Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Nomura Investment Forum 2023
35 slides from Minebeamitsumi's conference presentation, Nov 30, 2023
Slide 1: Business Overview and Management Strategy
Nomura Investment Forum 2023 Business Overview and Management Strategy November 30, 2023 MinebeaMitsumi Inc. Director, President COO & CFO Katsuhiko Yoshida
Slide 2: Today's Presentation
Today’s Presentation 1. Company Profile Management Strategy ①Organic growth 2. ②M&A strategy ③Developing products and supplying components for resolving social issues 3. ESG 4. Financial and Capital Strategy 2
Slide 3: Today's Presentation
Today’s Presentation 1. Company Profile Management Strategy ①Organic growth 2. ②M&A strategy ③Developing products and supplying components for resolving social issues 3. ESG 4. Financial and Capital Strategy 3
Slide 4: 1. Company Profile
1. Company Profile Corporate Name MinebeaMitsumi Inc. Established July 16, 1951 Capital 68,258 million yen (As of March 31, 2023) Representative Yoshihisa Kainuma, Representative Director, Chairman CEO Outline of Machinery Components Business, Electronic Devices Business and Components Business Auto
Slide 5: Business Segments
Business Segments Targeting ¥1.4 trillion in net sales and ¥77 billion in OP for the current fiscal year leveraging diverse business portfolio (Billions of yen) FY3/23 FY3/24 YoY Main products Actual Forecast (Excl. special factors) Net sales 1,292.2 1,400.0 +8.3% Total Operating income 101.2 77.0 -
Slide 6: The World's No. 1 Share
The World’s No. 1 Share The world’s No.1 market share products account for 50% our net sales (Fiscal year ended March 2023) 6
Slide 7: Growth Trajectory – Our Targets for the Future
Growth Trajectory – Our Targets for the Future Toward ¥2.5 trillion in net sales and ¥250 billion in OP Organic ＋¥800 billion Machined components ＋ ¥ 200 billion growth Motors ＋ ¥ 200 billion 2.5 Other six spears ＋ ¥ 400 billion Trillion ＋¥350 billon Others + ¥ 100 billion yen M&A ～¥650 billion OUT
Slide 8: Today's Presentation
Today’s Presentation 1. Company Profile Management Strategy ①Organic growth 2. ②M&A strategy ③Developing products and supplying components for resolving social issues 3. ESG 4. Financial and Capital Strategy 8
Slide 9: Three key elements of our management strategy
2. Management Strategy Three key elements of our management strategy ①Organic growth • Market disposable income per capita will rise in line Organic growth ＋¥800 billion 2.5 Machined components ＋ ¥ 200 b illion with the growth in global GDP Motors ＋ ¥ 200 b i l l i on • The sale of high-end function
Slide 10: Eight Spears Strategy - Selection and Concentration with Synergy
Eight Spears Strategy - Selection and Concentration with Synergy - The world’s only “INTEGRATION” manufacturer of precision components with the core of Eight Spears 1 Bearings 2 Motors 3 Analog semiconductors Spears 4 Access Products 5 Sensors Definition of a “Spear” 1. Serve niche fields in massive
Slide 11: The Keyword is SOGO (=INTEGRATION)
The Keyword is “SOGO (=INTEGRATION*)” Pursue difference through SOGO of diverse technologies, products and markets SOGO of technologies SOGO of products SOGO of sales activities Ten Core Creating New Values Eight Spears Technologies Ultra-precision machining Access Analog Connectors/ Power supply Wi
Slide 12: 2-① Organic Growth: MinebeaMitsumi's Strengths
2-① Organic Growth: MinebeaMitsumi’s Strengths Sustainable growth with three strengths 12
Slide 13: 2-① Organic Growth: MinebeaMitsumi's Strengths
2-① Organic Growth: MinebeaMitsumi’s Strengths Factoring of three strengths Provide products that are vital for resolving social Differences issues in a wide range of fields Create new value and achieve sustainable growth 13
Slide 14: 2-① Organic Growth: Precision Technologies
2-① Organic Growth: Precision Technologies Our high performance and quality products match to resolve the social issues Net Sales Operating Income Operating Income Bearings 1 Ball Bearings Rod-ends/Fasteners Pivot assemblies Operating Margin (Billions of Yen) Assumed Operating Margin 25.8% 25% or mo
Slide 15: 2-① Organic Growth: Motor, Lighting & Sensing
2-① Organic Growth: Motor, Lighting & Sensing The growth drivers are automotive motors and actuators Net Sales Operating Income Operating Income Motors Electronic Devices Sensing Devices Other Operating Margin Growth drivers for Motor sales growth image Assumed Operating Margin automotive motor prod
Slide 16: 2-① Organic Growth: Semiconductors & Electronics
2-① Organic Growth: Semiconductors & Electronics Grow analog semiconductors business to position as the Second Spear following bearings Net Sales Operating Income Assumed Operating Margin Net Sales Operating Income 10% or more Analog semiconductors 1 Operating Margin (Real operating margin excluding
Slide 17: 2-① Organic Growth: Access Solutions
2-① Organic Growth: Access Solutions Attained capability to generate ¥2 billion OP monthly Further increase profitability through SOGO products Net Sales Operating Income Products expected as next growth drivers Net Sales Operating Income with SOGO and added value Operating Margin Assumed Operating
Slide 18: 2-② M&A Strategy: Firm Principles
2-② M&A Strategy: Firm Principles Carry out M&As in accordance with Key Principles 1 M&As that can strengthen our existing businesses and/or provide SOGO 2 Only agree to an appropriate price (never acquiring at a high price) Characteristics of the system for M&A sources of capital and Target promoti
Slide 19: 2-② M&A Strategy: Important Growth Drivers
2-② M&A Strategy: Important Growth Drivers M&A is a growth strategy that stabilizes the management base 14 years of results 25 M&As 14 years（’09 -’23） 25M&As 20 years’89 -’09） 18 years（’71 -’89） 10 M&As 21 M&As Sales since foundation 51 56 61 66 71 76 81 86 91 97 2 7 12 17 22 23 Forecast *Excluding
Slide 20: 2-③ Developing Products and Supplying Components for Resolving Social Issues
2-③ Developing Products and Supplying Components for Resolving 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 20
Slide 21: M&A Example①: Analog Semiconductor (1)
M&A Example①: Analog Semiconductor (1) Business acquisition of Hitachi Power Semiconductor Device Strengthen and expand the 'vertically integrated power semiconductor business' by combining the 'strengths' of the two companies Strengths Chip Manufacturing technology Analogue semiconductor business P
Slide 22: M&A Example①: Analog Semiconductor (2)
M&A Example①: Analog Semiconductor (2) Further expansion through synergies with the global niche top 8 focused drivers Target KSF/Characteristics Focused products Semiconductor division sales plan image （Assumed figures after acquisition of HPSD) Power Semiconductor Hitachi Power IGBT/SiC (Package
Slide 23: M&A Example②: Connectors
M&A Example②: Connectors Solidify the foundation as one of Eight Spears via integration of three companies （HONDA TSUSHIN KOGYO: September 16, 2022 & Minebea Connect (Formerly SUMIKO TEC): November 1, 2022) Achieving synergy in technology, production, and sales Aim for 50 billion yen in sales to glo
Slide 24: M&A Example③: Access Solutions (1)
M&A Example③: Access Solutions (1) Turnaround to be achieved Full-year Operating Income in excess of 10 billion yen in sight Transition of Access Solutions Business 2019 Integration of U-Shin (U-Shin has integrated Access Mechanisms business from Valeo S.A. in 2013) 2021 Transferred Automotive busin
Slide 25: M&A Example③: Access Solutions (2)
M&A Example③: Access Solutions (2) Strengthening the access products business via integration with Minebea AccessSolutions (formerly Honda Lock) Establish Tier1 position and expand customer base Strengthen synergies in the access products business Products • Mainly key locks, outer door handles and
Slide 26: Today's Presentation
Today’s Presentation 1. Company Profile Management Strategy ①Organic growth 2. ②M&A strategy ③Developing products and supplying components for resolving social issues 3. ESG 4. Financial and Capital Strategy 26
Slide 27: 3.ESG（E：Environment）
3.ESG（E：Environment） Promoting carbon neutral initiatives Cebu plant (large scale power consumption base) Installation of large scale solar power generation system and Power Purchase Agreement 1 Solar power generation system Invested in an in-house power generation facility with one of the largest
Slide 28: 3.ESG（S：Social）
3.ESG（S：Social） Further enhancement of management efficiency and increase synergistic effects Keywords 1 Secure talented human resources From new graduates to career hires, acquire and develop talented and diverse human resources 2 Stimulating internal and external exchanges Pursue collaborative cre
Slide 29: 3.ESG（G：Governance)
3.ESG（G：Governance) Evolution of management structure in April 2023 Division of roles for strategy and execution for next generation Corporate Philosophy Company Credo Management Strategy Yoshihisa Kainuma CEO＆COO CEO Execution Execution items Katsuhiko Yoshida CFO COO & CFO Execution Strategy A
Slide 30: Today's Presentation
Today’s Presentation 1. Company Profile Management Strategy ①Organic growth 2. ②M&A strategy ③Developing products and supplying components for resolving social issues 3. ESG 4. Financial and Capital Strategy 30
Slide 31: 4. Financial and Capital Strategy: 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 D/E ratio to maintain financial discipline Cas
Slide 32: 4. Financial and Capital Strategy: EPS Growth Rate and ROE
4. Financial and Capital Strategy: EPS Growth Rate and ROE EPS : FY3/2009-FY3/2023 actual CAGR15.8％, aim for CAGR15％ or more toward FY3/2029 ROE : FY3/2009-FY3/2023 average actual 11.6％, aim for 15% or more toward FY3/2029 187.16 （Yen） EPS EPS (Moving average of past 10 years* ) ROE *Values are aver
Slide 33: conditions or demand trends related to MinebeaMitsumi’s business operations; (ii) fluctuation of
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 34: Appendix: Ball Bearing Sales
Appendix Ball Bearing Sales External shipment (million units/quarter) 300 250 200 150 100 50 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 34
Slide 35: Appendix: Generate new business opportunity for CASE generation
Appendix Launch pad to Accelerate Natural Growth Securing Mid-term Business Plan Generate new business opportunity for CASE generation Connected Shared 5G antenna / Combo antenna Smart Key (UWB) WiFi/BT, GNSS, LTE module E-latch High speed transmission connector HMI etc. Flash handle e