Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 2022 Earnings Presentation
38 slides from Minebeamitsumi's earnings presentation, Nov 5, 2021
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2022
Business Results Second Quarter of Fiscal Year Ending March 31, 2022 MinebeaMitsumi Inc. November 5, 2021
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Business Update & Management Strategy November 5, 2021 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, Senior Managing Executive Officer November 5, 2021 3
Slide 4: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Net sales, operating income and quarterly profit all hit 2Q record highs FY3/21 FY3/22 Change (Millions of yen) 2Q 1Q 2Q YoY QoQ Net sales 274,267 248,305 281,955 +2.8% +13.6% Operating income 17,513 19,628 25,005 +42.8% +27.4% Profit before taxes 16,9
Slide 5: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Net sales, operating income and profit all hit 1H record highs FY3/21 FY3/22 Change FY3/22 (Millions of yen) 1H 1H YoY August Forecast VS. Forecast Net sales 461,730 530,260 +14.8% 537,000 -1.3% Operating income 20,922 44,633 X2.1 45,000 -0.8% Profit b
Slide 6: Net Sales, Operating Income/margin
Net Sales, Operating Income/margin (Billions of yen) Net sales Operating income Operating margin 279.5 275.7 282.0 267.7 274.3 251.0 248.3 226.9 204.4 187.5 25.0 23.3 19.6 19.6 19.6 17.5 12.4 10.7 8.7% 8.9% 7.9% 7.0% 7.1% 6.4% 3.3 5.5% 3.4 4.3% 1.8% 1.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY
Slide 7: 2Q Actual: Differences from the Forecast as of August
2Q Actual: Differences from the Forecast as of August (Billions of yen) 288.7 +8.7 +0.1 282.0 -2.6 -7.0 -5.9 Net Sales 25.4 25.0 -0.2 -1.1 -0.4 -1.6 Operating Income November 5, 2021 7
Slide 8: 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% 24.8% 23.2% 22.6% 21.2% 21.1% 20.9% 20.1% 20.0% 46.1 45.1 45.2 44.5 18.2% 44.1 44.1 44.3 11.9 6.2 10.9 6.4 6.3 5.6 10.7 39.7 5.
Slide 9: 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% 3.0% 2.7% -0.7% 111.5 0% 1.1 101.3 8.6 1.0 98.6 1.1 94.9 93.7 8.2 89.0 8.7 90.7 1.1 90.4
Slide 10: Mitsumi Business
Mitsumi Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.2% 10.2% 8.7% 7.1% 6.7% 6.8% 6.6% 3.6% 0.0% 114.3 0% -1.0% 110.7 111.0 100.9 79.2 79.4 11.3 76.8 9.9 62.4 7.3 7.6 56.6 7.1 49.7 5.1 4.2 2.9 0.0 (0.6) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 11: 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% -0.9% 0% -0.1% -0.2% 36.9 1.7 1.4 -7.9% 32.0 1.2 32.7 30.7 31.5 30.9 30.7 32.3 0.8 0.7 -13.9% 26.6 (0.1) (0.0) (0.3) 15.6 (2.2) (2.5) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 12: 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 16.1 14.7 14.1 50.4 13.2 46.4 10.4 39.5 36.1 34.1 32.3 7.2 25.4 2.2 17.6 2.2 5.2 5.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3
Slide 13: Inventory
Inventory (Billions of yen) 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 November 5, 2021 13
Slide 14: Net interest-bearing debt / Free cash flow
Net interest-bearing debt / Free cash flow *JGAAP for FY3/18 Net interest-bearing debt * Free cash flow (Billions of yen) 90.2 84.4 75.2 60.0 52.5 46.5 42.9 37.2 47.2 23.2 21.7 9.6 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22 1H Forecast *Net interest-bearing debts :”Bonds and borrowings” – (“Cash and
Slide 15: Forecast for Fiscal Year Ending March 31, 2022
Forecast for Fiscal Year Ending March 31, 2022 Full-year forecast revised upward FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 530,260 519,740 1,050,000 +6.2% Operating income 51,166 44,633 45,367 90,000 +75.9% Profit before taxes 49,527 44,319 44,681 89
Slide 16: Forecast for Business Segment
Forecast for Business Segment FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY (Adjusted) Net sales 988,424 530,260 519,740 1,050,000 +6.2% Machined components 157,411 88,357 88,643 177,000 +12.4% Electronic devices and components 345,595 184,127 177,873 362,000 +4.7% Mitsum
Slide 17: Business Update & Management Strategy
Business Update & Management Strategy November 5, 2021 Yoshihisa Kainuma Representative Director, CEO & COO November 5, 2021 17
Slide 18: FY3/22 Forecast Highlights (Revised upward)
FY3/22 Forecast Highlights (Revised upward) Full-year operating income forecast is estimated at 90 billion yen Three spears (bearings / motors / analog semiconductors) + OIS keep driving overall performance up. Bearings aim to realize monthly production of 345 million units ASAP improving produc
Slide 19: Machined Components: Give priority to boosting production capacity
Machined Components (Prepare for giant leap) Give priority to boosting production capacity to maintain overwhelming competitive advantage 1 Ball bearings Miniature/Small-sized Ball Bearing 365 Production Capacity (millions of units/month) External sales will continue to grow year on year in 2H des
Slide 20: Electronic Devices and Components: Expand motors
Electronic Devices and Components (Expand motors) Motors bolstering the foundation for stable growth of the entire business Motors Examples of major motor products for EVs EV unique function Environment The results of cost cuts and product mix improvements have been realized. Profit of the motor
Slide 21: Mitsumi Business: Strengthen portfolio via INTEGRATION
Mitsumi Business (Aim at record high OP) Strengthen business portfolio and 100 accelerate synergy via “INTEGRATION” Analog semiconductor 1 Analog semiconductors sales 73 (billion yens) 73 58.7 Increase will Sales are expected to reach 73 billion yen this fiscal come from 61 year. Achieve 100 billi
Slide 22: U-Shin Business: Cost reduction and next-generation products
U-Shin Business (Wait for the recovery of auto production) Implement cost reduction measures while preparing to expand sales of next-generation products via “INTEGRATION” 1 Automotive Next growth drivers While we will still assume some impact from the Flush handles: When a person with a remote con
Slide 23: Estimate for next fiscal year (Aim ¥100bn OP)
Estimate for next fiscal year (Aim ¥100bn OP) Key businesses that will generate 100 billion yen in operating income next fiscal year Increase monthly production capacity Bearings by 20 million units Aircraft Operating income will recover to 70% components of pre-COVID-19 level Motors Launch new mass
Slide 24: Key businesses driving mid-to long-term growth
Key businesses driving mid-to long-term growth (Beyond 1,000) Compared with FY3/22 forecast Potential for profit increases (by FY3/24-FY3/25) Bearings +10 billion yen (Including aircraft components) Estimate of OP 130 （billion yen） Motors +8 billion yen Analog semiconductors +5 billion yen 115 100 O
Slide 25: QCDESS and Environmental Load Reduction Activities
QCDESS and Environmental Load Reduction Activities Contribute to the reduction of global CO2 emission volume by two pillars TM Q C D E S S uality ost elivery co /efficiency ervice peed (1) Challenge to carbon neutrality (2) Expand “MMI Beyond Zero” Enhance reduction of our CO2 emissions Support redu
Slide 26: Our target for CO2 reduction
(1) Toward carbon neutrality (1,000 ton) (billion yen) 3,000 2,500 Our target for CO2 reduction BAU* 2,500 ~ Efforts to achieve net-zero ~ 2,000 2,000 1,500 1,500 Net sales FY3/31 target (compared with FY3/21) 1,000 0.85 million -30% 1,000 tons CO2 emissions reduction 0.6 million tons 500 500 CO2 em
Slide 27: Toward Realizing "MMI Beyond Zero"
(2) Toward Realizing “MMI Beyond Zero” We will increase the volume of avoided CO2 emissions by products by enhancing the energy saving efficiency of our products and by being used by many customers! Integrated Report November 5, 2021 27 2021
Slide 28: Effort for "MMI Beyond Zero"
(2) Effort for “MMI Beyond Zero” Improving the precision of our ball bearing, we confirmed the improvement of energy-saving efficiency in customer’s product! If you compare 130,000 tons of CO2 to something familiar... Simply by using our precision-improved ball bearings in the air conditioner motor,
Slide 29: Dividends
Dividends Dividends for FY3/22 Interim Year-end Annual dividend dividend (Forecast) dividend (Forecast) 18 yen/share 18 yen/share 36 yen/share While calculating the dividend payout for the fiscal year ending March 2022 with an eye to a consolidated payout ratio of around 20%, we will continuously wo
Slide 30: 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 31: Reference
Reference November 5, 2021 31
Slide 32: Machined Components
Machined Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Other Operating income Operating margin 26.6% 25.4% 24.2% 22.0% 19.8% Excluding ¥0.7bn of 188.3 PPA impact in 4Q 180.9 47.8 47.0 176.4 177.0 7.1 29.5
Slide 33: Electronic Devices & Components
Electronic Devices & Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 451.5 3.8 35.7 387.3 379.4 4.2 363.8 4.3 362.0 36.4 32.5 4.6 4.0 32.6 33.0 6.9% 6.9% 4.4% 4.6% 4.8% 227.8
Slide 34: Mitsumi Business
Mitsumi Business *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 8.6% 8.9% 7.2% 6.6％ 371.0 6.4% 361.0 5.5% 308.4 292.2 Excluding following one time cost ABLIC PPA -¥2.1bn 250.6 Optical Device -¥1.9bn Extraordinary expenses/losses Tot
Slide 35: U-Shin Business
As a result of change of the fiscal year end, FY12/17 consists of 13 months. U-Shin Business Both net sales and operating income until 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) Op
Slide 36: S.G.&A. expense / ratio
S.G.&A. expense / ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 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% 9.8% 10.0% 9.5% 10.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 November 5, 2021 36
Slide 37: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense *JGAAP for FY3/18 (Billions of yen) Capital expenditure Depreciation & Amortization expenses 70.0 54.2 54.2 50.1* 48.6 46.2 45.5 45.0 36.4 33.9 31.6 21.8 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22 1H Forecast * Capital expenditures of FY3/20 do not include the increa
Slide 38: 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