Results Summary
Latest Update : June 9, 2017
Back to Financial Results (FY3/2017)
Overview for the FY 3/2017 (From April 1, 2016 to March 31, 2017)
During the fiscal year under review, although the Japanese economy showed a gradual recovery in consumer spending backed by an improvement in employment and income conditions and increasing signs of a recovery in corporate production and exports, there was a growing sense of uncertainty about the future in the second half of the fiscal year due to concerns about the direction of policy taken by the new U.S. administration. The U.S. economy continued to grow moderately amid a recovery in domestic and foreign demand and heightened expectations concerning fiscal spending and tax cuts put forward by the new administration. The European economy remained robust across the board centered on internal demand, although Brexit has cast a shadow of uncertainty. Meanwhile, the sense of uncertainty in Asia cannot be cast aside despite the expectation that the Chinese economy will recover from its slowdown with the support of public investments.
Working against this backdrop, the MinebeaMitsumi Group has been concentrating on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
As a result, net sales increased by 29,112 million yen (4.8%) year on year to reach 638,926 million yen, a record high in net sales since the Company was founded. Operating income fell 2,423 million yen (-4.7%) year on year to total 49,015 million yen, and ordinary income was up 1,732 million yen (3.7%) year on year to total 48,393 million yen. Income attributable to owners of the parent increased 4,760 million yen (13.1%) year on year to reach 41,146 million yen, the highest level on record.
On January 27 2017, the Company performed a merger through a share exchange with MITSUMI ELECTRIC CO., LTD., which was included in the scope of consolidation from the merger date. The above figures include profit and losses of MITSUMI ELECTRIC CO., LTD. from the date of the merger, in addition to 14,619 million yen in bargain purchase (extraordinary gain) that arose due to business combination procedures, and a 6,196 million yen loss on bonds redemption (extraordinary loss) due to buy-back in order to prevent a dilution of our shares.
Performance by Segment for the FY 3/2017 (From April 1, 2016 to March 31, 2017)
Please be noted that the "MITSUMI business" has been recognized as a new reportable segment from this fiscal year as disclosed therein due to the business integration with MITSUMI ELECTRIC CO., LTD. through the acquisition of its shares.
Machined Components Business Segment
Products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for automobiles and aircraft. Although sales of ball bearings to external customers hit a record high as demand for energy-efficient models equipped with safety devices soared in the automobile market, sales revenues dropped due to currency fluctuations as well as other factors. Rod-end bearing sales also fell due primarily to declining production of large models in the civil aircraft market as well as the negative impact of the foreign exchange market among other factors. Even though the HDD market is shrinking, pivot assembly sales were up, yet sales revenues dropped due to currency fluctuations as well as other factors.
As a result, net sales decreased 7,501 million yen (-4.6%) year on year to reach 156,310 million yen, and operating income fell 1,707 million yen (-4.2%) year on year, to total 39,147 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers (fan motors), precision motors, and special devices. Demand for our LED backlights for LCDs that offer a technological advantage in thin smartphones continued to soar. While sales of stepping motors and other motors grew mainly in the automobile market, sales revenues were down due to currency fluctuations, etc.
As a result, net sales decreased 3,852 million yen (-0.9%) year on year to reach 441,615 million yen, and operating income fell 438 million yen (-2.0%) year on year, to total 21,898 million yen.
Mitsumi Business
The main products in the MITSUMI business are semiconductor devices, optical devices, mechanical parts, high frequency components and power supply components. Camera actuators, and products for smartphones such as switches and protection IC performed well in North America and China. Sales of automotive products such as antennas, communication modules and connectors have also increased.
As a result, net sales for the fiscal year under review were 40,342 million yen, and operating income was 2,315 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales increased 122 million yen (22.8%) year on year to reach 658 million yen, and the operating loss was up 4 million yen, to total 120 million yen.
In addition to the figures noted above, 14,223 million yen in corporate expenses, etc. not belonging to any particular segment has been recorded as adjustments. Adjustments for the previous fiscal year amounted to 11,627 million yen.
Analysis of Financial Position for the FY 3/2017 (From April 1, 2016 to March 31, 2017)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient asset management, controlling capital investments, and reducing interest-bearing debt.
Besides, acquisition of MITSUMI ELECTRIC CO., LTD. and its subsidiaries which are consolidated from this fiscal year is influencing an increase or decrease of assets and liabilities.
Total assets at the end of the consolidated fiscal year under review amounted to 643,312 million yen, up 183,885 million yen over what it was at the end of last fiscal year. The main reason for this uptick includes an increase in cash and deposits, and an increase in notes and accounts receivable.
Total liabilities at the end of the consolidated fiscal year under review amounted to 317,093 million yen, with a year on year increase of 95,639 million yen. This was primarily due to an increase in notes and accounts payable and an increase in bonds.
Net assets totaled 326,218 million yen, resulting in an equity ratio of 50.0%, down 0.2 percentage points year on year.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the consolidated fiscal year under review totaled 78,832 million yen, up 49,690 million yen from what it was at the end of the previous fiscal year due to an increase of 32,472 million yen arising from the consolidation of MITSUMI ELECTRIC CO., LTD. and its subsidiaries.
Cash flows from various business activities during the consolidated fiscal year under review and relevant factors were as follows:
Net cash provided by operating activities totaled 83,125 million yen. That amounts to a 39,543 million yen year on year rise due to income before income taxes, changes in inventories, notes and accounts receivable, notes and accounts payable and depreciation and amortization costs, as well as the occurrence of a gain on bargain purchase, etc.
Net cash used for investment activities increased 2,158 million yen year on year to total 46,800 million yen due primarily to the acquisition of marketable securities and tangible fixed assets. Net cash from financing activities totaled 17,339 million yen, due to increases and decreases in debt as well as the issuance and redemption of bonds, etc. leading to a 13,139 million yen year on year increase in cash outflows.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2017 (From April 1, 2016 to March 31, 2017)" announced on May 9, 2017.
