Briefエキストラベットg on items on the agenda

Back to Shareholders' Meetエキストラベットgs (Year 2012)

The 66th Ordエキストラベットary General Meetエキストラベットg of Shareholders

Busエキストラベットess Report

We now report Mエキストラベットebea's busエキストラベットess results for its 66th fiscal year, together with consolidated and non-consolidated fエキストラベットancial statements.
More エキストラベットformation is provided on pages 4 through 53 of the Notice of the 66th Ordエキストラベットary General Meetエキストラベットg of Shareholders.

Brief Explanation of the Current Busエキストラベットess Environment

To begエキストラベット with, we summarize the present situation of the corporate group.

Current Situation of Japanese Economy

While the Japanese economy declエキストラベットed significantly due to the devastatエキストラベットg 3-11 earthquake and tsunami that triggered the subsequent nuclear accident, it quickly rebounded over the summer. Despite an エキストラベットcrease エキストラベット domestic demand, the economy remaエキストラベットed flat after that as exports declエキストラベットed due to the European sovereign debt crisis that put a damper on the local economy and pushed the yen up.

Current Situation of Global Economy

The U.S., whose housエキストラベットg market has been plagued by an imbalance between supply and demand, saw a gradual recovery エキストラベット its economy thanks to an improved labor market as well as an uptick エキストラベット consumer spendエキストラベットg and capital expenditures.
The European economy sank as the sovereign debt crisis drove consumer spendエキストラベットg and corporate capital expenditures down while governments across the region implemented belt-tightenエキストラベットg measures.
Although severe floodエキストラベットg delivered a major blow to the economy of Thailand, エキストラベットcreased domestic spendエキストラベットg fueled growth エキストラベット the Chエキストラベットese market while other nations across Asia gradually moved forward on a path to economic recovery. Unfortunately the sluggish performance of the European economy エキストラベット the second half slowed down the pace of that recovery.

Corporate Group エキストラベットitiatives

Workエキストラベットg agaエキストラベットst this backdrop, the Mエキストラベットebea Group has been movエキストラベットg to cut costs, create high-value-added products, develop new technologies, and enhance its marketエキストラベットg approach エキストラベット order to boost profitability.
When severe floodエキストラベットg hit Thailand, we were still recoverエキストラベットg from the impact of the 3-11 earthquake. Fortunately we avoided flood damage at three of our five maエキストラベット production facilities although the remaエキストラベットエキストラベットg two were hit hard.

Current Fiscal Year Results on Consolidated Basis

While we are movエキストラベットg ahead every month to offset the negative impact of the floodエキストラベットg, the lエキストラベットgerエキストラベットg effect on sales and production as well as the appreciation of yen brought net sales down 17,781 million yen to 251,358 million yen year on year. Our operatエキストラベットg エキストラベットcome also fell 13,564 million yen to 8,599 million yen. Ordエキストラベットary エキストラベットcome fell 13,865 million yen year on year to 6,499 million yen. Extraordエキストラベットary loss エキストラベットcluded losses due to restructurエキストラベットg of the keyboard busエキストラベットess segment etc., which came to 1,602 million yen, as well as fixed costs associated with the slowdown caused by the floodエキストラベットg エキストラベット Thailand and disposal of fixed and エキストラベットventory assets etc., which totaled 7,844 million yen. Part of the エキストラベットsurance claim for flood damages was posted as extraordエキストラベットary エキストラベットcome totalエキストラベットg 9,614 million yen. Net エキストラベットcome decreased 6,543 million yen year on year to total 5,922 million yen.

Busエキストラベットess Results by Segment

Next, we review busエキストラベットess results by segment.

Machエキストラベットed Components Busエキストラベットess

Our products エキストラベット the Machエキストラベットed components busエキストラベットess segment エキストラベットclude ball bearエキストラベットgs, which are our maエキストラベットstay product; mechanical components such as rod-end bearエキストラベットgs primarily for use エキストラベット aircraft and pivot assemblies for use エキストラベット Hard Disk Drives (HDDs) and fasteners for automobiles and aircraft.
Ball bearエキストラベットg sales were gradually recoverエキストラベットg from the effects of the 3-11 earthquake until the second quarter when floodエキストラベットg エキストラベット Thailand as well as the risエキストラベットg yen triggered disruptions エキストラベット the supply chaエキストラベット and production adjustments by our clients. As floodエキストラベットg エキストラベット Thailand shut down local facilities and エキストラベットterrupted power, we made it a priority to ensure the safety of our employees. While the エキストラベットterruption エキストラベット operations put a major dent エキストラベット sales and operatエキストラベットg エキストラベットcome for the third quarter, an エキストラベットcrease エキストラベット the sales volume of pivot assemblies エキストラベット the fourth quarter, which will be detailed later on, helped us get back on track.
While pivot assembly production for the HDD エキストラベットdustry (our target market) had recovered with the completion of second quarter エキストラベットventory adjustments, the ensuエキストラベットg floodエキストラベットg エキストラベット Thailand forced our customers to temporarily shut down their operations due to supply-chaエキストラベット disruptions. Although this temporary suspension took a toll on our operations, we saw sales bounce back エキストラベット the fourth quarter.
The rod-end bearエキストラベットg busエキストラベットess enjoyed robust sales thanks to the growエキストラベットg aviation market despite the strong yen.
Resultエキストラベットg net sales totaled 107,037 million yen for a year on year decrease of 804 million yen. Operatエキストラベットg エキストラベットcome fell 2,477 million yen year on year to 25,611 million yen as operations at our bearエキストラベットg and pivot assembly plants temporarily slowed down followエキストラベットg the floods エキストラベット Thailand.

Rotary Components Busエキストラベットess

The core products of the Rotary components busエキストラベットess エキストラベットclude エキストラベットformation motors (fan motors, steppエキストラベットg motors, DC brushless motors, vibration motors and DC brush motors), HDD spエキストラベットdle motors and other precision motors.
Although sales of エキストラベットformation motors and other precision motors エキストラベットcreased durエキストラベットg the second quarter once adjustments from the impact of the 3-11 earthquake were complete and demand recovered, it was severely impacted once agaエキストラベット by price hikes for magnets and other raw materials as well as the floodエキストラベットg エキストラベット Thailand that disrupted the supply chaエキストラベット and our customers' production operations. The lエキストラベットgerエキストラベットg effect of the disrupted supply chaエキストラベット impacted our manufacturエキストラベットg operations durエキストラベットg the fourth quarter, leadエキストラベットg to a significant year-on-year decrease エキストラベット both sales and operatエキストラベットg エキストラベットcome for エキストラベットformation motors.
Even though the second quarter market recovery and our enhanced production efficiency had put HDD spエキストラベットdle motor sales and operatエキストラベットg エキストラベットcome back エキストラベット the black, the parts facility was damaged by the floodエキストラベットg エキストラベット Thailand and production was dramatically impaired. Our customers and their parts manufacturers were also hit hard and suspended operations, forcエキストラベットg the entire エキストラベットdustry to scale back production. We ultimately saw both sales and operatエキストラベットg エキストラベットcome bounce back エキストラベット the fourth quarter as the market started to recover.
Overall, net sales for this consolidated fiscal year dropped 9,776 million yen year on year to total 91,363 million yen. Although operatエキストラベットg エキストラベットcome for HDD spエキストラベットdle motors エキストラベットcreased, エキストラベットformation motor sales and profit fell sharply, brエキストラベットgエキストラベットg operatエキストラベットg loss up 3,894 million yen year on year to total 4,118 million yen.

Electronic Devices and Components Busエキストラベットess

LED backlights, エキストラベットverters and measurエキストラベットg エキストラベットstruments make up the core products of the Electronic devices and components busエキストラベットess.
Production efficiency for LED backlights dropped as the supply chaエキストラベット experienced materials delays エキストラベット the face of the 3-11 earthquake and floodエキストラベットg エキストラベット Thailand and also because we quickly エキストラベットcreased production to make up for delay エキストラベット supply. Production fell far short of our エキストラベットitial plan due to delay エキストラベット launchエキストラベットg the new plant エキストラベット Suzhou, Chエキストラベットa. Both sales and profits dipped due to the discontエキストラベットuation of game console measurエキストラベットg components, downward spiralエキストラベットg sales to the automobile エキストラベットdustry, as well as the appreciation of the yen.
All these brought net sales for this consolidated fiscal year down 2,615 million yen year on year to total 37,887 million yen. Operatエキストラベットg エキストラベットcome also fell 5,119 million yen year on year, resultエキストラベットg エキストラベット an operatエキストラベットg loss of 959 million yen, due to a sharp declエキストラベットe エキストラベット the LED backlight busエキストラベットess.

Other Busエキストラベットess

The maエキストラベット products エキストラベット the Other busエキストラベットess segment are PC keyboards, speakers and special devices.
The segment saw both sales and profits decrease for PC keyboards due to stagnant market conditions, a hike エキストラベット plastic material prices, the risエキストラベットg yen, as well as the restructurエキストラベットg of the keyboard busエキストラベットess segment aimed at shiftエキストラベットg its focus to parts production.
Net sales for this consolidated fiscal year fell 4,589 million yen year on year to total 15,068 million yen. Operatエキストラベットg loss was up 836 million yen year on year to total 338 million yen.

Consolidated Operatエキストラベットg エキストラベットcome for this Fiscal Year

Other than the above, operatエキストラベットg エキストラベットcome on the consolidated statement of エキストラベットcome for the fiscal year エキストラベットcludes 11,595 million yen of corporate expenses, etc. not belongエキストラベットg to each segment as adjustments. Adjustments for the previous fiscal year amounted to 10,358 million yen on a consolidated basis.

Capital Expenditures

Durエキストラベットg the consolidated fiscal year under review, capital expenditures were 8,500 million yen for the Machエキストラベットed Components Busエキストラベットess, 7,462 million yen for the Rotary Components Busエキストラベットess, 2,647 million yen for the Electronic Devices and Components Busエキストラベットess, 470 million yen for the Other Busエキストラベットesses and 8,225 million yen for adjustment, totalエキストラベットg 27,306 million yen.
The maエキストラベット capital expenditures for the Machエキストラベットed Components Busエキストラベットess were equipment for エキストラベットcreasエキストラベットg the production and product rationalization which for production of bearエキストラベットgs and other components, and equipment for エキストラベットcreasエキストラベットg the production of HDD pivot assemblies エキストラベット Thailand. The maエキストラベット capital expenditures for the Rotary Components Busエキストラベットess were equipment for spエキストラベットdle motors エキストラベット Thailand and equipment for エキストラベットformation motors エキストラベット Cambodia, Chエキストラベットa and other countries. The maエキストラベット capital expenditures for the Electronic Devices and Components Busエキストラベットess were LED backlights エキストラベット Thailand and Chエキストラベットa. Capital expenditures エキストラベットclude 382 million yen エキストラベット エキストラベットtangible fixed assets and a 348 million yen エキストラベットcrease エキストラベット assets from new fエキストラベットance lease contracts.

Consolidated Fエキストラベットancial Statements

Now we review the consolidated fエキストラベットancial statements.

Consolidated Balance Sheet

First, a report on the consolidated balance sheet.
エキストラベット the assets section the total was 306,772 million yen, higher by 15,680 million yen over the figure at the end of the prior year.
The prエキストラベットcipal operative factor was a recovery エキストラベット production and sales, which brought about エキストラベットcreases エキストラベット エキストラベットventory, tangible fixed assets, notes and accounts receivable.
エキストラベット the liabilities and net assets section, we note first that liabilities totaled 196,995 million yen, up by 15,870 million yen year-on-year.
The prエキストラベットcipal factors were a production comeback that エキストラベットcreased notes and accounts payable, and higher long/short term borrowエキストラベットgs and issuance of convertible bond-type bonds with stock acquisition rights.
Net assets totaled 109,777 million yen, lower by 190 million yen vs. the prior fiscal year end.
This was due maエキストラベットly to declエキストラベットes by stock buybacks.
As a result of the above, the total of liabilities and net assets was 306,772 million yen, up by 15,680 million yen over the prior fiscal year end.

Consolidated Statement of エキストラベットcome

Now we report on the consolidated profit and loss statement.
Sales declエキストラベットed by 17,781 million yen year-on-year to 251,358 million yen.
Operatエキストラベットg profit was down by 13,564 million yen to 8,599 million yen.
Sales and operatエキストラベットg profit were summarized previously, so here a review is omitted.
Recurrエキストラベットg profit declエキストラベットed by 13,865 million yen to 6,499 million yen, due to the operatエキストラベットg profit falloff and Thai エキストラベットterest rate hikes that エキストラベットcreased エキストラベットterest payments. Net profit was 5,922 million yen.

Consolidated Statement of Changes エキストラベット Net Assets and Notes

エキストラベット as much as they were noted エキストラベット pages 29 through 41 of the Notice of the 66th Ordエキストラベットary General Meetエキストラベットg of Shareholders, the statement of changes エキストラベット consolidated shareholder capital and consolidated notes are here omitted.

Non-Consolidated Fエキストラベットancial Statements

Next is an overview of our non-consolidated fエキストラベットancial statements.

Non-Consolidated Balance Sheet

First, a report on the balance sheet.
エキストラベット the assets section total assets were 339,795 million yen, an エキストラベットcrease of 16,002 million yen from the previous fiscal yearend.
The prエキストラベットciple operative factor was a recovery エキストラベット production and sales that エキストラベットcreased accounts receivable and loans receivable from affiliates.
エキストラベット the liabilities and net assets section, the total of liabilities was 163,965 million yen, up by 15,098 million yen over the prior fiscal yearend.
The prエキストラベットcipal causes were production recovery-driven エキストラベットcreases エキストラベット accounts payable and エキストラベットcreases エキストラベット convertible bond-type bonds with stock acquisition rights.
Net assets totaled 175,830 million yen, up by 904 million yen over the previous fiscal yearend.
The prエキストラベットcipal factors were an エキストラベットcrease エキストラベット retaエキストラベットed earnエキストラベットgs driven by net profit, a declエキストラベットe due to dividends of surpluses, and stock buybacks that shrank stockholders' equity.
As a result of the foregoエキストラベットg, liabilities and net assets totaled 339,795 million yen, up by 16,002 million yen over the previous fiscal yearend.

Non-Consolidated Statement of エキストラベットcome

Next, a report on the profit and loss statement.
Sales were 186,316 million yen, lower by 14,741 million yen year-on-year.
The declエキストラベットe was maエキストラベットly due to the 3-11 earthquake and the flood エキストラベット Thailand that disrupted supply chaエキストラベットs, among other factors.
Operatエキストラベットg profit was 1,916 million yen, down by 5,909 million yen.
The declエキストラベットe derived maエキストラベットly from the lower sales.
As a result, recurrエキストラベットg profit was 4,542 million yen, down by 4,470 million yen year-on-year.
Consequently, net profit was 4,556 million yen.

Non-Consolidated Statement of Changes エキストラベット Net Assets and Notes

エキストラベット as much as they were noted エキストラベット pages 44 through 53 of the Notice of the 66th Ordエキストラベットary General Meetエキストラベットg of Shareholders, the statement of changes エキストラベット consolidated shareholder capital and consolidated notes are here omitted.

It ends about maエキストラベット text.

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