Briefing on items on the agenda

Latest Update : July 21, 2020

Back to Shareholders' Meetings (Year 2020)

The 74th Ordinary General Meeting of Shareholders

We now report MinebeaMitsumi's business results for its 74th fiscal year, together with consolidated and non-consolidated financial statements.
More information is provided on page 16 through 71 of the Notice of the 74th Ordinary General Meeting of Shareholders.

During the fiscal year under review, the Japanese economy fell into decline. From the beginning of the fiscal year, overseas economies decelerated, and automobile sales fell both in Japan and abroad, while exports and capital investment decreased sharply in response to the spread of the new coronavirus from the fourth quarter.
In the United States, the economy had been going strong with the stock market recording record highs in response to progress on trade negotiations with China, but the outlook is now highly uncertain due to the subsequent spread of the coronavirus.
Meanwhile, in Europe, exports dropped in response to Brexit and the spread of the new coronavirus, and the economy slowed.
In Asia, there were signs of bottoming out due to the support of economic policy in China and progress on trade negotiations between the United States and China, but economic activity ended up shrinking dramatically in response to the spread of the new coronavirus.
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.

Current Fiscal Year Results on Consolidated Basis

As a result, net sales were up 93,722 million yen year on year to 978,445 million yen, the highest since our founding.
Operating income was down 13,386 million yen year on year to 58,647 million yen, profit before income taxes was down 13,232 million yen to 58,089 million yen, and profit for the year attributable to owners of the parent was down 14,167 million yen to 45,975 million yen.
U-Shin Ltd. was integrated on April 10, 2019 and the company has been included in the scope of consolidation as of the date of the business integration.

Machined Components Business

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 pivot assemblies, etc. as well as fasteners for aircraft.
Sales of ball bearings were down both in volume and amount due to decreased demand from fan motors despite solid demand in the automobile and air conditioner market.
Rod-end bearing sales increased owing to favorable orders in other aircraft and other products, despite the impact of reduced production in Boeing737MAX.
Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to shrinking of the HDD market.
As a result, net sales were down 7,439 million yen year on year to 180,885 million yen, and operating income was down 7,876 million yen to 39,874 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, etc.), hard disk drive spindle motors, stepping motors, DC motors, air movers and precision motors.
Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong. Sales of stepping motors and other motors were down due to decreased demand associated with sluggishness in the automobile market.
As a result, net sales were down 18,175 million yen year on year to 379,422 million yen, and operating income was up 510 million yen to 17,552 million yen.

MITSUMI Business

The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Although camera actuators performed well, sales were down due to the decrease in game consoles and other mechanical components.
As a result, net sales were down 5,876 million yen year on year to 292,243 million yen, and operating income was down 3,505 million yen to 18,656 million yen.

U-Shin Business

The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial machinery components and housing equipment components (such as building and house locks).
Operations related to automotive components were reduced due to the impact of deceleration in the automotive market in China and Europe and the spread of the new coronavirus.
As a result, net sales were 125,145 million yen, and operating income was 2,598 million yen.

Capital Expenditures

During the fiscal year under review, capital expenditures were 11,263 million yen for the Machined components business, 16,499 million yen for the Electronic devices and components business, 11,692 million yen for the MITSUMI business, 4,662 million yen for the U-Shin business, 6,027 million yen for the Other businesses and whole company (common), totaling 50,143 million yen.
The main capital expenditures for the Machined components business were equipment for bearings related facilities in Thailand and product processing related facilities for the aircraft and medical fields in the U.S.
The main capital expenditures for the Electronic devices and components business were equipment for backlights, etc. related facilities in Thailand.
The main capital expenditures for the MITSUMI business were equipment for optical devices related facilities in the Philippines and semiconductor related facilities, etc. in Japan.
The main capital expenditures for the U-Shin business were equipment for automotive related facilities in Europe and China.

The Consolidated Statements of Financial Position and Consolidated Statements of Income are as shown on pages 38 to 40 of the Notice of the 74th Ordinary General Meeting of Shareholders, and our Non-Consolidated Balance Sheet and Non-Consolidated Statement of Income are as shown on pages 60 to 62, so we will not provide an explanation of these matters.

In our group, we have set up a task force headed by CEO and held a countermeasure meeting for the novel coronavirus on a global basis to develop countermeasures to all plants and employees worldwide initiated at first in China.

We have not anticipated the end of the novel coronavirus, but in the medical field, we supply bearings, various motors, sensors, power supplies, semiconductors, and connectors for various medical devices such as ventilators and cardiopulmonar devices. Accordingly, we will put our utmost priority on operations in response to growing needs.

In addition, we began in-house production of masks in April 2020, for approximately 100 thousand employees and their families with the aim of ensuring safe operation in order to fulfill our supply responsibilities and social responsibilities. We also donated 220 thousand N95 masks and other medical items stored for disaster relief to medical institutions and government institutions.

We will continue to work to prevent the spread of infectious diseases outside the company and ensure the safety of our employees. At the same time, we will fulfill our supply responsibilities as a component manufacturer in all of our business activities, including production and sales activities.

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