% 144.0 140.0 34.7 35.0 33.6 34.7 35.0 113.6 28.1 107.8 107.0 30.0 30% 99.3 25.6 100.0 25.5 29.7 26.6 26
Slide 9: Machined Components Business Quarterly
Machined Components Business Quarterly Net sales Operating income (Billions of yen) Pivot assemblies (Billions of yen) 40.0 Rod-ends/Fasteners Operating income Operating margin Ball bearings 36.5 10.0 35% 9.5 34.6 34.8 34.1 8.5 8.6 30.0 30.5 8.9 30.0 27.5 27.1 28.0 8.5 8.5 9.1 8.0 7.5 27.0 30% 26.1
Slide 10: Electronic Devices & Components Business Yearly
Electronic Devices & Components Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) Other Measuring components Operating Income Operating margin Electronic devices 300.0 Motors 15.0 15% 255.0 250.0 5.4 11.4 230.5 12.8 7.4 10.0 9.6 10% 10.7 200.0 167.9 99.4 72.7 8.8 150.0 9
Slide 11: Electronic Devices & Components Business Quarterly
Electronic Devices & Components Business Quarterly Net sales Operating income (Billions of yen) (Billions of yen) Other 5.0 Operating income 10% Operating margin 4.2 Measuring components 70.0 4.0 Electronic devices 3.4 Motors 62.1 60.6 1.8 3.0 6.8% 60.0 1.9 2.7 56.8 2.7 5.6% 2.3 5% 1.7 51.0 2.9 2.0
Slide 12: Net Income Yearly
Net Income Yearly Posting record high net income (Billions of yen) Increased 11.6 X YoY (Yen) 28.0 80 24.0 70 24.0 20.9 60 20.0 64.3 16.3 50 16.0 55.9 12.5 40 12.0 40.9 30 32.6 5.9 8.0 6.7 20 4.0 2.4 1.8 17.2 15.6 10 6.2 4.8 0.0 0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15E Net
Slide 13: S.G. & A. Expenses Yearly
S.G. & A. Expenses Yearly (Billions of yen) 60.0 35% 55.4 53.6 50.0 30% 50.0 47.1 45.6 44.8 44.3 41.1 25% 40.0 17.8% 18.0% 17.6% 20% 16.7% 16.7% 30.0 14.9% 14.4% 13.9% 15% 20.0 10% 10.0 5% 0.0 0% Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15E S.G. & A. expenses S.G. & A. to sales r
Slide 14: Inventories Yearly
Inventories Yearly (Billions of yen) 80.0 63.7 60.0 58.2 49.0 42.4 44.0 40.0 38.7 35.9 20.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 May 9, 2014 13
Slide 15: Capital Expenditure & Depreciation Yearly
Capital Expenditure & Depreciation Yearly (Billions of yen) Capital Expenditure Depreciation & Amortization Expenses 50.0 43.7 40.0 30.0 26.4 27.3 27.3 23.7 26.2 24.9 24.0 20.7 20.2 21.1 20.8 20.8 21.5 19.6 20.0 11.1 10.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Forecast *
Slide 16: Net Interest-Bearing Debt & Net D/E ratio Yearly
Net Interest-Bearing Debt & Net D/E ratio Yearly Net interest-bearing debt (Billions of yen) Net D/E ratio (right axis) (Times) 160.0 1.03 1.04 1.1 136.2 1.0 109.6 0.99 0.9 120.0 0.94 114.2 110.0 0.89 109.9 103.6 0.8 0.83 96.9 84.9 0.7 80.0 0.67 0.6 0.5 40.0 0.46 0.4 0.3 0.0 0.2 Mar.'08 Mar.'09 Mar.
Slide 17: FCF & Net Interest-Bearing Debt Yearly
FCF & Net Interest-Bearing Debt Yearly (Billions of yen) Net interest-bearing debt (Billions of yen) 160.0 Free cash flow (right axis) 40.0 136.2 28.1 109.6 109.9 120.0 114.2 25.0 110.0 96.9 103.6 23.4 24.2 84.9 17.7 80.0 12.5 10.0 40.0 (5.0) (4.2) (8.8) (14.8) 0.0 (20.0) Mar.'08 Mar.'09 Mar.'10 Mar
Slide 18: Forecast for Fiscal Year Ending March 31, 2015
Forecast for Fiscal Year Ending March 31, 2015 We expect to set new record highs in sales, net income as well as ordinary income as sales and profits continue to increase. FY ended Fiscal year ending Mar. '15 Mar. '14 (Millions of yen) Full year 1st Half 2nd Half Full year YoY Net sales 371,543 196,
Slide 19: Forecast for Business Segment
Forecast for Business Segment FY ended Fiscal year ending Mar. '15 Mar. '14 (Millions of yen) Full year 1st Half 2nd Half Full year YoY Net sales 371,543 196,000 204,000 400,000 +7.7% Machined components 140,032 71,200 72,800 144,000 +2.8% Electronic devices and 230,514 124,300 130,700 255,000 +10.6
Slide 20: Policy and Strategy
Policy and Strategy May 9, 2014 Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 19
Slide 21: Forecast for Fiscal Year Ending March 31, 2015
Forecast for Fiscal Year Ending March 31, 2015 In FY3/2014, quarterly forecasts were over-achieved 4 times FY ended Fiscal year ending Mar. '15 Mar. '14 (Millions of yen) Full year 1st Half 2nd Half Full year YoY Net sales 371,543 196,000 204,000 400,000 +7.7% Operating income 32,199 17,700 18,800 3
Slide 22: 10% operating margin is achieved!
10% operating margin is achieved ! 10% op margin achieved in 2nd half of FY3/2014 (Billions of yen) Operating Margin and Sales (biannually) 200 Sales (Left axis) Op Margin (Right axis) 14% 180 12% 160 140 10% 120 8% 100 6% 80 60 4% 40 2% 20 0 0% FY3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/
Slide 23: Minebea is entering into a new growth stage
Minebea is entering into a new growth stage (Billions of yen) Sales and Operating Income (Billions of yen) 600 58.8 Onto new 60 Sales (Left axis) stage Op (Right axis) Tohoku 500 Thai baht weakened earthquake 50 Asian economic March 2011 crisis Thai floods July 1997 41.9 Nov. 2011 400 371.5 40 Fisca
Slide 24: A new stage beyond global economic growth
A new stage beyond global economic growth Minebea sales from continuing operations and global economic growth 4.0 3.5 Global GDP 3.0 Minebea sales from continuing operations 2.5 2.0 Index 1.5 (1984=1.0) 1.0 Lehman Crisis Thai floods 0.5 Strong yen 0.0 ’84 ’86 ’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06
Slide 25: Demand growing for ultra-precision products
Demand growing for ultra-precision products Minebea’s market shares are higher in markets Ultra-precision where more precision are needed. products Global economic growth and shift to high-value- added products lead to increased demand. Up to From now now on The 2nd trend : Demand shift for high qua
Slide 26: Expected organic growth leads to sales of ¥500 billion
Expected organic growth leads to sales of ¥500 billion !! ¥400 billion sales target in this FY is only a milestone New Medium-term Business Plan Targets Assuming no major (Sales) (Op) obstacle in global 600 (Billions of yen) 10.0% 60 economic growth (Op margin) 9.6% 500 9.1% 500 50 50 450 8.7% 43 40
Slide 27: Sell 150 mill. ball bearings externally / month
Sell 150 mill. ball bearings externally / month Ball bearing demand continues to grow Ball bearing average monthly external shipment volume 160 (Million units / month) 150 140 •Specializing in miniature and small- 130 sized ball bearings 120 110 •Diversified applications (automobile, 100 home electr
Slide 28: Growth of miniature ball bearings for automobiles
Growth of miniature ball bearings for automobiles Minebea’s automobile ball bearing sales volume Why per vehicle Minebea’s per vehicle ball bearing sales volume Global automobile production miniature ball bearing Index (2003 = 100) usage is growing? 350 Safety 300 ABS, power steering, windshield wip
Slide 29: Aircraft components business grows
Aircraft components business grows Shipment volume of Boeing and Airbus commercial aircraft Rod-end fastener sales Total Boeing/Airbus shipment volume (Billions B787 A350XWB A320neo B737Max Launched To be To be To be of yen) Oct. 2011 launched launched launched (units) ⓒAirbus end of 2014 Oct. 2015
Slide 30: Profile of NHBB/myonic BU (including CEROBEAR)
Profile of NHBB/myonic BU (including CEROBEAR) Peterborough CEROBEAR myonic Chatsworth a new Advanced plant Herzogenrath, Leutkirch, Plant North Business New Hampshire, Germany Germany California, American Development U.S.A U.S.A plant division Products Large Ball and Ceramic Ball Bearings Small Bal
Slide 31: Rapid sales growth of LED backlights
Rapid sales growth of LED backlights (Billions of yen) LED backlight sales 120 Overwhelming competitive edge in 100 making light guide plates thinner with ultra-precision manufacturing 80 60 LCD is gaining on OLED in cost, 40 durability & precision 20 0 3/11 3/12 3/13 3/14 3/15 3/16 3/17 1. Expand c
Slide 32: Develop and boost sales of new EMS products
Develop and boost sales of new EMS products Sales aim to exceed this year’s plan and ¥70 billion in FY 3/17 (Billions of yen) Hybrid component sales 80 70 60 50 40 30 20 10 0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 Target Target Target May 9, 2014 31
Slide 33: My mission as CEO
(May 2009 investor meeting material ) My mission as CEO Increase earnings per share Maximize earnings per share and Increase increase shareholder value shareholder value Lay foundation for Minebea’s 100th anniversary Enhance corporate resources and be clear about exactly Enhance corporate where we a
Slide 34: Minebea's success formula
Strategy for 100th anniversary leads to ¥500+ bill. sales Minebea’s success formula High Niche market High margin market share High market share products in global markets •Miniature & small sized ball bearings : approx. 60% •HDD pivot assemblies : approx. 75% •Aircraft rod-ends bearings : approx. 5
Slide 35: The Five Arrows: a risk-hedged strategy for 100th Anniversary
The Five Arrows : a risk-hedged strategy for 100th Anniversary Seeding for the future / Harvesting after 3 or more years Lord Mouri Motonari’s “3 arrows” Increase external ball bearing sales to an average of 150 million units per month at the earliest date. Develop new EMS (Electro Mechanics Solutio
Slide 36: Boost sales of lighting device-related products
Boost sales of lighting device-related products MIK Smart Lighting Network launched with an eye on the smart building/smart city market Synergy Interior lighting Exterior lighting Lighting devices Electronic devices Wireless network solutions May 9, 2014 35
Slide 37: Take Measuring Components BU sales to 20 billion yen
Take Measuring Components BU sales to 20 billion yen Measuring component sales (Billions of yen) 20 •Highlight sensor function over traditional gauge function •Take push approach to marketing 15 rather than pull approach 10 1. Medical: Care beds Occupancy monitoring Bedsore prevention 2. Robotics: W
Slide 38: Financial Strategy
Financial Strategy Cash flow improved by higher profits and lower capital expenditures. Where to spend cash? Debts Reduce debts Aim to Increase dividends Return to as profits increase shareholders Maintain strategies for buying back own shares In target and focus M&A business areas May 9, 2014 37
Slide 39: Improvement of balance sheet
Improvement of balance sheet Net D/E ratio improved to 0.67 in FY3/2014 Further improvement is expected Free cash flow Capital expenditures Net D/E ratio Depreciation and amortization expenses (Billions Free cash flow (Left axis) (Billions of yen) (Times) of yen) Cap Ex D&A Net D/E ratio (Right axis
Slide 40: Dividend and buy-back policies
Dividend and buy-back policies Dividend and buy-back policies year-end yen/ Total yen FY ended 3/2014 dividend: 5 share; year: 8 /share Dividend forecast for FY ending 3/2015: Interim: 4 yen/share Year-end: 4 yen/share Our basic dividend policy gives priority to enhancing equity efficiency and impro
Slide 41: M&A and alliance strategies
M&A and alliance strategies Leverage M&As and alliances in target and focus business areas Think twice about large scale M&A deals Give priority to boosting machined components via medium to small M&As and various alliances May 9, 2014 40
Slide 42: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ 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 note that actual performance may vary significantly