Results Summary
Latest Update : May 12, 2023
Back to Financial Results (FY3/2023)
Overview for the FY 3/2023 (From April 1, 2022 to March 31, 2023)
During the consolidated fiscal year, the Japanese economy showed signs of a moderate recovery with a resumption of consumer spending owing to the easing of COVID-19 related restrictions on movement. The U.S. economy continued to raise interest rates to curb inflation while employment and individual income were increasing, and as a result the economic upswing was limited. In Europe, resource prices remain high due to a reduced supply of natural resources from Russia in conjunction with its aggression against Ukraine, so the future remains uncertain. The future of the Chinese economy remains uncertain since the economy was sluggish mainly in the real estate market while the normalization of economic activity progressed with the easing of restrictions on movement based on the government's zero-COVID policy. In Southeast Asia, the return of economic activity following the easing of COVID-19 related restrictions on movement ensured economic recovery was on track.
Working against this backdrop, the MinebeaMitsumi Group (our "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 168,063 million yen (15.0%) year on year to 1,292,203 million yen. Operating income was up 9,386 million yen (10.2%) year on year to 101,522 million yen, profit before income taxes was up 5,332 million yen (5.9%) year on year to 96,120 million yen, and profit for the year attributable to owners of the parent was up 8,075 million yen (11.7%) year on year to 77,010 million yen. In each of these three areas we achieved record highs.
HONDA TSUSHIN KOGYO CO., LTD. was made a subsidiary on September 16, 2022 and Minebea AccessSolutions Inc. was made a subsidiary on January 27, 2023 (at the same time, renamed Honda Lock Mfg. Co., Ltd.). Those companies have been included in the scope of consolidation. In addition to the companies' profits and losses from the date of the business integration on, the above includes 25,728 million yen of negative goodwill arising from the business combination with Minebea AccessSolutions Inc.
Performance by Segment for the FY 3/2023 (From April 1, 2022 to March 31, 2023)
Performance by segment is as follows:
As a result of the reorganization of the Company from the current consolidated fiscal year, some categories were changed in "Others" and "Adjustments." Segment information for the previous fiscal year is disclosed based on the classification after the corporate reorganization.
Machined Components Business Segment
The main products in our Group's Machined components segment include our Group's 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, our Group's mainstay product, increased due to an increase in demand for automotive parts in line with a recovery in automobile production. Sales of rod-end bearings increased due to a recovery in demand for aircraft-related products. Meanwhile, net sales of pivot assemblies decreased due to a decrease in demand.
As a result, net sales were up 19,830 million yen (11.2%) year on year to 197,300 million yen, while operating income was down 2,766 million yen (-6.1%) year on year to 42,951 million yen.
Electronic Devices and Components Business
The core products of our Group's 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 were down, primarily due to a decline in models using LED backlights and a decline in demand for HDD spindle motors.
As a result, net sales were down 4,748 million yen (-1.3%) year on year to 366,275 million yen, and operating income was down 20,639 million yen (-95.7%) year on year to 922 million yen.
MTSUMI Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components, and smart products. Optical devices for camera actuators performed well, resulting in an increase in net sales. Profit and loss of HONDA TSUSHIN KOGYO CO., LTD. are included in the MITSUMI business segment in conjunction with its acquisition.
As a result, net sales were up 101,348 million yen (23.6%) year on year to 530,464 million yen, and operating income also increased by 894 million yen (2.1%) year on year to 42,740 million yen.
U-Shin Business
The main products of the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial equipment components. Net sales of automotive components were up owing to increased demand resulting from an increase in automobile production. In conjunction with the acquisition of Minebea AccessSolutions Inc., the earnings and gain on bargain purchase of the company are included in the U-Shin business.
As a result, net sales were up 49,122 million yen (33.7%) year on year to 194,699 million yen, and operating income was 22,302 million yen, an improvement of 21,570 million yen.
Other Business Segment
Machines produced in-house are the main products in our Group's Other business segment. Net sales were up 2,511 million yen (263.0%) year on year to 3,465 million yen, and operating loss was 1,290 million yen, an improvement of 49 million yen year on year.
In addition to the figures noted above, 6,103 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. This adjustment includes 13,016 million yen of gain on sale of fixed assets associated with the sale of the former Tokyo head office building. Adjustments in the previous fiscal year came to 16,381 million yen.
Analysis of Financial Position for the FY 3/2023 (From April 1, 2022 to March 31, 2023)
Assets, Liabilities, and Net Assets
Total assets at the end of the fiscal year under review were 1,303,967 million yen, up 199,775 million yen from the end of the previous fiscal year. This was primarily due to increases in property, plant and equipment, trade and other receivables and inventories.
Total liabilities were up 97,901 million yen year on year to 660,658 million yen. The main reason for this was an increase in bonds, and borrowings.
Equity came to 643,309 million yen, bringing the equity ratio attributable to owners of the parent down 0.3 percentage points from the end of the previous fiscal year to 48.5%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the fiscal year under review was down 18,917 million yen year on year to 144,671 million yen.
Cash flows from various business activities during the fiscal year under review and other relevant factors are as follows:
Net cash provided by operating activities amounted to 44,093 million yen (an inflow of 78,417 million yen in the previous fiscal year). This was primarily due to income before income taxes, depreciation and amortization, etc. Net cash used for investing activities amounted to 106,275 million yen (an outflow of 63,605 million yen in the previous fiscal year). This was primarily due to purchase of property, plant and equipment, etc. Net cash provided by financing activities amounted to 37,875 million yen (an outflow of 25,547 million yen in the previous fiscal year). This was primarily due to proceeds from long-term loans payable and proceeds from issuance of bonds, etc.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2023 (From April 1, 2022 to March 31, 2023)" announced on May 11, 2023.
