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

Business Results Business Results First Quarter of Fiscal Year First Quarter of Fiscal Year Ending March 31, 2013 Ending March 31, 2013 July 31, 2012 Minebea Co., Ltd.

Summary of Consolidated Business Results for 1Q Despite of yen appreciation and increased labor costs, sales and profits continued to rebound from supply chain disruptions by the Thai Floods, and were in line with our annual plan. FY ended FY ending Ch Change Mar. '12 Mar. '13 (Mil illi lions o of yen) Yo YoY QoQ 1Q 4Q 1Q 64,802 64, 802 62, 62,193 193 68,621 68,621 +5. +5.9% 9% +10.3% 10.3% Ne Net s sale les 2, 2,303 303 1,695 1, 95 3,693 3,693 +60. +60.4% 4% × 2. 2.2 Op Operating i inco come 1,870 1, 870 1,142 1, 42 3,368 3,368 +80.1% +80. 1% × 2. 2.9 Ordinary i Or inco come 668 668 6,208 6,208 1,718 1,718 × 2.6 2.6 -72.3% 72.3% * * Net in Ne inco come 1.76 1. 76 * 16.40 16 4.57 .57 × 2.6 2.6 * -72.1% 72.1% Net et i income p per er sh shar are e (yen en) * Includes one time factors such as ¥9.6 billion of the Thai Floods insurance income, ¥5.9 billion of loss on disaster and ¥1.6 billion of income tax refunds. 1Q of FY 4Q of FY 1Q of FY Fore reign e n exchang ange ra rates Mar. ’12 Mar. ’12 Mar. ’13 US$ US$ ¥8 ¥82. 2.04 04 ¥78. ¥78.27 27 ¥80. ¥80.77 77 Eur Euro ¥1 ¥118. 18.54 54 ¥103.28 ¥103. 28 ¥104.89 ¥104. 89 Thai Th ai B Baht ¥2.72 ¥2. 72 ¥2.53 ¥2. 53 ¥2. ¥2.60 60 Chinese R ese RMB ¥1 ¥12. 2.57 57 ¥12.39 ¥12. 39 ¥12. ¥12.76 76 July 31, 2012 1

Quarterly Net Sales Increased 5.9% YoY (Billions of yen) Increased 10.3% QoQ 80.0 67.9 69.8 67.5 68.6 63.9 64.8 67.6 62.2 60.0 56.7 40.0 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 2 2

Operating Income Quarterly Increased 60.4% YoY Increased X 2.2 QoQ (Billions of yen) 10.0 10% 9.1% 8.9% 8.3% 8.0 8% 6.6% 6.3 6.0 5.5% 5.4% 5.6 6.0 6% 4.2 3.6% 3.7 3.7 4.0 4% 2.7% 2.3 1.5% 2.0 2% 1.7 0.9 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 Operating income Operating margin July 31, 2012 3

Quarterly Machined Components Business Net sales Operating income Pivot assemblies (Billions of yen) (Billions of yen) Rod-ends/Fasteners Operating Income Operating Margin 30.0 8.0 30.0 Ball bearings 7.5 28.2 7.1 7.3 28.0 27.5 27.1 7.1 26.8 26.6 26.3 6.9 6.8 6.5 30% 8.7 24.4 6.3 7.4 6.6 6.6 8.0 6.3 6.6 6.3 27.3% 6.0 5.7 26.1% 5.6 24.9% 20.0 26.0% 25% 25.8% 4.8 4.9 4.9 4.9 5.2 5.3 5.7 25.2% 5.4 5.1 23.3% 23.4% 4.0 22.9% 20% 16.0 10.0 15.6 15.7 15.5 15.2 14.6 2.0 15.1 15.1 15% 13.8 0.0 10% 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 4 4

Quarterly Rotary Components Business Net sales Operating income (Billions of yen) 30.0 (Billions of yen) Operating Income 1.0 5% Operating Margin 26.7 25.6 25.3 24.9 24.3 24.3 24.1 1.0% 0.5 22.1 0.3 0.1% 20.0 19.3 0.0 0.0 0.0 0% 0.0% -2.1% -2.3% -2.1% (0.5) (0.5) (0.5) (0.5) 10.0 (0.9) (1.0) -5% -3.6% (1.1) -5.0% (1.5) (1.6) -8.3% 0.0 (2.0) -10% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 5 5

Electronic Devices & Components Business Quarterly Net sales Operating income (Billions of yen) (Billions of yen) Operating Income 2.0 20% Measuring components Operating Margin 12.1 15.4% Electronic devices 12.0 1.5 10.7 10.9 12.3% 1.5 15% 2.2 10.5 1.3 9.7 1.8 10.0 1.6 9.2 9.2 8.4% 9.2 2.5 9.0 1.0 10% 0.9 1.7 1.7 1.8 3.0 1.5 8.0 4.7% 0.5 0.4 5% 1.3% 6.0 0.1 -0.6% 10.0 0.0 0% 9.1 8.9 8.2 4.0 7.5 7.5 7.4 7.4 (0.1) (0.1) 6.7 (0.3) -1.1% -2.8% (0.5) -5% 2.0 (0.7) -8.0% (1.0) -10% 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 6 6

Other Business Quarterly Net sales Operating income Keyboards Speakers (Billions of yen) Special devices & Other (Billions of yen) Operating Income 6.0 Operating Margin 5.7 5.1 0.4 8% 4.7 7.4% 0.3 4.4 4.1 2.7 4.0 3.8 4.0 6.1% 2.6 2.6 0.2 4% 0.2 1.9 1.4 1.8 2.0 2.8 2.2% 2.2% 2.4 0.1 0.1 0.5 1.1 0.7 0.9 0.8 2.0 0.8 0.9 (0.1) (0.1) (0.1) 0.7 0.7 0.6 0.0 0% (0.1) 1.9 1.5 1.6 1.5 1.8 (0.1) -1.5% 1.5 1.6 1.5 1.5 -1.5% -2.1% -2.2% -3.6% 0.0 (0.2) -4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 7 7

Quarterly Net Income Increased X 2.6 YoY Decreased 72.3% QoQ (Billions of yen) (yen) 8.0 20.0 16.4 6.2 6.0 10.0 9.2 8.7 10.0 5.6 3.8 4.8 4.0 4.6 3.5 3.3 1.8 2.1 1.8 1.7 2.0 0.0 0.7 (8.1) 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q (10.0) (2.0) FY 3/ 11 FY 3/ 12 FY 3/ 13 (3.1) (4.0) (20.0) Net income Net income per share (right axis) July 31, 2012 8

Quarterly S.G. & A. Expenses (Billions of yen) 15.0 30% 11.7 11.7 11.5 11.4 11.1 11.0 10.9 10.9 10.6 10.0 19.2% 20% 17.6% 17.5% 17.3% 16.5% 16.5% 17.1% 16.3% 16.4% 5.0 10% 0.0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 S.G. & A. expenses S.G. & A. to sales ratio July 31, 2012 9

Quarterly Inventories (Billions of yen) 60.0 51.8 46.5 49.0 50.0 39.3 41.7 42.7 44.0 44.3 45.3 40.0 30.0 20.0 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 11 FY 3/ 12 FY 3/ 13 July 31, 2012 10

Yearly Capital Expenditure & Depreciation (Billions of yen) Capital Expenditure Depreciation & Amortization Expenses 40.0 36.0 30.0 27.3 27.3 26.4 24.9 24.6 24.0 21.1 20.2 20.8 19.6 19.6 20.0 17.0 11.1 8.9 10.0 4.7 0.0 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'13 1Q Forecast *From FY 3/09, due to change in lease accounting, assets of finance leases are included. July 31, 2012 11

Yearly Net Interest-Bearing Debt (Billions of yen) (Billions of yen) 160.0 40.0 Net interest-bearing debt Free cash flow (right axis) 128.5 127.2 30.0 115.0 114.2 120.0 110.0 109.6 103.6 96.9 23.4 20.0 22.7 80.0 17.7 10.0 12.5 3.6 40.0 0.0 (4.2) (8.8) (9.0) 0.0 (10.0) Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'13 1Q Forecast Net Interest-bearing debt = Interest-bearing debt – Cash and cash equivalents Free Cash Flow = CF from operating activities + CF from investing activities July 31, 2012 12

Forecast for Fiscal Year Ending March 31, 2013 Full year forecast unchanged FY FY e ende ded Fi Fisc scal Y Year ending Ma Mar. ' '13 Ma Mar. '1 '12 (Mil illi lions o of yen) Change Ch Fu Full ll Y Year ar 1st H t Half lf 2nd d Half Full Fu ll y year ar Yo YoY 251,358 251, 358 148, 148,100 100 163,900 163,900 312,000 312,000 +24.1% 24.1% Ne Net s sale les 8, 8,599 599 9,400 9, 13,900 13,900 23,300 23,300 × 2.7 2.7 Operating i Op inco come 6,499 6, 499 8, 8,200 12,600 12,600 20,800 20,800 × 3.2 3.2 Or Ordinary i inco come 5, 5,922 922 5, 5,600 6,900 ,900 12,500 12,500 × 2.1 2.1 Net in Ne inco come 15.63 15.63 14.97 14.97 18. 18.53 53 33. 33.50 50 × 2.1 2.1 Net et i income p per er sh shar are e (yen en) FY FY e ending Ma Mar. ' '12 Fore reign e exchan ange ge ra rate tes Ma Mar. '1 '13 Fu Full ll year As Assumption US$ US ¥79.07 ¥79. 07 ¥77. ¥77.00 00 Eur Euro ¥110.20 ¥110. 20 ¥103.00 ¥103. 00 Th Thai ai B Baht ¥2. ¥2.59 59 ¥2. ¥2.50 50 Chinese R ese RMB ¥12. ¥12.33 33 ¥12. ¥12.20 20 July 31, 2012 13 13

Jump in LED Backlight Sales Further profit contribution expected from 2Q onward LED Backlight Sales LED backlights for tablet PCs (billions of yen) • Started shipment in late April. • Ramped up production in May and June. 40.0 • Now at full production capacity. LED backlights for new model smartphones • Started shipment in late June. • Ramping up production now. 20.0 LED backlights for portable MP3 players • Started shipment in July. • Ramp up production in August and September. 0.0 FY3/ 10 FY3/ 11 FY3/ 12 FY3/ 13 E July 31, 2012 14 14

Production & Sales of Ball Bearings & Pivot Assemblies Ball Bearings Shipment Pivot Assemblies Shipment • Jumped up due to market share • Demand recovery from the Thai Floods increase and HDD market recovery after • Utilize capacity for other applications the Thai Floods. from pivot assemblies in 2Q. • Flat 2Q due to inventory adjustment, • Steady demand from automobile and but return to growth trend 3Q and fan motors beyond due to capacity recovery in the • Expansion into low-priced mass- HDD industry. produced ball bearings and mid-sized • Improve profitability by better product early next year mix such as for 7mm height HDDs. (millions) External Shipment Volume of Ball Bearings (per month) 140 130 120 110 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/ 12 FY3/ 13 E E E July 31, 2012 15 15