MINEBEAMITSUMI INC. THIRD QUARTER BRIEF REPORT OF FINANCIAL RESULTS〔IFRS〕（Consolidated）
(Year ending March 31, 2022)
Registered | February 4, 2022 | |
MINEBEA MITSUMI Inc. | Common Stock Listings: Tokyo | |
Company Name: | ||
Code No: | 6479 | URL: https://www.minebeamitsumi.com/ |
Representative: | Yoshihisa Kainuma Representative Director, CEO & COO | |
Contact: | Mitsunobu Yamamoto General Manager of Accounting Department | |
Quarterly report filing date: February 10, 2022 | Phone: (03) 6758-6711 |
Expected date of payment for dividends: ―
Preparation of supplementary explanation material for quarterly financial results : Yes
Holding of presentation meeting for quarterly financial results : Yes（For Analyst）
(Amounts less than one million yen have been rounded.)
1. Business Performance (April 1, 2021 through December 31, 2021) | ||||||||
(1) Consolidated Results of Operations (Year-to-date) | (%: Changes from corresponding period of previous fiscal year) | |||||||
Net sales | % | Operating income | % | Profit before | % | |||
income taxes | ||||||||
(millions of yen) | Change | (millions of yen) | Change | Change | ||||
(millions of yen) | ||||||||
Nine months ended Dec. 31, 2021 | 834,608 | 13.2 | 70,465 | 74.1 | 69,441 | 75.4 | ||
Nine months ended Dec. 31, 2020 | 737,439 | (1.9) | 40,474 | (12.5) | 39,599 | (14.3) | ||
Profit for | Profit for the period | Comprehensive | ||||||
% | attributable to | % | income | % | ||||
the period | ||||||||
Change | owners of the parent | Change | for the period | Change | ||||
(millions of yen) | ||||||||
(millions of yen) | (millions of yen) | |||||||
Nine months ended Dec. 31, 2021 | 53,432 | 69.1 | 53,447 | 69.3 | 59,092 | 51.7 | ||
Nine months ended Dec. 31, 2020 | 31,597 | (13.1) | 31,567 | (11.2) | 38,964 | 6.2 | ||
Earnings per | Earnings per | |||||||
share, basic | share, diluted | |||||||
(yen) | (yen) | |||||||
Nine months ended Dec. 31, 2021 | 131.87 | 129.08 | ||||||
Nine months ended Dec. 31, 2020 | 77.29 | 75.59 |
(Notes) At March 31, 2021, provisional accounting treatments for business combinations were finalized, and the contents of finalization of the provisional accounting treatments are reflected on the figures for the first nine months of the fiscal year ended March 31, 2021.
(2) Consolidated Financial Position
Total equity | Equity ratio | ||||||||||||||||||
Total assets | Total equity | attributable to | attributable to | ||||||||||||||||
(millions of yen) | (millions of yen) | owners of the parent | owners of the parent | ||||||||||||||||
(millions of yen) | (%) | ||||||||||||||||||
As of Dec. 31, 2021 | 1,062,671 | 490,290 | 487,558 | 45.9 | |||||||||||||||
As of Mar. 31, 2021 | 976,771 | 453,998 | 451,141 | 46.2 | |||||||||||||||
2. Dividends | |||||||||||||||||||
Annual dividends | |||||||||||||||||||
End of | End of | End of | Year-end | For the year | |||||||||||||||
first quarter | second quarter | third quarter | |||||||||||||||||
(yen) | (yen) | ||||||||||||||||||
(yen) | (yen) | (yen) | |||||||||||||||||
Year ended Mar. 31, 2021 | ― | 14.00 | ― | 22.00 | 36.00 | ||||||||||||||
Year ending Mar. 31, 2022 | ― | 18.00 | ― | ||||||||||||||||
Year ending Mar. 31, 2022 | 18.00 | 36.00 | |||||||||||||||||
(Forecast) | |||||||||||||||||||
(Notes) Changes from the latest dividend forecast: No
The year-end dividend will be increased 4 yen compared to the previous fiscal year (excluding the 70th anniversary commemorative dividend of 8 yen), bringing it to 18 yen per share. Considering the results this fiscal year, the dividends payout ratio will be set at around 20%.
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3. Prospect for Consolidated Forecast for the Fiscal Year (April 1, 2021 through March 31, 2022)
(%: Changes from corresponding period of previous fiscal year)
Net sales | % | Operating income | % | |||||
(millions of yen) | Change | (millions of yen) | Change | |||||
Year ending Mar. 31, 2022 | 1,100,000 | 11.3 | 92,000 | 79.8 | ||||
Profit for the period attributable | % | Earnings per share, basic | ||||||
to owners of the parent | ||||||||
Change | (yen) | |||||||
(millions of yen) | ||||||||
Year ending Mar. 31, 2022 | 72,500 | 87.1 | 178.91 |
(Notes) Changes from the latest consolidated results forecast: Yes
- Notes
- Changes in significant subsidiaries during the period (Changes in certain subsidiaries resulting in change in the scope of consolidation): None
- Changes in accounting policies, or changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than 1: None
- Changes in accounting estimates: Yes
(Notes) For details, please refer to ("2. Condensed Quarterly Consolidated Financial Statements and Major Notes," "(5) Notes on Condensed Quarterly Consolidated Financial Statements (Change in Accounting Estimate)") on page 16 of the documents attached hereunder.
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Number of shares outstanding (Common stock)
1. Number of shares outstanding at the end of each period (Including treasury stock)
As of December 31, 2021: | 427,080,606 shares |
As of March 31, 2021: | 427,080,606 shares |
2. Number of treasury shares at the end of each period
As of December 31, 2021: | 22,055,453 shares |
As of March 31, 2021: | 20,418,303 shares |
3. Average number of shares (Quarterly cumulative period)
Nine months ended December 31, 2021: 405,286,374 shares
Nine months ended December 31, 2020: 408,403,546 shares
- These quarterly financial results are not subject to quarterly review procedures by a certified public accountant or an audit corporation.
- Explanation for appropriate use of financial forecasts and other special remarks
(Caution Concerning Forward-Looking Statements)
The aforementioned forecasts are based on the information available as of the date when this information is disclosed as well as on the assumptions as of the disclosing date of this information related to unpredictable parameters that will most likely affect our future business performance. As such, this is not intended for the Company to give assurance that the said forecast number would be achieved. In other words, our actual performances are likely to differ greatly from these estimates depending on a variety of factors that will take shape from now on. As for the assumptions used for these forecasts and other related items, please refer to ("1. Qualitative information related to the financial results for the quarter," "(3) Explanation of Consolidated Forecast and Other Forecasts") on page 5 of the documents attached hereunder. (Investor Briefing Materials for Analysts)
Investor briefing materials will be made available via our corporate website (https://www.minebeamitsumi.com/) on Friday, February 4, 2022.
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Index | ||
1. Qualitative information related to the financial results for the quarter ............................................... | 4 | |
(1) | Explanation of Operating Results....................................................................................................... | 4 |
(2) | Explanation of Financial Position....................................................................................................... | 5 |
(3) | Explanation of Consolidated Forecast and Other Forecasts.............................................................. | 5 |
(4) | Basic Policy for Profit Sharing and Dividend for the Current Fiscal Year ....................................... | 5 |
2. Condensed Quarterly Consolidated Financial Statements and Major Notes ........................................ | 6 | |
(1) | Condensed Quarterly Consolidated Statements of Financial Position ............................................. | 6 |
(2) | Condensed Quarterly Consolidated Statements of Income | |
and Condensed Quarterly Consolidated Statements of Comprehensive Income .......................... | 8 | |
Condensed Quarterly Consolidated Statements of Income ............................................................... | 8 | |
Condensed Quarterly Consolidated Statements of Comprehensive Income..................................... | 10 | |
(3) | Condensed Quarterly Consolidated Statements of Changes in Equity............................................. | 12 |
(4) | Condensed Quarterly Consolidated Statements of Cash Flows ........................................................ | 14 |
(5) | Notes on Condensed Quarterly Consolidated Financial Statements ................................................ | 16 |
(Notes on Going Concern Assumptions)............................................................................................ | 16 | |
(Change in Accounting Estimate)...................................................................................................... | 16 | |
(Segment Information)....................................................................................................................... | 16 |
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1. Qualitative information related to the financial results for the quarter
- Explanation of Operating Results
During the first nine months of the fiscal year (April 1, 2021 to December 31, 2021), the Japanese economy showed a gentle recovery with consumer spending bouncing back following the lifting of the state of emergency at the end of September despite decreased automobile production due to the global semiconductor shortage and a sharp rise in the cost of raw materials. The U.S. economy showed a recovery owing to progress on COVID-19 vaccination and expansion of consumer spending even as prolonged constraints on raw material supplies have hindered corporate activities. Economic recovery in Europe was limited due to a resurgence of COVID-19 and the impact of the sharp rise in resource prices. The Chinese economy was on the rise with steady consumer spending on top of strong exports. In Southeast Asia, there were signs of economic recovery as economic activity resumed following the easing of restrictions on movement.
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 97,169 million yen (13.2%) year on year to 834,608 million yen. Operating income was up 29,991 million yen (74.1%) to 70,465 million yen, profit before income taxes was up 29,842 million yen (75.4%) to 69,441 million yen, and profit for the period attributable to owners of the parent was up 21,880 million yen (69.3%) to 53,447 million yen.
Provisional accounting treatments for business combinations were finalized at the end of the previous fiscal year, and the contents of finalization of the provisional accounting treatments are reflected on the figures for the first nine months of the previous year.
Performance by segment was as follows:
From the first quarter of the fiscal year, the classification of reporting segments has been changed for some businesses. The segment information disclosed for the first nine months of the previous year has been prepared based on the classification of reporting segments after the corporate organization change.
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 were up owing to favorable demand for use in fan motors associated with solid server demand at data centers. Rod-end bearing sales decreased due to decreased aircraft-related demand.
As a result, net sales were up 18,179 million yen (16.1%) year on year to 131,447 million yen, and operating income was up 12,058 million yen (53.9%) to 34,438 million yen.
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 up, owing primarily to strong performance of motors for HDD and increased demand for automotive motors.
As a result, net sales were up 19,318 million yen (7.6%) year on year to 274,798 million yen, and operating income was up 5,682 million yen (47.4%) to 17,655 million yen.
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components and smart product. Semiconductor and optical devices for camera actuators performed well, resulting in an increase in net sales.
As a result, net sales were up 45,494 million yen (16.5%) year on year to 321,945 million yen, and operating income was up 13,851 million yen (77.9%) to 31,639 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 were up owing to a recovery in demand for automotive components associated with a recovery in the automotive market and favorable demand for industrial equipment components used in agricultural and construction machinery.
As a result, net sales in the first nine months were up 14,206 million yen (15.5%) year on year to 105,714 million yen, while operating income was down 228 million yen for an operating loss of 436 million yen.
Machines produced in-house are the main products in our Other business segment. Net sales in the first nine months were down 28 million yen (-3.8%) year on year to 704 million yen, while the operating loss was 1,291 million yen , an improvement of 36 million yen year on year.
In addition to the figures noted above, 11,540 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 10,132 million yen for the first nine months of the previous fiscal year.
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- Explanation of Financial Position
1. Assets, liabilities and equity
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 third quarter were 1,062,671 million yen, up 85,900 million yen from the end of the previous fiscal year. This was primarily due to increases in inventories, property, plant and equipment, and trade and other receivables.
Total liabilities at the end of the third quarter were 572,381 million yen, up 49,608 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables.
Equity came to 490,290 million yen, bringing the equity ratio attributable to owners of the parent down 0.3 percentage points from the end of the previous fiscal year to 45.9%.
2. Cash flows
Cash and cash equivalents at the end of the third quarter were 138,784 million yen, down 26,695 million yen from the
end of the previous fiscal year.
Cash flows from various business activities during the first nine months of the fiscal year and relevant factors were as follows:
Net cash provided by operating activities came to 37,356 million yen (compared to 43,744 million yen in the same period of the previous year). This was primarily due to profit before income taxes, depreciation and amortization, increases and decreases in inventories, and increases and decreases in trade and other payables. Net cash used in investing activities came to 44,668 million yen (compared to 57,781 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment and proceeds from sale and redemption of securities, etc. Net cash used in financing activities came to 21,888 million yen (compared to 19,884 million yen provided by financing activities in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings, purchase of treasury stock and dividends paid.
- Explanation of Consolidated Forecast and Other Forecasts
The future of the global economy remains uncertain in the fourth quarter and thereafter, including the impact of COVID-19 and exchange rate fluctuation. In addition to third quarter results exceeding the initial forecast, we expect demand for semiconductor devices, optical devices, ball bearings, and other products to remain strong in the fourth quarter. As such, in regard to the financial forecasts last revised in November of last year, we have once again revised the forecast for net sales upward from 1,050,000 million yen to 1,100,000 million yen, the forecast for operating income from 90,000 million yen to 92,000 million yen, and the forecast for profit for the period attributable to owners of the parent from 72,000 million yen to 72,500 million yen.
Full-year consolidated business forecast for the fiscal year ending March 31, 2022 （From April 1, 2021 to March 31, 2022）
Net sales | Operating income | Profit for the period attributable | |
to owners of the parent | |||
(millions of yen) | (millions of yen) | ||
(millions of yen) | |||
Previous forecast (A) | 1,050,000 | 90,000 | 72,000 |
(announced on November 5, 2021) | |||
Revised forecast（B） | 1,100,000 | 92,000 | 72,500 |
Difference（B－A） | 50,000 | 2,000 | 500 |
- Basic Policy for Profit Sharing and Dividend for the Current Fiscal Year
Sharing profits with our shareholders is first priority at MinebeaMitsumi. That is why our basic dividend policy gives priority to enhancing equity efficiency and improving returns to our shareholders. Dividends, while reflecting performance, are determined in light of the overall business environment and with an eye to maintaining a stable and continuous distribution of profits.
Under this basic policy, we increased the interim dividend by 4 yen per share to 18 yen. In addition, the year-end dividend will be increased 4 yen compared to the previous fiscal year (excluding the 70th anniversary commemorative dividend of 8 yen), bringing it to 18 yen per share. Considering the results this fiscal year, the dividends payout ratio will be set at around 20%.
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Minebea Mitsumi Inc. published this content on 04 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2022 06:25:08 UTC.
