MinebeaMitsumi Inc. (6479)

Equity Research 28 July 2026 | 6:38PM JST

MinebeaMitsumi Inc. (6479.T): Outside director meeting: Advancing HR development, profitability, governance as scale expands; Buy

MinebeaMitsumi hosted a meeting with its outside directors from 14:30 JST on July Daiki Takayama | 28. Key takeaways are as follows. (1) Human resource development: Management is Goldman Sachs Japan Co., Ltd. advancing efforts to enhance employee engagement, develop leadership talent, and Mitsuhiro Icho further utilize global human resources. (2) Strengthening profitability: While | profitability in ball bearings is high, improving profitability in underperforming areas Goldman Sachs Japan Co., Ltd.

remains a key challenge. Although the effects of the “Sogo” (integration) strategy Makoto Takahara | may not always be easy to gauge, synergies are being realized in areas such as mass Goldman Sachs Japan Co., Ltd. production, quality, customers, and the global manufacturing base. Management acknowledges conglomerate discount concerns. (3) Business evaluation under Yuji Hidaka | ROIC management: Performance data are shared and discussed with outside Goldman Sachs Japan Co., Ltd.

directors using a 6% cost of capital and an 8% ROIC hurdle rate as benchmarks. Future assumptions for each business are scrutinized for any sign of bias. (4) Top-down management: The company recognizes the key role of outside directors in ensuring robust governance when a single executive provides long-term leadership. It has strengthened mechanisms for identifying deviations from performance targets, evaluating the outcomes of large-scale M&A, enhancing quality control, compliance, and whistleblowing systems. The number of internal audit personnel has been increased. Cross-functional strengthening of back-office departments across the 145 group companies remains a challenge. (5) Points raised regarding acquisition deals: When the Shibaura Electronics acquisition deal emerged, the board of directors met 10 times, raising key issues such as the risk of goodwill impairment and the need for thorough factory due diligence. (6) Outside directors with management experience: Currently, internal directors who also serve as executive officers make up the majority of the board, and there was a gap in perspective with outside directors. In June, Katsumi Ihara, a new outside director with management experience, joined the board (Mr Ihara was a former Executive Deputy President of Sony and President/Chairman of Sony Group companies, and served as Outside Director and Chairman of the Board at Hitachi).

The meeting confirmed the company’s direction in advancing and developing initiatives in talent development, profitability, and governance in alignment with changes at the company, including the expansion of its global footprint and substantial growth in scale, including through M&A. Our impression is that management is fully aware of the issues and present situation it faces, and we believe it is working toward establishing mechanisms that ensure execution. As the business enters a phase of further diversification amid a major wave of technological change, including AI servers and physical AI, we are reminded of

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs MinebeaMitsumi Inc. (6479.T)

the importance of role of outside directors. We maintain our Buy rating.

Price Target Risks and Methodology - MinebeaMitsumi We are Buy-rated. Our 12-month price target is ¥5,500, based on FY3/29E EV/GCI vs. CROCI/WACC, applying the sector average EV/DACF multiple of 10X. Our target price implies FY3/28E P/E of 20X. Key risks include sharper-than-expected rises in input costs, a decline in auto production, and forex swings.

6479.T 12m…