Business Results for Fiscal Year ended March 31, 2002 Tsugio - - PowerPoint PPT Presentation

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Business Results for Fiscal Year ended March 31, 2002

Tsugio Yamamoto President and Representative Director May 17, 2002

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1

CONTENTS

• 1. Consolidated Results for

Fiscal Year ended March 31, 2002

• 2. Mid-Term Management Plan

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2

1. Consolidated Results for Fiscal Year ended March 31, 2002

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3

Consolidated Results for Fiscal Year ended March 31, 2002 5,298 15,995 21,972 279,344

Year ended

• Mar. ‘02
• 64.3%
• 35.3%
• 33.4%
• 2.7%

Change yoy

5,500 14,826

Net Income

15,000 24,726

Ordinary Income

21,700 32,977

Operating Income

260,000 287,045

Net Sales Forecast

announced

• n Nov. ‘01

Year ended

• Mar. ‘01

( Millions of yen)

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4

Sales and Operating Income by Segment

※ N e t S a l e s a r e e x t e r n a l s a l e s

• n

l y ※ M a i n P r

• d

u c t s : B e a r i n g r e l a t e d p r

• d

u c t s : B a l l B e a r i n g s , r

• d
• e

n d a n d s p h e r i c a l b e a r i n g s , p i v

• t

a s s e m b l i e s O t h e r m a c h i n e r y c

• m

p

• n

e n t s : F a s t e n e r s , w h e e l s , d e f e n s e

• r

e l a t e d s p e c i a l p a r t s R

• t

a r y c

• m

p

• n

e n t s : S t e p p i n g m

• t
• r

s , f a n m

• t
• r

s , s p i n d l e m

• t
• r

s O t h e r e l e c t r

• n

i c d e v i c e s : P C k e y b

• a

r d s , F D D s u b a s s e m b l i e s , s w i t c h i n g p

• w

e r s u p p l i e s , s p e a k e r s

Millions of yen

First half Second half Full year Change yoy Forecast

announced on Nov.'01

〔 Net Sales〕 Machined components business 1 2 4 , 4 6 1 6 2 , 1 9 4 5 9 , 8 3 0 1 2 2 , 2 5 △2 . % 1 1 6 , 2 Bearing related products 1 1 , 9 6 5 1 , 1 8 8 4 8 , 9 2 5 1 , 1 1 3 △1 . % 9 7 , 1 Other machinery components 2 3 , 3 6 5 1 1 , 6 1 , 9 5 2 1 , 9 1 1 △6 . 2 % 1 9 , 1 1 5 1 , 9 1 7 3 , 9 7 9 8 2 , 3 2 5 1 5 6 , 3 3 + 2 . 9 % 1 4 3 , Rotary components 7 3 , 6 3 3 5 , 9 1 7 4 , 5 2 3 7 6 , 4 4 + 3 . 9 % 7 4 , 5 Other electronic devices 7 8 , 3 7 3 8 , 6 2 4 1 , 8 7 9 , 8 6 2 + 2 . % 6 8 , 5 Consumer business and others 1 , 6 7 4 7 9 3 7 1 , 1 6 △9 . 5 % 8 Total 2 8 7 , 4 5 1 3 6 , 8 8 2 1 4 2 , 4 6 2 2 7 9 , 3 4 4 △2 . 7 % 2 6 , 〔 Operating income〕 Machined components business 2 3 , 9 6 1 2 , 5 6 4 9 , 5 7 1 2 2 , 1 3 5 △7 . 4 % 2 1 , 7 6 8 8 , 2 5 9 △ 7 4 △ 8 8 △ 1 6 2

• △

7 4 Consumer business and others 8 1 2 6 △ 6

• 6

Total 3 2 , 9 7 7 1 2 , 4 9 6 9 , 4 7 6 2 1 , 9 7 2 △3 3 . 4 % 2 1 , 7 Electronics device and components business Electronics device and components business Year ended Mar.'01 Year to March 2002

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5

Ball Bearings Sales

25 50 75 100 125

Apr.-

• Jun. '01

Jul.-

• Sep. '01

Oct.-

• Dec. '01

Jan.-

• Mar. '02

Apr.-

• Jun. '02

Internal use Sales to external customers (Million units)

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２ ． Mid-Term Management Plan

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Management Plan

Operating Environment Users’ Shift of Production to South East Asia and China Emergence of Chinese Market Industry Reorganization

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Mid-Term Sales and Earnings Plan

5,298 15,995 21,972 279,344

Year to

• Mar. ‘02

17,000 28,000 33,000 316,800

Year to

• Mar. ’04

Plan

21,000 33,500 37,000 348,000

Year to

• Mar. ’05

Plan

10,000

Net Income

18,500

Ordinary Income

24,000

Operating Income

288,000

Sales

Year to

• Mar. ’03

Plan (Millions of yen)

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Mid-Term Sales and Earnings Plan

F i r s t H a l f S e c

• n

d H a l f F u l l y e a r N e t S a l e s 287,045 279,344 142,000 146,000 288,000 316,800 348,000 M a c h i n e d c

• m

p

• n

e n t s b u s i n e s s 124,461 122,025 59,450 59,200 118,650 124,250 131,650 B e a r i n g r e l a t e d p r

• d

u c t s 101,096 100,113 49,100 49,700 98,800 102,800 108,300 O t h e r m a c h i n e r y c

• m

p

• n

e n t s 23,365 21,911 10,350 9,500 19,850 21,450 23,350 151,910 156,303 82,550 86,800 169,350 192,550 216,350 R

• t

a r y c

• m

p

• n

e n t s 73,603 76,440 45,300 48,150 93,450 109,300 128,450 O t h e r e l e c t r

• n

i c d e v i c e s 78,307 79,862 37,250 38,650 75,900 83,250 87,900 C

• n

s u m e r b u s i n e s s a n d

• t

h e r s 10,674 1,016 － － － － － O p e r a t i n g I n c

• m

e 32,977 21,972 10,000 14,000 24,000 33,000 37,000 M a c h i n e d c

• m

p

• n

e n t s b u s i n e s s 23,906 22,135 9,800 12,200 22,000 25,250 28,000 8,259 △ 162 200 1,800 2,000 7,750 9,000 C

• n

s u m e r b u s i n e s s a n d

• t

h e r s 812 － － － － － O r d i n a r y I n c

• m

e 24,726 15,995 7,300 11,200 18,500 28,000 33,500 N e t I n c

• m

e b e f

• r

e T a x 22,387 12,948 7,100 10,900 18,000 27,500 33,000 N e t I n c

• m

e 14,826 5,298 3,600 6,400 10,000 17,000 21,000 22,149 24,385 － － 25,000 25,000 25,600 C a p i t a l E x p e n d i t u r e 39,876 26,245 － － 17,600 28,200 23,400 173,228 168,720 － － 144,000 128,000 64,000 N e t I n t e r e s t

• b

e a r i n g D e p t a s s u m s c

• n

v e r s i

• n
• f

a l l C B s Y e a r t

• M

a r . ' 5 E l e c t r

• n

i c s d e v i c e s a n d c

• m

p

• n

e n t s b u s i n e s s E l e c t r

• n

i c s d e v i c e s a n d c

• m

p

• n

e n t s b u s i n e s s Y e a r t

• M

a r . ' 3 (Millions of Yen) D e p r e c i a t i

• n

( i n c l . i n t a n g i b l e f i x e d a s s e t s ) Y e a r t

• M

a r . ' 1 Y e a r t

• M

a r . ' 2 Y e a r t

• M

a r . ' 4

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Management Strategy

Reinforcing R&D Strategy for Chinese Operations

Restructuring Unprofitable Business

Reorganizing Sales Structure Mid-term Plan

• Reinforcement of Bearing

and Related Business

• Expansion of Small Motor

Business

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11

K a r u i z a w a M a n u f a c t u r i n g U n i t B e a r i n g

• r

e l a t e d p r

• d

u c t s a n d s m a l l m

• t
• r

s M i n e b e a O n k y

• C
• .

, L t d . S p e a k e r s M e c h a t r

• n

i c s D i v i s i

• n

P C k e y b

• a

r d s M e a s u r i n g C

• m

p

• n

e n t s D i v i s i

• n

M e a s u r i n g c

• m

p

• n

e n t s F u j i s a w a M a n u f a c t u r i n g U n i t F a s t e n e r s N M B T e c h n

• l
• g

i e s C

• r

p

• r

a t i

• n

, T e c h n i c a l C e n t e r B e a r i n g

• r

e l a t e d p r

• d

u c t s a n d s m a l l m

• t
• r

s

Reinforcing Research and Development

Minebea’s Global R&D Activities 17 locations in 6 countries

H a m a m a t s u M a n u f a c t u r i n g U n i t E l e c t r

• n

i c c

• m

p

• n

e n t s O m

• r

i M a n u f a c t u r i n g U n i t M

• t
• r

s a n d d e f e n s e ‐ r e l a t e d s p e c i a l p a r t s S i n g a p

• r

e R & D C e n t e r B e a r i n g

• r

e l a t e d p r

• d

u c t s a n d s m a l l m

• t
• r

s T h a i R & D C e n t e r B e a r i n g

• r

e l a t e d p r

• d

u c t s a n d s m a l l m

• t
• r

s P r e c i s i

• n

M

• t
• r

s D e u t s c h e M i n e b e a G m b H B e a r i n g

• r

e l a t e d p r

• d

u c t s a n d s m a l l m

• t
• r

s N M B

• M

i n e b e a

• G

m b H , M i n e b e a E u r

• p

e P E D e v e l

• p

m e n t C e n t r e S w i t c h i n g p

• w

e r s u p p l i e s N M B ( U K ) L t d . , A i r m

• v

e r D i v i s i

• n

F a n m

• t
• r

s R

• s

e B e a r i n g s L t d . . R

• d
• e

n d a n d s p h e r i c a l b e a r i n g s M i n e b e a E l e c t r

• n

i c s ( U K ) L t d . S w i t c h i n g p

• w

e r s u p p l i e s N M B T e c h n

• l
• g

i e s C

• r

p

• r

a t i

• n

P C k e y b

• a

r d s a n d s w i t c h i n g p

• w

e r s u p p l i e s N e w H a m p s h i r e B a l l B e a r i n g s , I n c . R

• d
• e

n d a n d s p h e r i c a l b e a r i n g s

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50 100 150

• Mar. '01
• Mar. '02
• Mar. '03E
• Mar. '04E
• Mar. '05E

Strategy for Chinese Operations

Strengthen sales Boost production Reduce costs

Outlook for Sales in China Area

(March ’01 sales based to 100)

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13

Reorganizing Sales Structure

Users’ move to

Shorten lead time from product development to mass production Shift of mass production to Asia

• Reinforced sales in Asia region
• Established separate sales team for every major

customer

• Reinforced sales in East Europe
• Inaugurated dedicated sales department for automobile

business

• Promoted efficiency in domestic sales organization

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Restructuring Unprofitable Business Power Supply Market

Company G Company G

Company C & D Company C & D

Company E & F Company E & F Company A Company A Company B Company B Minebea Minebea Technology Technology

Selling Price / Profit Selling Price / Profit 1997 1998 1999 2000 2001 2002 2003

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Restructuring Unprofitable Business

Power Supply Target Market

Server Workstation High power output High efficiency

Full Resonant Converter Technology Standardized Circuit Block Structure

Set top box Projector Mass production

Quasi Resonant Converter Technology

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Five Products to Achieve Mid-Term Earnings Goals １ ． Ball Bearings ２ ． Fan Motors ３ ． Spindle Motors ４ ． Motors and Sensors for Automobile Use ５ ． Power Supplies

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Ball Bearings

50 100 150

• Mar. '01
• Mar. '02
• Mar. '03E
• Mar. '04E
• Mar. '05E

Internal use Sales to external customers (Million units） FY end 150 million units per month 160 million units per month 140 million units per month

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Fan Motors

• Strategy

Strategy

• Sales Expansion

Sales Expansion

• Cost Reduction

Cost Reduction

• Product Mix

Total annual sales to 80 million units this fiscal year Product Mix

Minebea

Low-end Market

Ball bearing type

• High reliability and

Superior performance at high rotation speed

High-end Market

High value added business expected to take off

Expand Market by Reinforcement of Operation

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19

2,000 4,000 6,000

Jan.-

• Mar. '01

Apr.-

• Jun. '01

Jul.-

• Sep. '01

Oct.-

• Dec. '01

Jan.-

• Mar. '02

Apr.-

• Jun. '02E

Jul.-

• Sep. '02E

Fluid Dynamic Bearings RO Bearings Discrete Ball Bearings

1000 units per month

Spindle Motors

Spindle Motors Production by Bearing Type

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Spindle Motors

H D D M a r k e t F

• r

e c a s t r e f e r e n c e f r

• m

P i x i e P i n n a c l e C

• r

p

• r

a t i

• n

２ ０ ％ 30％

• ver

30%

• ver

40%

• ver

50 100 150 200 250 300 2001 2002E 2003E 2004E Others Minebea

(Million units)

Minebea’s Share in HDD Spindle Motor Market

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21

Motors and Sensors for Automobile Use

Motors for Dashboard Unit Meters Motors for Headlight Actuators Next Generation EPS Motors Motors for Adaptive Cruise Control Sensors Magnetic Clutch / Brake Motors for Electrical Mechanical Brake Torque Sensors Resolvers

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

Any statements in the presentation which are not an historical fact are future projections made based on certain assumptions and our management's 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 indicators surrounding us or demand trends; (ii) fluctuation of 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.

Business Results for Fiscal Year ended March 31, 2002