Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — FY2022 Earnings Presentation
46 slides from Minebeamitsumi's earnings presentation, May 11, 2022
Slide 1: Business Results, Fiscal Year Ended March 31, 2022
Business Results Fiscal Year Ended March 31, 2022 MinebeaMitsumi Inc. May 11, 2022
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Management Policy & Business Strategy May 11, 2022 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, Senior Managing Executive Officer May 11, 2022 3
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales, OP, etc. all hit record highs FY3/22 Forecast FY3/21 FY3/22 Change (Millions of yen) (February 2022 Forecast) Full Year Full Year YoY Full Year VS. Forecast Net sales 988,424 1,124,140 +13.7% 1,100,000 102.2% Operating income 51,166 92,136 +80.1% 9
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q Net sales, OP, etc. all hit 4Q record highs FY3/21 FY3/22 Change (Millions of yen) 4Q 3Q 4Q YoY QoQ Net sales 250,985 304,348 289,532 +15.4% -4.9% Operating income 10,692 25,832 21,671 x2.0 -16.1% Profit before taxes 9,928 25,122 21,347 x2.2 -15.0% Pro
Slide 6: Net Sales, Operating Income/ Margin
Net Sales, Operating Income/ Margin (Billions of yen) Net sales Operating income 1,200.0 Operating margin 1,124.1 978.4 988.4 884.7 102.0 92.1 72.0 58.6 51.2 8.1% 8.2% 8.5% 6.0% 5.2% FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast May 11, 2022 6
Slide 7: Net Sales, Operating Income/ Margin
Net Sales, Operating Income/ Margin (Billions of yen) Net sales Operating income Operating margin 304.3 289.5 279.5 275.7 282.0 267.7 274.3 251.0 248.3 226.9 204.4 187.5 25.8 25.0 23.3 21.7 19.6 19.6 19.6 17.5 12.4 10.7 8.7% 8.9% 8.5% 7.9% 7.5% 7.0% 7.1% 3.3 3.4 6.4% 5.5% 4.3% 1.6% 1.8% 1Q 2Q 3Q 4Q
Slide 8: 4Q Actual: Differences from the Forecast as of February
4Q Actual: Differences from the Forecast as of February (Billions of yen) 289.5 265.4 Net Sales 21.5 21.7 Operating Income May 11, 2022 8
Slide 9: 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 26.8% 25.4% 25.8% 22.0% 19.8% 188.3 190.0 180.9 177.5 51.0 21.0 29.5 47.8 24.5 22.5 157.4 45.7 29.0 20.5 27.0 39.9 37.6 39.3 27.8 31.
Slide 10: 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% 23.2% 22.6% 21.2% 21.1% 20.9% 20.1% 20.0% 18.2% Special Special factor factor approx. approx. -¥0.4bn -¥0.4bn
Slide 11: 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% 5.8% 4.4% 4.6% 4.8% 387.3 395.0 379.4 4.0 4.2 363.8 371.0 4.3 37.0 36.4 4.2 32.5 4.6 32.6 35.4 54.0 23.0 64.2 21.6 158
Slide 12: 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 7.9% 8.7% 6.6% 5.6% 4.7% 6.0% 6.5% 4.1% 4.1% 3.0% 2.7% 111.5 -0.7% 0% 1.1 101.3 8.6 98.6 1.0 94.9 96.2 8.2 1.1 93.7 89.0 8.
Slide 13: MITSUMI Business
MITSUMI Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.8% 9.5% 6.6％ 7.2% 6.4% 5.5% 455.0 429.1 Excluding following one time cost 361.0 ABLIC PPA -¥2.1bn 43.0 Optical Device -¥1.9bn 41.8 Total -¥4.0bn 308.4 292.2 Extraordinary expenses/loss
Slide 14: MITSUMI Business
MITSUMI Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.2% 10.2% 11.3% 9.5% 134.2 8.7% 7.1% 6.7% 6.8% 6.6% 3.6% 114.3 0.0% 0% 111.0 -1.0% 110.7 107.2 15.2 100.9 79.2 79.4 11.3 76.8 9.9 10.2 62.4 56.6 7.3 7.6 7.1 49.7 5.1 4.2 2.9 0.0 (0.6) 1
Slide 15: 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 15
Slide 16: U-Shin Business
U-Shin Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 5.4% 4.5% 4.5% 2.2% 2.4% 2.9% 0% -0.1% -0.9% -0.2% -0.9% 39.9 36.9 1.7 36.1 1.4 -7.9% 1.2 1.2 32.0 32.3 32.7 30.7 31.5 30.9 30.7 0.8 0.7 -13.9% 26.6 (0.3) (0.1) (0.0) (0.3) 15.6 (2.2) (2.
Slide 17: 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) 76.0 68.9 60.1 187.1 170.1 143.9 46.0 38.8 111.1 95.0 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast May 11, 2022 17
Slide 18: 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 19.2 18.4 16.1 15.5 14.1 14.7 13.2 50.4 46.4 45.4 10.4 38.2 39.5 36.1 34.1 32.3 7.2 25.4 2.2 2.2 17.6 5.2 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 19: Inventory
Inventory (Billions of yen) 224.6 219.3 214.1 204.4 186.5 195.5 181.4 175.9 174.4 169.8 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 May 11, 2022 19
Slide 20: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 86.9 84.4 75.2 60.0 46.5 42.9 28.8 23.2 21.7 14.8 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast *Net interest-bearing debts :“Bonds and borrowings” – (“Cash and cash equivalents”＋Time deposit more t
Slide 21: Forecast for Fiscal Year Ending March 31, 2023
Forecast for Fiscal Year Ending March 31, 2023 Full-year forecasts for net sales, OP, etc. all to hit record highs FY3/22 FY3/23 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,124,140 568,000 632,000 1,200,000 +6.7% Operating income 92,136 41,000 61,000 102,000 +10.7% Profit
Slide 22: 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 1,124,140 568,000 632,000 1,200,000 +6.7% Machined components 177,470 91,000 99,000 190,000 +7.1% Electronic devices and components 371,023 184,500 210,500 395,000 +6.5% MITSUMI business
Slide 23: Management Policy & Business Strategy
Management Policy & Business Strategy May 11, 2022 Yoshihisa Kainuma Representative Director, CEO & COO May 11, 2022 23
Slide 24: Summary of Fiscal Year ended 3/22
Summary of Fiscal Year ended 3/22 Net sales, operating income, and net profit all hit record highs. Our diversified business portfolio, centered on three spears +1, enhanced profits in spite of the headwinds from semiconductor Overall shortages, soaring raw material prices, and COVID-19. The m
Slide 25: Key Points of FY3/23 Plan
Key Points of FY3/23 Plan Set the guidance conservatively, considering current risks Engage in thorough efforts to pass on increased business costs (raw material and logistics costs) to customers in all businesses. Machined components: Complete increasing monthly ball bearing production capacity
Slide 26: Image of Growth Drivers and Uncertainty of this Fiscal Year
Image of Growth Drivers and Uncertainty of this Fiscal Year 5 billion yen stress added against bottom-up Image of comparison with FY3/22 Establish monthly production capacity of 345 million units and Bearings promote further capacity expansion. +¥3.5bn Take advantage of this opportunity to establish
Slide 27: Mid-term Business Plan
Mid-term Business Plan Movements to “with Corona” make M&A more active Net Sales Operating income Operating margin (Billions of yen) Add-on by M&A (image) 1,400 (NOT included) Special profits such as sale of 1,270 real estate, etc. 150 125 102 May 11, 2022 27
Slide 28: Machined Components Targets
Machined Components Targets Growth in ball bearing business Ball bearing sales Pivot assembly sales Operating income Rod-end/fastener sales Operating margin plus recovery in aerospace (Billions of yen) Key Points Ball bearing sales 1 Continued medium- to long-term growth led by automobile applicatio
Slide 29: Ball Bearing Business Update
Ball Bearing Business Update Continued growth from structural demand increases for ultra-high-quality products Quickly build a framework capable of producing 365 million units plus per month Keywords Miniature/small-sized ball bearing production capacity (million units/month) Automobiles 1 370 Actua
Slide 30: [Reference] Outlook of Aircraft Market
[Reference] Outlook of Aircraft Market Trend of commercial aircraft production rate (Source: MinebeaMitsumi) External environment - Recovery of passenger demand - Initiatives to reduce CO2 in airlines Assume recovery from Increasing demand for new production of energy-saving aircrafts latter part o
Slide 31: Electronic Devices and Comp. Targets
Electronic Devices and Comp. Targets Growth to accelerate with Motor sales Electronic device sales Sensing device sales Other sales Operating income Operating margin motors as profit driver (Billions of yen) Key Points Motors 1 Top-line growth in automotive motors to further increase profitability E
Slide 32: Motor Business Update
Motor Business Update Automobile applications accelerate growth in the future Keywords Motor Sales by Application Thorough price pass-on measures 1 Engage in thorough efforts to pass on increased business costs (raw material and logistics costs) to customers Other (High-end home electronics, medical
Slide 33: MITSUMI Business Targets
MITSUMI Business Targets Semiconductors and Sales Operating income Operating margin actuators to drive growth (Billions of yen) Key Points Optical devices 1 Increase in the adoption rate of our focus products and shift to next- generation technologies Analog semiconductors 2 Start-up of Shiga plant
Slide 34: Analog Semiconductor Business Update
Analog Semiconductor Business Update Target sales of 100 billion yen to be achieved ahead of schedule Analog semiconductor sales 102 Keywords (Billions of yen) 92 85 Maximize investment efficiency 77.5 1 Utilize subsidies, acquire engineers, utilize M&As, etc. 58.7 Target ¥30bn OP Achieved Aim to ac
Slide 35: Optical Device Business Update
Optical Device Business Update Consolidate the industry leader position through aggressive strategies Keywords Significantly boost market Image of optical devices sales presence 1 • Expand business opportunity through increase in the adoption rate of our focus products • Prepare for future developme
Slide 36: U-Shin Business Targets
U-Shin Business Targets Strengthen profitability from market Sales Operating income Operating margin recovery and shift to high value- added products (Billions of yen) Key Points Accelerate shift to high 1 value-added products 1. CSD 2. Flush handle 3. E-Latch Results of structural reforms 2 Aim for
Slide 37: Challenge to Carbon Neutrality
Challenge to Carbon Neutrality Reviewing measure to reduce GHG emission through procurement of decarbonized electricity Reduction of GHG emissions from electric power is considered essential since approximately 90%* of our GHG emissions are from electricity. 1. Establishment of renewable energy in-h
Slide 38: Expand "MMI Beyond Zero"
Expand “MMI Beyond Zero” Efforts to reduce global CO2 emissions In addition to our own efforts to reduce CO2 emissions, we are also reducing CO2 emissions of our customers who use our parts. Volume of avoided CO2 emissions kt-CO2 Increase 42% 1,929 (1) Reduction by products evaluated in 2020 1,759 (
Slide 39: To Issue Green Bonds
To Issue Green Bonds Management Strategy to Solidify the Foundation for the Company's 100th Anniversary (2051) TM 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 40: Dividends
Dividends Year-end 18 yen/share Annual 36 yen/share FY3/22 Increased 4 yen from the previous fiscal year’s result of 14 yen, excluding commemorative dividend of 8 yen We determine the annual dividend with a target FY3/23 consolidated payout ratio of around 20% in principle. Plan Also, we will mainta
Slide 41: 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 42: Reference
Reference May 11, 2022 42
Slide 43: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 32.8 31.9 30.1 30.4 29.0 26.7 27.3 27.0 27.5 26.6 26.1 25.2 13.1% 13.4% 11.9% 11.5% 12.1% 10.8% 11.3% 10.0% 10.0% 10.5% 9.8% 9.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 May 11, 2022 43
Slide 44: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses 140.0** 73.5** 54.2 50.1* 48.6 48.0 46.2 45.5 45.2 36.4 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 Forecast * Capital expenditures of FY3/20 do not include the increase of asset from lease contracts
Slide 45: 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
Slide 46: ESG Topics
ESG Topics Engagement between outside directors and institutional investors We held a dialog between outside directors and institutional investors. A summary of the Q&A is available on our website. MinebeaMitsumi Group ESG Initiatives We have posted the MinebeaMitsumi Group ESG Initiatives on our we