Business Results First Quarter of Fiscal Year Ending March 31, 2020 MinebeaMitsumi Inc. August 2, 2019
Summary of Consolidated Business Results for 1Q *Based on IFRS Continuing slowdown in 1Q due to the US and China trade issue FY3/19 FY3/20 Change (Millions of yen) 1Q 4Q 1Q YoY QoQ 213,038 185,785 204,425 -4.0% +10.0% Net sales 14,291 6,994 3,663 -74.4% -47.6% Operating income 14,170 6,712 3,680 -74.0% -45.2% Profit before taxes Profit for the period 10,886 9,109 2,297 -78.9% -74.8% attributable to owners of the parent Earnings per share, 25.95 21.94 5.53 -78.7% -74.8% basic (yen) Includes one-time FY3/19 FY3/19 FY3/20 Foreign extraordinary impact Exchange Rates 1Q 4Q 1Q US$ ¥108.10 ¥110.28 ¥110.73 ¥129.88 ¥126.08 ¥123.56 Euro Thai Baht ¥3.42 ¥3.47 ¥3.47 Chinese RMB ¥17.02 ¥16.33 ¥16.28 August 2, 2019 2
Net Sales, Operating Income/margin *JGAAP for FY3/18 Net sales (Billions of yen) Operating income Operating margin 249.6 236.3 235.8 31.1 225.9 224.2 213.0 204.4 193.2 24.9 185.8 22.4 19.6 17.1 14.8 14.3 -4.0bn of Extraordinary expenses in 1Q (Retirement benefits/ Business 7.0 integration cost of U-Shin) 12.5% 10.6% 3.7 9.9% 8.8% 8.3% 6.7% 6.6% 1.8% 3.8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] August 2, 2019 3
1Q Actual: Differences from the Forecast as of May (Billions of yen) 216.5 204.4 Net Sales 3.7 Operating Income August 2, 2019 4
Machined Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin Ball bearings Rod-ends/Fasteners Pivot assemblies Other 27.1% 25.6% 25.9% 26.0% 24.8% 23.6% 23.5% 23.2% 22.1% 12.5 12.9 46.7 47.3 47.3 48.2 47.4 45.5 46.1 Excluding 0.7bn of PPA impact in 4Q 3.3 11.7 3.8 8.0 7.6 40.6 41.7 7.9 10.8 11.0 6.2 6.0 11.2 10.7 10.7 10.4 7.5 8.2 7.9 10.5 7.9 9.1 9.4 10.1 10.0 8.9 8.7 7.9 7.8 7.5 30.4 31.1 30.3 29.4 29.8 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 FY3/18 FY3/19 FY3/20 FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] [JGAAP] [ IFRS ] August 2, 2019 5
Electronic Devices & Components *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Motors Electronic devices Sensing devices Other Operating income Operating margin 9.2% 8.6% 7.3% 133.1 4.9% 4.6% 1.0 2.1% 9.7 0.5% 6.6% 0% 114.4 112.3 1.2 -0.7% 1.1 104.4 9.7 9.0 101.7 0.7 11.4 0.9 8.3 93.7 91.7 8.7 10.6 0.8 87.4 1.0 8.3 1.2 9.1 75.8 77.6 9.3 1.1 56.4 55.5 7.5 8.3 51.3 45.2 6.8 39.6 34.5 27.9 5.5 22.4 4.0 1.9 44.0 46.5 46.7 46.9 47.0 49.0 47.1 44.9 45.8 0.4 (0.6) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/18 FY3/19 FY3/20 FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] [JGAAP] [ IFRS ] August 2, 2019 6
Mitsumi Business *JGAAP for FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 14.8% 10.8% 100.6 7.4% 14.7% 4.1% 1.8% 7.9% 0.0% 0% 87.6 -2.6% 75.0 73.9 13.0 66.7 60.8 9.8 7.5 49.7 48.1 46.3 6.6 3.8 3.0 1.4 0.0 Extraordinary expenses/losses (1.2) approx. +5.0bn in 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/18 FY3/19 FY3/20 FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] [JGAAP] [ IFRS ] August 2, 2019 7
As a result of change of the fiscal year end, 4Q of FY12/17 consists of 4 months. U-Shin Business Both net sales and operating income until Mar. 2019 are pre-merger results. JGAAP until Mar. 2019, IFRS for FY3/20 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin 53.6 5.9% 5.7% 5.2% Including ¥4.0bn of 3.7% 3.6% 3.3% Sales of April 1 - 9 2.5% 2.6% 1.8% 40.9 38.3 39.2 39.1 37.6 1.5% 36.5 35.7 34.7 32.0 2.8 30.7 2.2 2.1 1.5 1.2 1.0 1.0 0.9 0.7 0.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Jan. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Jan. 1Q 2Q 3Q 4Q -Mar. -Mar. FY12/17 FY12/18 FY3/20 FY12/17 FY12/18 FY3/20 [JGAAP] [JGAAP] [ IFRS ] [ IFRS ] August 2, 2019 8
Profit attributable to owners of the parent / EPS *JGAAP for FY3/18 (Billions of yen) Profit for the period attributable to owners of the parent Earnings per share, basic (yen) 24.2 20.1 17.3 16.0 57.9 14.2 47.7 10.9 41.2 38.0 9.1 33.5 7.8 26.0 21.9 18.7 2.3 5.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] August 2, 2019 9
Inventory *JGAAP for FY3/18 ¥15.4bn of 176.8 consolidation of U-Shin (Billions of yen) 174.4 169.1 163.2 156.8 152.4 150.1 141.4 134.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/18 FY3/19 FY3/20 [JGAAP] [ IFRS ] August 2, 2019 10
Net interest bearing debt / Free cash flow *JGAAP for FY3/18 * Net interest-bearing debt Free cash flow Acquisition of U-Shin shares ¥25.1bn (Billions of yen) Net interest-bearing debt of U-Shin ¥26.4bn Distribution payment of E-Ship ¥4.3bn Dividend payment ¥5.8bn 97.5 91.5 70.9 55.0 52.5 46.5 37.2 36.3 53.7 21.7 (1.1) (8.9) FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/20 1Q Forecast *Net interest-bearing debts :”Bonds and borrowings” – (“Cash and cash equivalents” ＋ Time deposit more than 3 months) [JGAAP] [ IFRS ] August 2, 2019 11
Forecast for Fiscal Year Ending March 31, 2020 *Based on IFRS Keep forecast unchanged [ IFRS ] FY3/19 FY3/20 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY 884,723 496,500 533,500 1,030,000 +16.4% Net sales 72,033 27,000 50,000 77,000 +6.9% Operating income 71,321 26,500 49,500 76,000 +6.6% Profit before taxes Profit for the period 60,142 21,400 40,600 62,000 +3.1% attributable to owners of the parent Earnings per share, 143.90 51.55 97.80 149.35 +3.8% basic (yen) FY3/19 FY3/20 Foreign Exchange Rates Full Year Assumptions ¥110.67 ¥110.00 US$ ¥128.75 ¥125.00 Euro ¥3.42 ¥3.45 Thai Baht Chinese RMB ¥16.52 ¥16.50 August 2, 2019 12
Forecast for Business Segment *Based on IFRS [ IFRS ] FY3/19 FY3/20 (Millions of yen) Full Year 1st Half 2nd Half Full Year YoY 884,723 496,500 533,500 1,030,000 +16.4% Net sales Machined components 188,324 93,400 96,600 190,000 +0.9% 387,293 189,700 214,300 404,000 +4.3% Electronic devices and components 308,423 140,900 149,100 290,000 -6.0% Mitsumi business - 72,000 73,000 145,000 - U-Shin business Other 683 500 500 1,000 +46.4% 72,033 27,000 50,000 77,000 +6.9% Operating income Machined components 47,750 24,500 26,500 51,000 +6.8% 16,922 5,300 15,700 21,000 +24.1% Electronic devices and components 22,282 5,900 9,100 15,000 -32.7% Mitsumi business - 3,100 4,900 8,000 - U-Shin business △ 386 △ 1,000 △ 1,000 △ 2,000 Other X5.2 Adjustment △ 14,535 △ 10,800 △ 5,200 △ 16,000 +10.1% August 2, 2019 13
Today’s highlights Overall: Macroeconomic slowdown will continue longer than initially expected. However, expecting huge recovery from 2Q onwards mainly in Electronic devices and components/Mitsumi business. Machined components: Current ball bearing sales are weaker than projected while sales in the aircraft market remain steady. Electronic devices and components/Mitsumi business: Despite the impact from US-China trade issue, a diversified portfolio (by market and by product) sustains performance as well as contributes to risk diversification. U-Shin business: Affected by slowdown in worldwide automobile market especially in China. 2019/8/2 14
Other topics Steady progress in measures to enhance corporate value 1 Organic growth Ball bearing • Automobile remain solid, but fan motor slowing down. • Medium- to long-term growth outlook remain unchanged for automobile, data center, high-end home appliance (HA), labor saving & automation (medical robots etc.) • Expect growth in HA towards next fiscal year driven by energy saving regulations in China. Stealth product going well 2 Various M&As of all sizes under consideration 3 No progress on share buy back 2019/8/2 15
Reference August 2, 2019 16
Machined Components *JGAAP until FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Ball bearings Rod-ends/Fasteners Pivot assemblies Other Operating income Operating margin 26.8% 25.4% 190.0 25.0% 24.9% 188.3 24.2% 176.4 51.0 26.0 29.5 7.1 Excluding 0.7bn of 163.8 47.8 PPA impact in 4Q 156.3 31.5 43.4 34.3 39.0 40.9 32.6 37.6 39.1 42.7 31.9 32.1 29.6 125.0 121.2 105.9 97.4 94.1 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20E FY3/16 FY3/17 FY3/18 FY3/19 FY3/20E [ IFRS ] [ IFRS ] [JGAAP] [JGAAP] August 2, 2019 17
Electronic Devices & Components *JGAAP until FY3/18 Net sales (Billions of yen) Operating income (Billions of yen) Operating income Operating margin Motors Electronic devices Sensing devices Other 451.5 445.5 441.6 3.8 3.6 4.0 35.7 35.9 404.0 38.3 387.3 4.0 4.2 39.0 36.4 6.9% 5.2% 5.0% 5.0% 4.4% 31.2 227.8 245.0 161.0 241.0 158.5 22.3 21.9 21.0 16.9 200.0 188.1 184.2 161.0 158.3 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20E FY3/16 FY3/17 FY3/18 FY3/19 FY3/20E [ IFRS ] [ IFRS ] [JGAAP] [JGAAP] August 2, 2019 18
Recommend
More recommend
