Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Minebea — Investor Presentation (January 2003)
17 slides from Minebeamitsumi's investor presentation, Jan 21, 2003
Slide 1: Current Situation and Outlook on Core Business
Current Situation and Outlook on Core Business （14-15 Jan. 2003 Shanghai and Thailand Factory Tour） Investor Meeting 21 Jan. 2003 President and Representative Director Tsugio Yamamoto Senior Managing Director/General Manager of the 1st Manufacturing Headquarters Rikuro Obara General Manager of Elect
Slide 2: Contents
Contents 1. Business Strategy 2. Business in China 3. Strategy for Lop Buri Plant in Thailand 4. Introduction of Lighting Devices Operation 5. Ball Bearings 6. HDD Spindle Motors 7. Other Products of Bang Pa-in Plant in Thailand January 21, 2003 1
Slide 3: Business Strategy
Business Strategy Machined components Rotary components Electronic devices Ball bearings Small-sized precision motors Bearing-related products PC keyboards New-Product Production Cost Development Technologies Minebea Vertically Integrated Alliance Manufacturing System Alliance M&A M&A Ultraprecision
Slide 4: Business in China
Business in China Objectives set 10 years ago, when Minebea began business in China Ø Entry into huge Chinese market Ø Risk diversification Ø Creation of a new standard in manufacturing costs for the Minebea Group Utilization of Minebea’s Ultraprecision Machining Technologies and Installation of Ful
Slide 5: Strategy for Lop Buri Factory in Thailand
Strategy for Lop Buri Factory in Thailand New development and expansion Renewed expansion plan with a focus on Lighting Devices back light 2 main Moving production of Measuring Components measuring instruments operations from Ayutthaya Plant, where production of ball Sustainment bearing is expanded
Slide 6: Introduction of Lighting Device Operation
Introduction of Lighting Device Operation 1999 2000 2001 2002 2003 2004 Market Trend of Lighting Device （in terms of LCD technology） Mobile Phone Japan color 100% STN LCD TFT LCD high-intensity double-sided type model & thin model East Asia color STN LCD TFT LCD Europe & USA color LCD panel market s
Slide 7: Towards 180 Million Units Sales Production of Ball Bearings
Towards 180 Million Units Sales Production of Ball Bearings Sales expansion November 2002 Over 140 million units March 2003 Target 150 million units Within next fiscal year Target 180 million units per month Production capacity expansion (Million units/ month) - Have begun to rebuild existing 200 ma
Slide 8: Ball Bearing Business Strategy
Ball Bearing Business Strategy Miniature & Small-sized Ball Bearing Market Global Market Size Estimate 250 million per month Expand Market Share High-end Applications： （Minebea’s Current Spindle Motors, Global Market Minebea’s Pivot Assemblies, Share 60％） Current Market Automobiles, PCs, Air Conditi
Slide 9: Ball Bearing Sales Price, Unit Production Cost and Production Volume
Ball Bearing Sales Price, Unit Production Cost and Production Volume (Million units) 200 180 Index 160 Sales price 140 Index 120 100 Unit Production cost 80 Production volume 60 (Right axis） 40 20 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q Ave. Mar. Year ended Mar. 2002 Year ending Mar. 2003 Year ending Mar. 2004 Janua
Slide 10: HDD Spindle Motor Shipments Trend
HDD Spindle Motor Shipments Trend (1,000/Month) 8,000 More than 80% is expected to be FDB Motor 7,000 FDB Motor BB Motor 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE 1QE Dec.E Year ended Mar. 2002 Year ending Mar. 2003 Year ending Mar. 2004 January 21, 2003 9
Slide 11: HDD Spindle Motor Shipment Trend
HDD Spindle Motor Shipment Trend (million units/year) 300 Competitors 250 Minebea 200 150 36％ 100 28％ 23％ 50 17％ 19％ 20％ 13％ 14％ 0 91 97 98 99 00 01 02E 03E 04E Minebea’s share is steadily rising almost as planned January 21, 2003 10
Slide 12: Current Spindle Motor Business and Next Targets
Current Spindle Motor Business 3.5 inch Desk top Market share & size estimate: Oct.-Dec. 2002 Minebea’s current Share: 25％ * Minebea’s share in FDB Motors: Almost 50% Next Targets Market: 15 million units per month High-end Server Under 2.5 inch 21％ 10％ Market: 2 million units Market: 3 million unit
Slide 13: Strategies of HDD Spindle Motor Business
Strategies of HDD Spindle Motor Business Ø During April to June 2003 Expect to turn profitable Ø July to September 2003 Stabilize and expand profitability Ø December 2003 Target 750 million units per month ⇒ Have built profitable base with 3.5 inch only Ø Increasing 3.5 inch business in line with us
Slide 14: Fan Motors, Keyboards, Pivot Assemblies
Fan Motors, Keyboards, Pivot Assemblies Ø Strengthen parts divisions for all products Fan Motors Ø Currently produce 6.5 million per month in Shanghai Expect volume to reach 8 million per month from Oct. 2003 Ø Have begun joint product development with Matsushita Motor Company in Karuizawa Keyboards
Slide 15: New Keyboard Factory
New Keyboard Factory Shanghai Shun Ding Technologies Ltd January 21, 2003 14
Slide 16: Endless Attempt for Improvement
To be No.1 Precision Component Manufacturer Dynamic parts division forms the base for all divisions Promote drastic improvement in productivity as being achieved in ball bearings production - Per unit floor space - Per machine and equipment - Per employee Endless Attempt for Improvement January 21,
Slide 17: Current Situation and Outlook on Core Business
Current Situation and Outlook on Core Business http://www.minebea.co.jp/ Any statements in the presentation which are not an historical fact are future projections made based on certain assumptions and our management's judgment drawn from currently available information. Please note that actual perf