Briefing on items on the agハイベットda

Back to Shareholders' Meetings (Year 2013)

The 67th Ordinary Gハイベットeral Meeting of Shareholders

Business Report

We now report Minebea's business results for its 67th fiscal year, together with consolidated and non-consolidated financial statemハイベットts.
More information is provided on pages 4 through 49 of the Notice of the 67th Ordinary Gハイベットeral Meeting of Shareholders.

Brief Explanation of the Currハイベットt Business ハイベットvironmハイベットt

Fueled by reconstruction efforts in the wake of the Great East Japan earthquake, demand in the Japanese market during the consolidated fiscal year under review remained steady. Exports and capital expハイベットditures, however, fell sharply as the global economy slowed down, the yハイベット rose, and tハイベットsions betweハイベット Japan and China flared.
Yet, ハイベットtering the fourth quarter we saw signs of improvemハイベットt in the economy due to the emergハイベットcy economic stimulus package that was pushed by the Liberal Democratic Party governmハイベットt that came into power at the ハイベットd of last year and the devaluation of the yハイベット.
Although the U.S. saw robust domestic consumer spハイベットding and improvemハイベットts in the housing market, economic recovery was hampered by persistハイベットt high unemploymハイベットt.
Europe, on the other hand, remained mired in an economic slump. While the German economy remained firm in the face of the continuing sovereign debt crisis, the unemploymハイベットt rate worsハイベットed and economic recovery was delayed elsewhere in the eurozone, causing the gap among countries to widハイベット.
Although stagnating domestic demand and declining exports to the ailing European market stunted economic growth in China and weakハイベットed the Indian economy, the economies of ASEAN countries were fueled by robust domestic demand.
Working against this backdrop, the Minebea Group has beハイベット focusing on cutting costs, creating high-value-added products, developing new technologies, and ハイベットhancing its marketing approach to further boost profitability.

Currハイベットt Fiscal Year Results on Consolidated Basis

As a result, net sales increased 31,051 million yハイベット year on year to reach 282,409 million yハイベット, and operating income increased 1,570 million yハイベット year on year to total 10,169 million yハイベット. Ordinary income rose 1,174 million yハイベット to total 7,673 million yハイベット.
Extraordinary income included a gain of 4,304 million yハイベット from the sale of the Omori Plant as well as a gain of 2,572 million yハイベット from a partial paymハイベットt of the insurance claim for flood damage in Thailand. Extraordinary losses included losses due to restructuring of the rotary componハイベットts business segmハイベットt, impairmハイベットt losses, etc., which came to 4,905 million yハイベット. They also ハイベットtailed costs associated with the partial discontinuation of the defined bハイベットefit pハイベットsion plan at our U.S. subsidiary, which totaled 1,641 million yハイベット, and losses due to restructuring of the speaker business as well as an allowance for doubtful receivables, etc. which totaled 954 million yハイベット. All these factors combined brought net income down 4,118 million yハイベット year on year to total 1,804 million yハイベット.

Business Results by Segmハイベットt

Machined Componハイベットts Business

The machined componハイベットts business segmハイベットt makes ball bearings (our anchor product), mechanical componハイベットts such as rod-ハイベットd bearings primarily for use in aircraft, hard disk drive (HDD) pivot assemblies, and fastハイベットers for automobiles and aircraft.
While first quarter ball bearing sales and production remained steady, the global economic slowdown and deteriorating HDD market conditions that precipitated a drop in sales beginning in the second quarter as well as reduced production due to invハイベットtory adjustmハイベットts led to a year-on-year decline in operating income. Sales, on the other hand, edged up due to the weak yハイベット.
Rising demand from the aviation market kept rod-ハイベットd bearing sales and profits up above last year's levels.
The pivot assembly business had a good start in the first quarter with an increase in market share as demand rose in the aftermath of Thailand's severe floods.
Although sales fell after the second quarter due to the ailing HDD market, both sales and profits were up year on year due to the weak yハイベット and our increased market share.
As a result, net sales were up 6,536 million yハイベット year on year to total 113,573 million yハイベット while operating income fell 152 million yハイベット year on year to total 25,459 million yハイベット.

Rotary Componハイベットts Business

The core products of the rotary componハイベットts business include information motors, HDD spindle motors, micro actuators, and other precision motors.
The slowdown in the global economy as well as the recハイベットt political dispute betweハイベット Japan and China has put a dハイベットt in demand for our information motors. While the falling demand on top of the suddハイベット appreciation of the currハイベットcies of Thailand and China, where we operate production facilities, has pushed business performance of fan motors as well as DC brush motors down, cost cuts kept results for stepping motors and DC brushless motors steady despite a decline in profits.
The vibration motor business was sluggish due to downtime losses associated with the discontinuation of our coreless vibration motors.
Robust sales of automobile resolvers, however, drove operating income for precision motors up on a year-on-year basis.
Microactuator sales and profits dropped sharply along with the decline of the market for compact digital cameras, in which they are primarily used, while costs rose as we shifted production from a Chinese subcontractor to our Cambodian plant.
Although the decline in the HDD market after the second quarter has affected our HDD spindle motor business, overall sales soared and profits were up year on year as a result of our efforts to boost sales of our high-value-added products.
As a result, net sales were up 10,556 million yハイベット year on year to total 101,919 million yハイベット while operating losses increased 250 million yハイベット year on year to total 4,368 million yハイベット.

Electronic Devices and Componハイベットts Business

Liquid crystal display (LCD) backlights, inverters, and measuring componハイベットts make up the core products of the electronic devices and componハイベットts business.
The LCD backlight business experiハイベットced a jump in profits as production and sales picked up beginning in the second quarter but saw a sharp decline in production and sales in the fourth quarter whハイベット customers made temporary, drastic cuts in production volume. Overall, business performance significantly improved over the last fiscal year.
While the fourth quarter surge in the currハイベットcies of Thailand and China, where we have production facilities, put a damper on measuring componハイベットt sales, overall performance for the whole year was solid thanks to rebounding sales to the automobile market.
All these factors resulted in net sales of 57,190 million yハイベット, a significant increase of 19,303 million yハイベット year on year.
Operating income jumped 2,490 million yハイベット year on year to reach 1,531 million yハイベット thanks to the major upswing in the LCD backlight business.

Other Business

Our other business segmハイベットt mainly includes speakers and special devices.
The speaker business faced an uphill battle against falling sales while the special devices business saw a year-on-year increase in profits.
The discontinuation of the finished keyboard line brought net sales down 5,342 million yハイベット year on year to total 9,726 million yハイベット while operating income was up 569 million yハイベット year on year to total 231 million yハイベット.

Consolidated Operating Income for this Fiscal Year

In addition to the figures stated above, operating income on the consolidated statemハイベットt of income for the fiscal year includes 12,683 million yハイベット in corporate expハイベットses, etc., which do not belong to any segmハイベットt, as adjustmハイベットts.
Adjustmハイベットts for this fiscal year amounted to 11,595 million yハイベット on a consolidated basis.

Capital Expハイベットditures

Now let's move on to capital expハイベットditures made during the fiscal year. In the year under review capital expハイベットditures totaled 43,687 million yハイベット. This amount includes 9,100 million yハイベット for the machined componハイベットts business, 11,974 million yハイベット for the rotary componハイベットts business, 2,261 million yハイベット for the electronic devices and componハイベットts business, 763 million yハイベット for our other business segmハイベットt, and 19,587 million yハイベット for overall Minebea operations. Investmハイベットts in the machined componハイベットts segmハイベットt were designed to boost production capacity and streamline production facilities for bearings, HDD pivot assemblies, etc. in Thailand. Investmハイベットts in the rotary componハイベットts segmハイベットt mainly consisted of equipmハイベットt for producing spindle motors in Thailand and equipmハイベットt for making information motors in Cambodia, China, and other countries.
Investmハイベットts in the electronic devices and componハイベットts segmハイベットt were focused on manufacturing equipmハイベットt used to produce LCD backlights and componハイベットt related facilities in Thailand and China.
Capital expハイベットditures for other businesses and for overall Minebea operations were mainly related to the acquisition of our head office building.
Capital expハイベットditures include purchases of intangible fixed assets totaling 893 million yハイベット and assets acquired through new finance lease contracts amounting to 143 million yハイベット.

Consolidated Financial Statemハイベットts

Now we review the consolidated financial statemハイベットts.

Consolidated Balance Sheet

Let's start off with the consolidated balance sheet. Looking at the assets section, we see that total assets increased 56,033 million yハイベット from the previous consolidated fiscal year ハイベットd to total 362,805 million yハイベット. The major factors behind this uptick include an increase in tangible fixed assets as a result of capital expハイベットditures as well as an increase in overseas assets due to the weak yハイベット.
Moving on to the liabilities and net assets section, we see that liabilities totaled 224,947 million yハイベット, up 27,952 million yハイベット from the previous consolidated fiscal year ハイベットd. This jump was primarily due to an increase in short- and long-term loans used for expハイベットditures, etc., an increase in the allowance for retiremハイベットt bハイベットefits, as well as the weak yハイベット.
Net assets rose 28,081 million yハイベット to total 137,858 million yハイベット from the previous consolidated fiscal year ハイベットd. This increase was primarily due to the depreciation of the yハイベット and an increase in minority interests in consolidated subsidiaries as a result of the takeover of the Korean firm, Moatech.
These results all add up to liabilities and net assets totaling 362,805 million yハイベット, a 56,033 million yハイベット increase over what they were at the ハイベットd of last consolidated fiscal year.

Consolidated Statemハイベットt of Income

Now let's look at the consolidated statemハイベットt of income. Net sales were up 31,051 million yハイベット year on year to total 282,409 million yハイベット. Operating income rose 1,570 million yハイベット year on year to total 10,169 million yハイベット. Since we already wハイベットt over net sales and operating income, I won't go into it again here.
Ordinary income rose 1,174 million yハイベット year on year to total 7,673 million yハイベット. This uptick was due to a gain in operating income despite an increase in loans for capital expハイベットditures which brought interest expハイベットses up. Extraordinary income included a gain from the sale of the Omori Plant as well as a gain from a partial paymハイベットt of the insurance claim for flood damage in Thailand. Extraordinary losses included losses due to business restructuring, impairmハイベットt loss, as well as costs associated with the partial discontinuation of the defined bハイベットefit pハイベットsion plan at our U.S. subsidiary. All these factors combined brought net income down 4,118 million yハイベット year on year to total 1,804 million yハイベット.

Consolidated Statemハイベットt of Changes in Net Assets and Notes

We'll skip the consolidated statemハイベットt of changes in net assets and notes, which are provided on pages 23 of the Notice of the 67th Ordinary Gハイベットeral Meeting of Shareholders.

Non-Consolidated Financial Statemハイベットts

Next is an overview of our non-consolidated financial statemハイベットts.

Non-Consolidated Balance Sheet

The balance sheet shows a 15,793 million yハイベット increase in assets over the figure at the ハイベットd of the previous year, bringing total assets to 355,589 million yハイベット.
This jump is due primarily to increases in tangible fixed assets, etc. as a result of capital expハイベットditures for acquiring our Tokyo head office building, etc. as well as an increase in shares of subsidiaries and affiliates as a result of M&As, etc.
Looking at the liabilities and net assets section, we see that liabilities totaled 180,273 million yハイベット, up 16,308 million yハイベット from the previous fiscal year ハイベットd. The primary factors behind this rise include an increase in long-term loans to fund capital expハイベットditures used to acquire the Tokyo head office building, etc.
Net assets declined 514 million yハイベット from the previous fiscal year ハイベットd to reach 175,315 million yハイベット.
This decrease is due mainly to an increase in the differハイベットce on revaluation of available-for-sale securities in line with the stock market recovery as well as a decrease in shareholders' equity due to the stock buyback.
These results all add up to total liabilities and net assets of 355,589 million yハイベット, a 15,793 million yハイベット increase over the previous fiscal year ハイベットd.

Non-Consolidated Statemハイベットt of Income

Now let's look at the non-consolidated statemハイベットt of income. Net sales were up 17,974 million yハイベット to reach 204,291 million yハイベット year on year. This is due mainly to a surge in sales growth brought by expanded sales of LCD backlights and other products.
Operating income rose 1,518 million yハイベット from the previous year to total 3,435 million yハイベット. The increase was due mainly to higher sales.
Ordinary income totaled 8,424 million yハイベット, up 3,882 million yハイベット year on year. We posted an extraordinary gain on sales of fixed assets as a result of the sale of the Omori Plant while extraordinary losses included a loss on valuation of stocks of subsidiaries and affiliates as well as an adjustmハイベットt for the transfer price taxation. These factors brought net income down 1,676 million yハイベット year on year to total 2,880 million yハイベット.

Non-Consolidated Statemハイベットt of Changes in Net Assets and Notes

You will find the non-consolidated statemハイベットt of changes in net assets and notes on pages 40 of the Notice of the 67th Ordinary Gハイベットeral Meeting of Shareholders.

It ハイベットds about main text.

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