MinebeaMitsumi : Presentation file for 1Q of FY 3.2021

Business Results

First Quarter of Fiscal Year

Ending March 31, 2021

MinebeaMitsumi Inc.

August 4, 2020

Summary of Consolidated Business Results for 1Q

1Q operating income was up 61% YoY

	(Millions of yen)	FY3/20			FY3/21		Change
	1Q *	4Q		1Q *		YoY	QoQ
	Net sales	204,425	226,897		187,463	-8.3%	-17.4%
	Operating income	3,324	12,401		5,364	+61.4%	-56.7%
	Profit before taxes	3,341	11,870		5,274	+57.9%	-55.6%
	Profit for the period	2,173	10,428		3,573	+64.4%	-65.7%
	attributable to owners of the parent
	Earnings per share,	5.23	25.44		8.75	+67.3%	-65.6%
	basic (yen)
	Foreign	FY3/20	FY3/20		FY3/21		*1Q FY3/21 Operating Income
	Exchange Rates	1Q	4Q		1Q
			COVID-19 related expense Approx. ¥4.0bn
	US$	¥110.73	¥109.35		¥107.74		*1Q FY3/20 Operating Income
							1 Special factors ¥4.0bn
	Euro	¥123.56	¥121.05		¥118.23
			2 Revised by the impact of U-Shin PPA
	Thai Baht	¥3.47	¥3.54		¥3.34
	Chinese RMB	¥16.28	¥15.63		¥15.12
	August 4, 2020			2

Net Sales, Operating Income/margin

Net sales

(Billions of yen)	Operating income

		Operating margin			279.5
						267.7
	236.3	249.6
	31.1						226.9
213.0				204.4
			185.8				23.3		187.5
	19.6					19.6
14.3
								12.4
		12.5%	7.0						5.4
6.7%	8.3%			3.3	7.0%	8.7%
						5.5%	2.9%
			3.8%
				1.6%
1Q	2Q	3Q	4Q	1Q		2Q	3Q	4Q	1Q	2Q	3Q	4Q
	FY3/19				FY3/20			FY3/21
August 4, 2020						3

Machined Components

Net sales (Billions of yen)	Operating income (Billions of yen)
			Ball bearings Rod-ends/Fasteners Pivot assemblies				Operating income		Operating margin

47.3	48.2	47.4	46.1

24.8%	26.0% 27.1%
		23.5%
	12.5	12.9

23.2% 22.6%

21.2% 21.1% 20.1%

			45.5		45.1	45.2	44.5
7.9	8.0	7.6	6.0	6.2
	6.4	6.3
		5.6
	9.1							35.5
8.9	9.4	10.1	10.0	9.6	9.5
	10.1
		4.5
								7.4

11.7

10.7 10.7 10.2

9.6 9.4

7.2

30.4		31.1
		30.3
					29.8
			29.4			29.2		29.4
							28.7

23.6

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/19

FY3/20

FY3/21

FY3/19

FY3/20

FY3/21

August 4, 2020

4

Electronic Devices & Components

Net sales (Billions of yen)	Operating income (Billions of yen)
			Motors Electronic devices Sensing devices Other				Operating income		Operating margin

		114.4		111.5
		1.2
		9.7			1.1
			101.3	8.6
			93.7	1.0
91.7			8.2	89.0
87.4		0.8
1.0
	8.3		1.2
9.1	1.2
	77.6		7.5
	9.3
		56.4	1.1		55.9
		8.3
			46.4
34.5			39.6
27.9			37.7
			22.4

47.0 49.0 47.1 44.9 45.8 45.7 46.0 42.7

9.2%	7.9%
6.6%
4.6%	3.0%	2.7%
2.1%
0.5%

0% -0.7%

10.6

79.7			8.8
1.2
6.9
			6.7
32.5
			4.0
			2.7
		1.9	2.2
			0.4
39.0

(0.6)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/19

FY3/20

FY3/21

FY3/19

FY3/20

FY3/21

August 4, 2020

5

Mitsumi Business

Net sales (Billions of yen)	Operating income (Billions of yen)
		Operating income		Operating margin
		14.8%
	7.4%	7.1%	9.2%	6.7%
	4.1%			2.4%
		0.0%

			0%
			-2.6%
100.6		100.9
		13.0	Extraordinary expenses/losses
	87.6		approx. +5.0bn in 3Q

79.2

73.9

62.4

7.5

7.1

7.3

56.6

46.3

49.7

4.2

3.0

1.4

0.0

(1.2)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/19

FY3/20

FY3/21

FY3/19

FY3/20

FY3/21

August 4, 2020

6

U-Shin Business

Both net sales and operating income before March of 2019 are pre-merger results.

Net sales (Billions of yen)	Operating income (Billions of yen)
				Operating income		Operating margin

5.7%	5.9%		4.5%
3.6%	3.7%
2.2%	2.4%
	1.5%

Including ¥4.0bn of

Sales of April 1 - 9

40.9

0%

-0.9%

39.1						2.2	2.1
36.5
35.7
32.0	34.7			1.5
32.0	31.5	30.9			1.4
					1.2			-13.9%
		30.7						0.7	0.8
							0.5

15.6

(0.3)

(2.2)

1Q

2Q

3Q

4Q

Jan.

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Jan.

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

-Mar.

-Mar.

FY12/18

FY3/20

FY3/21

FY12/18

FY3/20

FY3/21

[JGAAP]

[ IFRS ]

[ IFRS ]

[JGAAP]

August 4, 2020

7

Profit attributable to owners of the parent / EPS

(Billions of yen)				Profit for the period attributable to owners of the parent
				Earnings per share, basic (yen)

24.2

19.2

16.0	57.9
			14.1
10.9			46.4
		10.4
38.0	9.1
	34.1
26.0	21.9		25.4	3.6
	2.2

				5.2
1Q	2Q	3Q	4Q	1Q
	FY3/19

8.8

	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	FY3/20			FY3/21

August 4, 2020

8

Inventory

(Billions of yen)

204.4

	176.8	174.4	181.4	175.9	169.8
169.1
		156.8
		141.4

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/19

FY3/20

FY3/21

August 4, 2020

9

Net interest-bearing debt / Free cash flow

*JGAAP until FY3/18

		Net interest-bearing debt *		Free cash flow

126.5

(Billions of yen)

70.9			75.2
	52.5			56.0
	46.5	42.9	53.2
36.3	37.2			46.2
		21.7		49.0

								(30.6)
FY3/17		FY3/18	FY3/19	FY3/20		FY3/21		FY3/21
						1Q		Forecast
			*Net interest-bearing debts :"Bonds and borrowings" - ("Cash and cash equivalents"＋Time deposit more than 3 months)
	[JGAAP]				[ IFRS ]
August 4, 2020				10

Forecast for Fiscal Year Ending March 31, 2021

Keep our expectation unchanged

in upper and lower end

		FY3/20		FY3/21
	(Millions of yen)		Upper End	Lower End
		Full Year	Full Year	YoY	Full Year	YoY
	Net sales	978,445	1,000,000	+2.2%	900,000	-8.0%
	Operating income	58,647	60,000	+2.3%	50,000	-14.7%
	Profit before taxes	58,089	59,000	+1.6%	49,000	-15.6%
	Profit for the period	45,975	47,000	+2.2%	39,000	-15.2%
	attributable to owners of the parent
	Earnings per share,	111.11	115.08	+3.6%	95.49	-14.1%
	basic (yen)
	Foreign	FY3/20	FY3/21
	Exchange Rates	Full Year	Assumptions
	US$	¥109.12	¥107.00
	Euro	¥121.27	¥115.00
	Thai Baht	¥3.52	¥3.30
	Chinese RMB	¥15.68	¥15.00
	August 4, 2020		11

Forecast for Business Segment

		FY3/20
(Millions of yen)
		Full Year
Net sales	978,445
	Machined components	180,885
	Electronic devices and components	379,422
	Mitsumi business	292,243
	U-Shin business	125,145
	Other	750
Operating income	58,647
	Machined components	39,874
	Electronic devices and components	17,552
	Mitsumi business	18,656
	U-Shin business	2,598
	Other	△1,502
	Adjustment	△18,531

		FY3/21
Upper End		Lower End
Full Year		YoY		Full Year		YoY
1,000,000	+2.2%	900,000	-8.0%
170,000	-6.0%	160,000	-11.5%
356,000	-6.2%	324,000	-14.6%
373,000	+27.6%	335,000	+14.6%
100,000	-20.1%	80,000	-36.1%
1,000	+33.3%	1,000	+33.3%
60,000	+2.3%	50,000	-14.7%
37,000	-7.2%	33,000	-17.2%
16,000	-8.8%	14,000	-20.2%
24,000	+28.6%	22,000	+17.9%
1,000	-61.5%		△1,000	-
△2,500	+66.4%		△2,500	+66.4%
△15,500	-16.4%		△15,500	-16.4%

August 4, 2020

12

Today's highlights

• Overall: Q1 operating profit was up 61% YoY despite the coronavirus pandemic.
  H1 operating profit is expected to be on a par with last year. Diversified portfolio keeps revenues up and disperses risk.
• Full-yearearnings guidance remains in high to low ranges due to the uncertainty for H2.
• Machined components: External ball bearing shipment volumes remain uncertain but should start to gradually recover in Q3. No change in sales of commercial aircraft-related products.
• Electronics & Mitsumi: Smartphone and game-related businesses keep revenues up. Analog semiconductors made a solid contribution to our bottom line as core business.
• U-Shin:Some factories are back in full operation.
  The business should start to pick up after bottoming out in Q2.

August 4, 2020

13

No change in mid-to-long term growth scenario

1	Earning guidance for this fiscal year remains in ranges
 H1 operating profit is expected to be on a par with last year

 Back on growth track after COVID-19

2

3

Strengthen business mix over the medium to long run via growth of core businesses

	Ball bearings	 Ultra-high quality, structural growth,
			overwhelming competitive edge
	Motors		Focus on high-end
	Camera actuators		Innovation and structural growth
	Analog semiconductors		Synergy with ABLIC

No change in medium-to-long-term cash allocation policy

• Dividends and share buyback: 50% of FCF, 20% payout ratio
• M&A: Seize opportunities when valuation is more attractive

August 4, 2020

14

Any statements in this presentation which are not historical are future projections based on certain assumptions and executive judgments 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 but are not limited to: (i) changes in economic conditions or demand trends related to MinebeaMitsumi's business operations; (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.

All the information in this document is the property of MinebeaMitsumi Inc. 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 MinebeaMitsumi Inc.

August 4, 2020

15

Reference

August 4, 2020

16

Machined Components

*JGAAP until FY3/18

Net sales (Billions of yen)				Operating income (Billions of yen)
			Ball bearings	Rod-ends/Fasteners Pivot assemblies Other					Operating income		Operating margin
						188.3				24.9%	25.0%	24.2%		25.4%
							180.9
					176.4											22.0%	21.8%
							170.0
					7.1	29.5
163.8		24.5												20.6%
156.3	160.0					Excluding ¥0.7bn of		47.8
											PPA impact in 4Q
							23.3
					31.5
34.3				21.0							43.4
32.6		37.6				40.9
					39.3			39.1			39.9
										42.7
							33.0								37.0
					31.9			29.8
32.1	29.6															33.0

						121.2
							117.1	113.7	109.2
				105.9
97.4
	94.1

FY3/16 FY3/17 FY3/18

FY3/19 FY3/20 FY3/21E

FY3/21E

(Upper

(Lower

FY3/16

FY3/17

FY3/18

FY3/19

FY3/20

FY3/21

end)

end)

Forecast

[JGAAP]

[ IFRS ]

[JGAAP]

[ IFRS ]

August 4, 2020

17

Electronic Devices & Components

*JGAAP until FY3/18

Net sales (Billions of yen)	Operating income (Billions of yen)
			Motors Electronic devices Sensing devices Other				Electronic Devices & Components		Operating margin

445.5	441.6	451.5
3.8
3.6	4.0
35.7
35.9	38.3
			387.3
					379.4
					4.2	356.0
					4.3
					36.4
					32.5
						4.5		324.0
									31.5
											3.5			6.9%
245.0			227.8								27.5		5.0%	5.0%	4.4%	4.6%	4.5%
241.0			158.5										31.2			4.3%
					162.4	120.0
												117.0
															22.3	21.9
																	16.9	17.6	16.0
									200.0
						188.1
				184.2											14.0
						180.2	176.0
161.0		158.3

FY3/16 FY3/17 FY3/18

FY3/19 FY3/20 FY3/21E

FY3/21E

(Upper

(Lower

FY3/16

FY3/17

FY3/18

FY3/19

FY3/20

FY3/21

end)

end)

Forecast

[JGAAP]

[ IFRS ]

[JGAAP]

[ IFRS ]

August 4, 2020

18

Mitsumi Business

Net sales (Billions of yen)

Both net sales and operating income in and before 3Q FY3/17 are premerger results. 4Q FY3/17 results are based on managerial accounting for the three months. JGAAP until FY3/18.

Operating income (Billions of yen)

Operating income

Operating margin

373.0				8.6%
					6.4%	6.6%
	335.0
				7.2%	6.4%
308.4
292.2
250.6						0%
	-2.8%
				21.5	22.3	24.0
178.0			-5.9%		18.7	22.0
163.6
			1.8
		(4.6)		*Excluding 12.3bn of
			inventory write-down in 3Q

(10.6)

Extraordinary expenses/losses

approx. +5.0bn in 3Q

FY3/16 FY3/17 FY3/18 FY3/19

FY3/20 FY3/21E

FY3/21E

(Upper

(Lower

FY3/16

FY3/17

FY3/18

FY3/19

FY3/20

FY3/21

end)

end)

Forecast

[JGAAP]

[ IFRS ]

[JGAAP]

[ IFRS ]

August 4, 2020

19

U-Shin Business

Net sales (Billions of yen)

As a result of change of the fiscal year end, FY12/17 consists of 13 months. Both net sales and operating income until FY12/18 are pre-merger results.

FY3/20 does not include Jan.-Mar. results. JGAAP until FY12/18

Operating income (Billions of yen)

Operating income

Operating margin

164.2		168.6		4.7%
	2.9%		3.2%
	153.9	2.1%
	148.6	2.1%
			1.0%
				0%
		125.1		-1.3%
		100.0
		80.0		7.0
		4.7		5.4
			3.3	2.6
				1.0

(1.0)

FY11/15 FY11/16 FY12/17 FY12/18

FY3/20 FY3/21E

FY3/21E

(Upper

(Lower

FY11/15 FY11/16 FY12/17 FY12/18

FY3/20

FY3/21

end)

end)

Forecast

[JGAAP]

[ IFRS ]

[JGAAP]

[ IFRS ]

August 4, 2020

20

S.G.&A. expense / ratio

(Billions of yen)
S.G.&A. expenses	S.G.&A. to sales ratio

			26.7	27.3	26.6	27.0
	24.5		23.7			25.2
23.5
	22.8

	12.8%	13.1%	11.9%	13.4%
11.0%
10.4%	9.8%	10.0%
	9.1%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/19

FY3/20

FY3/21

August 4, 2020

21

Capital Expenditure / D&A Expense

*JGAAP until FY3/18

(Billions of yen)	Capital expenditure	Depreciation & Amortization expenses

54.254.2

50.1*	49.0
	46.2
	43.0

36.4

31.831.6

28.2

12.4 11.7

FY3/17		FY3/18	FY3/19	FY3/20		FY3/21	FY3/21
						1Q	Forecast
			* Capital expenditures of FY3/20 1Q do not include the increase of asset from lease contracts at the IFRS16 application start date
	[JGAAP]				[ IFRS ]
August 4, 2020				22

ROIC (Return On Invested Capital)	ROIC for U-Shin business are pre-merger result and based
JGAAP until FY3/18
	on CY / JGAAP, and are not included in the Total.

MinebeaMitsumi	＝	NOPAT (Operating income + extraordinary profit/loss) x (1-tax rate)
ROIC		Invested capital	(Notes receivable/accounts receivable + inventories

+ non-current assets - notes payable/accounts payable)

Calculated using business assets (trade receivable/payable, inventories, non-current assets) by segment

(%)
40.0	Total	Machined components	Electronic devices and components	Mitsumi business	U-Shin business
35.0					31.1
			29.9	30.1
30.0	26.9	28.0
								23.8
						24.0		23.3	24.9
						23.3
25.0						21.7
	19.7			17.5	18.2			20.4
20.0
			16.5
		12.8						20.5
					14.5		14.0	13.8	14.6
15.0		10.9	10.5		12.4			12.8
11.8
		10.4
					10.8
				13.1
10.0									7.7
				11.0		4.1
						9.8
						8.8
									4.4
						1.9		5.9
5.0								7.2
		2.0	7.1
1.6					2.3		2.9
	0.5	0.1	3.1
								2.4
0.0							0.0
-5.0	-2.3						-1.2			-0.7
-3.2
											-9.3
-10.0			-9.4
	FY3/15	FY3/16	FY3/17	FY3/18	FY3/19	FY3/20	FY3/20	FY3/20	FY3/20	FY3/20	FY3/21
							1Q	2Q	3Q	4Q	1Q
		[JGAAP]		[ IFRS ]				[ IFRS ]
August 4, 2020					23