Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2024 Earnings Presentation
58 slides from Minebeamitsumi's earnings presentation, May 10, 2024
Slide 1: Business Results, Fiscal Year Ended March 31, 2024
Business Results Fiscal Year Ended March 31, 2024 MinebeaMitsumi Inc. May 10, 2024
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Management Policy & Business Strategy May 10, 2024 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, President COO & CFO May 10, 2024 3
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales hit record high (Net sales increased for 12 consecutive terms) FY3/23 FY3/24 Change FY3/24 Full Year Forecast (Millions of yen) Full Year * Full Year * YoY As of February vs. Forecast Net sales 1,292,203 1,402,127 +8.5% 1,400,000 100.2% Operating in
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q 4Q net sales and operating income both achieved revised forecast FY3/23 FY3/24 Change (Millions of yen) 4Q 3Q 4Q YoY QoQ Net sales 339,718 381,207 348,803 +2.7% -8.5% Operating income 31,449 24,704 20,342 -35.3% -17.7% Profit before taxes 30,207 21,414
Slide 6: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin *Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD,, Minebea Connect Inc., and Minebea AccessSolutions Inc. (Billions of yen) 1,500.0 Net sales Special factors 10.5* 1,402.1 Operating inco
Slide 7: Net Sales, Operating Income / Margin (Quarterly)
Net Sales, Operating Income / Margin (Billions of yen) Net sales Operating income Operating margin 371.4 379.7 381.2 339.7 348.8 330.0 304.3 282.0 289.5 292.4 248.3 251.0 31.4 25.0 25.8 26.3 25.5 24.7 21.7 21.7 20.3 19.6 14.3 8.9% 9.3% 7.9% 8.5% 8.0% 7.5% 5.7% 6.9% 6.7 5.7% 6.5% 5.8% 2.3% 1Q 2Q 3Q 4
Slide 8: 4Q Actual: Differences from the Forecast as of February
4Q Actual: Differences from the Forecast as of February (Billions of yen) Net Sales Operating Income May 10, 2024 8
Slide 9: Precision Technologies (PT)
Precision Technologies (PT) Net sales (Billions of yen) 235.0 Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners PMC * Operating income Operating margin 21.0 *The sub-segment name has been changed to PMC (Precision 211.4 Mechanical Components) from Pivot assemblies from FY3/24 4Q on
Slide 10: Precision Technologies (PT) Quarterly
Precision Technologies (PT) Net sales (Billions of yen) Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners PMC * 58.1 Operating income Operating margin *The sub-segment name has been changed to PMC (Precision Mechanical Components) from Pivot assemblies from FY3/24 4Q onward. 53.9 5
Slide 11: Motor, Lighting & Sensing (MLS)
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% 5.6% 4.8% 3.2％ 3.2% 390.0 371.0 369.4 5.0 363.8 366.3 0.3% 4.2 4.3 4.2 37.0 4.6 32.6 35.4 37.5 35.7 48.0 21.6 22.0 64.
Slide 12: Motor, Lighting & Sensing (MLS) Quarterly
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% 6.5% 4.1% 4.1% 3.3% 3.9% 3.7% 2.2% 3.1% 2.1% 0.2% 0% -4.8% 96.2 98.0 96.2 97.0 93.7 1.4 1.0 92.7 91.9 1.7 90.4 0.9 90.
Slide 13: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) *Operating income prior to 2Q FY3/24 has been revised Net sales (Billions of yen) Operating income (Billions of yen) in accordance with finalization of PPA 545.0 for HONDA TSUSHIN KOGYO CO., LTD, and 530.1 Operating income Operating margin Minebea Connect Inc. 9.8%
Slide 14: Semiconductors & Electronics (SE) Quarterly
Semiconductors & Electronics (SE) Net sales (Billions of yen) Operating income (Billions of yen) 182.7 Operating income Operating margin 10.2% 11.3% 10.5% 11.4% 9.5% 9.0% 8.7% 8.7% 8.0% 6.6% 157.1 0.4% 0.7% 146.5 137.0 134.2 123.6 111.0 109.5 107.2 16.4 86.8 15.2 15.6 81.7 76.8 12.6 12.8 11.3 10.2 9
Slide 15: Access Solutions (AS)
Access Solutions (AS) Net sales (Billions of yen) 325.0 Operating income (Billions of yen) *Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPA for 322.1 Minebea AccessSolutions Inc. Operating income Operating margin **Excl. special factors 9.9% 3.3% 5.2% 2.3%
Slide 16: Access Solutions (AS) Quarterly
Access Solutions (AS) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 87.9 27.1% 83.0 77.6 73.6 7.3% 69.5 2.9% 2.3% 2.7% 1.5% 0.6% 0% -0.2% -0.1% -0.9% -0.9% 0.2% 46.3 42.9 39.9 36.9 36.1 36.0 18.8 32.7 6.4 1.8 2.3 1.2 0.6 0.3 0.2 (0.1) (0.0) (0.3) (0
Slide 17: 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) *Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD,, Minebea Conne
Slide 18: Profit Attributable to Owners of the Parent / EPS Quarterly
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) 30.1 20.4 20.0 18.4 18.3 73.4 16.4 14.7 15.5 15.2 12.3 50.4 10.7 48.5 45.4 45.3 38.2 40.2 36.1 37.6 29.7 26.4 4.1 10.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 19: Inventory
Inventory (Billions of yen) 303.3 302.8 300.5 294.9 272.8 275.9 264.4 263.1 224.6 219.3 214.1 195.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 May 10, 2024 19
Slide 20: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 201.7 208.6 205.0 84.4 86.9 23.2 25.5 19.9 14.8 (62.2) FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash equivalents”＋Time deposit m
Slide 21: Forecast
Forecast Full-year forecasts for net sales, OP, etc. to hit record highs FY3/24 FY3/25 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,402,127 704,000 796,000 1,500,000 +7.0% Operating income 73,536 42,000 58,000 100,000 +36.0% Profit before taxes 75,545 40,000 56,000 96,000
Slide 22: Forecast for Business Segment
Forecast for Business Segment FY3/24 FY3/25 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,402,127 704,000 796,000 1,500,000 +7.0% Precision Technologies (PT) 211,406 116,000 119,000 235,000 +11.2% Motor, Lighting & Sensing (MLS) 369,388 191,000 199,000 390,000 +5.6% Semicon
Slide 23: Management Policy & Business Strategy
Management Policy & Business Strategy May 10, 2024 Yoshihisa Kainuma Representative Director, Chairman CEO May 10, 2024 23
Slide 24: Summary of FY3/24
Summary of FY3/24 Sales hit a record high for the 11th consecutive fiscal year. Operating income landed at 73.5 billion yen, exceeding the earnings forecast (revised in February 2024) by more than 5%, due to the improving trend of the market environment. The data center market is bottoming out
Slide 25: Key Points of FY3/25 Forecast (1)
Key Points of FY3/25 Forecast (1) Must achieve 100 billion yen in OP for the full year on a business basis Inventory levels, including high value-added products, bottom out Expect improving trends in all areas Anticipate significant profit increase due to return of high-margin products and Key p
Slide 26: Key Points of FY3/25 Forecast (2)
Key Points of FY3/25 Forecast (2) Figures in parentheses represent the Comparing FY3/24 Operating Income operating income image for FY3/25 at the time of market recovery, as explained at the Profitability improvement drivers by segment financial results presentation 2Q FY3/24. （billions of yen） (OP
Slide 27: 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 11 consecutive terms! 1,620 1,730 1,500 *FY3/25-FY3/27 plan does not include 1,402 additions from new M&As. 150 125 （billions of yen） 100 Sales 74 OP 256 13 FY3/09 FY3/10 FY3/11 FY3/
Slide 28: Mid-term Business Plan
Mid-term Business Plan Review medium-term business plan based on current market outlook Sales Real operating margin* 1,730 OP Operating margin Add-on by M&A (image) 1,620 （billions of yen） 1,500 1,402 150 10.1% 9.2% 125 7.9% 100 8.7% 6.2% 7.7% 6.7% 5.2% 74 FY3/24 FY3/25 FY3/26 FY3/27 Plan Plan Plan
Slide 29: Precision Technologies (PT) Targets
Precision Technologies (PT) Targets Growth of ball bearings through optimization of customer inventory levels of high value-added products and market recovery Recovery + growth in aircraft market, plus steady takeoff of new business Ball bearing sales PMC sales Operating income Key points Rod-end/fa
Slide 30: Ball Bearing Business Situation
Ball Bearing Business Situation Customer inventory levels for each application have normalized Profitability to recover due to increased demand for high value-added products Ball Bearings External and Internal Sales Trend (million units) Key points 400 1 Recovery and increased demand for high value-
Slide 31: Actions to Strengthen PT Business through M&A
Actions to Strengthen PT Business through M&A Plan to acquire ball screws and other businesses from TSUBAKI NAKASHIMA by December of this fiscal year Accelerate INTEGRATION and vertical integrated business Synergies through business integration Outline of acquired business 1 Portfolio Expansion Name
Slide 32: Motor, Lighting & Sensing (MLS) Targets
Motor, Lighting & Sensing (MLS) Targets Top-line growth centered on motors Operating income of motors to 25 billion yen Motor sales Sensing device sales Operating income Key points Electronic device sales Other sales Operating margin 主なポイント 1 (Billions of yen) Motors 465.0 Growing revenues through c
Slide 33: Growth Potential of Motor Business
Growth Potential of Motor Business Outstanding technological strength secures global niche top position and high margins for automotive applications Growth accelerates with content growth, achieving OP 10% or more in FY3/27 主なポイントmargin Trends in motor sales/Operating An example of a major motor for
Slide 34: Semiconductors & Electronics (SE) Targets
Semiconductors & Electronics (SE) Targets Targeting further growth to operating margin 10% or more Sales Operating income Operating margin Key points (Billions of yen) 1 630.0 Analog semiconductors 600.0 Further expansion of analog semiconductor 545.0 530.1 business through business integration with
Slide 35: Growth Potential of Power Semiconductor Business (1)
Growth Potential of Power Semiconductor Business (1) Aiming to expand power semiconductor business by vertically integrated business from development to production through business integration with Minebea Power Semiconductor Devices (MPSD) To be realized through business integration Create new adde
Slide 36: Growth Potential of Power Semiconductor Business (2)
Growth Potential of Power Semiconductor Business (2) Aiming for 200 billion yen in net sales and 30% OP in FY3/29 Analog semiconductors re-numbered to the second spear Medium-Term Targets for Analog Semiconductor Div. MinebeaMitsumi 8 spears strategy 30％ (billions of yen) 200 120 Sales OP FY3/25 FY3
Slide 37: Access Solutions (AS) Targets
Access Solutions (AS) Targets Continued improvement in profitability due to market recovery and integration effects Aiming for 10% OPM by launching INTEGRATION and high value-added products in the market Sales Operating income Operating margin Key points (Billions of yen) 355.0 1 335.0 Emerging effe
Slide 38: Creating new value by integrating diverse products (1)
Create value and introduce new INTEGRATION products through aggressive activities (1) Creating new value and products by integrating diverse products Growth Keyword ８ core businesses【8 spears】 Analog Power supply Wireless/ Bearings Motors Access Sensors Connectors/ components Communications xEV, CAS
Slide 39: Creating new value by integrating diverse products (2)
Create value and introduce new INTEGRATION products through aggressive activities (2) Creating new value and products by integrating diverse products Growth Keyword ８ core businesses【8 spears】 ＋4 Highs Bearings Analog Semiconductors Motors Access Sensors Connectors/ Power supply Wireless/ components
Slide 40: New Plant (Second Plant in Cambodia) to be Established
New Plant (Second Plant in Cambodia) to be Established Secured land to build a new plant in Pursat Province, Cambodia for business expansion Judged to be advantageous to enter the area as renewable energy can be utilized 1. Place: Krakor District, Pursat Province 2. Area: Secured approx. 50 ha (appr
Slide 41: Accelerating Carbon Neutral
Accelerating Carbon Neutral To commit to our social responsibility to commercialize renewable energy, MinebeaMitsumi added this business to its Articles of Incorporation at the annual general shareholders meeting in June, 2024 1 Cambodia: Solar power generation system business • Signed a memorandum
Slide 42: Dividends
Dividends FY3/24 Year-end 20 yen/share Annual 40 yen/share The annual dividend is targeted around 20% of consolidated payout FY3/25 ratio in principle, maintaining a sustainable and stable dividend in Plan total consideration of business environment. May 10, 2024 42
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 10, 2024 44
Slide 45: (1) History of 15 years
(1) History of 15 years May 10, 2024 45
Slide 46: Track Record for 15 years - Financial Results
Track Record for 15 years - Financial Results - Building a foundation for sustainable business growth through both organic and M&A (Millions of yen) FY3/09 FY3/24 Multiple Record High FY3/24 Sales 256,163 1,402,127 x5.5 1,402,127 （IFRS） FY3/23 Operating Income 13,406 73,536 x5.5 97,530 （IFRS） Profit
Slide 47: Trends of Sales
Trends of Sales Sales CAGR（FY3/09-FY3/24) 12％ (Billions of yen） 1,730 1,620 1,500 1,402 1,292 Actual/ Forecast 1,124 1st year of mid-term Business Plan 988 978 3rd year of mid-term Business Plan 879 885 610 639 501 256 282 372 269 251 228 ※ ※※ FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16
Slide 48: Trends of Operating Income
Trends of Operating Income Operating income CAGR（FY3/09-FY3/24) （Billions of yen） 12％ 125.0 150.0 Actual/ Forecast 97.5 1st year of mid-term Business Plan 100.0 92.1 3rd year of mid-term Business Plan 73.5 79.2 72.0 58.6 60.1 51.2 51.4 49.0 32.2 13.4 22.2 8.6 10.2 12.1 ※ ※※ FY3/09 FY3/10 FY3/11 FY3/
Slide 49: M&A Strategy
M&A Strategy Our M&A principle 1 M&As that can strengthen our existing businesses and/or provide INTEGRATION 2 Only agree to an appropriate price (never acquiring at a high price) 15 years of Of which Results/forecast 27M&As integrated 26M&As 15 years（10/3 -24/3） 27 M&As Total enterprise value of 26
Slide 50: EBITDA/Net Interest-bearing Debts/Free Cash Flows
EBITDA/Net Interest-bearing Debts/Free Cash Flows Cash-generating capabilities backed by high profitability Trends in EBITDA/Net interest-bearing debts/Free cash flows （billions of yen） 209 202 EBITDA Net interest-bearing debts Free cash flows 151 136 137 132 114 104 110 111 108 100 97 93 98 105 84
Slide 51: EPS Growth Rate and ROE
EPS Growth Rate and ROE EPS:FY3/09-FY3/24 actual CAGR15.1％, aim for CAGR15％ or more toward FY3/29 ROE:FY3/09-FY3/24 average actual 11.3％, aim for 15% or more toward FY3/29 （yen） MinebeaMitsumi EPS MinebeaMitsumi EPS (Moving average of past 10 years*) MinebeaMitsumi ROE TSE PRIME Market** EPS (Moving
Slide 52: Share Price Performance
Share Price Performance Share price return on 31 March 2009 as 100 MinebeaMitsumi Company A Company B Company C Company D TOPIX May 10, 2024 *Until the closing price on 30 Apr 2024. 52
Slide 53: (2) Impact of Differences in Cooling Systems for Data Centers
(2) Impact of Differences in Cooling Systems for Data Centers on Us May 10, 2024 53
Slide 54: Impact of Differences in Cooling Systems for Data Centers on Us
Impact of Differences in Cooling Systems for Data Centers on Us Even if there is a change in the cooling system of the server, the fan motors continue to be used ➡ On the contrary, there are also methods that increase the number of fan motors used Data expansion is expected to continue in the fu
Slide 55: (3) Financial Data
(3) Financial Data May 10, 2024 55
Slide 56: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 42.7 41.6 39.2 39.9 38.1 36.8 35.6 31.9 32.8 32.7 30.1 30.4 13.0% 13.0% 12.1% 12.2% 11.3% 11.5% 10.8% 10.5% 10.8% 10.5% 10.9% 9.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/22 FY3/23 FY3/24 May 10, 2024 56
Slide 57: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses * 147.0 * 83.6 80.0 73.5 58.4** 62.0 ** 48.6 53.0 45.5 45.2 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 Forecast * Capital expenditures of FY3/22 & FY3/23 include new HQ building acquisition expenses
Slide 58: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/accounts receivable + inventories + non-current assets - notes payable/accounts payable) Calculated using business assets (trade receivable/p