Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Q3 FY3/2022 Earnings Presentation
30 slides from Minebeamitsumi's earnings presentation, Feb 4, 2022
Slide 1: Consolidated financial results for Q3 FY ending March 2022
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, 2022. 1
Slide 2: Consolidated results summary
Consolidated net sales for the third quarter of the fiscal year ending March 31, 2022, was up 10.4% year on year and up 7.9% quarter on quarter to total 304,348 million yen. Operating income totaled 25,832 million yen, which was 32.1% up year on year and up 3.3% quarter on quarter. Profit for the pe
Slide 3: Quarterly trend in net sales and operating income
This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the third quarter was 8.5%, up 1.4 percentage point year on year and down 0.4 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 for the machined components business segment were slightly lower than projected due to sluggish sales for office automation and hom
Slide 5: Machined components segment
Now let’s take a look at the results by segment, starting with machined components 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 margins. Third quarte
Slide 6: Electronic devices & components segment
Now let’s look at the electronic devices & components segment. Net sales decreased 3.2% quarter on quarter to total 90.7 billion yen. Looking at the results by product, we see that sales of motors increased 0.5% quarter on quarter to reach 66.5 billion yen. This is mainly due to robust sales for HDD
Slide 7: Mitsumi business segment
Let’s look at the performance for the Mitsumi business segment. Net sales increased 21.0% quarter on quarter to total 134.2 billion yen. As seasonal demand picked up so did sales of optical devices and mechanical components. The sales of analog semiconductors remained strong. Operating income came t
Slide 8: U-Shin business segment
Finally, let's look at the U-Shin business segment. Net sales increased 10.5% quarter on quarter to hit 36.1 billion yen. This jump was due to the diminishing impact from production adjustments made by some automakers in response to the semiconductor shortage. While our operating loss totaled 0.3 bi
Slide 9: Profit and earnings per share
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 18.4 billion yen. Earnings per share was 45.4 yen. 9
Slide 10: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the third quarter, inventory totaled 224.6 billion yen, which is 10.5 billion yen more 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 115.5 billion yen, was up 31.1 billion
Slide 12: Upward revision of full-year forecast
We made upward revisions to the full-year forecast for the fiscal year ending March 31, 2022, which was announced in November. We have revised the forecast for the net sales to 1,100 billion yen and the operating income to 92 billion yen. The estimated net sales figures for the electronic devices an
Slide 13: Forecast by business segment
This slide shows the forecast by business segment. This is all for my presentation. 13
Slide 14: President's highlights and bearing investment
Hello, I’m Kainuma. First off, I'd like to go over the highlights of today's presentation. There’s a lot here, but I think a valiant effort was made under various circumstances. Also, I think we’ve done everything for this year. I’m not sure whether operating income will be 92.0 billion yen or 93.0
Slide 15: Electro Mechanics Solutions and integration
At the results briefing 13 years ago when I became company president, I said that my mission was to maximize the stock value and solidify the foundation for the 100th anniversary. I believe that I have been making steady progress in that regard. We announced a basic strategy of Electro Mechanics Sol
Slide 16: Key message: conventional trend and new trend
On this page is one of today’s key messages. First, if you look at the blue part of the graph at the bottom, it says “Conventional trend.” Since I became company president in 2009, net sales have grown at a CAGR of around 11% through M&A and organic growth. Up to now, I have talked about how high-gr
Slide 17: Need for a new base in Tokyo
That is why we need a new base in Tokyo. There are three main objectives for this. The first is to secure the human resources for more aggressively going after new growth domains. I would like this to be a place where more outstanding people can come and interact with each other, not only inside the
Slide 18: Overview of the new base
This is an overview of the new base. There are some who have asked why we are purchasing it, but I believe we need to. We rented a building in Meguro for 20 years. It goes without saying that we will not get the 11 billion yen we paid in rent back. When we relocated to Mita, all that we had to show
Slide 19: Osaka R&D Center
At the same time, we will open ORDC, Osaka R&D Center, in Kansai region, Japan. As I mentioned earlier, I am convinced that it will be necessary not only in Tokyo but also in the Kansai region to hire plenty of engineers to develop what the world needs. This is also a stepping stone, as I believe we
Slide 20: Outlook for next fiscal year
The last slide is our outlook for next fiscal year. Thankfully we achieved record-high profits, but there was actually a fairly strong headwind. As you are aware, we were faced with a shortage of semiconductors, which triggered a slump in the automobile market, soaring raw material prices, disruptio
Slide 21: Disclaimer (February 4, 2022)
February 4, 2022 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 22: Reference
February 4, 2022 Reference 22 22
Slide 23: Net Sales, Operating Income/Margin
Net Sales, Operating Income/ Margin (Billions of yen) a Natiaaies = Operating income 1,100.0 an! ~O- Operating margin 9728.4 988.4 1 92.0 \ 879.1 792 884.7 1 1 1 1 ' ' 1 ' ' ' 1 ' 1 t 1 ' ' ' 1 ' ' ' ' ' ' ' ! ! pa | ~~~ 7 (eae) | 1 1 ' ' 1 ' 1 he 1 ) FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Forecast [JGA
Slide 24: Machined Components
Machined Componen “JGAAP for FY3/18 Net sales (Billions of yen) Operating income {Billions of yen) [_=Ballbearings »Rod-endsiFasteners » Pivot assemblies = Other | [___=="Operating income | —o=Operating margin _| 188.3 176.4 180.9 177.0 roo- H 1 1 ' ' | ee ' ' bo-4 ' ' ' ' ' 1 ' ' ' ' ' ' ' ' ' ' 1
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 _—O=Operating margin _ | 451.5 387.3 379.4 370.0 ee | 363.8 oie Bee ' ! a 44% 46% 48% oa 165.0! . ; 8% a
Slide 26: Mitsumi Business
Mitsumi Business *JGAAP for FY3/18 Net sales (Billions of yen) Operating income {Billions of yen) w= Operating income —O—Operating margin 410.0 a6% 9.5% aan 12% vs 1 ' 6.4% 66% | 361.0 1 1 or 1 ' ' 4 5.5% 308.4 1 ! 292.2 ! i 39.0 t 4 aes | om 250.6 : ' JABLIC PPA po 1 ' ' ' 1 Total i ' 1 ‘ ' ' ' ' 1
Slide 27: U-Shin Business
U-Shin Business Net sales (Billions of yen) Operating income {Billions of yen) [== Operating income — -—Operating margin _ | 168.6 148.6 142.0 ame | 125.1 1 ot 1 1 ! 1 105.1 ! ' Excluding ¥4.3bn of one time ' 1 7.0 ‘cost for restructuring costs in i) 1 Europe etc. in 40 ' 1 5.4 i) 1 i) 1 i) t 1 oot
Slide 28: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio {Billions of yen) mm S.G.&A. expenses -O-S.G.8A. to sales ratio 31.9 FY3/22 Mineboaliksuml 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 cc Including ¥7.8 bn ' ' due to down payment of ' ' new HQ building acquisition 1 A ' i] 5s. 2 ot 1 ' ' ! ' ' 45.0 indi i 1 1 1 1 ' 1 1 1 1 1 1 1 1 fl 1 1 1 1 1 fi
Slide 30: ROIC
ROIC for U-Shin business are pre-merger result and based ROIC (Return On Invested Ca pita ) , ples an included in the Total until FY3/19. MinebeaMitsumi NOPAT (Operating income + extraordinary profitiloss) x (1-tax rate) i (Notes receivable/accounts receivable + inventories RO I c Invested capital +