Presentation Transcripts

Today we'll look at three areas. That is the machined component business, which is focusing on increasing productivity to achieve an operating income of 50 billion yen, the electronic devices and components business, where motors business is on track toward becoming the number two profit generator, and Mitsumi business, whose huge profits will help boost our overall bottom line.
Before going into these topics, I must tell you that operating income for the fiscal year that ended in March 2017 dropped to 49 billion yen although net sales, income attributable to the owners of the parent, and net income per share, including negative goodwill, were the highest ever. Let's look at our potential operating income figure. First, the 49-billion-yen in operating income includes about 2.3 billion yen generated by the Mitsumi business from January 27 until the end of March this year. This means operating income from Minebea operations totaled about 46.7 billion yen.
There were various special factors behind the results for last fiscal year. First of all, we incurred about 2 billion yen in expenses related to the business integration. Then there was an irregular inventory disposal of LED backlights totaling about 2 billion yen. Altogether these factors brought operating income down about 4 billion yen below what it usually is. If you take these factors into account, we had the capacity to generate about 51 billion yen in operating income at an exchange rate of 108 yen against the dollar.
In the fiscal year ending March 2018, we project that operating income for the Mitsumi business will total 10 billion yen. While I'll go into further detail about that later, you can see that overall operating income will exceed 60 billion yen even without any year-on-year increase in operating income for Minebea operations. However, the dollar-yen rate fluctuated by a wide margin in early May, and we discussed what to do with our forecast figures. Ultimately, I decided to go conservative and made the projected operating income figure 56 billion yen based on an exchange rate of 105 yen against the dollar. So, we are aware that we drafted the latest business plan based on the very conservative estimates. If the exchange rate remains at the current level, it's quite likely that operating income will reach another record high.
Although we don't have the results for April yet, the preliminary net sale figure has already topped 60 billion yen. Sixty billion yen used to be the norm for quarterly net sales just until a few year ago. Having a sales figure like this in April, when demand is usually low, is quite something.