MinebeaMitsumi : BRIEF REPORT OF FINANCIAL RESULTS〔IFRS〕(Consolidated)(Year ended March 31,2021)

BRIEF REPORT

OF

FINANCIAL RESULTS〔IFRS〕（Consolidated）

(Year ended March 31, 2021)

May 7, 2021

Registered

MINEBEA MITSUMI Inc.

Common Stock Listings: Tokyo and Nagoya

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

Date planned to hold ordinary general meeting of shareholders: June 29, 2021

Expected date of payment for dividends: June 30, 2021

Date planned to file report of securities: June 29, 2021

Phone: [phone]

Preparation of supplementary explanation material for financial results : Yes

Holding of presentation meeting for financial results : Yes（For Analyst）

1. Business Performance (April 1, 2020 through March 31, 2021)

(Amounts less than one million yen have been rounded.)

(1) Consolidated Results of Operations

(%: Changes from previous fiscal year)

Net sales

%

Operating income

%

Profit before

%

income taxes

(millions of yen)

Change

(millions of yen)

Change

Change

(millions of yen)

Year ended March 31, 2021

988,424

1.0

51,166

(12.8)

49,527

(14.7)

Year ended March 31, 2020

978,445

10.6

58,647

(18.6)

58,089

(18.6)

Profit for

Profit for the year

Comprehensive

%

attributable to

%

income

%

the year

Change

owners of the parent

Change

for the year

Change

(millions of yen)

(millions of yen)

(millions of yen)

Year ended March 31, 2021

38,787

(17.3)

38,759

(15.7)

68,308

177.8

Year ended March 31, 2020

46,923

(22.7)

45,975

(23.6)

24,593

(60.8)

Earnings per

Earnings per

Profit to equity

Profit before

Operating income to

attributable to

income taxes to

share, basic

share, diluted

owners of the

net sales ratio

total assets ratio

(yen)

(yen)

parent ratio

(%)

(%)

(%)

Year ended March 31, 2021

94.95

92.87

9.2

5.4

5.2

Year ended March 31, 2020

111.11

108.68

11.6

7.2

6.0

(Reference) Share of profit (loss) of

investments accounted

for using the equity method:

Year ended March 31, 2021:

― million yen

Year ended March 31, 2020:

― million yen

(2) Consolidated Financial Position

Total equity

Equity ratio

Equity

attributable to

Total assets

Total equity

attributable to owners

attributable to

owners of the

(millions of yen)

(millions of yen)

of the parent

owners of the parent

parent per share

(millions of yen)

(%)

(yen)

As of March 31, 2021

976,771

453,998

451,141

46.2

1,109.38

As of March 31, 2020

864,481

402,276

394,372

45.6

965.64

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Year end balance of

cash and cash

operating activities

investing activities

financing activities

equivalents

(millions of yen)

(millions of yen)

(millions of yen)

(millions of yen)

Year ended March 31, 2021

93,763

(70,581)

9,257

165,479

Year ended March 31, 2020

86,486

(43,540)

(28,758)

130,746

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2. Dividends

			Dividends per share			Total	Dividends		Dividends
	End of		End of	End of		For the		dividends		on equity
	first		second	third	Year-end		payout ratio
	quarter		quarter	quarter	(yen)	year	(for the year)	(Consolidated)		(total)
		(yen)	(millions of yen)		(Consolidated)
	(yen)		(yen)	(yen)
Year ended March 31, 2020	―		14.00	―	14.00	28.00	11,529	25.2	2.9
Year ended March 31, 2021	―		14.00	―	22.00	36.00	14,669	37.9	3.5
Year ending March 31, 2022	―		―	―	―	―			―
(Forecast)
(Notes) Detail of year-end dividend	as of March 31, 2021
Ordinary dividend of 14 yen per share	Commemorative dividend of 8 yen per share

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.

3. Prospect for the Next 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 September 30, 2021	487,000		5.5			38,000	65.8
Year ending March 31, 2022	1,000,000		1.2			80,000	56.4
	Profit for the period attributable	%		Earnings per share, basic
	to owners of the parent
	Change			(yen)
	(millions of yen)
Six months ending September 30, 2021	30,500				81.4			75.00
Year ending March 31, 2022	64,000				65.1			157.38

*Notes
(1) Changes in significant subsidiaries during the year (Changes in certain subsidiaries resulting in change in the
scope of consolidation): Yes
Anew:	1 company ABLIC Inc.

1. Changes in accounting policies, or changes in accounting estimates Changes in accounting policies required by IFRS: None Changes in accounting policy other than 1: None

Changes in accounting estimates: None①②③

(3) Number of shares outstanding (Common stock)

① Number of shares outstanding at the end of year (Including treasury stock) As of March 31, 2021: 427,080,606 shares

As of March 31, 2020: 427,080,606 shares ② Number of treasury shares at the end of year As of March 31, 2021: 20,418,303 shares As of March 31, 2020: 18,676,128 shares

③ Average number of shares

As of March 31, 2021: 408,220,767 shares

As of March 31, 2020: 413,788,647 shares

*Brief Report of Financial Results is not subject to an audit 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. Analysis of Operating Performance and Financial Position," "(1) Analysis of Operating Performance") on page 4 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, May 7, 2021.

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	Index
1.	Analysis of Operating Performance and Financial Position ...............................................................	4
	(1)	Analysis of Operating Performance .............................................................................................	4
	(2)	Analysis of Financial Position......................................................................................................	5
	(3)	Basic Policy for Profit Sharing and Dividends for the Current and the Next Fiscal Years ..........	5
	(4) Risk Management........................................................................................................................	6
2.	Condition of Group of Enterprises......................................................................................................	10
3.	Basic Rationale for Selection of Accounting Standards ......................................................................	11
4.	Consolidated Financial Statements and Major Notes ........................................................................	12
	(1)	Consolidated Statements of Financial Position............................................................................	12
	(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income....	14
		(Consolidated Statements of Income)............................................................................................	14
		(Consolidated Statements of Comprehensive Income) ..................................................................	15
	(3)	Consolidated Statements of Changes in Equity ...........................................................................	16
	(4)	Consolidated Statements of Cash Flows ......................................................................................	18
	(5)	Notes on Consolidated Financial Statements ..............................................................................	19
		(Notes on Going Concern Assumptions)........................................................................................	19
		(Notes on Consolidated Financial Statements) .............................................................................	19

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1. Analysis of Operating Performance and Financial Position

1. Analysis of Operating Performance

• Overview of the year

During the consolidated fiscal year, the future of the Japanese economy remained uncertain. Although exports and consumption declined substantially due to the spread of COVID-19, the worst appears to be behind us as exports to the U.S. and China have rebounded. The U.S. economy slowed down due to COVID-19, but economic activity has since been recovering, including increased production in a wide range of industries. The European economy remains stagnant. Although the manufacturing industry is slowly recovering, lockdowns have been extended in conjunction with additional waves of COVID-19. In the Chinese economy, domestic demand recovered. For instance, automobile sales in China were back to a level prior to the spread of COVID-19, and exports also remained robust, particularly to the U.S. In Southeast Asia, the future remains uncertain due to the impact of restrictions on economic activities to curb infections of COVID-19.

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 9,979 million yen (1.0%) year on year to 988,424 million yen, the highest since our founding. Operating income was down 7,481 million yen (-12.8%) year on year to 51,166 million yen, profit before income taxes was down 8,562 million yen (-14.7%) to 49,527 million yen, and profit for the year attributable to owners of the parent was down 7,216 million yen (-15.7%) to 38,759 million yen.

ABLIC Inc. was made a subsidiary on April 30, 2020. The company has been included in the scope of consolidation in conjunction with the business integration. This includes the company's profits and losses from the date of the business integration on.

Performance by segment is as follows:

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 demand from fan motors. Rod-end bearing sales decreased due to decreased aircraft-related demand. Pivot assembly sales were down due to shrinking of the HDD market.

As a result, net sales were down 23,474 million yen (-13.0%) year on year to 157,411 million yen, and operating income was down 8,656 million yen (-21.7%) to 31,218 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 of LED backlights for LCDs were down due to decreased demand associated with a decrease in the number of smartphone models using them.

As a result, net sales were down 15,575 million yen (-4.1%) year on year to 363,847 million yen, and operating income was up 82 million yen (0.5%) to 17,634 million yen.

The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Semiconductor devices performed well as did mechanical components such as game consoles, resulting in an increase in net sales.

Profit and loss of ABLIC Inc. are included in the MITSUMI business segment in conjunction with its acquisition. As a result, net sales were up 68,761 million yen (23.5%) year on year to 361,004 million yen, and operating

income was up 1,105 million yen (5.9%) to 19,761 million yen.

The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial components and housing equipment components (such as building and house locks). Sales of automotive components were down substantially due to deceleration of the automotive market.

As a result, net sales were down 20,012 million yen (-16.0%) year on year to 105,133 million yen, and the operating profit or loss was down 4,448 million yen to the loss of 1,850 million yen.

Machines produced in-house are the main products in our Other business segment. Net sales were up 279 million yen (37.1%) year on year to 1,029 million yen, but the operating loss grew 407 million yen to 1,909 million yen.

In addition to the figures noted above, 13,688 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments in the previous fiscal year came to 18,531 million yen.

• Outlook for the next fiscal year

The global economy is plagued by uncertainty, including trade policies in each country, exchange rate trends, geopolitical risks, and questions about when COVID-19 will end. Amid these circumstances, we have put together the full-year consolidated business forecast below based on currently available information.

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	(Amount: millions of yen)
Net sales	1,000,000
Operating income	80,000
Profit for the year attributable to owners of the parent	64,000

1. Analysis of Financial Position

• 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.

Growth investments

The cash flow generated will first be applied to R&D and capital investment as funding for organic growth. We will also look into effective M&A using 50% of free cash flow and borrowings while maintaining fiscal discipline keeping the debt-to-equity ratio at 0.2.

Shareholder return

We take a flexible approach to dividends, aiming for a consolidated payout ratio of around 20% for our full-year dividend based on our policy of enhancing shareholder return. We will promote an appropriate and dynamic financial strategy that reflects our financial standing, stock market trends, and other factors, our top priority being to enhance equity efficiency and improve shareholder return while maintaining a stable and continuous distribution of profits.

Financial base

Ensuring a stable financial base is of paramount importance so that we can provide continuous distribution of profits to shareholders. As far as our rating goes, we have earned high marks from both Rating and Investment Information, Inc. (R&I) and the Japan Credit Rating Agency (JCR), receiving ratings of A and A+, respectively. Our equity ratio attributable to owners of the parent fluctuates in the short term with M&A, but in the medium to long term, we keep it above 50% in the aim of maintaining a solid financial base.

The Group is also working to lengthen fund procurement, and as of March 31, 2021, long-terminterest-bearing debt (excluding current portion of long-term loans payable) accounted for 49% of bonds and borrowings

• Assets, Liabilities, and Net Assets

Total assets at the end of the fiscal year under review were 976,771 million yen, up 112,290 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in cash and cash equivalents, trade and other receivables, goodwill, and property, plant and equipment.

Total liabilities were up 60,568 million yen year on year to 522,773 million yen. The main reason for this was an increase in bonds and borrowings.

Equity came to 453,998 million yen, bringing the equity ratio attributable to owners of the parent up 0.6 percentage points from the end of the previous fiscal year to 46.2%.

• Condition of cash flows

The balance of cash and cash equivalents at the end of the fiscal year under review was up 34,733 million yen year on year to 165,479 million yen.

Cash flows from various business activities during the fiscal year under review and other relevant factors are as follows:

Net cash provided by operating activities amounted 93,763 million yen (an inflow of 86,486 million yen in the previous fiscal year). This was primarily due to profit before income taxes, depreciation and amortization, increases and decreases in inventories, and in trade and other payables. Net cash used for investing activities amounted 70,581 million yen (an outflow of 43,540 million yen in the previous fiscal year). This was primarily due to purchase of property, plant and equipment and purchase of investments in subsidiaries resulting in change in scope of consolidation, etc. Net cash flows provided by financing activities amounted 9,257 million yen (an outflow of 28,758 million yen in the previous fiscal year). This was primarily due to increases and decreases in short-term borrowings.

(3) 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.

The Company will celebrate its 70th anniversary this year. In order to express our gratitude to our shareholders, we intend to make a proposal at the coming 75th Ordinary General Meeting of Shareholders in June to pay a 22-yen-per-shareyear-end dividend for the fiscal year, including the ordinary dividend of 14 yen per share and the

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