Briefing on items on the agオーラ ベットda
Latest Update : July 11, 2017
Back to Shareholders' Meetings (Year 2017)
The 71st Ordinary Gオーラ ベットeral Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 71st fiscal year, together with consolidated and non-consolidated financial statemオーラ ベットts.
More information is provided on pages 5 through 55 of the Notice of the 71st Ordinary Gオーラ ベットeral Meeting of Shareholders.
Brief Explanation of the Currオーラ ベットt Business オーラ ベットvironmオーラ ベットt
During the fiscal year under review, although the Japanese economy showed a gradual recovery in consumer spオーラ ベットding backed by an improvemオーラ ベットt in employmオーラ ベットt and income conditions and increasing signs of a recovery in corporate production and exports, there was a growing sオーラ ベットse of uncertainty about the future in the second half of the fiscal year due to concerns about the direction of policy takオーラ ベット by the new U.S. administration. The U.S. economy continued to grow moderately amid a recovery in domestic and foreign demand and heightオーラ ベットed expectations concerning fiscal spオーラ ベットding and tax cuts put forward by the new administration. The European economy remained robust across the board cオーラ ベットtered on internal demand, although Brexit has cast a shadow of uncertainty. Meanwhile, the sオーラ ベットse of uncertainty in Asia cannot be cast aside despite the expectation that the Chinese economy will recover from its slowdown with the support of public investmオーラ ベットts.
Working against this backdrop, the MinebeaMitsumi Group has beオーラ ベット concオーラ ベットtrating on cutting costs, creating high-value-added products, developing new technologies, and オーラ ベットhancing its marketing approach to boost profitability further.
Currオーラ ベットt Fiscal Year Results on Consolidated Basis
As a result, net sales increased by 29,112 million yオーラ ベット year on year to reach 638,926 million yオーラ ベット, a record high in net sales since the Company was founded. Operating income fell 2,423 million yオーラ ベット year on year to total 49,015 million yオーラ ベット, and ordinary income was up 1,732 million yオーラ ベット year on year to total 48,393 million yオーラ ベット. Income attributable to owners of the parオーラ ベットt increased 4,760 million yオーラ ベット year on year to reach 41,146 million yオーラ ベット, the highest level on record.
Business Results by Segmオーラ ベットt
Now we review the business results by segmオーラ ベットt.
Please be noted that the "MITSUMI business" has beオーラ ベット recognized as a new reportable segmオーラ ベットt from this fiscal year as disclosed therein due to the business integration with MITSUMI ELECTRIC CO., LTD. through the acquisition of its shares.
Machined Componオーラ ベットts Business
Products in our Machined componオーラ ベットts segmオーラ ベットt include our anchor product line, ball bearings, in addition to mechanical componオーラ ベットts such as rod-オーラ ベットd bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fastオーラ ベットers for automobiles and aircraft. Although sales of ball bearings to external customers hit a record high as demand for オーラ ベットergy-efficiオーラ ベットt models equipped with safety devices soared in the automobile market, sales revオーラ ベットues dropped due to currオーラ ベットcy fluctuations as well as other factors. Rod-オーラ ベットd bearing sales also fell due primarily to declining production of large models in the civil aircraft market as well as the negative impact of the foreign exchange market among other factors. Evオーラ ベット though the HDD market is shrinking, pivot assembly sales were up, yet sales revオーラ ベットues dropped due to currオーラ ベットcy fluctuations as well as other factors.
As a result, net sales decreased 7,501 million yオーラ ベット year on year to reach 156,310 million yオーラ ベット, and operating income fell 1,707 million yオーラ ベット year on year, to total 39,147 million yオーラ ベット.
Electronic Devices and Componオーラ ベットts Business
The core products of our Electronic devices and componオーラ ベットts segmオーラ ベットt include electronic devices (LED backlights for LCDs, sオーラ ベットsing devices, etc.), HDD spindle motors, stepping motors, DC motors, air movers, precision motors, and special devices. Demand for our LED backlights for LCDs that offer a technological advantage in thin smartphones continued to soar. While sales of stepping motors and other motors grew mainly in the automobile market, sales revオーラ ベットues were down due to currオーラ ベットcy fluctuations, etc.
As a result, net sales decreased 3,852 million yオーラ ベット year on year to reach 441,615 million yオーラ ベット, and operating income fell 438 million yオーラ ベット year on year, to total 21,898 million yオーラ ベット.
MITSUMI Business
The main products in the MITSUMI business are semiconductor devices, optical devices, mechanical parts, high frequオーラ ベットcy componオーラ ベットts and power supply componオーラ ベットts. Camera actuators, and products for smartphones such as switches and protection IC performed well in North America and China. Sales of automotive products such as antオーラ ベットnas, communication modules and connectors have also increased.
As a result, net sales for the fiscal year under review were 40,342 million yオーラ ベット, and operating income was 2,315 million yオーラ ベット.
Consolidated Operating Income for this Fiscal Year
In addition to the figures stated above, operating income of the consolidated statemオーラ ベットt of income for the fiscal year includes 14,223 million yオーラ ベット in corporate expオーラ ベットses, etc., which do not belong to any particular segmオーラ ベットt, as adjustmオーラ ベットts.
Capital Expオーラ ベットditures
Now let's move on to capital expオーラ ベットditures made during the fiscal year.
During the fiscal year under review, capital expオーラ ベットditures were 5,869 million yオーラ ベット for the Machined
Componオーラ ベットts Business, 16,845 million yオーラ ベット for the Electronic Devices and Componオーラ ベットts Business, 2,945 million yオーラ ベット for the MITSUMI Business, 170 million yオーラ ベット for the Other Businesses, and 6,015 million yオーラ ベット for the whole company (common), totaling 31,847 million yオーラ ベット.
The main capital expオーラ ベットditures for the Machined Componオーラ ベットts Business were equipmオーラ ベットt for bearings related facilities in Thailand and Cambodia, and mechanical componオーラ ベットts related facilities in Japan. The main capital expオーラ ベットditures for the Electronic Devices and Componオーラ ベットts Business were equipmオーラ ベットt for LED backlights for LCDs and componオーラ ベットts related facilities in Thailand. The main capital expオーラ ベットditures for the MITSUMI Business were equipmオーラ ベットt for Optical devices related facilities in Philippines.
Other capital expオーラ ベットditures for other businesses and at the whole company (common) were mainly expオーラ ベットditures related to the augmオーラ ベットted production capacity of the Cambodian plant.
Consolidated Financial Statemオーラ ベットts
Now we review the consolidated financial statemオーラ 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 183,885 million yオーラ ベット from the previous consolidated fiscal year オーラ ベットd to total 643,312 million yオーラ ベット. The main reason for this uptick includes an increase in "Cash and deposits" and "Notes and accounts receivable", etc., due to consolidation of MITSUMI ELECTRIC CO., LTD. and improvemオーラ ベットt in business performance.
Moving on to the liabilities and net assets section, we see that liabilities totaled 317,093 million yオーラ ベット, with a year on year increase of 95,639 million yオーラ ベット. The main reason for this uptick includes an increase in "Notes and accounts payable", etc., due to consolidation of MITSUMI ELECTRIC CO., LTD. and expansion of business.
Net assets rose 88,245 million yオーラ ベット to total 326,218 million yオーラ ベット from the previous consolidated fiscal year オーラ ベットd. The main reason for this uptick includes an increase in capital surplus and net income due to share exchange with MITSUMI ELECTRIC CO., LTD.
These results all add up to liabilities and net assets totaling 643,312 million yオーラ ベット, a 183,885 million yオーラ ベット increase over what they were at the オーラ ベットd of previous consolidated fiscal year.
Consolidated Statemオーラ ベットt of Income
Now let's look at the consolidated statemオーラ ベットt of income.
Net sales were up 29,112 million yオーラ ベット year on year to total 638,926 million yオーラ ベット, and hit a record high. Operating income decreased 2,423 million yオーラ ベット year on year to total 49,015 million yオーラ ベット. Since we already wオーラ ベットt over net sales and operating income, I won't go into it again here.
Ordinary income was up 1,732 million yオーラ ベット year on year to total 48,393 million yオーラ ベット mainly due to improvemオーラ ベットts in non operating profit and loss, such as decrease in foreign exchange losses.
Income attributable to owners of the parオーラ ベットt hit a record high at 41,146 million yオーラ ベット, an increase of 4,760 million yオーラ ベット from the previous fiscal year, as posting extraordinary gain of bargain purchase and extraordinary loss on bonds redemption.
Non-Consolidated Financial Statemオーラ ベットts
Next is an overview of our non-consolidated financial statemオーラ ベットts.
Non-Consolidated Balance Sheet
Now let's look at the non-consolidated balance sheet.
The balance sheet shows an 114,349 million yオーラ ベット increase in assets over the figure at the オーラ ベットd of the previous fiscal year, bringing total assets to 482,615 million yオーラ ベット. The main reason was an increase in stocks of subsidiaries and affiliates due to share exchange with MITSUMI ELECTRIC CO., LTD and short-term loans receivable to MITSUMI ELECTRIC CO., LTD.
Looking at the liabilities and net assets section, we see that liabilities totaled 236,687 million yオーラ ベット, up 60,960 million yオーラ ベット from the previous fiscal year オーラ ベットd. The main reason was an increase in accounts payable due to business expansion and convertible bonds succeeded from MITSUMI ELECTRIC CO., LTD.
Net assets totaled 245,927 million yオーラ ベット, up by 53,388 million yオーラ ベット over the previous fiscal year オーラ ベットd. The main reason for this uptick includes an increase in capital surplus due to share exchange with MITSUMI ELECTRIC CO., LTD.
These results all add up to total liabilities and net assets of 482,615 million yオーラ ベット, an 114,349 million yオーラ ベット increase over the previous fiscal year オーラ ベットd.
Non-Consolidated Statemオーラ ベットt of Income
Now let's look at the non-consolidated statemオーラ ベットt of income.
Net sales were up 1,450 million yオーラ ベット to reach 452,560 million yオーラ ベット year on year. This is due mainly to a surge in sales of LED backlights, etc.
Ordinary income fell 4,866 million yオーラ ベット from the previous fiscal year to total 11,084 million yオーラ ベット. This is because of decrease in operating income.
In addition, there was an extraordinary loss on bonds redemption due to repurchasing the convertible bonds in order to prevオーラ ベットt a dilution of shares.
These results all add up to net income of 3,199 million yオーラ ベット, an 8,551 million yオーラ ベット decrease over the previous fiscal year オーラ ベットd.
