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

Business Results

First Quarter of Fiscal Year Ending March 31, 2011

Business Results

First Quarter of Fiscal Year Ending March 31, 2011

July 30, 2010

Minebea Co., Ltd.

July 30, 2010 1

Summary of Consolidated Business Results for 1Q

Net sales and profits increased quarter on quarter as steady recovery continues

FY ending

• Mar. '11

1Q 4Q 1Q

YoY QoQ Net sales

51,837 60,461 67,891 + 31.0% + 12.3%

Operating income

• 605

5,494 6,024

• +

+ 9.6%

Ordinary income

• 1,101

5,185 5,600

• +

+ 8.0%

I ncome before income taxes

• 1,370

4,724 5,592

• +

+ 18.4%

Net income

• 1,680

3,090 3,815

• +

+ 23.5%

• 4.32

8.06 9.99

• +

+ 23.9%

1Q of FY

• Mar. ’10

4Q of FY

• Mar. ’10

1Q of FY

• Mar. ’11

¥97.50 ¥90.43 ¥92.81 ¥131.56 ¥126.07 ¥120.53 ¥2.78 ¥2.73 ¥2.86 ¥14.28 ¥13.24 ¥13.60 Change Thai Baht Chinese RMB FY ended Mar. '10 Net income per share (yen) Foreign exchange rates US$ Euro (Millions of yen)

July 30, 2010 2 2

Net Sales

Quarterly

Increased 31.0% YoY Increased 12.3% QoQ

74.0 76.6 59.2 46.4 51.8 57.4 58.7 60.5 67.9

0.0 20.0 40.0 60.0 80.0 100.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 09 FY 3/ 10 FY 3/ 11 (Billions of yen)

July 30, 2010 3

Operating Income

Quarterly

Turned positive YoY Increased 9.6% QoQ

6.0 5.5 4.4 2.7 (0.6) 5.1 6.6 4.5 (2.8) 8.9% 9.1% 7.6% 4.7%

• 1.2%
• 6.1%

7.7% 8.6% 6.9%

(8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 09 FY 3/ 10 FY 3/ 11

• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10%

Operating income Operating margin

(Billions of yen)

July 30, 2010 4

New Business Segments

Following amendments in the Japanese Accounting Standards, we have changed

• ur Business Segment as follows starting the fiscal year ending March 31, 2011.

Old business segments (for FY ended Mar. '10)

Adjustment Other machined components HDD spindle motors Information motors Keyboards Electronic devices Speakers Rod-ends Pivot assemblies Ball bearings Rod-ends/Fasteners Pivot assemblies Other Measuring components Electronic devices Measuring components

New business segments (for FY ending Mar. '11)

HDD spindle motors Speakers Special devices & Other Rotary components Keyboards Electronic devices & components Other Machined components Fasteners Special devices Other former Panasonic's Information Equipment Motors Machined components Ball bearings Electronic devices & components Information motors / Other motors

July 30, 2010 5 5

Machined Components Business

Quarterly

Net sales Operating income

3.1 4.7 5.9 6.9 7.1 13.6% 19.1% 23.6% 25.8% 25.2%

0.0 2.0 4.0 6.0 8.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 10% 15% 20% 25% 30%

Operating Income Operating Margin

(Billions of yen) 11.8 13.4 14.1 15.0 16.0 4.7 4.8 4.4 4.8 4.9 7.4 7.0 6.7 6.7 5.9

0.0 10.0 20.0 30.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 Pivot assemblies Rod-ends/Fasteners Ball bearings

22.6 24.9 25.1 26.7 28.2 (Billions of yen)

* The segment results by new business segment for the fiscal year ended March 2010 are unaudited.

July 30, 2010 6

Rotary Components Business

Quarterly

Net sales Operating income

0.4 0.4 0.0 (0.7) (1.9)

• 11.6%

0.0% 1.8% 2.0%

• 3.9%

(3.0) (2.5) (2.0) (1.5) (1.0) (0.5) 0.0 0.5 1.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11

• 15%
• 10%
• 5%

0% 5%

Operating Income Operating Margin

(Billions of yen) 4.0 4.9 5.6 6.1 5.2 13.4 19.7 14.2 13.9 12.1

0.0 10.0 20.0 30.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 Information motors / Other motors HDD spindle motors

19.4 20.3 16.1 18.3 24.9 (Billions of yen)

* The segment results by new business segment for the fiscal year ended March 2010 are unaudited.

July 30, 2010 7

Electronic Devices & Components Business Quarterly

Net sales Operating income

1.7 1.5 1.0 1.2 1.5 11.5% 15.4% 12.9% 16.3% 19.3%

0.0 0.5 1.0 1.5 2.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 0% 5% 10% 15% 20%

Operating Income Operating Margin

(Billions of yen) 7.0 5.4 6.6 6.7 6.3 3.0 2.2 2.0 2.9 3.4

0.0 2.0 4.0 6.0 8.0 10.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 Measuring components Electronic devices

8.5 9.0 8.8 9.5 9.7 (Billions of yen)

* The segment results by new business segment for the fiscal year ended March 2010 are unaudited.

July 30, 2010 8

Other Business

Quarterly

Net sales Operating income

1.2 1.2 1.4 1.3 1.5 2.8 2.7 2.6 2.3 2.6 0.8 0.9 1.0 0.9 0.8

0.0 1.0 2.0 3.0 4.0 5.0 6.0 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11 Special devices & Other Speakers Keyboards

5.1 5.0 4.3 4.8 5.1 (Billions of yen)

(0.6) (0.2) 0.0 0.1 0.1 1.2% 2.2% 0.7%

• 3.8%
• 14.0%

(1.0) (0.5) 0.0 0.5 1Q 2Q 3Q 4Q 1Q FY 3/ 10 FY 3/ 11

• 15%
• 10%
• 5%

0% 5%

Operating Income Operating Margin

(Billions of yen)

* The segment results by new business segment for the fiscal year ended March 2010 are unaudited.

July 30, 2010 9

Net Income

Quarterly

Turned positive YoY Increased 23.5% QoQ

3.8 3.1 3.9 1.3 3.6 2.4 2.6 (1.7) (6.2) 10.0 8.1 10.2 3.4 6.2 9.0 6.6 (4.3) (15.6)

(8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 09 FY 3/ 10 FY 3/ 11 (20) (15) (10) (5) 5 10 15

Net income Net income per share (right axis)

(Billions of yen) (yen)

July 30, 2010 10

S.G. & A. Expenses

Quarterly

12.3 12.6 10.9 11.7 10.3 10.3 10.1 10.3 9.8 16.6% 16.5% 18.4% 21.2% 19.9% 17.6% 17.6% 17.1% 17.3%

0.0 5.0 10.0 15.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 09 FY 3/ 10 FY 3/ 11 0% 5% 10% 15% 20%

S.G. & A. expenses S.G. & A. to sales ratio

(Billions of yen)

July 30, 2010 11

Inventories

Quarterly

46.4 45.4 40.9 38.7 39.3 35.1 37.0 34.7 35.9

0.0 10.0 20.0 30.0 40.0 50.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 3/ 09 FY 3/ 10 FY 3/ 11

(Billions of yen)

July 30, 2010 12

Capital Expenditure & Depreciation

Yearly

*From FY 3/09, due to change in lease accounting, assets of finance leases are included.

26.4 24.0 21.1 5.3 17.0 24.9 20.2 11.1 5.8 30.0 22.6 24.6

0.0 10.0 20.0 30.0

Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 1Q Mar.'11 Forecast

Capital Expenditure Depreciation & Amortization Expenses

(Billions of yen)

July 30, 2010 13

Net Interest-Bearing Debt

Net Interest-bearing debt = Interest-bearing debt – Cash and cash equivalents Free Cash Flow = CF from operating activities + CF from investing activities

Yearly

146.9 109.6 110.0 96.9 99.9 99.0 128.5 150.7 3.8 1.0 (0.8) 17.7 12.5 22.7 23.4 9.1 (40.0) 0.0 40.0 80.0 120.0 160.0

Mar.'05 Mar.'06 Mar.'07 Mar.'08 Mar.'09 Mar.'10 Mar.'11 1Q Mar.'11 Forecast

(10.0) 0.0 10.0 20.0 30.0 40.0

Net interest-bearing debt Free cash flow (right axis)

(Billions of yen) (Billions of yen)

July 30, 2010 14 14

Forecast for Fiscal Year Ending March 31, 2011

Initial forecast unchanged

FY ended

• Mar. '10

Full year 1Q 1st Half Forecast 1Q/ 1H Forecast 2nd Half Forecast Full year Forecast YoY Net sales

228,446 67,891 129,000 53% 136,000 265,000

+16.0%

Operating income

12,059 6,024 10,900 55% 12,600 23,500

+94.9%

Ordinary income

10,203 5,600 9,900 57% 11,600 21,500

2.1x

I ncome before income taxes

9,261 5,592 7,800 72% 11,500 19,300

2.1x

Net income

6,662 3,815 4,700 81% 7,800 12,500

+87.6%

17.20 9.99 12.31 81% 20.42 32.73

+90.3%

• Mar. '10

Full year FY ending

• Mar. '11

Assumption ¥93.04 ¥90.00 ¥131.10 ¥132.00 ¥2.74 ¥2.65 ¥13.61 ¥13.00 Fiscal Year ending Mar. '11 Thai Baht (Millions of yen) Net income per share (yen) Chinese RMB Foreign exchange rates US$ Euro

July 30, 2010 15 15

Construction of the new ball bearing factory

Total Investment : 18 billion yen Production capacity : 40 million units per month (Minebea total capacity will be 260 million units per month) Location : Bang Pa-in, Thailand Building area : 20,500 square meters (newly expanded area) Specifics : Integrated manufacturing plant extended from the existing cutting and press plant in Bang Pa-in Energy saving facility utilizing the same technology as the cutting and press plant in Bang Pa-in (energy reduction target: 40% less than existing factory) Power supply channel separate from existing facilities to mitigate risk Expected operation : Autumn 2011 New factory location

July 30, 2010 16 16

Construction of the new pivot assembly factory

Total investment : 15 billion yen Production capacity : 15 million units per month (Minebea total capacity will be 55 million units per month) Location : Lop Buri, Thailand Building area : 18,430 square meters Specifics : Integrated manufacturing plant from machining to assembly Expected operation : Summer 2011 New factory location

July 30, 2010 17 17

Improving utilization rate of Rod-ends factories

Karuizawa new rod-ends plant : completed in March 2009 Fujisawa new aircraft part plant (surface treatment) : completed in March 2010 Significant recovery of commercial aircraft demand : Airbus received 255 aircraft orders and Boeing received 193 aircraft orders during the Farnborough International Airshow in July. At Minebea, return to full capacity production level is expected to be earlier than former estimate of 2011 year-end.

Karuizawa new rod-ends plant

Boeing + Airbus commercial aircraft orders

1000 2000 3000 2003 2004 2005 2006 2007 2008 2009 1-6 2010 Airbus Orders Boeing Orders Orders received in Farnborough in July (Source: Boeing, Airbus)

July 30, 2010 18 18

Establishing new LED backlight factories

Minebea total capacity will expand to 30 million units per month

(By Google Map)

Location : Suzhou, China Production capacity : 10 million units per month Specifics : Integrated manufacturing plant from molding to assembly Expected operation : February, 2011 Location : Xiamen, China Production capacity : 2 million units per month Specifics : assembly plant Expected operation : October, 2010

July 30, 2010

Any statements in the presentation which are not historical fact are future projections made based on certain assumptions and executive judgment drawn from currently available information. Please note that actual performance may vary significantly from any particular projection due to various factors. Factors affecting our actual performance include: (i) changes in economic conditions or demand trends around Minebea; (ii) fluctuation

• f foreign exchange rates or interest rates; and (iii) our ability to continue R&D, manufacturing and marketing in a timely manner in the

electronics business sector, where technological innovations are rapid and new products are launched continuously. However, this is not a complete list of the factors affecting actual performance. All the information in this document is the property of Minebea Co., Ltd. All parties are prohibited for whatever purpose to copy, modify, reproduce, transmit, etc. this information regardless of ways and means without prior written permission of Minebea Co., Ltd..

Minebea Co., Ltd.

Business Results

http://www.minebea.co.jp/

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