MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q3 FY2024 Earnings Presentation
35 slides from MinebeaMitsumi's earnings presentation, Feb 2, 2024
Slide 1: Consolidated financial results for Q3 FY ending March 2024
My name is Yoshida. Today I would first like to explain the consolidated financial results for the third quarter of the fiscal year ending March 31, 2024. 1
Slide 2: Consolidated net sales and operating income for the third quarter
Consolidated net sales for the third quarter of the fiscal year ending March 31, 2024, was up 2.6% year on year and up 0.4% quarter on quarter to total 381,207 million yen. Operating income down 5.8% year on year and up 13.7% quarter on quarter to total 24,027 million yen. Profit for the period attr
Slide 3: Quarterly trend in net sales, operating income and margin
This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the third quarter was 6.3%, down 0.6 percentage point year on year and up 0.7 percentage points quarter on quarter. 3
Slide 4: Forecast versus actual results by segment
Here shows the difference between the forecast as of November and actual results for net sales and operating income by business segment for the third quarter. Net sales of PT exceeded expectations due to solid growth in automobile and aircraft applications, although sales to data centers remained sl
Slide 5: Precision Technologies segment results
Now let’s take a look at the quarterly results by segment, starting with the Precision Technologies business segment. On the left is a graph indicating quarterly net sales trends and on the right is a graph with a bar chart quarterly operating income trends along with a line chart for operating marg
Slide 6: MLS segment results
Now let’s look at the MLS segment. Net sales decreased 0.8% quarter on quarter to total 91.9 billion yen. Looking at the results by product, we see that sales of motors increased 0.6% quarter on quarter to reach 69.5 billion yen. This is mainly due to solid sales, particularly of motors for automoti
Slide 7: SE segment results
Let’s look at the performance for the SE business segment. Net sales decreased by 6.8% quarter on quarter to total 146.5 billion yen. This was mainly due to higher sales from optical devices amid ramp up production of new products, while sales of mechanical components decreased. Operating income tot
Slide 8: AS segment results
Finally, let's look at the AS segment. Net sales increased 13.3% quarter on quarter to total 87.9 billion yen. This was mainly due to a recovery in production of automotive manufacturers. Our operating profit totaled 5.7 billion yen, and the operating margin was 6.5%. Operating income increased 4.9
Slide 9: Profit attributable to owners of parent and EPS
The bar graph here shows trends in profit attributable to owners of the parent while the line graph chart changes in the profit for the period per share. The profit for the period was 14.8 billion yen. Earnings per share was 36.5 yen. 9
Slide 10: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the third quarter, inventory totaled 300.5 billion yen, which is 2.3 billion yen less than what it was three months ago. 10
Slide 11: Net interest-bearing debt and free cash flow
This graph contains a bar chart showing trends in net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents, and a line chart indicating free cash flows. At the end of the third quarter, net interest-bearing debt, totaling 237.6 billion yen, was up 35.9 billion
Slide 12: Full-year forecast revised downward
The forecast for the full year ending 31 March 2024 has been revised downward 77 billion yen to 70 billion yen in operating income after a close examination of market assumptions and the status of the order. Overall net sales is unchanged with slight revisions between the business segments. Please r
Slide 13: Forecast by business segment
This slide shows the forecast by business segment. 13
Slide 14: Revised forecast versus November forecast
This chart shows the difference between the revised forecast and the forecast as of November. This is all for my presentation. 14
Slide 15: Key points from the president
Hello, I’m Yoshihisa Kainuma. I would like to explain today's key points. We explained that we target at least operating income of 77 billion yen for this fiscal year ending March 31, 2024 at the 2Q investor meeting held in November. After three months, unfortunately we had to make a revision. Beari
Slide 16: Competitive environment and price adjustments
What we would like to emphasize here is that there has been no change at all in the competitive environment. Rather, we are working to adjust the prices for motors and other products, and have completed recovering the business costs. I think it is certain that once the volumes return, they will cont
Slide 17: Aircraft business and RO-RA acquisition
Aircraft business has been steady and recovering to pre-COVID19 level. In particular, single- aisle aircraft production have almost recovered, and customers have begun to inform us that double-aisle aircraft production will also recover somewhat before next summer. We acquired a company called RO-RA
Slide 18: Outline of RO-RA
Here is a brief outline of RO-RA. 18
Slide 19: Semiconductors and Eight Spears strategy
I have explained that we will definitely promote semiconductors to the second spear of our Eight Spears strategy once the business integration with Hitachi Power Semiconductor Device is completed. There is a prediction that semiconductors will make a full-fledged comeback in the second half of the f
Slide 20: Access Solutions progress
We were able to achieve operating income of 5.7 billion yen in 3Q in AccessSolutions as expected. We believe that we were able to take your anxiety away. Currently, OEMs are experiencing production delays due to a variety of issues, including supply chain problems caused by the earthquake in Ishikaw
Slide 21: Production automation progress
We have received some suggestions regarding the progress of production automation, and we initiated by creating a robot floor in the Tokyo X Tech Garden. We are conducting various trials and studying how to incorporate them on the production line. First, we will work to reduce the process equivalent
Slide 22: 50 MW solar power project in Cambodia
We launch a large-scale solar power generation project of 50 MW in Cambodia. The government has given us approval which plans to generate 1.5 times the electricity we currently use in three plants located in an industrial park called PPSEZ in Cambodia. We are fortunate to have a partner and are buil
Slide 23: EPS growth rate
Regarding the growth rate of EPS to date, although there have been ups and downs, the CAGR is 15.8%, or EPS has increased 7.8 times if we assume 1 when I became president. We will continue to grow with EPS in mind. 23
Slide 24: Dividends and share buybacks
We intend to continue to pay a stable dividend with year-end dividend of 20 yen per share totaling annual 40 yen per share. In terms of shareholder return, we have conducted share buyback by a total of approximately 51 million shares over the past 15 years for a total amount of 76.7 billion yen. Of
Slide 25: Forward-looking statements disclaimer
February 2, 2024 MinebeaMitsumi Passion to Create Value through Difference 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
Slide 26: Reference
ary 2, 2024 Reference 26
Slide 27: Market recovery image from 2Q investor meeting
Here we repost the slide we presented at the 2Q investor meeting held on November, which indicates the image at the time of market recovery. Despite our launch pad of 77 billion yen in operating income has decreased to 70 billion, we believe our potential operating income is as shown on the slide. T
Slide 28: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) | Netsales Operating income -O- Operating margin 978.4 FY3/20 FY3/21 1,124.1 ‘Special factors 45 1,292.2 FY3/22 FY3/23 FY3/24 Forecast February 2, 2024 28 Minebealitsum! 28
Slide 29: Precision Technologies (PT)
Precision Technologies (PT Net sales (Billions of Yen) Operating income (Billions of yen) [= Bat 8 © Rod. = Pivot |= Operating income == Operating margin ] 210.0 po-- 197.3 ' 47.0 | wos ao Wo ' ass ! 157.4 ' ' ' ' i 4 1 ' ' ' ' ' 1 ! 1 ' i) ! 1 i) i) 1 ' ' ' 1 ' ' 1 ' | 485 | 1 ' 1 ! 109.1 nl ) 1 i)
Slide 30: Motor, Lighting & Sensing (MLS)
Motor, Lig Net sales (Billions of Yen) |= Motors “Electronic devices © Sensing devices © Other | ng ensing (MLS) Operating income (Billions of yen) [ == Operating income =O= Operating margin ] 5.8% 4.6% 4.8% 379.4 ef & = 176 17.6 q ; : : FY3/20 FY3/21 FY3/22 FY3/23 FY3/20 Fy3/21 FY3/22 February 2, 2
Slide 31: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Net sales (Billions of Yen) 530.1 429.1 361.0 | FY3/20 FY3?21 FY3/22 FY323 Operating income (Billions of yen) [ c= Operating income =O= Operating margin ] 9 Be 8.8% ° 6.4% 68% Onna 6.9% ° 7.9% ad 5.5% 41.8 34.0 Excl. Oe tvs cot [ie | ABLIC PPA 2 a 1 1 ‘otal 40 ! 1 T
Slide 32: Access Solutions operating income
an x ” c 2 ~~ = fe) ” ” rm) ® a) a) < e = a) 3 a 3 5 o z 11.5% Operating income (Billions of yen) @ we wwe w ewww we www ewe we wee weweeend 1.1% 7a | = Operating income =O Operating margin ] 2.1% poco FY3/23 FY3/24 Forecast FY3/22 Fy3/21 FY323 ugh Diterence MinebeaMitsumi Passion to Create Value th
Slide 33: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) [ ™ S.G.&A. expenses =C>=S.G.&A. to sales ratio | MinebeaMitsumi Passion to Create Value through 33
Slide 34: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) [ = Capital expenditure ™™ Depreciation & Amortization expenses } 147.0 73.0 . 63.8 ' 1 62.0 50.1 46.2 45.5 48.6 46.0 ' 1 1 I ! 1 ' { + + + i 1 FY3/20 FY3/22 FY3/23 FY3/24 FY3/24 1Q-3Q Forecast * Capital expenditures of FY3/20 do not include the in
Slide 35: ROIC by segment
ROIC for Access iness are pre-merger ROIC (Return On Invested Capital) rac Dae eS a ed MinebeaMitsumi NOPAT (operating income + extraordinary profitloss) x (1-tax rate) ROIC ~ Invested capital (Notes receivable/accounts receivable + inventories +non-current assets - notes payable/accounts payable) C