Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 2023 Earnings Presentation
46 slides from Minebeamitsumi's earnings presentation, Nov 2, 2022
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2023
Business Results Second Quarter of Fiscal Year Ending March 31, 2023 MinebeaMitsumi Inc. November 2, 2022
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Business Update & Management Strategy November 2, 2022 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, Senior Managing Executive Officer November 2, 2022 3
Slide 4: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Net sales hit a quarterly record high Operating income hit a 2Q record high FY3/22 FY3/23 Change (Millions of yen) 2Q 1Q 2Q YoY QoQ Net sales 281,955 251,040 330,021 +17.0% +31.5% Operating income 25,005 14,255 26,394 +5.6% +85.2% Profit before taxes 2
Slide 5: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Net sales hit a 1H record high FY3/22 FY3/23 Change FY3/23 1H (Millions of yen) 1H 1H YoY August Forecast vs. Forecast Net sales 530,260 581,061 +9.6% 568,000 +2.3% Operating income 44,633 40,649 -8.9% 41,000 -0.9% Profit before taxes 44,319 42,458 -4.
Slide 6: Net Sales, Operating Income/Margin
Net Sales, Operating Income/ Margin Net sales (Billions of yen) Operating income Operating margin 330.0 304.3 289.5 275.7 282.0 274.3 251.0 248.3 251.0 2Q Excl. FX 21.0 29.4 FX effects ＋8.4 FX forward contract -3.0 Actual 26.4 187.5 26.4 25.8 1Q 25.0 Excl. FX 12.8 FX effects ＋2.8 21.7 FX forward con
Slide 7: 2Q Actual: Differences from the Forecast as of August
2Q Actual: Differences from the Forecast as of August (Billions of yen) 330.0 317.0 Net Sales 26.7 26.4 Operating Income November 2, 2022 7
Slide 8: Machined Components
Machined Components Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 26.9% 27.0% 24.8% 24.5% 24.4% 22.0% 20.9% 20.1% 20.0% 51.3 18.2% 3.9 46.0 46.4 12.5 44.1 44.1 44.3 11.9 11.6 43.1 4.7 5.4 8.2 11.3 39
Slide 9: Electronic Devices & Components
Electronic Devices & Components Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 8.7% 5.6% 4.7% 6.0% 6.5% 4.1% 4.1% 3.3% 2.7% 0.2% 98.6 98.0 94.9 96.2 1.1 93.7 1.0 8.7 90.7 1.1 90.4 0.9 90.7 1.4 1.1 10.1
Slide 10: MITSUMI Business
MITSUMI Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 11.4% 137.4 10.2% 11.3% 9.5% 10.5% 8.7% 134.2 6.8% 6.6% 3.6% 114.3 0% -1.0% 110.7 111.0 15.7 107.2 15.2 86.8 79.4 11.3 76.8 10.2 9.9 9.1 7.6 56.6 5.1 2.9 (0.6) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 11: U-Shin Business
U-Shin Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 5.4% 4.5% 2.9% 1.5% 0% 42.9 -0.1% -0.2% -0.9% -0.9% 39.9 36.9 1.7 36.1 36.0 -7.9% 32.7 1.2 1.2 30.7 32.3 -13.9% 0.6 26.6 (0.1) (0.0) (0.3) (0.3) 15.6 (2.2) (2.5) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1
Slide 12: Profit Attributable to Owners of the Parent / EPS
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) 20.4 20.1 18.4 16.1 15.5 14.7 13.2 50.4 48.6 45.4 10.7 38.2 39.5 36.1 32.3 7.2 26.4 2.2 17.6 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 F
Slide 13: Inventory
Inventory (Billions of yen) 264.4 272.8 224.6 214.1 219.3 204.4 195.5 186.5 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 FY3/22 FY3/23 November 2, 2022 13
Slide 14: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 191.4 117.0 33.6 84.4 86.9 75.2 46.5 83.4 42.9 23.2 21.7 14.8 (9.9) FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/23 1H Forecast (100.7) *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and c
Slide 15: Forecast for Fiscal Year Ending March 31, 2023
Forecast for Fiscal Year Ending March 31, 2023 Full-year forecast revised upward FY3/22 FY3/23 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,124,140 581,061 668,939 1,250,000 +11.2% Operating income 92,136 40,649 74,351 115,000 +24.8% Profit before taxes 90,788 42,458 71,54
Slide 16: Forecast for Business Segment
Forecast for Business Segment FY3/22 FY3/23 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,124,140 581,061 668,939 1,250,000 +11.2% Machined components 177,470 97,688 102,312 200,000 +12.7% Electronic devices and components 371,023 179,405 190,595 370,000 -0.3% MITSUMI busin
Slide 17: Business Update & Management Strategy
Business Update & Management Strategy November 2, 2022 Yoshihisa Kainuma Representative Director, CEO & COO November 2, 2022 17
Slide 18: 1H Results: Steadily preparing for further growth
1H Results Steadily preparing for further growth Ball Bearing Production Capacity of 345 million units Bearings has been established Aircraft Posted ¥1bn in operating income for September components Motors Maintained operating margin despite rising material cost Analog Performance remained strong se
Slide 19: Acquired Drivers to Accelerate Organic Growth
Acquired Drivers to Accelerate Organic Growth Foundation for “Electro Mechanics SolutionsTM” completed Electro Mechanics electronics ultra precision technology machining technology Solutions Established X Tech Business Headquarters staffed mainly by 280+ software engineers from Honda Tsushin Kogyo N
Slide 20: Products to Solve Social Issues Drive Growth
Products to Solve Social Issues Drive Growth Accelerate product development with a focus on 8 Spears Bearing Low birthrate Motor Analog Technologies required Semiconductors for new era products Connected Access Sensor Software High Connector Autonomous capacity driving IoT/ Wireless Power Supply Nov
Slide 21: Key Points of FY3/23 Forecast
Key Points of FY3/23 Forecast Finally to achieve ¥100bn in operating income, a new record high! 3 Spears (bearings, motors, and analog semiconductors) + OIS continue to drive overall performance up Bearings remain strong, production will be in full swing Motors continue to grow in 2H despite H
Slide 22: Machined Components
Machined Components Unparalleled competitiveness takes operating income to exceed ¥50bn 1 Ball bearings Ball Bearing and Rod-end Sales by Application Automobile Strong sales of products for automobile and data center applications despite the impact of macroeconomic Other (OA, Home electronics, slo
Slide 23: Electronic Devices and Components
Electronic Devices and Components Steady growth especially in motors Motors Motor Sales by Application Other Automobile Price adjustments and improved productivity (High-end home electronics, partially offset the impact of slowdown in the HDD medical devices market as well as the Shanghai and FAs)
Slide 24: MITSUMI Business (1)
MITSUMI Business (1) MITSUMI business are shining! 102 1 Analog semiconductors Analog Semiconductors Sales (Billions of yen) 92 Sales for this fiscal year expected to reach ¥85bn Production remains at full capacity with strong sales of 85 IGBTs as well as automobile and medical products 77.5 des
Slide 25: Further Growth of Analog Semiconductors
Further Growth of Analog Semiconductors Analog semiconductor market continues to grow over medium to long term Market demand forecast for analog semiconductors revised upward despite downward for overall semiconductors Overall semiconductor market growth forecast Medium-term market growth forecasts
Slide 26: [Reference] Analog Semi. Order Volume Trend
[Reference] Analog Semi. Order Volume Trend Past performance indicates it may soon bounce back from the bottom? Keep eye on historical data and market trends so we are ready to get in on the ground floor 1 Lehman Crisis (3 months) 2 US-China trade friction (3 months） 3 COVID-19 （2 months） Backlog Or
Slide 27: MITSUMI Business (2)
MITSUMI Business (2) Accelerate synergy creation through INTEGRATION in connectors business 2 Optical devices / Mechanical comp. Naga Factory (the Philippines) Optical device production, orders, and shares on par with projection. Expand customer base and move into new business fields Completion
Slide 28: Further Growth of Connectors
Further Growth of Connectors Connectors to focus on automobile and communication to grow strongly Aiming to increase sales in the automobile, communications and factory automation sectors. Medium-term market growth forecasts for connector Total sales of three companies by Application : Our focus are
Slide 29: Direction of Connector Business
Direction of Connector Business Provide total solution by Integration of three companies (Example: in-vehicle camera) Connectors, cables and harnesses from the camera to the ECU Variation Total solution ECU for Mini-Coaxial Mini-Coaxial camera MP Relay connector Relay and TAK LVDS HSD waterproofing
Slide 30: U-Shin Business
U-Shin Business Overcoming headwinds, full recovery is imminent 1 Automobile Next growth drivers with INTEGTATION and added vaue Flush handle: Get back on track as automobile production picks up When a person with a remote control key approaches steam the car, the handles automatically comes out
Slide 31: Access Product Share No.1 Strategy
Access Product Share No.1 Strategy Aiming for sales of 300 billion yen and OPM of 10% U-Shin + Honda Lock U-Shin + Honda Lock U-Shin + Honda Lock 12.2% 7.3% 4.5％ Company A Company A Others Company A Others 18.5% 23.2% 15.6% 11.1% 29.6% Others 14.3% Company D Power Door Company F 7.9% Latch 16.6% 10.
Slide 32: Estimate for Next Fiscal Year
Estimate for Next Fiscal Year Key businesses that will see higher operating income next fiscal year Bearings Increase monthly production capacity by 25 million units Aircraft Operating income will fully return to pre-pandemic level components Continue to launch new mass produced automobile Motors pr
Slide 33: Progress on Announced M&As
Progress on Announced M&As Progress as expected to realize integration synergies • Became a consolidated subsidiary as of September 16, 2022 Honda • Squeeze-out by the end of the year Tsushin • Sales and operating income are recorded in the MITSUMI Kogyo business segment • Became a consolidated subs
Slide 34: To Issue Green Bonds
To Issue Green Bonds Management Strategy to Solidify the Foundation for the Company's 100th Anniversary (2051) R Q C D E S S uality ost elivery co /efficiency ervice peed Contribute to global CO2 emission reductions through two pillars (1) Challenge to carbon neutrality (2) Expand “MMI Beyond Zero”
Slide 35: Dividends
Dividends Interim dividend increased by 2 yen year-on-year Dividends for FY3/23 Interim dividend TBD 20 yen/share Year-end dividend TBD TBD (Forecast) Regarding the year-end dividends for the fiscal year ending March 31, 2023, we will finalize in light of our performance for this fiscal year. No cha
Slide 36: ESG Topics
ESG Topics Integrated Report 2022 published Outlining MinebeaMitsumi’s growth strategy with a new focus on developing products and supplying parts that will solve social issues, in addition to organic growth and M&As. This year’s report features more about our human resource strategies as well as op
Slide 37: 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 38: Reference
Reference November 2, 2022 38
Slide 39: Net Sales, Operating Income/Margin
Net Sales, Operating Income/ Margin (Billions of yen) Net sales Operating income 1,250.0 Operating margin 1,124.1 978.4 988.4 115.0 884.7 92.1 72.0 58.6 51.2 9.2% 8.1% 8.2% 6.0% 5.2% FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast November 2, 2022 39
Slide 40: Machined Components
Machined Components Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Operating income Operating margin 25.4% 25.8% 25.5% 22.0% 200.0 19.8% 188.3 15.5 180.9 177.5 51.0 29.5 47.8 24.5 22.5 34.0 157.4 45.7 20.5 27.0 39.9 37.6 39.3 27.8 31.
Slide 41: Electronic Devices & Components
Electronic Devices & Components Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 5.8% 4.4% 4.6% 4.8% 4.1% 387.3 379.4 4.2 363.8 371.0 370.0 4.3 36.4 4.2 4.0 32.5 4.6 32.6 35.4 38.0 52.5 21.6 64.2 158.5 16
Slide 42: MITSUMI Business
MITSUMI Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.8% 10.2% 510.0 7.2% 6.6％ 6.4% 429.1 5.5% 52.0 361.0 Excl. following 41.8 one time cost 308.4 ABLIC PPA -2.1 Optical Device -1.9 292.2 Extraordinary Total -4.0 expenses/losses approx. +
Slide 43: U-Shin Business
As a result of change of the fiscal year end, U-Shin Business both net sales and operating income of 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) Operating income Operating margin 16
Slide 44: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 35.6 32.8 32.7 31.9 30.1 30.4 29.0 27.5 26.1 25.2 13.4% 13.0% 11.5% 12.1% 10.8% 11.3% 10.8% 10.0% 10.5% 9.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 FY3/22 FY3/23 November 2, 2022 44
Slide 45: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses 140.0 ** ** 104.9 73.5** 54.2 * 52.0 50.1 48.6 46.2 45.5 45.2 36.4 24.9 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/23 1H Forecast * Capital expenditures of FY3/20 do not include the increase of a
Slide 46: ROIC (Return On Invested Capital)
ROIC for U-Shin business are pre-merger result and based ROIC (Return On Invested Capital) on JGAAP, and are not included in the Total until FY3/19. JGAAP until FY3/18 MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/account