MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q3 FY2017 Earnings Presentation
27 slides from MinebeaMitsumi's earnings presentation, Feb 23, 2017
Slide 1: Business Results Third Quarter of Fiscal Year Ending March 31, 2017
Business Results Third Quarter of Fiscal Year Ending March 31, 2017 MinebeaMitsumi Inc. February 13, 2017
Slide 2: Contents
Contents 1. Financial Results 2. Progress of Business with MITSUMI ELECTRIC
Slide 3: Financial Results
Financial Results Hiromi Yoda Director, Senior Managing Executive Officer
Slide 4: Summary of Consolidated Business Results for 1Q-3Q
Summary of Consolidated Business Results for 1Q-3Q Minebea Businesses Sales & OP outperform target but down YoY due to stronger yen and sluggish smartphone market FY3/16 FY3/17 Change FY3/17 Nov. 2016 Forecast (Millions of yen) 1Q-3Q 1Q-3Q YoY Full Year Achievement Net sales 474,215 442,508 -6.7% 56
Slide 5: Summary of Consolidated Business Results for 3Q
Summary of Consolidated Business Results for 3Q Minebea Businesses Higher sales & OP QoQ due to seasonal uptick for smartphone components etc. (Millions of yen) FY3/16 FY3/17 Change 3Q 2Q 3Q YoY QoQ Net sales 178,661 154,844 167,375 -6.3% +8.1% Operating income 15,484 11,623 16,120 +4.1% +38.7% Ordi
Slide 6: Net Sales Minebea Businesses Quarterly
Net Sales Minebea Businesses Quarterly (Billions of yen) 99.5 117.0 145.4 138.7 127.4 168.2 178.7 135.6 120.3 154.8 167.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY3/15 FY3/16 FY3/17
Slide 7: Operating Income Minebea Businesses Quarterly
Operating Income Minebea Businesses Quarterly (Billions of yen) Operating Income Operating margin 10.5 14.2 19.1 16.3 12.5 14.9 15.5 8.5 7.0 11.6 16.1 10.6% 12.2% 13.1% 11.7% 9.8% 8.9% 8.7% 6.3% 5.8% 7.5% 9.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY3/15 FY3/16 FY3/17
Slide 8: Machined Components Minebea Businesses Quarterly
Machined Components Minebea Businesses Quarterly Net sales (Billions of yen) Pivot assemblies Rod-ends/Fasteners Ball bearings 36.6 37.1 40.2 41.9 41.0 42.3 40.8 39.8 39.2 37.3 38.5 9.2 9.2 10.1 9.5 8.3 9.5 8.9 7.6 7.6 7.9 8.7 6.8 7.2 7.7 8.7 8.1 8.0 7.8 8.2 8.0 7.1 6.8 20.7 20.7 22.4 23.7 24.6 24.8
Slide 9: Electronic Devices & Components Minebea Businesses Quarterly
Electronic Devices & Components Minebea Businesses Quarterly Net sales (Billions of yen) Other Sensing devices Electronic devices Motors 62.9 79.9 105.2 96.8 86.3 125.8 137.8 95.7 80.9 117.4 128.7 1.6 1.1 1.5 1.1 0.7 0.7 0.7 1.2 0.7 0.9 1.2 2.7 2.8 3.2 4.7 8.2 9.7 9.4 8.6 8.6 8.9 8.5 21.8 38.1 60.5
Slide 10: Net Income Minebea Businesses Quarterly
Net Income Minebea Businesses Quarterly (Billions of yen) Net income Net income per share (yen) 6.8 11.0 13.2 8.9 10.1 7.7 11.8 6.8 3.2 9.6 12.2 18.3 29.4 35.2 23.8 26.9 20.6 31.6 18.2 8.5 25.5 32.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY3/15 FY3/16 FY3/17
Slide 11: S.G. & A. Expenses Minebea Businesses Quarterly
S.G. & A. Expenses Minebea Businesses Quarterly (Billions of yen) S.G. & A. expenses S.G. & A. to sales ratio 13.8 14.9 15.4 15.9 17.0 18.3 18.4 18.1 17.4 18.7 17.4 13.8% 12.8% 10.6% 11.5% 13.3% 10.9% 10.3% 13.3% 14.5% 12.1% 10.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY3/15 FY3/16 FY3/17
Slide 12: Inventories Minebea Businesses Quarterly
Inventories Minebea Businesses Quarterly (Billions of yen) 67.4 78.1 89.6 92.2 94.5 118.1 126.7 103.0 87.0 96.4 96.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY3/15 FY3/16 FY3/17
Slide 13: Capital Expenditure & Depreciation Minebea Businesses Yearly
Capital Expenditure & Depreciation Minebea Businesses Yearly (Billions of yen) 27.3 20.8 27.3 19.6 43.7 20.8 20.7 23.7 37.6 28.8 43.9 34.8 22.3 20.9 31.0 28.0 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 1Q-3Q Mar.'17 Forecast (Forecast includes post-integrated Mitsumi Business) Capital E
Slide 14: Net Interest-Bearing Debt/Free Cash Flow
Net Interest-Bearing Debt/Free Cash Flow Minebea Businesses Yearly (Billions of yen) *Net interest-bearing debt excludes 7.7 billion yen convertible bonds which was bought back in June 2016 and will be cancelled by the end of this fiscal year. 103.6 114.2 136.2 109.9 93.1 97.5 77.8 * 79.6 -4.2 -8.8
Slide 15: Investment to expand ball bearing production capacity
Investment to expand ball bearing production capacity Monthly External Ball Bearing Shipment Volume (million units/month) Demand for high-end ball bearings continues to grow 122 137 145 155 163 171 179 180 FY FY FY FY 1Q 2Q 3Q FY3/18 3/13 3/14 3/15 3/16 FY3/17 Target o Internal sales of ball bearing
Slide 16: Progress of Business Integration with MITSUMI ELECTRIC
Progress of Business Integration with MITSUMI ELECTRIC Yoshihisa Kainuma Representative Director, President and Chief Officer
Slide 17: Summary of MITSUMI ELECTRIC Results for 3Q
Summary of MITSUMI ELECTRIC Results for 3Q Although profits dropped significantly YoY/QoQ... (Millions of yen) FY3/16 FY3/17 Change 3Q 2Q 3Q YoY QoQ Net sales 40,368 44,632 47,834 +7,466 +3,202 Operating income -2,020 -1,500 -9,303 -7,283 -7,803 Ordinary income -4,371 -2,243 -7,236 -2,865 -4,993 Inc
Slide 18: Inventory write-downs & impairment losses
Inventory write-downs & impairment losses o MITSUMI ELECTRIC executed inventory evaluation in December quarter ahead of the business integration with former Minebea 12.3 billion yen inventory write-downs o 18.7 billion yen impairment losses Expecting 3 billion yen or more reduction in depreciation &
Slide 19: Summary of MITSUMI ELECTRIC Results for 3Q (adjusted)
Summary of MITSUMI ELECTRIC Results for 3Q (adjusted) Big improvement in profits after adjustment, excluding Yen 12.3bn inventory write-downs and Yen 18.7bn impairment losses (Millions of yen) FY3/16 FY3/17 Change 3Q 2Q 3Q 3Q Adjusted YoY QoQ Net sales 40,368 44,632 47,834 47,834 +7,466 +3,202 Opera
Slide 20: Operating Income (MITSUMI ELECTRIC)
Operating Income (MITSUMI ELECTRIC) (Billions of yen) Operating income Operating margin Excluding Yen 12.3bn of inventory write-downs in 3Q 3.0 -3.3 0.9 2.9 0.5 -1.7 1.1 -2.0 -2.0 -3.5 -1.5 -9.3 -12.5% 2.2% 6.4% 1.2% -5.0% 2.3% -5.0% -5.1% -10.7% -3.4% 6.3% -19.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY
Slide 21: Collaboration with MITSUMI - Improving productivity
Collaboration with MITSUMI - Improving productivity o Manufacturing support: Dispatched a cumulative total of 500 engineers from Minebea to MITSUMI to improve various mass production lines such as OIS, based on the business support agreement executed in August 2016 o Promoting the sharing of know-ho
Slide 22: Closing of share exchange
Closing of share exchange o MITSUMI ELECTRIC was delisted from the Tokyo Stock Exchange on January 24, 2017. o Allotted approx. 48 million shares of MinebeaMitsumi to shareholders of MITSUMI in exchange for shares of MITSUMI on January 27, 2017 o Breakdown of share allotment: 20 million shares from
Slide 23: New Managements
New Managements o Three executives newly assigned from former Minebea to MITSUMI, a wholly owned subsidiary Director, Chariman Yoshihisa Kainuma Representative Director, Vice President Ryozo Iwaya Director, Vice President Shuji Uehara o Four executives to be newly assigned from MITSUMI to the parent
Slide 24: Forecast for Fiscal Year Ending March 31, 2017
Forecast for Fiscal Year Ending March 31, 2017 Upward revision due to better-than-plan 9 months results and consolidation of MITSUMI ELECTRIC from January 27, 2017 (Millions of Yen) FY3/16 FY3/17 Full Year 1Q-3Q 4Q Forecast Full Year Revised Forecast YoY Full Year Nov. 16 Forecast Net sales 609,814
Slide 25: Forecast for Business Segment
Forecast for Business Segment (Millions of yen) FY3/16 Full Year FY3/17 1Q-3Q 4Q Forecast Full Year Revised Forecast YoY Full Year Nov. 16 Forecast Net sales 609,814 442,508 187,492 630,000 +3.3% 560,000 Machined components 163,811 114,990 41,410 156,400 -4.5% 151,200 Electronic devices and componen
Slide 26: Share buyback and year-end dividend forecast
Share buyback and year-end dividend forecast o Resolution of share buyback (February 13, 2017) Number of shares: Up to 12 million shares (equal to 2.82% of total issued shares excluding treasury shares) Amount: Up to 15.0 billion yen Period: From February 14, 2017 to September 22, 2017 Purpose: To a
Slide 27: MinebeaMitsumi Inc. Business Results
usiness Results MinebeaMitsumi Inc. http://www.minebeamitsumi.com/ 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 signifi