Results Summary
Latest Update : Nov.7, 2023
Back to Financial Results (FY3/2024)
Overview for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
During the six months ended September 30, 2023, the Japanese economy saw a gradual recovery as economic activities normalized from the COVID pandemic and personal consumption and corporate earnings were favorable. In the U.S. economy, although personal consumption and exports have been firm, the outlook is uncertain as firms' economic activity has been restrained by their continued monetary tightening policies. In Europe, the economy was sluggish due to stagnant personal consumption caused by prolonged high inflation and soaring energy prices. In China, the real estate market was sluggish and economic activity was slowing. Against this backdrop, exports of mobile phones and other IT related products fell sharply, and the economy stagnated. In Southeast Asia, despite the downward pressure on the economy caused by a decline in exports due to a slowdown in global demand, domestic demand, particularly personal consumption, was favorable, and the economy remained steady.
Working against this backdrop, the MinebeaMitsumi Group (the "Group") has focused 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 91,056 million yen (15.7%) year on year to 672,117 million yen. Operating income was down 13,424 million yen (-33.1%) year on year to 27,162 million yen, profit before income taxes was down 12,194 million yen (-28.8%) to 30,201 million yen, and profit for the period attributable to owners of the parent was down 11,156 million yen (-36.3%) to 19,600 million yen.
The above includes the profit and loss of HONDA TSUSHIN KOGYO CO., LTD. acquired on September 16, 2022 and Minebea AccessSolutions Inc. (former Honda Lock Mfg. Co., Ltd.) acquired on January 27, 2023.
Performance by Segment for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
Performance by segment was as follows:
The previous names of "Machined Components segment", "Electronic Devices and Components segment", "MITSUMI Business segment" and "U-Shin Business segment" have been changed to "Precision Technologies segment", "Motor, Lighting & Sensing segment", "Semiconductor & Electronics segment", and "Access Solutions segment" respectively from the first quarter of the fiscal year. This change in the name of reportable segments has no impact on segment information.
In addition, as a result of the change in the corporate organization, some classification in "Other" and "Adjustments" have changed from the first quarter of the fiscal year. As a result of the change in the corporate organization, some classifications in "Semiconductor & Electronics" and "Other" have changed from the third quarter of the previous year. The segment information disclosed for the first six months of the previous year has been prepared based on the classification of reporting segments after the corporate organization change.
Precision Technologies
The main products in Precision Technologies 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, the Group's mainstay product, decreased mainly due to a decrease in demand for use in data centers, despite firm demand for use in automobiles. In addition, sales of pivot assemblies declined as demand for HDD applications did not recover, but sales of rod-end bearings increased due to a recovery in demand for aircraft-related products.
As a result, net sales were up 1,673 million yen (1.7%) year on year to 99,361 million yen, while operating income was down 5,476 million yen (-24.1%) to 17,250 million yen.
Motor, Lighting & Sensing
The main products of Motor, Lighting & Sensing 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.
Sales increased mainly due to an increase in demand for automotive motors.
As a result, net sales were up 1,064 million yen (0.6%) year on year to 180,469 million yen, and operating income was up 1,982 million yen (57.4%) to 5,445 million yen.
Semiconductors & Electronics
The main products in Semiconductor & Electronics segment are semiconductor devices, optical devices, mechanical components, power supply components, and smart products.
Sales increased due to steady sales of mechanical components.
As a result, net sales were up 15,024 million yen (6.7%) year on year to 238,803 million yen, and operating income was down 11,591 million yen (-47.0%) to 13,094 million yen.
Access Solutions
The main products of Access Solutions segment are key sets, door latches, door handles, and other automotive components as well as industrial equipment components.
In addition to the business integration of Minebea AccessSolutions Inc., net sales were up owing to recovered demand resulting from a recovery in automobile production.
As a result, net sales were up 72,271 million yen (91.5%) year on year to 151,217 million yen, and operating income was up 359 million yen (118.9%) to 660 million yen.
Other Business Segment
Software design, development, and machines produced in-house are the main products in our Other business segment.
Net sales were up 1,024 million yen (82.2%) year on year to 2,267 million yen, and operating income was down 130 million yen for an operating loss of 194 million yen.
In addition to the figures noted above, 9,093 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 10,525 million yen for the same period of the previous fiscal year.
Analysis of Financial Position for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
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 1,422,789 million yen, up 118,808 million yen from the end of the previous fiscal year. This was primarily due to increases in property, plant and equipment, inventories, and trade and other receivables.
Total liabilities at the end of the second quarter were 735,586 million yen, up 74,883 million yen from the end of the previous fiscal year. The main reason for this was an increase in bonds, and borrowings, trade and other payables.
Equity came to 687,203 million yen, bringing the equity ratio attributable to owners of the parent down 1.0 percentage points from the end of the previous fiscal year to 47.5%.
Condition of Cash Flows
Cash and cash equivalents at the end of the second quarter were 140,433 million yen, down 4,238 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 in operating activities came to 26,600 million yen (compared to 5,800 million yen used in operating activities in the same period of the previous year). This was primarily due to changes in profit before income taxes, depreciation and amortization, and trade and other payables. Net cash used in investing activities came to 46,305 million yen (compared to 94,882 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment, marketable securities, etc. Net cash provided by financing activities came to 7,984 million yen (compared to 69,236 million yen in the same period of the previous year). This was primarily due to proceeds from long-term borrowings.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2024 (From April 1, 2023 to September 30, 2023)" announced on November 2, 2023.
