Slide 1: Business Results, Fiscal Year Ended March 31, 2013
Business Results Fiscal Year Ended March 31, 2013 May 9, 2013 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy May 9, 2013 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer May 9, 2013 2
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Net sales and operating income rise during a fiscal year free of any natural disasters, etc. while net income drops due to restructuring losses. Results fall short of revised forecast. FY ended FY ended FY ended Mar.'13 Change (Millions of yen) Mar. '12 Mar.
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q 4Q operating income turned negative due to significant and precipitous production adjustments in major products. Large extraordinary restructuring losses to strengthen future profitability FY ended FY ended Change (Millions of yen) Mar. '12 Mar. '13 4Q
Slide 6: Net Sales Yearly
Net Sales Yearly (Billions of yen) 400.0 334.4 320.0 300.0 269.1 282.4 256.2 251.4 228.4 200.0 100.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14E May 9, 2013 5
Slide 7: Operating Income Yearly
Operating Income Yearly (Billions of yen) 35.0 15% 30.8 30.0 25.0 22.2 9.2% 10% 20.0 8.2% 16.0 15.0 13.4 12.1 5.0% 10.2 10.0 5% 5.2% 5.3% 8.6 5.0 3.4% 3.6% 0.0 0% Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14E Operating income Operating margin May 9, 2013 6
Slide 8: Machined Components Business Yearly
Machined Components Business Yearly Net sales Operating income Pivot assemblies Operating Income (Billions of yen) (Billions of yen) Operating Margin Rod-ends/Fasteners 30.0 30% Ball bearings 28.1 113.6 107.8 107.0 25.6 25.5 26.0% 25.0 99.3 100.0 29.7 26.6 26.7 23.9% 25% 20.6 26.3 20.0 22.4% 19.5 22
Slide 9: Rotary Components Business Yearly
Rotary Components Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) Operating Income 5.0 6% Operating Margin 4% 101.1 101.9 100.0 91.4 2% 74.2 (0.2) 0.0 0% -0.2% 50.0 -2.5% -2% (1.8) -4.5% -4.3% -4% (4.1) (4.4) 0.0 (5.0) -6% Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'10 Mar.'1
Slide 10: Electronic Devices & Components Business Yearly
Electronic Devices & Components Business Yearly Net sales Operating income (Billions of yen) Electronic devices (Billions of yen) Measuring components Operating Income 6.0 18% Operating Margin 60.0 57.2 5.4 9.3 15.0% 4.2 4.0 12% 40.5 40.0 37.9 10.3% 35.8 9.1 6.6 2.0 6% 10.6 1.5 2.7% 47.9 20.0 31.4 3
Slide 11: Other Business Yearly
Other Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) 30.0 Special devices & Other Speakers Operating Income Keyboards Operating Margin 6% 19.7 1.0 4% 20.0 19.2 2.5% 2.4% 15.1 2% 10.0 0.5 10.5 0.2 5.7 9.7 0% 10.0 0.0 3.3 2.4 3.2 (0.3) 3.6 -2% 6.4 7.3 -2.2% 5.2 6.2 (0.7
Slide 12: Net Income Yearly
Net Income Yearly (Billions of yen) (yen) 16.3 60 16.0 50 12.5 40.9 12.0 40 32.6 8.5 30 8.0 6.7 5.9 20 22.8 4.0 2.4 17.2 15.6 1.8 10 6.2 4.8 0.0 0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14E Net income Net income per share (right axis) *Net income for the FY ended Mar.'13 was affected b
Slide 13: S.G. & A. Expenses Yearly
S.G. & A. Expenses Yearly (Billions of yen) 30% 50.0 50.0 47.1 48.0 45.6 44.8 44.3 25% 41.1 40.0 17.8% 18.0% 17.6% 20% 16.7% 16.7% 14.9% 15.0% 30.0 15% 20.0 10% 10.0 5% 0.0 0% Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14E S.G. & A. expenses S.G. & A. to sales ratio May 9, 2013 12
Slide 14: Inventories Yearly
Inventories Yearly (Billions of yen) 80.0 60.0 58.2 49.0 42.4 44.0 38.7 40.0 35.9 20.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 May 9, 2013 13
Slide 15: Capital Expenditure & Depreciation Yearly
Capital Expenditure & Depreciation Yearly (Billions of yen) 50.0 Capital Expenditure Depreciation & Amortization Expenses 43.7 40.0 30.0 27.3 27.3 26.4 24.9 24.0 20.2 21.1 20.8 19.6 20.8 20.9 21.7 20.0 11.1 10.0 0.0 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14E *From FY 3/09, due to chang
Slide 16: Net Interest-Bearing Debt Yearly
Net Interest-Bearing Debt Yearly (Billions of yen) (Billions of yen) Net interest-bearing debt 160.0 40.0 Free cash flow (right axis) 136.2 132.3 30.0 120.0 109.6 114.2 110.0 96.9 103.6 20.0 23.4 17.7 80.0 12.5 6.2 10.0 (4.2) 0.0 40.0 (8.8) (14.8) (10.0) 0.0 (20.0) Mar.'08 Mar.'09 Mar.'10 Mar.'11 Ma
Slide 17: Forecast for Fiscal Year Ending March 31, 2014
Forecast for Fiscal Year Ending March 31, 2014 Restructuring of motor business as well as higher sales of LED backlights, ball bearings, aircraft parts and hybrid components to push profits up FY ended Fiscal Year ending Mar. '14 Mar. '13 (Millions of yen) Change Full year 1st Half 2nd Half Full yea
Slide 18: New Business Segments
New Business Segments Structural reorganization leads to new business segment classification Old business segments New business segments (for FY ended Mar. 2013) (for FY ending Mar. 2014) Machined components Machined components unchanged Ball bearings Ball bearings Rod-ends/Fasteners Rod-ends/Fasten
Slide 19: Policy and Strategy
Policy and Strategy May 9, 2013 Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 18
Slide 20: Drastic Changes in the Market
Drastic Changes in the Market Political and economic changes Global economy is leveling off Sharp drop in sales of Japanese products Prolonged European financial crisis in China and slowdown in the growth of Yen significantly weakening against the emerging markets like China dollar (driving sales up
Slide 21: Impact of Drastic Changes in the Market
Impact of Drastic Changes in the Market % of target met in 2nd half of FY 3/2013 Impact on % of target aimed in 2nd half of FY 3/2014 operating income Slowdown in the HDD Bearings 92% 102% market (Sales volume) = - 4.1 billion yen Big fluctuations in the markets for smartphone Pivot and tablet PC pa
Slide 22: Revising Strategies 1
Revising Strategies 1 How are we going to deal with the drastic changes in the market? Does this business have a big technological leg up over Korean, Taiwanese and Chinese competitors? Expand Does this business create synergy within Minebea? Reform Does the market have growth Close potential? May 9
Slide 23: Revising Strategies 2: Sales target by application
Revising Strategies 2 Sales target by application machined components, LED backlights, Focus area hybrid components Trends in market portfolio Expand: home appliances, automobile, aircraft, medical, environment, etc. Shrink: compact digital still cameras, PCs, HDDs, OA equipments Sales by Applicatio
Slide 24: Business Portfolio: Shifting Gears
Business Portfolio: Shifting Gears Businesses where we Expand Machined components are shifting gears (Intensive LED backlights (Growing markets) Hybrid components investment) Businesses that need to Joint venture with Panasonic be tailored to suit Reform Micro actuators changing market structure HDD
Slide 25: Boosting Profitability
Boosting Profitability Increase profits in the machined components business Increase ball bearing sales and expand new applications Expand aircraft parts sales Aggressively implement A&A (alliance and acquisition) strategy Increase hybrid component sales Shift Tokyo R&D Center (directly under the pr
Slide 26: Sales Expansion for Ball Bearing Business
Sales Expansion for Ball Bearing Business Internal sales to remain Monthly Average Ball Bearing Sales Volumes (External + Internal Sales) steady (millions of units/month) Slowdown in global Internal sales for pivot assembly economy 250 Shrink in the HDD application to remain steady for Thai floods m
Slide 27: Boost Profitability of Rod-end Fastener Business
Boost Profitability of Rod-end Fastener Business Global aircraft production Shipment Volume for Boeing and Airbus to soar over the medium Commercial Aircraft term (billions of yen) (units) 30.0 1,600 Booming LCC industry is Rod-end fastener sales fueling bigger orders for Total Boeing/Airbus 1,400 a
Slide 28: Secure Profit for Pivot Assembly Business
Secure Profit for Pivot Assembly Business HDD Shipment Volume (Calendar Year) (millions of units) The HDD market to remain at 800 2012 level Expected to remain flat Will work to generate profits in a sluggish but stable market 600 Maintain high market share 400 ・Established competitive advantage in
Slide 29: Increase Sales and Profits in LED Backlight Business
Increase Sales and Profits in LED Backlight Business LED Backlight Sales Failed to reach FY ended 3/2013 target despite jump in sales and profits (billions of yen) 70.0 Will boost profitability by working to: 1. Expand customer base with an eye to balanced production 60.0 2. Increase outsourcing Unr
Slide 30: Hybrid Component Sales to Increase
Hybrid Component Sales to Increase Sales to reach ¥25 billion this year Tokyo R&D Center now and ¥45 billion in FY ending 3/2016 in operation (billions of yen) Hybrid Component Sales 50.0 40.0 30.0 20.0 Focus on medical and automobile applications 10.0 0 FY 3 FY 3 FY 3 FY 3 FY 3 FY 3 FY 3 /2010 /201
Slide 31: Tap into New Markets 1
Tap into New Markets 1 Bearings for turbochargers Pluses: energy-saving, high heat-resistance ・ Developed and to produce highly heat- resistant ball bearing units for turbochargers ・Aiming 5 billion yen sales in FY 3/2016 with related bearing products Resolvers (rotation angle sensors) for automobil
Slide 32: Tap into New Markets 2
Tap into New Markets 2 Ultra-thin light guide plates (LED backlights) Pluses: ultra-thin, large size, high efficiency Developed backlights for large display smartphones to meet market needs Conventional Large display (5-inch) Bigger Light guide plate thickness less than 0.3 mm May 9, 2013 31
Slide 33: Business Portfolio: Shifting Gears
Business Portfolio: Shifting Gears Businesses where we are shifting gears Expand Machined components (Intensive LED backlights (Growing markets) investment) Hybrid components Businesses that need to Joint venture with Panasonic be tailored to suit Reform Micro actuators changing market structure HDD
Slide 34: Promote Structural Reform (Including Closure)
Promote Structural Reform (Including Closure) Structural reform was completed in FY ended 3/2013 Structural reform cost Impacts on operating income Effect of structural reform over the next 3 years 3.0 +5.9 billion yen (billions of yen) +2.2 +2.1 +1.6 FY 3/2013 0 FY 3/2014 FY 3/2015 FY 3/2016 Foreca
Slide 35: Structural Reform and Enhanced Profitability for Rotary Components Business 1
Structural Reform and Enhanced Profitability for Rotary Components Business 1 Making MMMC our wholly-owned subsidiary, merger and reorganization To operate motor business under one roof Absorption-type merger Cut indirect costs via streamlining and reorganization Boost sales of high-value added prod
Slide 36: Structural Reform and Enhanced Profitability for Rotary Components Business 2
Structural Reform and Enhanced Profitability for Rotary Components Business 2 Shift from No. 1 strategy to one-and-only strategy Structural reform Focus on hybrid component sales Completion of production transfer to Cambodia Focus on sales of motors with technological advantage May 9, 2013 35
Slide 37: Business Portfolio: Shifting Gears
Business Portfolio: Shifting Gears Businesses where we are shifting gears Expand Machined components (Intensive LED backlights (Growing markets) investment) Hybrid components Businesses that need to Joint venture with Panasonic be tailored to suit Reform Micro actuators changing market structure HDD
Slide 38: New Organization Chart
New Organization Chart Board of Auditors Board of Directors Personnel & General Affairs Div. Corporate Finance & Compliance Promotion Div. Senior Executive Officer President, CEO Council Administration, Planning & Accounting Div. Executive Vice President Procurement & Logistics Div. Tokyo Research &
Slide 39: Organizational Reform: Aims
Organizational Reform: Aims Increase efficiency and speed of operations Maximize synergy between sales and R&D via the new Electronic Device & Component Manufacturing HQ Major organizational changes Minebea absorbed Minebea Motor Manufacturing Corp., turning its 4 motor BUs into the Information Moto
Slide 40: Improve Balance Sheet
Improve Balance Sheet Improved foreign currency translation adjustments brought net D/E ratio up to 1.0 Will improve cash flow 150 90 50 (billions 136.2 132.3 (billions (billions 43.7 Capital expenditure of yen) of yen) of yen) 121.0 60 Depreciation expense 114.2 40 103.6 103.3 100 20.0 30 13.6 30 2
Slide 41: M&A and Alliance Strategies
M&A and Alliance Strategies Given the backdrop of the falling yen, think twice about large M&A deals Give priority to boosting machined components via medium and small M&As Strengthen various alliances in machined components business Leverage M&As and alliances in other business areas to strengthen
Slide 42: Takeover of APB's Business Assets by myonic
Takeover of APB's Business Assets by myonic APB is an Austrian manufacturer of special precision bearings. Purchase APB's business assets related to manufacturing special precision bearings for industrial machinery and machine tools and produce these products at myonic's factory in Germany (myonic i
Slide 43: Capital & business alliance with KJP
Capital & business alliance with KJP Alliance with a strong Korean LED backlight maker KJ Pretech has a factory in southern China, which is suitable to complement Minebea’s Thai and Suzhou factories Aim to reduce risk of sharp fluctuations in production due to customer demand Minebea will acquire eq
Slide 44: New Special Devices Plant
New Special Devices Plant Move the Special Device Business Unit from the Omori Plant to the Matsuida Plant by the end of this fiscal year to expand operations New Matsuida Special Devices Plant Area currently (Artist's rendering) under construction Existing plant Special devices plant May 9, 2013 43
Slide 45: Dividend Policy
Dividend Policy Dividend policy FY ended 3/2013 year-end yen/ Total yen 4 dividend: share; year: 7 /share Dividend forecast for FY ending 3/2014: Interim: 3 yen/share Year-end: 4 yen/share Our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholde
Slide 46: Revision to Medium-term Business Plan Targets
Revision to Medium-term Business Plan Targets Revised Medium-Term Business Plan Targets ■ Machined (Net sales) (in billions of yen) (Operating income) components business: 500 7.0% 50 Steady profit growth (Operating margin) 5.7% 5.0% ・ Focus on expanding ball bearing 400 40 sales 3.6% 370.0 ・ Expand
Slide 47: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ 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