Presentation Transcripts

These graphs show annual net sales and operating income for the electronic devices and components segment. Net sales for the fiscal year ended March 31, 2017 were about the same as the previous year at 441.6 billion yen. Operating income decreased 2% to total 21.9 billion yen, while the operating margin, at 5.0%, remained the same as it was last fiscal year.
Motor sales declined 2% from the previous year to total 158.3 billion yen. Although shipment volumes were fueled by growing demand for automotive and other applications, the strong yen held revenue down. In the meantime, profitability improved on the heels of cost-cutting measures and higher shipment volumes. Looking ahead to fiscal year ending March 2018, we expect sales to be driven up by the firm demand for our motor products, especially those for automobiles. On the other hand, profits will shrink as SSDs continue to replace HDD spindle motors in servers.
Net sales of electronic devices dropped only 2% year on year to 241.0 billion yen but operating income declined. We forecast lower sales and profits for the fiscal year ending March 2018 as OLEDs continue to eat into the LED backlight market. Business risk will be substantially mitigated, however, since the depreciable assets are expected to become little or almost non-existent by the end of this fiscal year due to the accelerated depreciation method adopted three years ago as well as the impairment losses of 3.9 billion yen executed in March quarter.
Sales of sensing devices rose 7% to total 38.3 billion yen year on year due to steady growth of our established businesses as well as adjustments made by Sartorius MT&H to consolidate the last 15 months' results as it synchronizes its fiscal year with the parent company, MinebeaMitsumi. While profits fell from the previous fiscal year, we expect an improvement in profitability in the fiscal year ending March 2018 despite a drop in sales.