MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q1 FY3/2025 Earnings Presentation
32 slides from MinebeaMitsumi's earnings presentation, Aug 2, 2024
Slide 1: First quarter FY3/2025 consolidated financial results
Hello this is Yoshida. Today I would first like to explain the consolidated financial results for the first quarter of the fiscal year ending March 31, 2025. 1
Slide 2: Consolidated net sales and operating income for Q1
Consolidated net sales for the first quarter of the fiscal year ending March 31, 2025, was up 21.6% year on year and up 1.9% quarter on quarter to total 355,454 million yen. Operating income increased 3 times year on year and down 1.6% quarter on quarter to total 20,025 million yen. Profit for the p
Slide 3: Quarterly trend in net sales, operating income and margin
This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the first quarter was 5.6%, up 3.3 percentage point year on year and down 0.2 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. Net sales of PT exceeded the forecast due to the recovery of the data center market from the bottom, and the robust sales for aircraft application
Slide 5: Precision Technologies segment quarterly trends
This slide shows the quarterly trends of PT segment. On the left is a graph indicating yearly net sales trends and on the right is a graph with a bar chart showing yearly operating income trends along with a line chart for operating margins. First quarter net sales increased 7.8% quarter on quarter
Slide 6: Motor, Lighting & Sensing segment quarterly trends
This slide shows the quarterly trends for Motor, Lighting & Sensing segment. Net sales increased 2.2% quarter on quarter to total 99.1 billion yen. Looking at the results by product, we see that sales of motors increased 2.6% quarter on quarter to reach 77.1 billion yen. This was mainly due to stron
Slide 7: Semiconductors & Electronics segment quarterly trends
This slide shows the quarterly trends for Semiconductors & Electronics segment. Net sales increased 1.6% quarter on quarter to total 111.2 billion yen. This was mainly due to incorporation of Minebea Power Semiconductor Devices (formerly Hitachi Power Semiconductor Devices), which became a consolida
Slide 8: Access Solutions segment quarterly trends
This slide shows the quarterly trends for Access Solutions segment. Net sales decreased 1.8% quarter on quarter to total 81.5 billion yen. This was mainly due to stagnant sales in Chinese market despite the increase in sales in automotive devices. Operating income came to 3.0 billion yen, and the op
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 13.9 billion yen. Earnings per share was 34.5 yen. 9
Slide 10: Quarterly inventory trend
Next we have the quarterly inventory trend. At the end of the first quarter, inventory totaled 359.6 billion yen, which is 64.7 billion yen more than what it was three months ago. This is mainly due to the strategic buildup of inventories needed to meet the expected increase in sales in 2Q onward as
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 251.2 billion yen, was up 42.6 billion
Slide 12: Upward revision to full-year forecast
We made upward revision to the full-year forecast for the fiscal year ending March 31, 2025. We now target net sales of 1,560 billion yen and operating income of 103 billion yen. The full-year forecast factor in only the amount by which the first quarter results exceeded the forecast in terms of bot
Slide 13: Forecast by business segment
This slide shows the forecast by business segment. 13
Slide 14: Revised forecast versus May forecast
This chart shows the difference between the revised forecast this time and the forecast as of May. This is all for my presentation. 14
Slide 15: Key points of today's presentation
Hello, I’m Yoshihisa Kainuma. I will now explain today's key points. We ask you to please take a look at this page later, as we will not go into the details now. The key message is that the market conditions have almost come back to pre-COVID-19 level. Although industrial machinery had been slow to
Slide 16: Strong 2Q response and exchange rate assumptions
We are feeling a very strong response for the 2Q as well, but due to the current exchange rate fluctuations, we would like to ask for more time to make a decision on the forecast for the 2Q onward. Operating income tripled year on year. As I explained in the financial results presentation in May, th
Slide 17: Bearings as a leading indicator of the economy
We have explained in the past that bearings are the leading indicator of the economy, being the first to improve when the economy picks up and the last to decline when it slows down. Bearings are finally making a comeback. Average sales volume in July were almost 300 million units/month. The forecas
Slide 18: Motor Lighting & Sensing profit improvement
In Motor Lighting & Sensing (MLS), in addition to the recovery of motors for data centers, we have implemented various profit improvement measures in other general motors which lead to higher margins. Although LED backlighting for smartphones is practically at the end of its life, there is no need t
Slide 19: Semiconductors & Electronics optical devices
Regarding Semiconductors & Electronics (SE), the market share for optical devices was down a few percent from what we expected. Our launch was a bit delayed, but we believe the overall impact is very limited. As we work to strengthen each core products in the Eight Spears strategy, it is very diffic
Slide 20: Three major topics for Access Solutions
We would like to discuss three major topics for Access Solutions (AS). First, automotive devices (such as MITSUMI antennas) have been in the red for a long time, but now that we can consistently generate operating income of 5% or more, they are finally blossoming and have become very exciting. Secon
Slide 21: Track record, structural reforms and future outlook
As I explained at the last financial results presentation in May regarding the track record for 15 years, the current situation, and the future, there are three major things that I would like to talk about. First, we have succeeded in structural reforms. Of the approximately 60 billion yen in operat
Slide 22: Share buyback plans
Today (August 2, 2024), the Japanese market seems to have had the second largest drop in its history, and we are willing to implement share buyback from a long-term perspective. However, as disclosed today in the "Notice Regarding Determination of Details for Performance-Linked Stock Remuneration Sy
Slide 23: Forward-looking statements
August 2, 2024 MinebeaMitsumi to Create Value 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 partic
Slide 24: Reference
Reference 24
Slide 25: Net Sales, Operating Income / Margin
Net Sales, Operating Income / Margin “Operating income prior to 3Q FY3/24 has been revised in accordance with finalization of PPAfor HONDA TSUSHIN KOGYO CO., LTD., (Billions of yen) ‘Minebea Connect Inc., and Minebea AccessSolutions Inc. Net sales Special Operating income ~O- Operating margin FY3/21
Slide 26: Precision Technologies (PT)
Precision Technologies (PT Net sales (Billions of yen) 255.0 Operating income (Billions of yen) | = Ball Bearings © Rod-ends/Fasteners © PMC” oso ' | == Operating income =O= Operating margin } “The sub-segment name has been changed to PMC (Precision ie A Mechanical Components) from Pivot assemblies
Slide 27: Motor, Lighting & Sensing (MLS)
Motor, Lig Net sales (Billions of yen) | = Motors “Electronic devices © Sensing devices © Other } ng & Sensing (M Operating income (Billions of yen) [= Operating income =O= Operating margin ] 18% 5.8% 5.8% 415.0 , oo) p===60 3.2% 3.2% Leen 1 360 ! ° 363.8 371.0 366.3 369.4 tL 0.3% ! ra a a ws |---4
Slide 28: Semiconductors & Electronics (SE)
Semiconductors & Electronics (SE) Operating income (Billions of yen) “nse eeton wena en ene Net sales (Bitions of yen) perating { LE eee [== Operating income =o Operating margin | Winsbea Connect ne “Excl. special factors pole 530.1 i , 494.7 ' L} 1 1 1 1 1 1 429.1 1 ' ' 1 1 1 361.0 ' 1 ! 1 1 i} 1 1
Slide 29: Access Solutions (AS)
ccess Solutions (AS) Net sales (Billions of yen) Operating income (Billions of yen) *Operating income prior to 3 FY3/24 has been ‘revised in accordance with finalization of PPA for | == Operating income =O= Operating margin } Minebea Inc. “Excl. special factors: 330.0 9.9% 322.1 cra Soe ty ' 1 ' 1 '
Slide 30: S.G.&A. Expense / Ratio
S.G.&A. Expense / Ratio (Billions of yen) [ ™ S.G.&A. expenses =CE= S.G.&A. to sales ratio ] ae 427 435 August 2, 2024 30 MinebeaMitsumi Dierence ‘Passion to Create Valve through 30
Slide 31: Capital Expenditure / D&A Expense
Capital Expenditure / D&A Expense (Billions of yen) [ | Capital expenditure ™@™® Depreciation & Amortization expenses ] 83.6 80.0 * rot 58.4 | | 840 ' 1 ' 1 ' ' ' 216 159 1 ' ' 1 FY3/24 FY3/25 FY3/25 1Q Forecast * Capital expenditures of FY3/22 & FY3/23 include new HQ building acquisition expenses "
Slide 32: ROIC (Return On Invested Capital)
OIC (Return On Invested Capital) NOPAT Invested capital (Operating income + extraordinary profitloss) x (1-tax rate) MinebeaMitsumi ROIC Calculated using business assets (trade receivable/payable, inventories, non-current assets) by segment (Notes receivable/accounts receivable + inventories + non-c