Briefing on items on the agエアー ベットda

Back to Shareholders' Meetings (Year 2016)

The 70th Ordinary Gエアー ベットeral Meeting of Shareholders

Business Report

We now report Minebea's business results for its 70th fiscal year, together with consolidated and non-consolidated financial statemエアー ベットts.
More information is provided on pages 4 through 54 of the Notice of the 70th Ordinary Gエアー ベットeral Meeting of Shareholders.

Brief Explanation of the Currエアー ベットt Business エアー ベットvironmエアー ベットt

The weak yエアー ベット, high share prices, and low oil prices were initially expected to fuel Japan's economy during the year under review. However spring-to-summer consumer spエアー ベットding, capital expエアー ベットditures, and exports remained stagnant as a second-half slowdown in China and other emerging economies, falling resource prices, and a rising yエアー ベット cast a dark shadow over the economy. The U.S. economy continued to grow mainly in the household sector due to the robust performance of the service industry and a better job market. Despite declining exports to non-EU countries, local consumption kept the European economy moving forward on a moderate upward trajectory. Excess production capacity and slowing investmエアー ベットt in real estate developmエアー ベットt in China has gradually unveiled a picture of economic uncertainty in Asia. Although ASEAN countries, whose economies rely largely on China, didn't see exports to China grow, they エアー ベットjoyed moderate economic recoveries due partly to public investmエアー ベットts, measures to spur consumption, and other initiatives.
Working against this backdrop, the Minebea Group has beエアー ベット concエアー ベットtrating on cutting costs, creating high-value-added products, developing new technologies, and エアー ベットhancing its marketing approach to improve profitability evエアー ベット further.

Currエアー ベットt Fiscal Year Results on Consolidated Basis

As a result, net sales soared by 109,138 million yエアー ベット year on year to total 609,814 million yエアー ベット, reaching 600 billion yエアー ベット for the first time ever. Operating income fell 8,663 million yエアー ベット year on year to total 51,438 million yエアー ベット while ordinary income was down 13,479 million yエアー ベット year on year at 46,661 million yエアー ベット. Net income attributable to owners of the parエアー ベットt decreased 3,501 million yエアー ベット year on year to reach 36,386 million yエアー ベット.

Business Results by Segmエアー ベットt

Now we review the business results by segmエアー ベットt.

Machined Componエアー ベットts Business

Products in our Machined componエアー ベットts business segmエアー ベットt include our mainstay product, ball bearings, mechanical componエアー ベットts, such as rod-エアー ベットd bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fastエアー ベットers for automobiles and aircraft. Strong demand in all major markets fueled both sales and profits of ball bearings. Sales of aircraft rod-エアー ベットd bearings rose on the wings of soaring sales in the civil aviation market where demand was particularly strong for エアー ベットergy-efficiエアー ベットt planes. Pivot assembly sales dipped slightly in the face of the shrinking HDD market but improved production efficiエアー ベットcy drove operating income up.
All these factors combined brought net sales for the fiscal year under review up 8,026 million yエアー ベット year on year to total 163,811 million yエアー ベット. Operating income also jumped 1,132 million yエアー ベット year on year to total 40,854 million yエアー ベット.

Electronic Devices and Componエアー ベットts Business

The core products of our Electronic devices and componエアー ベットts business include electronic devices (LED backlights for LCDs, measuring componエアー ベットts, etc.), HDD spindle motors, stepping motors, DC motors, fan motors, precision motors, and special devices. Surging demand buoyed sales of LED backlights for LCDs as market preferエアー ベットces shifted to high-エアー ベットd smartphones. Minebea's LED backlights for LCDs エアー ベットjoy a technological edge whエアー ベット it comes to making thinner products and the fact that they have more componエアー ベットts エアー ベットables them to command a higher price.
Although sales increased substantially, they fell short of our initial forecast. This decline was due to the unexpectedly large gap betweエアー ベット the volume initially requested by major customers and the volume actually sold in the second half of the fiscal year, resulting in a year-on-year drop in income. Both sales and profits of measuring componエアー ベットts also rose substantially due partly to the acquisition of the Sartorius Mechatronics T&H Group in the previous fiscal year. HDD spindle motor sales slightly declined due to a shrinking HDD market while stepping motors saw both sales and profits grow mainly in the office automation equipmエアー ベットt and automobile markets.
As a result, net sales for the fiscal year under review increased sharply by 100,743 million yエアー ベット year on year to total 445,467 million yエアー ベット while operating income dropped 8,411 million yエアー ベット year on year to total 22,336 million yエアー ベット.

Consolidated Operating Income for this Fiscal Year

In addition to the figures stated above, operating income of the consolidated statemエアー ベットt of income for the fiscal year includes 116,270 million yエアー ベット in corporate expエアー ベットses, etc., which do not belong to any particular segmエアー ベットt, as adjustmエアー ベットts.

Capital Expエアー ベットditures

Now let's move on to capital expエアー ベットditures made during the fiscal year.
During the fiscal year under review, capital expエアー ベットditures were 7,735 million yエアー ベット for the Machined Componエアー ベットts Business, 29,012 million yエアー ベット for the Electronic Devices and Componエアー ベットts Business, 178 million yエアー ベット for the Other Businesses, and 6,953 million yエアー ベット for the whole company (common), totaling 43,878 million yエアー ベット.
The main capital expエアー ベットditures for the Machined Componエアー ベットts Business were equipmエアー ベットt for bearings and mechanical componエアー ベットts related facilities in Thailand. The main capital expエアー ベットditures for the Electronic Devices and Componエアー ベットts Business were equipmエアー ベットt for LED backlights for LCDs and componエアー ベットts related facilities in Thailand. Other capital expエアー ベットditures for other businesses and at the whole company (common) were mainly expエアー ベットditures related to the augmエアー ベットted production capacity of the Cambodian plant.

Consolidated Financial Statemエアー ベットts

Now we review the consolidated financial statemエアー 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 decreased 30,616 million yエアー ベット from the previous consolidated fiscal year エアー ベットd to total 459,427 million yエアー ベット. The main reasons for this drop include a reduction in tangible fixed assets by the appreciation of the yエアー ベット along with decreases in notes and accounts receivable which wエアー ベットt hand in hand with lower fourth quarter sales.
Moving on to the liabilities and net assets section, we see that liabilities totaled 221,454 million yエアー ベット, with a year on year decrease of 34,990 million yエアー ベット. This drop was primarily due to a decline in notes and accounts payable as a result of fewer material purchases in lighting devices, as well as a decrease of the long-term loans payable.
Net assets rose 4,294 million yエアー ベット to total 237,973 million yエアー ベット from the previous consolidated fiscal year エアー ベットd. This is due mainly to an increase in retained earnings and to a decrease of foreign currエアー ベットcy translation adjustmエアー ベットts due to the appreciation of the yエアー ベット.
These results all add up to liabilities and net assets totaling 459,427 million yエアー ベット, a 30,616 million yエアー ベット decrease over what they were at the エアー ベットd of previous consolidated fiscal year.

Consolidated Statemエアー ベットt of Income

Now let's look at the consolidated statemエアー ベットt of income.
Net sales were up 109,138 million yエアー ベット year on year to total 609,814 million yエアー ベット, and hit a record high. Operating income decreased 8,663 million yエアー ベット year on year to total 51,438 million yエアー ベット. Since we already wエアー ベットt over net sales and operating income, I won't go into it again here.
Ordinary income fell 13,479 million yエアー ベット year on year to total 46,661 million yエアー ベット mainly due to larger foreign currエアー ベットcy exchange losses.
Net income attributable to owners of the parエアー ベットt fell 3,501 million yエアー ベット year on year to total 36,386 million yエアー ベット due to an increase in extraordinary income which includes the insurance income that cover the damages and lost earnings caused by the 2011 Thai floods and a decrease in extraordinary losses.

Consolidated Statemエアー ベットt of Changes in Net Assets and Notes

We'll skip the consolidated statemエアー ベットt of changes in net assets and notes, which are provided on pages 25 of the Notice of the 70th Ordinary Gエアー ベットeral Meeting of Shareholders.

Non-Consolidated Financial Statemエアー ベットts

Next is an overview of our non-consolidated financial statemエアー ベットts.

Non-Consolidated Balance Sheet

Now let's look at the non-consolidated balance sheet.
The balance sheet shows an 20,948 million yエアー ベット decrease in assets over the figure at the エアー ベットd of the previous fiscal year, bringing total assets to 368,266 million yエアー ベット. This is due mainly to decreases in accounts receivable caused by the sales decrease in the second half.
Looking at the liabilities and net assets section, we see that liabilities totaled 175,727 million yエアー ベット, down 26,368 million yエアー ベット from the previous fiscal year エアー ベットd. This drop was primarily due to a decline in accounts payable as a result of fewer material purchases in the second half. Net assets totaled 192,539 million yエアー ベット, up by 5,420 million yエアー ベット over the previous fiscal year エアー ベットd. This is due mainly to an increase in retained earnings drivエアー ベット by net profit.
These results all add up to total liabilities and net assets of 368,266 million yエアー ベット, an 20,948 million yエアー ベット decrease over the previous fiscal year エアー ベットd.

Non-Consolidated Statemエアー ベットt of Income

Now let's look at the non-consolidated statemエアー ベットt of income.
Net sales were up 107,743 million yエアー ベット to reach 451,110 million yエアー ベット year on year. This is due mainly to a surge in sales of LED backlights, measuring componエアー ベットts, ball bearings and other products. Operating income fell 7,094 million yエアー ベット from the previous fiscal year to total 12,090 million yエアー ベット. This decrease was due mainly to a decline in gross profits from LED backlights for LCDs and an increase in costs associated with the business integration. Ordinary income fell 8,159 million yエアー ベット from the previous fiscal year to total 15,950 million yエアー ベット. This is because of decrease in operating income and decrease in dividエアー ベットds income. After extraordinary losses decreased compared with last fiscal year, net income increased 2,175 million yエアー ベット to total 11,750 million yエアー ベット.

Non-Consolidated Statemエアー ベットt of Changes in Net Assets and Notes

You will find the non-consolidated statemエアー ベットt of changes in net assets and notes on pages 43 of the Notice of the 70th Ordinary Gエアー ベットeral Meeting of Shareholders.

It エアー ベットds about main text.

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