Business Results Business Results Third Quarter of Fiscal Year - PowerPoint PPT Presentation

Business Results Business Results Third Quarter of Fiscal Year Third Quarter of Fiscal Year Ending March 31, 2011 Ending March 31, 2011 February 2, 2011 Minebea Co., Ltd.

Summary of Consolidated Business Results for 1Q-3Q Despite currency impacts such as the stronger yen, demand recovery and cost cutting pushed net sales and profits higher FY ended FY ending Change Mar. '10 Mar. '11 1Q-3Q 1Q-3Q YoY (Millions of yen) 167,984 205,195 + 22.2% Net sales 6,564 17,969 x 2.7 Operating income Ordinary income 5,017 16,653 x 3.3 I ncome before income taxes 4,537 15,845 x 3.5 3,571 10,649 x 3.0 Net income Net income per share (yen) 9.19 27.86 x 3.0 1Q-3Q of FY 1Q-3Q of FY Foreign exchange rates Mar. ’10 Mar. ’11 US$ ¥93.91 ¥87.46 Euro ¥132.77 ¥114.11 Thai Baht ¥2.75 ¥2.77 Chinese RMB ¥13.74 ¥12.91 February 2, 2011 1

Summary of Consolidated Business Results for 3Q Currency impacts such as the stronger yen and a pose in growth of demand for some products affected results QoQ FY ending FY ended Change Mar. '11 Mar. '10 3Q 2Q 3Q YoY QoQ (Millions of yen) Net sales 58,716 69,803 67,500 + 15.0% -3.3% 4,449 6,346 5,597 + 25.8% -11.8% Operating income 3,988 5,935 5,117 + 28.3% -13.8% Ordinary income I ncome before income taxes 3,808 5,511 4,741 + 24.5% -14.0% 3,936 3,502 3,331 -15.4% -4.9% Net income Net income per share (yen) 10.16 9.16 8.71 -14.3% -4.9% 3Q of FY 2Q of FY 3Q of FY Foreign exchange rates Mar. ’10 Mar. ’11 Mar. ’11 US$ ¥89.49 ¥86.58 ¥82.99 Euro ¥132.51 ¥109.31 ¥112.50 Thai Baht ¥2.68 ¥2.70 ¥2.75 Chinese RMB ¥13.08 ¥12.73 ¥12.40 February 2, 2011 2

Net Sales Quarterly (Billions of yen) 100.0 Increased 15.0% YoY Decreased 3.3% QoQ 74.0 76.6 80.0 67.9 69.8 67.5 57.4 58.7 60.5 59.2 60.0 51.8 46.4 40.0 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 09 FY 3/ 10 FY 3/ 11 February 2, 2011 3 3

Operating Income Quarterly Increased 25.8% YoY Decreased 11.8% QoQ (Billions of yen) 9.1% 9.1% 10.0 10% 8.9% 8.6% 8.3% 7.7% 7.6% 6.9% 8.0 8% 6.6 6.3 6.0 5.6 4.7% 5.5 6.0 6% 5.1 4.5 4.4 4.0 4% 2.7 2.0 2% 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q (0.6) (2.0) -2% FY 3/ 09 FY 3/ 10 FY 3/ 11 (2.8) -1.2% (4.0) -4% -6.1% (6.0) -6% (8.0) -8% Operating income Operating margin February 2, 2011 4

Machined Components Business Quarterly * The segment results by new business segment for the fiscal year ended March 2010 is unaudited. Net sales Operating income Ball bearings Rod-ends/Fasteners Pivot assemblies Operating Income 30.0 Operating Margin 8.0 28.2 (Billions of yen) 26.8 26.6 7.3 26.7 (Billions of yen) 7.1 24.9 25.1 6.9 6.9 30% 7.4 6.3 27.3% 7.0 22.6 6.6 5.9 6.7 6.0 26.0% 6.7 25.8% 20.0 5.9 25% 4.8 4.9 4.7 4.9 25.2% 4.7 4.4 4.8 23.6% 4.9 4.0 20% 3.1 10.0 19.1% 16.0 15.5 11.8 13.4 14.1 15.0 15.1 2.0 15% 13.6% 0.0 0.0 10% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 10 FY 3/ 11 FY 3/ 10 FY 3/ 11 February 2, 2011 5 5

Rotary Components Business Quarterly * The segment results by new business segment for the fiscal year ended March 2010 is unaudited. Net sales Operating income (Billions of yen) Operating Income 1.0 5% Operating Margin (Billions of yen) 30.0 1.0% 0.4 0.5 0.4 0.3 26.7 2.0% 0.1% 25.3 1.8% 24.9 0.0 0.0 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 10 FY 3/ 11 19.4 20.3 (0.5) 20.0 0.0% 18.3 (0.7) -3.9% 16.1 (1.0) -5% (1.5) 10.0 (1.9) (2.0) -10% -11.6% (2.5) (3.0) -15% 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 10 FY 3/ 11 February 2, 2011 6

Electronic Devices & Components Business Quarterly * The segment results by new business segment for the fiscal year ended March 2010 is unaudited. Net sales Operating income Measuring components Electronic devices (Billions of yen) Operating Income 12.0 (Billions of yen) Operating Margin 10.9 19.3% 20% 10.7 2.0 10.0 1.8 9.7 9.5 16.3% 1.7 2.5 9.0 15.4% 8.8 8.5 1.5 15% 3.0 1.5 8.0 2.9 2.0 1.5 12.9% 2.2 1.3 12.3% 3.4 11.5% 1.2 6.0 1.0 10% 1.0 0.9 8.4% 9.1 8.2 4.0 7.0 6.7 6.6 6.3 5% 5.4 0.5 2.0 0.0 0% 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 10 FY 3/ 11 FY 3/ 10 FY 3/ 11 February 2, 2011 7

Other Business Quarterly * The segment results by new business segment for the fiscal year ended March 2010 is unaudited. Net sales Operating income Special devices & Other Operating Income Speakers (Billions of yen) 0.4 10% Operating Margin 0.3 Keyboards 6.0 (Billions of yen) 5.7 6.1% 2.2% 5.1 5.1 5% 5.0 1.2% 0.1 4.8 0.1 0.7% 4.7 2.2% 1.9 0.1 0.0 4.3 1.4 1.5 1.3 1.2 0.0 0% 4.0 1.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1.2 FY 3/ 10 FY 3/ 11 0.8 1.1 1.0 0.9 0.9 0.7 -5% (0.2) 0.8 -3.8% 2.0 (0.4) -10% 2.8 2.7 2.7 2.6 2.6 2.6 2.3 -14.0% -15% (0.6) 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 10 FY 3/ 11 (0.8) -20% February 2, 2011 8

Net Income Quarterly Decreased 15.4% YoY Decreased 4.9% QoQ (Billions of yen) (yen) 6.0 15 10.2 10.0 9.2 9.0 8.7 8.1 4.0 10 6.6 6.2 3.8 3.5 3.9 3.6 3.3 3.1 3.4 2.4 2.6 2.0 5 1.3 0.0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q (2.0) (5) FY 3/ 09 FY 3/ 10 FY 3/ 11 (1.7) (4.3) (4.0) (10) (6.2) (6.0) (15) (15.6) (8.0) (20) Net income Net income per share (right axis) February 2, 2011 9

S.G. & A. Expenses Quarterly (Billions of yen) 15.0 12.6 12.3 30% 11.7 11.5 11.0 10.9 10.3 10.3 10.3 10.1 9.8 10.0 20% 21.2% 19.9% 18.4% 17.6% 17.6% 17.3% 17.1% 16.5% 16.6% 16.5% 16.3% 5.0 10% 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 09 FY 3/ 10 FY 3/ 11 S.G. & A. expenses S.G. & A. to sales ratio February 2, 2011 10

Inventories Quarterly (Billions of yen) 50.0 46.4 45.4 41.7 42.7 40.9 38.7 39.3 40.0 37.0 35.9 35.1 34.7 30.0 20.0 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 3/ 09 FY 3/ 10 FY 3/ 11 February 2, 2011 11

Capital Expenditure & Depreciation Yearly (Billions of yen) 30.0 30.0 26.4 24.9 24.6 24.0 22.6 22.7 21.1 20.2 20.0 17.0 15.6 11.1 10.0 0.0 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'11 1Q-3Q Forecast Capital Expenditure Depreciation & Amortization Expenses *From FY 3/09, due to change in lease accounting, assets of finance leases are included. February 2, 2011 12

Net Interest-Bearing Debt Yearly (Billions of yen) (Billions of yen) 160.0 40.0 150.7 146.9 128.5 30.0 120.0 109.6 110.0 109.3 103.0 22.7 96.9 20.0 23.4 80.0 17.7 10.0 9.1 12.5 3.8 40.0 (3.5) 0.0 (9.6) 0.0 (10.0) Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'11 1Q-3Q Forecast Net interest-bearing debt Free cash flow (right axis) Net Interest-bearing debt = Interest-bearing debt – Cash and cash equivalents Free Cash Flow = CF from operating activities + CF from investing activities February 2, 2011 13

Forecast for Fiscal Year Ending March 31, 2011 Full year forecast unchanged Fiscal Year FY ended ending Mar. '11 Mar. '10 Full Year Full Year YoY Forecast(A) (Millions of yen) Net sales 228,446 274,000 19.9% Operating income 12,059 25,000 x 2.1 Ordinary income 10,203 23,100 x 2.3 I ncome before income taxes 9,261 21,000 x 2.3 Net income 6,662 13,500 x 2.0 Net income per share (yen) 17.20 35.32 x 2.1 FY Mar. '10 Full Year Foreign exchange rates Full year Assumption US$ ¥93.04 ¥85.85 Euro ¥131.10 ¥113.34 Thai Baht ¥2.74 ¥2.75 Chinese RMB ¥13.61 ¥12.73 (Full year assumption rates are based on actual numbers in 1Q-3Q and assumed rates in 4Q) February 2, 2011 14 14

New LED Backlight Factory Minebea Electronic Devices (Suzhou) Ltd. (Jiangsu Province, China) Specifics : Integrated manufacturing plant from molding to assembly February, 2011 Finish outer construction March, 2011 Finish interior construction, start test production Training for managers is underway at our Shanghai factory. We plan to hire production workers after Chinese New Year holidays. February 2, 2011 15 15

New Factory in Cambodia Minebea (Cambodia) Co., Ltd. Rental factory is under construction in the Phnom Penh Special Economic Zone. Plant is for assembling small and medium size motors, using parts and components supplied by Minebea plants in neighboring Thailand. April, 2011 Start small-scale production December, 2011 Complete own factory construction in the same area Started hiring production workers in Cambodia and training them at Minebea facilities in Thailand and Malaysia. February 2, 2011 16 16