Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q3 FY2025 Earnings Presentation
33 slides from Minebeamitsumi's earnings presentation, Feb 5, 2025
Slide 1: Third quarter FY ending March 2025 results introduction
Hello this is Yoshida. Today I would first like to explain the consolidated financial results for the third quarter of the fiscal year ending March 31, 2025. 1
Slide 2: Consolidated results summary
Consolidated net sales for the third quarter of the fiscal year ending March 31, 2025, was down 3.0% year on year and down 12.6% quarter on quarter to total 369,643 million yen. Operating income was up 7.0% year on year and down 6.1% quarter on quarter to total 26,423 million yen. Profit for the per
Slide 3: Quarterly trend in sales, operating income and margin
This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the third quarter was 7.1%, up 0.6 percentage point year on year and up 0.4 percentage points quarter on quarter. 3
Slide 4: Forecast versus actual by segment
Here shows the difference between the forecast as of November and actual results for net sales and operating income by business segment for the third quarter. In PT sales, bearing products primarily affected by the slowdown in the automotive market and products for aircraft fell short of expectation
Slide 5: PT segment 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. Third quarter net sales decreased 5.5% quarter on quarter
Slide 6: Motor, Lighting & Sensing segment trends
This slide shows the quarterly trends for Motor, Lighting & Sensing segment. Net sales decreased 5.1% quarter on quarter to total 101.0 billion yen. Looking at the results by product, we see that sales of motors decreased 4.1% quarter on quarter and resulted in 80.6 billion yen. Sales for HDD and au
Slide 7: Semiconductors & Electronics segment trends
This slide shows the quarterly trends for Semiconductors & Electronics segment. Net sales decreased 25.2% quarter on quarter to total 126.1 billion yen. This was mainly due to decrease in sales of optical devices. Operating income totaled 6.4 billion yen while the operating margin was 5.1%. Operatin
Slide 8: Access Solutions segment trends
This slide shows the quarterly trends for Access Solutions segment. Net sales decreased 2.2% quarter on quarter to total 80.2 billion yen. This was mainly due to a slowdown in the European market. Operating income came to 4.1 billion yen, and the operating margin was 5.2%. Operating income increased
Slide 9: Profit attributable to owners and EPS
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 17.6 billion yen. Earnings per share was 43.8 yen. For the third quarter, foreign exchange losses amounted to 1.8 bi
Slide 10: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the third quarter, inventory totaled 356.6 billion yen, which increased by 20.8 billion yen than what it was three months ago. This was mainly due to the impact of foreign exchange rates. 10
Slide 11: 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 third quarter, net interest-bearing debt, totaling 244.5 billion yen, was up 35.9 billion
Slide 12: Revised full-year forecast
We revised down the net sales and operating income forecast for the fiscal year ending March 31, 2025. Operating income forecast includes a one-time charge of approximately 4.0 billion yen due to the PPA of Minebea Power Semiconductor Devices and Socionext and loss on sale resulting from withdrawal
Slide 13: Forecast by business segment
This slide shows the forecast by business segment. 13
Slide 14: Forecast revision versus November forecast
This chart shows the difference between the revised forecast this time and the forecast as of November. This is all for my presentation. 14
Slide 15: President's message on sub-core businesses
The main message on this slide is in red. Regarding sub-core businesses, since I have not been directly involved with the management of optical devices and mechanical components after the LED backlight, I decided to manage these directly as an operation of 'ICU (Intensive Care Unit)' from December d
Slide 16: Revised forecast and operating income growth
We have revised the forecast downward as shown on this slide, but we still expect operating income to increase by 26.5% YoY. Due to a slight foreign exchange loss, profit for the income has been revised downward to 57 billion yen, which is the current forecast. 16
Slide 17: Core versus sub-core operating income index
In this slide, we have indexed the operating income of both core and sub-core business. The red line presented in this graph is the so-called sub-core businesses (for smartphones and games). Taking the operating income for the fiscal year ended March 2019 as the baseline (100), it initially rose, fo
Slide 18: PT segment outlook and aircraft growth
The PT segment is forecasting operating income of 56 billion yen for the current fiscal year, which means we are finally in the realistic position of 60 billion yen in operating income that we are targeting for a long time. The aircraft business is expected to continue booming in the future. We will
Slide 19: Bearings growth drivers
Although bearings growth may appears to be fluctuating, it have essentially been growing steadily all along. As for this growth trend, we firstly highlight the air-cooling fan motors for data centers. Due to the increase of investments for data center, bearings will naturally be needed. The second t
Slide 20: MLS segment motors and sensing outlook
In the MLS segment, the operating margin for motors is finally approaching 9%. Currently, we are aiming for an operating income of 27 billion yen and sales of approximately 320 billion yen, which would result in an operating margin of over 8%. Although motors are our third spear (of the Eight Spear)
Slide 21: SE segment semiconductors and sub-core businesses
Regarding the SE segment, the operating income from semiconductors is expected to exceed 20 billion yen this fiscal year, and we believe that our niche market strategy was the right approach. On the other hand, although Minebea Power Semiconductor Devices (MPSD) is facing a bit of a slump due to cus
Slide 22: AS segment outlook
We once promised that the AS segment would generate 17 billion yen in operating income, and at first, we thought we had provided a conservative estimate. However, the Chinese market has experienced a significant downturn over the past year, and the profits we had accounted in China have been reduced
Slide 23: Individual investor IR and dividend payout ratio
Since I became president on April 1, 2009, we have not engaged in any IR activities for individual investors. This was because I did not want to cause them to suffer significant losses by investing their retirement and other hard-earned savings in our company. However, as mentioned earlier, we are n
Slide 24: Cautionary statement on future projections
February 5, 2025 MinebeaMitsumi to Create Value igh Diff 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 fro
Slide 25: Reference
February 5, 2025 Reference 25 25
Slide 26: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales Operating income <O- Operating margin income prior to 30 FY3/24 has been revised in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD,, 108" 1,402.1 1,292.2 “Operating Minebea Connect inc., and Minebea AccessSolution
Slide 27: Precision Technologies (PT)
Precision Technologies (PT Net sales (Billions of yen) Operating income (Billions of yen) [= Ball Bearings _* Rod-ends/Fasteners = pmc’ | ee. [= Operating income =O Operating margin ] “The sub-segment name has been changed to PMC (Precision H 245 H Mechanical Components) from Pivot assemblies fromFY
Slide 28: Motor, Lighting & Sensing (MLS)
Net sales (Billions of yen) [= Motors “Electronic devices © Sensing devices * Other ] 371.0 Operating income (Billions of yen) = Operating income =O= Operating margin | 5.8% 5.9% 4.8% ge 3.206 32% e-°" ° 3% 363.8 —s i} 21.6 ‘ i 1 ' ' 1 1 ' ' 1 1 i ' 1 1 4 17.6 ' ' it 14 1 1 ' i : 1 ' 1 1 1 11.9 1 H
Slide 29: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Net sales (Bilions of yen) Operating income (Billions of yen) _“rsccosence win raizaionsizes for HONDA TSUSHIN KOGYO CO., LTD, and [== Operating income -O-Operating margin | tinebes Connect ne 530.1 “Excl. special factors 510.0 9.8% omen 494.7 Toketeted ° 1 1 6.6% 7
Slide 30: Access Solutions (AS)
Access Solutions (A Operating income (Billions of yen) *Operating income priorto 30 FY2/24 has been revised in accordance with finalization of PPA for Minebea AccessSolutions inc, [= Operating income “0 Operating margin | erst peo tecore Excl.-4.3 of onetime expense for restructuring costs in Europe
Slide 31: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) [= S.G.&A. expenses =O~ S.G.&A. to sales ratio | February 5, 2025 3 MinebeaMitsumi 31
Slide 32: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) [= Capitalexpenditure m= Depreciation & Amortization expenses | 147.0* 83.6 90. 73.5° tot - 58.4" 60.8 1 1 64.0 ; 53.0 478 ror ' 1 ' 1 1 1 ' 1 i 1 1 1 1 1 1 ' ! ' ' 1 ' ' 1 ' / FY3/23 . FY3/24 , FY3/25 , FY3/25 1Q-3Q Forecast * Capital expenditures
Slide 33: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) MinebeaMitsumi NOPAT (operating income + extraordinary profitioss) x (1-tax rate) (Notes receivable/accounts receivable + inventories ROIC Invested capltal (ican essa news perebetccrunt prea) Calculated using business assets (trade receivable/payable, inventories, n