[ Financial Results for Fiscal 2013 Performance Briefing ]Consolidated Full Year Results of FY March, 2013
Consolidated 4Q Results of FY March, 2013
Mr. Takakazu Momozuka
Corporate Officer,
General Manager
Finance & Accounting Department
I would like to go into detail on business results for FY ending March 2013 by business segment. In regard to passive components, net sales were 379.6 billion yen which was less than 2 billion yen or minus 0.5%. As for operating income, it was -11.1 billion yen, and this is down 4.4 billion yen on a year-on-year basis. As for restructuring, for the full fiscal year there was approximately 4.2 billion yen for this segment.
In regard to magnetic applications, net sales were 337.9 billion yen, which is up 21.5 billion yen, or 6.8% on a year-on-year basis. Operating income was 37.1 billion yen, down by 1.9 billion yen, and for restructuring there was approximately 3.2 billion yen that occurred. In this segment, there was the insurance revenue of approximately 5.8 billion yen as a result of the Thai floods.
Next for film application products, net sales were 112.6 billion yen, which is up 19.9 billion yen, an increase by 21.5% on a year-on-year basis. Operating income was 12.4 billion yen, up 6.2 billion yen on a year-on-year basis, and there was 900 million yen insurance income as a result of the Thai floods.
As for the others, net sales were 21.4 billion, minus 2.4 billion on a year-on-year basis, or -10.1% on a year-on-year basis. It had a -1.8 billion yen operating income, and this was an improvement by 3.1 billion yen. As for the overall operating income, it was -15 billion yen, which is at the same level as the previous year.
Next, on the factors for the increase in 3 billion yen in operating income, changes in sales including utilization and products mix, there was a -15.4 billion yen impact. Sales prices went down so there was a factor of -26.1 billion yen. Because of the low yen, there was a positive impact of 4.1 billion yen. Furthermore, as a result of rationalization and cost reduction in materials, there was a positive 16.7 billion yen. There were also fluctuations in the rare earth prices to have a negative impact of 7.4 billion yen. There was a decrease in SG&A expenditures, so this had a positive effect of 6.5 billion yen. There was a restructuring fee of 13 billion yen last year, but this went down by 7.5 billion yen to make it 5.5 billion yen. As for the restructuring benefits, we are looking at a positive impact of 12.9 billion yen. There are several factors that occurred which were special one-time factors last year, and because this did not occur this fiscal year, there were several positive factors. There was the impact of the Great East Japan Earthquake of 3.6 billion yen, temporary pension expenditure of 3.1 billion yen, and the Thai flood’s impact of 4.9 billion yen and this did not occur for this particular fiscal year. There was also the insurance revenue, because of the Thai floods, of 6.7 billion yen. There were also real estate sales in the previous fiscal year, which did not take place in this particular fiscal year, of 6.7 billion yen.
Now I would like to talk about the financial status of FY ending March 2013. Total assets were 1.1696 trillion yen, a 96.8 billion yen increase on a year-on-year basis. For liabilities, it was 589 billion yen, an increase of 28.2 billion on a yen year-on-year basis. Shareholders’ equity is 561.2 billion yen, an increase of 63 billion yen compared to the previous year. For comprehensive income, it is -159 billion yen, -71.8 billion yen compared to the previous year. This is because of the very low yen compared to the previous fiscal year. For the foreign exchange adjustments, there was an adjustment of 74.3 billion yen. For the shareholders’ equity ratio, at the end of last year it was 46.4%, now it is 48%, so this has gone up by 1.6%. For cash and short-term investments, it was 223.5 billion yen; this is up 50.1 billion yen on a year-on-year basis. For interest-bearing liabilities, it is 295.6 billion yen, compared to the previous fiscal year it is up by 22.8 billion yen. Net cash is 223.5 billion yen, which is -72.1 billion compared to the previous fiscal year.
For segment information, net sales from the 4Q were 220.5 billion yen, a 5.1 billion yen or 2.4% increase from the 215.4 billion yen in the 3Q. For operating income, in the 3Q it was 5.1 billion yen and -3.8 billion yen loss in the 4Q. 1 billion yen of costs were incurred for structural reforms so in the 4Q we recognized 800 million yen of insurance benefits. For pass components, net sales in the 3Q were 93.1 billion yen, increasing by 11.3 billion yen or a 12.1% increase to 104.4 billion yen in the 4Q. For capacitors, in the 3Q we had 26.6 billion yen, increasing by 4.1 billion yen or a 15.4% increase to 30.7 billion yen in the 4Q. For inductive devices, in the 3Q we had 30.6 billion yen of net sales, increasing by 600 million yen or a 2% increase to 31.2 billion yen in the 4Q. For other passive components, in the 3Q we had net sales of 36 billion yen, increasing by 6.5 billion yen or an 18.1% increase to 42.5 billion yen in the 4Q.
For operating income for passive components, in the 3Q it was -1.8 billion yen, decreasing by 2.1 billion yen for a loss of 3.9 billion in the 4Q. For magnetic application products, we had 84.2 billion yen of net sales in the 3Q, decreasing by 2.1 billion yen or a 2.5% decrease resulting in 82.1 billion yen in the 4Q. Recording devices’ net sales decreased by 60.2 billion yen in the 3Q to 57.6 billion yen in the 4Q, a 2.6 billion yen or 4.3% decrease. For other magnetic application products, in the 3Q it was 7.5 billion yen or operating income, decreasing by 5.7 billion yen or -76% resulting in 1.8 billion yen in the 4Q, 2.3 billion yen being the structure reform costs. For film application products, the net sales in the 3Q were 33 billion yen, decreasing by 4.4 billion yen or 13.3% to 28.6 billion yen in the 4Q. For operating income, in the 3Q it was 3.6 billion yen, decreasing by 1.9 billion yen or a 52.8% decrease to 1.7 billion yen in the 4Q.
For the Projections for FY March 2014, the exchange rates in March 2014 are assumed to be 90 yen to the dollar and 118 yen to the euro. For passive components, the forecast for March 2013 was 379.6 billion yen, but in March 2014 we expect a 15-20% increase from this level. We expect favorable business in high frequency components for inductive devices and circuit protection products, a gradual recovery of aluminum and film capacitors for industrial equipment, and expect incremental business for the automotive markets. For magnetic application products, the forecast for March 2013 was 337.9 billion yen, we expect -2-0% in March 2014 mainly due to the maturation of the HDD market. For film application products, the forecasts for March 2013 were 112.6 billion yen, and in March 2014 we expect a 15-20% increase in net sales due to the increase in sales for secondary batteries and functional film for the information and telecommunication markets. This concludes my projections, thank you very much.
