Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q3 2022 Earnings Presentation
30 slides from Minebeamitsumi's earnings presentation, Feb 4, 2022
Slide 1: Business Results Third Quarter of Fiscal Year Ending March 31, 2022
Business Results Third Quarter of Fiscal Year Ending March 31, 2022 MinebeaMitsumi Inc. February 4, 2022
Slide 2: Summary of Consolidated Business Results for 3Q
Summary of Consolidated Business Results for 3Q Net sales hit a quarterly record high Net sales, operating income and profit for the period all hit record highs for 9 months FY3/21 FY3/22 Change (Millions of yen) 3Q 2Q 3Q YoY QoQ Net sales 275,709 281,955 304,348 +10.4% +7.9% Operating income 19,552
Slide 3: Net Sales, Operating Income/Margin
Net Sales, Operating Income/ Margin (Billions of yen) Net sales Operating income Operating margin 304.3 279.5 275.7 282.0 267.7 274.3 251.0 248.3 226.9 204.4 187.5 25.8 25.0 23.3 19.6 19.6 19.6 17.5 12.4 10.7 8.7% 8.9% 8.5% 7.1% 7.9% 7.0% 6.4% 3.3 5.5% 3.4 4.3% 1.6% 1.8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 4: 3Q Actual: Differences from the Forecast as of November
3Q Actual: Differences from the Forecast as of November (Billions of yen) 288.7 +8.7 304.3 +0.1 282.0 △7.0 271.5 Net Sales 288.7 +8.7 +0.1 25.8 282.0 25.0 △7.0 Special factor approx. Operating -¥0.4bn Income February 4, 2022 4
Slide 5: 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% 27.0% 24.8% 23.2% 22.6% Special 21.2% 21.1% 20.9% factor 20.1% 20.0% approx. 46.1 -¥0.4bn 45.1 45.2 44.5 18.2% 11.9 44.1 44.1 4
Slide 6: 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% 4.1% -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
Slide 7: Mitsumi Business
Mitsumi Business Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 9.2% 10.2% 11.3% 8.7% 134.2 7.1% 6.7% 6.8% 6.6% 3.6% 0.0% 114.3 0% -1.0% 110.7 111.0 15.2 100.9 79.4 11.3 79.2 76.8 9.9 62.4 7.1 7.3 7.6 56.6 49.7 5.1 4.2 2.9 0.0 (0.6) 1Q 2Q 3Q 4Q 1Q 2Q
Slide 8: 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% -0.1% -0.9% -0.2% -0.9% 36.9 36.1 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) (0.3) 15.6 (2.2) (2.5) 1Q 2Q 3Q 4Q
Slide 9: 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 18.4 16.1 14.1 14.7 13.2 50.4 46.4 45.4 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
Slide 10: Inventory
Inventory (Billions of yen) 224.6 214.1 204.4 186.5 195.5 181.4 175.9 174.4 169.8 174.3 171.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/20 FY3/21 FY3/22 February 4, 2022 10
Slide 11: 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) 115.5 90.0 84.4 75.2 52.5 46.5 42.9 37.2 23.2 21.7 17.0 -7.3 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22 1Q-3Q Forecast *Net interest-bearing debts :“Bonds and borrowings” – (“Cash
Slide 12: Forecast for Fiscal Year Ending March 31, 2022
Forecast for Fiscal Year Ending March 31, 2022 Full-year forecast for net sales, operating income, and profit for the period all revised upward to hit record highs FY3/21 FY3/22 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY Net sales 988,424 530,260 569,740 1,100,000 +11.3% Operating i
Slide 13: 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 988,424 530,260 569,740 1,100,000 +11.3% Machined components 157,411 88,357 88,643 177,000 +12.4% Electronic devices and components 345,595 184,127 185,873 370,000 +7.1% Mitsu
Slide 14: Today's Points
Today’s Points 3Q results were higher than projected despite ongoing impacts from increase in material / logistic expense, supply chain disruption, and semiconductor shortages. Aiming for operating income of ¥92B plus this fiscal year as 4Q forecasts Overall trend upward. Higher probability of
Slide 15: R&D (1): Lay the Groundwork for 100th Anniversary (2051)
R&D (1): Lay the Groundwork for 100th Anniversary (2051) Establish a state-of-the-art R&D base to lay the groundwork for a strategy with an eye to 100th anniversary - Become the top INTEGRATED parts manufacturer in technology as well - • By INTEGRATING accumulated elemental technologies and 8 spears
Slide 16: R&D (2): R&D for Solving Social Issues
R&D (2): R&D for Solving Social Issues Products that contribute to solving social issues accelerate sales growth in addition to conventional trends Examples of products that solve social issues, which we actively enter the market Energy Environment Low birthrate and longevity Grow Triple precision b
Slide 17: R&D (3)-1: Setting Up New Tokyo Base
R&D (3)-1:Thus, Setting Up New Tokyo Base Establish a firm R&D center to maximize advantage of the location in Tokyo to achieve sales of 2.5 trillion yen and operating income of 250 billion yen - Thoroughly strengthen areas where there is a need - Leverage geographical Make Eight Spears stronger Rig
Slide 18: R&D (3)-2: Supplementary Info about New Tokyo Base
R&D (3)-2:Supplementary info about New Tokyo Base Acquiring Asset Land / Building (Former headquarters building of Nippon Express Company, Limited and other) Location 1-9-3 Higashi Shimbashi, Minato-ku, Tokyo Site area 5,518.54m2 Total floor area 53,078.82m2 Acquisition amount 73.2 billion yen Date
Slide 19: R&D (4): New Kansai Base (ORDC)
R&D (4): New Kansai Base (ORDC) Strengthen R&D system and engineers in Osaka, along with Tokyo, to solidify the foundations for medium- to long-term growth Key Points Kansai area R&D Dep. 1 Collaboration with TRDC（Tokyo R&D Center） • MinebeaMitsumi • U-shin Showa • U-shin Industrial Equipment Sales
Slide 20: Vision for the Next Fiscal Year (beyond ¥100B)
Vision for the Next Fiscal Year (beyond ¥100B) Three spears + 1 will drive operating income up beyond ¥100B Semiconductor shortage: All affected markets will recover. Improvements Automobile market: Expected to move toward recovery. in external Material costs: The worst is over. environment COVID-19
Slide 21: 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 22: Reference
Reference February 4, 2022 22
Slide 23: Net Sales, Operating Income/Margin
Net Sales, Operating Income/ Margin *JGAAP for FY3/18 (Billions of yen) Net sales Operating income 1,100.0 Operating margin 988.4 92.0 978.4 879.1 79.2 884.7 72.0 58.6 51.2 9.0% 8.4% 8.1% 6.0% 5.2% FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Forecast [JGAAP] [ IFRS ] February 4, 2022 23
Slide 24: 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 26.3% 25.4% 24.2% 22.0% Excluding ¥0.7bn of PPA 19.8% 188.3 impact in 4Q 180.9 47.8 177.0 46.5 176.4 29.5 43.
Slide 25: 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 4.3 363.8 370.0 36.4 4.6 4.0 32.5 32.6 36.0 6.9% 6.4% 4.4% 4.6% 4.8% 227.8
Slide 26: Mitsumi Business
Mitsumi Business *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 410.0 9.5% 8.6% 7.2% 6.4% 6.6％ 361.0 5.5% 308.4 292.2 39.0 Excluding following one time cost 250.6 ABLIC PPA -¥2.1bn Extraordinary expenses/losses Optical Device -¥1.9b
Slide 27: 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 28: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) S.G.&A. expenses S.G.&A. to sales ratio 31.9 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% 10.5% 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 February 4, 2022 28
Slide 29: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense *JGAAP for FY3/18 (Billions of yen) Capital expenditure Depreciation & Amortization expenses 78.0 Including ¥7.8 bn due to down payment of new HQ building acquisition 54.2 54.2 55.2 * 50.1 48.6 46.2 45.5 45.0 36.4 31.6 33.4 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/22
Slide 30: 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