MinebeaMitsumi : FIRST QUARTER BRIEF REPORT OF FINANCIAL RESULTS〔IFRS〕（Consolidated）(Year ending March 31, 2022)

FIRST QUARTER BRIEF REPORT OF FINANCIAL RESULTS〔IFRS〕（Consolidated）

(Year ending March 31, 2022)

August 4, 2021

Registered

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: August 11, 2021

Phone: [phone]

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 June 30, 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)

Three months ended Jun. 30, 2021

248,305

32.5

19,628

475.7

19,603

490.6

Three months ended Jun. 30, 2020

187,463

(8.3)

3,409

2.6

3,319

(0.6)

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)

Three months ended Jun. 30, 2021

14,642

548.2

14,659

561.6

11,625

22.5

Three months ended Jun. 30, 2020

2,259

(10.0)

2,216

2.0

9,490

－

Earnings per

Earnings per

share, basic

share, diluted

(yen)

(yen)

Three months ended Jun. 30, 2021

36.11

35.30

Three months ended Jun. 30, 2020

5.43

5.33

(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 quarter of the year

ended March 31, 2021.

(2) Consolidated Financial Position

Total equity

Total equity

Equity ratio

Total assets

attributable to

attributable to

(millions of yen)

(millions of yen)

owners of the parent

owners of the parent

(millions of yen)

(%)

As of Jun. 30, 2021

1,005,486

454,581

451,743

44.9

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

―

Year ending Mar. 31, 2022

―

―

―

―

(Forecast)

(Notes) Changes from the latest dividend forecast: None

Regarding the annual dividends for the fiscal year ending March 31, 2022, we will determine the dividend payout of around 20% on a consolidated basis.

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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
Six months ending Sep. 30, 2021	537,000		16.3			45,000		115.1
Year ending Mar. 31, 2022	1,050,000		6.2			87,000		70.0
	Profit for the period attributable	%	Earnings per share, basic
	to owners of the parent
		Change			(yen)
	(millions of yen)
Six months ending Sep. 30, 2021	34,500			123.7		84.99
Year ending Mar. 31, 2022	68,000			75.4		167.52

(Notes) Changes from the latest consolidated results forecast: Yes

• Notes

1. Changes in significant subsidiaries during the period (Changes in certain subsidiaries resulting in change in the scope of consolidation): None
2. Changes in accounting policies, or changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than 1: None
   3. 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 13 of the documents attached hereunder.

1. Number of shares outstanding (Common stock)
   1. Number of shares outstanding at the end of each period (Including treasury stock)

As of June 30, 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 June 30, 2021:	21,177,485 shares
As of March 31, 2021:	20,418,303 shares

• 3. Average number of shares (Quarterly cumulative period) Three months ended June 30, 2021: 405,965,109 shares Three months ended June 30, 2020: 408,404,225 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 Wednesday, August 4, 2021.

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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...................................	9
(3)	Condensed Quarterly Consolidated Statements of Changes in Equity..........................................	10
(4)	Condensed Quarterly Consolidated Statements of Cash Flows .....................................................	12
(5) Notes on Condensed Quarterly Consolidated Financial Statements .............................................	13
	(Notes on Going Concern Assumptions).......................................................................................	13
	(Change in Accounting Estimate) ................................................................................................	13
	(Segment Information).................................................................................................................	13

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1. Qualitative information related to the financial results for the quarter

1. Explanation of Operating Results

In the three months ended June 30, 2021, the Japanese economy exhibited a gentle recovery against the backdrop of a recovery in exports to Europe, the United States, and China even in the midst of a global semiconductor shortage and a spike in raw materials prices and despite the sluggishness of domestic consumption as a result of COVID-19. The U.S. economy is improving, driven by spending on services with the resumption of economic activity in conjunction with progress on COVID-19 vaccination among the public. In Europe, consumption is recovering in response to easing of restrictions in conjunction with rapid progress on vaccination and infections declining after reaching a peak. In addition, exports are on the rise driven by the manufacturing industry against the backdrop of a global economic recovery. The Chinese economy continues to expand as a result of a gentle recovery in internal demand owing to the effects of economic measures and a bounce-back from the stagnation caused by COVID-19 as well as a global recovery in exports. In Southeast Asia, the future remains uncertain due to the impact of restrictions on economic activities to curb infections of COVID-19 and a shortage of vaccines.

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 came to 248,305 million yen, up 60,842 million yen (32.5%) year on year. Operating income came to 19,628 million yen, up 16,219 million yen (475.7%) year on year, profit before income taxes came to 19,603 million yen, up 16,284 million yen (490.6%), and profit for the period attributable to owners of the parent came to 14,659 million yen, up 12,443 million yen (561.6%).

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 quarter 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 quarter 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 solid automotive demand. Rod-end bearing sales decreased due to decreased aircraft-related demand.

As a result, net sales were up 8,583 million yen (24.2%) year on year to 44,090 million yen, and operating income was up 3,764 million yen (52.6%) to 10,918 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. Demand for LED backlights for LCDs was down due to a decrease in the number of smartphone models using them, but net sales were up owing to increased demand for automotive motors.

As a result, net sales were up 13,678 million yen (17.8%) year on year to 90,435 million yen, and operating income was up 5,564 million yen (239.6%) to 7,886 million yen.

The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, power supply components and smart product. Net sales were up owing to a strong performance by semiconductor devices and camera actuators as well as strong sales of mechanical components in response to increased demand for game consoles as a result of global quarantine measures.

As a result, net sales were up 20,686 million yen (36.9%) year on year to 76,753 million yen, and operating income was 5,085 million yen, an improvement of 5,159 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 strong 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 were up 17,805 million yen (93.4%) year on year to 36,869 million yen, and operating loss was 83 million yen, an improvement of 2,733 million yen.

Machines produced in-house are the main products in our Other business segment. Net sales were up 90 million yen (131.1%) year on year to 158 million yen, and the operating loss increased 122 million yen to 549 million yen.

In addition to the figures noted above, 3,629 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 2,750 million yen for the same period of the previous fiscal year.

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1. Explanation of Financial Position

1. Basic approach to financial strategy and capitalization

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.

2. Assets, Liabilities, and Equity

Total assets at the end of the first quarter were 1,005,486 million yen, up 28,715 million yen from the end of the previous fiscal year. This was primarily due to increases and decreases in inventories, other current assets, property, plant and equipment, and trade and other receivables.

Total liabilities at the end of the first quarter were 550,905 million yen, up 28,132 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables, bonds, and borrowings. Equity came to 454,581 million, bringing the equity ratio attributable to owners of the parent down 1.3 percentage points from the end of the previous fiscal year to 44.9%.

3. Cash flows

Cash and cash equivalents at the end of the first quarter were 159,282 million yen, down 6,197 million yen from the

end of the previous fiscal year.

Cash flows from various business activities during the first three months of the fiscal year and relevant factors were as follows:

Net cash provided by operating activities came to 12,317 million yen (compared to 3,537 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 trade and other receivables, inventories, and trade and other payables. Net cash used in investing activities came to 10,731 million yen (compared to 34,108 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 7,847 million yen (compared to 35,962 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 and dividends paid.

1. Explanation of Consolidated Forecast and Other Forecasts
   In regard to the consolidated forecast, in addition to the first quarter results exceeding the initial forecast, we expect

demand for ball bearings, motors, semiconductors, and other products to remain strong in the second quarter and thereafter. As such, we have revised the net sales forecast announced in the brief report of financial results on May 7, 2021 upward from 1 trillion yen to 1.050 trillion yen, the forecast for operating income from 80,000 million yen to 87,000 million yen, and the forecast for profit for the period attributable to owners of the parent from 64,000 million yen to 68,000 million yen.

	Six months ending Sep. 30, 2021	Year ending Mar. 31, 2022
Net sales	537,000million yen	(16.3％)	1,050,000million yen	(6.2	％)
Operating income	45,000million yen (115.1％)	87,000million yen	(70.0	％)
Profit for the year attributable to	34,500million yen	(123.7％)	68,000million yen	(75.4	％)

owners of the parent

( ): Changes from corresponding period of previous fiscal year

(4) Basic Policy for Profit Sharing and Dividends for the Fiscal Year and the Following 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, have been determined in light of the overall business environment and with an eye to maintaining a stable and continuous distribution of profits.

Based on the basic policy above, in the previous fiscal year, we provided an interim dividend of 14 yen, a year-end dividend of 14 yen, and a commemorative dividend of 8 yen per share in commemoration of the 70th anniversary and to express our gratitude to our shareholders, bringing the annual dividend to 36 yen per share. The interim and year-end dividends for the fiscal year under review will be decided at a later date aiming for a consolidated dividends payout ratio of around 20%.

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