Latest Update : Jul.10, 2017
On Jan. 27, 2017, Minebea Co., Ltd. and MITSUMI ELECTRIC CO., LTD. conducted a business integration of the two companies, with Minebea Co., Ltd. allocating its shares to MITSUMI ELECTRIC CO., LTD. shareholders at a ratio of 1:0.59 and MITSUMI ELECTRIC CO., LTD. becoming its fully-owned subsidiary. We changed our company name to MINEBEA MITSUMI Inc. and embarked on a new start.
In this economic environment, the group focused on thoroughgoing cost reductions, the development of high value-added products and new technologies, and activities to expand sales in order to realize the further improvement of our earning power. As a result, net sales for the period ﬁnished at a record high of 638.9 billion yen. Operating income was lower this term at 49.0 billion yen, but due to the effects of the business integration with MITSUMI ELECTRIC CO., LTD., net income was a new record for profits at 41.1 billion yen.
Growth of the global economy was expected initially for the fiscal year ended March 2016, but the sense of uncertainty over the future strengthened in the second half of the term due to the deceleration of the emerging economies centered on China, a significant decline in resource prices and also the rapid progress of yen appreciation. Minebea has focused on thoroughgoing cost-cutting, the development of high value-added products and new technologies, and activities to expand sales in order to realize the further improvement of our earning power. As a result, net sales for the period finished at 609.8 billion yen, exceeding 600 billion yen for the first time since the company's founding. Profits were lower this term, with operating income of 51.4 billion yen and net income of 36.4 billion yen.
The global economy remained on the path to gradual recovery during the fiscal year ended in March 2015. At Minebea, our performance improved significantly as the groundwork we laid over the years to drive profitability up paid off. External sales volumes for our anchor product line, ball bearings, and demand for LED backlights were both up. On top of that, our motor business is now sure to remain in the black. Thanks to these positive factors, consolidated net sales totaled 500.6 billion yen. That's the first time ever that it reached the 500 billion yen mark. Operating income and net income also reached record highs, totaling 60.1 billion yen and 39.9 billion yen respectively.
During the fiscal year that ended March 2014 we moved forward in step with the global economic upturn. Our performance improved significantly as the ground work we laid over the years to drive profitability up paid off. External shipment volumes for our anchor product line, ball bearings, rose while demand for LED backlights skyrocketed. On top of that, after doing everything possible to boost productivity and implementing structural reforms, our motor business is now back in the black. Thanks to these positives, consolidated net sales and net income reached record highs, totaling 371.5 billion yen and 20.9 billion yen respectively.
During the term ending March 2013, we saw signs of recovery after the Great Eastern Japan Earthquake Disaster and the flooding in Thailand that occurred two years previously. At the same time, the slowing of the global economy and the high value of the yen added to the impact of increasing diplomatic issues between Japan and China in reducing exports, with the result that there is still a severe environment surrounding our company. Given these circumstances, while efforts are ongoing to build a disaster-resistant business structure, we took decisions regarding the dissolution of our joint venture motor business and withdrawal from unprofitable projects, resulting in a structural overhaul with impairment losses. These serve as significant stepping-stones toward future growth.
Our fiscal year ended March 2012 should have seen celebrations marking the Company's 60th anniversary, but it was a critical year for us in which we faced many hardships. In addition to a yen at historical highs and soaring rare earth prices, no sooner had Japan emerged from the Great East Japan earthquake's effects than we were hit by the October floods in Thailand last year, necessitating us to make strenuous efforts to recover from disasters.
I'm glad to report that the first year of our medium-term business plan was smooth sailing. Working against the backdrop of a recovering economy, we were able to achieve significant increases in both earnings and profit. These ups came despite the downs of temporary stagnation due to some controls on demand, the yen rate's record high level at the beginning of the second fiscal half as well as the massive earthquake and tsunami that struck northeastern Japan this past March. In addition to donations and fund-raising campaigns, we feel the greatest contribution we can make is by maintaining a sound business that will provide people with livelihoods and contribute to the public good through taxes. This is the best way we can help Japan move forward toward restoration. We will continually work with this commitment in mind so it serves as a constant source of inspiration that pushes us on to perform even better.
The fiscal year March 2010 proceeded under the lingering influence of the worldwide recession—stemming from the financial crisis in the U.S.—and forced Minebea to conduct its business under harsh market conditions. This environment, Minebea have implemented various measures with speed and address under Minebea's two major goals: "To aim for the enhancement of corporate values through maximizing the earnings per share" and "To solidify our foundation in the momentum of Minebea's 100th anniversary.
"Minebea conceived the "Medium-term Business Plan", which starts in the fiscal year March 2011. "Towards profit recovery and expansion"—We pursue the fulfillment of this plan through aggressive capital investment and intensifying our vertical and horizontal strengths.
In order to lift the Company up so it is less exposed to the impact of the current economic downturn and manage the Company from a long-term perspective, by maximizing the efficiency of our considerable management resources—people, products, funds and time—we will strive to boost earnings per share. Therefore, we would like to enhance corporate value.
Moreover, recognizing that the key to fulfilling this mission is share price, I will continue to manage the Company with a keen focus on Minebea's share price.
Also, we will focus on a long-term vision that focuses on the coming of the 100th anniversary in 40 years with the aim of setting a clear direction for Minebea and fostering a new generation of leaders who will lead the Company into the future.
In fiscal 2008, ended March 31, 2008, efforts implemented in the first step of our drive toward a new phase of growth yielded steady results, enabling us to achieve record-high consolidated net sales and net income.
Net sales recorded a new record and our second in as many years. Sales growth was driven by rising sales of ball bearings, pivot assemblies, rod-end bearings, HDD spindle motors and measuring components.
Net income recorded a new record and the first in 10 years.
The innovation for the sustainable growth is in "new product development", "cultivation of new markets", and "revolutionizing production technology".
We set up the Mid-Term Business Plan as an index of the growth path. To these ends, the plan envisions fiscal 3/2008, the first year of the plan, as a year of "moving forward", fiscal 3/2009 as a year of "progression"; and fiscal 3/2010 as the year of "leap", with numerical targets.
In the featured section, we described in a Q&A format some of our efforts to "Win the Competition with Manufacturing Excellence and Technological Competency" in Manufacturing Headquarters, Ball Bearings business unit, Mechanical Assemblies business unit, and Fan Motors business unit.
We implemented "structural reform", "focus from volume to quality, from sales to profit", "reinforcement of engineering and technology development activities", "actions for non-profitable businesses". We aim to be leading the competition through manufacturing and technological excellence.
In the feature, we introduce businesses of "measuring components", "rod-ends", "electronic devices", as "diverse businesses capitalizing on Minebea's core technologies".
Under the management policies set by the new management - take decisive actions to implement structural reforms, reinforce R&D and manage the Company with a clear vision - this Annual Report introduces Minebea's efforts to increase profitability and turn around HDD spindle motor business, PC keyboard business and information motor business. It also introduces, for the first time, Minebea's strategy for R&D and intellectual property strategies.
With an aim to attain higher sales and income, we promoted further efforts to maximize core competencies in our mainstay businesses and to reinforce our competitive edge.
In the feature "Breakthroughs / HDD Spindle Motors and Other Precision Small Motors", we introduce our new course for higher profitability and growth potential with two new FDB units and HDD spindle motors using those FDBs, and Minebea-Matsushita Motor Corporation, a new joint venture established in April 2004.
We have formulated a strategy to reinforce our core competencies, so we can aim to become the world's leading comprehensive manufacturer of high-precision components.
Specifically, we have decided or implemented the following, such as reform of the board of directors, introduction of an Executive Officer System, integration of Manufacturing Headquarters and establishment of Engineering Headquarters, introduction of EVA management system, alliance with the Motor Company Division of Matsushita Electric Industrial Co., Ltd., withdrawal from switching power supplies and other related businesses, termination of FDD business, sale of U.S.A. subsidiary IMC Magnetics Corp., and so forth.
In the feature "How is Minebea Charting a New Course / A Competitive Edge and Excellent Potential", we show Minebea's competitive edge and its excellent potential for future growth in a Q&A session with the President.
In response to rapid changes in the operation environment and in order to strengthen our business structure, we have made a new mid-term management plan, keynote of which is sales and earnings growth. We are focusing our efforts on four management directions "Reinforcing research and development", "Strategy for Chinese operations", "Reorganizing sales structure" and "Restructuring unprofitable business" in order to realize the mid-term plan.
In the feature, we show Q&A on our management strategies, our tasks to accomplish, our mainstay business as they are, such as bearings and small motors, and their outlook.
We worked to be selective and focus our resources on key businesses. We have transferred our holding in Actus Corporation, a furniture and interior dècor product sales subsidiary and completed our withdrawal from the consumer business in which we have been involved fully since 1993.
In the feature, we have introduced Minebea's competitive advantages which are "ultra precision machining technologies amassed through the production of ball bearings", "vertically integrated manufacturing system that facilitates mass production of high-precision components", and "high-growth markets".
We launched a three-year management plan and outlined three basic management directions. While disposing non-performing assets of subsidiary's, including the transfer of Minebea Credit Co., Ltd.'s real estate division, we have started new businesses such as the production of fluid dynamic ball bearings and DC brushless motors for electric power steering systems.
In the feature, we have introduced new frontiers in core businesses such as "small bearings", "spindle motors for HDDs", and "automotive components".
Continued from the previous fiscal year, we have further enhanced "achieving higher levels of quality" and "ensuring financial soundness".
In the feature, we have introduced keys to quality such as "ball bearings", "precision components indispensable for HDDs", "R&D activities for precision machined components", and "market expansion through integrated manufacturing system".
While achieving a record-high consolidated net sales, operating income and net income, we strengthened our financial position and drastically reduced the balance of interest-bearing debt. To expand our position as the world's premier comprehensive manufacturer of high precision components, we have established three objectives and "The Five Prinsiples".
In the feature, we have introduced core capabilities and huge potential such as "achieving higher levels of quality", "expansion of the Shanghai Plant", and "vertically integrated manufacturing system".
Consolidated net sales surpassed 300,000 million yen for the first time and net income achieved a record-high. In order to further enhance our competitive advantages, we invested extensively in our main manufacturing bases, such as Thailand's R&D center and the plant in People's Republic of China.
In the feature, we have introduced our competitive advantages such as "vertically integrated manufacturing system", "overseas operations", and "key growth markets".
As our main customers located in Japan, Europe and America accelerated the transfer of manufacturing plants to Asia, sales of our mainstay products in Asia have drastically increased. Construction of the new plant at our China subsidiary was completed and the production capability has been further enhanced.
In the feature, we have introduced "vertically integrated manufacturing system for HDD spindle motors", and "Minebea products used in households and offices" as an example of our competitiveness.
We established a manufacturing subsidiary in China and launched production of ball bearings and fan motors. In the meantime, we sold our consumer financing business to focus our resources more on the core manufacturing business and further improved our financial position.
The feature pages cover "History of Minebea's overseas expansion", "Characteristics of Minebea's production system", and "Launching manufacturing operations in China".