MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q1 FY2018 Earnings Presentation
19 slides from MinebeaMitsumi's earnings presentation, Aug 4, 2017
Slide 1: Business Results First Quarter of Fiscal Year Ending March 31, 2018
MinebeaMitsumi ite Value through Difference Passion to Crea Business Results First Quarter of Fiscal Year Ending March 31, 2018 MinebeaMitsumi Inc. August 4, 2017
Slide 2: Consolidated financial results for the first quarter
Consolidated financial results for the first quarter of the fiscal year ending March 2018 totaled 193,204 million yen. That figure is up 60.6% year on year but down 1.6% quarter on quarter. Operating income increased 2.4-fold year on year and 19.3% quarter on quarter to total 17,062 million yen. Net
Slide 3: First quarter net sales hit an all-time high
First quarter net sales hit an all-time high. LED backlights and camera actuators for smartphone and other applications are expected to drive sales up in the second quarter when demand is usually high. 3
Slide 4: First quarter operating income highest ever recorded
First quarter operating income was also the highest ever recorded. This was the third straight quarter we saw operating income rise year on year. The second quarter operating income figure should exceed the first quarter results as demand for LED backlights and camera actuators for smartphone pick u
Slide 5: Machined components segment results
This slide shows the results for the machined components segment. First quarter net sales were down 2% quarter on quarter to total 40.6 billion yen while operating income was up 3% to reach 10.4 billion yen and the operating margin grew 1.1 percentage points to hit 25.6%. Although production and shi
Slide 6: Electronic devices and components segment results
This slide shows the results for the electronic devices and components segment. First quarter net sales were down 9% quarter on quarter to total 104.4 billion yen, operating income rose 22% to total 6.8 billion yen, and the operating margin edged up 1.7 percentage points to reach 6.6%. Motor sales s
Slide 7: Mitsumi business segment results
This slide shows the results for the Mitsumi business segment. The first quarter net sales totaled 48.1 billion yen, operating income totaled 3.8 billion yen, and operating margin reached 7.9%. The factors driving the segment's good performance included significantly improved productivity for camera
Slide 8: First quarter net income at all-time high
First quarter net income also reached an all-time high. Although net income declined quarter on quarter, if we were to exclude gain on negative goodwill and the loss from the redemption of bonds, which were respectively recognized as an extraordinary gain and loss in the last quarter, we would see a
Slide 9: Quarterly SG&A expenses
Quarterly SG&A expenses rose 0.5 billion yen quarter on quarter to total 23.8 billion yen. The SG&A expenses-to-sales ratio grew 0.4 percentage points from the previous quarter to reach 12.3%. 9
Slide 10: Inventories at end of first quarter
Inventories as of the end of the first quarter were up 13.6 billion yen from what they were three months ago to total 134.0 billion yen. The increase was due mainly to the retained inventory of components for new smartphone models and game consoles just prior to shipment. Inventory should reach an o
Slide 11: Capital expenditures and depreciation and amortization
Capital expenditures for the first quarter totaled 10.7 billion yen while depreciation and amortization expenses amounted to 7.2 billion yen. We expect capital expenditures as well as depreciation and amortization expenses for this fiscal year to be higher due mainly to the Mitsumi business segment'
Slide 12: Net interest-bearing debt and free cash flow
At the end of the first quarter, net interest-bearing debt, which is total interest- bearing debt minus cash and cash equivalents, was down 18.4 billion yen from the end of the previous fiscal year to total 52.5 billion yen. This fiscal year, we expect free cash flow to increase significantly as pro
Slide 13: Forecast for fiscal year ending March 2018
This is a summary of our forecast for the fiscal year ending March 2018. We expect net sales, operating income, ordinary income, and net profit to hit record highs this fiscal year. In the first half of this fiscal year, we expect increased external shipment volumes of ball bearings continued from J
Slide 14: Forecast by business segment
This slide shows the forecast by business segment. 14
Slide 15: Miniature ball bearings performance
This slide shows the current performance of miniature ball bearings, our anchor product line. External demand for miniature ball bearings is quite strong. The external shipment volume for the first quarter has grown year on year for the last 19 quarters in a row and hit a monthly record high of 187
Slide 16: LED backlight business status
Let's now move on to look at the status of our LED backlight business. Production of LED backlights for our major customers got off to a smooth start this first quarter as demand remained within the usual range of ups and downs unlike last fiscal year. Boasting high quality and low cost, orders for
Slide 17: Mitsumi business and Seven Spears
Moving on to the Mitsumi business, we saw operating income for the first quarter outperform our initial projection and increase quarter on quarter. The factors behind this increase that were responsible for driving Mitsumi business profits up included the better-than-expected demand for camera actua
Slide 18: Joint development with Ricoh on bed sensor system
Now I would like to touch on the joint business development agreement with Ricoh to commercialize a bed sensor system, which we announced on May 18. Being marketed first to nursing care facilities, our bed sensor system, combining MinebeaMitsumi's sensor technology with the Ricoh Group's data collec
Slide 19: August 4, 2017
August 4, 2017 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 si