MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Minebea — H1 FY2008 Earnings Presentation
25 slides from MinebeaMitsumi's earnings presentation, Oct 31, 2007
Slide 1: Business Results First Half of Fiscal Year Ending March 31, 2008
Business Results First Half of Fiscal Year Ending March 31, 2008 October 31, 2007 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy October 31, 2007 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer October 31, 2007 2
Slide 4: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Despite higher Thai Baht and 1Q weakness in HDD market, sales and operating income increased due to 2Q HDD market recovery and company-wide cost reduction efforts Year ended Year ending Change 1H of year ending Mar. '08 Mar. '07 Mar. '08 (Millions of y
Slide 5: Quarterly Summary of Consolidated Business Results for 2Q
Quarterly Summary of Consolidated Business Results for 2Q Despite higher Thai Baht, sales and operating income increased due to HDD market recovery and company-wide cost reduction efforts Year ended Year ending Mar. '08 Change Change Mar. '07 (Millions of yen) 2Q 1Q 2Q YoY QoQ Net sales 83,797 81,76
Slide 6: Quarterly Net Sales
Quarterly Net Sales Increased 3.2% yoy (Billions of yen) Increased 5.8% qoq 100.0 83.8 83.3 83.7 81.8 86.5 80.0 80.9 81.8 80.2 80.0 75.7 60.0 40.0 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY ended FY ended FY ending Mar. '06 Mar. '07 Mar. '08 October 31, 2007 5
Slide 7: Quarterly Operating Income
Quarterly Increased 6.6% yoy Operating Income Increased 12.5% qoq Operating Income 10.0 Operating Margin 9.3% 10.0% 9.0% 9.0 8.7% 8.0 7.5% 7.3% 7.3% 7.9% 8.0% 7.5% 7.0 6.0 5.3% 6.0% 5.0 4.0% 4.0 8.0 4.0% 6.6 6.3 7.1 3.0 7.5 6.0 6.0 5.9 2.0 2.0% 4.2 1.0 3.0 0.0 0.0% (Billions 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 8: Machined Components Business
Business Segments Machined Components Business Net sales Operating income (Billions of yen) Other machined components Pivot assemblies (Billions of yen) Rod-end & spherical bearings Operating income 80.0 Ball bearings 8.0 30.0% 72.2 Operating margin 69.9 70.1 70.0 67.4 67.8 9.1 62.2 9.8 8.4 10.2 9.7
Slide 9: Electronic Devices and Components Business
Business Segments Electronic Devices and Components Business Net sales Operating income (Billions of yen) (Billions of yen) HDD spindle motors Information motors Mar. '06 Mar. '07 Mar. '08 120.0 Other rotary components Keyboards Electronic devices Speakers 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Measuring com
Slide 10: Quarterly Net Income
Quarterly Net Income Increased 3.9% yoy (Billions of yen) Increased 38.6% qoq 5.0 12 10.5 10.5 10.9 10 4.0 8.2 7.9 8 3.0 6.0 6 4.2 4.3 3.6 4.2 2.0 4 2.5 3.3 3.0 3.1 2.4 2 1.0 1.4 1.2 1.0 -1.4 0 0.0 -0.6 -2 1Q 2Q 3Q 4Q 1Q 2Q 4Q3Q 4Q 1Q 2Q -1.0 FY ended FY ended FY ending -4 Mar. '06 Mar. '07 Mar. '08
Slide 11: Quarterly S.G. & A. Expenses
Quarterly Increased 9.3% yoy S.G. & A. Expenses Increased 3.0% qoq (Billions of yen) SG&A to sales ratio decreased despite Yen’s depreciation and increased costs for internal control 15.0 25% 13.1 12.2 12.4 12.8 12.2 12.0 12.1 11.7 11.4 11.7 20% 10.0 15% 16.1% 16.4% 15.1% 15.2% 14.8% 14.3% 14.2% 13.
Slide 12: Quarterly Inventories
Quarterly Inventories Increased 1.1% yoy (Billions of yen) Decreased 4.4% qoq 60.0 53.8 50.4 50.9 48.0 48.9 47.7 48.1 48.6 48.6 50.0 45.9 40.0 30.0 20.0 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY ended FY ended FY ending Mar. '06 Mar. '07 Mar. '08 October 31, 2007 11
Slide 13: Yearly Capital Expenditure
Yearly Capital Expenditure (Billions of yen) Full year forecast 30.0 27.5 25.0 23.1 21.9 20.0 18.8 16.4 17.0 15.0 10.0 12.0 5.0 0.0 Mar. '03 Mar. '04 Mar. '05 Mar. '06 Mar. '07 Mar. '08E October 31, 2007 12
Slide 14: Forecast for Fiscal Year Ending March 31, 2008
Forecast for Fiscal Year Ending March 31, 2008 Full year forecast unchanged FY ended FY ending Mar. '08 Change Mar. '07 (Millions of yen) 2H Full year Full year 1H revised yoy forecast forecast Net sales 331,022 168,247 166,753 335,000 +1.2% Operating income 26,265 15,121 14,879 30,000 +14.2% Ordina
Slide 15: Financial Strategy: Priority on Reducing Debts
Financial Strategy : Priority on Reducing Debts Mid-term target = ¥100 billion level of net interest-bearing debts During 1H3/08, ¥4 billion was reduced. We are aiming ¥4.5 billion reduction during 2H3/08 to achieve ¥120 billion target by FY end. 200.0 40.0 (Billions of yen) 173.2 168.7 (Billion
Slide 16: Policy and Strategy
Policy and Strategy Takayuki Yamagishi Representative Director, President and Chief Executive Officer October 31, 2007 15
Slide 17: A Strategic Growth Company
A Strategic Growth Company Mid-term Business Plan Aiming net sales (Billions of yen) of ¥500 billion FY 3/08 FY 3/09 FY 3/10 Net Sales 335.0 350.0 370.0 Operating Income 30.0 34.0 38.0 Growth Income Before Income Taxes 23.5 26.0 30.0 Strengthen Business Strategy, Business Growth of Strategic Technol
Slide 18: Mid-term Business Plan (FY08/3-FY10/3)
Mid-term Mid-termBusiness BusinessPlan(FY08/3 Plan(FY08/3--FY10/3) FY10/3) Global Business Environments: （Billions of yen） Foreign exchange fluctuations Machined Components Sales Higher material costs Electronic Devices Sales Expanding emerging markets Machined Components OP Operating Asian competit
Slide 19: Initiatives: Create New Minebea
Initiatives Create “New Minebea” Mid-term Mid-termBusiness BusinessPlan Plan Moving Forward – Progression – Leap FY08/3 (Moving Forward : Growth of strategic businesses, Increase profits) Making business recovery firm: To make all businesses in Electronic devices & components segment profitable. To
Slide 20: Initiatives: Foundation for future growth
Initiatives Create “New Minebea” Foundation Foundationfor forfuture futuregrowth growth “Win the Competition with Manufacturing Excellence and Technological Competence” Change the winds Initiatives to activate organization and innovation Innovation New Product New Market Production Development Entra
Slide 21: Combining existing products and technologies
Combining existing products and technologies Technology area Semiconductors Electrics, PCs Electronics New resources Basic technology development Aircrafts Automobiles Mechanics Products Technological development for Parts modularized Materials products New market, Metals new area Single Multi Funct
Slide 22: New business: Modularized products
New business : Modularized products HMSM：Heat Management System Module (cooling systems for data communications/processing equipment) = Fan motors + Mechanical parts + Electronic circuits + Software Evolution by modularization New business in the growing data communications/processing equipment mark
Slide 23: New Market Entrance
New Market Entrance Automotive markets ・Measuring Passenger seat sensor - second generation product Instruments New applications ・DC brush Automotive applications by new high torque motors motors ・Resolver Application as a wide range angle sensor Steering wheel torque and angle sensor Medical and he
Slide 24: Production Technology
Production Technology Aircraft parts ・Expand into new area Large mechanical parts ・Advancing production Rod-end bearings business technology and Fastener business will be combined Ball Bearings ・Construction of New production system of next-generation factory ball bearings ・Deployment of new New man
Slide 25: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ Any statements in the presentation which are not historical fact are future projections made based on certain assumptions and executive judgment drawn from currently available information. Please note that actual performance may vary signi