Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q3 2024 Earnings Presentation
35 slides from Minebeamitsumi's earnings presentation, Feb 2, 2024
Slide 1: Business Results Third Quarter of Fiscal Year Ending March 31, 2024
Business Results Third Quarter of Fiscal Year Ending March 31, 2024 MinebeaMitsumi Inc. February 2, 2024
Slide 2: Summary of Consolidated Business Results for 3Q
Summary of Consolidated Business Results for 3Q Net sales hit a quarterly record high FY3/23 FY3/24 Change (Millions of yen) 3Q 2Q 3Q YoY QoQ Net sales 371,424 379,747 381,207 +2.6% +0.4% Operating income 25,495 21,141 24,027 -5.8% +13.7% Profit before taxes 19,526 22,421 20,737 +6.2% -7.5% Profit f
Slide 3: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin FY3/23 Special factors (Billions of yen) 1Q 2Q 3Q 4Q Full Year Net sales FX forward contract -1.3 -3.0 -2.9 -1.5 -8.7 Others - - 1.7 21.5 23.2 Operating income Total -1.3 -3.0 -1.3 20.0 14.5 Operating margin *Excl. special factors **OP figures have been revised i
Slide 4: 3Q Actual: Differences from the Forecast as of November
3Q Actual: Differences from the Forecast as of November (Billions of yen) Net Sales Operating Income February 2, 2024 4
Slide 5: 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% 53.9 24.8% 24.5% 24.4% 51.3 51.4 50.5 4.3 22.0% 22.9% 49.1 3.9 3.3 47.9 4.2 46.0 46.4 18.2% 4.0 17.7% 17.1% 17.6%
Slide 6: 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% 3.1% 2.1% 0.2% 0% -4.8% 96.2 98.0 96.2 93.7 1.4 1.0 1.5 92.7 91.9 FY3/23 Special factors
Slide 7: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) *OP figures have been revised in accordance with finalization Net sales (Billions of Yen) Operating income (Billions of yen) of PPA for ①HONDA TSUSHIN KOGYO CO., LTD. ② Minebea Connect Inc. 182.7 FY3/23 2Q -63 million yen (①), 3Q -937 million yen (①,②), Operating in
Slide 8: Access Solutions (AS)
Access Solutions (AS) Net sales (Billions of Yen) Operating income (Billions of yen) 31.3% Operating income Operating margin 87.9 77.6 73.6 6.5% 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
Slide 9: 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) *Figures have been revised in accordance with finalization of PPA for ①HONDA TSUSHIN KOGYO CO., LTD. ②Minebea Connect Inc. Profit for the per
Slide 10: Inventory
Inventory (Billions of yen) 303.3 302.8 300.5 272.8 275.9 264.4 263.1 224.6 219.3 214.1 195.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 February 2, 2024 10
Slide 11: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 237.6 215.0 201.7 84.4 86.9 75.2 42.9 23.2 17.3 14.8 (53.8) (62.2) FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/24 1Q-3Q Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash eq
Slide 12: 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 100,471 27,226 42,774 70,000 -30.3% Profit before taxes 95,069 30,265 39,735 70,000 -26.4% Profit for the period attribut
Slide 13: 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 99,361 110,639 210,000 +6.4% Motor, Lighting & Sensing (MLS) 366,275 180,469 189,531 370,000 +1.0% Semicondu
Slide 14: Full-year forecast: Differences from the Forecast as of November
Full-year forecast: Differences from the Forecast as of November (Billions of yen) Net Sales Operating Income February 2, 2024 14
Slide 15: Today's Point
Today’s Point 1 In 3Q FY3/24, the actual results did not meet the forecast, mainly due to a decline in smartphone related demand. Full-year forecast had to be revised downward due to unexpectedly weak performance and lower capacity utilization of consumer electronics, including smartphones, indu
Slide 16: Today's Point: Full-year operating profit forecast revised to 70 billion yen
Today’s Point 2 Full-year operating profit forecast revised to 70 billion yen Although current market conditions are weakening, there is no change in the competitive environment and other factors. The medium- to long-term growth strategy will be maintained. Key Points Through the automation pr
Slide 17: Aircraft Business: Aircraft market to recover to pre-COVID19 level
Aircraft Business Aircraft market to recover to pre-COVID19 level within FY3/25 In a solid growth market, improve profitability with unrivaled production capabilities and products that solve social issues (Units) Key points 50,000 World passenger jet fleet forecast 1 Number of aircraft production to
Slide 18: Acquisition of All Shares of RO-RA Aviation Systems
Acquisition of All Shares of RO-RA Aviation Systems Outline of RO-RA Aviation Systems GmbH Name RO-RA Aviation Systems GmbH Address Gewerbepark 8, 4861 Schoerfling am Attersee, Austria Title and Name of Representative Helmut Wiesenberger（Managing Director） Design, manufacture and sell link rod assem
Slide 19: Analogue Semiconductor Business
Analogue Semiconductor Business Aiming for sales of 200 billion yen and operating margin of 30% through global niche top and synergy effects Analogue Semiconductor Production Network Key points 1 Chitose Takatsuka Hitachi Power Semiconductor Device （6 inch） （6 inch） (HPSD) 40,000 20,000 • Preparatio
Slide 20: Access Solutions Segment (AS)
Access Solutions Segment（AS） To realize turnaround toward achieving 10 billion yen in OP for FY3/24 Key Points 1 3Q operating income achieved 5.7 billion yen. Along with recovery in automobile production volume, PMI and structural reforms bore fruit. 2 Continued to expand business inquiries and orde
Slide 21: Automation Project
Automation Project Top-down manufacturing reform in progress Processes equivalent to approx. 6,000 workers to be automated in FY3/24 Pick & Place and image processing Key Points (example) 1 Solving the problems that we face as a manufacturing company • Challenges in Manufacturing Securing a workforc
Slide 22: ESG Topics
ESG Topics Accelerating carbon neutral initiatives in Japan and abroad 1 Chitose business division: Self-Consignment • First semiconductor plant in Japan* to utilize solar power generation for production activities. Large-scale systems installed at five sites in Hokkaido. Power generation：total appr
Slide 23: EPS Growth Rate and ROE
EPS Growth Rate and ROE EPS:FY3/09-FY3/23 actual CAGR15.8％, aim for CAGR15％ or more toward FY3/29 ROE:FY3/09-FY3/23 average actual 11.6％, aim for 15% or more toward FY3/29 （yen） MinebeaMitsumi EPS MinebeaMitsumi EPS (Moving average of past 10 years*) 185.30 MinebeaMitsumi ROE TSE PRIME Market** EPS
Slide 24: Shareholders Return
Shareholders Return Dividends Dividends will be maintained at the previous year's level （Reference）Dividends for FY3/23 Dividends for FY3/24 Annual 40 yen/share（20 yen for interim, 20 yen for year-end) Interim dividend 20 yen/share Year-end dividend (Plan) TBD 20 yen/share Share buyback We will cont
Slide 25: Forward-looking statements 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 26: Reference
Reference February 2, 2024 26
Slide 27: FY3/25 Operating Income Image
FY3/25 Operating Income Image From the business results presentation of 2Q FY3/24 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
Slide 28: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales Special 1,400.0 factors 14.5 Operating income 1,292.2 Operating margin 1,124.1 988.4 100.5 978.4 92.1 70.0 58.6 51.2 8.2% 7.8% 6.0% 5.2% 5.0% FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast February 2, 2024 28
Slide 29: 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 210.0 25.8% 22.9％ 22.0% 197.3 17.0 19.8% 21.8% 18.1% 180.9 15.9 177.5 24.5 44.5 Special factors 157.4 22.5 35.2 FX forward co
Slide 30: 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％ 2.7% 379.4 371.0 366.3 370.0 0.3% 4.3 363.8 4.2 4.3 4.0 32.5 4.6 32.6 35.4 37.5 36.0 50.5 21.6 64.2 51.
Slide 31: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Net sales (Billions of Yen) Operating income (Billions of yen) 530.1 Operating income Operating margin 9.8% 8.8% 490.0 6.6％ 6.9% 6.4% 7.9% 429.1 5.5% Special factors FX forward contract -3.1 Others -2.0 361.0 Total -5.1 46.7 292.2 41.8 41.6 Excl. following 34.0 One
Slide 32: 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) 325.0 Operating income (Billions of yen) Operating income Operating margin 11.5% 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 33: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 41.6 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% 10.9% 9.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 February 2, 2024 33
Slide 34: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses ** 147.0 ** 73.5 73.0 63.8 62.0 * 50.1 53.3 46.2 45.5 48.6 45.2 46.0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/24 1Q-3Q Forecast * Capital expenditures of FY3/20 do not include the increase of a
Slide 35: 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