MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Minebea — FY2004 Earnings Presentation
31 slides from MinebeaMitsumi's earnings presentation, May 14, 2004
Slide 1: Business Results, Fiscal Year ended March 31, 2004
Business Results Fiscal Year ended March 31, 2004 Minebea Co., Ltd. Tsugio Yamamoto Representative Director, President and Chief Executive Officer May 14, 2004
Slide 2: 1. Business Results and Forecast
1. Business Results and Forecast May 14, 2004 1
Slide 3: Consolidated Results for Fiscal Year ended March 31, 2004
Consolidated Results for Fiscal Year ended March 31, 2004 Year ended Year ended Change (Millions of yen) Mar. '03 Mar. '04 yoy Net Sales 272,202 268,574 -1.3% Operating Income 19,352 18,104 -6.4% Ordinary Income 13,420 13,800 +2.8% Income before 495 12,958 26x Income Taxes Net Income -2,434 6,019 -
Slide 4: Full Year Net Sales and Operating Income by Segment
Full Year Net Sales and Operating Income by Segment Year ended Year ended Change (Millions of yen) Mar. '03 Mar. '04 yoy [Net Sales] Machined components business 118,117 111,692 -5.4% Bearing-related products 97,938 94,604 -3.4% Other machined components 20,180 17,089 -15.3% Electronic Devices and c
Slide 5: Fourth Quarter Net Sales and Operating Income by Segment
Fourth Quarter Net Sales and Operating Income by Segment Year ended Year ended Mar. '04 4Q change Mar. '03 (Millions of yen) 4Q 1Q 2Q 3Q 4Q yoy qoq [Net Sales] Machined components business 29,085 28,606 27,059 27,434 28,593 -1.7% +4.2% Bearing-related products 24,035 23,959 23,169 23,324 24,152 +0.5
Slide 6: Sales of Machined Components Business
Sales of Sales ratio Bearing-related products Machined Components Business 35% 6% (Billions of yen) Other machined Change components 140 yoy 118.1 120 111.7 -5% 114.0 FY Mar’04 Net Sales 20.2 excluding effect of FX fluctuations 100 17.1 -15% 17.2 17.2 Ball bearings + 1% yoy 16.7 -3% 80 Rod-end & sph
Slide 7: Sales of Rotary Components
Sales of Rotary Components Sales ratio Rotary 32% (Billions of yen) components 140 123.6 120 Change yoy FY Mar’04 Net Sales 100 excluding effect of FX fluctuations 86.7 +10% 79.2 Spindle motors +33% yoy 80 19.8 -2% Fan motors +3% 20.2 Stepping motors - 0% 60 25.5 -0% 25.6 40 • FDB spindle motors for
Slide 8: Sales of Other Electronic Devices
Sales ratio Sales of Other Electronic Devices Other electronic devices 26% (Billions of yen) Change yoy 74.9 70.1 -6% 80 4.4 FY Mar’04 Net Sales 6.1 +39% 62.4 excluding effect of FX fluctuations 60 12.4 12.9 +4% PC keyboards - 3% yoy 14.0 10.5 -25% 40 15.9 15.3 -4% • Without the terminated 20 busine
Slide 9: Net Sales by Segment
Spindle motor business reached four-fold in sales Net Sales by Segment Back light business built up Termination of imported Withdrawal from switching power furniture retail business supply and related businesses Withdrawal from automobile Sale of IMC Magnetics Corp. wheel business Launch of Terminat
Slide 10: Operating Income by Segment
Profitability of machined components improved. Operating Income by Segment Necessary to improve profitability of electronic devices and components. (Billions of yen) 25 14% 20 10.9% 11.5% 12% 10% 15 7.9% 19.5 22.0 8.3 23.9 22.1 7.1% 19.5 8% 10 8.3 6.7% 6.7% 18.5 6% 5 0.8 4% -0.2 -1.4 0.5 0 2% FY end
Slide 11: Sales by User Industry and by Region
Fiscal Year ended March 31, 2004 Sales by User Industry and by Region Sales by User Industry PC and PC Home Automobile Aerospace OA & IT related Motors Others Total electronics equipment % of Sales 7.8% 9.2% 9.9% 10.6% 44.4% 5.4% 12.7% 100.0% Change yoy +6.1% -4.9% -3.5% +3.9% -1.4% -2.1% -4.5% -1.3
Slide 12: SG & A Expenses
SG & A Expenses Plans to reduce in real in term in FY Mar’05 (Billions of yen) 60 25% 50.5 51.1 51.3 49.4 50 47.2 47.0 20% 40 18.4% 18.1% 17.7% 17.8% 17.6% 15% 30 15.7% 10% 20 10 5% 0 0% FY end Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E S.G.&A. expenses S.G.&A. to sales ratio May 14, 2004 11
Slide 13: Capital Expenditure
Capital Expenditure Main areas of capital (Billions of yen) investment in FY Mar’05 Ball bearings 50 Pivot assemblies Spindle motors 39.9 New keyboard factory in China 40 Minebea-Matsushita Motor Corporation 30 26.2 23.0 19.5 18.8 20 16.4 10 0 FY end Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E
Slide 14: Interest-Bearing Debt
Interest-Bearing Debt (Billions of yen) 200 168.3 173.2 168.7 152.9 146.7 148.0 150 100 47.0 50 9.7 16.0 5.2 6.8 -1.0 0 FY end Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E -50 Interest-bearing debt Net interest-bearing debt Cash flow May 14, 2004 13
Slide 15: Forecast for Fiscal Year ending March 31, 2005
Forecast for Fiscal Year ending March 31, 2005 Year ended Year ending Change (Millions of yen) Mar. '05 Mar. '04 Forecast yoy Net Sales 268,574 300,000 +11.7% Operating Income 18,104 20,000 +10.5% Ordinary Income 13,800 15,500 +12.3% Income before 12,958 14,500 +11.9% Income Taxes Net Income 6,019 9
Slide 16: Forecast of Net Sales and Operating Income by Segment
Forecast of Net Sales and Operating Income by Segment Year ended Year ending Change (Millions of yen) Mar. '05 Mar. '04 Forecast yoy [Net Sales] Machined components business 111,692 114,000 +2.1% Bearing-related products 94,604 96,800 +2.3% Other machined components 17,089 17,200 +0.6% Electronic De
Slide 17: 2. Strategy and Outlook
2. Strategy and Outlook May 14, 2004 16
Slide 18: Basic Management Directions
Basic Management Directions 1. Further reinforce our mainstay bearings and bearing-related products 2. Build our operations in the area of precision small motors and other rotary components into a second pillar of our operations after bearings and bearing- related products 3. Increase the ratio of h
Slide 19: Measures for the Last Fiscal Year
Measures for the Last Fiscal Year Six Measures Achievement 1. Expand and further strengthen Ball Bearing business ------- ✓ 2. Improve profitability of HDD Spindle Motor business --------- ✕ review 3. Improve profitability of Pivot Assemblies business ------------ ✓ 4. Improve profitability of Other
Slide 20: Goals and Measures for the Current Fiscal Year
Goals and Measures for the Current Fiscal Year Grow in the expanding ball bearing market Accelerate sales and R&D activities to capture new market requirements Establish framework for the expanding small precision motor business Build structure to maximize growth and seek synergy effect with bal
Slide 21: Ball Bearings – Growing Market
Ball Bearings – Growing Market Phase of Accelerated Growth Our estimate Annual Growth 10% or more Minebea Group’s Miniature and Small-Sized 100 million Bearing Shipment Growth and Market Trend pieces/year 25 Spread of digital home electrical appliances Colorization of copy machines Expansion of air
Slide 22: Miniature and Small Sized Ball Bearings: New Applications and Technology
Miniature and Small Sized Ball Bearings New Applications and Minebea’s Technology Development of Products with Expanding Application Diversity Technical Advantages (Functional Requirement ) Cleaners : High-Performance High Speed Rotation Home appliance with digital electronics HDDs (Pivot) : Digital
Slide 23: Ball Bearing Business - Next Step
Ball Bearing Business - Next Step Miniature and Small-sized Ball Bearing Shipments Business Strategy from mid-2002 onward (Million Units/Month) Building up to 180 million units of monthly sales and production Expand scale of operation Rigorous effort to reinforce competitiveness Accomplished Shipmen
Slide 24: Minebea-Matsushita Motor Corporation
Minebea-Matsushita Motor Corporation Date of establishment : April 1, 2004 <Optimization of Production Bases> Minebea Shanghai Principal Office : Meguro-ku, Tokyo Fan motors Capital : 10 billion yen Thailand (THMM) Stepping motors Share holding ratio : 60% by Minebea, 40% by Matsushita Electric Indu
Slide 25: Products of Minebea-Matsushita Motor
Products of Minebea-Matsushita Motor Product example Axial DC motor Fan Motors z Superior airflow and air pressure characteristic with new design fan blade Market: PC home appliances, and optimized design motor AV equipment and others z Product range compatible with either ball bearing or high perfo
Slide 26: Expand Synergy of Bearing and Motor Businesses
Expand Synergy of Bearing and Motor Businesses HydroWave Sleeve Fluid Dynamic New type FDB Ball Bearing Bearing ROF, HMF type Bearing Bearing FDB Motor Products HDD Spindle Motors DC AC Fan Motors HB PM Stepping Motors Vibration Motors DC brush Motors DC brushless Motors White goods Diversification
Slide 27: HDD Spindle Motor – Next Step
HDD Spindle Motor – Next Step Shipments in Jan-Mar 2004 HDD and Minebea’s Spindle Motors (Millions Units / Month) Minebea’s Goals 25 Improve profitability. 20 <1.8" Early entry into 2.5 inch and less HDD market. 15 2.5" Win orders for new FDB products. 10 3.5"ATA Enterprise 5 0 Minebea’s HDD S
Slide 28: New Fluid Dynamic Bearing Units
New Fluid Dynamic Bearing Units ROF • Mainly for 3.5” HDD. • Manufacture on the same production line and with the same manufacturing technology for ball bearing production. • Better performance and lower cost compared to existing products. HMF • Target HDD of 2.5” and less. • Joint development with
Slide 29: Display Peripheral Component Business
Display Peripheral Component Business R&D Flat Panel Display (FPD) Optical-related technology Peripheral Component Business Electronic circuit technology Front Light & Back Light LED Back Light Inverters CCFL Lighting Devices Developing new high-intensity, Back Light Inverters thin, large sized prod
Slide 30: R&D Related to Optical Technology
R&D Related to Optical Technology Flat Panel Display (FPD) Market Inverter for LCD back light Products Products LCD back light and front light assembly Optical Technology Optical Design Electronic circuit technology Plastic molding Optical Simulation technology Power electronics Nano-machining Optic
Slide 31: Business Results
Business Results Fiscal Year ended March 31, 2004 Minebea Co., Ltd. http://www.minebea.co.jp/ Any statements in the presentation which are not an historical fact are future projections made based on certain assumptions and our management's judgment drawn from currently available information. Please