Results Summary
Latest Update : May 11, 2020
Back to Financial Results (FY3/2020)
Overview for the FY3/2020 (From April 1, 2019 to March 31, 2020)
During the fiscal year under review, the Japanese economy fell into decline. From the beginning of the fiscal year, overseas economies decelerated, and automobile sales fell both in Japan and abroad, while exports and capital investment decreased sharply in response to the spread of the new coronavirus from the fourth quarter. In the United States, the economy had been going strong with the stock market recording record highs in response to progress on trade negotiations with China, but the outlook is now highly uncertain due to the subsequent spread of the coronavirus. Meanwhile, in Europe, exports dropped in response to Brexit and the spread of the new coronavirus, and the economy slowed. In Asia, there were signs of bottoming out due to the support of economic policy in China and progress on trade negotiations between the United States and China, but economic activity ended up shrinking dramatically in response to the spread of the new coronavirus.
Working against this backdrop, the MinebeaMitsumi Group concentrated 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 were up 93,722 million yen (10.6%) year on year to 978,445 million yen, the highest since our founding. Operating income was down 13,386 million yen (-18.6%) year on year to 58,647 million yen, profit before income taxes was down 13,232 million yen (-18.6%) to 58,089 million yen, and profit for the year attributable to owners of the parent was down 14,167 million yen (-23.6%) to 45,975 million yen.
U-Shin Ltd. was made a subsidiary through a tender offer on April 10, 2019. The company has been included in the scope of consolidation as of the date of the business integration. This includes the company's profits and losses from the date of the business integration on.
Performance by Segment for the FY3/2020 (From April 1, 2019 to March 31, 2020)
In conjunction with the acquisition of U-Shin Ltd., the U-Shin business is disclosed as a reporting segment from the first quarter. Additionally, the battery module products that were included under the MITSUMI business were transferred to the Electronic devices and components business. Accordingly, segment information has been updated to reflect this change in company organization.
The segment information disclosed for the previous year has been prepared based on the post-change reportable segments.
Machined Components Business Segment
The main 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 aircraft. Sales of ball bearings were down both in volume and amount due to decreased demand from fan motors despite solid demand in the automobile and air conditioner market.
Rod-end bearing sales increased owing to favorable orders in other aircraft and other products, despite the impact of reduced production in B737MAX. Pivot assembly sales were down both in volume and amount due to shrinking of the HDD market.
As a result, net sales were down 7,439 million yen (-4.0%) year on year to 180,885 million yen, and operating income was down 7,876 million yen (-16.5%) to 39,874 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers, and special devices. Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong. Sales of stepping motors and other motors were down due to decreased demand associated with sluggishness in the automobile market.
As a result, net sales were down 18,175 million yen (-4.6%) year on year to 379,422 million yen, and operating income was up 510 million yen (3.0%) to 17,552 million yen.
Mitsumi Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Although camera actuators performed well, sales were down due to the decrease in game consoles and other mechanical components.
As a result, net sales were down 5,876 million yen (-2.0%) year on year to 292,243 million yen, and operating income was down 3,505 million yen (-15.8%) to 18,656 million yen.
U-Shin Business
The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial machinery components and housing equipment components (such as building and house locks). Operations related to automotive components were reduced due to the impact of deceleration in the automotive market in China and Europe and the spread of the new coronavirus ,etc.
As a result, net sales were 125,145 million yen, and operating income was 2,598 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 67 million yen (9.7%) year on year to 750 million yen, but the operating loss grew 1,117 million yen to 1,502 million yen.
In addition to the figures noted above, 18,531 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments in the previous fiscal year came to 14,535 million yen.
Analysis of Financial Position for the FY3/2020 (From April 1, 2019 to March 31, 2020)
Assets, Liabilities, and Net Assets
Total assets at the end of the fiscal year under review were 864,481 million yen, up 122,354 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in trade and other receivables, inventories and property, plant and equipment.
Total liabilities were up 127,338 million yen year on year to 462,205 million yen. The main reason for this was an increase in trade and other payables and bonds and borrowings.
Equity came to 402,276 million yen, bringing the equity ratio attributable to owners of the parent down 8.3 percentage points from the end of the previous fiscal year to 45.6%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the fiscal year under review was up 8,314 million yen year on year to 130,746 million yen.
Cash flows from various business activities during the fiscal year under review and other relevant factors are as follows:
Cash flows from operating activities came to 86,486 million yen (compared to 100,722 million yen in the previous fiscal year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, and inventories. Cash flows from investing activities came to 43,540 million yen (compared to 54,190 million yen in the previous fiscal year). This was primarily due to purchase of property, plant and equipment, etc. Net cash used in financing activities came to 28,758 million yen (compared to 13,334 million yen in the previous fiscal year). This was primarily due to repayments of long-term borrowings, purchase of treasury stock and dividends paid, despite proceeds from long-term borrowings.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2020 (From April 1, 2019 to March 31, 2020)" announced on May 8, 2020.
