Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 FY2018 Earnings Presentation
34 slides from Minebeamitsumi's earnings presentation, Nov 13, 2017
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2018
MinebeaMitsumi Passion to Create Value through Difference Business Results Second Quarter of Fiscal Year Ending March 31, 2018 MinebeaMitsumi Inc. November 8, 2017
Slide 2: Financial Results; Policy and Strategy
1. Financial Results 2. Policy and Strategy November 8, 2017 2 MinebeaMitsumi Passion to Create Value through Difference
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Managing Executive Officer November 8, 2017 3 MinebeaMitsumi Passion to Create Value through Difference
Slide 4: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Net sales, operating income, ordinary income, and net income hit half year record highs (Millions of yen) FY3/17 FY3/18 Change 1H of FY3/18 1H 1H YoY August Forecast VS. Forecast Net sales 275,133 429,027 +55.9% 436,400 -1.7% Operating income 18,594 41
Slide 5: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Net sales, operating income, ordinary income, and net income hit quarterly record highs (Millions of yen) FY3/17 FY3/18 Change 2Q 1Q 2Q YoY QoQ Net sales 154,844 193,204 235,823 +52.3% +22.1% Operating income 11,623 17,062 24,889 X2.1 +45.9% Ordinary i
Slide 6: Net Sales Quarterly
Net Sales Quarterly Net sales hit quarterly record high ?(diaeresis)Billions of yen?(c) 127.4 168.2 178.7 135.6 120.3 154.8 167.4 196.4 193.2 235.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY3/16 FY3/17 FY3/18 November 8, 2017 6 MinebeaMitsumi Passion to Create Value through Difference
Slide 7: Operating Income Quarterly
Operating Income Quarterly OP hit quarterly record high, OPM recovered to 10%+ (Billions of yen) Operating income Operating margin 12.5 9.8% 14.9 8.9% 15.5 8.7% 8.5 6.3% 7.0 5.8% 11.6 7.5% 16.1 9.6% 14.3 7.3% 17.1 8.8% 24.9 10.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY3/16 FY3/17 FY3/18 November 8, 2017 7
Slide 8: Machined Components Quarterly
Machined Components Quarterly Net sales (Billions of yen) Pivot assemblies Rod-ends/Fasteners Ball bearings Operating income (Billions of yen) Operating income Operating margin 41.0 42.3 40.8 39.8 39.2 37.3 38.5 41.3 40.6 41.7 8.3 9.5 8.9 7.6 7.6 7.9 8.7 8.4 7.9 7.9 8.1 8.0 7.8 8.2 8.0 7.1 6.8 7.7 7
Slide 9: Electronic Devices & Components Quarterly
Electronic Devices & Components Quarterly Net sales (Billions of yen) Operating income (Billions of yen) Other Sensing devices Electronic devices Motors Operating income Operating margin 86.3 0.7 125.8 0.7 137.8 0.7 95.7 1.2 80.9 0.7 117.4 0.9 128.7 1.2 114.6 1.3 104.4 0.7 133.1 1.0 8.2 9.7 9.4 8.6
Slide 10: Mitsumi Business
Mitsumi Business 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. Quarterly Net sales (Billions of yen) 34.2 49.5 40.4 39.5 32.6 44.6 47.8 (*1) 52.9 48.1 60.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q F
Slide 11: Net Income Quarterly
Net Income Quarterly Net income hit quarterly record high (Billions of yen) Income attributable to owners of the parent Net income per share (yen) 10.1 7.7 11.8 6.8 3.2 9.6 12.2 16.2 14.2 20.1 26.9 20.6 31.6 18.2 8.5 25.5 32.4 39.7 33.5 47.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY3/16 FY3/17 FY3/18 Novembe
Slide 12: S.G. & A. Expenses Quarterly
S.G. & A. Expenses Quarterly (Billions of yen) S.G. & A. expenses S.G. & A. to sales ratio 17.0 18.3 18.4 18.1 17.4 18.7 17.4 23.3 23.8 25.3 13.3% 10.9% 10.3% 13.3% 14.5% 12.1% 10.4% 11.9% 12.3% 10.7% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY3/16 FY3/17 FY3/18 November 8, 2017 12 MinebeaMitsumi Passion to Cr
Slide 13: Inventories Quarterly
Inventories Quarterly (Billions of yen) 94.5 118.1 126.7 103.0 87.0 96.4 96.7 120.4 134.0 163.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY3/16 FY3/17 FY3/18 November 8, 2017 13 MinebeaMitsumi Passion to Create Value through Difference
Slide 14: Capital Expenditure & Depreciation Yearly
Capital Expenditure & Depreciation Yearly (Billions of yen) Capital Expenditure Depreciation & Amortization Expenses 20.7 23.7 37.6 28.8 43.9 34.8 31.8 28.2 22.3 14.9 48.0 33.0 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18 1H Mar.'18 Forecast November 8, 2017 14 MinebeaMitsumi Passion to Create Value thro
Slide 15: Net Interest-Bearing Debt/Free Cash Flow Yearly
Net Interest-Bearing Debt/Free Cash Flow Yearly (Billions of yen) Net interest-bearing debt Free cash flow 109.9 93.1 97.5 70.9 67.4 45.0 24.2 24.5 -1.1 36.3 11.5 39.3 Mar.'14 Mar.'15 Mar.'16 Mar.'17 Mar.'18 1H Mar.'18 Forecast November 8, 2017 15 MinebeaMitsumi Passion to Create Value through Diffe
Slide 16: Share Buyback
Share Buyback 1. Resolution on the buyback at the Board Meeting on February 13, 2017 (1) Type of shares to be repurchased: Common stock of MINEBEA MITSUMI (2) Number of shares: Up to 12 million shares (3) Amount: Up to 15 billion yen (4) Period: From February 14, 2017 to September 22, 2017 2. Cumula
Slide 17: Forecast for Fiscal Year Ending March 31, 2018
Forecast for Fiscal Year Ending March 31, 2018 Expecting net sales, operating income, ordinary income & net income hit record highs (Millions of yen) FY3/17 Full Year FY3/18 1H 2H Revised Forecast Full Year Revised Forecast YoY Net sales 638,926 429,027 380,973 810,000 +26.8% Operating income 49,015
Slide 18: Forecast for Business Segment
Forecast for Business Segment (Millions of yen) FY3/17 Full Year 1H Actual Result 2H Revised Forecast Full Year Forecast YoY Net sales 638,926 429,027 380,973 810,000 +26.8% Machined components 156,310 82,374 80,626 163,000 +4.3% Electronic devices and components 441,615 237,453 180,547 418,000 -5.3
Slide 19: Management Policy & Business Strategy
MinebeaMitsumi Passion to Create Value through Difference Management Policy & Business Strategy November 8, 2017 Yoshihisa Kainuma Representative Director, CEO & COO November 8, 2017 19
Slide 20: Evaluation of 1H (FY3/18) Results
Evaluation of 1H (FY3/18) Results MinebeaMitsumi Passion to Create Value through Difference Both sales and income greatly surpass half-year records! Key Points from 1H (black circle) All products from Mitsumi business contributed to boosting earnings (black circle) LED backlights production volume r
Slide 21: Key Points of Full Year Revised Forecast (FY3/18)
Key Points of Full Year Revised Forecast (FY3/18) MinebeaMitsumi Passion to Create Value through Difference Key Points from 2H Conservative forecast for 2H due to uncertainty of smartphone components (black circle) Machined components: Productivity improvement of ball bearing and recovery of rod-end
Slide 22: Operating income analysis
Operating income analysis MinebeaMitsumi Passion to Create Value through Difference Former Minebea business boosts earnings as well! (billions of yen) 49.0 +1.5 -0.7 -3.5 +9.0 +3.4 +5.6 +17.7 73.0 Including Mistumi OP of 2.3 bn yen FY3/17 OP Actual FY3/17 Expense for integration FY3/18 Expense for i
Slide 23: Ball Bearing Business Strategy
Ball Bearing Business Strategy MinebeaMitsumi Passion to Create Value through Difference Establish monthly production of 285 million units/month this fiscal year for substantial increase in income (black circle) External sales demand continues to be robust (1) Automotive, (2) high-end home appliance
Slide 24: LED Backlight Business Strategy
LED Backlight Business Strategy MinebeaMitsumi Passion to Create Value through Difference Business opportunities for LED backlights still continue! 1. This year's forecast at mostly unchanged from original plan (black circle) Solid demand for our ultra-thin processing technology (black circle) Compl
Slide 25: New development of high sensitivity/high resistance strain gauge (MINEGE)
New development of high sensitivity/high resistance strain gauge (MINEGETM) MinebeaMitsumi Passion to Create Value through Difference "Gauge of dreams" a reality after 15 years of R&D What's Outstanding: Solving the "curling" issue Resolved the "curling" issue by controlling expansion coefficient &
Slide 26: Mitsumi Business Strategy
Mitsumi Business Strategy MinebeaMitsumi Passion to Create Value through Difference Established as third pillar of earnings with ongoing improvements in profitability Tremendous contribution on profit 1. OIS/VCM productivity improvements will progress, and the business will continue to grow 2. Mecha
Slide 27: Aiming for Medium- to Long-Term Growth: Automotive Applications
Aiming for Medium- to Long-Term Growth: Automotive Applications MinebeaMitsumi Passion to Create Value through Difference Automotive innovation & high functionality to lead to creation of new business opportunities Expecting growth of ball bearings/motors/sensors/connectors/coils/antennas/wireless m
Slide 28: Major Areas Driving Future Growth
Major Areas Driving Future Growth MinebeaMitsumi Passion to Create Value through Difference Major growth areas 5 pillars Smartphones Game consoles Machined components (Robots/Aerospace) Automotive ? New products about to be taken to market o Haptics o 6 axis sensors o High sensitivity /high resistan
Slide 29: Medium-Term Business Outlook
Medium-Term Business Outlook MinebeaMitsumi Passion to Create Value through Difference Big potential to achieve 1 trillion yen sales and/or 100 billion yen OP a year ahead of schedule! Medium-Term Business Outlook (billions of yen) Figures announced on May 2017 (billions of yen) 1,000 800 600 400 20
Slide 30: Medium-Term Business Outlook by segment
Medium-Term Business Outlook MinebeaMitsumi Passion to Create Value through Difference Raising medium-term numerical targets in every segment M&A +10 billion yen (in OP) Machined components FY3/20 target operating income (Y)51 billion Monthly ball bearing production 300 million units Early achieveme
Slide 31: Strengthening Machined Components Business through M&As - C&A Tool Engineering
Strengthening Machined Components Business through M&As - 1 MinebeaMitsumi Passion to Create Value through Difference Acquisition of all shares of US-based C&A Tool Engineering Name C&A ToolEngineering,Inc Location Indiana, USA Principal Business Precision machinery metal machining (1) Medical (2) A
Slide 32: Strengthening Machined Components Business through M&As - Mach Aero
Strengthening Machined Components Business through M&As - 2 MinebeaMitsumi Passion to Create Value through Difference Acquisition of all shares of Mach Aero group Mach Aero Name Mach Aero Bretigny Rectification SAS (MAB) Location France, suburb of Paris Principal Business Development, manufacturing,
Slide 33: Shareholders Return
Shareholders Return MinebeaMitsumi Passion to Create Value through Difference Huge jump on dividend forecast in response to the new financial forecast FY3/17 Actual FY3/18 Actual/Forecast Interim dividend 7 yen/share (right arrow) 13 yen/share Previous forecast: 10 yen/share Year-end dividend 7 yen/
Slide 34: Business Results MinebeaMitsumi Inc.
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