MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Minebea — FY2007 Earnings Presentation
25 slides from MinebeaMitsumi's earnings presentation, May 8, 2007
Slide 1: Business Results
Business Results Fiscal Year Ended March 31, 2007 May 8, 2007 Minebea Co., Ltd.
Slide 2: 1. Financial Results 2. Policy and Strategy
1. Financial Results 2. Policy and Strategy May 8, 2007
Slide 3: Financial Results
Financial Results Hiroharu Katogi Director, Managing Executive Officer May 8, 2007
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results Year ended Year ended Forecast announced Change Mar. '06 Mar. '07 in October 2006 (Millions of yen) vs. Full year Full year yoy Full year forecast Net sales 318,446 331,022 +3.9% 324,000 102.2% Operating income 19,269 26,265 +36.3% 28,000 93.8% Machined compo
Slide 5: Quarterly Summary of Consolidated Business Results for 4Q
Quarterly Summary of Consolidated Business Results for 4Q Appreciation of the Thai Baht and negative results in some businesses slowed down overall improvement Year ended Year ended Change Change Mar. '06 Mar. '07 (Millions of yen) 4Q 3Q 4Q yoy qoq Net sales 81,759 83,332 83,692 +2.4% +0.4% Operatin
Slide 6: Net Sales
Yearly Net Sales Net sales exceeded the previous record high set in FY 3/98. (Billions of yen) 400 331.0 335.0 318.4 294.4 300 272.2 268.6 200 100 0 FY end Mar.'03 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08E Net sales May 8, 2007 5
Slide 7: Operating Income
Yearly Operating Income Operating margin continued its improvement. (Billions of yen) 45.0 9.0% 10.0% 40.0 7.9% 7.1% 35.0 6.7% 8.0% 6.1% 30.0 30.0 4.8% 26.3 6.0% 25.0 20.0 19.4 18.1 19.3 4.0% 15.0 14.1 10.0 2.0% 5.0 0.0 0.0% FY end Mar.'03 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08E Operating income Op
Slide 8: Sales and Operating Income of Machined Components Business
Sales and Operating Income of Machined Components Business (Billions of yen) 160 Net sales (Billions of yen) Operating income 35.0 26.0% 142.3 Operating income 137.7 140 Operating margin 129.6 17.5 24.0% 30.0 19.4 27.9 118.1 120 116.1 111.7 20.0 26.2 22.0% 29.7 24.6 20.2 25.0 17.9 25.9 Other machine
Slide 9: Sales and Operating Income of Electronic Devices and Components Business
Sales and Operating Income of Electronic Devices and Components Business (Billions of yen) 250 Net sales (Billions of yen) Operating income 4.0 Operating income 2.0% Operating margin 2.1 193.4 2.0 200 192.7 1.1% 188.8 0.5% 1.0% 178.3 7.9 8.1 7.7 0.8 14.1 12.2 8.1 15.0 0.1 0.0% 156.9 14.2 Measuring c
Slide 10: Net Income
Yearly Net Income % FY 3/07 net income made a significant increase due to growth in operating income and the absence of business restructuring loss in FY3/06. (Billions of yen) 16 15.0 14 12.9 12 10 8 6.0 5.6 6 4.3 4 2 -2.4 0 FY end -2 Mar.'03 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08E Net income -4 M
Slide 11: S.G. & A. Expense
Yearly S.G. & A. Expense S.G. & A. to sales ratio continued to lower. (Billions of yen) 60 25% 49.4 48.3 49.2 50 47.2 47.1 47.0 20% 40 18.1% 17.6% 16.4% 15% 15.5% 30 14.2% 14.0% 10% 20 5% 10 0 0% FY end Mar.'03 Mar.'04 Mar.'05 Mar.'06 Mar.'07 Mar.'08E S.G. & A. expense S.G. & A. to sales ratio May 8
Slide 12: Capital Expenditure
Yearly Capital Expenditure FY 3/08 Main Area of Investment New overseas factory Ball bearings Capacity expansion and renewal Aircraft parts Capacity expansion (Billions of yen) HDD spindle motors Rationalization and renewal 30.0 27.5 23.1 21.9 20.0 18.8 16.4 17.0 10.0 0.0 FY end Mar.'03 Mar.'04 Mar.
Slide 13: Net Interest-Bearing Debts
Yearly Net Interest-Bearing Debts Net interest-bearing debts were significantly reduced. (Billions of yen) (Billions of yen) 200.0 35.0 30.0 152.9 150.7 146.7 146.9 150.0 128.5 25.0 120.0 22.7 20.0 100.0 16.0 12.5 15.0 9.1 10.0 50.0 6.8 3.8 5.0 0.0 0.0 FY end Mar.'03 Mar.'04 Mar.'05 Mar.'06 Mar.'07
Slide 14: Forecast for Fiscal Year Ending March 31, 2008
Forecast for Fiscal Year Ending March 31, 2008 Year ended Year ending Mar.'08 Change Mar.'07 (Millions of yen) Full year 1H 2H Full year yoy Net sales 331,022 162,500 172,500 335,000 +1.2% Operating income 26,265 14,000 16,000 30,000 +14.2% Machined components business 26,195 13,800 14,100 27,900 +6
Slide 15: Policy and Strategy
Policy and Strategy Takayuki Yamagishi Representative Director, President and Chief Executive Officer May 8, 2007
Slide 16: Highlights of FY3/07
Highlights of FY3/07 3 Businesses in Focus Reviewed business Turned profitable on a full year basis zInformation motors structure Structural reforms Turned profitable on zKeyboards a monthly basis in March accomplished zHDD spindle motors Improved, but slight losses Reduced costs (Thai Baht appreci
Slide 17: A Strategic Growth Company
A Strategic Growth Company Mid-term Business Plan Aiming net sales (Billions of yen) of ¥500 billion FY 3/08 FY 3/09 FY 3/10 Net Sales 335.0 350.0 370.0 Operating Income 30.0 34.0 38.0 Growth Income Before Income Taxes 23.5 26.0 30.0 Strengthen Business Strategy, Business Growth of Strategic Technol
Slide 18: Innovation
Innovation Bearings / Motors Smaller products New Product DC Brush Motors New products for new markets Development Lighting Devices For notebook PCs Measuring Instruments Medical and healthcare products New Market Motion Control Resolvers for automobiles Entrance Cooling systems for Fan / Blowers
Slide 19: Ball Bearings
Ball Bearings Market growth Above-average market growth of miniature ball bearings New product for new market Capacity and Miniature and small-sized ball bearing shipments (monthly average) (Million units/month) cost competitiveness 250 Increase Production Capacity to 200 million units / mo 200
Slide 20: Aircraft Parts
Aircraft Parts Market growth Mid-size to small aircrafts : passenger demands growth and emerging market growth Large to mid-size aircrafts : freight demands grow faster than passengers Minebea’s aircraft parts business Strengthen engineering capability for aircraft engine-related parts Product
Slide 21: Motors
Motors Reorganization of business Completed the first stage, moving to the next Information motors moved to expansion Fan motors Core of business expansion Completed major layout change at factory Developed a 3mm diameter PM stepping motor in Shanghai, ready to expand (for auto focusing of mob
Slide 22: Lighting Devices
Lighting Devices Small LED backlight (1-3 inches) Ultra-thin LED backlights for mobile LCD device Contributions in the 2H Low cost LED backlights For this FY Mid-size LED backlights (6-9 inches) For car navigation system Introduced in the market Contributions for this FY New product for notebo
Slide 23: New Market Entrance
New Market Entrance New applications for existing products Started new initiatives in various areas Medical and healthcare market Measuring instruments (example) Steering wheel torque sensor Stepping motors Medical Fluid pump Resolver Automotive parts market 2 sensors inside May 8, 2007 22
Slide 24: Financial Strategy: Dividend Increase and Reduction of Interest Bearing Debts
Financial Strategy : Dividend Increase and Reduction of Interest Bearing Debts Dividend Mid-term target = ¥100 billion of • FY3/07 Year-end ¥10/share net interest-bearing debts (an increase of ¥3/share) (Billions of yen) (Billions of yen) • FY3/08 Forecast is also 200.0 40.0 Year-end ¥10/share 180.
Slide 25: Business Results
Business Results Fiscal Year ended March 31, 2007 Minebea Co., Ltd. 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