MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q1 FY2022 Earnings Presentation
34 slides from MinebeaMitsumi's earnings presentation, Aug 4, 2021
Slide 1: First quarter FY ending March 2022 results introduction
My name is Yoshida. Today I would first like to explain the consolidated financial results for the first quarter of the fiscal year ending March 31, 2022, and then Mr. Kainuma, Representative Director, CEO & COO, will explain the highlight of this fiscal year. 1
Slide 2: Consolidated results for first quarter
Consolidated net sales for the first quarter of the fiscal year ending March 31, 2022, was up 32.5% year on year and down 1.1% quarter on quarter to total 248,305 million yen. Operating income totaled 19,628 million yen, which was 5.8 times higher than what it was in the first quarter of last year a
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 first quarter was 7.9%, up 6.1 percentage point year on year and up 3.6 percentage points quarter on quarter. 3
Slide 4: Forecast versus actual results by segment
Here shows the difference between the forecast as of May and actual results for net sales and operating income by business segment for the first quarter. While net sales for the machined components business segment started off the fiscal year with a bang, overall sales were generally in line with ou
Slide 5: Machined components business 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. First quarte
Slide 6: Electronic devices & components segment
Now let’s look at the electronic devices & components segment. Net sales decreased 4.7% quarter on quarter to hit 90.4 billion yen. Looking at the results by product, we see that sales of motors increased 6.1% quarter on quarter to reach 62.4 billion yen. This is because the robust sales in all type
Slide 7: Mitsumi business segment
Let’s look at the performance for the Mitsumi business segment. Net sales decreased 3.3% quarter on quarter to total 76.8 billion yen. Although sales of mechanical components and analog semiconductors increased thanks to strong demand, overall sales for the segment declined due to the impact of the
Slide 8: U-Shin business segment
Finally, let's look at the U-Shin business segment. Net sales rose 14.3% quarter on quarter to hit 36.9 billion yen. Although there was a negative impact from production adjustments at some OEMs due to the semiconductor shortage, overall sales for the segment were up due to the impact of the busines
Slide 9: Profit attributable to owners 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 14.7 billion yen. Earnings per share was 36.1 yen. 9
Slide 10: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the first quarter, inventory totaled 195.5 billion yen, which is 24.1 billion yen more than what it was three months ago. This is due primarily to the fact that we strategically accumulated to secure the inventory needed to increase sales tha
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 first quarter, net interest-bearing debt, totaling 94.5 billion yen, was up 10.2 billion y
Slide 12: Upward revision to full-year forecast
We made an upward revision to the full-year forecast for the fiscal year ending March 31, 2022, which we announced in May. This latest revision, which was made only to the forecast for the first half, was prompted by higher-than- projected first quarter results and the expectation that demand for ba
Slide 13: Forecast by business segment
This slide shows the forecast by business segment. 13
Slide 14: CEO highlights of the presentation
Hello, I’m Yoshihisa Kainuma. First off, I'd like to go over the highlights of today's presentation. First quarter performance significantly improved although it’s difficult to make a year-on-year comparison with last fiscal year when we conducted a PPA for ABLIC and had other factors to deal with.
Slide 15: Ball bearing production capacity expansion
As previously announced, we were aiming to boost our monthly production capacity of miniature and small-sized ball bearings to 345 million units by the end of this fiscal year but have decided to increase it to 365 million units. As noted in the diagram shown in the top right-hand corner of this sli
Slide 16: Aircraft-related business outlook
The aircraft-related business is basically still the same, but I think it might be just a bit better than last year. As you are aware, there have been news reports that United Airlines bought 200 planes, that Airbus and Boeing saw profit turnarounds, and that US domestic passenger traffic has made a
Slide 17: Motor sales growth target
We are aiming to boost motor sales by at least 60 billion yen this fiscal year to reach between 260 and 270 billion yen. This is a 30% increase, and it will largely come from HDD spindle motors and automotive motors. As I’ve told you before, we have been seeing our products make inroads into various
Slide 18: Analog semiconductors business outlook
For analog semiconductors, we have posted the presentation file for the semiconductor business briefing we recently had for sell-side analysts on our website. If you haven’t seen it, please take a look. Roughly speaking, I believe that analog semiconductors have grown into a business that could gene
Slide 19: Analog semiconductor sales target and market
As I’ve been saying all along, we will initially aim for 100 billion yen in analog semiconductor sales, which would make us roughly the 10th highest in sales worldwide. As shown on the slide, the overall semiconductor market is huge, generating 36 trillion yen. Analog semiconductors alone account fo
Slide 20: Optical devices and mechanical components
While we see the optical devices and mechanical components businesses as sub- core businesses, both are doing extremely well in terms of production. We expect products used in smartphones will make a big contribution to our bottom line beginning in the second quarter when seasonal demand picks up. G
Slide 21: COVID-19 response in Southeast Asia
While recent newspaper reports have highlighted the impact of COVID-19 in Southeast Asia, we have managed to keep our operations running without any hitches. While there have, of course, been COVID-19 cases among our employees, we have implemented thorough infection control measures, including more
Slide 22: Share buyback and shareholder returns
We decided to buy back shares as part of our shareholder return policy. If you look at other companies’ P/E ratios and take the electrical equipment sector whose market capitalization is over 500 billion yen for example, the median is 22.5x and the average is 28.8x. Compared to that, our P/E ratio i
Slide 23: ESG topics: support for single mothers
Let’s turn to the ESG topics. Following on the heels of the support program benefitting children who lost their parents in the Great East Japan Earthquake, we will provide support for single mothers. 23
Slide 24: More ESG topics
Here are more ESG topics. Please take a look. 24
Slide 25: Estimated breakdown of 100 billion yen operating income
This slide is from the third quarter investor meeting held this past February. It shows an estimated breakdown of our 100-billion-yen operating income. The numbers on the bottom right are from the May 2017 investor meeting, which I explained changed with the two-year delay. Some of you may remember
Slide 26: August 4, 2021 forward-looking statements
August 4, 2021 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 s
Slide 27: Reference
August 4, 2021 Reference 27 27
Slide 28: Machined Components
Machined Componen “JGAAP for FY3/18 Net sales (Billions of yen) Operating income {Billions of yen) [__=Ballbearings =Rod-ends/Fasteners = Pivot assemblies = Other | [ == Operating income —O=Operating margin _| 24.2% 25.4% 24.9% ee Paes . 198%) — 188.3 Praimpactinag. | 47g - 176.4 7 1 43.4 / 43.5 205
Slide 29: 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 | Including ¥19.0 bn of business transfer impact ‘Smart Products [=== Operating income _—o=Operating margin _| 451.5 for 387.3 3794 B
Slide 30: Mitsumi Business
Mitsumi Business Net sales (Billions of yen) Operating income {Billions of yen) inducing alvirg buses rrr [=== Operating income _—@—Operating margin | Smart Products +¥19.0bn Home Security Units +¥2.Sbn Total -¥9.Sbn 8.6% _ 81% 6.6% 2 6.4% 361.0 \ 370.0 see i 5.5% 308.4 1 292.2 1 ' 250.6 1 ime coe e
Slide 31: U-Shin Business
U-Shin Business Net sales (Billions of yen) ‘Including following business transfer impact Home Security Units -¥2.Sbn Automotive Products _+31.0bn Tital +¥28.5bn 148.6 149.0 cn 1 1 1251 1 1 105.1 4 ! ! 1 1 1 1 I 1 t 1 ' 1 1 1 ' } 4 u FY12/17 FY12/18 FY3/20 FY3/21 22 ag Operating income {Billions of
Slide 32: S.G.&A. expense / ratio
S.G.&A. expense / ratio {Billions of yen) wwe S.G.8A. expenses -O-S.G.8A. to sales ratio 29.0 30.1 FY3/22 Mineboaliksuml 32
Slide 33: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense *JGAAP for FY3/18 (Billions of yen) = Capital expenditure = Depreciation & Amortization expenses 70.0 1 | ' 1 ' 1 ' 1 ' 1 ' 1 1 145.0 ii. 1 1 1 1 1 1 1 f 1 1 1 1 1 1 1 ' 1 1 1 1 1 1 1 1 1 1 1 1 il H H +—t 1 FY3/18 FY3/19 Pye FY3/22 Forecast * Capital expenditures of
Slide 34: MinebeaMitsumi ROIC
MinebeaMitsumi NOPAT (Operating income + extraordinary profitiloss) x (1-tax rate) i (Notes receivable/accounts receivable + inventories ROIC Invested capital + non-current assets - notes payable/accounts payable) Calculated using business assets (trade receivable/payable, inventories, non-current a