Latest Update : Dec.16, 2022
* MinebeaMitsumi has adopted International Financial Reporting Standards (IFRS) from the 1Q of FY3/2019.
Overview for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
During the six months ended September 30, 2022, the Japanese economy showed signs of a moderate recovery with a resumption of consumer spending owing to the easing of COVID-19 related restrictions on movement. This was despite soaring raw materials prices and an increase in the cost of living arising primarily from rapid depreciation of the yen. The United States has enjoyed moderate economic recovery owing to increases in employment and individual income and a steady increase in exports despite the cost of living continuing to rise sharply. 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. The future of the Chinese economy remains uncertain due to stagnation of economic activity arising from restrictions on movement in each region implemented in response to the spread of COVID-19. In Southeast Asia, the return of economic activity following the easing of COVID-19 related restrictions on movement 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 50,801 million yen (9.6%) year on year to 581,061 million yen. Operating income was down 3,984 million yen (-8.9%) year on year to 40,649 million yen, profit before income taxes was down 1,861 million yen (-4.2%) to 42,458 million yen, and profit for the period attributable to owners of the parent was down 4,258 million yen (-12.1%) to 30,794 million yen.
Performance by Segment for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
Performance by segment was as follows:
HONDA TSUSHIN KOGYO CO., LTD. was made a subsidiary on September 16, 2022. The company has been included in the scope of consolidation. This includes the company's profits and losses from the date of the business integration on.
As a result of the change in the corporate organization, some classifications in "Other Businesses" and "Adjustments" have changed from the first quarter of the fiscal year. The segment information disclosed for the first six months 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. Net sales of ball bearings and rod-end bearings, our mainstay products, increased due to higher aircraft-related demand.
As a result, net sales were up 9,331 million yen (10.6%) year on year to 97,688 million yen, while operating income was down 93 million yen (-0.4%) to 22,726 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 4,722 million yen (-2.6%) year on year to 179,405 million yen, and operating income was down 10,478 million yen (-75.2%) to 3,463 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.
Profit and loss of HONDA TSUSHIN KOGYO CO., LTD. are included in the MITSUMI business segment in conjunction with its acquisition.
As a result, net sales were up 36,454 million yen (19.4%) year on year to 224,164 million yen, and operating income was up 8,379 million yen (51.1%) to 24,793 million yen.
The main products of U-Shin business are key sets, door latches, door handles, and other automotive components as well as industrial equipment components. Net sales of automotive components were up owing to increased demand resulting from an increase in automobile production.
As a result, net sales were up 9,367 million yen (13.5%) year on year to 78,946 million yen, and operating income was up 405 million yen to 301 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 371 million yen (76.7%) year on year to 858 million yen, while the operating loss decreased 177 million yen year on year to total 692 million yen.
In addition to the figures noted above, 9,942 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 7,568 million yen for the same period of the previous fiscal year.
Analysis of Financial Position for the 1H of FY 3/2023 (From April 1, 2022 to September 30, 2022)
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 of capital investments, asset management, and reducing interest-bearing debt. We will reform our portfolio to increase the weight of our highly profitable core businesses and engage in highly effective M&A, promoting an appropriate and flexible financial strategy.
Total assets at the end of the second quarter were 1,281,840 million yen, up 177,648 million yen from the end of the previous fiscal year. This was primarily due to increases in property, plant and equipment, inventories, and trade and other receivables.
Total liabilities at the end of the second quarter were 676,536 million yen, up 113,779 million yen from the end of the previous fiscal year. The main reason for this was an increase in bonds, and borrowings, trade and other payables.
Equity came to 605,304 million yen, bringing the equity ratio attributable to owners of the parent down 1.9 percentage points from the end of the previous fiscal year to 46.9%.
Condition of Cash Flows
Cash and cash equivalents at the end of the second quarter were 141,097 million yen, down 22,491 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 used in operating activities came to 5,800 million yen (compared to 34,783 million yen provided by operating activities in the same period of the previous year). This was primarily due to changes in profit before income taxes, trade and other receivables and inventories. Net cash used in investing activities came to 94,882 million yen (compared to 25,163 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 and investments in subsidiaries resulting in change in scope of consolidation. Net cash provided by financing activities came to 69,236 million yen (compared to 7,185 million yen used in financing activities in the same period of the previous year). This was primarily due to proceeds from long-term borrowings.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2023 (From April 1, 2022 to September 30, 2022)" announced on November 2, 2022.