MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Minebea — FY2005 Earnings Presentation
24 slides from MinebeaMitsumi's earnings presentation, May 13, 2005
Slide 1: Business Results, Fiscal Year ended March 31, 2005
Business Results Fiscal Year ended March 31, 2005 Minebea Co., Ltd. Tsugio Yamamoto Representative Director, President and Chief Executive Officer May 13, 2005
Slide 2: Consolidated Results for Fiscal Year ended March 31, 2005
Consolidated Results for Fiscal Year ended March 31, 2005 Year ended Year ended Change Previous forecast Mar. '04 Mar. '05 vs. (Millions of yen) Full year Full year yoy Full year forecast Net Sales 268,574 294,422 +9.6% 300,000 98.1% Operating Income 18,104 14,083 -22.2% 14,000 100.6% Ordinary Incom
Slide 3: Full Year Net Sales and Operating Income by Segment
Full Year Net Sales and Operating Income by Segment Forecast Year ended Full year Year ended Year ended Change announced (Millions of yen) Mar. '05 in Nov. 2004 vs. Mar. '04 Mar. '05 yoy H2 H2 forecast [Net Sales] Machined components business 111,692 116,105 +4.0% 58,755 60,650 96.9% Bearing-related
Slide 4: Quarterly Net Sales and Operating Income by Segment
Quarterly Net Sales and Operating Income by Segment -------------- Year ended Mar. '04 -------------- -------------- Year ended Mar. '05 -------------- Q4 change (Millions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 yoy qoq [Net Sales] Machined components business 28,606 27,059 27,434 28,593 28,256 29,094 28,92
Slide 5: Net Sales by Segment
Sales increased in all segments. Sales Net Sales by Segment of bearing-related products increased. Owing to establishment of Minebea- Matsushita Motor JV, sales in rotary component business increased. (Billions of yen) 294.4 295.0 300 287.0 279.3 272.2 10.7 1.0 268.6 71.6 69.7 Consumer business 250
Slide 6: Sales of Machined Components Business
Sales of Sales ratio Machined Components Business 33% Bearing-related components 6% Other machined components Change (Billions of yen) yoy Ball bearings 140 111.7 116.1 +4% 119.9 • Shipment of miniature ball bearings 120 increased 10 % yoy in fiscal year ended 17.1 17.9 +5% 18.3 Mar. ‘05. Unit price
Slide 7: Sales of Rotary Components
Sales ratio Sales of Rotary Components Rotary components 36% Change yoy (Billions of yen) 106.8 +23% 120 105.4 2.6 1.7 HDD spindle motors 100 86.7 • Shipment in the fiscal year ended Mar. ‘05 18.2 17.9 80 19.8 decreased 10 % yoy. 22.0 +11% 22.8 60 Fan motors, Stepping motors, 25.5 29.1 +14% 29.0 40
Slide 8: Sales of Other Electronic Devices
Sales ratio Sales of Other Electronic Devices 24% Other electronic devices Keyboards • Sales reached record high. Market share Change (Billions of yen) yoy for desktop type expanded. Gained new business for notebook type. 70.1 71.6 +2% 69.7 80 Electronic devices 6.1 8.1 +33% 7.1 60 12.9 14.2 +10% 11
Slide 9: Sales by User Industry and by Region
Fiscal Year ended March 31, 2005 Sales by User Industry and by Region Sales ratio of PC and related products decreased from 44% of last fiscal year. Sales increased for automobile and PC related equipment. Sales by user industry PC and PC Home Automobile Aerospace OA & IT related Motors Others Total
Slide 10: Operating Income by Segment
Operating Income by Segment Operating income of machined components reached 18.6%. (Billions of yen) 25 14% 20 11.5% 12% 15 22.8 10% 21.6 23.9 22.1 7.9% 10 8.3 8% 18.5 7.1% 19.5 6.7% 6.1% 5 6% 4.8% -0.2 0.8 0 4% FY end Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05 Mar.'06E -5 -1.4 2% -4.8 -7.5 -10 0% Mach
Slide 11: Electronic Devices and Components Segment Operating Income Breakdown
Electronic Devices and Components Segment Operating Income Breakdown 3 businesses Q3 Q4 HDD spindle motors Almost flat (Billions of yen) Minebea-Matsushita Motor Almost flat 2 Electronic devices and Keyboards Almost flat components business total 1 0.7 0.7 0.7 0.2 Sum except for 3 businesses 0 -1 3
Slide 12: SG & A Expenses
SG & A Expenses S.G.& A. to sales ratio decreased to the 16% level. Target to lower to the 15% level in this fiscal year. (Billions of yen) 60 25% 51.1 51.3 49.4 50 47.2 48.3 47.0 20% 40 18.4% 18.1% 17.8% 17.6% 16.4% 15% 15.9% 30 10% 20 5% 10 0 0% FY end Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05 Mar.'
Slide 13: Capital Expenditure
Capital Expenditure Fiscal year ending Mar.’06 Main areas of investment (Billions of yen) Pivot assemblies increase production 50 Ball bearings increase production and improve productivity 39.9 Minebea-Matsushita Motor JV mold, equipment for 40 rationalization. 30 26.2 23.1 22.5 20 18.8 16.4 10 0 FY
Slide 14: Interest-Bearing Debt
Interest-Bearing Debt Target to reduce to below 150 billion yen (Billions of yen) at the end of fiscal year ending Mar. ‘06. 200 173.2 168.7 152.9 146.7 150.7 150 146.5 100 50 16.0 5.2 9.7 6.8 4.0 3.8 0 FY end Mar. '01 Mar. '02 Mar. '03 Mar. '04 Mar. '05 Mar. '06E Interest-bearing debt Net interest-
Slide 15: Forecast of Fiscal Year ending March 31, 2006
Forecast of Fiscal Year ending March 31, 2006 Year ended Year ending Change Mar. '06 (Millions of yen) Mar. '05 Forecast yoy Net Sales 294,422 295,000 +0.2% Operating Income 14,083 18,000 +27.8% Ordinary Income 10,206 14,000 +37.2% Income before 7,778 12,500 +60.7% Income Taxes Net Income 5,581 7,50
Slide 16: Forecast of Net Sales and Operating Income by Segment
Forecast of Net Sales and Operating Income by Segment Year ended Year ending Mar. '06 Change (Millions of yen) Mar. '05 forecast Full year H1 H2 Full year yoy [Net Sales] Machined components business 116,105 58,500 61,400 119,900 +3.3% Bearing-related products 98,218 49,800 51,800 101,600 +3.4% Othe
Slide 17: New Management Structure and New Policy
New Management Structure and New Policy May 13, 2005 16
Slide 18: Management Objectives
Management Objectives Manufacturing R&D Integration Focus Manufacturing Maintain and improve profitability 1. Reduce deficit Sales 2. Increase profit 3. Secure future profit Organization SP EE D Take decisive actions for structural reform Reinforce R&D Manage with clear vision SP Reorganization EE D
Slide 19: New Management Policy
New Management Policy 1. Take decisive actions for structural reform. Reorganize manufacturing and sales divisions. Build cross-sectional manufacturing organization. Strengthen the Group’s cross-sectional functions. 2. Reinforce R&D. Reinforce development of basic technologies. Set up a structure th
Slide 20: Structure Reorganization
Structure Reorganization Business units Headquarters Product A Product B Product C Manufacturing Headquarters Each of Engineering Headquarters headquarters provide Sales Headquarters support functions to business units Administrative Headquarters Finance Headquarters : Organization reporting to busi
Slide 21: Reinforcement of R&D
Reinforcement of R&D Strengthening of basic R&D Promote mutual exchange of technologies in the Group Basic R&D and production development New product development for mid and long term directly linked to business Manufacturing unit R&D centers R&D groups Karuizawa, Hamamatsu, USA, Germany totally
Slide 22: Intermediate Goals
Intermediate Goals 1. Reduce deficit. Concentrate on improving profitability of the three loss making businesses. 2. Increase profit. Increase sales of bearing and related businesses. 3. Secure future profit. (Reinforce rotary components business.) Focus on high-value added products. Expand display-
Slide 23: Profit Improvement Plan for 3 Businesses
Profit Improvement Plan for 3 Businesses (Billions of yen) Total sales of 150 132.7 3 businesses 131.7 142.1 28.5 27.9 29.9 Keyboards Minebea-Matsushita 69.3 69.6 71.5 Motor JV HDD spindle motors 34.9 34.2 40.7 0 Breakeven 0 1 Year ended Year ending Year ending Mar.'05 Mar.'06E Mar.'07E -7.2 Minimum
Slide 24: Business Results
Business Results Fiscal Year ended March 31, 2005 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