Slide 1: Business Results, Fiscal Year Ended March 31, 2009
Business Results Fiscal Year Ended March 31, 2009 May 8, 2009 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy 1 May 8, 2009
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer 2 May 8, 2009
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net Sales and Income decreased significantly due to currency impacts, higher raw material costs and global recession Year ended Year ended Forecast announced Change Mar. '08 Mar. '09 in January 2009 (Millions of yen) Full year Full year YoY Full year vs.forec
Slide 5: Quarterly Summary of Consolidated Business Results for 4Q
Quarterly Summary of Consolidated Business Results for 4Q A significant decline in net sales caused losses FY ended FY ended Mar. '09 Change (Millions of yen) Mar. '08 4Q 3Q 4Q YoY QoQ Net sales 81,042 59,166 46,384 -42.8% -21.6% Operating income 7,286 4,532 -2,824 N.A. N.A. Ordinary income 6,999 4,
Slide 6: Net Sales
Yearly Net Sales (Billions of yen) Decreased 23.4% YoY 400 331.0 334.4 318.4 294.4 300 268.6 256.2 230.0 200 200.0 100 0 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E May 8, 2009 5
Slide 7: Operating Income
Yearly Operating Income (Billions of yen) Decreased 56.4% YoY 35 9.2% 10.0% 30 7.9% 25 8.0% 6.7% 6.1% 6.1% 20 30.8 5.2% 6.0% 4.8% 26.3 5.0% 15 19.3 14.0 4.0% 10 18.1 10.0 14.1 13.4 2.0% 5 0 0.0% Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E Operating income Operating margin May 8, 2009 6
Slide 8: Machined Components Business
Business Segments Machined Components Business Net sales Operating income (Billions of yen) Operating Income Operating Margin Ball bearings Rod-ends Pivot assemblies Other machined components 30 26% (Billions of yen) 27.8 150 26.2 144.0 24% 137.7 25 24.6 18.0 129.6 19.4 21.6 22% 116.1 20.0 115.9 111
Slide 9: Electronic Devices & Components Business
Business Segments Electronic Devices & Components Business Net sales Operating income HDD spindle motors Information motors Others (Billions of yen) Keyboards Electronic devices Speakers 6 3.0% Measuring components Operating Income (Billions of yen) Operating Margin 200 193.4 190.4 4 188.8 7.9 10.7
Slide 10: Net Income
Yearly Net Income (Billions of yen) Decreased 85.0% YoY （Yen） 18 40.9 45 16 40 14 32.2 35 12 16.3 30 10 12.9 25 8 15.1 16.7 20 13.9 6 10.7 6.5 15 6.0 4 5.6 6.2 9.0 10 4.3 2 2.4 3.5 5 0 0 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E Net income Net income per share (right axis) May 8, 2009
Slide 11: S.G. & A. Expenses
Yearly S.G. & A. Expenses (Billions of yen) 20.0% 60 20% 17.6% 17.8% 48.3 49.2 50.0 18.3% 50 47.2 47.1 16.4% 45.6 42.0 15% 15.5% 14.9% 40 14.2% 40.0 30 10% 20 5% 10 0 0% Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E S.G. & A. expenses S.G. & A. to sales ratio May 8, 2009 10
Slide 12: Inventories
Yearly Inventories (Billions of yen) 60 48.9 47.0 45.9 41.5 42.4 40 38.7 20 0 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 May 8, 2009 11
Slide 13: Capital Expenditure & Depreciation
Yearly Capital Expenditure & Depreciation (Billions of yen) 30.0 26.4 24.0 24.6 24.9 24.0 23.1 22.5 21.9 21.4 20.2 20.0 17.0 10.0 10.0 0.0 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E Capital Expenditure Depreciation & Amortization Expenses *From FY 3/09, due to change in lease accounting, asset
Slide 14: Net Interest-Bearing Debt
Yearly Net Interest-Bearing Debt (Billions of yen) (Billions of yen) 160.0 150.7 146.9 30.0 128.5 23.4 120.0 109.6 110.0 96.0 20.0 22.7 80.0 16.0 9.1 12.5 10.0 40.0 3.8 0.0 0.0 Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10E Net interest-bearing debt Free cash flow (right axis) Net Interest-bearing
Slide 15: Cost Reduction Measures
Cost Reduction Measures Cuts in executive pay ・Executive pay cut by 5% to 30%. No executive bonuses this year. Closure of UK Skegness factory ・Closed in April, about 2 billion yen per year cost reduction expected. Early retirement program in Thailand ・2,750 employees (about 10% of total) in Thailand
Slide 16: Forecast for Fiscal Year Ending March 31, 2010
Forecast for Fiscal Year Ending March 31, 2010 A clear forecast is difficult, but we assume only limited and gradual global economic recovery this fiscal year FY ended Fiscal Year ending Mar. '10 Mar. '09 (Millions of yen) 1st Half Range 2nd Half Range Full year Range Upper Lower Upper Lower Upper L
Slide 17: Policy and Strategy
Policy and Strategy Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 16
Slide 18: My Mission as CEO
My Mission as CEO Increase earnings per share Maximize earnings per share and Increase increase shareholders’ value shareholders’ value Lay foundation for Minebea’s 100th th anniversary Enhance corporate resources and be clear about exactly Enhance where we are heading corporate resources May 8, 200
Slide 19: In Order to Increase Earnings Per Share
In Order to Increase Earnings Per Share People Products Funds Time Maximize corporate resource efficiency What exactly do we have to do? May 8, 2009 18
Slide 20: How Can We Maximize Corporate Resource Efficiency?
How Can We Maximize Corporate Resource Efficiency? Our previous basic management policy Produce better products faster and cheaper in larger quantities than anyone else Win the competition with manufacturing excellence and technological competency What is our Strategy? Must identify our competitive
Slide 21: What Is Our Competitive Advantage?
What Is Our Competitive Advantage? Our unique characteristics Vertically integrated production system from parts to finished products Extensive product lines including Machined components, Rotary components, Electronic devices and components, and Special device Integrate these inherent corporate res
Slide 22: How Can We Integrate Our Strengths?
How Can We Integrate Our Strengths? Must boost integration of our vertical and horizontal strengths Admini Technology stration Manufacturing Marketing Boost Vertical Strength Boost Horizontal Strength Enhance ability to Enhance ability to meet demand for meet customer flexible pricing requirements M
Slide 23: Previous Organization Chart
May 8, 2009 Administration HQ Manufacturing HQ Internal Auditing Management HQ Engineering HQ Operations HQ Sales HQ Ball Bearing BU Rodend / Fastener BU Mechanical Assembly BU Spindle Motor BU Previous Organization Chart Board of Directors Precision Motor BU President, CEO Defense-Related Special P
Slide 24: Current System from Manufacturing to Delivery
Boost Vertical Integrated Strength Current System from Manufacturing to Delivery Minebea Group’s Former Business Model Manufacturing Ball Bearing Headquarters Business Unit Tool and die Press Bearings Independent profit accounting Independent profit accounting Independent profit accounting Business
Slide 25: After Organizational Change: To Enhance Price Competitiveness
Boost Vertical Integrated Strength After Organizational Change: To Enhance Price Competitiveness New Minebea Group Business Model Business Unit Production Parts Division Sales Division Division Profit Customers May 8, 2009 24
Slide 26: Reorganize Business Portfolio
Boost Horizontal Integrated Strength (1) Reorganize Business Portfolio 4 Groups Plus 1 Machined Rotary Electronic Devices Special Device Components Components and Components • Ball bearing • Lighting device • Information motor • Rod end bearing / • Circuit component • Precision motor fastener • Meas
Slide 27: Create New Business Model
Boost Horizontal Integrated Strength (2) (Sales of Hybrid Create New Business Model Components) Electronic Devices Rotary & Components Motor controls, Components Existing etc. Existing products products Units with gears Hybrid Hybrid Components Components Customers Customers Hybrid Components Di es
Slide 28: Electro Mechanics Solution
Boost Horizontal Integrated Strength (3) New Hybrid Components Concept Horizontal integrated strength Electro Mechanics Solution Hybrid Mechanics Electronics Products Strengthen development and marketing of high-value-added hybrid products May 8, 2009 27
Slide 29: Electro Mechanics Solutions: Product examples
Boost Horizontal Integrated Strength (3) Electro Mechanics Solutions: Product examples Fan Motor + Mechanical Component + Electronic Circuits + Software HMSM：Heat Management System Module (Cooling system for data communications/processing equipment) Stepping Motor + Gear BLDC Motor + Gear Box Steppi
Slide 30: Image of Expanding Hybrid Components Sales
Boost Horizontal Integrated Strength (3) Image of Expanding Hybrid Components Sales (Billions of yen) 30 20 10 0 March 2010 FY March 2011 FY March 2012 FY May 8, 2009 29
Slide 31: New Organization Chart
May 8, 2009 Procurement & Logistics Div. Sales Div. EMS Dept. Finance & Administration Div. Operation & Planning Div. Engineering Support Div. CSR Promotion Div. Production Support Div. Business HQ HDD Motor Spindle Motor BU Information Motor BU Precision Motor BU Business HQ Component Micro Actuato
Slide 32: Maximize Earnings Per Share
Maximize Earnings Per Share Need to take action beyond manufacturing Establish new Cost Reduction Promotion Office Review policy of repurchasing own shares Consider various equity measures May 8, 2009 31
Slide 33: Machined Components
Machined Components Strengthen and expand this business area, which is our profit base z Abrupt market slowdown → efforts to maintain profitability z Expand product lines (hybrid products) z Enhanced operational and energy efficiency at the new ball z Completion of new rod end factory bearing factor
Slide 34: Acquisition of myonic
Acquisition of myonic 1. About myonic (1) Founded: 1936 (as RMB SA) (2) Locations: Germany and Czech Republic (production), U.S. and Europe (sales) (3) Sales: 33 million euro (Year ending December 2008) 2. myonic product features (1) Large share in European market of bearing products for dental and
Slide 35: Acquisition of myonic
Acquisition of myonic Products for medical/dental industry (63% of sales) => Expanding market z Ball bearings for dental handpieces Features: 1. Handle ultra high speed: 500,000 rpm 2. Superior retainer technology z Ball bearing assemblies for computer tomography (CT) and mammography devices Feature
Slide 36: Rotary Components
Rotary Components Create synergies by consolidating motor related businesses Bearing Bearing technology technology Automobile Automobile Game Game console console ＨＤＤ ＨＤＤ Parts Parts technology technology Coil Coil technology technology Motor Mobile Mobile phone phone Motor Medical Medical equipment
Slide 37: Launch of Micro Actuator Business Unit
Launch of Micro Actuator Business Unit Growth and synergies resulting from acquisition of FDK’s stepping motor business Advantages in design and processing of certain parts => Urgently implementing across the organization Micro Actuator Business Unit (1) Product lines focusing on small size products
Slide 38: New DC Brush Motors (S Series)
New DC Brush Motors (S Series) Product Features (1) Small, lightweight, high torque (same torque but half the volume of predecessors, or twice the torque but same volume as predecessors) (2) New rounded edge design for increased freedom of installation in equipment (3) Low noise (2-pole 3-slot => 4-
Slide 39: Electronic Device & Component
Electronic Device & Component – Optical Devices – Sensors – Electronics – LED LEDBacklights Backlights z Moving towards mass production of LED backlights for notebook PCs z Working to expand customer base in the automobile industry z Now expanding with aim to achieve largest market share in LED back
Slide 40: Final Challenges for HDD Spindle Motor Business
Final Challenges for HDD Spindle Motor Business zRemaining tasks for improving profitability of HDD spindle motor business Put the spindle motor business into ICU Active involvement of relevant senior executive officers Some positive developments in profitability improvement efforts in fiscal year e
Slide 41: Rebuilding Keyboard Business
Rebuilding Keyboard Business z The business was back in the black for the fiscal year ending March, 2008, as a result of restructuring and a policy focusing on product mix. The business fell back into the red in the fiscal year ended March, 2009, due to declining sales on top of increased material c
Slide 42: Rebuilding Speaker Business
Rebuilding Speaker Business zLaunch of fully fabless operations which had been planned at the beginning of the fiscal year ended March, 2009 was postponed to the second half of the fiscal year upon customer request. This as well as declining sales left the business in the red. Key strategies for fis
Slide 43: Basic Financial Strategy
Basic Financial Strategy Maintain sound financial structure and flexible strategy • Annual dividend of 7 yen (interim 5 yen and year end 2 yen) per share will be proposed due to large decreases in revenue and profit in the fiscal year ended March, 2009 • Net interest-bearing debts did not reach the
Slide 44: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ Any statements in the presentation which are not historical fact are future projections made based on certain assumptions and executive judgment drawn from currently available information. Please note that actual performance may vary signi