Briefing on items on the agenda
Latest Update : July 7, 2015
Back to Shareholders' Meetings (Year 2015)
The 69th Ordinary General Meeting of Shareholders
Business Report
We now report Minebea's business results for its 69th fiscal year, together with consolidated and non-consolidated financial statements.
More information is provided on pages 4 through 52 of the Notice of the 69th Ordinary General Meeting of Shareholders.
Brief Explanation of the Current Business Environment
The Japanese economy saw corporate earnings increase during the fiscal year under review as government economic initiatives and the Bank of Japan's monetary easing coupled with the weakening yen in the foreign exchange market all fueled financial performance. Consumer spending also steadily grew thanks to high stock prices and the improved job market. Driven by improved employment and growing consumer spending on top of increased capital expenditures that went hand in hand with higher corporate earnings, the U.S. economy continued on its gradual recovery track. In Europe, the economy managed to steadily inch forward in the shadow of the Greek sovereign debt crisis, Ukrainian political crisis, and declining crude oil prices. ASEAN countries enjoyed moderate economic recoveries while China saw its economic growth rate decline in the face of an assortment of major problems.
Working against this backdrop, the Minebea Group has been focusing on cutting costs, creating high value-added products, developing new technologies, and enhancing its marketing approach to further boost profitability.
Current Fiscal Year Results on Consolidated Basis
As a result, net sales soared by 129,133 million yen year on year to total 500,676 million yen, reaching 500 billion yen for the first time ever. Operating income rose 27,902 million yen year on year to total 60,101 million yen while ordinary income was up 32,075 million yen year on year at 60,140 million yen. Net income also grew 19,009 million yen year on year to total 39,887 million yen. All of these totals were record highs.
Business Results by Segment
Now we review the business results by segment.
Machined Components Business
Products in our Machined Components business segment include our mainstay, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive pivot assemblies, etc., as well as fasteners for automobiles and aircraft. Ball bearings enjoyed gains in both sales and profits as demand grew in major markets. Buoyed by growing demand for vehicles with enhanced fuel economy, comfort, and safety features, sales to the automobile industry were particularly robust. Sales of rod-end bearings remained strong, especially in the civil aviation market. Sales and profits of pivot assemblies were up thanks to solid demand for high-end products used in data centers, etc. despite the stagnant HDD market.
As a result, net sales increased 14,954 million yen year on year to reach 154,986 million yen, and operating income rose 6,163 million yen year on year, to total 39,713 million yen.
Electronic Devices and Components Business
The core products of our Electronic Devices and Components business include electronic devices (LED backlights for LCDs and measuring components, etc.), HDD spindle motors, information motors, precision motors, and special devices. Sales and profits of LED backlights for LCDs soared year on year. This increase resulted from a surge in demand for Minebea products boasting both a technological and supply edge in the growing market for high-end smartphones. Efforts to expand the customer base for our measuring components paid off and we saw both sales and profits steadily increase. Our Electro Mechanics Solutions (EMS) business also enjoyed sales and profit growth. Sales of HDD spindle motors, information motors, etc. also rose. The information motors business, in particular, saw increases in both sales and profits thanks to growing sales to the office automation, automobile, and other markets. Cost cutting efforts aligned with the transfer of manufacturing operations for some products to our Cambodian plant, as well as improved quality and production efficiency also contributed to the better performance.
In the end, net sales for this fiscal year were up significantly by 113,328 million yen year on year to reach 343,842 million yen. Operating income increased a whopping 20,139 million yen year on year to total 29,720 million yen.
Consolidated Operating Income for this Fiscal Year
In addition to the figures stated above, the consolidated statement of income for the fiscal year includes, net sales 1,848 million yen and operating income of 859 million yen in Other business segment, and operating income 10,191 million yen in corporate expenses, etc., which do not belong to any particular segment, as adjustments.
Capital Expenditures
Now let's move on to capital expenditures made during the fiscal year.
During the fiscal year under review, capital expenditures were 5,731 million yen for the Machined Components business, 16,427 million yen for the Electronic Devices and Components business, 7,042 million yen for the Other businesses and 8,356 million yen for adjustment, totaling 37,557 million yen.
The main capital expenditures for the Machined Components business were equipment for bearings in Thailand. The main capital expenditures for the Electronic Devices and Components business were equipment for LED backlights and components for LCDs in Thailand, Cambodia and China. The main capital expenditures for the Other businesses were production facilities for high precision 3D molded thin glasses and the like in Japan.
Capital expenditures included 2,577 million yen for intangible fixed assets and an increase of 147 million yen in assets through new finance lease agreements.
Consolidated Financial Statements
Now we review the consolidated financial statements.
Consolidated Balance Sheet
Let's start off with the consolidated balance sheet.
Looking at the assets section, we see that total assets increased 108,765 million yen from the previous consolidated fiscal year end to total 490,043 million yen. The main reasons for this uptick include increases in notes and accounts receivable, inventories, as well as tangible fixed assets due to the rapid growth of the Electronic Devices and Components business.
Moving on to the liabilities and net assets section, we see that liabilities totaled 256,363 million yen, with a year on year increase of 38,549 million yen. This jump was primarily due to increases in notes and accounts payable as a result of expanded business operations.
Net assets rose 70,216 million yen to total 233,679 million yen from the previous consolidated fiscal year end. This is due mainly to an increase in net income and foreign currency translation adjustments.
These results all add up to liabilities and net assets totaling 490,043 million yen, an 108,765 million yen increase over what they were at the end of previous consolidated fiscal year.
Consolidated Statement of Income
Now let's look at the consolidated statement of income.
Net sales were up 129,133 million yen year on year to total 500,676 million yen. Operating income rose 27,920 million yen year on year to total 60,110 million yen. All of these were record highs. Since we already went over net sales and operating income, I won't go into it again here.
Ordinary income, due to improvements in non operating profit and loss, such as significant increase in operating income and reduction of interest expenses, and hit a record high at 32,075 million yen, increase of 60,140 million yen from the previous fiscal year.
Net income hit a record high at 39,887 million yen, an increase of 19,009 from the previous fiscal year, as ordinary income jumped up and extraordinary losses such as loss on abolishment of retirement benefit plan in U.S.A. and loss related to anti-monopoly act.
Consolidated Statement of Changes in Net Assets and Notes
We'll skip the consolidated statement of changes in net assets and notes, which are provided on pages 23 of the Notice of the 69th Ordinary General Meeting of Shareholders.
Non-Consolidated Financial Statements
Next is an overview of our non-consolidated financial statements.
Non-Consolidated Balance Sheet
Now let's look at the non-consolidated balance sheet.
The balance sheet shows an 22,362 million yen increase in assets over the figure at the end of the previous fiscal year, bringing total assets to 389,214 million yen. This is due mainly to increases in accounts receivable caused by sales increase.
Looking at the liabilities and net assets section, we see that liabilities totaled 202,095 million yen, up 16,154 million yen from the previous fiscal year end. This is due mainly to an increase in accounts payable as a result of increased production and sales.
Net assets totaled 187,119 million yen, up by 6,208 million yen over the previous fiscal year end.
This is due mainly to an increase in net income.
These results all add up to total liabilities and net assets of 389,214 million yen, an 22,362 million yen increase over the previous fiscal year end.
Non-Consolidated Statement of Income
Now let's look at the non-consolidated statement of income.
Net sales were up 95,473 million yen to reach 434,358 million yen year on year. This is due mainly to a surge in sales of LCD backlights, ball bearings, information motors and other products.
Operating income rose 8,656 million yen from the previous fiscal year to total 19,130 million yen. The increase was due mainly to higher sales.
Ordinary income rose 24,190 million yen from the previous fiscal year to total 10,639 million yen. This is because of significant increase in operating income and increase in dividends income. In addition, extraordinary income on valuation of stocks of subsidiaries and extraordinary loss related to anti-monopoly act were recorded.
As a result, net income increased 1,570 million yen to total 9,575 million yen.
Non-Consolidated Statement of Changes in Net Assets and Notes
You will find the non-consolidated statement of changes in net assets and notes on pages 42 of the Notice of the 69th Ordinary General Meeting of Shareholders.
