Business Results Fiscal Year Ended March 31, 2018 MinebeaMitsumi - PowerPoint PPT Presentation

Business Results Fiscal Year Ended March 31, 2018 MinebeaMitsumi Inc. May 8, 2018

Today’s Agenda 1. Financial Results 2. Policy and Strategy 2 May 8, 2018

Financial Results Katsuhiko Yoshida Managing Executive Officer 3 May 8, 2018

Summary of Consolidated Business Results Net sales as well as operating, ordinary, and net income totals for full year hit record highs FY3/18 Forecast FY3/17 FY3/18 Change (February 2018 Forecast) (Millions of yen) Full Year Full Year YoY Full Year VS. Forecast 638,926 879,139 +37.6% 850,000 103.4% Net sales 49,015 79,162 +61.5% 80,000 99.0% Operating income 48,393 78,038 +61.3% 79,500 98.2% Ordinary income Income attributable to 41,146 59,382 +44.3% 62,000 95.8% owners of the parent Net income per share 107.33 141.14 +31.5% 147.37 95.8% (yen) FY3/17 FY3/18 Foreign Exchange Rates Full Year Full Year US$ ¥108.76 ¥111.19 Euro ¥119.34 ¥129.36 Thai Baht ¥3.09 ¥3.35 Chinese RMB ¥16.18 ¥16.70 4 May 8, 2018

Summary of Consolidated Business Results for 4Q Net sales hit 4Q record highs FY3/18 Change FY3/17 (Millions of yen) 4Q 3Q 4Q YoY QoQ 196,418 225,900 224,211 +14.1% -0.7% Net sales 14,300 22,437 14,773 +3.3% -34.2% Operating income 13,621 22,353 13,522 -0.7% -39.5% Ordinary income Income attributable to 16,233 17,278 7,827 -51.8% -54.7% owners of the parent Net income per share 39.65 41.22 18.67 -52.9% -54.7% (yen) FY3/17 FY3/18 FY3/18 Foreign Exchange Rates 4Q 3Q 4Q US$ ¥114.29 ¥112.65 ¥109.72 Euro ¥121.14 ¥132.47 ¥133.77 ¥3.24 ¥3.41 ¥3.45 Thai Baht Chinese RMB ¥16.54 ¥16.95 ¥17.16 5 May 8, 2018

Net Sales Yearly (Billions of yen) 940.0 879.1 638.9 609.8 500.7 371.5 282.4 269.1 251.4 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 Forecast *JGAAP until FY3/18, IFRS for FY3/19 6 May 8, 2018

Net Sales Quarterly 235.8 (Billions of yen) 225.9 224.2 196.4 193.2 178.7 168.2 167.4 154.8 135.6 127.4 120.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 7 May 8, 2018

Operating Income Yearly (Billions of yen) Operating income Operating margin 83.0 79.2 60.1 51.4 49.0 8.7% 12.0% 8.2% 9.0% 8.8% 32.2 8.4% 7.7% 3.6% 22.2 3.4% 10.2 8.6 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 Forecast *JGAAP until FY3/18, IFRS for FY3/19 8 May 8, 2018

Operating Income Quarterly (Billions of yen) Operating income Operating margin 24.9 22.4 17.1 16.1 15.5 14.9 14.8 14.3 12.5 11.6 10.6% 8.5 9.8% 9.9% 9.6% 8.9% 7.0 8.8% 8.7% 7.5% 7.3% 6.6% 6.3% 5.8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 9 May 8, 2018

Machined Components Yearly Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating Margin Ball bearings Rod-ends/Fasteners Pivot assemblies Other Record High! 25.8% 25.5% 190.0 25.0% 24.9% 24.2% 24.0% 176.4 29.0 7.1 Excluding ¥0.7bn of 49.0 163.8 PPA impact in Q4 156.3 155.8 43.4 31.5 34.3 140.0 40.9 37.0 39.7 32.6 39.1 37.9 42.7 35.0 31.9 33.6 32.1 29.6 Record High! 30.4 27.5 124.0 105.9 97.4 94.1 87.5 77.4 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E *JGAAP until FY3/18, IFRS for FY3/19 10 May 8, 2018

Machined Components Quarterly Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating Margin Ball bearings Rod-ends/Fasteners Pivot assemblies Other Record High! 26.5% 26.0% 25.3% 25.6% 25.9% 24.5% 24.7% 24.5% 24.3% 24.2% 23.6% 22.1% 46.7 47.3 Excluding ¥0.7bn of PPA impact in Q4 3.3 3.8 41.0 42.3 41.3 40.6 41.7 11.2 10.8 11.0 40.8 39.8 39.2 10.0 10.2 10.6 10.4 37.3 38.5 7.5 10.1 10.4 8.2 10.1 7.9 9.5 8.4 9.5 10.5 8.3 7.9 8.9 7.6 7.6 9.1 8.7 7.9 8.7 7.9 7.8 7.7 7.5 8.0 8.1 8.2 7.8 8.0 6.8 7.1 24.6 24.8 24.0 24.0 23.6 22.3 23.1 25.2 25.2 26.0 26.8 27.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 FY3/16 FY3/17 FY3/18 11 May 8, 2018

Electronic Devices & Components Yearly Net sales (Billions of yen) Operating income (Billions of yen) Motors Operating income Operating Margin Electronic devices 451.5 445.5 441.6 3.8 3.6 Sensing devices 4.0 35.7 35.9 Other 38.3 400.0 4.0 36.0 344.7 5.2 13.4 8.9% 6.9% 227.8 6.3% 245.0 5.0% 5.0% 160.0 241.0 4.2% 31.2 30.7 230.5 170.9 7.4 10.7 25.0 22.3 21.9 72.7 200.0 184.2 9.6 161.0 158.3 155.3 139.7 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E *JGAAP until FY3/18, IFRS for FY3/19 12 May 8, 2018

Electronic Devices & Components Quarterly Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating Margin 137.8 133.1 0.7 128.7 9.4 1.0 125.8 8.6% 1.2 9.7 0.7 7.3% 7.3% 8.5 6.6% 117.4 6.5% 9.7 114.6 5.4% 5.5% 5.5% 4.9% 112.3 4.9% 0.9 1.3 8.9 1.1 2.5% 104.4 12.3 101.7 9.0 0.7 0.9 95.7 8.3 8.7 1.2 11.4 0.5% 86.3 8.6 0.7 80.9 75.8 87.3 8.2 0.7 73.3 80.9 9.4 8.6 55.5 68.9 58.9 51.3 45.2 7.6 7.5 46.6 37.8 6.8 6.7 32.2 6.4 5.6 5.6 5.5 39.7 42.0 40.2 39.1 39.4 38.8 38.0 42.1 44.0 46.5 46.7 46.9 2.4 0.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 FY3/16 FY3/17 FY3/18 13 May 8, 2018

Both net sales and operating income in and before 3Q FY3/17 are Mitsumi Business pre-merger results. 4Q FY3/17 results are based on managerial Yearly accounting for the three months. Net sales (Billions of yen) Operating income (Billions of yen) Sales increase due to contract change Operating income Operating Margin 349.0 8.6% 7.4% 0.4% 0.6% 250.6 0% 24.2 26.0 -2.8% 21.5 178.0 163.6 -5.9% 157.4 153.0 *Excluding ¥12.3bn of inventory write-down in 3Q 226.4 1.8 1.0 0.6 -4.6 -10.6 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19E *JGAAP until FY3/18, IFRS for FY3/19 14 May 8, 2018

Both net sales and operating income in and before 3Q FY3/17 are Mitsumi Business pre-merger results. 4Q FY3/17 results are based on managerial Quarterly accounting for the three months. Net sales (Billions of yen) Operating income (Billions of yen) Sales increase due to contract change Operating income Operating Margin 14.7% 10.8% 7.1% 7.9% 1.8% 2.3% -3.4% 75.0 0% 9.8 66.7 -5.0% -5.0% -5.1% -10.7% 60.8 24.2 6.6 -19.4% 52.9 49.5 3.8 3.7 48.1 47.8 * 3.0 44.6 1.4 1.1 40.4 39.5 34.2 32.6 *Excluding ¥12.3bn of inventory write-down in 3Q -1.7 -1.5 -2.0 -2.0 50.8 -3.5 -9.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 FY3/16 FY3/17 FY3/18 15 May 8, 2018

Net Income Yearly Net income hit record high (Billions of yen) Income attributable to owners of the parent 65.0 Net income per share (yen) 59.4 41.1 39.9 36.4 155.0 141.1 20.9 107.3 106.7 97.3 12.5 55.9 5.9 1.8 32.6 15.6 4.8 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 Forecast *JGAAP until FY3/18, IFRS for FY3/19 16 May 8, 2018

Net Income Quarterly (Billions of yen) Income attributable to owners of the parent Net income per share (yen) 20.1 17.3 16.2 14.2 12.2 11.8 47.7 10.1 9.6 41.2 39.7 7.8 7.7 6.8 33.5 32.4 31.6 26.9 25.5 3.2 20.6 18.7 18.2 8.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 17 May 8, 2018

S.G. & A. Expenses Quarterly (Billions of yen) S.G. & A. expenses S.G. & A. to sales ratio 25.3 25.0 24.4 23.8 23.3 18.7 18.3 18.4 18.1 17.4 17.4 17.0 14.5% 13.3% 13.3% 12.1% 11.9% 12.3% 11.1% 10.9% 10.8% 10.7% 10.3% 10.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 18 May 8, 2018

Inventories Quarterly (Billions of yen) 163.2 152.4 150.1 134.0 126.7 120.4 118.1 103.0 96.7 96.4 94.5 87.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/16 FY3/17 FY3/18 19 May 8, 2018

Capital Expenditure & Depreciation Yearly Capital Expenditure Depreciation & Amortization Expenses (Billions of yen) 60.0 54.2 43.9 40.0 37.6 34.8 31.8 31.6 28.8 28.2 23.7 20.7 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 Forecast *JGAAP until FY3/18, IFRS for FY3/19 20 May 8, 2018

Net Interest-Bearing Debt/Free Cash Flow Yearly Net interest-bearing debt Free cash flow (Billions of yen) 109.9 97.5 93.1 70.9 52.5 49.4 37.2 36.3 14.0 24.5 24.2 -1.1 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 Forecast *JGAAP until FY3/18, IFRS for FY3/19 21 May 8, 2018