Briefing on items on the agenda
Latest Update : July 5, 2024
Back to Shareholders' Meetings (Year 2024)
The 78th Ordinary General Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 78th fiscal year.
More information is provided on page 24 through 83 of the Notice of the 78th Ordinary General Meeting of Shareholders.
Brief Explanation of the Current Business Environment
During the consolidated fiscal year, the Japanese economy showed a moderate recovery with a resumption of capital investment demand, as well as improvements in employment and income environment. On the other hand, rising interest rates restrained the demand. The U.S. economy continued steady movement due to firm consumer spending and growth in demand for capital and housing investment. In Europe, the consumer spending showed a sign of recovery due to the easing trend of price hike pressure though the domestic and external demands were stagnant due to monetary restraint and the stagnation of the Chinese economy. In China, economy continued to slow due to a prolonged real estate slump despite increases of fixed asset investment in private sectors and infrastructure, etc. In Southeast Asia, the economy progressed steadily due to recovery trend of export along with steady domestic demand.
Current Fiscal Year Results on Consolidated Basis
Working against this backdrop, the MinebeaMitsumi Group has focused on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further. As a result, net sales were up 109,924 million yen year on year to 1,402,127 million yen. Operating income was down 23,994 million yen year on year to 73,536 million yen, profit before income taxes was down 16,583 million yen year on year to 75,545 million yen, and profit for the year attributable to owners of the parent was down 19,117 million yen year on year to 54,035 million yen.
Business Results by Segment
The previous names of "Machined Components segment", "Electronic Devices and Components segment", "MITSUMI Business segment" and "U-Shin Business segment" have been changed to "Precision Technologies segment", "Motor, Lighting & Sensing segment", "Semiconductor & Electronics segment", and "Access Solutions segment" respectively from the fiscal year.
Precision Technologies Segment
The main products in our Group's Precision Technologies 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, net sales and operating income decreased due to a stagnant demand for data centers, while net sales of rod-end bearings increased due to an increase demand for aircraft-related products.
As a result, net sales were up 14,106 million yen year on year to 211,406 million yen, while operating income was down 4,916 million yen year on year to 38,035 million yen.
Motor, Lighting & Sensing Segment
The main products of our Group's Motor, Lighting & Sensing segment include electronic devices (sensing devices, etc.), HDD spindle motors, stepping motors, DC motors, air movers, and special devices. Net sales increased mainly due to an increase in demand for automotive motors.
As a result, net sales were up 3,113 million yen year on year to 369,388 million yen, and operating income was up 10,945 million yen year on year to 11,867 million yen.
Semiconductor & Electronics Segment
The main products in the Semiconductor & Electronics business segment are semiconductor devices, optical devices, mechanical components, power supply components, and smart products. Sales of mechanical components and optical devices for camera actuators declined, and both net sales and operating income decreased.
As a result, net sales were down 35,362 million yen year on year to 494,717 million yen, and operating income also decreased by 6,194 million yen year on year to 35,450 million yen.
Access Solutions Segment
The main products of the Access Solutions business segment are key sets, door latches, door handles, and other automotive components as well as industrial equipment components. In addition to the business integration of Minebea AccessSolutions Inc., net sales were up owing to recovered demand resulting from a recovery in automobile production, however, operating income was down due to negative goodwill arising from the business combination with Minebea AccessSolutions Inc. in the previous fiscal year.
As a result, net sales were up 127,409 million yen year on year to 322,108 million yen, and operating income was down 8,760 million yen year on year to 10,601 million yen.
Other Business Segment
The main products of the Other Business Segment are Software design, development, and machines produced in-house.
Net sales were up 658 million yen year on year to 4,508 million yen, and operating income was down 680 million yen for an operating loss of 728 million yen.
Capital Expenditures
Capital expenditures During the fiscal year under review, capital expenditures were 10,214 million yen for the Precision Technologies business, 18,818 million yen for the Motor, Lighting & Sensing business, 31,401 million yen for the Semiconductor & Electronics business, 11,248 million yen for the Access Solutions business, 150 million yen for the Other businesses, and 11,739 million yen for the whole company (common), totaling 83,570 million yen. The main capital expenditures for the Precision Technologies business were equipment to increase production of ball bearing, etc. in Thailand. The main capital expenditures for the Motor, Lighting & Sensing business were equipment for motor-related facilities, etc. in Thailand and Cambodia. The main capital expenditures for the Semiconductor & Electronics business were optical devices related facilities, etc. in the Philippines and semiconductor related facilities, etc. in Japan. The main capital expenditures for the Access Solutions business were equipment for automotive related facilities in Europe and China.
Finally, the main capital expenditures for the Other businesses and the whole company (common) were 11,889 million yen.
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 47 to 49 of the Notice of the 78th Ordinary General Meeting of Shareholders, and our Non-Consolidated Balance Sheet and Non-Consolidated Statement of Income are as shown on pages 71 to 74, so we will not provide an explanation of these matters.
