Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2025 Earnings Presentation
65 slides from Minebeamitsumi's earnings presentation, May 9, 2025
Slide 1: Financial Results Briefing, Fiscal Year Ended March 2025
MinebeaMitsumi Financial Results Briefing Fiscal Year Ended March 2025 MinebeaMitsumi Inc. May 9, 2025
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results Overview and Forecast 2. Management Policy and Business Strategy May 9, 2026 2 MinebeaMitsumi
Slide 3: Introduction to financial results overview
My name is Yoshida. Today, I would first like to explain the overview of our financial results for the fiscal year ended March 31, 2025 and the forecast for the fiscal year ending March 31, 2026. 3
Slide 4: Full-year consolidated results
Consolidated net sales for the fiscal year ended March 31, 2025, increased by 8.6% year on year, totaling 1,522,703 million yen. Operating income increased by 28.5% year on year, totaling 94,482 million yen. Profit for the period attributable to owners of the parent increased by 10.0% year on year,
Slide 5: Fourth quarter consolidated results
Consolidated net sales for the fourth quarter of the fiscal year ended March 31, 2025 increased by 7.5% year on year and 1.4% quarter on quarter, totaling 374,823 million yen. Operating income increased by 5.8% year on year and decreased by 17.7% quarter on quarter, totaling 21,531 million yen. Prof
Slide 6: Annual trend in sales, operating income and margin
This is the annual trend in net sales, operating income, and operating margin. The bar graph on the left is net sales, and the one on the right is operating income along with a line chart for the operating margin. The operating margin for the fiscal year ended March 31, 2025, was 6.2%, up 1.0 percen
Slide 7: Quarterly trend in sales, operating income and margin
This is for the quarterly trend in net sales, operating income and operating margin. The operating margin for the fourth quarter was 5.7%, down 0.1 percentage point year on year and down 1.4 percentage points quarter on quarter. 7
Slide 8: Q4 forecast versus actual by segment
This slide shows the difference between the forecast as of February and the actual results for net sales and operating income by business segment for the fourth quarter. PT sales were higher than expected, primarily due to steady growth in bearings for data centers and automobiles. MLS sales were hi
Slide 9: Precision Technologies segment annual results
Now, let’s take a look at the results by segment, starting with the Precision Technologies segment. On the left is a graph indicating yearly net sales trends and on the right is a graph with a bar chart showing yearly operating income trends along with a line chart for operating margins. In the fisc
Slide 10: Precision Technologies quarterly trends
This slide shows the quarterly trends. Fourth quarter net sales increased by 8.8% quarter on quarter, totaling 66.8 billion yen. Sales of ball bearings increased by 7.0% quarter on quarter, totaling 44.2 billion yen. The monthly external shipment volume decreased by 1.7% quarter on quarter to an ave
Slide 11: Motor, Lighting & Sensing annual results
Now let’s look at the Motor, Lighting & Sensing segment. Net sales increased by 10.4% quarter on quarter, totaling 407.7 billion yen. Looking at the results by product, we see that sales of motors increased 15.7% quarter on quarter to reach 322.4 billion yen. This is mainly due to solid sales, parti
Slide 12: Motor, Lighting & Sensing quarterly trends
This slide shows the quarterly trends. Net sales were 101.3 billion yen, remaining flat from the previous quarter. Looking at the results by product, motor sales were 80.5 billion yen, unchanged from the previous quarter. Sales of electronic devices decreased by 12.2% from the previous quarter, tota
Slide 13: Semiconductor & Electronics annual results
Let’s look at the performance for the Semiconductor & Electronics segment. Net sales increased by 6.7% year on year, totaling 527.6 billion yen in the fiscal year ended March 31, 2025. This is due to the incorporation of Minebea Power Semiconductor Device (formerly Hitachi Power Semiconductor Device
Slide 14: Semiconductor & Electronics quarterly trends
This slide shows the quarterly trends. Net sales decreased by 3.6% quarter on quarter, totaling 121.6 billion yen. This was mainly due to a decrease in the sales of optical devices. Operating income totaled 3.2 billion yen, while the operating margin was 2.6%. Operating income decreased by 47.5% and
Slide 15: Access Solutions annual results
Finally, let's look at the Access Solutions segment. Net sales increased by 1.9% year on year, totaling 328.1 billion yen in the fiscal year ended March 31, 2025. This is due to a recovery in sales to the automotive devices despite a slowdown in the automotive market especially in the Chinese market
Slide 16: Access Solutions quarterly trends
This slide shows the quarterly trends. Net sales increased by 5.3% quarter on quarter, totaling 84.4 billion yen. Operating income came to 5.3 billion yen, and the operating margin was 6.2%. Operating income increased by 27.1%, and the operating margin rose by 1.0 percentage point quarter on quarter
Slide 17: Annual profit and earnings per share
The bar graph here shows trends in profit attributable to owners of the parent, while the line chart shows changes in the profit for the period per share. The profit for the period was 59.5 billion yen. Earnings for the period per share were 147.6 yen. 17
Slide 18: Quarterly profit and earnings per share
This slide shows the quarterly trends. The profit for the period was 17.0 billion yen. Earnings per share were 42.3 yen. 18
Slide 19: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the fourth quarter, inventory totaled 350.9 billion yen, which decreased by 5.7 billion yen compared to three months ago. 19
Slide 20: Net interest-bearing debt and free cash flow
This graph contains a bar chart showing trends in net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents, and a line chart indicating free cash flows. At the end of the fourth quarter, net interest-bearing debt, totaling 241.4 billion yen, was up by 32.8 bill
Slide 21: Forecast for fiscal year ending March 2026
This is a summary of our forecast for the current fiscal year ending March 31, 2026. In consideration of the impact of the U.S. reciprocal tariffs on our business, we will disclose the base scenario and the risk scenario. We assume an exchange rate of 140 yen to the U.S. dollar. 21
Slide 22: Segment changes
I would like to explain the segment changes. Beginning with the fiscal year ending March 31, 2026, we will make the following two main changes. First, “Smart Products,” which previously belonged to the SE segment, will be transferred to the MLS segment as an intersegment change. Second, as a transfe
Slide 23: Base scenario forecast by segment
This slide shows the base scenario forecast by business segment. 23
Slide 24: Risk scenario forecast by segment
This slide shows the risk scenario forecast by business segment. This is all for my presentation. 24
Slide 25: Management Policy & Business Strategy
MinebeaMitsumi Passion to Create Value through Difference Management Policy & Business Strategy May 9, 2025 May 9, 2025 25 Representative Director, Chairman CEO Yoshihisa Kainuma 25
Slide 26: Review of fiscal year and management policy
Hello, I’m Yoshihisa Kainuma. I will now explain our management policy and business strategy. For the fiscal year ended March 31, 2025, we aimed for an operating income of 100 billion yen, but unfortunately we fell short of it. The reason for this is very clear: the sub-core businesses, optical devi
Slide 27: Base scenario forecast
This table represents the base scenario. As of today, the exchange rate has returned to 145 yen per dollar, but we are assuming 140 yen per dollar for this fiscal year. I would like to talk about the background of how we came up with those numbers, including risk scenarios, on page 29 and 30. 27
Slide 28: Impact of US Reciprocal Tariffs
May 9, 2025 ® Impact of US Reciprocal Tariffs 28 28
Slide 29: Impact of US reciprocal tariffs
Let me talk about the impact of the U.S. reciprocal tariffs, which I know is of great interest to you. I believe that we can assume many different theories, but based on my 17 years of managing our company, we have faced many unexpected events. Even so, I do not believe that we have strayed far from
Slide 30: Breakdown of earnings forecast
This page provides a breakdown of our earnings forecast. 30
Slide 31: Plans for FY3/26
May 9, 2025 2) Plans for the FY3/26 3] 31
Slide 32: Mid-term management plan update
We traditionally announce the rollover of the 3-year mid-term management plan at this time. However, since the outlook for fiscal year ending March 31, 2026 is also uncertain, we would like to update the 3-year plan as soon as the uncertainty of the external environment is resolved. 32
Slide 33: Outlook: Precision Technologies
I would like to explain the outlook for each segment, starting off with Precision Technologies (PT) segment. Fortunately, we are satisfied with the ongoing growth trend. Bearings for fan motors for data centers were very strong in April, May, and June, and I think it is fair to say that they are at
Slide 34: Outlook: Motor, Lighting & Sensing
Here is Motor Lighting & Sensing (MLS) segment. First, although motors did not reach our operating income target of ¥27.0 billion, we successfully achieved record-high sales and operating income. One thing worth mentioning is backlights. Backlights for smart phones which became predominant in the pa
Slide 35: Outlook: Semiconductor & Electronics
Next is Semiconductor & Electronics (SE) segment. Semiconductors are performing very well in the current market conditions, and ABLIC continues to generate operating margin exceeding 30%. We have a niche-top strategy to develop markets by focusing on niches where we can demonstrate our uniqueness, a
Slide 36: Outlook: Access Solutions
Last is Access Solutions (AS) segment. We have really improved our productivity. The takt time at the Georgia plant in the U.S. is almost the same as in Southeast Asia. Our employees are enjoying the improvements, and I believe this is the result of our efforts. In the base scenario, we expect opera
Slide 37: M&A Deal
May 9, 2025 ©) M&A Deal 37 37
Slide 38: M&A deals
I have already explained M&A deals in various places, so I do not have much to say today. 38
Slide 39: Shibaura Electronics business fit
We think that SHIBAURA ELECTRONICS's business is very interesting because it falls into the Spears definition of our core business. 39
Slide 40: Synergies with Shibaura Electronics
We believe there are significant synergies between our company and SHIBAURA ELECTRONICS. 40
Slide 41: M&A pricing and financial discipline
One thing I would like to mention so that there is no misunderstanding is that in this M&A, we have said that “we will protect Japanese technology," and protecting Japanese technology and maximizing our shareholder value are parallel and compatible to a certain extent. However, I believe that from a
Slide 42: Medium- to long-term growth initiatives
I would like to explain our initiatives for medium- to long-term growth. 42
Slide 43: Integration products and applications
Various Integration products are being developed, and this slide summarizes the applications in which the products will be used in the future. Car doors will open and close automatically in the future. Our various products, including wing handles, will be used in such systems. For high-efficiency fa
Slide 44: Humanoid robot market estimate
Here we talk about humanoid robots. Our Technology Division estimates that there will be 1.42 million humanoids in the market by 2030. If we sum up all the market estimation, it will add up to 3.2 million units. However, we do not believe that the number will reach that level, so we have assumed a f
Slide 45: Products used in humanoid robots
All kinds of our products may be used in humanoid robots. While not all humanoids will use them, the products shown in the slide are intended for high-performance humanoids that require high-performance parts. Small mechanical sensors and bearings will be used in the hand section. As explained on th
Slide 46: Humanoid hand for CES2026
Our latest technology for humanoids will be introduced at CES2026. Four fingers are originally sufficient for humanoids to hold an object, so this picture shows four fingers, but the product we will exhibit at CES will be a five-finger product. The centerpiece of this is a 13×13 mm ultra-compact red
Slide 47: Osaka-Kansai Expo showcases
At the Osaka-Kansai Expo, our high-performance bed sensor has been on display in the ‘PASONA NATUREVERSE’. We hope you will have a chance to experience them. We currently receive more than 10,000 visitors a day. We have been developing bed sensors for 11 years now, and we expect to finally launch a
Slide 48: Cambodia JCM project for carbon neutrality
Minebea SchneiTec Green Power, established in Cambodia, has been selected for Joint Crediting Mechanism (JCM) Projects. Carbon neutrality measures are proceeding as planned. 48
Slide 49: Shareholder Returns
May 9, 2025 © Shareholder Returns 49 49
Slide 50: Shareholder returns
In terms of shareholder returns, we have increased the dividend by 5 yen to 45 yen, in response to feedback that it had been low in the past. The consolidated dividend payout ratio was previously around 20%, but for the fiscal year ending March 31, 2026, we are aiming for a payout ratio of around 30
Slide 51: Forward-looking statements disclaimer
May 9, 2025 MinebeaMitsumi Passion to Create Value through Difference 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 sign
Slide 52: Reference
May 9, 2025 Reference 52
Slide 53: History of years
(1) History of 16 years 53
Slide 54: Track Record for years - Financial Results
Track Record for 16 years - Financial Results - MinebeaMitsumi Passion to Create Value through Difference Building a foundation for sustainable business growth through both organic and M&A (Millions of yen) a Saat Sales 256,163 1,522,703 5.9 1,522,703 22 o FY3/23 Operating Income 13,406 94,482 x7.0
Slide 55: Trends of Sales
Trends of Sales MinebeaMitsumi Sales CAGR (FY3/09-FY3/25) 1,523 1,520 4 499 % nae igs 4,202 ito! ito! 1! 2 m= Actual/ Forecast e ito! 1st year of mid-term Business Plan | : : ' @ 3rd year of mid-term Business Plan i! - 1 ! itt si § e ji 3 256 riot i) 2 | ie u i z if : s E ka 1 coe Be FY3/09 FY3/10 F
Slide 56: Trends of OP
Trends of OP MinebeaMitsumi Passion to Create Value through Difference OP CAGR (FY3/09-FY3/25) 13% (Billions of yen) e m= Actual/ Forecast 1st year of mid-term Business Plan 1000 e 3rd year of mid-term Business Plan ® 224 ' e580 i 1 | ' | ' = ' ' a = ery FY3/11 one ns FY3/14 FY3/15 FY3/16 FY3/17 FY3
Slide 57: M&A Strategy
M&A Strategy Our M&A principle Strengthens existing businesses and/or can be expected to create synergy /nlegrauoy Passion to Create Value through Difference Thorough adherence to appropriate pricing (not overpaying for targets)) ‘ Resultstorecast 29usas integrated \ 2OMB&AsD 29usas = < | Total ente
Slide 58: EBITDA/Net Interest-bearing Debts/Free Cash Flows
EBITDA/Net Interest-bearing Debts/Free Cash Flows MinebeaMitsumi Passion to Create Value through Difference Cash-generating capabilities backed by high profitability Trends in EBITDA/Net interest-bearing debts/Free cash flows (Billions of yen) === EBITDA ~O- Net interest-bearing debts i Free cash fl
Slide 59: Growth in earnings per share (EPS)
Growth in earnings per share (EPS) EPS: FY3/09-FY3/25 actual CAGR 14.3% MinebeaMitsumi Passion to Create Value through Difference Comparison of EPS (indexed with March 2009 as 1) 8.5 8.2 I FY309 FY3/0 = FYSIM1. «= FYS12«-FYSM3) FINA May 9, 2025 FY3M5 FYSNG = FYSII7 «F398 «= FYS/9. «© FY3I@O.—FYSI21
Slide 60: Growth in return on equity (ROE)
Growth in return on equity (ROE*) MinebeaMitsumi ROE: FY3/09-FY3/25 average actual 11.0% (%) 20.0 15.0 0.0 May 9, 2025 Passion to Create Value through Difference —— ROE (Excluding foreign currency translation adjustments) ome ROE: | The costof capital is assumed | to be approximately 8%. FY3/18 FY3/
Slide 61: Share Price Performance
Share Price Performance Share price performance relative to TOPIX, 700 assuming March 31, 2009, as 100 MinebeaMitsumi Passion to Create Value through Difference mee MinedeaMitsumi mms CompanyA mms | CompanyB mms CompanyC mms |= CompanyD 0 2009/9/31 2010/3731 2011/3/31 2012/31 20137431 2014/3731 2015
Slide 62: Financial Data
(2)Financial Data 62
Slide 63: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) |= S.G.&A. expenses =C- S.G.&A. to sales ratio | May 9, 2025 63 MinebeaMitsumi
Slide 64: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) |= Capitalexpenditure m= Depreciation & amortizationexpenses | 147.0" FY3/22 FY3/23 FY3/24 FY3/25 : FY3/26 * Capital expenditures of FY2/22 & FY3/23 include new HQ building acquisition expenses * DBA expense prior to 30 FY2/24 has been revised in a
Slide 65: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) MinebeaMitsumi NOPAT (operating income + extraordinary profitloss) x (1-tax rate) ROIC ~ Invested capital _ (Notes receivabielaccounts receivable + inventories +non-current assets - notes payable/accounts payable) Calculated using business assets (trade receivable/p