Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q1 2022 Earnings Presentation
34 slides from Minebeamitsumi's earnings presentation, Aug 4, 2021
Slide 1: Business Results First Quarter of Fiscal Year Ending March 31, 2022
Business Results First Quarter of Fiscal Year Ending March 31, 2022 MinebeaMitsumi Inc. August 4, 2021
Slide 2: Summary of Consolidated Business Results for 1Q
Summary of Consolidated Business Results for 1Q Net sales and Operating income hit 1Q record highs FY3/21 FY3/22 Change (Millions of yen) 1Q 4Q 1Q YoY QoQ Net sales 187,463 250,985 248,305 +32.5% -1.1% Operating income 3,409 10,692 19,628 X5.8 +83.6% Profit before taxes 3,319 9,928 19,603 X5.9 +97.5
Slide 3: Net Sales, Operating Income/margin
Net Sales, Operating Income/margin (Billions of yen) Net sales Operating income Operating margin 279.5 274.3 275.7 267.7 251.0 248.3 226.9 204.4 187.5 23.3 19.6 19.6 19.6 17.5 12.4 10.7 7.9% 8.7% 7.0% 7.1% 6.4% 3.3 5.5% 3.4 4.3% 1.8% 1.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 Augu
Slide 4: 1Q Actual: Differences from the Forecast as of May
1Q Actual: Differences from the Forecast as of May (Billions of yen) +9.8 +1.1 △0.0 248.3 236.0 Net Sales 19.6 18.0 Operating Income August 4, 2021 4
Slide 5: Machined Components
Machined Components Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 24.8% 23.2% 22.6% 21.2% 21.1% 20.9% 20.1% 20.0% 46.1 45.1 45.2 44.5 18.2% 44.1 44.1 6.2 10.9 6.4 6.3 5.6 10.7 39.7 5.5 5.5 38.0 10.2
Slide 6: Electronic Devices & Components
Electronic Devices & Components Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 7.9% 8.7% 6.6% 5.6% 4.7% 6.0% 3.0% 2.7% -0.7% 111.5 0% 1.1 101.3 8.6 1.0 98.6 1.1 94.9 8.2 89.0 8.7 90.7 1.1 90.4 1.1 8.9 0
Slide 7: Mitsumi Business
Mitsumi Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.2% 8.7% 7.1% 6.7% 6.8% 6.6% 3.6% 0.0% 114.3 0% -1.0% 110.7 100.9 79.2 79.4 76.8 9.9 62.4 56.6 7.1 7.3 7.6 49.7 5.1 4.2 2.9 0.0 (0.6) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 8: U-Shin Business
U-Shin Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 5.4% 4.5% 4.5% 2.2% 2.4% 1.0％ 0% -0.9% -0.2% 36.9 1.7 1.4 -7.9% 32.0 1.2 31.5 30.9 32.3 30.7 30.7 0.7 0.8 -13.9% 26.6 0.4 (0.1) (0.3) 15.6 Excluding ¥0.4bn of one time cost in 1Q (2.2) (2
Slide 9: 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) 19.2 16.1 14.1 14.7 13.2 46.4 10.4 39.5 36.1 34.1 32.3 7.2 25.4 2.2 2.2 17.6 5.2 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22
Slide 10: Inventory
Inventory (Billions of yen) 204.4 186.5 195.5 181.4 175.9 174.4 169.8 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 August 4, 2021 10
Slide 11: Net interest-bearing debt / Free cash flow
Net interest-bearing debt / Free cash flow *JGAAP for FY3/18 Net interest-bearing debt * Free cash flow (Billions of yen) 94.5 84.4 75.2 60.0 52.5 46.5 42.9 37.2 51.8 23.2 21.7 1.6 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22 1Q Forecast *Net interest-bearing debts :”Bonds and borrowings” – (“Cash and
Slide 12: Forecast for Fiscal Year Ending March 31, 2022
Forecast for Fiscal Year Ending March 31, 2022 Made upward revision to full-year forecast (1H only) FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 537,000 513,000 1,050,000 +6.2% Operating income 51,166 45,000 42,000 87,000 +70.0% Profit before taxes 49,5
Slide 13: Forecast for Business Segment
Forecast for Business Segment FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY (Adjusted) Net sales 988,424 537,000 513,000 1,050,000 +6.2% Machined components 157,411 91,000 84,000 175,000 +11.2% Electronic devices and components 345,595 190,000 165,000 355,000 +2.7% Mitsum
Slide 14: Today's Points
Today’s Points 1Q net sales and operating income both hit record highs. (X5.8 year-on-year) Diversified business portfolio offsets negative factors, such as Overall weak demand for aircraft-related products, declining demand due to semiconductor shortage, and rising raw material prices. Made u
Slide 15: Ball Bearings
Ball Bearings Miniature/Small-sized Ball Bearing Key Points Production Capacity (millions of units/month) 1 Form part of the multi-purpose factory into a miniature/small- 365 ’23 ¥10bn investment sized ball bearing factory! 345 ’22 *excluding building Establish monthly capacity of 365 million units
Slide 16: [Reference] Outlook of Aircraft Market
[Reference] Outlook of Aircraft Market Trend of commercial aircraft production rate (Source: MinebeaMitsumi) External environment Possibility of moving - Recovery of passenger demand production plan - Initiatives to reduce CO2 in airlines forward? Increasing demand for new production of energy-savi
Slide 17: Motors
Motors Key Points Examples of automotive motors that are expected to grow exponentially 1 Continually launching new products/large projects for Safety Comfort automotive motors DC motor Stepping motor for • Resolver for EV traction motors for EPB HVAC • Cooling fan for EV rechargeable batteries • DC
Slide 18: Analog Semi-conductors
Analog Semi-conductors Analog semiconductor production sites Key Points 1 Improvements in tangible Chitose (6-inch) resources - Leverage 6-inch/8-inch wafer fabs to increase efficiency - Make an additional ¥10+ bn investment in an Wafer 8-inch wafer fab to up company-wide Takatsuka (6-inch) producti
Slide 19: [Reference] Outlook of Analog Semi-conductor Market
[Reference] Outlook of Analog Semi-conductor Market Analog Semi-conductor Market Outlook of Analog Semi-conductor Market* 2020 World semi- (billion USD) conductor Market CAGR 10% 360 (’20-’23) 74 billion USD* 71 Interface 68 Amp / Comparator Signal Converter CAGR 59 56 5-6% 54 Power (’23-’30) Manage
Slide 20: Optical Devices / Machanical Components
Optical Devices / Machanical Components Key Points 1 Start of new OIS for major customers going smoothly - Off to a good start again this fiscal year => Huge year-on-year increases in sales and profit thanks to increasing adoption rate of high value- added models - Continue to respond proactively to
Slide 21: Impact of COVID-19 in Southeast Asia
Impact of COVID-19 in Southeast Asia Despite sporadic outbreaks of infection, overall operations are about the same as normal (Held nearly 200 CEO-led meetings on countermeasures in 18 months) Capacity utilization rates of major southeast Asian locations (as of July 31, 2021) 100% 80% 60% 95% 93% 95
Slide 22: Share Buyback
Share Buyback Resolution of share buyback (August 4, 2021) - Number of shares: Up to 3 million shares (equal to 0.74% of total issued shares excluding treasury shares) - Amount: Up to 10.0 billion yen - Period: From August 5, 2021 to October 29, 2021 - Purpose: In order to improve return on sharehol
Slide 23: ESG Topics (1)
ESG Topics (1) Donations to Single-Parent Support Organization: 70th Anniversary Project We wish to express our deepest sympathies to those who are experiencing difficulties due to the spread of the novel coronavirus, and have decided to make the following charitable donations. - Purpose: Support si
Slide 24: ESG Topics (2)
ESG Topics (2) Completion of COVID-19 workplace vaccination in Japan - Target: Employees and their families, etc. of MinebeaMitsumi group who wish to get vaccination - Date: June 24, 2021 and onwards - Location: Tokyo HQ, Karuizawa, Hamamatsu, Fujisawa, Hiroshima, Chitose Completed to nearly 13,000
Slide 25: Upside from M&A!
Estimated breakdown of ¥100 bn OP after COVID-19 From the FY3/21Q3 Investor Meeting Presentation on Feb. 5, 2021 The possibility of realizing the estimated breakdown announced in 2017 has been raised toward FY3/23! Estimated breakdown (FY3/23) ●Machined Components ¥50 bn ●Electronic Devices & ¥30 bn
Slide 26: 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 27: Reference
Reference August 4, 2021 27
Slide 28: Machined Components
Machined Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Other Operating income Operating margin 25.4% 24.9% 24.2% 22.0% Excluding ¥0.7bn of 19.8% 188.3 PPA impact in 4Q 180.9 47.8 176.4 175.0 7.1 29.5 43.4
Slide 29: Electronic Devices & Components
Electronic Devices & Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin Including ¥19.0 bn of business transfer impact for Smart Products 451.5 3.8 35.7 387.3 379.4 4.2 363.8 4.
Slide 30: Mitsumi Business
Both net sales and operating income in FY3/17 include premerger results. Mitsumi Business JGAAP for FY3/18. Net sales (Billions of yen) Operating income (Billions of yen) Including following business transfer Operating income Operating margin impact Smart Products +¥19.0bn Home Security Units +¥2.5b
Slide 31: U-Shin Business
As a result of change of the fiscal year end, FY12/17 consists of 13 months. U-Shin Business Both net sales and operating income until FY12/18 are pre-merger results. FY3/20 does not include Jan.-Mar. 2019 results. JGAAP until FY12/18 Net sales (Billions of yen) Operating income (Billions of yen) Op
Slide 32: S.G.&A. expense / ratio
S.G.&A. expense / ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 30.1 29.0 26.7 27.3 27.0 27.5 26.6 26.1 25.2 13.1% 13.4% 11.9% 11.5% 12.1% 9.8% 10.0% 9.5% 10.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 August 4, 2021 32
Slide 33: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense *JGAAP for FY3/18 (Billions of yen) Capital expenditure Depreciation & Amortization expenses 70.0 54.2 54.2 50.1* 48.6 46.2 45.5 45.0 36.4 31.6 16.4 10.7 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22 1Q Forecast * Capital expenditures of FY3/20 do not include the increa
Slide 34: ROIC (Return On Invested Capital)
ROIC for U-Shin business are pre-merger result and based ROIC (Return On Invested Capital) on CY / JGAAP, and are not included in the Total. JGAAP until FY3/18 MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/accounts receiv