Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2021 Earnings Presentation
49 slides from Minebeamitsumi's earnings presentation, May 7, 2021
Slide 1: Business Results, Fiscal Year Ended March 31, 2021
Business Results Fiscal Year Ended March 31, 2021 MinebeaMitsumi Inc. May 7, 2021
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Management Policy & Business Strategy May 7, 2021 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, Senior Managing Executive Officer May 7, 2021 3
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales hit record highs FY3/21 Forecast FY3/20 FY3/21 Change (Millions of yen) (February 2021 Forecast) Full Year Full Year YoY Full Year VS. Forecast Net sales 978,445 988,424 +1.0% 980,000 100.9% Operating income 58,647 51,166 -12.8% 58,000 88.2% Profit
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q Net sales hit 4Q record highs FY3/20 FY3/21 Change (Millions of yen) 4Q 3Q 4Q YoY QoQ Net sales 226,897 275,709 250,985 +10.6% -9.0% Operating income 12,401 19,595 8,650 -30.2% -55.9% Profit before taxes 11,870 19,392 7,886 -33.6% -59.3% Profit for the
Slide 6: Net Sales, Operating Income/margin
Net Sales, Operating Income/margin *JGAAP until FY3/18 (Billions of yen) Net sales Excluding ¥8.3bn of one time cost in 4Q Operating income Operating margin 978.4 988.4 1,000.0 879.1 79.2 884.7 80.0 72.0 60.1 638.9 58.6 59.5 609.8 51.4 49.0 500.7 51.2 371.5 32.2 12.0% 6.0％ 8.7% 8.4% 9.0% 7.7% 8.1% 8
Slide 7: Net Sales, Operating Income/margin (quarterly)
Net Sales, Operating Income/margin (Billions of yen) Net sales Operating income Excluding ¥8.3bn of one time cost in 4Q Operating margin 279.5 274.3 275.7 267.7 249.6 251.0 236.3 226.9 213.0 31.1 204.4 185.8 187.5 23.3 19.6 19.6 19.6 17.6 17.0 14.3 12.4 12.5% 7.0 5.4 8.7 8.3% 3.3 7.0% 8.7% 7.1% 6.8％
Slide 8: 4Q Actual: Differences from the Forecast as of February
4Q Actual: Differences from the Forecast as of February (Billions of yen) 251.0 242.6 Net Sales Including ¥4.0bn of one time cost 15.5 Including ¥4.3bn of one time cost Operating 8.7 Income May 7, 2021 8
Slide 9: Machined Components
Machined Components *JGAAP until FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Other Operating income Operating margin 25.0% 25.4% 24.7% 24.2% 22.0% 19.8% 188.3 Excluding ¥0.7bn of 180.9 PPA impact in 4Q 47.8 176.4 29.5 170.0
Slide 10: Machined Components (quarterly)
Machined Components Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 27.1% 26.0% 24.8% 23.5% 23.2% 22.6% 48.2 47.4 12.9 21.2% 21.1% 20.9% 47.3 12.5 20.1% 20.0% 45.5 46.1 45.1 45.2 44.5 18.2% 44.1 11.7 8
Slide 11: Electronic Devices & Components
Electronic Devices & Components *JGAAP until 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 451.5 441.6 3.8 4.0 35.7 38.3 387.3 3
Slide 12: Electronic Devices & Components (quarterly)
Electronic Devices & Components Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 9.2% 7.9% 6.6% 5.6% 4.7% 6.0% 4.6% 2.1% 3.0% 2.7% 0.5% 114.4 1.2 111.5 -0.7% 0% 1.1 9.7 101.3 8.6 1.0 98.6 93.7 1.1 94.9 91
Slide 13: Mitsumi Business
Both net sales and operating income in FY3/17 include premerger results. Mitsumi Business JGAAP until FY3/18. Net sales (Billions of yen) Operating income (Billions of yen) Including following business Operating income Operating margin transfer impact Smart Products +¥19.0bn Home Security Units +¥2.
Slide 14: Mitsumi Business (quarterly)
Mitsumi Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 14.8% 9.2% 8.7% 7.4% 7.1% 6.7% 6.9% 4.1% 6.1％ 2.4% 0.0% 114.3 1.0% 0% 110.7 -2.6% 100.6 100.9 13.0 Extraordinary expenses/losses Excluding ¥4.0bn of approx. +¥5.0bn in 3Q one time cost i
Slide 15: 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 16: U-Shin Business (quarterly)
Both net sales and operating income before March of 2019 are pre-merger results. U-Shin Business The quarterly figures for FY3/20 have been revised in accordance with finalization of PPA. Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 5.7% 5.9% 5.5％
Slide 17: Profit attributable to owners of the parent / EPS
Profit attributable to owners of the parent / EPS *JGAAP until FY3/18 (Billions of yen) Profit for the period attributable to owners of the parent Earnings per share, basic (yen) 64.0 59.4 60.1 46.0 39.9 41.1 157.4 38.8 36.4 141.1 143.9 107.3 111.1 106.7 97.3 20.9 95.0 55.9 FY3/14 FY3/15 FY3/16 FY3/
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) 24.2 19.2 16.0 57.9 16.2 14.1 13.2 46.4 10.9 10.4 38.0 9.1 39.6 34.1 32.4 26.0 25.4 5.8 21.9 3.6 2.2 14.2 8.8 5.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 19: Inventory
Inventory (Billions of yen) 204.4 186.5 176.8 181.4 175.9 169.1 174.4 169.8 174.3 171.4 156.8 141.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/19 FY3/20 FY3/21 May 7, 2021 19
Slide 20: Net interest-bearing debt / Free cash flow
Net interest-bearing debt / Free cash flow *JGAAP until FY3/18 Net interest-bearing debt * Free cash flow (Billions of yen) 84.4 75.2 70.9 52.5 50.0 46.5 42.9 36.3 37.2 51.0 23.2 21.7 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Forecast *Net interest-bearing debts :”Bonds and borrowings” – (“Cash and
Slide 21: Forecast for Fiscal Year Ending March 31, 2022
Forecast for Fiscal Year Ending March 31, 2022 Operating income to hit ¥80bn. FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 487,000 513,000 1,000,000 +1.2% Operating income 51,166 38,000 42,000 80,000 +56.4% Profit before taxes 49,527 37,500 41,500 79,00
Slide 22: Forecast for Business Segment
Forecast for Business Segment FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 487,000 513,000 1,000,000 +1.2% Machined components 157,411 86,000 84,000 170,000 +8.0% Electronic devices and components 363,847 170,000 165,000 335,000 -7.9% Mitsumi business 3
Slide 23: Changes of Business Segment
Changes of Business Segment Consolidate related businesses and elemental technologies to generate further synergies ～ FY3/21 FY3/22 ～ Electronic devices Electronic devices and components Smart Products Smart Products Mitsumi business Automotive Products Home Security Units U-Shin business Home Secur
Slide 24: Forecast for Business Segment (Adjusted)
Forecast for Business Segment (Adjusted) FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 487,000 513,000 1,000,000 +1.2% Machined components 157,411 86,000 84,000 170,000 +8.0% Electronic devices and components 345,595 170,000 165,000 335,000 -3.1% Mitsumi
Slide 25: Management Policy & Business Strategy
Management Policy & Business Strategy May 7, 2021 Yoshihisa Kainuma Representative Director, CEO & COO May 7, 2021 25
Slide 26: Summary of Fiscal Year ended 3/21
Summary of Fiscal Year ended 3/21 Net sales hit a record high. Operating income reached the upper end of the original forecast range (excluding one-time costs), resulting in virtual increases in profits. Implemented structural reforms etc. Overall 1. PPA for ABLIC, 2. Structural reform for U-Shi
Slide 27: Summary of Fiscal Year ending 3/22 Plan
Summary of Fiscal Year ending 3/22 Plan Make the 70th anniversary a banner year (Aim for a new profit record and establish foundation to generate 100 billion yen in operating income next fiscal year) Three spears (bearings/motors/analog semiconductors) + OIS will drive profits up. => Completed imp
Slide 28: Mid-term Business Plan Targets
Mid-term Business Plan Targets Core businesses will drive profits up, virtually doubling operating income in 3 years Net Sales Operating income Operating margin (Billions of yen) 59.5 (excluding one-time costs) May 7, 2021 28
Slide 29: Machined Components Targets
Machined Components Targets Growth of ball bearing Ball bearing sales Pivot assembly sales Operating income business will overcome Rod-end/fastener sales Operating margin (Billions of yen) aviation slump Key Points 1 Ball bearing sales Production capacity will match external sales volumes mainly for
Slide 30: Electronic Devices and Comp. (1) Targets
Electronic Devices and Comp. (1) Targets Motors will be the big profit Motor sales Sensing device sales Operating income driver that accelerates growth Electronic device sales Other sales Operating margin Profit from BL is limited (Billions of yen) Key Points 1 Motors All product categories will shi
Slide 31: Electronic Devices and Comp. (2) Motors
Electronic Devices and Comp. (2) Motors 400 Motor business steadily moving forward to generate 400 billion yen in sales Motor Sales (Billions of yen) Key Points 284.0 1 265.0 Electrification, CASE, new lifestyle, DX, and labor-saving technologies will shift 240.0 all product categories into full-sca
Slide 32: Mitsumi Business (1) Targets
Mitsumi Business (1) Targets Established profit structure Sales Operating income Operating margin that does not rely on games (Billions of yen) Key Points 1 Optical devices Further enhance industry presence 2 Analog semiconductors Both synergistic and organic growth accelerate 3 Mechanical component
Slide 33: Mitsumi Business (2) Optical Devices
Mitsumi Business (2) Optical Devices Aim to become number one in the industry with an aggressive strategy Image of optical device sales Key Points 1 Increase share in major customers for new OIS models to enhance presence 2 Develop new products aimed at acquiring new customers New Structure • High t
Slide 34: Mitsumi Business (3) Analog Semiconductors
Mitsumi Business (3) Analog Semiconductors Realize 100 billion yen in sales and a 20% operating margin ASAP Deep dive into core technologies and move ahead with developing 8 fields for semiconductors to achieve targets with niche and growth areas Key Points Analog semiconductor Sales (Billions of ye
Slide 35: U-Shin Business Targets
U-Shin Business Targets Focus on growth areas to Sales Operating income Operating margin improve performance (Billions of yen) Key Points 1 Structural reform #1 Layoff of 300 positions will contribute to profit increase next fiscal year 2 Structural reform #2 Withdraw from low-priced products Accele
Slide 36: Construction of New Multi-purpose Factory
Construction of New Multi-purpose Factory Build a new multi-purpose factory to prepare for future capacity increase for various products Planned new factory construction site Bang Pa-in Plant, Thailand 1. Amount to be invested Approx. 4 billion yen 2. Planned construction site Bang Pa-in Plant, Thai
Slide 37: Mission as CEO: Looking Back on My Tenure So Far
Mission as CEO: Looking Back on My Tenure So Far Investor meeting presentation in May 2009 (retouched in red) Created value worth 1.1 trillion yen Resilience to grow beyond numerous adversities Affirmed the efficacy of management policy May 7, 2021 37
Slide 38: Net Sales and Market Capitalization
Net Sales and Market Capitalization Over the last 12 years 1,240 March 31, 2021 Market Cap X8.7! 879.1 884.7 978.4 988.4 Net Sales (Billions of yen) X4.3! 638.9 609.8 500.7 371.5 269.1 282.4 228.4 251.4 143 March 31, 2009 May 7, 2021 38 JGAAP IFRS
Slide 39: Path to 100 billion yen in operating income
Path to 100 billion yen in operating income Aim significant increase in corporate value by achieving 100 billion yen OP 100.0 Operating Income 79.2 80.0 72.0 (Billions of yen) 60.1 58.6 51.4 49.0 51.2 Sluggish smartphone US-China trade issue market COVID-19 32.2 22.2 Great earthquake in Japan Thaila
Slide 40: Mission as CEO: Looking Back on My Tenure So Far
Mission as CEO: Looking Back on My Tenure So Far Investor meeting presentation in May 2009 (retouched in red) Created value worth 1.1 trillion yen Resilience to grow beyond numerous adversities Affirmed the efficacy of management policy May 7, 2021 40
Slide 41: Laying the New Foundation for 100th Anniversary (1)
Laying the New Foundation for 100th Anniversary (1) Focus on M&A in order to strengthen the earnings base by toughening the 8 spears 1 Bearings 2 Motors Initiatives to 3 Access products make 8 spears 4 Analog semiconductors stronger 5 Sensors Initiatives to 6 Connectors/switches increase 8 spears 7
Slide 42: Laying the New Foundation for 100th Anniversary (2)
Laying the New Foundation for 100th Anniversary (2) QCDS＋E＝QCDSE Q C D E S S uality ost elivery co /efficiency ervice peed Example of reduction of emissions Reducing our Help the world emissions reduce emissions 1 million tons * In accordance with guideline by Liaison Group of Japanese Electrical an
Slide 43: 70th Anniversary Dividend
70th Anniversary Dividend We will be celebrating our 70th anniversary in July 2021. I would like to express my sincere gratitude for the support and cooperation of our shareholders, customers, business partners, employees, and other stakeholders. As a token of gratitude to our shareholders, we will
Slide 44: ESG Topics
ESG Topics Engagement between outside directors and institutional investors We held our first (online) dialog between outside directors and institutional investors. A summary of the Q&A is available on our website. MinebeaMitsumi Group ESG Initiatives We have posted the MinebeaMitsumi Group ESG Init
Slide 45: 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 46: Reference
Reference May 7, 2021 46
Slide 47: S.G.&A. expense / ratio
S.G.&A. expense / ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 29.0 26.7 27.3 27.0 27.5 26.6 26.1 24.5 25.2 23.5 23.7 22.8 13.1% 13.4% 12.8% 11.9% 11.5% 11.0% 10.4% 9.8% 10.0% 10.0% 9.1% 9.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/19 FY3/20 FY3/21 May 7, 2021 47
Slide 48: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense *JGAAP until FY3/18 (Billions of yen) Capital expenditure Depreciation & Amortization expenses 65.0 54.2 54.2 50.1* 48.6 46.2 45.5 45.0 36.4 31.8 31.6 28.2 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Forecast * Capital expenditures of FY3/20 do not include the increas
Slide 49: 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