Briefing on items on the agenda
Latest Update : July 5, 2018
Back to Shareholders' Meetings (Year 2018)
The 72nd Ordinary General Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 72nd fiscal year, together with consolidated and non-consolidated financial statements.
More information is provided on pages 15 through 68 of the Notice of the 72nd Ordinary General Meeting of Shareholders.
Brief Explanation of the Current Business Environment
During the fiscal year under review (April 1, 2017 to March 31, 2018), the Japanese economy continued its gradual recovery. Although there was a growing sense of uncertainty about the future in the second half of the fiscal year due to such factors as appreciation of the yen stemming from U.S. trade policy, consumer spending and corporate earnings improved on a full-year basis.
In the U.S. economy, consumer spending and corporate production remained robust against a backdrop of improvements in both employment conditions and domestic and foreign demand.
Recent growth in consumer spending slowed in the European economy due to higher prices, but corporate production and exports increased against the backdrop of a strong global economy.
In Asia, corporate production and exports increased in China owing to the global economic recovery, and consumer spending remained robust in response to favorable employment and income conditions.
Working against this backdrop, the MinebeaMitsumi Group has been concentrating on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
Current Fiscal Year Results on Consolidated Basis
As a result, net sales were up 240,213 million yen year on year to 879,139 million yen, the highest since our founding.
Operating income was up 30,147 million yen year on year to 79,162 million yen, ordinary income was up 29,645 million yen to 78,038 million yen, and income attributable to owners of the parent was up 18,236 million yen to 59,382 million yen, all breaking previous records.
Business Results by Segment
Now we review the business results by segment.
Machined Components Business
The main products in our Machined components segment include our anchor product line, 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 aircraft.
Sales of ball bearings to external customers hit record highs five times on a monthly basis as demand soared for energy-efficient models, safety devices in the automobile market and for fan motors. In March, the number of units reached 213 million.
Rod-end bearing sales increased in response to a recovery in orders in the small and medium aircraft market despite declining production of large models in the civil aircraft market.
Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to the impact of the shrinking hard disk drive market.
As a result, net sales were up 20,081 million yen year on year to 176,391 million yen, and operating income was up 3,580 million yen to 42,727 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (LED backlights for LCDs, sensing devices, etc.), hard disk drive spindle motors, stepping motors, DC motors, air movers, precision motors, and special devices.
Demand for our LED backlights for LCDs that offer a technological advantage in thin smartphones remained strong. Sales of stepping motors and other motors also grew mainly in the automobile and office automation markets.
As a result, net sales were up 9,845 million yen year on year to 451,460 million yen, and operating income was up 9,291 million yen to 31,189 million yen.
MITSUMI Business
The main products in MITSUMI business segment are semiconductor devices, optical devices, mechanical parts, high frequency components, power supply components.
All products, including camera actuators, mechanical parts for game consoles, products for smartphones such as switches and protection IC, antennas, communication modules, and connectors performed well.
As a result, net sales were up 210,250 million yen year on year to 250,592 million yen, and operating income was up 19,197 million yen to 21,512 million yen.
As MITSUMI ELECTRIC CO., LTD. merged with the Company on January 27, 2017, the results for the previous fiscal year were from January 27, 2017 to March 31, 2017.
Consolidated Operating Income for this Fiscal Year
Aside from the above, 16,140 million yen in corporate expenses that do not belong to the segments is shown as an adjustment.
Capital Expenditures
Now let's move on to capital expenditures made during the fiscal year.
During the fiscal year under review, capital expenditures were 12,227 million yen for the Machined components business, 15,751 million yen for the Electronic devices and components business, 16,729 million yen for the MITSUMI business, 163 million yen for the Other businesses, and 9,299 million yen for the whole company (common), totaling 54,171 million yen.
The main capital expenditures for the Machined components business were equipment for bearings related facilities in Thailand. The main capital expenditures for the Electronic devices and components business were equipment for motors and backlights, etc. related facilities in Thailand. The main capital expenditures for the MITSUMI business were equipment for optical devices related facilities, etc. in the Philippines.
Other capital expenditures for other businesses and at the whole company (common) were mainly expenditures related to the construction of a new plant in Slovakia.
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 64,532 million yen from the previous consolidated fiscal year end to total 707,844 million yen. The main reason for this uptick was an increase in "cash and deposits" due to increase in operating cash flow, an increase in "inventories" due to business expansion, and an increase in "tangible fixed assets" due to new capital investment.
Moving on to the liabilities and net assets section, we see that liabilities totaled 334,591 million yen, with a year on year increase of 17,498 million yen. This was primarily due to an increase in "notes and accounts payable" due to business expansion.
Net assets rose 47,034 million yen to total 373,253 million yen from the previous consolidated fiscal year end. This is mainly due to an increase in net income.
These results all add up to liabilities and net assets totaling 707,844 million yen, a 64,532 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 240,213 million yen year on year to total 879,139 million yen, the highest since our founding.
Operating income increased 30,147 million yen year on year to total 79,162 million yen. Since we already went over net sales and operating income, I won't go into it again here.
Ordinary income was up 29,645 million yen year on year to total 78,038 million yen mainly due to an increase in operating income despite an increase in Other expenses such as foreign exchange losses.
Income attributable to owners of the parent hit the highest since our founding at 59,382 million yen, an increase of 18,236 million yen from the previous fiscal year, although we posted impairment loss on some businesses.
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 4,728 million yen decrease in assets over the figure at the end of the previous fiscal year, bringing total assets to 477,887 million yen. The main reason was a decrease in short-term loans receivable from subsidiaries and affiliates due to improved performance of MITSUMI ELECTRIC CO., LTD. and other subsidiaries
Looking at the liabilities and net assets section, we see that liabilities totaled 227,218 million yen, down 9,469 million yen from the previous fiscal year end. This drop was primarily due to a decrease in long term debt.
Net assets totaled 250,668 million yen, up 4,741 million yen over the previous fiscal year end. This is mainly due to an increase in net income.
These results all add up to total liabilities and net assets of 477,887 million yen, an 4,728 million yen decrease 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 19,940 million yen to reach 472,446 million yen year on year. The main reason was the increase in sales due to the expansion of business.
Operating income was 7,257 million yen, an increase of 5,001 million yen compared with the previous fiscal year. The main reason for this was the increase in profitability due to business expansion and strengthening profit-earning capacity.
Ordinary income rose 13,718 million yen from the previous fiscal year to total 24,802 million yen. This was because of increase in dividends income. In addition, valuation losses on of shares of subsidiaries and affiliates were recorded for JAPAN 3D DEVICES Co., Ltd.
These results all added up to net income of 20,050 million yen, an 16,851 million yen increase over the previous fiscal year.
