Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Minebea — Investor Presentation (July 2001)
27 slides from Minebeamitsumi's investor presentation, July 2001
Slide 1: Investor Meeting in US
Investor Meeting in US July 2001 Tsugio Yamamoto President and Representative Director Minebea Co., Ltd. 0
Slide 2: Second Year of the Three-Year Management Plan
Second Year of the Three-Year Management Plan 400 (\bn) Last fiscal year Current fiscal year (\bn) 50 (FY to Mar 01) (FY to Mar 02) 45 350 Restructuring measures Completed withdrawal from Restructuring plans are in 40 300 consumer business progress 35 250 Identified four unprofitable 30 busine
Slide 3: Three Basic Management Directions to become a High-Growth, Highly Profitable Company
Three Basic Management Directions to become a High-Growth, Highly Profitable Company 1. To increase production of most profitable mainstay bearings and bearing-related products; 2. To expand small motors and other rotary components business to a scale similar to bearing operation; and 3. To raise th
Slide 4: Vertically Integrated Manufacturing System in Bearings Operation
Vertically Integrated Manufacturing System in Bearings Operation RO bearings Rod end and spherical bearings Discrete bearings Pivot assemblies Outer rings Inner Rings Assembly and Testing Retainers In-house production of parts Shields and snap rings Balls Production of dies, jigs and tools Developme
Slide 5: Fluid Dynamic Bearing ~ Cross Section and Components
Fluid Dynamic Bearing ~ Cross Section and Components In a fluid dynamic bearing, the ball function is replaced with a thin layer of lubricant. Special grooves in the metal bearing parts generate generate a hydrodynamic force that stabilizes the rotation and provides the vibration damping. Minebea’ M
Slide 6: Minebea Begins Mass-Production of Spindle Motors with High-Precision RO Bearings
Minebea Begins Mass- Mass-Production of Spindle Motors with High- High-Precision RO bearings for use in 20GB/Platter Large- Large-Storage Capacity 2.5- 2.5-inch HDDs ＜Extract from Press Release of June 26, 2001＞ Minebea has launched mass-production of spindle motors that use high-precision RO bearin
Slide 7: HDD Spindle Motor Performance Trend
3. RO (Ball) Bearing Motor Precision Improvement and Production Quantity HDD Spindle Motor Performance Trend 2.5-inch Mobile HDD Track Density ~ Capacity Trends 30 Over 70 KTPI HDD SPM 30GB/Platter Development Started 25 Capacity [GB / Platter] Product launch 20 20GB/Platter 56 K~58 KTPI, announced
Slide 8: Ball Bearings Production Trend
Ball Bearings Production Trend Dec. 00 Production Capacity increased to Oct. 99 Annual volume Production capacity 150mn pcs / month (bn units) increased to 120mn pcs / month 1.8 1.7 1.6 1.6 1.4 1.4 1.3 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Year to Mar 99 Mar 00 Mar 01 Mar 02E July, 2001 7 7
Slide 9: Ball Bearings Sales by Region
Ball Bearings Sales by Region 100% 13% 13% 12% 17% 14% 14% 80% + 33% + 13% 60% 32% 39% Europe (plan) 42% North America 40% Asia ex-Japan 39% 34% Japan 20% 31% 0% Year to Mar 00 Mar 01 Mar 02E Total shipments + 9.5% yoy + 4.4% yoy (plan) (number of units) July, 2001 8 External sales of ball bearings
Slide 10: Ball Bearings for Internal Use
Ball Bearings for Internal Use (quantity basis) 100% 17% 21% 25% 27% 28% 30% 80% 60% 83% 79% 40% 75% 73% 72% 70% 20% 0% Year to Mar 97 Mar 98 Mar 99 Mar 00 Mar 01 Mar 02E External sales For internal use July, 2001 9 Ball bearings for internal use have risen steadily over the past several years and w
Slide 11: Minebea's HDD Spindle Motor Production Plan
Minebea’s HDD Spindle Motor 2003 10,000Kpcs/Month Production Plan 1,500K 1,000K This year’s new models: 800K Motors for 800K 3,500K 20GB/platter 2.5-inch HDDs 1,500K Servers and high-end 3.5-inch HDDs 2,200K 1.8-inch HDDs 2002 CQ4 and 1,200K Seagate 3.5-inch HDDs (FDB) 2001 CQ4 7,500Kpcs/Month 5,000
Slide 12: Minebea's Share in the HDD Spindle Motor Market
2. Spindle Motor Production Forecast Minebea’s Share in the HDD Spindle Motor Market ¾ Minebea’s spindle motors with RO bearings are being selected as the leading choice for high-end HDD models. ¾ Production of FDB requires very high precision machining technologies. ¾ Most HDD makers adopt HDD Spin
Slide 13: Ball Bearing Motor vs. FDB Motor
Ball Bearing Motor vs. FDB Motor 9 Reliability 9 Performance - 20GB/platter 2.5-inch HDD (RO Bearings) 9 1.8-inch or smaller HDDs 9 Load carrying capacity July, 2001 12 This year indeed signifies the start of FDB business, as implied by the emergence of a number of HDD makers that have announced to
Slide 14: Fluid Dynamic Bearings Business
Fluid Dynamic Bearings Business Production Capacity As of March 2001 From April 2001 500K/month 1,000K/month (K=1,000) Current Production Volume ： May 100K, June 150K, July 350K Currently, our FDB motor production is for Seagate Technology only. However, we will be able to start to ship sample produ
Slide 15: Rotary Components for Automotive Use
Rotary Components for Automotive Use Trend in the automotive industry (a) ¾ Environmentally friendly Increasing demand ¾ Safety for high- high-performance ¾ Comfort motors and sensors (b) Minebea’s rotary components for automotive use ¾ Motors for EPS (a) (c) ¾ Dashboard unit motors (b) ¾ Headlight
Slide 16: Outlook for Fiscal Year ending March 31, 2002
Outlook for Fiscal Year ending March 31, 2002 Target in the Forecast for Three-year Year ending management (billions of yen) March 2002（ ＊） Change yoy plan Net sales 300 + 4.5% 332 Operating income 33 + 0.1% 39 Ordinary income 25 +1.1% 32 Net income 15 +1.2% 20 * We have assumed 5-8% global PC shipm
Slide 17: Sales and Operating Income Forecast by Segment
Sales and Operating Income Forecast by Segment ---------------------------------------------------Year to March 2002--------------------------------------------------- Full year First Half Second Half Original target in (Ybn) forecast chg. yoy forecast chg. yoy forecast chg. yoy Three-year plan Sale
Slide 18: Bearing Related Products Sales
Sales breakdown by product (FY to Mar 01) Bearing Related Products Sales Pivot assemblies Rod end & spherical bearings Ball bearings full year + 3.9% yoy (\bn) 60 + 6.3% yoy + 1.3% yoy 50 40 30 55.0 52.0 49.8 49.3 51.8 50.0 20 10 0 Apr.99 - Oct.99 - Apr.00 - Oct.00 - Apr.01- Oct.01- Sep.99 Mar.00 Se
Slide 19: Other Machinery Components Sales
Sales breakdown by product (FY to Mar 01) Other Machinery Components Sales Wheels Others Defense- related Fasteners special parts (\bn) 14 Full year -18.7% yoy 12 -14.9% yoy 10 -22.5% yoy 8 12.5 13.4 6 11.6 11.8 10.0 9.0 4 2 0 Apr.99 - Oct.99 - Apr.00 - Oct.00 - Apr.01- Oct.01- Sep.99 Mar.00 Sep.00
Slide 20: Restructuring Plans in Other Machinery Components Division
Restructuring Plans in Other Machinery Components Division ¾ Wheels Decided to withdraw from business and to close Kyoto plant. Complete exit from the business will be in November. Sales to fall to 1/3 of last year’s level. ¾ Fasteners Fundamental restructuring of personnel and organizational st
Slide 21: Rotary Components Sales
Sales breakdown by product (FY to Mar 01) Rotary Components Sales Spindle Stepping motors motors Fan motors (\bn) Full year + 22.3% yoy +31.7% yoy 50 45 + 12.3% yoy 40 35 30 25 50.0 20 38.0 40.0 35.6 32.1 31.6 15 10 5 0 Apr.99 - Oct.99 - Apr.00 - Oct.00 - Apr.01- Oct.01- Sep.99 Mar.00 Sep.00 Mar.01
Slide 22: Other Electronic Devices Sales
Sales breakdown by product (FY to Mar 01) Other Electronic Devices Sales Others Electro Speakers devices Switching power supplies PC keyboards Full year +9.8% yoy +17.0% yoy (\bn) 45 + 2.9% yoy 40 35 30 25 45.0 41.2 41.2 39.8 38.5 41.0 20 15 10 5 0 Apr.99 - Oct.99 - Apr.00 - Oct.00 - Apr.01- Oct.01-
Slide 23: This Year's Restructuring Plans in Other Electronic Devices Division
This Year’s Restructuring Plans in Other Electronic Devices Division ¾ Switching power supplies Scaling back and integrating development and manufacturing operations in North America, and development division in Europe. Need to boost sales by at least 30-40%. Aiming to turn profitable on a monthl
Slide 24: Operating Income by Segment
Operating Income by Segment Back in line with the three-year management plan Consumer business and others (\bn) Elecronic devices and 20 components business 18 0.5 16 0.3 6.0 4.7 3.6 14 3.2 12 10 8 16.5 14.6 6 12.0 11.9 11.3 12.5 Machined components 4 business 2 0 Apr.99 - Oct.99 - Apr.00 - Oct.00 -
Slide 25: Minebea's Strategy
Minebea’s Strategy ¾ Continue to implement and execute restructuring plans in unprofitable business areas. ¾ Accomplish the three management directions by enhancing: “Ultra-Precision Machining Technologies” and “Mass-Production Technologies” High-Growth, Highly Profitable Company July, 2001 24 24
Slide 26: Thank you
MINEBEA Investor Meeting in US July 2001 Thank you. Please visit our web site at http://www.minebea.co.jp July, 2001 25
Slide 27: Forward-looking statements disclaimer
Any statements in the presentation which are not an historical fact are future projections made based on certain assumptions and our management's judgment drawn from currently available information. Please note that actual performance may vary significantly from any particular projection, due to var