Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q2 2025 Earnings Presentation
41 slides from Minebeamitsumi's earnings presentation, Nov 6, 2024
Slide 1: Business Results Second Quarter of Fiscal Year Ending March 31, 2025
Business Results Second Quarter of Fiscal Year Ending March 31, 2025 MinebeaMitsumi Inc. November 6, 2024
Slide 2: Today's Agenda
Today’s Agenda 1. Financial Results 2. Business Update & Management Strategy November 6, 2024 2
Slide 3: Financial Results
Financial Results Katsuhiko Yoshida Director, President COO & CFO November 6, 2024 3
Slide 4: Summary of Consolidated Business Results for 2Q
Summary of Consolidated Business Results for 2Q Net sales hit a quarterly record high Operating income hit a 2Q record high FY3/24 FY3/25 Change (Millions of yen) 2Q 1Q 2Q YoY QoQ Net sales 379,747 355,454 422,783 +11.3% +18.9% Operating income 21,747 20,025 28,146 +29.4% +40.6% Profit before taxes
Slide 5: Summary of Consolidated Business Results for 1H
Summary of Consolidated Business Results for 1H Net sales and operating income hit a 1H record high FY3/24 FY3/25 Change FY3/25 1H (Millions of yen) 1H 1H YoY August Forecast vs. Forecast Net sales 672,117 778,237 +15.8% 770,000 +1.1% Operating income 28,490 48,171 +69.1% 48,000 +0.4% Profit before
Slide 6: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin (Billions of yen) Net sales Operating income Operating margin 422.8 371.4 379.7 381.2 348.8 355.5 330.0 339.7 292.4 251.0 31.4 28.1 26.3 25.5 24.7 21.7 20.3 20.0 14.3 9.3% 8.0% 6.7 6.9% 6.5% 6.7% 5.7% 5.7% 5.8% 5.6% 2.3% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/23
Slide 7: 2Q Actual: Differences from the Forecast as of August
2Q Actual: Differences from the Forecast as of August (Billions of yen) 422.8 414.5 Net Sales Operating Income November 6, 2024 7
Slide 8: Precision Technologies (PT)
Precision Technologies (PT) Net sales (Billions of yen) Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners PMC * Operating income Operating margin *The sub-segment name has been changed to PMC (Precision Mechanical Components) from Pivot assemblies from FY3/24 4Q onward. 64.9 24.4%
Slide 9: Motor, Lighting & Sensing (MLS)
Motor, Lighting & Sensing (MLS) Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 6.4% 5.2% 3.3% 3.9% 3.1% 3.7% 2.2% 2.1% 0.2% 0% 106.4 -4.8% 1.5 98.0 97.0 99.1 96.2 1.5 9.6 1.0 90.7 1.5 92.7 91.9 1.7 9.1
Slide 10: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 182.7 10.5% 11.4% 9.0% 8.0% 8.7% 8.7% 168.7 5.5% 4.3% 157.1 0.4% 0.7% 146.5 137.0 123.6 109.5 111.2 16.4 15.6 86.8 81.7 12.6 12.8 9.1 9.5 9.3 4.7 0.6 0.6 1Q 2Q 3Q 4Q 1Q
Slide 11: Access Solutions (AS)
Access Solutions (AS) Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 87.9 83.0 82.0 27.1% 81.5 77.6 73.6 69.5 7.3% 3.7% 4.3% 2.3% 2.7% 1.5% 0.6% 0.2% 0% -0.9% 46.3 42.9 36.0 18.8 6.4 3.0 3.5 1.8 2.3 0.6 0.3 0.2 (0.3) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
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) 30.1 73.4 20.0 18.3 16.4 48.5 15.2 45.3 13.9 12.3 40.2 12.1 10.7 37.6 34.5 29.7 30.0 26.4 4.1 10.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/23
Slide 13: Inventory
Inventory (Billions of yen) 359.6 335.8 303.3 302.8 300.5 294.9 272.8 275.9 264.4 263.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/23 FY3/24 FY3/25 November 6, 2024 13
Slide 14: Net Interest-bearing Debt / Free Cash Flow
Net Interest-bearing Debt / Free Cash Flow (Billions of yen) Net interest-bearing debt * Free cash flow 260.5 220.0 201.7 208.6 84.4 86.9 23.2 25.5 24.7 14.8 (28.6) (62.2) FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/25 1H Forecast *Net interest-bearing debts: “Bonds and borrowings” - (“Cash and cash equi
Slide 15: Forecast: Full-year forecast unchanged
Forecast Full-year forecast for net sales and operating income unchanged FY3/24 FY3/25 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,402,127 778,237 781,763 1,560,000 +11.3% Operating income 73,536 48,171 54,829 103,000 +40.1% Profit before taxes 75,545 37,387 52,613 90,000
Slide 16: Forecast for Business Segment
Forecast for Business Segment FY3/24 FY3/25 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 1,402,127 778,237 781,763 1,560,000 +11.3% Precision Technologies (PT) 211,406 127,561 128,439 256,000 +21.1% Motor, Lighting & Sensing (MLS) 369,388 205,497 209,503 415,000 +12.3% Semic
Slide 17: Full-year forecast: Differences from the Forecast as of August
Full-year forecast: Differences from the Forecast as of August (Billions of yen) 1,560.0 1,560.0 Net Sales 103.0 103.0 Operating Income November 6, 2024 17
Slide 18: Business Update & Management Strategy
Business Update & Management Strategy November 6, 2024 Yoshihisa Kainuma Representative Director, Chairman CEO November 6, 2024 18
Slide 19: Today's Points
Today’s Points 1H sales and operating income both reached record highs. Recovery continues in data centers and aircraft applications, while PT and MLS (motors) profitability continues to improve. Overall Various measures to offset the impact of the slowdown in the automotive market, particular
Slide 20: Forecast for FY 3/25
Forecast for FY 3/25 The situation in 2H is somewhat unclear, despite the record high 1H, the full-year net sales and operating income forecast unchanged at this point (Millions of yen） FY3/24 FY3/25 1H Full Year 1H YoY 2H Full Year YoY Net sales 672,117 1,402,127 778,237 +15.8% 781,763 1,560,000 +1
Slide 21: Precision Technologies (PT) Update
Precision Technologies (PT) Update In addition to the growth of the data center market and automotive content, the expansion of PMC's applications and product lineup has put OP to exceed 60 billion yen from next fiscal year onward Server volume forecast Key Points with emergence of new generation on
Slide 22: New Pursat Plant (second plant in Cambodia)
New Pursat Plant (second plant in Cambodia) Expected to be a core base for PT business growth and the carbon neutrality Aim of Establishment / Outline • Progress: Groundbreaking ceremony held on September 20. Partial construction and recruiting/training of personnel to begin in FY3/25. Partial opera
Slide 23: Motor Lighting & Sensing (MLS) Update
Motor Lighting & Sensing (MLS) Update Due to content growth for automotive and increases in global niche top products, we expect OP 27 billion yen for FY3/25. OPM for FY3/27 will be 10% Global automotive production volume and Key Points growth potential of our focus markets* 1 Content growth for aut
Slide 24: Bed Sensor System
Bed Sensor System Realize the future of sleep using a near-future Bed Sensor System Evolution of Bed Sensor SystemTM functionality In addition to monitoring vital information, the system provides the user with the optimal “the future of sleep” according to the measured body condition and changes. Ex
Slide 25: Semiconductors & Electronics (SE) Update
Semiconductors & Electronics (SE) Update Accelerated growth in both analog and power semiconductor markets from 2025 onward Aiming to become a "Global Niche Top" in our field of expertise! Key Points Global market forecast Promote global niche top strategy that drives Analog semiconductors 1 competi
Slide 26: Measures to strengthen analog semiconductor business through acquisition
Measures to strengthen analog semiconductor business through business acquisition ABLIC acquires medical-related business from Socionext Leveraging handheld ultrasound diagnostic system to support the penetration of diagnostic imaging Medical-related PCB Chip set Handheld ultrasound business (Printe
Slide 27: Access Solutions (AS) Update
Access Solutions (AS) Update Capturing great opportunity of automotive electrification Growth faster than the market through the launch of high value-added products resulting from INTEGRATION Key Points Global automotive production and growth potential of our Access products Sales of Access products
Slide 28: Progress of INTEGRATED Products
Progress of INTEGRATED Products No competitor can combine a variety of technologies to create new products! Access solutions product Motor driver IC High value-added products through INTEGRATION One-stop solution for motor-related products using will be launched in the next few years our own technol
Slide 29: Our Room for Growth - Spear Strategy
Our “Room for Growth” - 8 Spear Strategy Defined a business with over 20 billion yen in OP as a “spear”, and confirmed 4 “spears”. With just the confirmed spears, we expect to see over 140 billion yen in OP in the near future! 1 Bearings Operating income 60 billion yen or more 2 Analog semiconductor
Slide 30: Shareholders Return
Shareholders Return Interim dividend maintained at previous year's level Dividends Dividends for FY3/25 20 Interim dividend TBD yen/share Year-end dividend TBD TBD (Forecast) Regarding the year-end dividends for the fiscal year ending March 31, 2025, we will finalize in light of our performance for
Slide 31: ESG Topics
ESG Topics Integrated Report 2024 published With a focus on strengthening human capital and improving profitability, we introduce strategies and measures aimed at enhancing our corporate value. See on our website → Acquired SBT certification We have received certification from SBTi, an international
Slide 32: 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 33: Reference
Reference November 6, 2024 33
Slide 34: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin *Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD,, Minebea Connect Inc., and Minebea AccessSolutions Inc. (Billions of yen) Special 1,560.0 Net sales factors Operating income 10.5* 1,402
Slide 35: Precision Technologies (PT)
Precision Technologies (PT) Net sales (Billions of yen) Operating income (Billions of yen) Ball Bearings Rod-ends/Fasteners PMC * Operating income Operating margin 256.0 *The sub-segment name has been changed to PMC (Precision Mechanical Components) from Pivot assemblies from FY3/24 4Q onward. 25.8%
Slide 36: Motor, Lighting & Sensing (MLS)
Motor, Lighting & Sensing (MLS) Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 5.8% 5.8% 4.8% 415.0 3.2％ 3.2% 7.0 371.0 366.3 369.4 38.0 0.3% 363.8 4.2 4.3 4.2 4.6 32.6 35.4 37.5 35.7 24.0 46.0 49.3 21.
Slide 37: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) *Operating income prior to 2Q FY3/24 has been revised Net sales (Billions of yen) Operating income (Billions of yen) in accordance with finalization of PPA for HONDA TSUSHIN KOGYO CO., LTD, and 550.0 Operating income Operating margin Minebea Connect Inc. 530.1 **Exc
Slide 38: Access Solutions (AS)
Access Solutions (AS) Net sales (Billions of yen) Operating income (Billions of yen) *Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPA for Minebea AccessSolutions Inc. Operating income Operating margin **Excl. special factors 9.9% 329.0 5.2% 322.1 2.3% 3.3%
Slide 39: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 45.6 42.7 43.5 41.6 39.2 39.9 38.1 35.6 36.8 32.7 13.0% 13.0% 12.2% 12.2% 11.5% 10.9% 10.8% 10.5% 10.8% 9.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/23 FY3/24 FY3/25 November 6, 2024 39
Slide 40: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) Capital expenditure Depreciation & Amortization expenses * 147.0 89.0 83.6 * 73.5 64.0 ** 58.4 ** 48.6 53.0 45.5 45.2 39.6 31.7 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/25 1H Forecast * Capital expenditures of FY3/22 & FY3/23 include new HQ building
Slide 41: ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital) MinebeaMitsumi ＝ NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate) ROIC Invested capital (Notes receivable/accounts receivable + inventories + non-current assets - notes payable/accounts payable) Calculated using business assets (trade receivable/p