Business Results Fiscal Year ended March 31, 2004 Minebea Co., Ltd. - PowerPoint PPT Presentation

Business Results Fiscal Year ended March 31, 2004 Minebea Co., Ltd. Tsugio Yamamoto Representative Director, President and Chief Executive Officer May 14, 2004

1. Business Results and Forecast 1 May 14, 2004

Consolidated Results for Fiscal Year ended March 31, 2004 Year ended Year ended Change (Millions of yen) Mar. '03 Mar. '04 yoy 272,202 268,574 -1.3% Net Sales Operating Income 19,352 18,104 -6.4% Ordinary Income 13,420 13,800 +2.8% Income before 495 12,958 26x Income Taxes Net Income -2,434 6,019 - Effect of FX fluctuations Overview FY Mar’03 → FY Mar’04 � Successful year for ball bearing business US$ ¥122.29 → ¥113.97 Thai Baht ¥2.86 → ¥2.79 � Issues remained for electronic devices Net Sales minus ¥ 8.8 billion and components business Operating Income minus ¥ 0.4 billion 2 May 14, 2004

Full Year Net Sales and Operating Income by Segment Year ended Year ended Change (Millions of yen) Mar. '03 Mar. '04 yoy [Net Sales] Machined components business 118,117 111,692 -5.4% Bearing-related products 97,938 94,604 -3.4% Other machined components 20,180 17,089 -15.3% Electronic Devices and 154,084 156,881 +1.8% components business Rotary components 79,188 86,741 +9.5% Other electronic devices 74,897 70,141 -6.4% Total Net Sales 272,202 268,574 -1.3% [Operating income] Machined components business 18,519 19,505 +5.3% Electronic devices and 832 -1,400 - components business Total Operating Income 19,352 18,104 -6.4% 3 May 14, 2004

Fourth Quarter Net Sales and Operating Income by Segment Year ended Year ended Mar. '04 4Q change Mar. '03 (Millions of yen) 4Q 1Q 2Q 3Q 4Q yoy qoq [Net Sales] 29,085 28,606 27,059 27,434 28,593 -1.7% +4.2% Machined components business Bearing-related products 24,035 23,959 23,169 23,324 24,152 +0.5% +3.5% Other machined components 5,050 4,646 3,892 4,109 4,442 -12.0% +8.1% Electronic devices and 37,144 37,883 40,193 41,294 37,511 +1.0% -9.2% components business 19,734 21,458 22,184 22,209 20,890 +5.9% -5.9% Rotary components 17,412 16,424 18,011 19,084 16,622 -4.5% -12.9% Other electronic devices 66,230 66,489 67,252 68,728 66,105 -0.2% -3.8% Total Net Sales [Operating Income] 4,585 4,908 4,270 5,035 5,292 +15.4% +5.1% Machined components Electronic devices and -929 -648 937 -503 -1,186 - - components business Total Operating Income 3,657 4,259 5,208 4,531 4,106 +12.3% -9.4% 4 May 14, 2004

Sales of Bearing-related Sales ratio products Machined Components Business 35% 6% Other machined (Billions of yen) components Change 140 yoy 118.1 114.0 -5% 120 111.7 FY Mar’04 Net Sales 20.2 excluding effect of FX fluctuations 17.2 17.1 -15% 100 Ball bearings + 1% yoy 17.2 16.7 -3% 80 Rod-end & spherical bearings - 4% 12.8 -5% 12.2 Pivot assemblies +4% 60 Bearing-related products total • Sales of ball bearings and pivot 96.8 40 67.9 65.8 assemblies were affected by fall -3% in unit price and effect of FX 20 fluctuations in FY Mar’04. 0 However, large increase in shipments were recorded. FY end Mar.'03 Mar.'04 Mar.'05E • One of the reasons of sales Other machined components decline for other machined Pivot assemblies components is sale of subsidiary Rod-end & spherical bearings in the US. Ball bearings 5 May 14, 2004

Sales of Rotary Components Sales ratio 32% Rotary (Billions of yen) components 140 123.6 Change 120 FY Mar’04 Net Sales yoy excluding effect of FX fluctuations 100 +10% 86.7 Spindle motors +33% yoy 79.2 80 -2% 19.8 Fan motors +3% 20.2 Stepping motors - 0% 60 -0% 25.5 25.6 40 • FDB spindle motors for HDD 41.5 +24% 20 recorded large growth in 33.4 shipments, pushed by demand 0 growth and expansion of our Mar.'03 Mar.'04 Mar.'05E FY end market share. Stepping motors Fan motors Spindle motors 6 May 14, 2004

Sales ratio Sales of Other Electronic Devices Other electronic devices 26% Change (Billions of yen) yoy 74.9 70.1 -6% FY Mar’04 Net Sales 80 4.4 6.1 +39% 62.4 excluding effect of FX fluctuations 12.4 60 12.9 +4% PC keyboards - 3% yoy 14.0 10.5 -25% 40 15.9 15.3 -4% • Without the terminated 20 businesses (FDD, and switching 28.2 25.3 -10% power supplies and related), 0 total sales increased FY end Mar.'03 Mar.'04 Mar.'05E ¥61.0 billion in FY Mar '03 → ¥62.1 billion in FY Mar ’04. • Back light business expanded Measuring components and others rapidly, contributing positively Speakers to sales. Switching power supplies Electronic devices • Sales of keyboards fell due to delay in start of new factory in PC keyboards China. 7 May 14, 2004

Spindle motor business reached four-fold in sales Net Sales by Segment Back light business built up Termination of imported Withdrawal from switching power furniture retail business supply and related businesses Sale of IMC Magnetics Corp. Withdrawal from automobile wheel business Launch of Minebea-Matsushita Termination of FDD business Motor Corporation (Billions of yen) 300.0 287.0 284.8 300 279.3 272.2 268.6 10.7 10.9 1.0 62.4 250 Consumer business 79.9 78.3 74.9 70.1 82.4 and others 200 Other electronic devices 123.6 73.6 76.4 63.8 79.2 86.7 Rotary components 150 25.9 23.4 21.9 20.2 17.2 Other machined 17.1 100 components Bearing-related 101.8 101.1 50 100.1 97.9 96.8 94.6 products 0 Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E FY end 8 May 14, 2004

Profitability of machined components improved. Operating Income by Segment Necessary to improve profitability of electronic devices and components. (Billions of yen) 25 14% 12% 11.5% 20 10.9% 10% 15 7.9% 19.5 19.5 8% 23.9 7.1% 22.0 22.1 6.7% 6.7% 8.3 10 8.3 18.5 6% 5 4% 0.8 0.5 -0.2 -1.4 0 2% Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E FY end -5 0% Machined Electronic devices Total operating components and components margin Operating margin by segment Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E 17.2% 19.2% 18.1% 15.7% 17.5% 17.1% Machined components 5.6% 5.4% -0.1% 0.5% -0.9% 0.3% Electronic devices and components － － － Consumer business and others 7.5% 7.6% 0.0% 10.9% 11.5% 7.9% 7.1% 6.7% 6.7% Total Consumer business and others is omitted in the graph: FY/Mar’00 ¥0.8billion, FY/Mar’01 ¥0.8billion, FY/Mar’02 ¥0.0billion Note: Operating margin for each segment is calculated on external sales basis 9 May 14, 2004

Fiscal Year ended March 31, 2004 Sales by User Industry and by Region Sales by User Industry PC and PC Home Automobile Aerospace OA & IT related Motors Others Total electronics equipment 7.8% 9.2% 9.9% 10.6% 44.4% 5.4% 12.7% 100.0% % of Sales Change +6.1% -4.9% -3.5% +3.9% -1.4% -2.1% -4.5% -1.3% yoy Sales by Region On local currency basis, Sales in Asia increased 20% yoy; North and Sales in North and South Asia Japan South Europe Total America, and Europe decreased (ex-Japan) America 10% yoy % of Sales 25.8% 45.3% 16.9% 12.0% 100.0% Change -6.0% +13.7% -20.6% -6.1% -1.3% yoy 10 May 14, 2004

SG & A Expenses Plans to reduce in real in term in FY Mar’05 (Billions of yen) 60 25% 51.3 51.1 50.5 49.4 47.2 47.0 50 20% 40 18.4% 18.1% 17.8% 17.7% 17.6% 15% 15.7% 30 10% 20 5% 10 0 0% Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E FY end S.G.&A. expenses S.G.&A. to sales ratio 11 May 14, 2004

Capital Expenditure Main areas of capital investment in FY Mar’05 (Billions of yen) Ball bearings 50 Pivot assemblies Spindle motors 39.9 New keyboard factory in China 40 Minebea-Matsushita Motor Corporation 30 26.2 23.0 19.5 18.8 20 16.4 10 0 FY end Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05 E Capital expenditure 12 May 14, 2004

Interest-Bearing Debt (Billions of yen) 200 173.2 168.3 168.7 152.9 148.0 146.7 150 100 47.0 50 16.0 9.7 6.8 5.2 -1.0 0 FY end Mar.'00 Mar.'01 Mar.'02 Mar.'03 Mar.'04 Mar.'05E -50 Interest-bearing debt Net interest-bearing debt Cash flow 13 May 14, 2004

Forecast for Fiscal Year ending March 31, 2005 Year ending Year ended Change (Millions of yen) Mar. '05 Mar. '04 yoy Forecast Net Sales 268,574 300,000 +11.7% 18,104 20,000 +10.5% Operating Income 13,800 15,500 +12.3% Ordinary Income Income before 12,958 14,500 +11.9% Income Taxes 6,019 9,000 +49.5% Net Income 14 May 14, 2004

Forecast of Net Sales and Operating Income by Segment Year ending Year ended Change (Millions of yen) Mar. '05 Mar. '04 yoy Forecast [Net Sales] Machined components business 111,692 114,000 +2.1% Bearing-related products 94,604 96,800 +2.3% 17,089 17,200 +0.6% Other machined components Electronic Devices and 156,881 186,000 +18.6% components business Rotary components 86,741 123,600 +42.5% 70,141 62,400 -11.0% Other electronic devices Total Net Sales 268,574 300,000 +11.7% [Operating income] Machined components business 19,505 19,500 -0.0% Electronic devices and -1,400 500 - components business Total Operating Income 18,104 20,000 +10.5% 15 May 14, 2004

2. Strategy and Outlook 16 May 14, 2004