Briefing on items on the agenda by Chairman
Latest Update : June 29, 2007
Back to Shareholders' Meetings (Year 2007)
The 61st Ordinary General Meeting of Shareholders
1. Business Report
There was a brief explanation covering the information on pages 4 to 13 of the Notice of the 61st Ordinary General Meeting of Shareholders.
2. Consolidated Balance Sheet
The following brief explanation refers to the balance sheet shown on pages 14 and 15 of the Notice of the 61st Ordinary General Meeting of Shareholders.
Current assets increased 2,495 million yen this year to total 156,059 million yen.
| Major changes in current assets for this year included: | |
|---|---|
| Cash and cash equivalents | a decrease of 2,654 million yen |
| Notes and accounts receivable | an increase of 5,521 million yen |
| Inventories | a decrease of 3,010 million yen |
Cash and cash equivalents decreased 2,654 million yen, due mainly to an increase in net cash provided by operating activities and an increase in net cash used in financing activities.
Notes and accounts receivable increased 5,521 million yen due to growth in net sales and an increase brought by exchange rate fluctuations.
Inventories decreased 3,010 million yen due to efforts to reduce inventories.
| Tangible fixed assets rose 5,340 million yen, year on year, due mainly to: | |
|---|---|
| Increase brought by exchange rate fluctuations | 19,530 million yen |
| Increase due to capital investments | 16,969 million yen |
| Decrease due to depreciation | 23,929 million yen |
As a result, total fixed assets grew 2,467 million yen year-on-year to 198,684 million yen.
Total assets rose 4,921 million yen over the previous year's figure to 354,784 million yen.
Liabilities decreased 2,649 million yen, year on year, to 636 million yen. This decline was due mainly to a reversal in the allowance for business restructuring losses for the previous business year which was based on the structural reform plan for PC keyboard business, et al.
Combining the balances of loans payable under current liabilities and long-term liabilities brought the total balance for short-term loans payable, long-term debt, corporate bonds, etc., down 21,010 million yen from the previous year, to 150,261 million yen.
Net assets experienced changes due to a modification in accounting standards. Beginning this year, the shareholders' equity on the last business report will be indicated as net assets. For this reason, a minority interest in consolidated subsidiaries is included in the net assets section starting this year.
Net income was 12,862 million yen.
The total amount of dividends increased 3 yen per share and rose to 10 yen per share compared with the previous year, to total 3,990 million yen.
Total net assets soared to 142,558 million yen, 24,349 million yen over the combined shareholders' equity and minority interests in consolidated subsidiaries indicated in the previous business report. This increase was due largely to a 1,133 million yen decline in the difference on revaluation of other marketable securities and a 17,051 million yen increase from foreign currency translation adjustments.
Total liabilities for the year increased 4,921 million yen to 354,784 million yen.
3. Consolidated Profit and Loss Statement
Please refer to page 16 of the Notice of the 61st Ordinary General Meeting of Shareholders.
Net sales were up 12,575 million yen, year on year, to reach 331,022 million yen.
The main engines driving revenue growth included a 13,181 million yen increase brought by exchange rate fluctuations, an increase in sales of machined components business such as ball bearings due to aggressive marketing initiative, rod-end bearings due to strong aircraft market and pivot assemblies, as well as an increase in sales of electronic devices and components business such as LED backlights and inverters.
Cost of sales rose 7,709 million yen above the previous year to 257,643 million yen.
As a result, gross profit increased 4,866 million yen, year-on-year, to total 73,378 million yen.
Selling, general and administrative expenses decreased 2,129 million yen from the previous year to 47,113 million yen.
As a result, operating income increased 6,996 million yen to 26,265 million yen.
The factors behind profit growth included sales increases in ball bearings due to aggressive marketing initiative and rod-end bearings due to strong aircraft market, as well as profit improvements in electronic devices and components business such as information motors, HDD spindle motors, and PC keyboard which had structural reforms.
After deducting other expenses from other income, the net balance of other income and expenses was a loss of 4,421 million yen. This represents a year-on-year decrease of 253 million yen in loss from the previous loss of 4,674 million yen.
Ordinary income climbed 7,248 million yen from the previous year to reach 21,843 million yen.
Extraordinary income totaled 772 million yen, mainly due to a 572 million yen reversal of loss on after-care of products.
| Total extraordinary losses of 3,091 million yen included: | |
|---|---|
| Loss on sales of fixed assets | 323 million yen |
| Loss on disposal of fixed assets | 1,364 million yen |
| Settlement loss | 808 million yen |
| Special severance payment | 304 million yen |
Income taxes totaled 7,062 million yen.
As a result, net income was 12,862 million yen.
4. Statement of Changes in Consolidated Shareholders' Equity
Please refer to page 17 of the Notice of the 61st Ordinary General Meeting of Shareholders.
Total shareholder's equity at the end of the previous fiscal year was calculated to be 169,933 million yen after deducting 65 million yen in treasury stock from the combined total of common stock valued at 68,258 million yen, 94,756 million yen in additional paid-in capital and 6,983 million yen in retained earnings.
Adding revaluation and transaction differences to shareholders' equity brings the total net assets to 118,209 million yen at the end of the previous fiscal year.
As indicated on the bottom right-hand corner of the table, net assets increased 24,349 million yen to total 142,558 million yen. This was due to a net income increase of 12,862 million yen, payments of dividends totaling 3,990 million yen and 15 million yen for treasury stocks, as well as the addition of 17,051 million yen in foreign currency translation adjustments to revaluation/translation differences and some other factors.
5. Non-Consolidated Balance Sheet
Please refer to pages 22 and 23 of the Notice of the 61st Ordinary General Meeting of Shareholders.
| Major changes in current assets for this year included: | |
|---|---|
| Cash and cash equivalents | an increase of 2,105 million yen |
| Notes receivable | a decrease of 1,444 million yen |
| Account receivable-trade | an increase of 3,595 million yen |
| Short-term loans payable from affiliate | an increase of 1,035 million yen |
| Account receivable-trade | a decrease of 1,616 million yen |
| Allowance for doubtful receivables | an increase of 5,619 million yen |
The 2,105 million yen increase in cash and cash equivalents was due to a 2,614 million yen increase in current accounts and a 500 million yen decrease in deposits at notice.
The 1,444 million yen decrease in notes receivable was due to a decrease in collection of bills and 271 million yen for matured bills whose due date falls on a day that financial institutions are closed.
The 3,595 million yen increase in accounts receivable-trade was due to an increase in net sales, a 5,014 million yen increase in accounts receivable from customers, 1,180 million yen from NMB-Minebea-GmbH, etc.
The 1,035 million yen increase in short-term loans payable from affiliates was due to loan increases of 2,537 million yen to Minebea Technologies Pte. Ltd. and 2,292 million yen to Shanghai Shunding Technologies Ltd. as well as 3,400 million yen in repayments from Minebea Thai Ltd., NMB Thai Ltd., and NMB Precision Balls Ltd.
Accounts receivable-other decreased to 1,616 million yen due mainly to the receipt of 1,391 million yen in royalties for the previous term from Minebea-Matsushita Motor Corporation.
The 5,610 million yen allowance for doubtful receivables to Minebea Technologies Pte. Ltd., transferred from fixed assets to current assets, accounted for the bulk of the 5,619 million yen increase.
As a result, total current assets fell 424 million yen below the previous fiscal year's level to 124,653 million yen.
Among fixed assets, tangible fixed assets decreased 1,867 million yen due mainly to a 2,730 million yen increase in investments for equipment, a 3,240 million yen decrease due to depreciation, a 300 million yen decrease due to the disposal of PC keyboard dies, and a 229 million yen decrease from sale of idle assets of Saku factory and the Hokuriku branch of the former Kanemori Corporation.
Investments in securities decreased 1,858 million yen due entirely to a decrease in the profit evaluated by market value method.
The 6,130 million yen allowance for doubtful receivables to Minebea Technologies Pte. Ltd., transferred from fixed assets to current assets, accounted for the bulk of the 6,139 million yen increase.
As a result, total fixed assets decreased by 5 million yen from the previous term to 232,440 million yen.
Total assets decreased by 456 million yen from the previous term to 357,104 million yen.
| Major changes in liabilities for this year included: | |
|---|---|
| Accounts payable-trade of the current liabilities | a decrease of 1,891 million yen |
| Accrued income taxes | an increase of 1,303 million yen |
| Allowance for business restructuring losses | an increase of 1,937 million yen |
The grouping of short-term loans payable, short-term loans payable from affiliates, the current portion of long-term loans payable and bonds resulted in a year-on-year decrease of 4,825 million yen for liabilities totaling 127,275 million yen.
While 5,618 million yen in net income was carried forward as retained earnings, dividends for the previous term of 2,793 million were paid.
In addition, net assets were up 1,676 million yen over the previous term to total 181,346 million yen. This was due to the smaller appraisal loss on marketable securities of 1,133 million yen.
Total liabilities and net assets decreased 456 million yen from the previous term to 357,104 million yen.
6. Non-Consolidated Profit and Loss Statement
Please refer to page 24 of the Notice of the 61st Ordinary General Meeting of Shareholders.
Net sales were up 21,575 million yen for a total of 228,406 million yen.
This increase was due mainly to an increase in distributor sales of information motors as well as an increase in net sales of ball bearings, LED backlights and inverters.
Costs of sales jumped 17,644 million yen to total 200,555 million yen.
As a result, gross profit increased by 3,931 million yen for a total of 27,851 million yen.
Selling, general and administrative expenses dropped 1,941 million yen to 18,903 million yen.
As a result, operating income rose 5,872 million yen to total 8,948 million yen.
After deducting other expenses from other income, the net balance of other income and expenses was an income of 3,449 million yen. This represents a year-on-year decrease of 3,711 million yen from the last year's income of 7,160 million yen.
This decline was caused by a 3,594 million yen decrease in dividends received from domestic and overseas subsidiaries and foreign exchange losses that were 165 million yen more than in the previous term.
As a result, ordinary income increased by 2,160 million yen, year on year, for a total of 12,396 million yen.
Total extraordinary income was 758 million yen. This figure includes a 228 million yen gain on sales of fixed assets, including properties such as machinery, equipment and facilities for the benefit of employees.
There was a 5,290 million yen reversal in allowance for doubtful receivables, largely due to NMB Technologies Pte. Ltd.
Total extraordinary losses reached 3,789 million yen, including a 74 million yen decrease in idle assets.
A total of 2,461 million yen which was carried forward in the last term for the PC keyboard business' structural reform plan was recorded as a loss under allowance for business restructuring.
A total of 3,747 million yen in income taxes was carried forward.
As a result, net income totaled 5,618 million yen.
7. Statement of Changes in non-consolidated shareholders' equity
Please refer to page 25 of the Notice of the 61st Ordinary General Meeting of Shareholders.
Total shareholder's equity at the end of the previous fiscal year was calculated at 175,240 million yen after deducting 61 million yen of treasury stock from the combined total of 68,258 million yen in capital stock, 94,756 million yen of additional paid-in capital and total retained earnings of 12,287 million yen.
Net assets, including the appraisal loss on marketable securities and total shareholder's equity, totaled 179,669 million yen at the end of the previous fiscal year.
As shown in the bottom right-hand corner of the table, total net assets increased by 1,676 million yen to 181,346 million yen. This was due to a 5,618 million yen net income increase, reversal of the separate 50 million yen reserve established at the 60th Ordinary General Meeting of Shareholders, a decrease in retained earnings due to payment of 2,793 million yen in dividends for the previous term and a 15 million yen acquisition of treasury stock.
This concludes the report on the consolidated balance sheet, consolidated profit and loss statement, statement of changes in consolidated shareholders' equity, non-consolidated balance sheet, non-consolidated profit and loss statement and the statement of changes in non-consolidated shareholders' equity.
