Minebeamitsumi Inc. · TSE:6479
Minebeamitsumi — Minebea — FY2012 Earnings Presentation
44 slides from Minebeamitsumi's earnings presentation, May 10, 2012
Slide 1: Business Results Fiscal Year Ended March 31, 2012
Business Results Fiscal Fiscal Year Year Ended Ended March March 31, 31, 2012 2012 May 10, 2012 Minebea Co., Ltd. 0
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy May 10, 2012 1 1
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Senior Managing Executive Officer May 10, 2012 2 2
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Lower sales and profits due to the Great East Japan Earthquake, higher rare-earth prices, stronger Japanese yen and Thai floods. FY ended FY ended Change (Millions of yen) Mar. '11 Mar. '12 Full year Full year YoY Net sales 269,139 251,358 -6.6% Operating inc
Slide 5: Summary of Consolidated Business Results for 4Q
Summary of Consolidated Business Results for 4Q 4Q sales and profits rebound from impact of Thai floods. Insurance payout pushes net income up. FY ended FY ended Change (Mi ll i ons of yen) Mar. '11 Mar. '12 4Q 3Q 4Q YoY QoQ Net sal es 63,944 56,716 62,193 -2.7% +9.7% Operating i ncome 4,194 850 1,6
Slide 6: Net Sales Yearly
Net Sales Yearly Decreased Decreased 6.6% 6.6% YoY YoY (Billions of yen) 400.0 331.0 334.4 312.0 300.0 269.1 256.2 251.4 228.4 200.0 100.0 0.0 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13E May 10, 2012 5 Here is a graph showing annual net sales. In the fiscal year ended March 31, 2012, ne
Slide 7: Operating Income Yearly
Operating Income Yearly (Billions of yen) Decreased Decreased 61.2% 61.2% YoY YoY 35.0 30.8 15.0% 30.0 26.3 25.0 23.3 22.2 9.2% 10.0% 20.0 7.9% 8.2% 7.5% 15.0 13.4 12.1 10.0 8.6 5.0% 5.2% 5.3% 5.0 3.4% 0.0 0.0% Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13E Operating income Operating margi
Slide 8: Machined Components Business Yearly
Machined Components Business Yearly Net sales Operating income Pivot assemblies (Billions of yen) Operating Income (Billions of yen) Rod-ends/Fasteners Operating Margin 30.0 30.0% Ball bearings 28.1 28.0 116.0 25.6 107.8 107.0 26.0% 25.0 99.3 100.0 34.0 24.1% 25.0% 26.6 26.7 20.6 26.3 20.0 23.9% 19.
Slide 9: Machined Components Business Quarterly
Machined Components Business Quarterly Net sales Operating income (Billions of yen) Pivot assemblies (Billions of yen) Operating Income Rod-ends/Fasteners 8.0 Operating Margin 30.0 Ball bearings 7.3 28.2 28.0 7.1 7.1 27.5 27.1 6.9 26.8 26.6 26.3 6.8 30% 6.5 24.4 6.3 27.3% 7.4 6.3 6.6 6.6 8.0 6.0 6.6
Slide 10: Rotary Components Business Yearly
Rotary Components Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) Operating Income 126.0 6.0% Operating Margin 4.0% 101.1 100.0 2.5 2.3 91.4 2.0% 74.2 1.8% (0.2) 0.0 0.0% -0.2% 50.0 -2.5% -2.0% (2.5) (1.8) -4.5% -4.0% (4.1) 0.0 (5.0) -6.0% Mar.'10 Mar.'11 Mar.'12 Mar.'
Slide 11: Rotary Components Business Quarterly
Rotary Components Business Quarterly Net sales Operating income (Billions of yen) (Billions of yen) 30.0 1.0 5% Operating Income Operating Margin 26.7 25.6 0.5 1.0% 25.3 24.9 24.3 24.3 0.3 0.0 0.0 22.1 0.0 0% 0.0% 0.1% 20.0 19.3 (0.5) (0.5) (0.5) -2.1% -2.1% (1.0) (0.9) -5% -3.6% (1.1) (1.5) -5.0% 1
Slide 12: Electronic Devices & Components Business Yearly
Electronic Devices & Components Business Yearly Net sales Operating income (Billions of yen) Electronic devices (Billions of yen) Operating Income Measuring components Operating Margin 6.0 18.0% 60.0 60.0 5.4 7.5 15.0% 4.2 4.0 12.0% 40.5 3.0 40.0 10.3% 37.9 35.8 9.1 6.6 2.0 5.0% 6.0% 10.6 52.5 20.0
Slide 13: Electronic Devices & Components Business Quarterly
Electronic Devices & Components Business Quarterly Net sales Operating income (Billions of yen) (Billions of yen) Electronic devices 2.0 20% 12.0 Measuring components Operating Income Operating Margin 10.9 10.7 10.5 1.5 15.4% 1.8 1.5 15% 10.0 9.7 1.6 1.3 2.5 9.2 9.2 9.2 9.0 12.3% 1.8 1.7 1.7 8.0 3.0
Slide 14: Other Business Yearly
Other Business Yearly Net sales Operating income (Billions of yen) (Billions of yen) Special devices & Other Operating Income Speakers Operating Margin Keyboards 6.0% 1.0 4.0% 19.2 19.7 20.0 2.5% 2.0% 15.1 0.5 10.0 10.5 5.7 0.0 0.0 0.0% 10.0 0.5 0.0% (0.3) 3.3 3.2 2.9 3.6 -2.2% -2.0% 6.4 6.2 6.6 (0.
Slide 15: Other Business Quarterly
Other Business Quarterly Net sales Operating income (Billions of yen) (Billions of yen) Special devices & Other Speakers Keyboards Operating Income 6.0 5.7 0.4 8% 5.1 0.3 4.7 4.4 6.1% 2.7 4.1 4.0 4.0 3.8 2.6 0.2 4% 2.6 1.9 2.0 1.8 1.4 2.8 0.1 0.1 2.2% 0.5 1.1 2.2% 2.0 0.9 0.8 0.9 0.8 0.7 0.6 0.7 0.0
Slide 16: Net Income Yearly
Net Income Yearly Decreased Decreased 52.5% 52.5% YoY YoY (Billions of yen) (yen) 16.3 60.0 16.0 50.0 12.9 40.9 12.5 12.5 12.0 40.0 32.6 33.0 30.0 32.2 8.0 5.9 6.7 20.0 6.2 17.2 10.0 15.6 4.0 2.4 0.0 0.0 (10.0) Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13E Net income Net income per share
Slide 17: S.G. & A. Expenses Yearly
S.G. & A. Expenses Yearly (Billions of yen) 30% 50.0 50.0 47.1 47.1 45.6 44.8 44.3 25% 41.1 40.0 17.8% 18.0% 20% 17.6% 16.7% 14.9% 15.1% 30.0 14.2% 15% 20.0 10% 10.0 5% 0.0 0% Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13E S.G. & A. expenses S.G. & A. to sales ratio May 10, 2012 16 SG&A ex
Slide 18: Inventories Yearly
Inventories Yearly (Billions of yen) 49.0 45.9 42.4 44.0 40.0 38.7 35.9 20.0 0.0 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 May 10, 2012 17 Inventories as of March 31, 2012 were up 5 billion yen year on year. This increase was due to our stockpiling strategy designed to meet any sudden demand f
Slide 19: Capital Expenditure & Depreciation Yearly
Capital Expenditure & Depreciation Yearly (Billions of yen) Capital Expenditure 36.0 Depreciation & Amortization Expenses 30.0 27.3 27.3 26.4 24.6 24.9 24.0 21.1 20.8 20.2 19.6 19.6 20.0 17.0 11.1 10.0 0.0 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13E *From FY 3/09, due to change in lease
Slide 20: Net Interest-Bearing Debt Yearly
Net Interest-Bearing Debt Yearly (Billions of yen) (Billions of yen) Net interest-bearing debt 160.0 40.0 Free cash flow (right axis) 128.5 30.0 120.0 114.2 115.0 109.6 110.0 103.6 96.9 22.7 23.4 20.0 80.0 17.7 12.5 10.0 40.0 (4.2) 3.6 0.0 (8.8) 0.0 (10.0) Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar
Slide 21: Forecast for Fiscal Year Ending March 31, 2013
Forecast for Fiscal Year Ending March 31, 2013 Expecting significantly higher sales and profits due to the growth of HDD parts and LED backlights, as we gain further distance from the natural disasters. FY ended Fiscal Year ending Mar. '13 Mar. '12 (Millions of yen) Change Full Y e a r 1st Half 2nd
Slide 22: Forecast for Business Segment
Forecast for Business Segment FY ended Fiscal Year ending Mar.2013 Mar. '12 (Millions of yen) Full year 1st Half 2nt Half Full year Change Net sales 251,358 148,100 163,900 312,000 +24.1% Machined components 107,037 57,300 58,700 116,000 +8.4% Rotary components 91,363 59,900 66,100 126,000 +37.9% El
Slide 23: Policy and Strategy
Policy and Strategy May 10, 2012 Yoshihisa Kainuma Representative Director, President and Chief Executive Officer 22 Now let’s move on to policy and strategies. Since many aspects of what I'm going to talk about today were covered in the medium-term business plan we announced at the February investo
Slide 24: Business Environment
Business Environment 60th Anniversary ⇒ A year of Disasters ・Took measures to counter negative factors including the Tohoku Earthquake, the Thai Floods, stronger yen and rare-earth material price hike. Recovery of HDD Spindle Motor Parts Factory Damaged by the Floods ・Navanakon Plant (machined parts
Slide 25: Relative Stock Performance
Relative Stock Performance April 1, 2011 through March 30, 2012 Minebea / Nikkei Average 120 Minebea / TOPIX April 1, 2011 = 100 110 100 March 30, 2012 = 80 90 80 70 March 30, 2012 = 77 60 April 2011 June August October December March 2012 May 10, 2012 24 All I can say about our stock performance is
Slide 26: New Medium-term Business Plan Strategy
New Medium-term Business Plan Strategy May 10, 2012 25 25
Slide 27: New Medium-term Plan Revised Targets (FY3/13-FY3/15)
New Medium-term Plan Revised Targets (FY3/13-FY3/15) New Medium-term Business Plan Targets (Billions of yen) Respond to rapidly (Sales) (Operating Income) 500 9.8% 50 changing market （Operating Margin） 8.3% Expand profitable 7.5% 388.0 37.9 machined components 400 350.0 370.0 37.0 40 3.4% 312.0 335.
Slide 28: Machined Components Business
Machined Components Business New Medium-term Business Plan Targets (Billions of yen) Increase pivot 27.4% (Operating Income) assembly market share 150 （Operating Margin） 60 25.0% Expand to 50 million 23.9% 24.1% pivots/mo. and 100 million 124.0 50 ball bearings for pivots/mo. 120.0 116.0 107.0 100 4
Slide 29: Rapid Increase in Pivot Assembly Market Share
Rapid Increase in Pivot Assembly Market Share (millions of units) Quarterly HDD Shipment Volume 200 Rapid increase in market share After a competitor (with a 20% market share) was hit by the Thai Floods last October, Minebea’s market share has 150 gone from 60% to 80%. Recovery of HDD market Althoug
Slide 30: Boost Ball Bearing Sales
Boost Ball Bearing Sales Ball bearing demand continues to grow as global economy steadily expands (millions of Ball Bearing Sales Volume units / month) 250 (External & Internal Shipments Combined) Increase production of ball bearings for pivots at newly constructed building in Ban Pa-in factory. 200
Slide 31: Orders for Aircraft Bearings Soar
Orders for Aircraft Bearings Soar Commercial Aircraft Delivery (Number of Aircrafts) at Boeing and Airbus 1,400 Increased orders will fuel aircraft market growth over Boeing Production the medium run. 1,200 Airbus Production 1,000 New Boeing 787 production Forecast shifts into high gear. 800 600 400
Slide 32: Rotary Component Business
Rotary Component Business Medium-term Business Plan Targets (Billions of yen) (Sales) (Operating Income) Motor businesses 200 174.0 20 to boost earnings. Sales （Operating Margin） 156.0 OP 148.0 150 126.0 133.0 15 114.0 5.1% 3.9% 8.9 More cost 100 91.4 10 1.8% 8.0 competitive 5.7 Expanding Cambodia 5
Slide 33: Boost HDD Spindle Motor Profitability
Boost HDD Spindle Motor Profitability ・Progress in productivity including production yield ・Maintain product mix focused on high-value-added products ・Will supply new 7mm-thick 2.5 inch HDD spindle motors to 3 brands Moving to complete recovery of production capacity from the Thai Floods Back in the
Slide 34: Profit Improvements in Rotary Components
Profit Improvements in Rotary Components Sales Sales recover recover from from Tohoku Tohoku Earthquake Earthquake and and Thai Thai Floods Floods Brushless DC motors Increase Increase volume volume with with growing growing OA OA demand demand Increase Increase volume volume with with growing growi
Slide 35: Aggressively Expand Cambodian Plant
Aggressively Expand Cambodian Plant Measures Measures against against rising rising wages wages in in Asia Asia ++ risk risk diversification diversification ++ OEM OEM business business Launched Launched in in December December 2011 2011 Accelerate Accelerate shifting small-sized precision motor shi
Slide 36: Agreement to Acquire 50.8% Stake in Moatech Shares
Agreement to Acquire 50.8% Stake in Moatech Shares Strengthen our 2nd place position in stepping Market Market share share motor market via integration of Minebea (12%) シェア拡大 シェア拡大 increase increase and Moatech (11%) to rank us closer to the top Group (31%). Utilize low cost production capability of
Slide 37: Electronic Devices & Components Business, Other
Electronic Devices & Components Business, Other Medium-term Business Plan Targets (Billions of yen) EDC Sales 100 Other Other 10 Boost earnings from (Operating Margin) EDC LED backlights OP Other 15.0 7.3% Finally started shipping LED 80 EDC 12.0 8 (Operating Margin) backlights for a tablet PC 10.0
Slide 38: New Product Development (LED Lighting)
New Product Development (LED Lighting) Thin lens for LED downlight (patent application) Merit 1: Low cost and thin (coin type) Lens (Billions of yen) LED downlight sales outlook 1,500 Developed using the same optical and ultra-precision machining technologies used for LED backlights Conventional New
Slide 39: Accelerate growth through M&As in Machined Components Business
Accelerate growth through M&As in Machined Components Business Joint Investment Recent Independent Acquisitions Scheme Moatech Co. DBJ / Minebea Invited Investors DPM Co. Brushless DC motors (Former (Former Information Information Equipment Equipment SPC Borrowings Motor Motor business business of o
Slide 40: Implementing 2nd Incentive Plan
Implementing 2nd Incentive Plan E-Ship ®* plan first introduced in November 2009 successfully completed ■Participation ratio of Minebea Employee Stock Holding Partnership and percentage of shares held by the Partnership has doubled since introduction. ■Distributed payment to participating employees
Slide 41: Capital Expenditure Plan
Capital Expenditure Plan Will invest 79.5 billion yen over 3 years (Billions of yen) Capital Expenditure Plan 50.0 Capital Expenditure Depreciation and amortization 40.0 36.0 30.0 27.3 24.5 19.6 19.6 19.8 19.0 20.2 20.0 10.0 0 FY3/2012 FY3/2013E FY3/2014E FY3/2015E May 10, 2012 40 This is the capita
Slide 42: Net Interest-bearing Debts Plan
Net Interest-bearing Debts Plan Net Interest-bearing Debts Free Cash Flows (Billions of yen) (Billions of yen) 25.0 Net Interest-bearing Debts 19.9 150.0 Free Cash Flows 20.0 115.0 15.0 114.2 110.6 100.0 6.8 96.0 10.0 3.6 5.0 50.0 0 -8.8 -5.0 0 -10.0 FY3/2012 FY3/2013E FY3/2014E FY3/2015E May 10, 20
Slide 43: Dividend Policy
Dividend Policy Dividend Policy FY03/12 year-end dividend: 4 yen/share; Total year:7yen/share Dividend forecast for FY03/13: Interim: 3 yen/share Year-end: 4 yen/share Our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders, with dividends re
Slide 44: Minebea Co., Ltd.
Minebea Co., Ltd. Business Results http://www.minebea.co.jp/ 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