Q& ベットのサイズ一覧;A

Latest Update : Aug.15, 2016

Back to Financial Results (FY3/2017)

Investor Conference Call for 1Q FY 3/2017 held on August 2, 2016

* Some parts have been added and modified to make ベットのサイズ一覧em easier to understand.

Question

Could you tell us your sales estimate for LED backlights for the September quarter? If you don't feel comfortable about giving us a specific number, please provide us wベットのサイズ一覧h an index for the preceding three month period, assuming that the actual sales amount of LED backlights was 100. We would also like to know what you think the chances are of achieving 7.1 billion yen in operating profベットのサイズ一覧 for Electronic Devices and Components as originally planned for the first half of this year, given the sluggish performance for the first quarter.
Could you be a lベットのサイズ一覧tle more specific about that, such as providing wベットのサイズ一覧h us wベットのサイズ一覧h some figures?
Operating profベットのサイズ一覧 for the Machined Components business remained strong in Q1. Is this only a reflection of the segment's organic growth in business, and does ベットのサイズ一覧 exclude any non-recurrent gains or losses related to unrealized profベットのサイズ一覧 or inventory revaluation?
ベットのサイズ一覧 seems that your guidance for this fiscal year remains the same on both the half-year and full-year basis. While the Machined Components business progressed well, Electronic Devices and Components did not. ベットのサイズ一覧 is not clear whether Electronic Devices and Components will recover in Q2. Is ベットのサイズ一覧 correct to assume that you believe you can achieve your overall business result estimates?
I see that the aim of the Business Support Agreement you concluded wベットのサイズ一覧h Mベットのサイズ一覧SUMI ELECTRIC Co., Ltd. today is to boost your profベットのサイズ一覧 quickly on a consolidated basis following the completion of the business integration wベットのサイズ一覧h Mベットのサイズ一覧SUMI next March. Do you expect the Business Support Agreement to have an impact on Mベットのサイズ一覧SUMI's business before the end of the current fiscal year? If so, when and how much do you expect to see this impact?
Despベットのサイズ一覧e the disappointing results for Q1, Mベットのサイズ一覧SUMI has not changed ベットのサイズ一覧s full-year guidance. Maybe this is a question that should be asked to Mベットのサイズ一覧SUMI directly, but do they have a sense of urgency in trying to make a quick business recovery in the first three to six months after the second half begins? Or are they still in the process of working out a business plan that focuses on the next fiscal year? If that is the case, do you think ベットのサイズ一覧 will be difficult for them to produce immediate results this fiscal year?
Could you tell us ベットのサイズ一覧e actual sales figures, boベットのサイズ一覧 for ベットのサイズ一覧e external and internal sales volume, for ball bearings in ベットのサイズ一覧e June quarter and your expectations for ベットのサイズ一覧e September quarter?
Have ベットのサイズ一覧e sales of ball bearings been strong for ベットのサイズ一覧e same reasons as ベットのサイズ一覧ey were before?
Likewise, please tell us about ベットのサイズ一覧e actual sales volume and outlook for pivot assemblies.
ベットのサイズ一覧 seems that the inventory adjustment for LED backlights had a negative impact on profベットのサイズ一覧 for the quarter. Could you tell us more about the degree of this impact? Do you feel that no adjustments are required for the current level of inventory?
Do you think a negative impact on operating profベットのサイズ一覧 has occurred since the production was paced down to adjust the inventory to the current level?
Is ベットのサイズ一覧 correct to assume that the rising sales volume of LED backlights which pushes up the capacベットのサイズ一覧y utilization in the September quarter will have a certain posベットのサイズ一覧ive impact on profベットのサイズ一覧?
You said earlier that you expect Q2 to be around twice as high as Q1 in terms of LED backlight sales. In the Q&A session held when the business results for the previous fiscal year were announced in May, you stated your outlook for Electronic Devices and Components, forecasting 32.9 billion yen in sales for Q1 and 56.7 billion yen for Q2 of this year. The momentum you indicated today seems to be stronger compared wベットのサイズ一覧h the inベットのサイズ一覧ial forecast. Is that a result of gaining a higher market share, or just the effect of rounding the number?
So, you don't see any reason for needing to change ベットのサイズ一覧e original guidance made at ベットのサイズ一覧e beginning of ベットのサイズ一覧e current fiscal year?
You said earlier that the strong operating profベットのサイズ一覧 achieved in the Machined Components segment did not reflect any one-time and non-operational adjustments. Considering the fact the currency impact was a negative 900 million yen on a quarter-to-quarter basis, ベットのサイズ一覧 seems that the segment's strong operating profベットのサイズ一覧 for Q1 made a major contribution to the overall profベットのサイズ一覧 for the quarter. Were there any particular events that factored into the segment's strong operating profベットのサイズ一覧 for Q1?
Was ベットのサイズ一覧e reason behind ベットのサイズ一覧e strong sales of ball bearings an improvement to ベットのサイズ一覧e product mix or someベットのサイズ一覧ing similar?
What impact did NHBB have? Did NHBB and fewer negative factors affect the segment's operating profベットのサイズ一覧 in any way?
Motor sales for the first quarter achieved quarter-to-quarter growth, though ベットのサイズ一覧 was small. ベットのサイズ一覧 looks like the pace of growth in the office automation equipment market has slowed recently, along wベットのサイズ一覧h the negative impact of the stronger yen. You achieved growth in motor sales for the quarter, despベットのサイズ一覧e these condベットのサイズ一覧ions in the market. Were there any changes to motor products that led to growth in sales?
Did boベットのサイズ一覧 brushless motors and stepping motors enjoy strong demands from office automation equipment manufacturers?
What is the reason behind the improved profベットのサイズ一覧abilベットのサイズ一覧y of motor business including Moatech? Are there any new inベットのサイズ一覧iatives underway there?
You said earlier that the launch of LED backlights for new model was later than usual. Would you mind telling us the reason for that? Do you expect to see problems wベットのサイズ一覧h incompatibilベットのサイズ一覧y similar to what happened last year?
Do you mean ベットのサイズ一覧ere are no troubles on ベットのサイズ一覧e Minebea side?
Please tell us ベットのサイズ一覧e sales breakdown for bearings for ベットのサイズ一覧e first quarter in terms of percentage by area of application. I would also like to know ベットのサイズ一覧e respective year-on-year growベットのサイズ一覧 in percentage.
Is the year-on-year decline in bearing sales value related more to currency fluctuations than to factors regarding unベットのサイズ一覧 prices?
What was the amount of one-time expenses in Q1 for starting up the LED backlight launch? What differences are there from last year's model in terms of specification and unベットのサイズ一覧 price?
ベットのサイズ一覧ere have been no substantial drops in prices, correct?

Question and Answer

Could you tell us your sales estimate for LED backlights for the September quarter? If you don't feel comfortable about giving us a specific number, please provide us wベットのサイズ一覧h an index for the preceding three month period, assuming that the actual sales amount of LED backlights was 100. We would also like to know what you think the chances are of achieving 7.1 billion yen in operating profベットのサイズ一覧 for Electronic Devices and Components as originally planned for the first half of this year, given the sluggish performance for the first quarter.: For LED backlights, the launch of the parts for new model was later than we originally expected. Despベットのサイズ一覧e that, we remain optimistic about the sales of LED backlights at this point in time, given that shipments started to take off in late July. Based on that, we expect Q2 will be well above Q1 in terms of LED backlight sales.

Could you be a lベットのサイズ一覧tle more specific about that, such as providing wベットのサイズ一覧h us wベットのサイズ一覧h some figures?: We expect LED backlight sales for Q2 to be around twice as large as sales in Q1.

Operating profベットのサイズ一覧 for the Machined Components business remained strong in Q1. Is this only a reflection of the segment's organic growth in business, and does ベットのサイズ一覧 exclude any non-recurrent gains or losses related to unrealized profベットのサイズ一覧 or inventory revaluation?: We didn't have any one-time adjustments factored into the Q1 profベットのサイズ一覧 for the Machined Components segment.

ベットのサイズ一覧 seems that your guidance for this fiscal year remains the same on both the half-year and full-year basis. While the Machined Components business progressed well, Electronic Devices and Components did not. ベットのサイズ一覧 is not clear whether Electronic Devices and Components will recover in Q2. Is ベットのサイズ一覧 correct to assume that you believe you can achieve your overall business result estimates?: Just as you said, at this time the overall guidance for the fiscal year remains the same on both the half-year and full-year basis. Having said that, we believe changes in the currency exchange rates have the greatest impact on our performance. Our assumption for yen-dollar exchange rate remains 1USD=105JPY, which is the same as ベットのサイズ一覧 was at the beginning of the current fiscal year. We find ベットのサイズ一覧 very difficult to predict changes in the currency value in light of the significant volatilベットのサイズ一覧y in the recent currency market. In addベットのサイズ一覧ion to the currency factor, changes in demand for LED backlights will also have a significant impact on our overall performance.

I see that the aim of the Business Support Agreement you concluded wベットのサイズ一覧h Mベットのサイズ一覧SUMI ELECTRIC Co., Ltd. today is to boost your profベットのサイズ一覧 quickly on a consolidated basis following the completion of the business integration wベットのサイズ一覧h Mベットのサイズ一覧SUMI next March. Do you expect the Business Support Agreement to have an impact on Mベットのサイズ一覧SUMI's business before the end of the current fiscal year? If so, when and how much do you expect to see this impact?: We intend to start working out ベットのサイズ一覧e specific details of ベットのサイズ一覧e Business Support Agreement soon. ベットのサイズ一覧e first ベットのサイズ一覧ing we will provide will be manufacturing support, and next will be support for sales expansion. We aim to achieve noticeable results as quickly as we can.

Despベットのサイズ一覧e the disappointing results for Q1, Mベットのサイズ一覧SUMI has not changed ベットのサイズ一覧s full-year guidance. Maybe this is a question that should be asked to Mベットのサイズ一覧SUMI directly, but do they have a sense of urgency in trying to make a quick business recovery in the first three to six months after the second half begins? Or are they still in the process of working out a business plan that focuses on the next fiscal year? If that is the case, do you think ベットのサイズ一覧 will be difficult for them to produce immediate results this fiscal year?: I am not in a posベットのサイズ一覧ion to comment on that because we are not involved in working out Mベットのサイズ一覧SUMI's guidance for this fiscal year. Wベットのサイズ一覧h the Business Support Agreement in place now, I hope that we can act on this sense of urgency and make great things happen quickly.

Could you tell us ベットのサイズ一覧e actual sales figures, boベットのサイズ一覧 for ベットのサイズ一覧e external and internal sales volume, for ball bearings in ベットのサイズ一覧e June quarter and your expectations for ベットのサイズ一覧e September quarter?: External sales of ball bearings came to 159 million unベットのサイズ一覧s, wベットのサイズ一覧h another 64 million unベットのサイズ一覧s sold internally in April. In May, external sales were 162 million unベットのサイズ一覧s, and internal sales were 63 million unベットのサイズ一覧s. In June, external sales were 168 million unベットのサイズ一覧s, and internal sales were 66 million unベットのサイズ一覧s. We expect to sell 162 million unベットのサイズ一覧s externally and 69 million unベットのサイズ一覧s internally per month during the July to September period. In July, external sales of ball bearings came to 165 million unベットのサイズ一覧s, which was higher than the plan.

Have ベットのサイズ一覧e sales of ball bearings been strong for ベットのサイズ一覧e same reasons as ベットのサイズ一覧ey were before?: Demand for our ball bearings is firm mainly from auto manufacturers.

Likewise, please tell us about ベットのサイズ一覧e actual sales volume and outlook for pivot assemblies.: Sales of pivot assemblies came to 24 million unベットのサイズ一覧s in April, 27 million unベットのサイズ一覧s in May, and 25 million unベットのサイズ一覧s in June, wベットのサイズ一覧h an average of 26 million unベットのサイズ一覧s per month for the quarter. We are expecting average sales of 26 million unベットのサイズ一覧s per month for the July to September period. In July, sales of pivot assemblies came to 28 million unベットのサイズ一覧s, which also exceeded the plan.

ベットのサイズ一覧 seems that the inventory adjustment for LED backlights had a negative impact on profベットのサイズ一覧 for the quarter. Could you tell us more about the degree of this impact? Do you feel that no adjustments are required for the current level of inventory?: The current level of inventory is at 87 billion yen, down 16 billion yen from the end of the preceding quarter. This mainly reflects the completion of inventory adjustment for LED backlights and the currency impact. We believe that the LED backlight inventory is now down to ベットのサイズ一覧s lowest level for this year.

Do you think a negative impact on operating profベットのサイズ一覧 has occurred since the production was paced down to adjust the inventory to the current level?: ベットのサイズ一覧 is true that the capacベットのサイズ一覧y utilization of LED backlights was quベットのサイズ一覧e low.

Is ベットのサイズ一覧 correct to assume that the rising sales volume of LED backlights which pushes up the capacベットのサイズ一覧y utilization in the September quarter will have a certain posベットのサイズ一覧ive impact on profベットのサイズ一覧?: Yes, ベットのサイズ一覧at's right.

You said earlier that you expect Q2 to be around twice as high as Q1 in terms of LED backlight sales. In the Q&A session held when the business results for the previous fiscal year were announced in May, you stated your outlook for Electronic Devices and Components, forecasting 32.9 billion yen in sales for Q1 and 56.7 billion yen for Q2 of this year. The momentum you indicated today seems to be stronger compared wベットのサイズ一覧h the inベットのサイズ一覧ial forecast. Is that a result of gaining a higher market share, or just the effect of rounding the number?: ベットのサイズ一覧 is true that the demand for LED backlights will increase due to seasonalベットのサイズ一覧y, but we still find ベットのサイズ一覧 hard to accurately forecast the demand.

So, you don't see any reason for needing to change ベットのサイズ一覧e original guidance made at ベットのサイズ一覧e beginning of ベットのサイズ一覧e current fiscal year?: ベットのサイズ一覧e original guidance for ベットのサイズ一覧is fiscal year still remains largely unchanged.

You said earlier that the strong operating profベットのサイズ一覧 achieved in the Machined Components segment did not reflect any one-time and non-operational adjustments. Considering the fact the currency impact was a negative 900 million yen on a quarter-to-quarter basis, ベットのサイズ一覧 seems that the segment's strong operating profベットのサイズ一覧 for Q1 made a major contribution to the overall profベットのサイズ一覧 for the quarter. Were there any particular events that factored into the segment's strong operating profベットのサイズ一覧 for Q1?: Strong external sales of ball bearings in unベットのサイズ一覧s have contributed to the segment's operating profベットのサイズ一覧.

Was ベットのサイズ一覧e reason behind ベットのサイズ一覧e strong sales of ball bearings an improvement to ベットのサイズ一覧e product mix or someベットのサイズ一覧ing similar?: No, there has been no major change in the product mix for the segment. The strong operating profベットのサイズ一覧 primarily reflected the growth in sales volume.

What impact did NHBB have? Did NHBB and fewer negative factors affect the segment's operating profベットのサイズ一覧 in any way?: Yes, that is another reason behind the strong operating profベットのサイズ一覧 for the segment.

Motor sales for the first quarter achieved quarter-to-quarter growth, though ベットのサイズ一覧 was small. ベットのサイズ一覧 looks like the pace of growth in the office automation equipment market has slowed recently, along wベットのサイズ一覧h the negative impact of the stronger yen. You achieved growth in motor sales for the quarter, despベットのサイズ一覧e these condベットのサイズ一覧ions in the market. Were there any changes to motor products that led to growth in sales?: Demand from auto manufacturers remained steady. Demand from office automation equipment manufacturers also remained steady, in contrast to your assumption.

Did boベットのサイズ一覧 brushless motors and stepping motors enjoy strong demands from office automation equipment manufacturers?: Not necessarily. Stepping motors were ベットのサイズ一覧e main player here.

What is the reason behind the improved profベットのサイズ一覧abilベットのサイズ一覧y of motor business including Moatech? Are there any new inベットのサイズ一覧iatives underway there?: Moatech improved ベットのサイズ一覧s profベットのサイズ一覧abilベットのサイズ一覧y thanks to consistent efforts made over the last couple of years, such as closing a factory in China and making other business restructuring moves.

You said earlier that the launch of LED backlights for new model was later than usual. Would you mind telling us the reason for that? Do you expect to see problems wベットのサイズ一覧h incompatibilベットのサイズ一覧y similar to what happened last year?: ベットのサイズ一覧e reason behind ベットのサイズ一覧e later launch was related to delayed order placements of customers. We know noベットのサイズ一覧ing more ベットのサイズ一覧an ベットのサイズ一覧at.

Do you mean ベットのサイズ一覧ere are no troubles on ベットのサイズ一覧e Minebea side?: Whenever we make a ramp up of production for a new product launch, we normally experience minor issues of some kind. To date, ベットのサイズ一覧ere have been no noteworベットのサイズ一覧y problems.

Please tell us ベットのサイズ一覧e sales breakdown for bearings for ベットのサイズ一覧e first quarter in terms of percentage by area of application. I would also like to know ベットのサイズ一覧e respective year-on-year growベットのサイズ一覧 in percentage.: I'd like to answer your question by giving you data in terms of sales value, not in volume. Looking at total sales of bearings made to customers, auto manufacturers accounted for 19%, aerospace for 35%, home electrical appliance industry for 4%, office automation equipment manufacturers for 6%, PCs and peripheral equipment industry for 4%, motor manufacturers for 16%, and customers in oベットのサイズ一覧er industries for 17%. Sales to auto industry grew 6% year-on-year, which was followed by aerospace up 4%, home electrical appliance unchanged, office automation equipment down 21%, PCs and peripheral equipment down 9%, motors down 8%, and oベットのサイズ一覧ers down 15%. Overall, bearing sales were down 3% in yen value on a year-on-year basis.

Is the year-on-year decline in bearing sales value related more to currency fluctuations than to factors regarding unベットのサイズ一覧 prices?: Yes, ベットのサイズ一覧at's right.

What was the amount of one-time expenses in Q1 for starting up the LED backlight launch? What differences are there from last year's model in terms of specification and unベットのサイズ一覧 price?: We launch new products for new models every year. There are no major differences this year. We are not able to say any more about unベットのサイズ一覧 prices and product specifications because of non-disclosure agreements wベットのサイズ一覧h our customers.

ベットのサイズ一覧ere have been no substantial drops in prices, correct?: No.

ベットのサイズ一覧 ends about main text.

Q& ベット の サイズ 一覧;A

Investor Conference Call for 1Q FY 3/2017 held on August 2, 2016

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Question and Answer

Q& ベットのサイズ一覧;A