Latest Update : Nov.7, 2018
* Our Group have adopted the IFRS from the 1Q of this FY2/2019. Accordingly, for the purposes of comparative analysis, financial results for the 1H of the previous fiscal year and for the previous fiscal year have been adjusted in line with the IFRS.
Overview for the 1H of FY3/2019 (From April 1, 2018 to September 30, 2018)
During the first half of the fiscal year (April 1, 2018 to September 30, 2018), the Japanese economy continued a gradual recovery against a backdrop of solid employee compensation and corporate earnings despite a short-term drop in consumer spending and corporate production activities due to the aftermath of natural disasters, including heavy rainfall in western Japan and Hokkaido eastern Iburi earthquake. Despite concern over trade friction with China resulting from the launch of additional tariffs, the U.S. Economy remained firm against a backdrop of improved employment conditions and domestic revenue. In Europe, corporate exports were down against a backdrop of stagnation in emerging economies, but overall the economy continued to expand due to improvements in employee compensation. In Asia, there was increasing uncertainty about the future course of the Chinese economy. Consumer spending remained robust in response to favorable employment and income conditions, but there were signs of cutbacks in corporate production and investment against a backdrop of trade friction with the U.S.
Working against this backdrop, the MinebeaMitsumi Group concentrated on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
As a result, net sales were up 16,590 million yen (3.8%) year on year to 449,368 million yen, the highest ever for the second quarter. Operating income was down 7,483 million yen (-18.1%) year on year to 33,915 million yen, profit before income taxes was down 6,383 million yen (-15.7%) to 34,276 million yen, and profit for the period attributable to owners of the parent was down 4,658 million yen (-14.8%) to 26,856 million yen.
Performance by Segment for the 1H of FY3/2019 (From April 1, 2018 to September 30, 2018)
Machined Components Business Segment
The main products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for aircraft. External sales quantity of ball bearings reached a record high on a monthly basis in July, reaching 215 million units as demand for energy-efficiency and safety devices in the automobile market soared and as demand for fan motors soared. Rod-end bearing sales increased in response to a recovery in orders in the small and medium aircraft market despite continued decline in production of large models in the civil aircraft market. Pivot assembly sales were also up as our market share remained steady despite the negative impact of the shrinking HDD market.
As a result, net sales were up 12,254 million yen (14.7%) year on year to 95,435 million yen, and operating income was up 3,897 million yen (19.2%) to 24,205 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers (fan motors), precision motors, and special devices. Sales of stepping motors and other motors were up owing to favorable trends primarily in the automobile market. Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong, but sales were down due to the slowdown of smartphone market growth as a whole.
As a result, net sales were down 58,775 million yen (-24.7%) year on year to 179,142 million yen, and operating income was down 12,231 million yen (-67.4%) to 5,914 million yen.
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Almost all products performed well, including game console and other mechanism components, switches, products for smartphones such as protection IC, antennas, communication modules and connectors. On the other hand, sales of camera actuators were down due to the slowdown of smartphone market growth as a whole.
As a result, net sales were up 63,166 million yen (56.7%) year on year to 174,482 million yen, and operating income was up 616 million yen (6.2%) to 10,484 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were down 55 million yen (-15.3%) year on year to 309 million yen, and the operating loss increased 8 million yen year on year to total 159 million yen.
In addition to the figures noted above, 6,529 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 6,772 million yen for the second quarter of the previous fiscal year.
Analysis of Financial Position for the 1H of FY3/2019 (From April 1, 2018 to September 30, 2018)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient controlling capital investments, asset management, and reducing interest-bearing debt.
Total assets at the end of the second quarter were 764,345 million yen, up 60,787 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in inventories and property, plant and equipment.
Total liabilities at the end of the second quarter were 369,388 million yen, up 29,051 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables.
Equity came to 394,957 million yen, bringing the equity ratio attributable to owners of the parent up 0.1 points from the end of the previous fiscal year to 50.7%.
Condition of Cash Flows
Cash and cash equivalents at the end of the second quarter were 86,725 million yen, down 2,052 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first fiscal half and relevant factors were as follows:
Net cash provided by operating activities amounted to 23,075 million yen (compared to 34,329 million yen in the same period of the previous year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, inventories, and trade and other payables. Net cash used in investing activities amounted to 31,909 million yen (compared to 22,599 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment. Net cash provided in financing activities amounted to 5,318 million yen (compared to use of 11,827 million yen in the same period of the previous year). This was primarily due to increase and decrease in short-term borrowings, repayments of long-term borrowings and dividends paid.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2019 (From April 1, 2018 to September 30, 2018)" announced on November 7, 2018.