Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q3 2023 Earnings Presentation
30 slides from Minebeamitsumi's earnings presentation, Feb 3, 2023
Slide 1: Business Results Third Quarter of Fiscal Year Ending March 31, 2023
Business Results Third Quarter of Fiscal Year Ending March 31, 2023 MinebeaMitsumi Inc. February 3, 2023
Slide 2: Summary of Consolidated Business Results for 3Q
Summary of Consolidated Business Results for 3Q Net sales hit a quarterly record high FY3/22 FY3/23 Change (Millions of yen) 3Q 2Q 3Q YoY QoQ Net sales 304,348 330,021 371,424 +22.0% +12.5% Operating income 25,832 26,394 26,432 +2.3% +0.1% Profit before taxes 25,122 28,184 20,463 -18.5% -27.4% Profi
Slide 3: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin Net sales 1Q 2Q 3Q Excl. FX 12.8 21.0 27.4 (Billions of yen) Operating income FX effects ＋2.8 +8.4 ＋1.9 FX forward Contract -1.3 -3.0 -2.9 Operating margin Actual 14.3 26.4 26.4 Special factors 371.4 such as the lockdown in Shanghai -8.3 in 1Q 330.0 304.3 282.0 2
Slide 4: 3Q Actual: Differences from the Forecast as of November
3Q Actual: Differences from the Forecast as of November (Billions of yen) 371.4 357.0 Net Sales 34.0 Operating 26.4 Income February 3, 2023 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 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% 3.9 3.3 46.0 46.4 12.5 44.1 44.1 44.3 11.9 11.6 43.1 4.7
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 8.7% 5.6% 4.7% 6.0% 6.5% 4.1% 4.1% 3.3% 2.7% 2.2% 0.2% 98.6 98.0 94.9 96.2 1.1 93.7 1.0 8.7 90.7 1.1 90.4 0.9 90.7 1.4 90.7
Slide 7: MITSUMI Business
MITSUMI Business 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% -1.0% 134.2 137.4 17.3 15.7 15.2 114.3 110.7 111.0 107.2 11.3 86.8 10.2 9.9 79.4 9.1 76.8 7.6 56.6 5.1 2.9 (0.6) 1Q 2Q 3Q 4
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% 2.9% 1.5% 0.6% 46.3 0% 42.9 -0.1% -0.2% -0.9% -0.9% 39.9 36.9 1.7 36.1 36.0 -7.9% 32.7 1.2 1.2 30.7 32.3 -13.9% 0.6 26.6 0.3 (0.1) (0.0) (0.3) (0.3) 15.6 (2.2) (2.5) 1Q 2Q 3Q 4Q
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) 20.4 20.1 18.4 16.1 15.5 14.7 13.2 50.4 13.1 48.6 45.4 10.7 38.2 39.5 36.1 32.3 31.9 7.2 26.4 2.2 17.6 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 10: Inventory
Inventory (Billions of yen) 264.4 272.8 275.9 224.6 219.3 214.1 204.4 195.5 186.5 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 FY3/22 FY3/23 February 3, 2023 10
Slide 11: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 211.8 190.0 84.4 86.9 75.2 46.5 42.9 23.2 21.7 14.8 (60.2) (105.6) FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/23 1Q-3Q Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash eq
Slide 12: Forecast for Fiscal Year Ending March 31, 2023
Forecast for Fiscal Year Ending March 31, 2023 Full-year forecast revised Net sales, OP, etc. all to hit record highs FY3/22 FY3/23 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,124,140 581,061 718,939 1,300,000 +15.6% Operating income 92,136 40,649 59,351 100,000 +8.5% Pro
Slide 13: Forecast for Business Segment
Forecast for Business Segment FY3/22 FY3/23 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,124,140 581,061 718,939 1,300,000 +15.6% Machined components 177,470 97,688 97,312 195,000 +9.9% Electronic devices and components 371,023 179,405 184,595 364,000 -1.9% MITSUMI busines
Slide 14: Today's Points (1)
Today's Points (1) 3Q operating income fell short of our target due to declining sales resulting from the slowdown in the market, especially the data center related market, as well as sharp exchange rate fluctuations. Overall In light of the above, operating capacity will be curtailed in 4Q, but
Slide 15: Today's Points (2) Revised full-year forecasts
Today's Points (2) Revised full-year forecasts Achieve operating profit of 100 billion yen including one-off gains despite restructuring to further strengthen our business structure Upside of negative goodwill associated with the recent M&A Downside of lower sales and the impact of a sharply det
Slide 16: Vision for the Next Fiscal Year
Vision for the Next Fiscal Year Business profits will increase Improvements in Semiconductor shortage: All affected markets will recover external environment COVID-19: Back to normal due to “living with COVID-19” Aircraft related: Will fully recover End of inventory adjustment and recovery of automo
Slide 17: Super Bearings to Go on Sale
Super Bearings to Go on Sale Innovative precision enhancements improve rotational performance Contribution to solving social issues Rotational Difference At the motor torque Between our conventional Power value and Super bearings Approx. 40% Approx. 4 ~ 5% Reduction! Reduction! Within this FY, Expec
Slide 18: Creating Synergies in Access Products
Creating Synergies in Access Products Synergies between Minebea AccessSolutions (formerly Honda Lock) and U-Shin Product synergies Location synergies (1) (Promoting cross-selling) (Production capacity and absorption of expansion) U-Shin MAS U-Shin MAS Door latches 〇 × China (Zhongshan) 〇 × Spindle d
Slide 19: Share Buyback
Share Buyback Resolution of share buyback (February 3, 2023) - Number of shares: Up to 4.5 million shares (equal to 1.09% of total issued shares excluding treasury shares) - Amount: Up to 10.0 billion yen - Period: From February 6, 2023 to June 23, 2023 - Purpose: In order to improve return on share
Slide 20: ESG Topics
ESG Topics Issuance of Green Bonds Minebea Mitsumi 10th Unsecured Bonds MinebeaMitsumi’s first Green Bonds to be Name (with an inter-bond pari passu clause) used for financing or refinancing projects that (Minebea Mitsumi Green Bond) meet the eligibility criteria of our Green Bond Framework (product
Slide 21: 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 22: Reference
Reference February 3, 2023 22
Slide 23: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales 1,300.0 Operating income Operating margin 1,124.1 978.4 988.4 884.7 100.0 92.1 72.0 58.6 51.2 8.1% 8.2% 7.7% 6.0% 5.2% FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast February 3, 2023 23
Slide 24: 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 25.4% 25.8% 22.0% 22.6% 195.0 19.8% 188.3 180.9 177.5 16.0 29.5 47.8 24.5 22.5 157.4 35.0 45.7 44.0 20.5 27.0 39.9 37.6 39.3 27.8 31.
Slide 25: 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 5.8% 4.4% 4.6% 4.8% 387.3 379.4 1.9% 4.2 363.8 371.0 364.0 4.3 36.4 4.2 4.0 32.5 4.6 32.6 35.4 37.0 21.6 64.2 51.0 158.5 16
Slide 26: MITSUMI Business
MITSUMI Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 543.0 9.8% 9.2% 7.2% 6.4% 6.6％ 429.1 5.5% 50.0 361.0 41.8 Excl. following one time cost 308.4 ABLIC PPA -2.1 Optical Device -1.9 292.2 Extraordinary Total -4.0 expenses/losses approx. +5
Slide 27: U-Shin Business
As a result of change of the fiscal year end, U-Shin Business both net sales and operating income of 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) Operating income Operating margin 19
Slide 28: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 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% 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 February 3, 2023 28
Slide 29: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses 140.0** 123.5 ** 73.5 ** 54.2 * 52.0 50.1 46.2 45.5 48.6 45.2 36.4 38.4 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/23 1Q-3Q Forecast * Capital expenditures of FY3/20 do not include the increase o
Slide 30: ROIC (Return On Invested Capital)
ROIC for U-Shin business are pre-merger result and based ROIC (Return On Invested Capital) on JGAAP, and are not included in the Total until FY3/19. JGAAP until FY3/18 MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/account