Briefing on items on the agenda by Chairman
Back to Shareholders' Meetings (Year 2006)
The 60th Ordinary General Meeting of Shareholders
1. Business Report
We gave a brief explanation in line with what is stated on pages from 3 to 12 of the Business Report for the 60th Business Term.
2. Consolidated Balance Sheet
We gave a brief explanation as follows with regard to Balance Sheet shown on page 23 of the Business Report for the 60th Business Report.
| First, we will give a brief explanation with regard to the assets section. Items under current assets that allowed major fluctuations compared with the previous term are: | |
|---|---|
| Cash and cash equivalents | an increase of 2,626 million yen |
| Notes receivable and accounts receivable-trade | an increase of 3,751 million yen |
Cash and cash equivalents increased 2,626 million yen, due principally to a rise in revenues from operating activities and a decrease in expenditures on investment activities.
Notes receivable and accounts receivable-trade rose 3,751 million yen, due mainly to growth in net sales and an increase in these accounts brought by exchange rate fluctuations.
As a result, total current assets rose 6,268 million yen year on year, to 153,564 million yen.
| Under fixed assets, tangible fixed assets rose 9,238 million yen year on year, due mainly to: | |
|---|---|
| Increase brought by exchange rate fluctuations | 14,183 million yen |
| Increase in capital investments | 21,897 million yen |
| Decrease in depreciation | 23,252 million yen |
| Decrease from impairment of idle assets | 967 million yen |
Under investments and other assets, investments in securities rose 4,654 million yen year on year. This was due mainly to a gain of 4,677 million yen on revaluation of listed stocks.
As a result, total fixed assets rose 11,407 million yen year on year, to 196,216 million yen.
Total assets increased 17,645 million yen from the previous year, to 349,862 million yen.
Let us move on to liabilities. A primary fluctuation item under this section compared with the previous year is an allowance of 3,286 million yen for business restructuring losses, reasonably estimated charges expected to be incurred under the structural reform plan for the PC keyboard business, etc. decided in the current consolidated fiscal year.
When balances of loans payable under current liabilities and long-term liabilities were put together, the total balance of short-term loans payable, long-term debt, corporate bonds, etc. decreased 1,180 million yen from the previous year, to 171,271 million yen.
Let us move on to the section of shareholders' equity. Under this section, net income recorded 4,257 million yen. On the other hand, dividends of 2,793 million yen were paid.
In addition to these, there were an increase of 2,853 million yen in differences on revaluation of other marketable securities reflecting the market value accounting of listed stocks; and a rise of 11,181 million yen in foreign currency transaction adjustments. Total shareholders' equity rose 15,489 million yen year on year, to 117,577 million yen.
As a result, total liabilities, minority interests in consolidated subsidiaries and shareholders' equity increased 17,645 million yen from the previous year, to 349,862 million yen.
3. Consolidated Profit and Loss Statement
We will continue to make a report on details of Consolidated Profit and Loss Statement. Please refer to page 24 of the Business Report of the 60th Business Term.
First, net sales increased 24,023 million yen from the previous year, to 318,446 million yen.
This was due mainly to a rise of 11,922 million yen brought by exchange rate fluctuations, and growth in sales of such products as rod-end bearings to the strong aerospace industry; pivot assemblies to the expanded HDD market; and LED backlight assemblies for LCDs.
Cost of sales increased 17,915 million yen from the previous year, to 249,934 million yen.
As a result, gross profit increased 6,108 million yen year on year, to 68,511 million yen.
Selling, general and administrative expenses rose 922 million yen year on year, to 49,242 million yen.
As a result, operating income increased 5,185 million yen year on year, to 19,269 million yen.
The major reasons for this increase are an increase in profits on growth in sales of such products as rod-end bearings to the strong aerospace industry; pivot assemblies to the expanded HDD market; rotary components; and LED backlight assemblies for LCDs, as well as an improvement in earnings, including a substantial cost reduction in spindle motors.
The net balance of other income and expenses after deducting other expenses from other income was an outlay of 4,674 million yen. This represents a year-on-year increase of 798 million yen in outlays from the year-ago outlay of 3,876 million yen.
As a result, ordinary income rose 4,388 million yen from the previous year, to 14,595 million yen.
Total extraordinary income was 1,054 million yen.
The major contributors to this income are a gain of 415 million yen on sales of fixed assets and a gain of 447 million yen on reversal of preemptive rights.
Total extraordinary loss was 6,029 million yen.
The major contributors to this loss are mainly an impairment loss of 967 million yen; a business restructuring loss of 3,475 million yen; and retirement benefits to directors and corporate auditors of 458 million yen.
As a result, net income was 4,257 million yen, reflecting total income taxes of 7,141 million yen.
4. Non-Consolidated Balance Sheet
| First, we will give a brief explanation with regard to the non- consolidated assets section. Please refer to page 13 of the Business Report of the 60th Business Term. Items under current assets that allowed major fluctuations compared with the previous term are: |
|
|---|---|
| Cash and cash equivalents | a decrease of 1,466 million yen |
| Accounts receivable-trade | an increase of 4,794 million yen |
| Accounts receivable-other | a decrease of 2,310 million yen |
Cash and cash equivalents decreased 1,466 million yen, due mainly to a decline of 1,400 million yen in deposits at notice.
Accounts receivable-trade increased 4,794 million yen, owing to a rise in net sales. This sales gain mainly increased 2,326 million yen in accounts receivable-trade from Minebea (Hong Kong) Ltd. and 3,523 million yen in those from NMB-Minebea-GmbH.
Accounts receivable-other fell 2,310 million yen, due to a decrease of 2,085 million yen in this account from the liquidation of Minebea Electronics Co., Ltd. and other business factors.
As a result, total current assets fell 592 million yen year on year, to 125,077 million yen.
| Under fixed assets, tangible fixed assets decreased 973 million yen year on year, due mainly to: | |
|---|---|
| Increase in capital investments | 4,136 million yen |
| Decrease in depreciation | 2,788 million yen |
| Decrease from impairment of idle assets | 1,642 million yen |
Under investments and other assets, investments in securities rose 4,653 million yen year on year, due mainly to a gain of 4,677 million yen on revaluation of listed stocks.
Let us move on to long-term loans receivable from affiliates. This fell 5,172 million yen year on year, due mainly to a fall of 5,129 million yen from the liquidation of Minebea Electronics Co., Ltd.
| Allowance for doubtful receivables also fell 522 million yen year on year, due primarily to: | |
|---|---|
| Minebea Technologies Pte. Ltd. | an increase of 338 million yen |
| Minebea Electronics Co., Ltd. | a decrease of 819 million yen |
As a result, total fixed assets fell 3,494 million yen year on year, to 232,446 million yen.
Total assets decreased 4,103 million yen from the previous year, to 357,560 million yen.
Let us move on to liabilities. Items under current liabilities that allowed primary fluctuations are: a rise of 4,304 million yen in accounts payable; and an allowance of 3,546 million yen for reasonably estimated charges expected to be incurred under the structural reform plan for the PC keyboard business, etc. decided in the current fiscal year.
When balances of loans payable under current liabilities and long-term liabilities were put together, the total balance of short-term loans payable, long-term debt, corporate bonds, etc. decreased 7,532 million yen year on year, to 132,100 million yen.
Let us move on to shareholders' equity. Under this section, net income recorded 3,378 million yen.
On the other hand, dividends of 2,793 million yen and retirement benefits to directors and corporate auditors of 23 million yen were paid.
In addition to these, there was a rise of 2,853 million yen in differences on revaluation of other marketable securities. Total shareholders' equity fell 3,348 million yen year on year, to 179,669 million yen.
As a result, total liabilities and shareholders' equity fell 4,103 million yen year on year, to 357,560 million yen.
5. Non-Consolidated Profit and Loss Statement
We will continue to make a report on details of Non-Consolidated Profit and Loss Statement.
Please refer to page 14 of the Business Report of the 60th Business Term.
First, net sales increased 21,598 million yen from the previous year, to 206,831 million yen.
This was due mainly to a change to the transaction routes for intermediation sales; and growth in sales of rod-end bearings to the strong aerospace industry, LED backlight assemblies for LCDs, etc.
Cost of sales rose 19,944 million yen compared with the previous year, to 182,910 million yen.
As a result, gross profit increased 1,654 million yen year on year, to 23,920 million yen.
Selling, general and administrative expenses rose 525 million yen year on year, to 20,844 million yen.
As a result, operating income increased 1,129 million yen year on year, to 3,075 million yen.
The net balance of other income and expenses after deducting other expenses from other income was an income of 7,160 million yen. This represents a year-on-year decline of 1,950 million yen from the year-ago income of 9,111 million yen.
The major reasons for this fall are that dividends received from domestic and overseas subsidiaries fell 2,288 million yen year on year, and that debenture interest fell 389 million yen year on year.
As a result, ordinary income decreased 821 million yen year on year, to 10,236 million yen.
Total extraordinary income was 1,157 million yen. Of this, 477 million yen was a gain on sales of fixed assets, including a gain on sale of welfare facilities owned by the Singapore branch.
Reversal of preemptive rights was 447 million yen, reversal of unexercised preemptive rights.
Total extraordinary loss was 11,479 million yen. Of this, the impairment loss of idle assets was 1,642 million yen.
Loss on revaluation of investment securities in affiliates was 5,230 million yen. This was an impairment loss of shares in Sheng Ding Pte. Ltd. Business restructuring loss was 3,637 million yen, a loss based on the structural reform plan for the PC keyboard business, etc.
In addition to these, 3,293 million yen was recorded in total income taxes. As a result, net loss was 3,378 million yen, due to the implementation of the restructuring of the PC keyboard business.
Added to this loss were profits brought forward of 2,081 million yen. As a result, un-appropriated retained earnings amounted to 1,297 million yen.
