Results Summary
Latest Update : Nov.8, 2021
Back to Financial Results (FY3/2022)
Overview for the 1H of FY 3/2022 (From April 1, 2021 to September 30, 2021)
During the six months ended September 30, 2021, the Japanese economy was on the rise due to an increase in exports against a backdrop of economic recovery abroad. This was despite sluggish consumer spending resulting from the extension of the state of emergency due to the resurgence of COVID-19. The U.S. economy was also bouncing back owing primarily to an increase in exports and corporate capital investment despite a decrease in automobile production due to the semiconductor shortage and the disruption of distribution. The European economy, too, is showing signs of a recovery. These include a resumption of consumer spending owing to the relaxation of restrictions as more people are vaccinated and an expansion of exports, particularly to the U.S. Meanwhile, the economic recovery in China has slowed due primarily to tightening of government-led infrastructure and real estate development investments. In Southeast Asia, the future of the economy remains uncertain as exports decelerate in conjunction with lockdowns imposed due to the spread of the Delta variant.
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 68,530 million yen (14.8%) year on year to 530,260 million yen. Operating income was up 23,711 million yen (113.3%) year on year to 44,633 million yen, profit before income taxes was up 24,069 million yen (118.9%) year on year to 44,319 million yen, and profit for the period attributable to owners of the parent was up 19,627 million yen (127.3%) year on year to 35,052 million yen.
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 half of the previous year.
Performance by Segment for the 1H of FY 3/2022 (From April 1, 2021 to September 30, 2021)
From the first quarter of the fiscal year, the classification of reporting segments has been changed for some businesses. The segment information disclosed for the first half of the previous year has been prepared based on the classification of reporting segments after the corporate organization change.
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 up owing to favorable demand for use in fan motors associated with solid server demand at data centers. Rod-end bearing sales decreased due to decreased aircraft-related demand.
As a result, net sales were up 14,809 million yen (20.1%) year on year to 88,357 million yen, and operating income was up 8,752 million yen (62.2%) year on year to 22,819 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 LED backlights for LCDs was down due to a decrease in the number of smartphone models using them, but net sales were up owing to increased demand for automotive motors.
As a result, net sales were up 13,529 million yen (7.9%) year on year to 184,127 million yen, and operating income was up 6,127 million yen (78.4%) year on year to 13,941 million yen.
Mitsumi Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components and smart product.
Semiconductor and optical devices for camera actuators performed well, resulting in an increase in net sales.
As a result, net sales were up 23,333 million yen (14.2%) year on year to 187,710 million yen, and operating income was up 8,727 million yen (113.5%) to 16,414 million yen.
U-Shin Business
The main products of U-Shin business are key sets, door latches, door handles, and other automotive components as well as industrial equipment components.
Net sales were up owing to a recovery in demand for automotive components associated with a recovery in the automotive market and favorable demand for industrial equipment components used in agricultural and construction machinery.
As a result, net sales were up 16,781 million yen (31.8%) year on year to 69,579 million yen, and operating loss was 104 million yen, an improvement of 1,723 million yen year on year due to increased sales.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 78 million yen (19.0%) year on year to 487 million yen, while the operating loss increased 86 million yen year on year to total 910 million yen.
In addition to the figures noted above, 7,527 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 5,995 million yen for the first half of the previous fiscal year.
Analysis of Financial Position for the 1H of FY 3/2022 (From April 1, 2021 to September 30, 2021)
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 second quarter were 1,030,021 million yen, up 53,250 million yen from the end of the previous fiscal year. This was primarily due to increases and decreases in inventories, property, plant and equipment, and trade and other receivables.
Total liabilities at the end of the second quarter were 568,610 million yen, up 45,837 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables, bonds, and borrowings.
Equity came to 461,411 million yen, bringing the equity ratio attributable to owners of the parent down 1.7 percentage points from the end of the previous fiscal year to 44.5%.
Condition of Cash Flows
Cash and cash equivalents at the end of the second quarter were 167,062 million yen, up 1,583 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first fiscal half and relevant factors were as follows:
Net cash provided by operating activities came to 34,783 million yen (compared to 7,731 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 payables and inventories.
Net cash used in investing activities came to 25,163 million yen (compared to 47,455 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment and proceeds from sale and redemption of securities, etc.
Net cash used in financing activities came to 7,185 million yen (compared to 33,425 million yen provided by financing activities in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings, purchase of treasury stock and dividends paid.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2022 (From April 1, 2021 to September 30, 2021)" announced on November 5, 2021.
