Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 FY2025 Earnings Presentation
41 slides from Minebeamitsumi's earnings presentation, Nov 6, 2024
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2025
Business Results Second Quarter of Fiscal Year MinebeaMitsumi November 6, 2024 Ending March 31, 2025 MinebeaMitsumi Inc. November 6, 2024
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Business Update & Management Strategy November 6, 2024 2 MinebeaMitsumi sssion to Create Valve through Oiflerence
Slide 3: Financial Results introduction
Hello this is Yoshida. Today I would first like to explain the consolidated financial results for the second quarter of the fiscal year ending March 31, 2025. 3
Slide 4: Consolidated net sales and operating income for Q2
Consolidated net sales for the second quarter of the fiscal year ending March 31, 2025, was up 11.3% year on year and up 18.9% quarter on quarter to total 422,783 million yen. Operating income was up 29.4% year on year and up 40.6% quarter on quarter to total 28,146 million yen. Profit for the perio
Slide 5: First half summary results
This is the summary result for the first half. Net sales and the operating income hit the first half record high. 5
Slide 6: Quarterly trend in net sales, operating income and margin
This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the second quarter was 6.7%, up 1.0 percentage point year on year and up 1.1 percentage points quarter on quarter. 6
Slide 7: Forecast versus actual results by segment
Here shows the difference between the forecast as of August and actual results for net sales and operating income by business segment for the first quarter. Net sales of PT exceeded the forecast for the ball bearings and pivot assemblies due to the recovery of the data center market, and the robust
Slide 8: Precision Technologies quarterly trends
This slide shows the quarterly trends of PT 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. Second quarter net sales increased 3.6% quarter on quarter
Slide 9: Motor, Lighting & Sensing quarterly trends
This slide shows the quarterly trends for Motor, Lighting & Sensing segment. Net sales increased 7.3% quarter on quarter to total 106.4 billion yen. Looking at the results by product, we see that sales of motors increased 9.0% quarter on quarter to reach 84.1 billion yen. This was mainly due to stro
Slide 10: Semiconductors & Electronics quarterly trends
This slide shows the quarterly trends for Semiconductors & Electronics segment. Net sales increased 51.7% quarter on quarter to total 168.7 billion yen. This was mainly due to increase in sales of optical devices, and semiconductors which incorporated Minebea Power Semiconductor Devices (formerly Hi
Slide 11: Access Solutions quarterly trends
This slide shows the quarterly trends for Access Solutions segment. Net sales increased 0.6% quarter on quarter to total 82.0 billion yen. This was mainly due to increase in sales in Asia market mainly for motorcycles, and automotive devices. Operating income came to 3.5 billion yen, and the operati
Slide 12: Profit attributable to owners and earnings per share
The bar graph here shows trends in profit attributable to owners of the parent while the line graph chart changes in the profit for the period per share. The profit for the period was 12.1 billion yen. Earnings per share was 30.0 yen. For the second quarter, foreign exchange losses amounted to 9.6 b
Slide 13: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the second quarter, inventory totaled 335.8 billion yen, which is 23.8 billion yen less than what it was three months ago. 13
Slide 14: 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 second quarter, net interest-bearing debt, totaling 260.5 billion yen, was up 51.9 billio
Slide 15: Full-year forecast maintained
We maintained the net sales and operating income forecast for the fiscal year ending March 31, 2025. The details by segment are shown on page 17. Regarding the net sales, the PT segment has been revised upward, while revising down the AS segments. For operating income, the PT segment has been revise
Slide 16: Forecast by business segment
This slide shows the forecast by business segment. 16
Slide 17: Revised forecast versus August forecast
This chart shows the difference between the revised forecast this time and the forecast as of August. This is all for my presentation.1717 17
Slide 18: Business Update & Management Strategy
Hello, I’m Yoshihisa Kainuma. I will give a brief overview of our business update and explain our management strategy. 18
Slide 19: Record quarterly sales and operating income
Thanks to your support, we achieved the highest quarterly sales as well as highest operating income for 2Q. In addition, we generated record high sales and operating income for the first half. The results for sub-core businesses, such as those for games and tablets, were slightly below expectations
Slide 20: Forecast not revised amid volatility
At the time we announced our financial results on August 2, 2024, the stock market was, coincidentally, volatile, and the exchange rate fluctuated by more than 10 yen. Today, the yen has been weakening again due to the U.S. presidential election, and it is very difficult to foresee the future. There
Slide 21: Precision Technologies outlook
The performance of Precision Technologies (PT) is very favorable, and the operating income forecast for this fiscal year is approximately 56 billion yen, well above the previous record. This is due to a recovery in data centers, continued content growth in the automotive sector, and a strong current
Slide 22: New carbon-neutral factory in Cambodia
As already announced, we have established a new factory for machined parts in Pursat Province, Cambodia. I call this factory my dream factory that will be carbon neutral, and we held a groundbreaking ceremony on September 20. 22
Slide 23: Motor, Lighting & Sensing outlook
In Motor Lighting & Sensing (MLS), we expect operating income of about 27 billion yen for motors this fiscal year. If we can achieve 27 billion yen this fiscal year, we believe that the next level will be 30 billion yen, and we can finally see an operating income margin of 10% for the fiscal year en
Slide 24: Bed Sensor System at Expo 2025 Osaka
As announced on October 30, we will be exhibiting our Bed Sensor System concept bed at Pavilion of the Pasona Group at the Expo 2025 Osaka, Kansai, Japan. Until now, it has been very difficult to determine the heartbeat, but we have achieved a breakthrough within the company that allows us to measur
Slide 25: Semiconductors & Electronics outlook
With regard to Semiconductors & Electronics (SE), the current market conditions for semiconductors are facing a downturn. In addition, there is the special factor that a customer of Minebea Power Semiconductor Device (formerly Hitachi Power Semiconductor Device, MPSD) has cancelled a project. We are
Slide 26: Acquisition of Socionext's medical-related business
On September 20, we announced the acquisition of Socionext's medical-related business. With this acquisition, the company will obtain the 64-channel technology, which will enable it to take higher- resolution images and deeper images with a handheld equipment. We recognize that this is a potentially
Slide 27: Access Solutions automotive business
What I wanted to share with you most today is that we have finally arrived at a game-changing era for the Access Solutions (AS) business. I recognize many of you have been asking why we are entering the automotive business at this late timing. When I became president, I trademarked the term “Electro
Slide 28: INTEGRATION product examples
This page shows only two examples of our products, but there are many more. Under the slogan "INTEGRATION*," we have been educating our employees that this is the only way forward for us, and we have finally completed a driver IC that can be used not only for one type of motor driver, but also for v
Slide 29: Operating income targets by business
Looking back at the time when we were aiming for sales of 1 trillion yen, there was a period of about three years when we were slightly short of our goal, but this fiscal year we are ready to reach for the level of 1.5 trillion yen. There seems to be a wall for operating income at 100 billion yen, b
Slide 30: Dividend and treasury stock repurchase
The year-end dividend is undecided, but we do not expect it to be less than 20 yen. We were able to purchase treasury stock at a much lower price than expected, fortunately or unfortunately, and we had planned to terminate the repurchase of treasury stock when either the 2.8 million share limit or t
Slide 31: ESG topics
We share the ESG topics on this page. This is all for my presentation. Thank you very much for your attention. 31
Slide 32: Disclaimer on forward-looking statements
November 6, 2024 MinebeaMitsumi to Create Value igh Dif 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
Slide 33: Reference
November 6, 2024 Reference 33 33
Slide 34: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) © Net sales Operating income ~O- Operating margin “Operating income prior to 30 FY2/24 has been revised in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD,, Minebea Connect nc, and Minebea AccessSolutons inc Special 1,402.1
Slide 35: Precision Technologies (PT)
Precision Technologies (PT) Operating income (Billions of yen) Net sales (Billions of yen) [= Ball Bearings * Rod-ends/Fasteners = pwc’ | [= Operating income =O- Operating margin | 256.0 ‘The sub-segment name has been changed to PMC (Precision wroce 25.8% Mechanical Components) from Pivot assembies
Slide 36: Motor, Lighting & Sensing (MLS)
7) _! = D = a c ® ”n co) oD r= 5 re — a = ° -_ ° = 5 ; E a 3 3 3 Operating income (Billions of yen) [= Operating income == Operating margin | ]) i 48% FY3/23 FY3/24 FY3/25 Forecast FY3/22 FY3/23 FY3/24 FY3/22 MinebeaMitsumi ‘Passion to Create Value throu November 6, 2024 36
Slide 37: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Operating income (Billions of yen) ““raczo income prior to 20 FY3/24 has been revised ‘accordance with finalization of PPA forHONDA TSUSHIN KOGYO CO., LTD, and [= Operating income “© Operating margin | _jinebea Connect ne. 9.0%"* 9 72% 6.696 a 5.8% T9% o 55% 5 r FX
Slide 38: Access Solutions (AS)
ccess Solutions (AS) Net sales (Billions of yen) 329, 322.1 5880 _ 1 ' nl ' nl ' 1 ' nl ' 1 ' 1 ' 1 ' 1 ' it 194.7 H 1 fn ' 1 ' it 145.6 H 1 1 ' 1 ' 108.4 ' H H ' 1 ' nl ' 1 ' fn ' 1 ' 1 ' 1 ' 1 ' L ' Fy3/21 Fy3/22 FY3/23 FY3/24 Fy325 Forecast ' . income ‘to 30 FY2/24 has been Operating income (Bill
Slide 39: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) |= S.G.&A. expenses =C- S.G.8A. to sales ratio | November 6, 2024 39 MinebeaMitsumi Dierence ‘Passion to Create Valve through 39
Slide 40: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) |= Capitalexpenditure m™=™= Depreciation & Amortization expenses | 147.0 83.6 890. 1 ' 1 ' . 58.4" 1, 84.0 53.0 toopctt 45.5 48.6 1 I t 39.6 poor y 31.7 root 1 1 1 1 ' 1 1 ' 1 1 ' 1 . ; ' : oe FY3/21 FY3/23 FY3/24 FY3/25 FY3/25 4H Forecast * Capita
Slide 41: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) A F ‘ atin + extraordinary profitiioss) x (1-tax rate MinebeaMitsumt) 20 NOBA Ui trees poems exeneeen omens ata (Notes receivable/accounts receivable + inventories ROIC Invested capital ‘net ttrent assets notes poyeileccouns pyebe Calculated using business assets (t