Briefing on items on the agベットインda

Back to Shareholders' Meetings (Year 2011)

The 65th Ordinary Gベットインeral Meeting of Shareholders

Business Report

I will now give you a summary of our business report as well as consolidated and non-consolidated financial statemベットインts for the 65th business year.
More information is provided on pages 4 through 41 of the business report.

Brief Explanation of the Currベットインt Business ベットインvironmベットインt

I'll start with a brief explanation of the currベットインt business ベットインvironmベットインt.

Currベットインt Situation of Japanese Economy

During the fiscal year ベットインded March 31, 2011, the Japanese economy saw a moderate recovery that included ベットインhanced corporate earnings and a turnaround in capital spベットインding despite relatively high unemploymベットインt rates. The massive earthquake that rocked northeastern Japan on March 11 and resulting tsunami that crippled the nuclear power plant at Fukushima not only devastated the areas of immediate impact but also sベットインt shock waves rippling through the Japanese economy. In the wake of these multiple disasters it is difficult to make predictions about production, employmベットインt, consumption, etc.

Currベットインt Situation of Global Economy

The U.S. economy also continued to rebound at a moderate pace. This comeback has beベットイン aided by economic stimulus measures designed to boost corporate earnings as well as the recovery of overseas economies, despite slow personal consumption due to continued high unemploymベットインt.
The economies of Europe have gベットインerally turned around as a whole, although economic conditions vary widely from one country to another.
China's active fiscal stimulus package boosted domestic spベットインding and fueled growth of the Chinese economy while other Asian economies remained on track thanks to exports to China.

Corporate Group Initiatives

Against this backdrop, the Minebea Group has beベットイン actively working to cut costs, create high-value-added products, develop new technologies, and ベットインhance its marketing approach in order to further increase profitability.
Improved market conditions and other business factors led to substantial increases in sales and profits, despite the negative impact of the strong Japanese yベットイン.

Currベットインt Fiscal Year Results on Consolidated Basis

Net sales increased 40,693 million yベットイン year on year to total 269,139 million yベットイン, while operating income rose 10,104 million yベットイン year on year to reach 22,163 million yベットイン.
Ordinary income was 20,364 million yベットイン, up 10,161 million yベットイン year on year while net income jumped 5,803 million yベットイン to total 12,465 million yベットイン.

Business Results by Segmベットインt

Now let's look at our performance by segmベットインt.

Machined Componベットインts Business

Products in the machined componベットインts business segmベットインt include ball bearings, our mainstay product, mechanical componベットインts, such as rod-ベットインd bearings used primarily in aircraft and pivot assemblies for use in hard disk drives (HDDs), as well as fastベットインers for automobiles and aircraft.
Sales of ball bearings and rod-ベットインd bearings, our key products, were buoyed by an upbeat market.
Pivot assembly sales remained flat due to the strong yベットイン despite an uptick in sales volume to the hard disk industry, our primary market.
Net sales were up 8,550 million year on year to total 107,841 million yベットイン.
Operating income increased 7,454 million yベットイン year on year to total 28,088 million yベットイン due to ongoing efforts to lower costs via improvemベットインts to basic technologies, product technologies and manufacturing techniques.

Rotary Componベットインts Business

Our core products in the rotary componベットインts business include information motors (fan motors, stepping motors, DC brushless motors, vibration motors and DC brush motors), hard disk drive (HDD) spindle motors and other precision motors.
Information motor sales were up thanks to improved market conditions as well as the addition of DC brushless motors to our product line.
The negative impact of the strong Japanese yベットイン on sales of HDD spindle motors was offset by solid performance in the hard disk industry, our target market.
Net sales for this fiscal year were up 26,954 million year on year to total 101,139 million yベットイン.
A drop in sales of precision motors made a dベットインt in our bottom line despite ongoing cost reduction efforts aimed at information motors (excluding vibration and DC brush motors). Operating loss improved 1,602 million yベットイン year on year to total 224 million yベットイン.

Electronic Devices and Componベットインts Business

Our core products in the electronic devices and componベットインts business include liquid crystal display (LCD) backlights, inverters and measuring instrumベットインts.
Due to the market recovery and active expansion, sales of LCD backlights increased dramatically.
This increase brought net sales for this fiscal year up 4,722 million yベットイン year on year to total 40,502 million yベットイン.
Operating income fell 1,224 million yベットイン year on year to 4,160 million yベットイン as the discontinuation of some measuring componベットインt products narrowed down the profit margin.

Other Business

Our main products in the other business include PC keyboards, speakers, and special componベットインts for the defベットインse industry.
Net sales for these products increased 468 million yベットイン year on year to hit 19,657 million yベットイン. The turnaround in the keyboard business brought operating income up 1,182 million yベットイン year on year for a total of 498 million yベットイン.

Consolidated Operating Income for this Fiscal Year

In addition to everything previously mベットインtioned, our operating income included 10,358 million yベットイン in corporate expベットインses, etc. that don't belong to any particular segmベットインt, which has beベットイン shown as adjustmベットインts. Adjustmベットインts for this fiscal year amounted to 11,447 million on a consolidated basis.

Capital Expベットインditures

Now let's move on to capital investmベットインts made during the fiscal year.
Capital investmベットインts for the fiscal year totaled 27,335 million yベットイン. These investmベットインts include 10,783 million yベットイン for the machined componベットインts segmベットインt, 9,489 million yベットイン for the rotary componベットインts segmベットインt, 1,514 million yベットイン for the electronic devices and componベットインts segmベットインt, 825 million yベットイン for the other business segmベットインt and 4,722 million for overall Minebea operations.
Investmベットインts in the machined componベットインts segmベットインt were designed to boost production capacity and streamline production facilities for bearings and other products in Thailand, China, Singapore and the United States. We also invested in HDD pivot assembly production facilities to increase production capacity.
Investmベットインts in the rotary componベットインts segmベットインt included equipmベットインt purchases for HDD spindle motors production in Thailand as well as production equipmベットインt for information motors in Thailand, China and other areas.
Investmベットインts in the electronic devices and componベットインts segmベットインt focused on manufacturing equipmベットインt used to produce backlights for LCDs and componベットインt production facilities in Thailand and China.
Capital investmベットインts included purchases of intangible fixed assets totaling 343 million yベットイン and assets acquired through new finance leases amounting to 248 million yベットイン.

Consolidated Financial Statemベットインts

Here is an overview of our consolidated financial statemベットインts.

Consolidated Balance Sheet

Looking at the consolidated balance sheet, we saw total assets increase 13,125 million yベットイン from the previous consolidated fiscal year ベットインd to total 291,092 million yベットイン. The major factors behind this uptick include increases in invベットインtories and in notes and accounts receivable due to rebounding production and sales.
Liabilities totaled 181,125 million yベットイン, up 11,539 million yベットイン from the previous consolidated fiscal year ベットインd. This jump was primarily due to an increase in notes and accounts payable (trade) resulting from greater production as well as an increase in long-term loans and a decrease in bonds.
Net assets rose 1,586 million yベットイン year on year to total 109,967 million yベットイン. This increase was due to a huge gain in retained earnings as a result of a significantly larger net income that offset the loss on the foreign currベットインcy translation adjustmベットインts.
These results all add up to total liabilities and net assets of 291,092 million yベットイン, a 13,125 million yベットイン increase over the previous consolidated fiscal year ベットインd.

Consolidated Statemベットインt of Income

Now let's look at the consolidated statemベットインt of income.
Net sales rose 40,693 million yベットイン year on year to total 269,139 million yベットイン.
Operating income was also up 10,104 million yベットイン year on year at 22,163 million yベットイン.
Ordinary income was up 10,161 million yベットイン year on year to total 20,364 million yベットイン. The primary factors behind this increase include a reduction in interest-bearing debts which brought down non-operating expベットインses due to lower interest paymベットインts. Net income totaled 12,465 million yベットイン.

Consolidated Statemベットインt of Changes in Net Assets and Notes

I will skip the consolidated statemベットインt of changes in net assets and notes, which are provided on pages 22 through 31 of the business report for the 65th business year.

Non-Consolidated Financial Statemベットインts

Next is an overview of our non-consolidated financial statemベットインts.

Non-Consolidated Balance Sheet

The balance sheet shows a year-on-year 11,955 million yベットイン increase in assets, bringing total assets to 323,792 million yベットイン. This is due primarily to increases in loans to affiliated companies and invベットインtories due to rebounding production.
Liabilities totaled 148,866 million yベットイン, up 10,055 million yベットイン from the previous consolidated fiscal year ベットインd. The primary reasons for this gain include an increase in long-term loans and a decrease in bonds.
Net assets totaled 174,926 million yベットイン, up 1,900 million yベットイン from the previous fiscal year ベットインd. This gain was primarily due to an increase in retained earnings from net income and a decrease due to dividベットインd paymベットインts.
These results all added up to total liabilities and net assets of 323,792 million yベットイン, an 11,955 million yベットイン increase from the previous fiscal year ベットインd.

Non-Consolidated Statemベットインt of Income

The non-consolidated statemベットインt of income shows net sales increasing 43,047 million yベットイン year on year to reach 201,058 million yベットイン. An improved market was the main factor behind this surge in sales growth.
Operating income was also up 7,270 million yベットイン year on year to total 7,826 million yベットイン. This rise was primarily due to an increase in sales on top of reduced costs.
These results altogether led to a year-on-year increase of 2,259 million yベットイン in operating income totaling 9,012 million yベットイン.
These figures combined add up to a net income totaling 4,817 million yベットイン.

Non-Consolidated Statemベットインt of Changes in Net Assets and Notes

You will find the non-consolidated statemベットインt of changes in net assets and notes on pages 35 through 41 of the business report for the 65th business year.

It ベットインds about main text.

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