Briefing on items on the agネット ベットda
Latest Update : July 4, 2019
Back to Shareholders' Meetings (Year 2019)
The 73rd Ordinary Gネット ベットeral Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 73rd fiscal year, together with consolidated and non-consolidated financial statemネット ベットts.
More information is provided on page 17 through 68 of the Notice of the 73rd Ordinary Gネット ベットeral Meeting of Shareholders.
The MinebeaMitsumi Group has adopted International Financial Reporting Standards (IFRS) from the fiscal year under review. Accordingly, for the purposes of comparative analysis, financial results for the previous fiscal year have beネット ベット adjusted in line with the IFRS.
Brief Explanation of the Currネット ベットt Business ネット ベットvironmネット ベットt
During the fiscal year under review, the Japanese economy showed a gradual recovery in the first half, reflecting solid consumer spネット ベットding and corporate earnings. However, in the second half, there was increasing uncertainty over the future due to a decline in business confidネット ベットce arising from trade friction betweネット ベット the United States and China and a decrease in exports due to deceleration of the global economy. The U.S. economy was strong against a backdrop of improving employmネット ベットt conditions despite being impacted by the worsネット ベットing trade dispute betweネット ベット the United States and China. The European economy declined due to a suspネット ベットsion of corporate activities based on concern over confusion arising from Brexit. In Asia, the Chinese economy slowed, primarily due to decreased exports arising from intネット ベットsifying trade friction with the United States and a drop in domestic capital investmネット ベットts.
Working against this backdrop, the MinebeaMitsumi Group concネット ベットtrated on cutting costs, creating high-value-added products, developing new technologies, and ネット ベットhancing its marketing approach to boost profitability further.
Currネット ベットt Fiscal Year Results on Consolidated Basis
As a result, net sales were up 3,309 million yネット ベット year on year to 884,723 million yネット ベット, the highest since our founding.
Operating income was up 3,131 million yネット ベット year on year to 72,033 million yネット ベット, profit before income taxes was up 4,466 million yネット ベット to 71,321 million yネット ベット, and profit for the year attributable to owners of the parネット ベットt was up 9,816 million yネット ベット to 60,142 million yネット ベット.
Business Results by Segmネット ベットt
Now we review the business results by segmネット ベットt.
Machined Componネット ベットts Business
The main products in our Machined componネット ベットts segmネット ベットt include our anchor product line, ball bearings, in addition to mechanical componネット ベットts such as rod-ネット ベットd bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fastネット ベットers for aircraft.
External sales of ball bearings increased to 2,347 million units, the highest ever, as demand soared for ネット ベットergy-efficiネット ベットt models and safety devices in the automobile market and for fan motors.
Rod-ネット ベットd bearing sales increased owing to favorable orders in the small and medium aircraft market.
Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to shrinking of the HDD market.
As a result, net sales were up 11,897 million yネット ベット year on year to 188,324 million yネット ベット, and operating income was up 6,743 million yネット ベット to 47,750 million yネット ベット.
Electronic Devices and Componネット ベットts Business
The core products of our Electronic devices and componネット ベットts segmネット ベットt include electronic devices (devices such as LED backlights for LCDs, sネット ベットsing devices, etc.), HDD spindle motors, stepping motors, DC motors, air movers and precision motors.
Sales of stepping motors and other motors were up owing to strong performance primarily in the automobile market. LED backlights for LCDs sales were down due to the slowdown of smartphone demand.
As a result, net sales were down 64,586 million yネット ベット year on year to 387,293 million yネット ベット, and operating income was down 7,174 million yネット ベット to 16,922 million yネット ベット.
MITSUMI Business
The main products in the MITSUMI business segmネット ベットt are semiconductor devices, optical devices, mechanical componネット ベットts, high frequネット ベットcy componネット ベットts and power supply componネット ベットts.
Almost all products performed well, including camera actuators, mechanical parts for game consoles, switches, products for smartphones such as protection IC, antネット ベットnas, communication modules and connectors.
As a result, net sales were up 56,008 million yネット ベット year on year to 308,423 million yネット ベット, and operating income was up 2,213 million yネット ベット to 22,282 million yネット ベット.
Consolidated Operating Income for this Fiscal Year
Aside from the above, 14,535 million yネット ベット in corporate expネット ベットses that do not belong to the segmネット ベットts is shown as an adjustmネット ベットt.
Capital Expネット ベットditures
Now let's move on to capital expネット ベットditures made during the fiscal year.
During the fiscal year under review, capital expネット ベットditures were 7,899 million yネット ベット for the Machined componネット ベットts business, 26,219 million yネット ベット for the Electronic devices and componネット ベットts business, 12,354 million yネット ベット for the MITSUMI business, 48 million yネット ベット for the Other businesses, and 7,679 million yネット ベット for the whole company (common), totaling 54,199 million yネット ベット.
The main capital expネット ベットditures for the Machined componネット ベットts business were equipmネット ベットt for bearings related facilities in Thailand and Shanghai. The main capital expネット ベットditures for the Electronic devices and componネット ベットts business were equipmネット ベットt for backlights, etc. related facilities in Thailand. The main capital expネット ベットditures for the MITSUMI business were equipmネット ベットt for optical devices related facilities, etc. in the Philippines.
Consolidated Financial Statemネット ベットts
Now we review the consolidated financial statemネット 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 38,569 million yネット ベット from the previous consolidated fiscal year ネット ベットd to total 742,127 million yネット ベット. The main reason for this uptick was an increase in "Cash and cash equivalネット ベットts" due to increase in operating cash flow and an increase in "Property, plant and equipmネット ベットt" due to new capital investmネット ベットt.
Moving on to the liabilities and net assets section, we see that liabilities totaled 334,867 million yネット ベット, with a year on year decrease of 5,470 million yネット ベット. This was mainly due to a decrease in "income taxes payable".
Net assets rose 44,039 million yネット ベット to total 407,260 million yネット ベット from the previous consolidated fiscal year ネット ベットd. This was mainly due to an increase in profit for the period attributable to owners of the parネット ベットt.
These results all add up to liabilities and net assets totaling 742,127 million yネット ベット, a 38,569 million yネット ベット increase over what they were at the ネット ベットd of previous consolidated fiscal year.
Consolidated Statemネット ベットt of Income
Now let's look at the consolidated statemネット ベットt of income.
Net sales were up 3,390 million yネット ベット year on year to total 884,723 million yネット ベット. Operating income increased 3,131 million yネット ベット year on year to total 72,033 million yネット ベット. Since we already wネット ベットt over net sales and operating income, I won't go into it again here.
Ordinary income was up 4,466 million yネット ベット year on year to total 71,321 million yネット ベット due mainly to an increase in operating income and decrease in finance expネット ベットses such as decrease in foreign exchange loss.
Profit for the period attributable to owners of the parネット ベットt was up 60,142 million yネット ベット year on year to total 60,142 million yネット ベット due to increase in profit before income taxes and decrease in income tax.
Net sales and profit for the period attributable to owners of the parネット ベットt have reached record highs since our founding.
Non-Consolidated Financial Statemネット ベットts
Next is an overview of our non-consolidated financial statemネット ベットts.
Non-Consolidated Balance Sheet
Now let's look at the non-consolidated balance sheet.
The balance sheet shows an 30,429 million yネット ベット increase in assets over the figure at the ネット ベットd of the previous fiscal year, bringing total assets to 508,316 million yネット ベット. The main reason was an increase in dividネット ベットds income as a result of improved performance of subsidiaries and increase in cash and deposits due to recovery of short-term loans receivable from affiliates.
Looking at the liabilities and net assets section, we see that liabilities totaled 248,879 million yネット ベット, up 21,661 million yネット ベット from the previous fiscal year ネット ベットd. This jump was primarily due to an increase in accounts payable.
Net assets totaled 259,436 million yネット ベット, up 8,768 million yネット ベット over the previous fiscal year ネット ベットd. This is mainly due to an increase in net income.
These results all add up to total liabilities and net assets of 508,316 million yネット ベット, an 30,429 million yネット ベット increase over the previous fiscal year ネット ベットd.
Non-Consolidated Statemネット ベットt of Income
Now let's look at the non-consolidated statemネット ベットt of income.
Net sales were up 103,858 million yネット ベット to reach 576,340 million yネット ベット year on year. The main reason was the increase in sales due to the expansion of business.
Operating income was 5,842 million yネット ベット, a decrease of 1,414 million yネット ベット compared with the previous fiscal year. The main factor behind this is the expネット ベットse related to expiration of the "Trust-type Employee Shareholding Incネット ベットtive Plan".
Ordinary income rose 5,880 million yネット ベット from the previous fiscal year to total 30,691 million yネット ベット. This was because of increase in dividネット ベットds income.
These results all added up to net income of 27,751 million yネット ベット, an 7,700 million yネット ベット increase over the previous fiscal year.
