Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2017 Earnings Presentation
57 slides from Minebeamitsumi's earnings presentation, May 11, 2017
Slide 1: Contents
Contents 1. Financial Results 2. Policy and Strategy May 9, 2017 2 MinebeaMitsumi Passion to Create Value through Difference
Slide 2: Financial Results
Financial Results Hiromi Yoda Director, Senior Managing Executive Officer May 9, 2017 3 MinebeaMitsumi Passion to Create Value through Difference
Slide 3: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales and net income hit record highs Millions of yen) FY3/16 Full Year FY3/17 Full Year Change YoY FY3/17 February Forecast Full Year VS. Forecast Net sales 609,814 638,926 +4.8% 630,000 101.4% Operating income 51,438 49,015 -4.7% 48,000 102.1% Ordinary
Slide 4: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q MITSUMI consolidation boosts sales and profits (Millions of yen) FY3/16 4Q FY3/17 3Q 4Q Change YoY QoQ Net sales 135,599 167,375 196,418 +44.9% +17.4% Operating income 8,536 16,120 14,300 +67.5% -11.3% Ordinary income 8,215 15,857 13,621 +65.8% -14.1%
Slide 5: Net Sales Yearly
Net Sales Yearly Net sales hit record high (Billions of yen) 228.4 269.1 251.4 282.4 371.5 500.7 609.8 638.9 750.0 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E May 9, 2017 6 MinebeaMitsumi Passion to Create Value through Difference
Slide 6: Net Sales Quarterly
Net Sales Quarterly (Billions of yen) Quarterly net sales hit record high 99.5 117.0 145.4 138.7 127.4 168.2 178.7 135.6 120.3 154.8 167.4 196.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/15 FY3/16 FY3/17 May 9, 2017 7 MinebeaMitsumi Passion to Create Value through Difference
Slide 7: Operating Income Yearly
Operating Income Yearly (Billions of yen) Operating income Operating margin 12.1 22.2 8.6 10.2 32.2 60.1 51.4 49.0 56.0 5.3% 8.2% 3.4% 3.6% 8.7% 12.0% 8.4% 7.7% 7.5% Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E May 9, 2017 8 MinebeaMitsumi Passion to Create Value through
Slide 8: Machined Components Yearly
Machined Components Yearly Net sales (Billions of yen) Pivot assemblies Rod-ends/Fasteners Ball bearings 113.6 140.0 155.8 163.8 156.3 161.0 29.7 35.0 37.9 34.3 32.6 31.5 22.9 27.5 30.4 32.1 29.6 31.1 60.9 77.4 87.5 97.4 94.1 98.4 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E *Due to minor change
Slide 9: Machined Components Quarterly
Machined Components 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 41.3 9.2 9.2 10.1 9.5 8.3 9.5 8.9 7.6 7.6 7.9 8.7 8.4 6.8 7.2 7.7 8.7 8.1 8.0 7.8 8.2 8.0 7.1 6.8 7.7 20.7 20.7 22.4 23.7 24.6 24.8 24.0
Slide 10: Electronic Devices and Components Yearly
Electronic Devices and Components Yearly Net sales (Billions of yen) Other Sensing devices Electronic devices Motors 167.9 230.5 344.7 445.5 441.6 397.0 8.8 7.4 5.2 3.6 4.0 4.1 9.3 10.7 13.4 35.9 38.3 33.8 47.9 72.7 170.9 245.0 241.0 184.3 101.9 139.7 155.3 161.0 158.3 174.8 Mar.'13 Mar.'14 Mar.'15
Slide 11: Electronic Devices and Components Quarterly
Electronic Devices and Components 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 80.9 117.4 128.7 114.6 1.6 1.1 1.5 1.1 0.7 0.7 0.7 1.2 0.7 0.9 1.2 1.3 2.7 2.8 3.2 4.7 8.2 9.7 9.4 8.6 8.6 8.9 8.5 12.3 21.8 38.1 60.5 50
Slide 12: Mitsumi Business (consolidated portion in 4Q) Quarterly
Mitsumi Business (consolidated portion in 4Q) Quarterly Both net sales and operating income are consolidated for the period after business integration on January 27, 2017 Net sales (Billions of yen) 40.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/15 FY3/16 FY3/17 Operating income (Billions of yen) Oper
Slide 13: Mitsumi Business (including pre-merger) Quarterly
Mitsumi Business (including pre-merger) Quarterly Both net sales and operating income in and before 3Q FY3/17 are pre-merger results. 4Q FY3/17 results are based on managerial accounting for the three months. Net sales (Billions of yen) 26.5 41.4 45.6 39.6 34.2 49.5 40.4 39.5 32.6 44.6 47.8 52.9 1Q
Slide 14: Mitsumi Business (including pre-merger) Yearly
Mitsumi Business (including pre-merger) Yearly Both net sales and operating income in and before 3Q FY3/17 are pre-merger results. 4Q FY3/17 results are based on managerial accounting for the three months. Net sales (Billions of yen) 152.1 157.4 153.0 163.6 178.0 191.2 Mar.'13 Mar.'14 Mar.'15 Mar.'1
Slide 15: Net Income Yearly
Net Income Yearly Net income hit record high (Billions of yen) Income attributable to owners of the parent Net income per share (yen) 6.7 12.5 5.9 1.8 20.9 39.9 36.4 41.1 41.5 17.2 32.6 15.6 4.8 55.9 106.7 97.3 107.3 98.0 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E May 9
Slide 16: Net Income Quarterly
Net Income Quarterly Quarterly net income hit record high (Billions of yen) Income attributable to owners of the parent 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 16.2 18.3 29.4 35.2 23.8 26.9 20.6 31.6 18.2 8.5 25.5 32.4 39.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/
Slide 17: S.G. and A. Expenses Quarterly
S.G. and A. Expenses Quarterly (Billions of yen) S.G. and A. expenses S.G. and A. sales ratio 13.8 14.9 15.4 15.9 17.0 18.3 18.4 18.1 17.4 18.7 17.4 23.3 13.8% 12.8% 10.6% 11.5% 13.3% 10.9% 10.3% 13.3% 14.5% 12.1% 10.4% 11.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/15 FY3/16 FY3/17 May 9, 2017 18 Mi
Slide 18: Inventories Quarterly
Inventories Quarterly (Billions of yen) 67.4 78.1 89.6 92.2 94.5 118.1 126.7 103.0 87.0 96.4 96.7 120.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/15 FY3/16 FY3/17 May 9, 2017 19 MinebeaMitsumi Passion to Create Value through Difference
Slide 19: Capital Expenditure and Depreciation Yearly
Capital Expenditure and Depreciation Yearly (Billions of yen) Capital Expenditure Depreciation and Amortization Expenses 27.3 20.8 27.3 19.6 43.7 20.8 20.7 23.7 37.6 28.8 43.9 34.8 31.8 28.2 44.0 33.0 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E Forecast May 9, 2017 20 MinebeaMit
Slide 20: Net Interest-Bearing Debt/Free Cash Flow Yearly
Net Interest-Bearing Debt/Free Cash Flow Yearly (Billions of yen) 103.6 114.2 136.2 109.9 93.1 97.5 70.9 56.2 -4.2 -8.8 -14.8 24.2 24.5 -1.1 36.3 21.9 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18E Forecast Net interest-bearing debt Free cash flow May 9, 2017 21 MinebeaMitsumi Pass
Slide 21: Forecast for Fiscal Year Ending March 31, 2018
Forecast for Fiscal Year Ending March 31, 2018 Expecting higher net sales and operating income YoY due to huge contribution from full-year consolidation of Mitsumi business (Millions of yen) FY3/17 Full Year FY3/18 1st Half 2nd Half Full Year YoY Net sales 638,926 376,400 373,600 750,000 +17.4% Oper
Slide 22: Forecast for Business Segment
Forecast for Business Segment (Millions of yen) FY3/17 Full Year FY3/18 1st Half 2nd Half Full Year YoY Net sales 638,926 376,400 373,600 750,000 +17.4% Machined components 156,310 80,200 80,800 161,000 +3.0% Electronic devices and components 441,615 202,500 194,500 397,000 -10.1% Mitsumi business 4
Slide 23: Management Policy and Business Strategy
MinebeaMitsumi Passion to Create Value through Difference Management Policy and Business Strategy May 9, 2017 Yoshihisa Kainuma Representative Director, President and Chief Executive Officer Page 24
Slide 24: Full-year forecast (FY3/2018)
Full-year forecast (FY3/2018) MinebeaMitsumi Passion to Create Value through Difference Turned-around money-losing businesses Focusing on strengthening money-earning businesses! Machined Components: to boost productivity to \50 billion OP Electronic Devices and Components: Motors will be #2 profit g
Slide 25: Challenge to ¥1 trillion sales and/or ¥100 billion OP by 2020
Challenge to \1 trillion sales and/or \100 billion OP MinebeaMitsumi Passion to Create Value through Difference 1 and/or 100 by 2020 From investor meeting presentation on May 8, 2015 Progressing as planned ! by 2014 Completion of 2 pillars by 2017 Enlarge 2 pillars by 2020 3 Pillars including new pr
Slide 26: 2020 goal benchmarks and New Mid-term Business Plan targets
Challenge to \1 trillion sales and/or \100 billion OP MinebeaMitsumi Passion to Create Value through Difference 2020 goal benchmarks New Mid-term Business Plan targets (Billion yen) 0 200 400 600 800 1,000 (Billion yen) 0 20 40 60 80 100 Sales Operating income Sales not-included in New Mid-term Busi
Slide 27: Estimated breakdown of ¥100 billion OP in FY3/2021
Estimated breakdown of \100 billion OP in FY3/2021 MinebeaMitsumi Passion to Create Value through Difference Breakdown Machined Components \50 billion Electronic Devices and Components \30 billion Mitsumi 20 billion M and A \15 billion Headquarters Expenses \-15 billion May 9, 2017 28
Slide 28: Machined Components plan targets
Machined Components plan targets MinebeaMitsumi Passion to Create Value through Difference Aiming for ball bearing production capacity of 285 million units/month in FY 3/18 (Improving productivity to get 35 million units / mo ) (Billion Yen) 0 50 100 150 200 250 (Billion Yen) 0 25 50 75 Pivot assemb
Slide 29: Ball bearing strategy
Ball bearing strategy MinebeaMitsumi Passion to Create Value through Difference Ample room to improve profitability! 1. No sign of slowdown in external demand 2. Creating the capacity to make 285 million units/month by FY 3/18 3. Expanding sales activity further External ball bearing shipments (mill
Slide 30: Growth of miniature ball bearings for automobiles
Growth of miniature ball bearings for automobiles MinebeaMitsumi Passion to Create Value through Difference Environmentally friendly/Energy saving Exhaust Gas Recirculation Urea-based SCR Electronic Throttle Valve Turbo Charger etc. Safety Lighting Systems Antilock Brake System Electronic Stability
Slide 31: Aircraft component strategy
Aircraft component strategy MinebeaMitsumi Passion to Create Value through Difference Aiming to boost profitability 1. By changing the production system from beginning to end, we aim to double per capita productivity. 2. While super large aircraft production is falling, mid-to-small aircraft product
Slide 32: Pivot assembly strategy (HDD)
Pivot assembly strategy (HDD) MinebeaMitsumi Passion to Create Value through Difference Focusing on market share to maintain profits Working in a gradually shrinking HDD market Taking advantage of high quality and lower production cost of ball bearings HDD market forecast Enterprise Nearline 3.5"ATA
Slide 33: Electronic Devices and Components plan targets
Electronic Devices and Components plan targets MinebeaMitsumi Passion to Create Value through Difference Motors will drive overall growth of #2 pillar (Billion Yen) 0 100 200 300 400 500 (Billion Yen) 0 10 20 30 40 50 Motor sales Operating income Electronic device sales Sensing device sales Other sa
Slide 34: LED backlight strategy - matured stage
LED backlight strategy - 1 MinebeaMitsumi Passion to Create Value through Difference LED backlights move to matured stage 1. Sales will decline, but aim to maintain profits Growing market share in China will help make up for major customer's declining order volume. Completion of accelerated deprecia
Slide 35: LED backlight strategy - automobile applications
LED backlight strategy - 2 MinebeaMitsumi Passion to Create Value through Difference Shifting focus to automobile applications 1. Further sales expansion of high-value-added products for high-end automobiles (Aiming for \16 billion sales in FY3/18) 2. Utilizing new Slovakian plant to go on line in e
Slide 36: LED backlight strategy - SALIOT and smart street lights
LED backlight strategy - 3 MinebeaMitsumi Passion to Create Value through Difference For SALIOT (LED lighting) and smart street lights 1. Aiming \5 billion SALIOT sales in mid-term Global sales network has been expanding. Strengthening product lineup further A new show room will be open in August th
Slide 37: Motor strategy
Motor strategy MinebeaMitsumi Passion to Create Value through Difference Profit growth from automobile applications Focusing further on automobiles, which are utilizing more and more motors Pursuing niche markets and cost advantages Utilizing new Slovakian plant in operation in early 2018 BLDC Motor
Slide 38: Sensing device strategy (Minebea business)
Sensing device strategy (Minebea business) MinebeaMitsumi Passion to Create Value through Difference Stable growth in pre-acquisition businesses and synergy with Sartorius MTandH 1. Stable growth in pre-acquisition businesses Promoting sales of passenger seat sensors for the North American automobil
Slide 39: Mitsumi business plan targets
Mitsumi business plan targets MinebeaMitsumi Passion to Create Value through Difference Becoming next pillar as profits surge this fiscal year Impacts of integration 1. Highly strengthened RandD capabilities 2. Positive impact on OP (down arrow) No more worry on dilutive impacts on profits Effects o
Slide 40: Reviewing product portfolio - Aggressive allocation of people and resources
Reviewing product portfolio - 1 MinebeaMitsumi Passion to Create Value through Difference Aggressive allocation of people and resources Core Competitive in niche markets + Permanent Sub-core Innovative?{Non-permanent Non-core Low margin or Price niche Growth Improving profits and Next generation pro
Slide 41: Reviewing product portfolio - Profit sources
Reviewing product portfolio - 2 MinebeaMitsumi Passion to Create Value through Difference Profit sources Core Industry staples Are a constant Sub-core Smartphone components Game consoles HDD components, etc. Non-core Low sales Low margin Low growth potential May 9, 2017 42
Slide 42: Seven Spears of MinebeaMitsumi
Seven Spears of MinebeaMitsumi MinebeaMitsumi Passion to Create Value through Difference The 7 Spears Bearings Motors Sensors Connectors/Switches Power supplies Wireless/Telecommunications/Software Analog semiconductors May 9, 2017 43
Slide 43: Seven spears - Sensors
Seven spears - 3 Sensors MinebeaMitsumi Passion to Create Value through Difference Centering on strain gauge and MEMS sensor technology Exploring possibilities of temperature/environment sensors Expanding business for key IoT components employing strain gauges Strain gauges Gauge pressure sensors Ai
Slide 44: Seven spears - Connectors / Switches
Seven spears - 4 Connectors / Switches MinebeaMitsumi Passion to Create Value through Difference Key words are ultra-precision / water-proof Taking advantage of ultra-precision machining Targeting hard-to-process components - Focusing on high-speed transmission (automobiles and USB Type-C) USB Type-
Slide 45: Seven spears - Power supplies
Seven spears - 5 Power supplies MinebeaMitsumi Passion to Create Value through Difference Win the IoT era with high-quality / high-function Focus on lower than 70W products (quality / reliability) Build sales by exploring existing markets Optimize factory portfolio AC adapters for information equipm
Slide 46: Seven spears - Wireless / Telecommunications / Software
Seven spears - 6 Wireless / Telecommunications / Software MinebeaMitsumi Passion to Create Value through Difference Growth with automobile applications and responding to IoT Aim to capture market for combined components of ADAS (advanced driver assistance system) RandD of next generation antennas Ut
Slide 47: Seven spears - Analog semiconductors
Seven spears - 7 Analog semiconductors MinebeaMitsumi Passion to Create Value through Difference Analog semiconductors - the IoT entrance and exit ways Focus on high-value-added products (such as ADC, etc.) Accelerate RandD of next generation products Strengthen power semiconductor foundry operation
Slide 48: Basic policy of sub-core businesses
Basic policy of sub-core businesses MinebeaMitsumi Passion to Create Value through Difference Improve our competitive edge by boosting productivity across the board and developing new products with an eye to the risk of a shrinking market Optical devices 1. Expand OISs and VCMs for Chinese customers
Slide 49: Developing strategic new products by fusion with Mitsumi's technology
Developing strategic new products by fusion with Mitsumi's technology/products MinebeaMitsumi Passion to Create Value through Difference Developing high value-added solutions that combine input, conversion/control, and output devices Product lineup Input devices Strain gauges MEMS sensors - Pressure
Slide 50: Re-enter haptic device business
Re-enter haptic device business MinebeaMitsumi Passion to Create Value through Difference Development of small actuators by sharing core technologies Small actuators Linear actuators - Sharing core technologies for health care actuators - Circular, Rectangular, Square Electric toothbrush Beauty devi
Slide 51: Development of haptic module
Development of haptic module MinebeaMitsumi Passion to Create Value through Difference Boost automobile device business via fusion with Minebea and Mitsumi technology/products Instrument Cluster Center Stack Display Strain gauges Actuators LED backlights Connectors Aim to expand as key IoT component
Slide 52: Development of IoT-related products
Development of IoT-related products MinebeaMitsumi Passion to Create Value through Difference Many RandD projects enhanced by fusion with Mitsumi's technology/products are currently in the works! Main target markets for IoT products Automobile Healthcare Infrastructure New devices which connect peop
Slide 53: Financial strategy
Financial strategy MinebeaMitsumi Passion to Create Value through Difference 1. Use of cash - Current net interest-bearing debt level is appropriate. - Priority for cash usage is on growth (capital expenditures, MandAs). - Next priority is returning cash to investors. 2. Dividend policy - FY3/2017 I
Slide 54: Cash flow, debt, cap-ex and DandA plan
Cash flow, debt, cap-ex and DandA plan MinebeaMitsumi Passion to Create Value through Difference Net interest-bearing debt and Free cash flow plan (Billion Yen) Net interest-bearing debt Free cash flow 109.9 93.1 97.5 70.9 56.2 32.4 (9.1) 24.2 24.5 (1.1) 36.3 21.9 32.3 50 FY3/14 FY3/15 FY3/16 FY3/17
Slide 55: M and A strategy
M and A strategy MinebeaMitsumi Passion to Create Value through Difference Toward FY3/2021 targets, aiming to capture additional profit sources 1. Aiming for MandAs that will boost machined components business 2. Will explore MandA and alliance opportunities in specific fields and with an eye to par
Slide 56: Business Results
MinebeaMitsumi Passion to Create Value through Difference Business 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 inform
Slide 57: MinebeaMitsumi
MinebeaMitsumi Passion to Greate vote through Difference Business 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 informa