Results Summary
Latest Update : Feb.5, 2021
Back to Financial Results (FY3/2021)
Overview for the 3Q of FY 3/2021 (From April 1, 2020 to December 31, 2020)
During the first nine months of the fiscal year (April 1, 2020 to December 31, 2020), the future of the Japanese economy remained uncertain. Although exports and consumption declined substantially due to the spread of COVID-19, the worst appears to be behind us as automobile sales recover globally and exports, particularly to China, have rebounded. In the United States, aggressive monetary easing steps have been taken, but the global economic downswing caused by the spread of COVID-19 has resulted in a substantial decrease in exports and capital investment. In Europe, lockdowns implemented due to the prolonged impact of COVID-19 have caused significant economic deceleration. In Asia, China saw resumed economic activity. In addition to this, investment by the Chinese government in infrastructure, real estate, and information and communications brought on a trend toward recovery. However, the future remains uncertain due to concern over further intensification of trade friction between the United States and China.
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 14,109 million yen (-1.9%) year on year to 737,439 million yen. Operating income was down 3,730 million yen (-8.1%) year on year to 42,516 million yen, profit before income taxes was down 4,578 million yen (-9.9%) to 41,641 million yen, and profit for the period attributable to owners of the parent was down 2,563 million yen (-7.2%) to 32,984 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 business integration on.
Provisional accounting treatments for business combinations through acquisition of U-Shin Ltd. 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 same period of the previous year.
Performance by Segment for the 3Q of FY 3/2021 (From April 1, 2020 to December 31, 2020)
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 due to decreased demand in the automobile market despite solid demand from fan motors. Rod-end bearing sales decreased due to decreased aircraft-related demand. Pivot assembly sales were down due to shrinking of the HDD market.
As a result, net sales were down 23,161 million yen (-17.0%) year on year to 113,268 million yen, and operating income was down 8,120 million yen (-26.6%) to 22,376 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. Net sales of LED backlights for LCDs were down due to decreased demand associated with a decrease in the number of smartphone models using them.
As a result, net sales were down 21,438 million yen (-7.4%) year on year to 268,952 million yen, and operating income was down 2,870 million yen (-19.3%) to 11,969 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. Semiconductor and optical devices 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 51,796 million yen (22.5%) year on year to 281,617 million yen, and operating income was up 4,486 million yen (31.0%) to 18,940 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. Market deceleration also caused a decrease in sales of industrial components.
As a result, net sales were down 21,397 million yen (-22.7%) year on year to 72,870 million yen, and operating income was down 2,195 million yen (-76.1%) to 689 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 91 million yen (14.2%) year on year to 732 million yen, while the operating loss increased 217 million yen year on year to total 1,335 million yen.
In addition to the figures noted above, 10,123 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 15,309 million yen for the same period of the previous fiscal year.
Analysis of Financial Position for the 3Q of FY 3/2021 (From April 1, 2020 to December 31, 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 third quarter were 954,715 million yen, up 90,234 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in trade and other receivables, goodwill, and property, plant and equipment.
Total liabilities at the end of the third quarter were 524,297 million yen, up 62,092 million yen from the end of the previous fiscal year. The main reason for this was an increase in bonds and borrowings.
Equity came to 430,418 million yen, bringing the equity ratio attributable to owners of the parent down 0.8 percentage points from the end of the previous fiscal year to 44.8%.
Condition of Cash Flows
Cash and cash equivalents at the end of the third quarter were 134,497 million yen, up 3,751 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first nine months of the fiscal year and relevant factors were as follows:
Net cash provided by operating activities came to 43,744 million yen (compared to 52,706 million yen in the same period of the previous year). This was primarily due to profit before income taxes, depreciation and amortization, increases and decreases in trade and other receivables, and in trade and other payables. Net cash flows used in investing activities came to 57,781 million yen (compared to 36,398 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment and purchase of investments in subsidiaries resulting in change in scope of consolidation, etc. Net cash flows provided by financing activities came to 19,884 million yen (compared to 9,830 million yen used in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings, etc.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2021 (From April 1, 2020 to December 31, 2020)" announced on February 5, 2021.
