Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 2024 Earnings Presentation
39 slides from Minebeamitsumi's earnings presentation, Nov 2, 2023
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2024
Business Results Second Quarter of Fiscal Year Ending March 31, 2024 MinebeaMitsumi Inc. November 2, 2023
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Business Update & Management Strategy November 2, 2023 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, President COO & CFO November 2, 2023 3
Slide 4: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Net sales hit a quarterly record high FY3/23 FY3/24 Change (Millions of yen) 2Q 1Q 2Q YoY QoQ Net sales 330,021 292,370 379,747 +15.1% +29.9% Operating income 26,331 6,052 21,110 -19.8% x3.5 Profit before taxes 28,121 7,811 22,390 -20.4% x2.9 Profit fo
Slide 5: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Net sales hit a 1H record high FY3/23 FY3/24 Change FY3/24 1H (Millions of yen) 1H 1H YoY August Forecast vs. Forecast Net sales 581,061 672,117 +15.7% 663,000 +1.4% Operating income 40,586 27,162 -33.1% 28,000 -3.0% Profit before taxes 42,395 30,201 -
Slide 6: Net Sales, Operating Income / Margin
Net Sales, Operating Income/ Margin (Billions of yen) FY3/23 Special factors 1Q 2Q 3Q 4Q Full Year Net sales FX forward contract -1.3 -3.0 -2.9 -1.5 -8.7 Operating income Others - - 1.7 21.5 23.2 Operating margin Total -1.3 -3.0 -1.3 20.0 14.5 *Excl. special factors **Figures for FY3/2023 2Q, 3Q, 4Q
Slide 7: 2Q Actual: Differences from the Forecast as of August
2Q Actual: Differences from the Forecast as of August (Billions of yen) ＋12.8 ＋2.7 ＋0.2 379.7 370.6 -0.1 -6.5 Net Sales As of August PT MLS SE AS Other Actual Forecast 21.9 ＋2.3 21.1 ＋1.4 ＋1.6 -0.8 -5.3 Operating Income As of August PT MLS SE AS Other Actual Forecast November 2, 2023 7
Slide 8: Precision Technologies (PT)
Precision Technologies (PT) Net sales (Billions of Yen) Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 26.9% 27.0% 51.4 24.8% 24.5% 24.4% 51.3 50.5 22.9% 49.1 22.0% 3.9 3.3 47.9 4.2 46.0 46.4 4.0 17.7% 17.1% 17.6% 44.1 44.3 4.0
Slide 9: Motor, Lighting & Sensing (MLS)
Motor, Lighting & Sensing (MLS) Net sales (Billions of Yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 8.7% 6.5% 4.1% 4.1% 3.3% 3.9% 2.2% 2.1% 0.2% 0% -4.8% 96.2 98.0 96.2 93.7 1.0 92.7 FY3/23 Special factors 1.4 1.5 90.4 0.9
Slide 10: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) *Figures for FY3/2023 2Q, 3Q, 4Q, and FY3/2024 1Q have been revised -63 million yen, -183 million Net sales (Billions of Yen) Operating income (Billions of yen) yen, -66 million yen, and -27 million yen, 182.7 respectively, in accordance with finalization of Operati
Slide 11: Access Solutions (AS)
Access Solutions (AS) Net sales (Billions of Yen) Operating income (Billions of yen) 31.3% Operating income Operating margin 77.6 73.6 69.5 2.9% 1.5% 0.6% 1.5% 0% -0.2% -0.1% -0.9% -0.9% -0.7% FY3/23 Special factors 1Q 2Q 3Q 4Q Full Year FX forward contract - - - - - 46.3 Others - - - 20.2 20.2 Tota
Slide 12: Profit Attributable to Owners of the Parent / EPS
Profit Attributable to Owners of the Parent / EPS (Billions of yen) Profit for the period attributable to owners of the parent Earnings per share, basic (yen) *In accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD., figures are revised as follows: ①Profit for the period attributabl
Slide 13: Inventory
Inventory (Billions of yen) 303.3 302.8 272.8 275.9 264.4 263.1 224.6 219.3 214.1 195.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 November 2, 2023 13
Slide 14: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 234.7 201.7 190.0 84.4 86.9 75.2 42.9 38.0 23.2 14.8 (19.7) (62.2) FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/24 1H Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash equiv
Slide 15: Forecast
Forecast Full-year forecast revised FY3/23 FY3/24 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,292,203 672,117 727,883 1,400,000 +8.3% Operating income 101,210 27,162 49,838 77,000 -23.9% Profit before taxes 95,808 30,201 47,799 78,000 -18.6% Profit for the period attribut
Slide 16: Forecast for Business Segment
Forecast for Business Segment FY3/23 FY3/24 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,292,203 672,117 727,883 1,400,000 +8.3% Precision Technologies (PT) 197,300 99,361 105,639 205,000 +3.9% Motor, Lighting & Sensing (MLS) 366,275 180,469 189,531 370,000 +1.0% Semicondu
Slide 17: Full-year Operating Income: Differences from the Initial Forecast
Full-year Operating Income: Differences from the Initial Forecast (Billions of yen) 95.0 -9.0 ＋1.0 77.0 -5.0 -5.0 0.0 Initial PT MLS SE AS Other Revised Forecast Forecast November 2, 2023 17
Slide 18: Management Policy & Business Strategy
Management Policy & Business Strategy November 2,2023 Yoshihisa Kainuma Representative Director, Chairman CEO November 2, 2023 18
Slide 19: Summary
Summary Sales and operating income in 1H of the year were almost in line with forecasts. The forecast for FY2024 has been revised downwards, mainly due to a slow recovery in the data center and other markets. However, there are signs that the overall market is bottoming out. Overall Access Sol
Slide 20: Key Points of FY3/24 Forecast
Key Points of FY3/24 Forecast Full-year operating profit forecast is 77 billion yen. Affected by market slowdown in the short term, but steady growth in the medium to long term Data center recovery continues to be delayed, but focus on further productivity PT improvements. Struggling mainly with non
Slide 21: Outline of Hitachi Power Semiconductor Device, LTD.
Business Acquisition of Hitachi Power Semiconductor Device, LTD. Outline of Hitachi Power Semiconductor Device, LTD. Name Hitachi Power Semiconductor Device, LTD. Address 5-2-2, Omikacho, Hitachi-shi, Ibaraki Title and Name of Representative Masahiko Suzuki, President Description of Design, producti
Slide 22: Expansion of the Power Semiconductor Business through the Acquisition (1)
Expansion of the Power Semiconductor Business through the Acquisition of Hitachi Power Semiconductor Device Business (1) Strengthen and expand the 'vertically integrated power semiconductor business' by combining the 'strengths' of the two companies Strengths Chip Manufacturing technology Analogue s
Slide 23: Expansion of the Power Semiconductor Business through the Acquisition (2)
Expansion of the Power Semiconductor Business through the Acquisition of Hitachi Power Semiconductor Device Business (2) Further expansion through synergies with the global niche top 8 focused drivers Target KSF/Characteristics Focused products Semiconductor division sales plan image （Assumed figure
Slide 24: Access Solutions Segment (AS)
Access Solutions Segment（AS） Turnaround to be achieved Full-year Operating Income in excess of 10 billion yen in sight Key Points （billion yen） 3.1 （%） 1 PMI, structural reforms bear fruit 1.1 20 0.5 Full utilization of Tier 1 position 2 Significant growth in enquiries and orders in line with the re
Slide 25: FY3/25 Operating Income Image
FY3/25 Operating Income Image Comparing FYE3/24 Operating Income Image at the time of market recovery Image of Operating Income （billion yen） Bearings （Including aircraft products） Recovery of the data center market and others ＋13～17 billion yen ＋9～11 billion yen 125 Recovery of spindles and non-veh
Slide 26: Signs of Bottoming Out
Signs of Bottoming Out External sales of Ball Bearings Data generating volume (Million units / month) Bottoming out of the data center market is coming soon. 251 246 Data generation volumes are steadily expanding. 244 241 232 231 229 (CY22-CY27 over CAGR20%) 222 222 225 217 206 202 200 195 Ball
Slide 27: ESG Topics: Carbon neutral initiatives at Cebu plant
ESG Topics Promoting carbon neutral initiatives Cebu plant (large scale power consumption base) Installation of large scale solar power generation system and Power Purchase Agreement 1 Solar power generation system Invested in an in-house power generation facility with one of the largest power gen
Slide 28: ESG Topics: MSCI 'A' ESG rating
ESG Topics Integrated Report 2023 published The main theme is the growth strategy, with an emphasis on the new management structure and succession for the next generation, as well as human capital. See on our website → Rating history MSCI gives MinebeaMitsumi an ‘A’ ESG rating A A BBB The company ma
Slide 29: Shareholders Return
Shareholders Return Dividends Interim dividend maintained at previous year's level Dividends for FY3/24 20 Interim dividend TBD yen/share Year-end dividend TBD TBD (Forecast) Regarding the year-end dividends for the fiscal year ending March 31, 2024, we will finalize in light of our performance for
Slide 30: Disclaimer
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 from any particular projection due to various factors. Facto
Slide 31: Reference
Reference November 2, 2023 31
Slide 32: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales Special factors 1,400.0 14.5 Operating income 1,292.2 Operating margin 1,124.1 988.4 101.2 978.4 92.1 77.0 58.6 51.2 8.2% 7.8% 6.0% 5.2% 5.5% FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast November 2, 2023 32
Slide 33: Precision Technologies (PT)
Precision Technologies (PT) Net sales (Billions of Yen) Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 25.8% 205.0 22.9％ 22.0% 197.3 19.8% 19.5% 16.0 21.8% 180.9 15.9 177.5 Special factors 24.5 22.5 42.0 FX forward 157.4 35.2 co
Slide 34: Motor, Lighting & Sensing (MLS)
Motor, Lighting & Sensing (MLS) Net sales (Billions of Yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 5.8% 4.6% 4.8% 3.2％ 3.2% 379.4 371.0 366.3 370.0 0.3% 4.3 363.8 4.2 4.3 3.5 32.5 4.6 32.6 35.4 37.5 36.0 50.5 21.6 64.2 51.
Slide 35: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Net sales (Billions of Yen) Operating income (Billions of yen) Operating income Operating margin 530.1 9.8% 500.0 9.0% 7.4% 6.4% 6.6％ 8.0% 429.1 Special factors 5.5% FX forward contract -3.1 Others -2.0 Total -5.1 361.0 47.5 292.2 41.8 42.4 37.0 Excl. following One
Slide 36: Access Solutions (AS)
Access Solutions (AS) As a result of change of the fiscal year end, FY3/20 does not include Jan.-Mar. 2019 results. Net sales (Billions of Yen) Operating income (Billions of yen) 320.0 11.5% Operating income Operating margin 2.1% 2.3% 3.1% 0.5% 1.1% 0% -1.8% Special factors 20.2 22.3 194.7 145.6 Exc
Slide 37: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 39.2 39.9 38.1 36.8 35.6 31.9 32.8 32.7 30.1 30.4 13.0% 13.0% 12.1% 11.3% 11.5% 10.8% 10.5% 10.8% 10.5% 9.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 November 2, 2023 37
Slide 38: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses ** 147.0 ** 73.5 73.0 * 60.0 50.1 53.3 46.2 45.5 48.6 45.2 40.4 30.0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/24 1H Forecast * Capital expenditures of FY3/20 do not include the increase of asse
Slide 39: ROIC (Return On Invested Capital)
ROIC for Access Solutions (AS) business are pre-merger ROIC (Return On Invested Capital) result and based on JGAAP, and are not included in the Total until FY3/19. MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/accounts re