Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2023 Earnings Presentation
47 slides from Minebeamitsumi's earnings presentation, May 11, 2023
Slide 1: Business Results, Fiscal Year Ended March 31, 2023
Business Results Fiscal Year Ended March 31, 2023 MinebeaMitsumi Inc. May 11, 2023
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Management Policy & Business Strategy May 11, 2023 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, President COO & CFO May 11, 2023 3
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales, OP, etc. all hit record highs (Net sales increased for 11 consecutive terms, OP increased for 2 consecutive terms) FY3/23 Forecast FY3/22 FY3/23 Change (Millions of yen) (February 2023 Forecast) Full Year Full Year YoY Full Year VS. Forecast Net sa
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q Net sales hit a 4Q record high Operating income hit a quarterly record high FY3/22 FY3/23 Change (Millions of yen) 4Q 3Q 4Q YoY QoQ Net sales 289,532 371,424 339,718 +17.3% -8.5% Operating income 21,671 26,432 34,441 +58.9% +30.3% Profit before taxes 2
Slide 6: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales Operating income Operating margin 1,450.0 1,292.2 Special factors 14.5 1,124.1 978.4 988.4 101.5 92.1 95.0 58.6 51.2 8.2% 7.9% 6.0% 6.6% 5.2% FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast May 11, 2023 6
Slide 7: Increase/Decrease & Special Factors of Full Year OP
Increase/Decrease & Special Factors of Full Year OP (Billions of yen) Increase/decrease factors Special factors Structural reform costs FX Forward contract Decrease of business Gain on the sale of former Tokyo HQ etc. Gain on the sale of former Tokyo HQ etc. FX Forward contract Structural reform cos
Slide 8: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin Net sales 1Q 2Q 3Q 4Q Full Year (Billions of yen) Operating income Operating margin FX forward contract -1.3 -3.0 -2.9 -1.5 -8.7 Others - - 1.7 21.5 23.2 Total -1.3 -3.0 -1.3 20.0 14.5 *Excl. FX forward contract 371.4 330.0 339.7 304.3 282.0 289.5 35.9* 274.3 275
Slide 9: Improvement of Understandability by Changing Segment Names
Improvement of Understandability by Changing Segment Names Enhancing corporate value by matching name and reality Segment name（Old） Segment name（New ） Abbreviation Machined Components Precision Technologies PT Electronic Devices Motor, Lighting & Sensing MLS & Components MITSUMI Business Semiconduct
Slide 10: 4Q Actual: Differences from the Forecast as of February
4Q Actual: Differences from the Forecast as of February (Billions of yen) 347.5 339.7 Net Sales Special factors Special 20.2 factors Special 12.7 factors Special factors -1.5 -6.9 34.4 32.9 Special factors Operating -4.4 Income May 11, 2023 10
Slide 11: Machined Components / Precision Technologies (PT)
Machined Components / 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% 210.0 23.3% 22.0% 22.9％ 197.3 19.0 19.8% 21.8% 180.9 15.9 177.5 Special factors FX forward 24.5 3
Slide 12: Machined Components / Precision Technologies (PT)
Machined Components / 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% 24.8% 24.5% 24.4% 22.9% 20.9% 22.0% 20.1% 20.0% 51.3 50.5 18.2% 17.7% 49.1 3.9 3.3 46.0 46.
Slide 13: Electronic Devices & Components / Motor, Lighting & Sensing (MLS)
Electronic Devices & Components / 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% 4.2% 405.0 3.2％ 4.0 379.4 363.8 371.0 366.3 38.0 4.3 4.6 4.2 4.3 32.5 32.6
Slide 14: Electronic Devices & Components / Motor, Lighting & Sensing (MLS)
Electronic Devices & Components / 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% 5.6% 4.7% 6.0% 6.5% 4.1% 4.1% 3.3% 2.7% 2.2% 0.2% 0% -4.8% 98.6 98.0 94.9 96.2 96.2
Slide 15: MITSUMI Business / Semiconductors & Electronics (SE)
MITSUMI Business / Semiconductors & Electronics (SE) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.8% 530.5 9.0% 515.0 8.2% 6.6％ 6.4% 8.1% 429.1 5.5% Special factors FX forward contract -3.1 Others -2.0 Total -5.1 361.0 47.8 41.8 42.7 42.0 292.2 E
Slide 16: MITSUMI Business / Semiconductors & Electronics (SE)
MITSUMI Business / Semiconductors & Electronics (SE) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 182.7 11.4% 10.2% 11.3% 9.5% 10.5% 9.5% 8.7% 6.8% 6.6% 3.6% 0.5% 0% -1.0% 134.2 137.4 17.3 15.7 123.6 15.2 114.3 110.7 111.0 107.2 11.3 86.8 10.2 9.9
Slide 17: U-Shin Business / Access Solutions (AS)
As a result of change of the fiscal year end, U-Shin Business / Access Solutions (AS) FY3/20 does not include Jan.-Mar. 2019 results. Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 315.0 11.5% 2.1% 2.3％ 3.2% 0.5% 1.1% 0% -1.8% Special factors 20.2 22
Slide 18: U-Shin Business / Access Solutions (AS)
U-Shin Business / Access Solutions (AS) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 31.3% 69.5 4.5% 5.4% 2.9% 1.5% 0.6% 0% -0.1% -0.2% -0.9% -0.9% 46.3 21.7 -7.9% 42.9 -13.9% 39.9 36.9 36.1 36.0 32.3 32.7 30.7 26.6 15.6 1.2 1.7 1.2 0.6 0.3 (0.1) (
Slide 19: 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) 77.0 68.9 70.0 187.6 170.1 171.4 46.0 38.8 111.1 95.0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast May 11, 2023 19
Slide 20: 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) 33.1 80.6 20.4 20.1 18.4 16.1 15.5 14.7 13.1 13.2 50.4 48.6 45.4 10.7 38.2 39.5 36.1 32.3 7.2 31.9 26.4 2.2 17.6 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 21: Inventory
Inventory (Billions of yen) 264.4 272.8 275.9 263.1 224.6 219.3 214.1 204.4 195.5 186.5 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 FY3/22 FY3/23 May 11, 2023 21
Slide 22: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 201.7 160.0 84.4 86.9 75.2 58.0 42.9 23.2 14.8 (62.2) FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash equivalents”＋Time deposit mo
Slide 23: Forecast for Fiscal Year Ending March 31, 2024
Forecast for Fiscal Year Ending March 31, 2024 Full year forecast for net sales to hit record high FY3/23 FY3/24 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,292,203 663,000 787,000 1,450,000 +12.2% Operating income 101,522 28,000 67,000 95,000 -6.4% Profit before taxes 96
Slide 24: 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 1,292,203 663,000 787,000 1,450,000 +12.2% Precision Technologies 197,300 99,500 110,500 210,000 +6.4% Motor, Lighting & Sensing 366,275 187,000 218,000 405,000 +10.6% Semiconductors & E
Slide 25: Management Policy & Business Strategy
Management Policy & Business Strategy May 11, 2023 Yoshihisa Kainuma Representative Director, Chairman CEO May 11, 2023 25
Slide 26: Summary of Fiscal Year ended 3/23
Summary of Fiscal Year ended 3/23 Net sales, operating income, and net profit all hit record highs. Operating income totaled 100 billion yen partly due to one-time gains, despite unexpected factors such as the automobile sector’s lagging recovery and slowdown in the smartphone and data storage-r
Slide 27: Key Points of FY3/24 Forecast
Key Points of FY3/24 Forecast Aiming for record profits on a business basis excluding special factors Expect market recovery in data centers, automobiles, etc. Precision Technologies (PT): Market recovery, including aircraft, will be in the second half of the year Motor, Lighting & Sensing (MLS)
Slide 28: Long-term Trend of Sales and OP
Long-term Trend of Sales and OP Toward 2.5 trillion yen in sales and 250 billion yen in OP 2,500 250 Record sales for 1,750 10 consecutive terms! 1,600 185 1,450 *FY3/24-FY3/26 plan does not include additions from new M&As. 1,292 145 102 95 (Billions of yen) Sales 256 OP 13 FY3/09 FY3/10 FY3/11 FY3/
Slide 29: Mid-term Business Plan
Mid-term Business Plan Real operating margin* to reach 15% level thanks to mix improvement Increase in sales of bearing, rod-ends and analog semiconductors as well as improvement in profit margin of other products Net Sales Real operating margin* Operating income Operating margin Add-on by M&A (imag
Slide 30: Securing Mid-term Business Plan (1)
Launch pad to Accelerate Natural Growth Securing Mid-term Business Plan (1) Catch the trends and changes to expand business opportunities Electrification Shift to EVs, Robotics (100mil. Unit) 44 Bearings Super Bearings 34 39 32 Automation CASE, Robotics Medium sized Bearings High-speed Bea
Slide 31: Securing Mid-term Business Plan (2)
Launch pad to Accelerate Natural Growth Securing Mid-term Business Plan (2) Generate new biz. opportunity for CASE generation Connected Shared 5G antenna / Combo antenna Smart Key (UWB) WiFi/BT, GNSS, LTE module E-latch High speed transmission connector HMI etc. Flash handle etc. Auton
Slide 32: "INTEGRATION Products" to Accelerate Future Growth
“INTEGRATION* Products” to Accelerate Future Growth INTEGRATION of 8 spears (automotive example) INTEGRATED 8 Spears HMI Human Machine Interface Systems for tactile feedback LATM Limited Angle Torque Motor High-speed, high-precision control of LiDAR mirrors HVAC LIN Heating, Ventilation, and Air
Slide 33: Precision Technologies (PT) Targets
Precision Technologies (PT) Targets Growth in ball bearing plus Ball bearing sales Pivot assembly sales Operating income Rod-end/fastener sales Operating margin recovery & growth in aerospace (Billions of yen) 265.0 Key Points 25.0 235.0 Ball bearing sales 22.0 1 Steady growth over the medium to lon
Slide 34: Growth Potential of Bearing Business
Growth Potential of Bearing Business Growth in automotive and data center applications due to expansion of Market share and increase of demand Automotive Data center applications Increase in the number of bearings used Widespread use of AI such as ChatGPT per vehicle due to higher functionality
Slide 35: Motor, Lighting & Sensing (MLS) Targets
Motor, Lighting & Sensing (MLS) Targets Growth to accelerate Motor sales Sensing device sales Operating income Operating margin with motors as profit driver Electronic device sales Other sales (Billions of yen) Key Points 510.0 5.0 475.0 43.0 4.0 Motors 40.0 1 Top-line growth in HVAC, LiDAR, actuato
Slide 36: Semiconductors & Electronics (SE) Targets
Semiconductors & Electronics (SE) Targets Maintain high profit and Sales Operating income Operating margin achieve further growth (Billions of yen) 605.0 Key Points 545.0 530.5 Optical devices 515.0 1 Increase in the adoption rate of our products keeps sales steady 429.1 65.0 Analog semiconductors 5
Slide 37: Analog Semiconductor Business Update
Analog Semiconductor Business Update Maximize each own strength to realize 100 bil. within FY 3/25 and grow upward Focused KSF/ 8 focused drivers Target Add-on theme Sales structure Organic products Characteristics Expansion image IGBT EV/Industrial Power Mass Semiconductor production MITSUMI IGBT S
Slide 38: Access Solutions (AS) Targets
Access Solutions (AS) Targets Significant improvement in profit Sales Operating income Operating margin through market recovery and M&A effects (Billions of yen) 365.0 340.0 Key Points 315.0 1 Realizing the benefits of restructuring as the market recovers 22.3 22.0 194.7 18.0 2 Cutting costs utilizi
Slide 39: E (Environment) Environmental Initiatives
E (Environment) Environmental Initiatives Strengthen various initiatives as a growth strategy Keywords Volume of avoided CO2 emissions and new targets 1 Expand “MMI Beyond Zero” kt-CO2 New target 主なポイント Further increasing the volume of avoided CO2 4,000 emissions ＋50% Setting new targets +1,700 2 Im
Slide 40: S (Social) the Opening of Tokyo X Tech Garden
S (Social) the Opening of Tokyo X Tech Garden Further enhancement of management efficiency and increase synergistic effects Keywords 1 Secure talented human resources From new graduates to career hires, acquire and develop talented and diverse human resources 2 Stimulating internal and external exch
Slide 41: G (Governance) New Management Structure
G (Governance) New Management Structure Division of roles for strategy and execution toward next generation Corporate Philosophy Company Credo Management Strategy Yoshihisa Kainuma CEO＆COO CEO Execution Execution items Katsuhiko Yoshida CFO COO&CFO Execution Strategy Actions for execution May 11
Slide 42: Dividends
Dividends Year-end 20 yen/share Annual 40 yen/share FY3/23 Increased 2 yen from the previous fiscal year’s result of 18 yen The annual dividend is targeted around 20% of FY3/24 consolidated payout ratio in principle, maintaining a Plan sustainable and stable dividend in total consideration of busine
Slide 43: 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 44: Reference
Reference May 11, 2023 44
Slide 45: 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 36.8 35.6 31.9 32.8 32.7 30.1 30.4 29.0 27.5 25.2 26.1 13.4% 13.0% 11.5% 12.1% 11.5% 10.8% 11.3% 10.8% 10.0% 10.5% 9.9% 9.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 FY3/22 FY3/23 May 11, 2023 45
Slide 46: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses ** 147.0 ** 73.5 73.0 57.0 50.1* 46.2 48.6 53.1 45.5 45.2 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Forecast * Capital expenditures of FY3/20 do not include the increase of asset from lease contract
Slide 47: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) ROIC for U-Shin (AS) business is pre-merger result and based on JGAAP, and is not included in the Total of FY3/19. MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/accounts receivable + inve