Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Nomura Investment Forum 2024
34 slides from Minebeamitsumi's conference presentation, Dec 4, 2024
Slide 1: Business Overview and Management Strategy
Nomura Investment Forum 2024 Business Overview and Management Strategy December 4, 2024 MinebeaMitsumi Inc. Director, President COO & CFO Katsuhiko Yoshida
Slide 2: Agenda
Agenda 1. Today’s Point 2. Growth Strategies toward 10% or more Operating Margin 3. Towards Sustainable Growth 4. Financial and Capital Strategy December 4,2024 2
Slide 3: 1. Today's Point
1. Today’s Point Net sales and operating income have grown 5.5 times over the 15 years since 2009 Aiming to achieve the targets for FY3/29 (net sales of 2.5 trillion yen, operating income of 250 billion Overall yen, operating margin of 10%, ROE of 15% or more, EPS growth rate of 15% or more), th
Slide 4: Sales and Operating Income by Business
Sales and Operating Income by Business Targeting ¥1.56 trillion in net sales and ¥103 billion in OP for the current fiscal year leveraging diverse business portfolio (Billions of yen) FY3/24 FY3/25 YoY Main products Actual Forecast Net sales 1,402.1 1,560.0 +11.3% Total Operating income 73.5 103.0 +
Slide 5: Long-term Trend of Sales / OP / Operating margin
Long-term Trend of Sales / OP / Operating margin Our focus is shifting from the scale of the business to profitable growth Toward 2.5 trillion yen in sales, 250 billion yen in OP, and 10% in operating margin 2,500 Organic growth ＋¥500 billion Operating margin 250 M&A ＋¥300 billion Real operating mar
Slide 6: EPS Growth Rate and ROE
EPS Growth Rate and ROE EPS: FY3/09-FY3/24 actual CAGR15.1％, aim for CAGR15％ or more toward FY3/29 ROE: FY3/09-FY3/24 average actual 11.3％, aim for 15% or more toward FY3/29 （yen） 178.23 MinebeaMitsumi EPS MinebeaMitsumi EPS (Moving average of past 10 years*) 170.08 MinebeaMitsumi ROE TSE PRIME Mark
Slide 7: Agenda
Agenda 1. Today’s Point 2. Growth Strategies toward 10% or more Operating Margin 3. Towards Sustainable Growth 4. Financial and Capital Strategy December 4,2024 7
Slide 8: Growth Strategies toward 10% or more Operating Margin
2.Growth Strategies toward 10% or more Operating Margin 1) Organic growth 4) The development of high- As global GDP grows, disposable income per person value-added products in the market rises. Sales of high-end functional products will increase through INTEGRATION the necessity for high-end com
Slide 9: Organic Growth - Business Portfolio Strategy
2-1) Organic Growth- Business Portfolio Strategy Strengthening core business via super precision machining 1 & high quality Maximizing sub-core as cash cow business, 2 continue as long as it is economically rational Cash generated from sub-core be utilized toward growth of 3 core business Core Sub-c
Slide 10: Organic Growth - Business Portfolio Strategy: Spears
2-1) Organic Growth – Business Portfolio Strategy Defined a business with over 20 billion yen in OP as a “spear”, and confirmed 4 “spears”. With just the confirmed spears, we expect to see over 140 billion yen in OP in the near future! 1 Bearings Operating income 60 billion yen or more 2 Analog semi
Slide 11: Organic Growth: Precision Technologies
2-1) Organic Growth: Precision Technologies Demand for ultra-precision, high-quality products continues to grow. Monthly external sales of bearings exceed 300 million units, and operating margins continue to improve toward a new record high Net Sales Operating Income Operating Income Ball Bearings R
Slide 12: Growth Potential in the Data Center Market
2-1) Organic Growth: Growth Potential in the Data Center Market Even if there is a change in the cooling system of the server, the fan motors continue to be used ➡ New opportunities for using fan motors and bearings are also emerging (e.g. increasing the number of bearings to reduce noise at low s
Slide 13: Organic Growth: Motor, Lighting & Sensing
2-1) Organic Growth: Motor, Lighting & Sensing With the recovery of the HDD market and improvements in product mix, as well as an increase in global niche top products, mainly for the automotive industry, we expect 27 billion yen in OP for FY3/25 and aim to achieve 10% operating margin for FY3/27 fo
Slide 14: Contents Growth for Automotive market
2-1) Organic Growth: Contents Growth for Automotive market Demand for electrification and higher functionality (comfortable, environment, safety) is increasing, and the content growth of bearings and motors continues to outpace the growth of the automotive market Global automotive production volume
Slide 15: Organic Growth: Semiconductors & Electronics
2-1) Organic Growth: Semiconductors & Electronics Accelerate the growth of core businesses centered on analog semiconductors Continue to strengthen the profitability of sub-core businesses Net Sales Operating Income Assumed Operating Margin Net Sales Operating Income 10% or more Drivers for improvin
Slide 16: Organic Growth: Analog Semiconductor
2-1) Organic Growth: Analog Semiconductor Accelerated growth in both analog and power semiconductor markets from 2025 onward Aiming to be a “Global Niche Top” company, and targeting an operating margin of 30% for FY3/29! Global market forecast Medium-term targets for analog semiconductor Div. Analog
Slide 17: Organic Growth: Access Solutions
2-1) Organic Growth: Access Solutions Capturing great opportunity of automotive electrification Net Sales Operating Income Net Sales Operating Income Drivers for improving operating margin Operating Margin Assumed Operating Margin (Billions of Yen) 9.9% 3.3% 5.2% Short Term 5-7% Long Term 10% or mor
Slide 18: Access Solutions: Results of INTEGRATION
2-1) Organic Growth: Access Solutions The results of INTEGRATION leading to further growth have come to fruition Growth faster than the market through the launch of high value-added products resulting from INTEGRATION Wing Handle Global automotive production and growth potential of our Access produc
Slide 19: M&A Strategy
2-2) M&A Strategy M&A targets high margins while maintaining 1 M&As that can strengthenprinciples our existing businesses and/or provide INTEGRATION 2 Only agree to an appropriate price (never acquiring at a high price) 16 years of Of which Results/forecast 28M&As integrated 26M&As 16 years（10/3 -25
Slide 20: M&A Strategy Future Directions
2-2) M&A strategy Future Directions Focus on M&A to strengthen earnings base by toughening the eight spears 1 Bearings Strengthening established spears 2 Analog semiconductors Machined components : Aircraft business etc. Analog Semiconductors : Strengthening the medical field, 3 Motors entering
Slide 21: Products and Parts that Solve Social Issues: 4 Highs
2-3) Development of Products and Supply of Parts that Solve Social Issues Meet “4 Highs: High voltage, High current, High frequency, and High speed” needed in the world Eight spears of our existing core businesses are essential to these demands December 4,2024 21
Slide 22: M&A & '4 Highs' Case - Analog Semiconductors
M&A & “4 Highs” Case – Analog Semiconductors Acquired high-current, high-voltage power semiconductor business, accelerating INTEGRATION with global niche top 8 focused drivers Target KSF/Characteristics Focused products Semiconductor division sales plan image Power Semiconductor （Assumed figures aft
Slide 23: Development of High-Value-Added Products through INTEGRATION
2-4) The development of high-value-added products through INTEGRATION No competitor can combine a variety of technologies to create new products! Access solutions product Motor driver IC High value-added products through INTEGRATION One-stop solution for motor-related products using will be launched
Slide 24: Automation Project
2-5) Automation Project Achieve efficient growth investment and maximize cost-effectiveness through automation and productivity improvement efforts Expect to achieve labor savings for approximately 5,000 people in FY3/25 Case Studies of Automation Projects Key Points Pick & Place and image processin
Slide 25: Agenda
Agenda 1. Today’s Point 2. Growth Strategies toward 10% or more Operating Margin 3. Towards Sustainable Growth 4. Financial and Capital Strategy December 4,2024 25
Slide 26: Initiatives to strengthen human capital
3. Towards Sustainable Growth：Initiatives to strengthen human capital Fostering the “passion” of 100,000 people for further growth and promoting INTEGRATION with core businesses and technologies People” will support growth towards the long-term goal of FY3/29 and MinebeaMitsumi's 100th anniversary,
Slide 27: Accelerating Carbon Neutrality
3. Towards Sustainable Growth： Accelerating Carbon Neutrality To commit to our social responsibility to promote renewable energy, MinebeaMitsumi added power generation business to its Articles of Incorporation at the annual general shareholders meeting in June, 2024 1 Cambodia: Solar power generatio
Slide 28: Agenda
Agenda 1. Today’s Point 2. Growth Strategies toward 10% or more Operating Margin 3. Towards Sustainable Growth 4. Financial and Capital Strategy December 4,2024 28
Slide 29: Cash Allocation and Financial Discipline
4. Financial and Capital Strategy: Cash Allocation and Financial Discipline Generated cash will be used for growth investment (including M&As) as the highest priority and to strengthen the financial structure and for shareholder returns within 0.2 times Net D/E ratio to maintain financial discipline
Slide 30: Shareholders Return
4. Financial and Capital Strategy: Shareholders Return Dividends Dividends will be maintained at the previous year's level （Reference）Dividends for FY3/24 Dividends for FY3/25 Annual 40 yen/share（20 yen for interim, 20 yen for year-end) Interim dividend 20 yen/share Year-end dividend (Plan) TBD Rega
Slide 31: 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 32: Products with the world's No.1 market share account for 50% of sales
Reference：Achieved No. 1 global market shares through the global niche top strategy Products with the world's No.1 market share account for 50% of our sales （FY3/24） December 4, 2024 32
Slide 33: Risk management through diverse production, sales, and human resource
Reference：Risk management through diverse production, sales, and human resource Achieving sustainable growth by Risk management through diverse production, sales, and human resources Application Global footprint 28 130 101 countries Production・ R&D Sales Locations Locations As of July 31, 2024 Sales
Slide 34: Three strengths generate out-of-the-ordinary differences
Reference：Three strengths 3 strengths generate out-of-the-ordinary “differences” Strength 1 Strength 2 Strength 3 Reinforcing Core Diversified Generating Businesses Niches Synergies through the INTEGRATION Overwhelming market share with Diversified management centered INTEGRATION of Minebea business