Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Nomura Investment Forum 2018
20 slides from Minebeamitsumi's conference presentation, Dec 6, 2018
Slide 1: Business Update & Management Strategy
Nomura Investment Forum 2018 Business Update & Management Strategy December 6, 2018 Yoshihisa Kainuma Representative Director, CEO & COO December 6, 2018 1
Slide 2: Today's Agenda
Today’s Agenda 1. 2Q Financial Results (Presentation Material for 2Q Investor Meeting) 2. Management Strategy based on the Recent External Environment December 6, 2018 2
Slide 3: 2Q Financial Results
2Q Financial Results (Presentation at 2Q Investor Meeting) December 6, 2018 3
Slide 4: Today's Highlights
Today's Highlights 2Q overall: Mostly in line with forecasts despite timing issue and one-time costs for some businesses. Machined components: Sales and production volume of ball bearings hit quarterly record highs. OP of ¥50 billion is expected to be achieved two years ahead of the initial targ
Slide 5: Keys to Achieving FY3/19 Targets
Keys to Achieving FY3/19 Targets Core businesses keep driving growth ●Machined components sure to continue growing. ●Steady demand for ball bearings. ●Ramp up of components for new smartphone is in good shape. Points (LED backlights, camera actuators) ●Top-line growth and profit improvement to conti
Slide 6: Machined Components
Machined Components Targeting OP of ¥50 billion via strengthening profitability Ball bearings Ball bearing external shipment 203 206 203 (million units/month) 190 ●2Q external shipment and production volume 171 increased both YoY and QoQ 155 ●Although demand may see temporary adjustment 145 for some
Slide 7: Electronic Devices and Components
Electronic Devices and Components LED backlights ramped up in good shape Motors remain steady LED backlights Motor Business Sales Targets (Billions of yen) ●Timing issue occurred in 2Q Non-automobile applications 250.0 ●Ramp up of new model is in good shape. Automobile applications 220.0 ●Developing
Slide 8: Mitsumi Business
Mitsumi Business Big increase in production from 3Q onwards despite timing issue and one-time costs in 2Q Optical devices ●Significant increase in production from 3Q despite time lag for some new products in 2Q (No big difference in quality and yield from projection) ●Expecting good business opportu
Slide 9: Huge Business Opportunity from US-China Tariff Issue
Huge Business Opportunity from US-China Tariff Issue US-China tariff issue driving US companies to China +1 Opportunities to use 64 global manufacturing sites, including Cambodia factory, are rapidly expanding. E.g. a 25% tariff on Chinese-made bearings -->Reduction of price difference with Chin
Slide 10: TOB of U-Shin toward Business Integration
TOB of U-Shin toward Business Integration Target company U-Shin Ltd. (ticker: 6985) Automotive division Tender offer period TBD *Targeting at the end of January 2019 Tender offer price JPY 985 per common stock Tender offer funds JPY 32,622 million ESCL (Electronic Steering Column Lock) Number of sha
Slide 11: Automotive Business Opportunities in the CASE Era
Automotive Business Opportunities in the CASE Era Significant business expansion via strengthening portfolio through M&A and synergies from INTEGRATION ◆New business opportunities from ◆Automotive Product synergy between our CASE business and U-Shin Sales Target (Billions of yen) Connectivity Autono
Slide 12: Updates on New Product Trio
Updates on New Product Trio Bed Sensor SALIOT Smart City System Soaring inquiries / Strengthening product Sales activity development Various events launched by Ricoh Nodes, gateways, environmental acoya with lights by SALIOT sensors, parking sensors, etc. December 6, 2018 12
Slide 13: Hit ¥1 Trillion / ¥100 Billion Targets Ahead of Schedule
Hit ¥1 Trillion / ¥100 Billion Targets Ahead of Schedule Hit ¥1 trillion / ¥100 billion targets via (billions of yen) (billions of yen) organic growth and aggressive M&As 1,400 140 M&A Net Sales Operating income OP margin 1,200 120 M&A 1,080 1,000 102 1,000 940 100 92 881.4 85 800 80 68.9 600 60 9.2
Slide 14: Shareholder Return Policy
Shareholder Return Policy Increase dividends reflecting business forecast FY3/18 FY3/19 Actual Actual/Forecast yen/share 14 Interim yen/share dividend 13 * yen/share Year-end dividend 13 yen/share 14 * yen/share 28 yen/share Total 26 * Dividend for FY3/19 will be decided on business performance at p
Slide 15: Top Priority for 2nd Half
Top Priority for 2nd Half Using all means possible to hit ¥1 trillion / ¥100 billion targets next fiscal year! December 6, 2018 15
Slide 16: Management Strategy based on the Recent External Environment
Management Strategy based on the Recent External Environment December 6, 2018 16
Slide 17: Future Growth Drivers
Future Growth Driver 1 Ball bearing: growth of external shipment volume and increase in ASP 2 Motor: Various motors for auto, brushless motors for high-end home appliance, and DC brush motors 3 Sensor to grow further including MINEGETM 4 U-Shin improvement and synergy creation through various produc
Slide 18: Present Strategy and Shareholders Return
Present Strategy and Shareholders Return 1 Accelerate growth by both M&A and organic through INTEGRATION of existing products 2 (¥1 trillion + ¥100-200 billion) Gain a firm foothold on the basis of ¥1 trillion sales 3 Clarify the growth driver via launching new products through INTEGRATION 4 Flexibl
Slide 19: Toward Further Growth
Toward Further Growth Quickly establish firm basis of ¥1 trillion and/or 100 billion toward further growth Machined Components Sales Electronics Sales (including Mitsumi) Operating Income M&A (Billion yen) 1,080 1,000 940 881.4 102 92 85 68.9 FY3/18 FY3/19 FY3/20 FY3/21 FY ‘X/3 (Plan) (Plan) (Plan)
Slide 20: 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