MINEBEA Financial Review Tsugio Yamamoto President and Representative Director November 10, 2000 0
FY 2 2000 H 000 Half Y Year ar Consolid idated F Financia ial H l Highlights Plan an an and R Result \ mill llio ions / /$thousands ($1= $1= \ 106. 106.84) Plan Result Achiev evem emen ent Net S Sales ¥139, 139,000 ¥14 142, 2,124 124 2. 2.25% 25% ($1, $1,301, 301,011 ) ($1, $1,33 330, 0,251 251 ) Operat ating I Income me ¥15,000 ¥17,177 177 14.51% 14. 51% ($140 $140,397 97 ) ($16 $160, 0,773 773 ) Ordinary I Income me ¥10,000 ¥12,987 987 29. 29.87% 87% ($93, $93,598 ) ($12 $121, 1,556 556 ) Net I Income me ¥6,000 00 ¥7,084 084 18.07% 18. 07% ($56, $56,159 ) ($66 $66,305 305 ) Minebea's performance for the first half of the fiscal year ended on September 30, 2000 is shown above. Net sales exceeded the projection by 2.25%, while operating income topped the projection by 14.51%, ordinary income soared 29.87% above the projection, and net income rose as high as 18.07% above the target. 1
Operating Margin % 14.00 Plan Results 13.00 12.00 11.00 10.00 9.00 8.00 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 The ratio of operating income to net sales improved by 1.2% to 12.1% compared with 10.9% in the preceding year. 2
Perform ormance B e By P Product C Category ry Mill illio ions o of Yen Se Sep-99 99 Sep-00 00 Machiner ery Net et S Sales 64,515 60, 60,953 → C Compon onen ents Opera erating M Margin *17.2% 19 19.7% → Elec ectron onic D Device ces Net et S Sales 73,324 75,472 75, → a and C Compon onen ents Opera erating M Margin *5 *5.6% 6. 6.2% 2% → Cons nsume umer and and Net S Sales 5,325 325 5,699 5, → Oth Others Op Operating M Marg rgin *7.5% 9.3% 9. 3% → Total Net S Sales 143,164 164 142, 142,124 → Operating Mar Margin *10. 10.9% 9% 12 12.1% → * R Result i in F Fiscal al Y Year E Ended 31 Mar 31 March 2000 h 2000 <Machinery Components> Net sales decreased by 3.562 billion Yen compared with the same period of the previous year. This is mainly because the high value of the yen decreased overseas net sales when converted into Japanese currency. Increased production of bearings favorably affected operating income, and the ratio of operating income to net sales rose 2.5% to 19.7% over the average ratio of operating income to net sales recorded in the preceding year. <Electronic Devices and Components> Net sales, though negatively affected by the appreciation of the yen, increased by 2.148 billion Yen compared with the same period of the previous year. In addition, the ratio of operating income to net sales improved 0.6% over the average ratio of operating income to net sales during the preceding year The reasons for the improved ratio of operating income to net sales for electronic devices and components are that the Spindle Motor Division has turned profitable since June, that the profit ratio of electronic devices such as FDD heads improved, and that we have managed to maintain the average unit selling prices of such products as keyboards and speakers. 3
Net Sales by Region Millions of Yen 60,000 57,029 56,918 Sep-99 Sep-00 50,000 38,883 40,181 40,000 30,396 28,106 30,000 20,000 16,967 16,808 10,000 Japan Asia North/South America Europe <Southeast Asia> Net sales in this region went up by 1.298 billion Yen from the level in the corresponding period of the previous year. Also, the ratio of operating income to net sales rose more than 2% from the level posted in the same period of the preceding year. We anticipate production shift by our customers to Southeast Asia will continue in the future. Since we have the largest production base in the center of the Southeast Asian market including Thailand, our competitive edge will be enhanced in proportion to an increase of sales in this region <Japan> Because many of Minebea's customers in Japan shifted their production to overseas, sales in Japan from these customers declined. However, through sales efforts Minebea achieved increased net sales in Japan compared with the same period of the preceding year. The ratio of operating income to net sales in Japan during the first half of the current fiscal year was below 10% at 9.98%. Minebea's ratio of operating income to net sales is somewhere around 10% in Japan. 4
Operating Income Ratio by Region % 30.00 Sep-99 Sep-00 25.39 25.00 23.36 20.00 15.00 10.08 9.98 10.00 4.36 5.00 3.54 3.24 1.97 0.00 Japan Asia North/South America Europe <United States> Net sales declined by about 2.2 billion Yen from the level during the same period of the preceding year, and the ratio of operating income to net sales came down to about 2%. This is mainly attributable to the low demand from the aerospace industry and the high value of the yen that decreased the amount of net sales when converted into yen. Demand from the aerospace industry is gradually picking up since August this year. <Europe> Affected by the appreciation of the yen, net sales decreased by 0.159 billion Yen from the level in the corresponding period of the preceding year. However, net sales in the local currency increased. Our business is growing especially in Eastern Europe. The latest data show that sales in Eastern Europe account for about 15% of the total sales in Europe. 5
Sales Share of Europe - Results of Sep-00 - Germany Netherlands 18% 18% England 11% Others 21% Italy France Eastern 9% 8% Europe 15% 6
FY 2 2000 000 Consolida Con olidated F ed Financia ial Hig l Highlig lights \ milli illions/$thousands ds ($1= $1= \ 10 106. 6.84) 84) 1st H 1st Half 2nd H 2n Half Revi Re vise sed Orig igin inal (R (Result) (P (Plan) Pl Plan Plan Pl Net Sa Sales 142, 42,124 124 151,000 151 000 293, 29 3,124 124 290,000 290, ($1, $1,330, 30,250 250 ) ($1, $1,413 413,328 328 ) ($2, $2,743 743,579 579 ) ($2,714, 714,339 ) Operat ating I Income me 17, 17,177 177 18 18,000 000 35,177 35 177 33,000 33, ($160, 60,773 773 ) ($168 $168,476 476 ) ($32 $329, 9,249 249 ) ($308, $308,873 ) Ordinary I Income me 12,987 12, 987 14 14,000 000 26,987 26 987 24,000 24, ($121, 21,556 556 ) ($131 $131,037 037 ) ($25 $252, 2,593 593 ) ($224, $224,635 ) Net I Income me 7,084 7, 084 8,000 000 15 15,084 084 15, 15,000 ($66, 66,305 305 ) ($74 $74,878 878 ) ($14 $141, 1,183 183 ) ($140, $140,397 ) Minebea was able to achieve the first-half results well above its projections. However, for the second-half projections, the Company presently sees no need for upward adjustments and will maintain the figures as originally planned. Net income, however, is projected to be less by 1.0 billion Yen than what was announced at the presentation of the business results for the previous business term. This is because Minebea estimates an expense of about 1.0 billion Yen in connection with the termination of its exclusive distributorship agreement with Keiaisha NMB Co., Ltd. effective the end of December 2000 that was made public on June 30, 2000. 7
Reduction of Interest-bearing Debt Millions of Ye n 200,000 192,710 188,900 181,425 180,000 168,278 162,999 160,536 160,000 140,000 120,000 100,000 Mar-00 Sep-00 Mar-01 Gross Amount Net Amount During the first half of the current year, increased production of bearings and other products raised inventories by about 5.0 Yen billion over the level at the end of the preceding term. In addition, capital investment was implemented much earlier than planned. Despite these factors, Minebea was able to reduce the net balance of its interest-bearing debt to 162.999 billion Yen at the end of this September, down 5.279 billion Yen from the level at the end of the previous year. 8
Outline of e of I Incen centive Wa e Warra rrant Pu Purp rpos ose : e : To raise t To ra e the s e sense of e of commi commitment of of mi midd ddle ma managemen ment memb members ers t to a achiev eve e the t e three- ree-year ma managemen ment pl plan. Grante Gr antees : : Abo bout 9 ut 980 80 dir directors and m s and middle ddle managemen man ment memb members ers w worl rldwide. e. Exercise se P Pric ice : e : ¥ 1, 1,35 350 Exercise se P Period : : May 2 ay 20, 20 2004 04 ～ Se Septe ptembe ber 30, 30, 2000 Number Nu er of of s shares es i issued ed by ex exer erci cise of of w warra rrants : : 2,96 2, 960 tho 0 thousan sand shar shares (0. (0.7% o of issue issued Minebea introduced an incentive system based on stock option plan on November 1, 2000. Minebea has decided to grant stock options to its assistant section managers and those members in higher positions as well as officers and directors, and also to selected officers and directors and certain executive members of Minebea's overseas subsidiaries. The total number of optionees is expected to be about 980. Minebea has thus shaped a wide-ranging stock option plan. This is because Minebea considers it indispensable to raise the sense of commitment of all these middle management members in order to endeavor toward the fulfillment of the three-year management plan on an across-the-board basis. 9
Recommend
More recommend
