Results Summary
Latest Update : Aug.4, 2020
Back to Financial Results (FY3/2021)
Overview for the 1Q of FY 3/2021 (From April 1, 2020 to June 30, 2020)
During the first quarter of the fiscal year (April 1, 2020 through June 30, 2020), the Japanese economy was hit by the largest economic downturn since the global financial crisis triggered by the Lehman Brothers bankruptcy. The factors behind this downturn include substantial declines in exports and consumption, especially of automobiles, resulting from the spread of COVID-19, declining corporate earnings, reduced capital investment, and the deteriorating employment environment. In the United States, aggressive monetary easing steps have been taken, but the global economic downswing caused by the spread of COVID-19 and trade friction with China have resulted in a substantial decrease in exports and capital investment. In Europe, the prolonged lockdown to prevent the spread of COVID-19 and other factors resulted in an economic downturn. In Asia, the economy remains sluggish as a result of slow recovery of the global economy, despite China's resumption of economic activity and auto sales recovery supported by the Chinese government's preferential treatment policies for automobile purchases.
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 down 16,962 million yen (-8.3%) year on year to 187,463 million yen. Operating income was up 2,040 million yen (61.4%) year on year to 5,364 million yen, profit before income taxes was up 1,933 million yen (57.9%) to 5,274 million yen, and profit for the period attributable to owners of the parent was up 1,400 million yen (64.4%) to 3,573 million yen.
ABLIC Inc. was made a subsidiary on April 30, 2020. The company has been included in the scope of consolidation in conjunction with the business integration. This includes the company's profits and losses from the date of the integration on.
Provisional accounting treatments for business combinations were finalized at the end of the previous fiscal year, and the contents of finalization of the provisional accounting treatments are reflected on the figures for the first quarter of the previous year.
Performance by Segment for the 1Q of FY 3/2021 (From April 1, 2020 to June 30, 2020)
Performance by segment was as follows:
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 in the automobile market despite solid demand from fan motors. Rod-end bearing sales were down due to decreased aircraft-related demand. Pivot assembly sales were down both in volume and amount due to shrinking of the HDD market.
As a result, net sales were down 10,546 million yen (-22.9%) year on year to 35,507 million yen, and operating income was down 3,547 million yen (-33.2%) to 7,152 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 stepping motors and other motors was down due to sluggishness in the automobile market, but demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong, resulting in an increase in sales.
As a result, net sales were up 2,036 million yen (2.6%) year on year to 79,675 million yen, and operating income was 2,189 million yen, an improvement of 2,766 million yen year on year.
Mitsumi Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Camera actuators performed well as did game consoles and other mechanical components, resulting in an increase in net sales.
Profit and loss of ABLIC Inc. are included in the MITSUMI business segment in conjunction with its acquisition.
As a result, net sales were up 6,978 million yen (14.1%) year on year to 56,632 million yen, and operating income was up 1,354 million yen to 1,370 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 components and housing equipment components (such as building and house locks). Sales of automotive components were down substantially due to deceleration of the automotive market as a result of the spread of COVID-19. Market deceleration also caused a decrease in sales of industrial components.
As a result, net sales were down 15,153 million yen (-49.3%) year on year to 15,581 million yen, and the operating loss increased 2,846 million yen year on year to total 2,169 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were down 277 million yen (-80.2%) year on year to 68 million yen, and the operating loss increased 60 million yen year on year to total 427 million yen.
In addition to the figures noted above, 2,751 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 7,124 million yen for the first quarter of the previous fiscal year.
Analysis of Financial Position for the 1Q of FY 3/2021 (From April 1, 2020 to June 30, 2020)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient controlling of capital investments, asset management, and reducing interest-bearing debt. We will reform our portfolio to increase the weight of our highly profitable core businesses and engage in highly effective M&A, promoting an appropriate and flexible financial strategy.
Total assets at the end of the first quarter were 940,009 million yen, up 75,528 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in inventories, goodwill, and property, plant and equipment.
Total liabilities at the end of the first quarter were 532,605 million yen, up 70,400 million yen from the end of the previous fiscal year. The main reason for this was bonds and borrowings and trade and other payables.
Equity came to 407,404 million yen, bringing the equity ratio attributable to owners of the parent down 2.6 percentage points from the end of the previous fiscal year to 43.0%.
Condition of Cash Flows
Cash and cash equivalents at the end of the first quarter were 136,932 million yen, up 6,186 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first three months of the fiscal year and relevant factors were as follows:
Net cash flows provided by operating activities came to 3,537 million yen (compared to 2,934 million yen in the same period of the previous year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, and inventories. Net cash flows used in investing activities came to 34,108 million yen (compared to 11,787 million yen in the same period of the previous year). This was primarily due to purchase of investments in subsidiaries resulting in change in scope of consolidation and purchase of property, plant and equipment, etc. Net cash flows provided by financing activities came to 35,962 million yen (compared to 10,112 million yen used in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings.
The content of this page is based on information included in the "Brief Report for First Quarter of Fiscal Year Ending March 2021 (From April 1, 2020 to June 30, 2020)" announced on August 4, 2020.
