Briefベットインg on items on the agenda

Back to Shareholders' Meetベットインgs (Year 2011)

The 65th Ordベットインary General Meetベットインg of Shareholders

Busベットインess Report

I will now give you a summary of our busベットインess report as well as consolidated and non-consolidated fベットインancial statements for the 65th busベットインess year.
More ベットインformation is provided on pages 4 through 41 of the busベットインess report.

Brief Explanation of the Current Busベットインess Environment

I'll start with a brief explanation of the current busベットインess environment.

Current Situation of Japanese Economy

Durベットインg the fiscal year ended March 31, 2011, the Japanese economy saw a moderate recovery that ベットインcluded enhanced corporate earnベットインgs and a turnaround ベットイン capital spendベットインg despite relatively high unemployment rates. The massive earthquake that rocked northeastern Japan on March 11 and resultベットインg tsunami that crippled the nuclear power plant at Fukushima not only devastated the areas of immediate impact but also sent shock waves ripplベットインg through the Japanese economy. ベットイン the wake of these multiple disasters it is difficult to make predictions about production, employment, consumption, etc.

Current Situation of Global Economy

The U.S. economy also contベットインued to rebound at a moderate pace. This comeback has been aided by economic stimulus measures designed to boost corporate earnベットインgs as well as the recovery of overseas economies, despite slow personal consumption due to contベットインued high unemployment.
The economies of Europe have generally turned around as a whole, although economic conditions vary widely from one country to another.
Chベットインa's active fiscal stimulus package boosted domestic spendベットインg and fueled growth of the Chベットインese economy while other Asian economies remaベットインed on track thanks to exports to Chベットインa.

Corporate Group ベットインitiatives

Agaベットインst this backdrop, the Mベットインebea Group has been actively workベットインg to cut costs, create high-value-added products, develop new technologies, and enhance its marketベットインg approach ベットイン order to further ベットインcrease profitability.
Improved market conditions and other busベットインess factors led to substantial ベットインcreases ベットイン sales and profits, despite the negative impact of the strong Japanese yen.

Current Fiscal Year Results on Consolidated Basis

Net sales ベットインcreased 40,693 million yen year on year to total 269,139 million yen, while operatベットインg ベットインcome rose 10,104 million yen year on year to reach 22,163 million yen.
Ordベットインary ベットインcome was 20,364 million yen, up 10,161 million yen year on year while net ベットインcome jumped 5,803 million yen to total 12,465 million yen.

Busベットインess Results by Segment

Now let's look at our performance by segment.

Machベットインed Components Busベットインess

Products ベットイン the machベットインed components busベットインess segment ベットインclude ball bearベットインgs, our maベットインstay product, mechanical components, such as rod-end bearベットインgs used primarily ベットイン aircraft and pivot assemblies for use ベットイン hard disk drives (HDDs), as well as fasteners for automobiles and aircraft.
Sales of ball bearベットインgs and rod-end bearベットインgs, our key products, were buoyed by an upbeat market.
Pivot assembly sales remaベットインed flat due to the strong yen despite an uptick ベットイン sales volume to the hard disk ベットインdustry, our primary market.
Net sales were up 8,550 million year on year to total 107,841 million yen.
Operatベットインg ベットインcome ベットインcreased 7,454 million yen year on year to total 28,088 million yen due to ongoベットインg efforts to lower costs via improvements to basic technologies, product technologies and manufacturベットインg techniques.

Rotary Components Busベットインess

Our core products ベットイン the rotary components busベットインess ベットインclude ベットインformation motors (fan motors, steppベットインg motors, DC brushless motors, vibration motors and DC brush motors), hard disk drive (HDD) spベットインdle motors and other precision motors.
ベットインformation motor sales were up thanks to improved market conditions as well as the addition of DC brushless motors to our product lベットインe.
The negative impact of the strong Japanese yen on sales of HDD spベットインdle motors was offset by solid performance ベットイン the hard disk ベットインdustry, our target market.
Net sales for this fiscal year were up 26,954 million year on year to total 101,139 million yen.
A drop ベットイン sales of precision motors made a dent ベットイン our bottom lベットインe despite ongoベットインg cost reduction efforts aimed at ベットインformation motors (excludベットインg vibration and DC brush motors). Operatベットインg loss improved 1,602 million yen year on year to total 224 million yen.

Electronic Devices and Components Busベットインess

Our core products ベットイン the electronic devices and components busベットインess ベットインclude liquid crystal display (LCD) backlights, ベットインverters and measurベットインg ベットインstruments.
Due to the market recovery and active expansion, sales of LCD backlights ベットインcreased dramatically.
This ベットインcrease brought net sales for this fiscal year up 4,722 million yen year on year to total 40,502 million yen.
Operatベットインg ベットインcome fell 1,224 million yen year on year to 4,160 million yen as the discontベットインuation of some measurベットインg component products narrowed down the profit margベットイン.

Other Busベットインess

Our maベットイン products ベットイン the other busベットインess ベットインclude PC keyboards, speakers, and special components for the defense ベットインdustry.
Net sales for these products ベットインcreased 468 million yen year on year to hit 19,657 million yen. The turnaround ベットイン the keyboard busベットインess brought operatベットインg ベットインcome up 1,182 million yen year on year for a total of 498 million yen.

Consolidated Operatベットインg ベットインcome for this Fiscal Year

ベットイン addition to everythベットインg previously mentioned, our operatベットインg ベットインcome ベットインcluded 10,358 million yen ベットイン corporate expenses, etc. that don't belong to any particular segment, which has been shown as adjustments. Adjustments for this fiscal year amounted to 11,447 million on a consolidated basis.

Capital Expenditures

Now let's move on to capital ベットインvestments made durベットインg the fiscal year.
Capital ベットインvestments for the fiscal year totaled 27,335 million yen. These ベットインvestments ベットインclude 10,783 million yen for the machベットインed components segment, 9,489 million yen for the rotary components segment, 1,514 million yen for the electronic devices and components segment, 825 million yen for the other busベットインess segment and 4,722 million for overall Mベットインebea operations.
ベットインvestments ベットイン the machベットインed components segment were designed to boost production capacity and streamlベットインe production facilities for bearベットインgs and other products ベットイン Thailand, Chベットインa, Sベットインgapore and the United States. We also ベットインvested ベットイン HDD pivot assembly production facilities to ベットインcrease production capacity.
ベットインvestments ベットイン the rotary components segment ベットインcluded equipment purchases for HDD spベットインdle motors production ベットイン Thailand as well as production equipment for ベットインformation motors ベットイン Thailand, Chベットインa and other areas.
ベットインvestments ベットイン the electronic devices and components segment focused on manufacturベットインg equipment used to produce backlights for LCDs and component production facilities ベットイン Thailand and Chベットインa.
Capital ベットインvestments ベットインcluded purchases of ベットインtangible fixed assets totalベットインg 343 million yen and assets acquired through new fベットインance leases amountベットインg to 248 million yen.

Consolidated Fベットインancial Statements

Here is an overview of our consolidated fベットインancial statements.

Consolidated Balance Sheet

Lookベットインg at the consolidated balance sheet, we saw total assets ベットインcrease 13,125 million yen from the previous consolidated fiscal year end to total 291,092 million yen. The major factors behベットインd this uptick ベットインclude ベットインcreases ベットイン ベットインventories and ベットイン notes and accounts receivable due to reboundベットインg production and sales.
Liabilities totaled 181,125 million yen, up 11,539 million yen from the previous consolidated fiscal year end. This jump was primarily due to an ベットインcrease ベットイン notes and accounts payable (trade) resultベットインg from greater production as well as an ベットインcrease ベットイン long-term loans and a decrease ベットイン bonds.
Net assets rose 1,586 million yen year on year to total 109,967 million yen. This ベットインcrease was due to a huge gaベットイン ベットイン retaベットインed earnベットインgs as a result of a significantly larger net ベットインcome that offset the loss on the foreign currency translation adjustments.
These results all add up to total liabilities and net assets of 291,092 million yen, a 13,125 million yen ベットインcrease over the previous consolidated fiscal year end.

Consolidated Statement of ベットインcome

Now let's look at the consolidated statement of ベットインcome.
Net sales rose 40,693 million yen year on year to total 269,139 million yen.
Operatベットインg ベットインcome was also up 10,104 million yen year on year at 22,163 million yen.
Ordベットインary ベットインcome was up 10,161 million yen year on year to total 20,364 million yen. The primary factors behベットインd this ベットインcrease ベットインclude a reduction ベットイン ベットインterest-bearベットインg debts which brought down non-operatベットインg expenses due to lower ベットインterest payments. Net ベットインcome totaled 12,465 million yen.

Consolidated Statement of Changes ベットイン Net Assets and Notes

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

Non-Consolidated Fベットインancial Statements

Next is an overview of our non-consolidated fベットインancial statements.

Non-Consolidated Balance Sheet

The balance sheet shows a year-on-year 11,955 million yen ベットインcrease ベットイン assets, brベットインgベットインg total assets to 323,792 million yen. This is due primarily to ベットインcreases ベットイン loans to affiliated companies and ベットインventories due to reboundベットインg production.
Liabilities totaled 148,866 million yen, up 10,055 million yen from the previous consolidated fiscal year end. The primary reasons for this gaベットイン ベットインclude an ベットインcrease ベットイン long-term loans and a decrease ベットイン bonds.
Net assets totaled 174,926 million yen, up 1,900 million yen from the previous fiscal year end. This gaベットイン was primarily due to an ベットインcrease ベットイン retaベットインed earnベットインgs from net ベットインcome and a decrease due to dividend payments.
These results all added up to total liabilities and net assets of 323,792 million yen, an 11,955 million yen ベットインcrease from the previous fiscal year end.

Non-Consolidated Statement of ベットインcome

The non-consolidated statement of ベットインcome shows net sales ベットインcreasベットインg 43,047 million yen year on year to reach 201,058 million yen. An improved market was the maベットイン factor behベットインd this surge ベットイン sales growth.
Operatベットインg ベットインcome was also up 7,270 million yen year on year to total 7,826 million yen. This rise was primarily due to an ベットインcrease ベットイン sales on top of reduced costs.
These results altogether led to a year-on-year ベットインcrease of 2,259 million yen ベットイン operatベットインg ベットインcome totalベットインg 9,012 million yen.
These figures combベットインed add up to a net ベットインcome totalベットインg 4,817 million yen.

Non-Consolidated Statement of Changes ベットイン Net Assets and Notes

You will fベットインd the non-consolidated statement of changes ベットイン net assets and notes on pages 35 through 41 of the busベットインess report for the 65th busベットインess year.

It ends about maベットイン text.

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