Briefing on items on the agenda
Latest Update : July 18, 2023
Back to Shareholders' Meetings (Year 2023)
The 77th Ordinary General Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 77th fiscal year.
More information is provided on page 19 through 77 of the Notice of the 77th Ordinary General Meeting of Shareholders.
Brief Explanation of the Current Business Environment
During the consolidated fiscal year, the Japanese economy showed signs of a moderate recovery with a resumption of consumer spending owing to the easing of COVID-19 related restrictions on movement. The U.S. economy continued to raise interest rates to curb inflation while employment and individual income were increasing, and as a result the economic upswing was limited. In Europe, resource prices remain high due to a reduced supply of natural resources from Russia in conjunction with its aggression against Ukraine, so the future remains uncertain. The future of the Chinese economy remains uncertain since the economy was sluggish mainly in the real estate market while the normalization of economic activity progressed with the easing of restrictions on movement based on the government's zero-COVID policy. In Southeast Asia, the return of economic activity following the easing of COVID-19 related restrictions on movement ensured economic recovery was on track.
Working against this backdrop, the MinebeaMitsumi Group concentrated 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 168,063 million yen year on year to 1,292,203 million yen. Operating income was up 9,386 million yen year on year to 101,522 million yen, and profit for the year attributable to owners of the parent was up 8,075 million yen year on year to 77,010 million yen. In each of these three areas we achieved record highs.
HONDA TSUSHIN KOGYO CO., LTD. was made a subsidiary on September 16, 2022 and Minebea AccessSolutions Inc. was made a subsidiary on January 27, 2023 (at the same time, renamed from Honda Lock Mfg. Co., Ltd.). Those companies have been included in the scope of consolidation. In addition to the companies' profits and losses from the date of the business integration on, the above includes 25,728 million yen of negative goodwill arising from the business combination with Minebea AccessSolutions Inc.
Business Results by Segment
We have changed the names of our business headquarters and segments since April 2, 2023.
Since this business report covers the period from April 1, 2022 to March 31, 2023, we use the previous segment names.
Machined Components Business
The main products in our Group's Machined components 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, our Group's mainstay product, increased due to an increase in demand for automotive parts in line with a recovery in automobile production.
Sales of rod-end bearings increased due to a recovery in demand for aircraft-related products. Meanwhile, net sales of pivot assemblies decreased due to a decrease in demand.
As a result, net sales were up 19,830 million yen year on year to 197,300 million yen, while operating income was down 2,766 million yen year on year to 42,951 million yen.
Electronic Devices and Components Business
The core products of our Group's Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices, etc.), HDD spindle motors, stepping motors, DC motors, airmovers, and special devices. Net sales were down, primarily due to a decline in models using LED backlights and a decline in demand for HDD spindle motors. As a result, net sales were down 4,748 million yen year on year to 366,275 million yen, and operating income was down 20,639 million yen year on year to 922 million yen.
MITSUMI Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components, and smart products.
Optical devices for camera actuators performed well, resulting in an increase in net sales.
As a result, net sales were up 101,348 million yen year on year to 530,464 million yen, and operating income also increased by 894 million yen year on year to 42,740 million yen. Profit and loss of HONDA TSUSHIN KOGYO CO., LTD. are included in the MITSUMI business segment in conjunction with its acquisition.
U-Shin Business
The main products of the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial equipment components.
Net sales of automotive components were up owing to increased demand resulting from an increase in automobile production.
As a result, net sales were up 49,122 million yen year on year to 194,699 million yen, and operating income was 22,302 million yen, an improvement of 21,570 million yen.
In conjunction with the acquisition of Minebea AccessSolutions Inc., the earnings and gain on bargain purchase of the company are included in the U-Shin business.
Capital Expenditures
During the fiscal year under review, capital expenditures were 17,020 million yen for the Machined components business, 17,026 million yen for the Electronic devices and components business, 28,335 million yen for the MITSUMI business, 4,755 million yen for the U-Shin business, and 79,873 million yen for the Other businesses and whole company (common), totaling 147,040 million yen.
The main capital expenditures for the machined components business were equipment to increase production of ball bearing, etc. in Thailand. The main capital expenditures for the electronic devices and components business were equipment for motor-related facilities, etc. in Thailand. The main capital expenditures for the MITSUMI business were optical devices related facilities, etc. in the Philippines and semiconductor related facilities, etc. in Japan. The main capital expenditures for the U-Shin business were equipment for automotive related facilities in Europe and China. The main capital expenditures for the Other businesses and the whole company (common) were facilities related to the acquisition of MinebeaMitsumi Tokyo X Tech Garden.
Consolidated Statements of Financial Position and Consolidated Statements of Income
Balance Sheets and Statements of Income and Balance Sheet and Income Statement
The Consolidated Statements of Financial Position and Consolidated Statements of Income are as shown on pages 41 to 43 of the Notice of the 77th Ordinary General Meeting of Shareholders, and our Non-Consolidated Balance Sheet and Non-Consolidated Statement of Income are as shown on pages 65 to 67, so we will not provide an explanation of these matters.
