Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2014
Business Results Second Quarter of Fiscal Year Ending March 31, 2014 November 1, 2013 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy November 1, 2013 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer November 1, 2013 2
Slide 4: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Sales and profits top forecast FY ended FY ending 1H of FY ending Change Mar. '13 Mar. '14 Mar. '14 (Millions of yen) July Vs. 1H 1H YoY Forecast Forecast Net sales 139,101 180,799 +30.0% 178,500 101.3% Operating income 7,700 13,003 +68.9% 10,000 130.0
Slide 5: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Record high quarterly operating as well as ordinary income FY ended FY ending Change (Millions of yen) Mar. '13 Mar. '14 2Q 1Q 2Q YoY QoQ Net sales 70,480 85,317 95,482 +35.5% +11.9% Operating income 4,007 3,538 9,465 X 2.4 X 2.7 Ordinary income 3,573
Slide 6: Net Sales Quarterly
Net Sales Quarterly (Billions of yen) Increased 35.5% YoY Increased 11.9% QoQ 120.0 100.0 95.5 85.3 80.0 68.6 70.5 71.7 71.6 64.8 67.6 62.2 60.0 56.7 40.0 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/12 FY 3/13 FY 3/14 November 1, 2013 5
Slide 7: Operating Income Quarterly
Operating Income Quarterly Increased 2.4 X YoY Increased 2.7 X QoQ (Billions of yen) 12.0 12% 9.5 10.0 9.9% 10% 8.0 8% 5.5% 5.4% 5.7% 6.0 6% 4.1% 4.1% 3.6% 3.7 3.7 4.0 4.0 2.7% 3.5 4% 2.9 2.3 1.5% 2.0 1.7 2% 0.9 0.0 0% (0.5) (2.0) -0.7% -2% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/12 FY 3/13 FY 3/14 Opera
Slide 8: Machined Components Business Quarterly
Machined Components Business Quarterly Net sales Operating income (Billions of yen) Pivot assemblies Rod-ends/Fasteners 40.0 Ball bearings Operating Income Operating Margin (Billions of yen) 34.1 34.6 10.0 35% 30.0 30.5 8.5 30.0 28.0 8.5 8.5 27.5 27.1 27.0 8.0 26.1 7.4 7.5 30% 8.7 7.1 7.0 6.9 24.4 6
Slide 9: Electronic Devices & Components Business Quarterly
Electronic Devices & Components Business Quarterly Net sales * The segment results by new business segment for the fiscal year ended March 2013 are unaudited. (Billions of yen) Operating income 70.0 Other (Billions of yen) Measuring components 4.0 Operating Income 10% Electronic devices 60.6 3.4 Ope
Slide 10: Net Income Quarterly
Net Income Quarterly Increased 3.0 X YoY Increased 2.1 X QoQ (Billions of yen) (yen) 8.0 16.4 20.0 15.9 6.2 5.9 6.0 7.7 10.0 5.6 5.4 4.0 4.6 2.9 1.8 2.9 2.1 2.0 2.0 1.7 0.0 1.1 0.7 0.0 (8.1) (8.0) (10.0) (2.0) (3.1) (3.0) (4.0) (20.0) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/12 FY 3/13 FY 3/14 Net income
Slide 11: S.G. & A. Expenses Quarterly
S.G. & A. Expenses Quarterly (Billions of yen) 15.0 13.0 13.2 12.0 30% 11.4 11.7 11.8 11.6 11.1 10.9 10.9 10.0 19.2% 17.5% 17.6% 20% 17.1% 16.7% 16.4% 16.8% 16.2% 15.2% 5.0 13.8% 10% 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/12 FY 3/13 FY 3/14 S.G. & A. expenses S.G. & A. to sales ratio November 1,
Slide 12: Inventories Quarterly
Inventories Quarterly (Billions of yen) 70.0 60.2 58.2 59.1 60.5 60.0 54.8 51.8 49.0 50.0 46.5 44.3 45.3 40.0 30.0 20.0 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY 3/12 FY 3/13 FY 3/14 November 1, 2013 11
Slide 13: Capital Expenditure & Depreciation Yearly
Capital Expenditure & Depreciation Yearly (Billions of yen) 50.0 Capital Expenditure Depreciation & Amortization Expenses 43.7 40.0 30.0 26.4 27.3 27.3 24.9 24.0 20.2 21.1 20.8 19.6 20.8 20.9 21.7 20.0 11.1 11.7 10.0 10.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'14 1H Forecas
Slide 14: Net Interest-Bearing Debt Yearly
Net Interest-Bearing Debt Yearly (Billions of yen) (Billions of yen) 160.0 Net interest-bearing debt 40.0 Free cash flow (right axis) 136.2 126.5 109.6 119.3 120.0 114.2 25.0 110.0 96.9 103.6 17.1 23.4 17.7 80.0 12.5 10.0 9.0 40.0 (5.0) (4.2) (8.8) (14.8) 0.0 (20.0) Mar.'08 Mar.'09 Mar.'10 Mar.'11 M
Slide 15: Forecast for Fiscal Year Ending March 31, 2014
Forecast for Fiscal Year Ending March 31, 2014 Full year forecast revised upward again after strong 1H Sales and net income are expected to reach record highs FY ended Fiscal Year ending Mar. '14 Mar. '13 (Millions of yen) 2H Full Year 2H Full Year Full Year 1H Revised Revised YoY Initial July Forec
Slide 16: Forecast for Business Segment
Forecast for Business Segment FY ended FY ending Mar. '14 Mar. '13 (Millions of yen) 2H Full Year 2H Full Year Full Year 1H Revised Revised YoY Initial July Forecast Forecast Forecast Forecast Net sales 282,409 180,799 179,201 360,000 +27.5% 164,500 343,000 Machined components 113,573 68,690 66,710
Slide 17: Policy and Strategy
Policy and Strategy November 1, 2013 Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 16
Slide 18: Forecast revised upward
Forecast revised upward Initial Forecast July Revised Forecast New Forecast (Millions of yen) 1 Half Full Year 1 Half Full Year 1 H Results Full Year Net sales 155,500 320,000 178,500 343,000 180,799 360,000 Operating income 6,800 16,000 10,000 19,200 13,003 27,000 Ordinary income 5,600 13,500 8,800
Slide 19: Forecast revised upward – our actions
Forecast revised upward – our actions Improving production efficiency and cutting production costs by boosting vertical and horizontal strength Aggressive investment results New ball bearing plant (Thailand:Bang Pa-in) New aircraft part plants (Japan:Karuizawa,Thailand:Lop Buri) New LED backlight pl
Slide 20: Drastic Changes in the Market
Drastic Changes in the Market (Second half of FY 3/2013) Political and economic changes Global stagnation is leveling off Sharp drop in sales of Japanese products to China Prolonged European financial crisis and slowdown in Yen significantly weakening against the dollar (driving the growth of emergi
Slide 21: Forecast revised upward - Drastic Upturn in the Market
Forecast revised upward -Drastic Upturn in the Market- (Second half of FY 3/2013) Political and economic changes Global stagnation is leveling off Sharp drop in sales of Japanese products to China Prolonged European financial crisis and slowdown in Yen significantly weakening against the dollar (dri
Slide 22: Remarkable turnaround in the first half
Remarkable turnaround in the first half Q2 operating income hits record high on a quarterly basis! Overall operations continued to grow Ball bearings Increasing external sales kept production up Production remained high due to steady sales in the smartphone market LED backlights Expanding customer b
Slide 23: The Five Arrows
The Five Arrows Attempt to reach a point of accomplishing external monthly average sales of ball bearings at 150 million units per month at an earliest possible date. Strive to develop new EMS products・EMS components through coordination with TRDC (Tokyo Research & Development Center) network and ex
Slide 24: LED Lighting
LED Lighting Boost sales of newly developed LED lighting devices and parts Special lenses that control light distribution LED Lighting Market Forecast (Global) (billions of dollars) (%) Energy efficiency = Up approx. 30% 80 100 LED penetration rate Conventional 70 Smart street light Market size stre
Slide 25: Measuring Components
Measuring Components Highlight their sensor function over their traditional function as mere gauges Large potential for expanding applications Care bed Robot Occupancy monitoring Walking/posture controls for robots Detects whether a person is in bed 6-axis force sensors provide optimal foot-force di
Slide 26: 400 billion yen in sales within reach next year
Growth drivers for the next year leading to the Five Arrows (1) LED backlights Up 20 billion yen in sales (2) Hybrid components Up 10 billion yen (3) Aircraft parts Up 3 billion yen (4) Bearing units for Up 1 billion yen turbochargers 400 billion yen in sales within reach next year November 1, 2013
Slide 27: Immediate growth driver: Sharp increase of LED backlight sales
Immediate growth driver 1 Sharp increase of LED backlight sales Growing demand for smartphones (billions of yen) ・Smartphone global penetration is said to grow LED Backlight Sales from 1.5 billion units to 4.3 billion units in 90 2017. ・Our sales increased each month in 1H and 80 expected to be high
Slide 28: Immediate growth driver: Hybrid component sales to shift to growth phase
Immediate growth driver 2 Hybrid component sales to shift to growth phase Accelerate new hybrid component development New Tokyo Research and Development Center (TRDC) will coordinate combining technologies for customer’s needs. Customer’s needs Technology Technology TRDC technology New ideas 1 2 Min
Slide 29: Immediate growth driver: Expand aircraft parts sales
Immediate growth driver 3 Expand aircraft parts sales Shipment Volume for Boeing and Airbus Global aircraft production will Commercial Aircraft continue to increase over the medium (billions of yen) (Units) term 1,600 30 Rod-end fastener sales ・In addition to steady production of Total Boeing/Airbus
Slide 30: Immediate growth driver: Bearing units for turbochargers launched
Immediate growth driver 4 Bearing units for turbochargers launched Number of New Turbocharger- Pluses: energy-saving, equipped Cars around the World highly heat-resistant (millions of units) 40 Began producing energy- saving, highly heat-resistant ball 35 bearing units for turbochargers after they w
Slide 31: Maximize synergy
Application of ceramic bearings in aerospace CEROBEAR GmbH NHBB (Minebea's US subsidiary) Advanced ceramic bearing Large market share for bearing- technology related aircraft parts Maximize synergy Develop products that leverage the advantages of ceramics Major NHBB customers show high (lightweight,
Slide 32: Improve balance sheet
Improve balance sheet Improved cash flow brought net D/E ratio down to 0.85 (billions of yen) (billions of yen) (billions of yen) 150.0 90.0 50.0 136.2 132.3 43.7 60.0 40.0 114.2 103.6 100.0 30.0 30.0 27.3 27.3 6.2 -4.2 20.8 20.8 20.9 21.7 -8.8 19.6 -14.8 0 20.0 50.0 Net interest-bearing debt (left
Slide 33: Improve balance sheet
Improve balance sheet Improved cash flow brought net D/E ratio down to 0.85 (billions of yen) (billions of yen) (billions of yen) 150.0 90.0 50.0 136.2 43.7 119.3 60.0 40.0 114.2 103.6 100.0 30.0 30.0 27.3 27.3 17.1 -4.2 20.8 20.8 20.9 21.7 -8.8 19.6 -14.8 0 20.0 50.0 Net interest-bearing debt (left
Slide 34: M&A and alliance strategies
M&A and alliance strategies Given the backdrop of the falling yen, think twice about large M&A deals Give priority to boosting machined components via medium and small M&As Strengthen various alliances in machined components business Leverage M&As and alliances in other business areas to strengthen
Slide 35: Dividend policy
Dividend policy Dividend FY 3/2014 interim dividend: 3 yen/share FY 3/2014 year-end dividend forecast: 4 yen/share Total 7 yen/share Dividend policy Our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders, with dividends reflecting performanc
Slide 36: 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