MinebeaMitsumi Inc. · TSE:6479
MinebeaMitsumi — Q3 FY2018 Earnings Presentation
23 slides from MinebeaMitsumi's earnings presentation, Feb 7, 2018
Slide 1: Business Results Third Quarter of Fiscal Year Ending March 31, 2018
MinebeaMitsumi Passion to Greste Valve throoah Difference Business Results Third Quarter of Fiscal Year Ending March 31, 2018 MinebeaMitsumi Inc. February 7, 2018
Slide 2: Highlights of consolidated financial results (nine months)
Here are the highlights of our consolidated financial results. Consolidated net sales for the first nine months ending March 2018 totaled 654,927 million yen while operating income came to 64,389 million yen and net income 51,555 million yen. That's a year-on-year increase of 48.0% in net sales whil
Slide 3: Consolidated results for the third quarter
Now I would like to go over the consolidated financial results for the third quarter of the fiscal year ending March 2018. Consolidated net sales reached 225.9 billion yen while operating income totaled 22,437 million yen and net income 17,278 million yen. Net sales increased 35.0% year on year, whi
Slide 4: Quarterly net sales trends
This graph shows the trends in quarterly net sales. This quarter net sales reached 225.9 billion yen to significantly exceed the previous third- quarter record high. 4
Slide 5: Quarterly operating income and margin trends
Here is a graph with a bar chart for quarterly operating income trends and a line chart indicating operating margins. Standing at 22.4 billion yen, operating income was the highest ever for any third quarter by a wide margin. This was also the fifth straight quarter we saw operating income rise year
Slide 6: Machined components segment results
This slide shows the results for the machined components segment. On the left is a graph indicating quarterly net sales trends and on the right is a graph with a bar chart showing quarterly operating income trends along with a line chart for operating margins. Net sales for the third quarter were up
Slide 7: Electronic devices and components segment results
This slide shows the results for the electronic devices and components segment. Third quarter net sales declined 16% quarter on quarter to total 112.3 billion yen. Steady sales in the automobile market kept motor sales up where they were last quarter at 46.7 billion yen. Net sales of electronic devi
Slide 8: Mitsumi business segment results
This slide shows the results for the Mitsumi business segment. Third quarter net sales were up 10% quarter on quarter to total 66.7 billion yen. The factors behind this uptick included peaking demand that significantly drove up shipment volumes for new game consoles on top of increased sales of came
Slide 9: Quarterly net income trends
This graph contains a bar chart showing quarterly net income trends and a line chart indicating net income per share. Net income decreased 14% quarter on quarter to hit 17.3 billion yen but still set a third- quarter record high. Net income per share was 41.2 yen. 9
Slide 10: Quarterly SG&A expenses trends
The graph you see here has a bar chart showing trends in quarterly SG&A expenses and a line chart indicating SG&A expenses-to-sales ratios. Quarterly SG&A expenses decreased 1.0 billion yen quarter on quarter to total 24.4 billion yen while the SG&A expenses-to-sales ratio was 10.8%, which is just a
Slide 11: Quarterly inventory trend
Next we have the quarterly inventory trend. We see that as of the end of the third quarter inventories amounted to 152.4 billion yen. That figure is down 10.8 billion yen from what it was three months ago. The decrease was largely due to the diminished inventory of LED backlights, for which demand h
Slide 12: Capital expenditures and depreciation
This graph has a bar chart on the left for capital expenditure trends and one on the right for depreciation trends. Capital expenditures for the third quarter totaled 36.9 billion yen while depreciation and amortization expenses amounted to 23.1 billion yen. We will stick with this fiscal year’s cap
Slide 13: Net interest-bearing debt and free cash flows
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 third quarter, net interest-bearing debt, totaling 63.8 billion yen, was down 7.1 billion
Slide 14: Forecast for fiscal year ending March 2018
This is a summary of our forecast for the fiscal year ending March 2018. We expect net sales, operating income, ordinary income, and net income for this fiscal year to exceed previous record highs by a wide margin. In the fourth quarter of this fiscal year, we expect that strong ongoing demand for b
Slide 15: Forecast by business segment
This slide shows the forecast by business segment. 15
Slide 16: Shareholder returns
Next, let me explain about shareholders return. As we announced in last November, we are planning to significantly increase total dividend to 26 yen per share. The total return ratio, including share buyback we completed last year, is reaching about 30%. 16
Slide 17: Miniature ball bearings performance and growth factors
This slide shows the current performance of miniature ball bearings, our anchor product line. The ball bearing business has been showing strong growth this fiscal year and is expected to grow further at a faster pace in coming fiscal years. Let’s look at the factors behind this growth with a focus o
Slide 18: Ball bearing cost and pricing factors
Secondly, looking at cost-related factors, one-time costs associated with our initiative to boost productivity, such as production line set-up and logistics costs, are expected to be eliminated after the fourth quarter, hence profitability should significantly improve beginning next fiscal year. How
Slide 19: Five major growth engines for next fiscal year
Let’s take a quick look at next fiscal year’s five major growth engines. Firstly, as we touched on with the previous slide, ball bearings will enjoy significant growth. Secondly, for rod-ends and fasteners, the efforts we’ve made to improve productivity will pay off and steadily enhance profitabilit
Slide 20: ESG initiatives: Environmental
Let me give you an overview of our ESG initiatives. The MinebeaMitsumi Group is working hard to address ESG, or environmental, social, and governance issues, in order to sustain growth and respond to various social concerns. I would like to touch on the ESG issues we are focusing on and the specific
Slide 21: ESG initiatives: Social
Moving on to “S” for social. We are thoroughly promoting automation of production lines including introduction of robots, and rationalization including in-house equipment production. On the other hand, we are creating a flexible production system considering characteristics of the products and custo
Slide 22: Corporate slogan: Create Value through Difference
This slide is as you have seen on our press releases etc. We will continue making efforts to thoroughly refine the "Difference" that is the source of our competitiveness and strive to create new value, as our corporate slogan. 22
Slide 23: MinebeaMitsumi closing and cautionary statement
February 7, 2018 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