Latest Update : Aug.8, 2022
Overview for the 1Q of FY 3/2023 (From April 1, 2022 to June 30, 2022)
During the three months ended June 30, 2022, the Japanese economy showed signs of a moderate recovery owing to the easing of COVID-19 related restrictions on movement. However, the recovery was limited due to soaring raw materials prices and an increase in the cost of living arising from rapid depreciation of the yen. In the United States, normalization of economic activity progressed with the easing of logistical supply constraints, but policy interest rates were raised aggressively to curb inflation, so the future remains uncertain. In Europe, the cost of living has increased sharply due to a reduced supply of natural resources from Russia in conjunction with aggression against Ukraine, so the economy has retracted. In China, economic activity was stagnant due to tight restrictions on movement to stop the spread of COVID-19, but internal demand is gradually recovering as restrictions on economic activity are eased. In Southeast Asia, the return of economic activity following the pandemic ensured economic recovery was on track.
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 2,735 million yen (1.1%) year on year to 251,040 million yen. Operating income was down 5,373 million yen (-27.4%) year on year to 14,255 million yen, profit before income taxes was down 5,329 million yen (-27.2%) to 14,274 million yen, and profit for the period attributable to owners of the parent was down 3,925 million yen (-26.8%) to 10,734 million yen.
Performance by Segment for the 1Q of FY 3/2023 (From April 1, 2022 to June 30, 2022)
As a result of the change in the corporate organization, some classification in "Other" and "Adjustments" have changed from the first quarter of the fiscal year.
The segment information disclosed for the first quarter of the previous year has been prepared based on the classification of reporting segments after the corporate organization change.
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. Sales of ball bearings and rod-end bearings were up owing to increased aircraft-related demand, but sales of pivot assemblies were down due to decreased demand for HDDs.
As a result, net sales were up 2,290 million yen (5.2%) year on year to 46,380 million yen, while operating income was down 720 million yen (-6.6%) to 10,198 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, and special devices. Net sales were down, primarily due a decreased demand for LED backlights.
As a result, net sales were down 8,989 million yen (-9.9%) year on year to 81,446 million yen, and operating income was down 7,689 million yen (-97.5%) to 197 million yen.
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components and smart product. Semiconductor devices and optical devices for camera actuators performed well, resulting in an increase in net sales.
As a result, net sales were up 10,061 million yen (13.1%) year on year to 86,814 million yen, and operating income was up 4,039 million yen (79.4%) to 9,124million yen.
The main products of U-Shin business segment are automotive components, such as key sets, door latches, door handles, etc. as well as industrial equipment components. Net sales of automotive components were down due to decreased demand caused by a decrease in automobile production arising from the semiconductor shortage.
As a result, net sales were down 831 million yen (-2.3%) year on year to 36,038 million yen, and operating income was down 259 million yen for an operating loss of 342 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 204 million yen (129.2%) year on year to 362 million yen, and the operating loss was 364 million yen, an improvement of 171 million yen.
In addition to the figures noted above, 4,558 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 3,643 million yen for the same period of the previous fiscal year.
Analysis of Financial Position for the 1Q of FY 3/2023 (From April 1, 2022 to June 30, 2022)
Assets, Liabilities, and Net Assets
Total assets at the end of the first quarter were 1,204,888 million yen, up 100,696 million yen from the end of the previous fiscal year. The main reason for this was an increase in inventories and property, plant and equipment.
Total liabilities at the end of the first quarter were 634,957 million yen, up 72,200 million yen from the end of the previous fiscal year. The main reason for this was an increase in bonds and borrowings.
Equity came to 569,931 million yen, bringing the equity ratio attributable to owners of the parent down 1.7 percentage points from the end of the previous fiscal year to 47.1%.
Condition of Cash Flows
Cash and cash equivalents at the end of the first quarter were 141,175 million yen, down 22,413 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first three months and relevant factors were as follows:
Net cash used in operating activities came to 7,314 million yen (compared to 12,317 million yen provided by operating activities in the same period of the previous year). This was primarily due to profit before income taxes, and increases and decreases in trade and other receivables, in inventories and in trade and other payables, etc.
Net cash used in investing activities came to 77,961 million yen (compared to 10,731 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment, etc., including the purchase of the new headquarters building.
Net cash provided by financing activities came to 55,669 million yen (compared to 7,847 million yen used in financing activities in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings.
The content of this page is based on information included in the "Brief Report for First Quarter of Fiscal Year Ending March 2023 (From April 1, 2022 to June 30, 2022)" announced on August 5, 2022.