Thank you very much for participating for the business results fiscal year ended March 31st, 2023 for MinebeaMitsumi, despite your busy schedule. Let me introduce today's participants. From your right, Representative Director, Chairman, CEO, Tsuyohisa Kainuma. Director, President, Executive Officer, COO and CFO, Katsuhiko Yoshida. COO, CFO Office, Corporate Management Division, Hidenori Shimosako, GM. I will be serving as the moderator for today. I am from the PR IR office. My name is Kuwata. First of all, Yoshida will talk about the financial performance, and after that, Kainuma will talk about the management policy and business strategy. After that, we'll go into Q&A. We will end this meeting in 7:00 P.M. As we have introduced to you beforehand, from this time, based on the environmental policy of MinebeaMitsumi Group, we have stopped distributing the paper material for presentations.
We'll be asking for your cooperation to answer to the questionnaire. To utilize the QR code, which is on the upper right-hand side of the questionnaire paper, and please cooperate and answer our questionnaire. Today's presentation, including the Q&A, is live streamed on the internet. We are recording this meeting so that people can watch this afterwards on the website. Please understand that. Please refrain from shooting photos or recording the audio from your side. Thank you very much. Mr. Yoshida, the floor is yours.
My name is Yoshida. Today, I would like to explain the consolidated financial results for the fiscal year ended March 31st, 2023.
Consolidated net sales for the fiscal year ended March 2023 totaled JPY 1,292.203 billion, while operating income reached JPY 101.522 billion. Profit for the period attributable to owners of the parent hit JPY 77.010 billion. This is a year-on-year increase of 15%, 10.2%, 11.7% respectively for net sales, operating income, and profit for the per period attributable to owners of the parent, et cetera. For the older items, including net sales and operating income, et cetera, we hit a record high. Net sales increased for 11 consecutive terms. Operating profit increased for two consecutive terms.
Foreign currency exchange rates are estimated to have a year-on-year impact of + JPY 157.9 billion in net sales and + JPY 29.1 billion in operating income. Operating income includes JPY 14.5 billion of special factors. More details of the special factors will be provided later. Moving on to the next slide. Consolidated net sales for the fourth quarter of the fiscal year March 2023 was up 17.3% year-over-year and down 8.5% quarter-on-quarter to total JPY 339.718 billion. Operating income was up 58.9% year-on-year and up 30.3% quarter-on-quarter to reach JPY 34.441 billion.
Profit for the period attributable to owners of the parent increased by 2.1x year-on-year and increased by 2.5x quarter-on-quarter at JPY 33.068 billion. Net sales hit a 4th quarter record high, and operating income hit a quarterly record high as well. We estimate that foreign currency translations have a year-on-year limit impact of + JPY 33.6 billion in net sales and + JPY 4.1 billion in operating income. Quarter-on-quarter impact was - JPY 17.8 billion in net sales and - JPY 4.8 billion in operating income. Operating income includes JPY 20 billion of special factors. More details of the special factors will be provided later. Please turn to the next slide. This is the annual trend in net sales, operating income, and operating margin.
The bar graph on the left is net sales, and the one on the right is operating income, along with a line chart for the operating margin. The operating margin for March 2023 was 7.9%. This was down 0.3 percentage points year-over-year. Next slide, please. Since there were several special factors, such as one-time costs and one-time profits in this fiscal year, we will use this chart to organize them. Firstly, operating income was estimated at JPY 102 billion in the initial forecast, we announced in May last year.
Compared to this, there was a gain on the sales of the former Tokyo headquarters and others as one-time profit of JPY 40.4 billion and one-time cost of structural reform cost - JPY 17.2 billion and FX forward contract - JPY 8.7 billion. Excluding these special factors, we estimate that the downside of the business was JPY 15 billion. It means that operating income on the business basis, including, excluding these special factors, was JPY 87 billion. Moving on to the next slide. This is for the quarter pre-trend in net sales, operating income and operating margin. The operating margin for the fourth quarter was 10.1%. This was up 2.6 percentage points year-on-year and up 3.0 percentage points quarter-on-quarter.
Breakdowns of special factors for each quarter of this fiscal year are shown in the boxes for your reference. Please go to the next slide. We have changed the names of the business segments since April 2023. By matching the name and the reality of the segment, we will improve understandability and enhance corporate value. The machine components, electronic device, it will be PT. Electronic devices and components will be Motor, Lighting & Sensing, MLS. MITSUMI business will be Semiconductors & Electronics, SE. U-Shin business will be Access Solutions. There is no changes made to the operation of each business segment. Both the new and old names will be shown on the following slides. Next slide, please. This slide shows the difference between the forecast as of February and actual results for net sales and operating income by business segment for the fourth quarter.
Net sales for the Machine Components Business were higher than projected, mainly due to steady sales of bearings and aircraft components. In the Electronic Devices and Components Business, although sales of HDD motors fell short of forecast, overall sales were higher than projected, thanks to steady sales of other motors and LED backlights. The MITSUMI business experienced lower than expected sales, mainly for optical devices. Net sales for the U-Shin business were generally in line with the forecast. Operating income for the Machine Components Business and the Electronic Devices and Components Business were generally on track with the forecast if the special factors were excluded. Operating income for the MITSUMI business fell below our forecast due to the special factors and declined revenue associated with the slowdown in optical device sales.
The U-Shin business's operating income was less than projected due to deterioration in regional product mix, even if we excluded the special factors. Next slide, please. Now let's take a look of the results by segment, starting with machine components. Remained Precision Technologies segment. On the left is a graph indicating yearly net sales trends, and on the right is a graph with a bar chart showing yearly operating income trends, along with a line chart for operating margins. In the fiscal year ending March 2023, net sales were up 11.2% year-on-year to total JPY 197.3 billion. Sales of ball bearings increased 14.2% year-on-year to reach JPY 146.2 billion. The monthly average of bearing sales volume totaled 226 million units for a decrease of 5% year-on-year.
Looking at sales by application, we see that sales for products for automotive applications increased while sales for those for data centers and home electronics declined. Sales of rod ends and fasteners were up 30.4% year-over-year to total JPY 35.2 billion. It's recovering steadily from the effects of COVID-19. Sales of pivot assemblies decreased 29.3% year-on-year to total JPY 15.9 billion. Operating income for the fiscal year ending March 2023 totaled JPY 43 billion, putting the operating margin at 21.8%. We saw operating income decrease 6.1% and the operating margin decline by 4 percentage points year-on-year. Looking at the year-on-year results by product, we see that the operating income for rod ends and fasteners rose, while operating income for pivot assemblies and ball bearings declined.
If the impact of special factors such as forex forward contracts, structural reform costs were excluded, operating income for the fiscal year, fiscal March 2023, would have decreased 81% year-on-year and operating margin would have decreased 2.9 percentage points year-on-year. For the fiscal year ending March 31st, 2024, we expect sales of ball bearings to increase due to gradual recovery for demand for automobiles and demand for services expected to recover from the second half of the fiscal year. In our aircraft-related businesses, including rod ends and fasteners, we expect full-scale recovery in the second half of this fiscal year. For pivot assembly, we also expect recovery of demand in the second half of the fiscal year. Please go to the next slide. This slide shows the quarterly trends.
Fourth quarter net sales decreased 2.7% quarter-on-quarter to total JPY 49.1 billion. Sales of ball bearings decreased 6% quarter-on-quarter to total JPY 35.3 billion. The monthly external shipment volume was down 8.2% quarter-on-quarter for an average of 206 million units. This was due to the slowdown in the market, mainly for data centers. Sales of rod ends and fasteners totaling JPY 9.8 billion were up 2% over the previous quarter. Sales increased with the recovery of aircraft production.
Sales of pivot assemblies increased 21.5% quarter-over-quarter to total JPY 4 billion. Operating income for the quarter totaled JPY 8.7 billion, and operating margin was 17.7%. On a quarter-over-quarter basis, operating income decreased 24.9%, while the operating margin dropped 5.2 percentage points. Looking at the results by product, we see that operating income for ball bearings and pivot assemblies decreased quarter-over-quarter, while operating income for rod ends and fasteners was increased compared to the previous quarter. These include the impact of special factors, as noted earlier. Please go to the next slide. Now let's look at the electronic devices and components segment, renamed Motor, Lighting & Sensing segment.
In the fiscal year ended March 2023, net sales were down 1.3% year-on-year to total JPY 366.3 billion. Looking at the results by product, we see that sales of motor increased 2.2% year-on-year to reach JPY 272.9 billion. This increase was due to steady sales of motors mainly for automobiles. Although motors for HDDs have slowed down. Electronic devices sales were down 19.7% year-on-year to JPY 51.6 billion. Net sales of sensing devices totaled JPY 37.5 billion, increasing 5.9% year-on-year. Operating income was JPY 0.9 billion, with the OP margin of 0.3%. Compared to the previous fiscal year, operating income decreased 95.7% and the OP margin declined 5.5 percentage points.
Looking at the results by product, we see that operating income for motors, electronic devices, and sensing devices all declined. If the impact of special factors such as FX forward contracts, structural reforms cost, and others were excluded, operating income for March 2023 would be an increase of 45.3% year-on-year and the operating margin decline 2.6 percentage points year-on-year. In the fiscal year ending March 2024, we expect increases in both sales and operating income for motors due to gradual recovery in demand for automobiles and the recovery in motors for HDDs through the second half of the fiscal year. For the electronic devices, sales will be almost flat, but operating income is expected to slightly decrease. Sales and operating income of sensing devices will be almost flat. Next slide, please.
This slide shows the quarterly trend. Net sales increased 6.1% quarter-on-quarter to total JPY 96.2 billion. Looking at the results by product, we see that sales of motors increased 12.2% quarter-on-quarter to reach JPY 73.4 billion. This is mainly due to a recovery in the demand for HDD motors. Sales of electronic devices were down 15.6% from the previous quarter to total JPY 12 billion. This is due to seasonality of LED backlight models used by our key customers. Sales of sensing device totaling JPY 9.3 billion were down 5.8% from the previous quarter. Operating income came to JPY 4.6 billion, and the operating margin was -4.8%.
On a quarter-on-quarter basis, operating margin dropped to 6.9 percentage points. These include the impact of the special factors, as noted earlier. Next slide, please. Let's look at the performance of the MITSUMI business segment, renamed Semiconductors & Electronics segment. Net sales increased 23.6% year-on-year to total JPY 530.5 billion in March 2023. This is mainly due to increased sales of optical devices. Operating income came to JPY 42.7 billion, and the operating margin was 8.1%. These figures represent 2.1% year-on-year increase in operating income and 1.7 percentage point year-on-year decrease in the operating margin. Operating income for optical devices, mechanical components, and power supplies increased, while other business saw a decline.
If the impact of special factors such as negative goodwill for SUMIKO TEC, structural reform cost, and FX forward contracts were excluded, operating income for the fiscal year ended March 2023 would be an increase of 14.3% year-on-year and the operating margin decline at 0.8 percentage points year-on-year. In the fiscal year ending March 2024, those sales and operating income in optical device and semiconductors are expected to remain steady. Overall, we anticipate a slight decrease in both sales and operating income due to an expected decrease in sales and operating income in mechanical components. This slide shows the quarterly trends. Net sales decreased 32.3% quarter-on-quarter to total JPY 123.6 billion. This was due to decreased revenues accompanied by seasonality of optical devices and mechanical components, et cetera.
Operating income totaled JPY 0.6 billion, while the operating margin was 0.5%. Operating income decreased 96.5%, and the operating margin declined 9 percentage points quarter-on-quarter. These are due to a decline in operating income as a result of lower sales for optical devices and mechanical components, as well as the special factors noted earlier. Finally, let's look at the U-Shin business, renamed Access Solutions segment. Net sales increased 33.7% year-on-year to total JPY 194.7 billion in March 2023. This is due to a recovery in sales to the automotive industry, in addition to the performance of Minebea AccessSolutions, formerly Honda Lock, which became our consolidated subsidiary as January 27th. Operating income came to JPY 23 billion, and the operating margin was 11.5%.
These figures represent a 30.5x year-on-year in operating income and 11 percentage point year-on-year increase in the operating margin. If the impact of special factors such as structural reform costs and negative goodwill for Honda Lock were excluded, operating income for March 2023 would be 2.8x the growth year-on-year and the operating margin would be 0.6 percentage points up year-on-year. In the fiscal year ending March 2024, we expect an increase in sales and operating income due to impact of business integration and recovery of automobile production. Next page, please. This slide shows quarterly trend. Net sales increased 50.1% quarter-on-quarter to a total of JPY 69.5 billion.
This was due to the addition of Minebea AccessSolutions, a result as noted earlier. While our operating income total JPY 21.7 billion and the operating margin was 31.3%. Operating income increased 83.9 time, and the operating margin rose 30.7 percentage points, quarter-on-quarter. These include the impact of special factors, as noted earlier. Next slide, please. The bar graph here shows the full year trends in profit attributable to owners of the parent, while the line graph chart, the changes in the profit for the period per share. The profit for the period was JPY 77 billion. Earnings for the period per share was JPY 187.6.
The profit for the period and earnings for the period per share hit record highs. Next slide please. The bar graph here shows quarterly trend in profit attributable to owners of the parent, while the line graph chart changes in the profit for the period per share. The profit for the period was JPY 33.1 billion. Earnings per share was JPY 80.6. Both quarterly profit and earnings for the period per share hit quarterly record high. Next slide please. Next, we have quarterly inventory trend. At the end of the fourth quarter, inventory total JPY 263.1 billion, which is JPY 12.8 billion less than what it was three months ago.
This is mainly due to the strategic operation controls in ball bearings, spindle motors and others. Next slide, please. This graph contains a bar chart showing trends in net interest bearing debt, which is a total interest bearing debt minus cash and cash equivalents, and the line chart indicating free cash flows. At the end of the third quarter, net interest bearing debt totaling JPY 201.7 billion was up JPY 114.7 billion from the end of the previous fiscal year. This was mainly due to the purchase of the new Tokyo headquarters, a related expense expenditure, and the expenditure associated with M&As and increase in working capital due to higher inventories, et cetera.
At the end of the fiscal year ending March 2024, the cash position is expected to improve, thanks to the strong ability to generate the cash. Next slide, please. This is a summary of the forecast of the fiscal year ending March 2024. This fiscal year, we expect to achieve a new record high in sales. Although net sales are expected to decrease in mechanical components, a growth in bearings and motors and access products and business integration of Minebea AccessSolutions will make up for it, with overall net sales expected to increase to JPY 1,450 billion. Operating income are expected to increase in Precision Technologies, Motor, Lighting & Sensing and Access Solutions in anticipation of a market recovery from the second half of the year.
We assume that operating income, excluding special factors, will increase, compared with JPY 87 billion for the fiscal year ended March 2023, as noted earlier. The exchange rate is assumed to be JPY 130 to a U.S. dollar. Next page, please. This slide shows the forecast by business segment. This is the end of my presentation.
Next, Chairman Kainuma, please.
From my side, I would like to explain about the management policy and the business plan and outlook. I think you can just go through this. This was the summary of the last fiscal year. Currently, if you look at the situation, smartphones, storage related businesses and automotive sector, we have not seen a powerful recovery trend in these markets. I think they're just going through adjustments. In the second half of this year, whether they're going to recover or not, it all depends on how the new businesses or new products can be introduced. In terms of storage, I think without mistake, this we will start to see recovery. According to the re-new year's report, the ChatGPT, the graphic Micron has to be used.
This new storage demand is starting to emerge. For automotive, gradually the semiconductor shortages and supply chain disruption has started to be resolved.
The, in terms of volume, basically, with, the OEMs are going to increase their volume output. Basically, they were focusing on trying to produce high-end, automobiles as quickly as possible, and they were not able to catch up in terms of volume. However, gradually, we, I think that the situation is going to recover. Against this context, inventory reduction on the supply chain is going to take a bit more time. But in terms of post, adjustment, after the adjustment has ended, what type of picture can we draw? I think that would be the most important factor. Today, what I want to stress, to you is that from our point of view, growth is going to accelerate for our company, so the launching pad has been completed at last.
That is my point, and that is what I want to communicate with you. This Eight Spears products and the integration products, without fail, is going to serve as our driver. That is the picture that I want to show to you. This fiscal year's forecast. It's very easy to give you grand numbers, but I think we should be conservative because the current situation is as such, as I have explained. The JPY 100 billion of OOP, I wanted to give you that type of number, but I hope that you I will be giving you conservative numbers, and I hope that you understand.
If we look at the speed of recovery, and if there is a change of the outlook in a timely manner, we will communicate that with you, and I think that's the best way to do so. In terms of the recovery, if that is out quicker than we have expected, then achieving this JPY 100 billion will not be, you know, unexpected, so to speak. Looking at this diagram, since I became the president, I have put in the numbers, and the current three-year plan is reflected in this graph. I wasn't aware of this at all, but I realized is that for 10 years in a row, we have been able to have record sales for 10 consecutive terms. Of course, there are various factors behind this. Forex is one factor that changes, product mix changes.
To be frank, so in terms of the sub-core products, there is a type of the products, the supplied components. We buy this product that are supplied, and then we put on products, assemble that, and deliver to the customers. That is reflected in our sales. That's true. However, that said, if you're doing this for, this business 10 years and accounting standards has changed, there are various factors that are reflected. The bottom line is that we have been able to achieve 10 consecutive record sales, and for 24 M&A deals are included in this. In terms of this growth trajectory in this 14 years has become quite clear.
What I have running this business, and I thought it was amazing, is that when I became a president, this rather than the Access Solutions business, it was JPY 230 billion, it was a bit small company. Even if we increase the sales by 10%, it was JPY 240 billion, it's more than JPY 1 trillion. There's JPY 1.3 trillion. 10% is JPY 130 billion. In this three-year plan that is shown here, even looking at this year, basically, if we round up the numbers, JPY 1.5 trillion is going to be achieved.
This 10% growth of the 10% magnitude is completely different from 10 years ago, and I think we are at a completely different stage. Going forward, our growth is going to accelerate going forward. More than ever, maybe people will say that the operating profit is not growing. If you don't have the sales, operating profit will not grow. The sales is actually accelerating. We have the supply parts from the customers. The Access Solutions business is basically not contributing to the profit. If you exclude those type of businesses, 10% operating margins already achieved. The operating profit growth is achieved. This is our focus. When there is a turnaround, it means that a large return can be expected because we have the sales out there.
This is the midterm business plan and the breakdown of the midterm business plan. Internally, I say the real operating margin, I use the word real operating margin, because if you look at a long-term perspective, we have this
In some cases, we had to reflect the supplied parts business in the sales. If you exclude that, we're going to achieve 15%. Let's achieve 15%. That has been the new target internally. Well, I was just, you know, beginning to be on the roll, I had to change the microphone, excuse me. In any case, how actually can we realize this with the bearing business? Well, bearing business is a kind of a plateau, I'm going to mention it later, it's going to grow going forward. The aircraft business is going to recover. The next driver is going to be mentioned later, semiconductors. JPY 100 billion is clearly in the sight.
If we achieve JPY 100 billion, it means that we have become the top 10 analog semiconductor manufacturers, and currently, nobody's watching us. That's the reality. From our point of view, we want to be a global niche top. In a certain area, we become a top player. About 50% of our sales is coming from the global niche top products. Under the same logic, the semiconductor, if we go focus on the semiconductor, that's what we can achieve. With automotive-related business, with motors, there's a lot of inquiries coming. That's the reason why we can show you this chart. In terms of sales, we have I have not mistaken a projection of the sales for this past 10 years. We in retrospect, sales, we have been able to achieve the operating income.
There has been some fluctuations. Overall, we have been able to grow, of course, but because there's a lot of factors that we have to consider. That said, if the recovery is in place, and we have the launching pad, and if you look at the Eight Spears products that are lined up there, and if they are able to achieve a certain level of sales, this real operating margin 15%, I think we will be able to achieve that. There are three slides, is that is actually the backup, and there's a reason that I say that I can achieve this. What are the drivers? The Eight Spears products, bearings, motors, analogs, semiconductors, and now, it's not making any contribution to the profit, but what is most promising is Access products.
Of course, sensors, connectors, and power supplies will follow them and grow going forward. Let's take case, for example, automotive products. We have so many products that can be a global niche top product. If you look at each and every one of them, each one is very unique and interesting. Degree of growth, they are expected to grow dramatically in niche areas. Combined strengths will be capitalized on in order to maximize profit. Finally, I have been talking about SOGO or combined strengths, and you may be wondering what I mean by that. Finally, we are visualizing the future for these products. For example, HVAC. The 6 million units of a monthly production is anticipated.
Growth will keep growing, and by horizontally deploying them, the number is expected to grow further. Resolver, fortunately, the European customer has decided to adopt our product. Going forward, this will be adopted by many more models horizontally, semiconductors, motors, bearings, and connectors, softwares. Those things together will demonstrate our capability and strengths. Here, you cannot see the details, but the Flush Handle, as you may be aware, this one started, the mass production started in 25th year of Heisei or the mass production will start in 2025, and JPY 100 billion. This combined strengths is now instilling into the market. The steady increase can be now plotted on the graph.
JPY 2.5 trillion is the target, but by any means that this is an achievable number. Bearings is now at the scaffold. We have created a capacity. When the demand comes back, we will be able to ship the products any time. The aircraft, we still have supply chain issues, but as we imagined, the aircraft business is coming back. From push to pull. The major aircraft manufacturers have given us an award. In other words, our delivery time was very accurate. It's almost done. How the area of bearings is going to grow, I would like you to take a look at it later on. MLS. As I said, the automotive motors, we have so many inquiries. Our designers are responding to each inquiry, generating results.
The resonant devices will be adapted in many products. The backlight, not just mobile phones, but automotive, major automotive OEM is very close to make a decision to use our product. The OLED for automotive is something for a distant future, according to what I heard. The backlight, the technology, our patented technology in 2025 or 2026, we will be seeing more of those. The semiconductor, Semiconductors & Electronics, the former MITSUMI, fortunately, has been able to renew the record in profit. In the past, I have been reported that it would exceed the JPY 50 billion, which I think was a major challenge.
Unfortunately, in the second half, it lost the speed and actuators, OIS, semiconductors, game consoles, not just those, but the connectors and power supplies that will start contributing to profit. This is the major topic for today. Semiconductors will be our major driver going forward. Of course, MITSUMI and ABLIC, the combined strengths, that is true for the products as well. What each will be doing, the proper segmentation and the proper strategy formulation have been completed. MITSUMI, the power semiconductor suitable for mass production, IGBT and SiC will be handled by MITSUMI. That is the basic plan. By doing so, MITSUMI's semiconductors will become even larger. On the other hand, ABLIC has always been good at making a small lot of many products.
SEC or SSC, which is a semiconductor design house, what they are targeting at is the highly integrated product, analog front-end. The automotives will be using sensors while it's driven. The analog signals can be instantaneously converted into digital. Highly integrated circuits. In other words, a microcomputer type functions are embedded. The CPU behind that, the signals that can be transmitted in the manner that is easy to be processed. By 2030, the JPY 70 billion sales only for AFE, highly integrated AFE, can target such sales. It's very, it's been very well received by customers. I think there is a high probability that both are sort of staple foods in industrial products.
The next staple food will be analog semiconductors. global niche, the mass production, we are not intending to compete against the giant, but we will fine-tune our products, capitalizing on our characteristics, and we will be selling those products to the customers who highly evaluate our abilities with a certain level of a margin. This is Access Solutions. This is our biggest challenge.
Because the customers are not making as many as we thought. Minebea Solutions, former Minebea Solutions are working hard, but if these things work, we will be able to see a turnaround. It's already foreseeable. Iwaya is now dedicated to Access Solutions, and every month, he's visiting Mexico or Europe, Brazil, Mexico, the US. He's essentially traveling around the world to Access Solution business in order to make Access Solution business a value-added one. The products that we should be obtaining the global niche, like German spindle motor players, and the engineers, some of them are now transferred to Access products. In Germany, the former U-Shin, Valeo, former Valeo, the engineers from former Valeo are working together to develop handles capitalizing on the combined strengths.
Going to the environmental initiatives, I hope that you'll take a look at this later. From our point of view, as you've seen on the lower right-hand side, we are taking this very seriously to reduce the burden on the energy, and we will realizing these. With the local government, for the top people of the local government, I directly are engaged with them in conducting lobby activity and getting the support of the top local government. We want to offer or execute an ideal execution. It's the first time that I'm going to meet you face-to-face in three years. This Tokyo Cross Tech Garden, the employees evaluate this highly, and there's a lot of exchange that is happening. We have a lot of initiatives to accelerate this exchange within this building.
I think without a fail, this will be a source of strength for us. About for about three to four years, maybe four to five years, the act and real evaluation will be given out. I will be the CEO and Chairman. I'm 67 years old. Gradually, I have to consider my succession plan. Mr. Yoshida is seven years younger than me, and he graduated from university, and he immediately came over to our company. Even more than me, in terms of the human resources of this company, he knows more than me. This time around, MITSUMI's President is Iwakuma, who actually came, used to work in MITSUMI. He's Executive Officer, but he's going to be a Managing Executive Director.
He is going to lead MITSUMI, and lead MITSUMI with excellent capabilities. Our company has become larger, if you look at the vertical line on the left is what I have this internally. This is my type of corporate philosophy, company credo, and management strategy. Execution items are decided, how this execution strategy is going to be compiled and then put into action. This is the kind of a system what I always have inside me. Basically, I have been in charge of this all the time. Of course, I delegate it to my subordinates and ask them to do this. If I'm a pure CEO, it's basically from strategy. In terms of the actual execution, I will leave it to the COO.
I can't leave everything suddenly to Yoshida. There are things that I, myself, only myself can do. Of course, there are things that are out there. With those type of items or strategies, even basically, in some cases, I have to be engaged for the actions of executions because we have not yet achieved the JPY 2.5 trillion. In the future, you can see this graduation or the colors keep becoming lighter. Gradually, but gradually, in terms of the execution side of this business, gradually, I will delegate that to the COO in the future. Thank you. Thankfully, the dividend is JPY 40. Well, we're now into the company of JPY 7. Maybe you are not satisfied, but we are conducting M&A. We are buying back our shares.
This would be the level of dividends that we will be forecasting this year. That's all from me. Thank you.
Next, we'll go into the Q&A session. The, the institutional investors and analysts are only allowed to ask questions. Before you ask a question, please state your name and your organization. We'll bring over the microphone to you. For those who have a question, please raise your hand. Yes.
The person in the front row.
Thank you very much. Takayama from Goldman Sachs. First of all, let me confirm the numbers. JPY 100 billion operating profit, which was announced after Q3. Please explain more about the positives and negatives about the guidance. It's JPY 20 billion less because of the structural reform. Was it about the same? The comparison post the Q3. The positives are JPY 40 billion, and negatives JPY 17.2 billion, net JPY 23 billion, excluding the FX forward.
Responding to your question, the structural reform, JPY 20 billion, as we explained. That was JPY 17 billion. It wasn't as much as JPY 20 billion.
On the other hand, the revenue was about in line with the assumption. I mean, the profit was in line with the assumption. I see. In real term, the results vis-à-vis the plan. This amount which was not used for the structural reform is a positive. JPY 20 billion and JPY102 billion, JPY 3 billion was for the organic part, excluding the special factors, a slight downside. I see.
My second question is about the second half, the plan for the second half. In the latter half of the slide deck, I think it was like, what, page 24. JPY 67 billion is the operating profit for the second half, excluding the Precision.
The profit seems to be inclined towards the second half. How well the company does in the second half will prepare the platform for the next year. Can you talk more about the probability of achieving that in the second half? Particularly Access Solutions, JPY 1.5 billion to JPY 8.5 billion, and the Motor, Lighting & Sensing. It depends on the improvement of the margin, and then the improvement in the margin of the semiconductor will be another major factor. Can you elaborate on that, please?
Right now, the Q4, which has been finished, we control the operation, which is reflected on the decrease of inventory.
We posted a pretty big sales, but the operation was controlled, that trend will continue going forward. Data center demand adjustment is still continuing. In addition, the smartphone seasonality, it was at the low level in Q1, reduced the production of the older models of the smartphones also affected. The Q1, more than the sales, we are adjusting the operation. Likewise, the automotive production is likely to normalize in the second half. The data center adjustment will probably normalize to some extent. Business environment, right now, there are the positives and negatives, but if those things normalize, I think we will be able to achieve the plan in the second half. Your question about the motors, HDD motors, we are still making a major adjustment.
Other than that, automotive motors, as Kainuma explained a while ago. Automotive models are being renewed one after another. The number of motors used per unit is increasing, and that is expected to increase even more in the second half. First half and the second half, there will be a huge difference in the second half. On Access Solutions, China, the reduction in sales of automobiles in China or the inventory adjustment is having a major impact. It is likely to be resolved after the first quarter. The automotive market recovery is anticipated. Therefore, these numbers are not unachievable.
Lastly, I would like to ask this question to Mr. Kainuma.
Industry recovery and profit to be generated in the first half and second half, I understand that it depends upon the external factors, but what are the areas that you became very confident for generating a much bigger profit? On the other hand, what are the areas that you think there is still a huge room for improvement?
I don't know if you believe me or not. Analog semiconductors and Access Solutions will be the next drivers for recovery. I am confident about that. Why I can be so confident, you may be wondering? The former U-Shin-related business like Europe automobiles are recovering. In May and June, it will turn profitable. That is what I have been reported recently.
If things like this accumulate little by little, turning profitable. We will see more of such things in. Therefore, Minebea AccessSolutions will be very interesting because this much sales it has. I mean, there are so many areas that can be improved. It's never hopeless. Rather, we can challenge many things. It's like a treasure box. Next, analog semiconductors, I cannot share with you the details, but we have been working on many things. It's about time for them to bloom. In the second half of this year, what we ordered last year and year before, the machine tools will be delivered. IGBT, I mean, we are not able to make enough of them. Yasugi is making double-digit losses. Yet it's being offset and MITSUMI is generating profit.
If Yasugi starts making contribution to profit, we will see a totally new picture. These two things are really interesting. There are nothing that I do not know what to do with. I mean, I've never felt that way. I always believe that there is something I can do. At this point in time, there are nothing that I do not know what to do.
Let's go to the next question.
Sato from Morgan Stanley Securities. Thank you very much for your presentation. I have three questions from my side. First is about the former MITSUMI, the major products from FY 2021 to FY 2022, how did they change? For this fiscal year, what type of change are you anticipating? Can you elaborate on this? That's my first question.
From FY 2021 to 2022 and FY 2022 to FY 2023, is that what you're asking?
Yes.
For FY 2021 to FY 2022, the sales, this is JPY 421.1 billion to JPY 530 billion. JPY 41.8 billion to JPY 4,021.27 billion, the operating profit has increased. In terms of the reason why the sales has increased this much is that optical devices, that has been the major contribution. For the mechanical parts of the flat semiconductors.
Full flat or slight increase, that has been the breakdown. For this fiscal year, for the mechanical components, the major customer's cycle is what we have to take into account that we're being conservative. The decline in profit and decline in sales. For the optical devices, basically this will be flat or maybe a slight growth. That would be the for sales. Operating profit, the same story. Increase of profit is what we are anticipating. For the semiconductors, it'll be about 10% or more than 10% sales growth, and profit will be growing at the same level. If you combine all of this, that is the number that we are showing you in the presentation.
Thank you very much.
This is a very short-term question, but for the fourth quarter, the profit, I think there is some very special factors, but JPY 600 million. In the first half, it was JPY 1.1 billion. In the first four... half of this is going to recover. Of course, the second quarter, camera actuators is going to recover, I understand that. The first quarter, it seems to be at a low level. Is that the way to understand this?
Yes. For the first quarter, if you look at it by segment, profit plan, first quarter start with, starting at JPY 1 billion, second quarter, JPY 10.5 billion. For the first half, it's JPY 11.5 billion. The first quarter will be a slow start, a very slow start.
The optical devices' new model is in between the models and the former older models of production is slowing down. Semiconductors, the B/B ratio is over one. It's about 1.3. It's recovering. Currently, we haven't increasing the production. In the second quarter, it's going to see a substantial recovery. For the game business, the first quarter, it's in the slow season. Everything what has been slow in the first quarter will start to recover in the second quarter. Within this mix, the MITSUMI's of this fiscal year's outlook, the first half is on JPY 11.5 billion, and the second half is JPY 30.5 billion. That's our outlook. Thank you. For the semiconductor business, you talked about the analog front-end related sales.
JPY 70 billion to, by 2030, you are going to expand the sales to that level. 2020, 2030, analog semiconductor overall sales size, what will that be? What would be the profit in 2030? Again, this is a very short-term question, but when will be the bottom, and when will we start to see a sign of recovery? I'm answering your second question first. The bottom, we are recovering from the bottom. At the executive officer meeting, the other day we had that meeting, and there's no inventory, and we want to increase the production. A lot of business units, some business units have said so. One of the business units is ABLIC. They have requested to increase production.
Some semiconductors, there's no inventory, they want to increase the production. Of course, I said yes. We, we have had that report. Compared to the past, I think we are starting to see the light. I think that's safe to say. In 2030, what will be the size of this business? It depends on how many funds that we have, because we have been conducting M&A. If there are any deals out there, of course, we will conduct M&A. Currently, excluding M&A, if I remember correctly, the JPY 70 billion, including the JPY 70 billion, about JPY 200 billion of sales should be achieved. In terms of the operating margin, the U.S., famous semiconductor maker has about 40% or 50%, close to 50% of operating margin. We cannot go to that level.
That said, you can imagine what our margins would be. Next, following the ball bearings, the Semiconductors may be the contribution of the profit. For the bearings, we think we're going to reach JPY 600 billion without any mistake, because JPY 52 billion has been. It was JPY 60 billion. This year, it was JPY 52 billion. JPY 60 billion was within the sight. There has been a huge adjustment for the storage business. If the automotive business and the storage business recover, and if they start to grow, I think the profit, we can achieve this level of profit. This level of profit, or close to this level of profit, can be achieved by the Semiconductor business.
Thank you. Lastly, this is about the connector business.
You have acquired two companies. What is the stage that you are in? After the acquisition, within the connector business, what do you feel, or what are the measures that you're planning to implement towards the future?
Regarding the SOGO, the integration, this is a kind of a vertical integration within the company, and there's some will not fit within this picture. Looking at the not fitting into the SOGO area, there's a lot of inquiries and we're trying to sort them out. What other business would be projects or deals that we should receive as mass production. We started to sort out those inquiries. I think 100 or something of inquiries are coming in. We...
We are conducting PMI, and the people working on the floor are actually trying to find out which will be the best projects to be engaged in. Another area is the SOGO or the integration side, that there'll be the Resolvers, connectors. Because most of the business is automotive, so when there is a model change, we want to get into the business. That's the only way we do the business. Resolver is doing very well, and have been able to increase our share. Of course, the more time goes by, the connectors, in these areas, we'll be able to produce them internally, and that will lead to the high added value. In that sense, maybe it'll take some time, but steadily we are going forward.
I think that's the picture of our business. However, the connectors is whether, at the current status, it's not going to be a business that's going to be, generate a lot of margins because the JPY 50 billion is the sales target for this business right now, compared to the semiconductor business, it's still small. This is ongoing business for us. If there are, maybe there's some M&A opportunities or maybe there'll be a hit product that we can come out. I think all the products, it goes for all the products that we have engaged in the past. I think the focus here is that high-speed transmission or the water resistance, this, these special functions we want, whether we can show a presence. I think that would be the key.
Thank you very much.
Any questions from the floor? The person in the front row.
Goto from Mizuho Securities. Thank you very much. I have two questions about the numbers and also another one about the semiconductor. The confirmation of full Q performance on the real term, what was your assumption at the time of announcement of a third quarter results? It's JPY 14.4 billion. How big was the downside? I would like to confirm that. Also, on the related note, I think there is a negative impact from adjusting inventory. How it's affecting, I would also like to know. Also about the semiconductors.
In the past one or two years, there was a supply chain disruption, and the Japanese manufacturers had a very tough time, sourcing chips. How it affected your business, or what kinds of opportunities, you were able to find, if you are willing to share with us, please?
With regards to Q4, as I explained to you earlier, the special factors, excluding the special factors, JPY 87 billion. Q4, JPY 14.4 billion. In the past, we explained JPY 17 billion, in other words, JPY 3 billion or so downside. That, the downside.
One thing is a hard disk or a data center related decline because the recovery was delayed. Originally, in Q3, there was a major adjustment, and after that adjustment was completed, we thought things would recover in January to March. However, the recovery, although Q-on-Q was positive in terms of the sales, but because we levelized production anticipating the recovery, we were hit by this downside. Although sales recovered a little bit by the end of the day, it declined a little bit. Also bearings, external sales, particularly to the data centers, fan motors, faced difficulty. There was a decline there. That was another factor behind the downside.
Regarding the inventory, in almost all our products, at the end of March, we tried to normalize the inventory level for almost all products. Some products, like our bearings, we actually added the inventories, but overall, we adjusted inventory in a major way, which had a major impact. Customers are entering into adjustment period, and adjustment period has been prolonged. In Q1, we had a rather weak start. As Kainuma said, we must make sure to catch the right timing to increase speed. Regarding semiconductors, the global niche top is what we are saying. Analog semiconductors, we are to focus on the niche market and sourcing environment.
Because it's a niche market or a niche product, the participants in the niche market are rather few. Even if there are participants, the allocation may be difficult. We need to pick up each and every opportunity. We will keep proceeding on this path in order to ensure growth and profitability.
Any other questions?
The person on the aisle, please.
Thank you very much. I am Hirata from UBS Securities. I have three questions. First of all, this fiscal year is the former MITSUMI business outlook. You said that the OIS, the optical actuator, the first quarter will be slow, but for the full year, the sales and profit will grow. You have explained about your outlook. On the other hand, the smartphone market in North America, China is stagnant, and there's a pricing pressure and share competition. For the full year, you're anticipating or you're confident of increasing the operating income. What are the factors behind your confidence of increasing operating profit in this area?
The smartphone sales, I think basically it's difficult to say because the assumption that we have right now is that the sales will be the same as last year. That is the assumption that we're using. The customers are putting in efforts cultivating various markets. This, if there is a major difference in our assumption, maybe things will look differently. Our assumption is that in terms of the production and sales will be the same level as last year. In terms of pricing pressure, it is there is a lot of pressure. That said, it's not the type of business there that there are a lot of competitors. We will produce our products and offer high quality products to our customers.
If we can do this in a steady manner, I think we'll be able to ensure the profit. In terms of market share, I cannot comment about that.
It's not the case that we have a huge concern about our market share in our company. Thank you. The unit will be flat, but the operating income will increase. Is that your productivity improvement or the cost improvement on your side?
Well, the per unit... Well, maybe, I don't know whether it's man-hours or if you look at the full year, maybe it'll go up and... There's a lot of efforts, and I think this will serve as a contribution. Thank you. The second question is about the analog semiconductors. The B/B ratio is what? More than 1.3x . For instance, like, some kind of semiconductors enable the inventory has gone down. Can you elaborate a bit more? What are the applications that is recovering? Is this sustainable?
Can you explain about that?
I kind of talked about the IGBT or the medical. For instance, there's a lot of things that are still lacking. On the B/B ratio, two quarters before, that's the volume-based B/B ratio, it's gone down. That is due to the smartphone business. In the mobile devices, including smartphones. Their market share is high, so it's quite sensitive. That is why that's how the B/B ratio on term of the, in terms of volume, is shown. In terms of the Chinese smartphones, these, we have started to see some orders coming in, including this situation. We have started to see a recovery in the business.
In terms of how this sustainable is, this is, for instance, if smartphones, can they really sell or not?
I won't be able to say about, talk about that, but I don't know what's going to happen. But in any case, if the adjustment phase is prolonged, I think there is demand to replace the older models to the new models. I think basically it's just the timing of when this is going to happen.
Understood. Thank you. Lastly, within your midterm business plan, you have talked about M&A, saying that maybe this will be a contribution to your business. What are the areas that you're focusing on M&A? You have said that you want to strengthen the connector business. Connectors, would that be the main areas? It's a bit technical.
In this year's plan in terms of elimination, so it's about JPY 22 billion of the corporate elimination. Is this any preparation for the M&A or is it simply a buffer? Can you elaborate on that?
In terms of the M&A policy, it's unchanged. There's Eight Spears. We have these Eight Spears as products. We would like to have businesses that have a good synergy with these end products, and we are targeting those type of companies. Connectors will be included as our target. How this situation is going to transpire? Well, because we are the buyer, the seller, what will they be thinking at that time? It all depends on that. We will continue to look at opportunities and seek more opportunities.
For this fiscal year, excuse me, last fiscal year, including small ones, there were 4 M&As, we have been able to complete. If things go well, I think this year or maybe each year we'll be able to get, conduct M&A, in terms of the same number. We do have that capacity to do so. What was your other question? Within... Oh, yes, about the elimination. Well, in terms of the elimination, it does include some level of M&A costs, but is it any specific, is it linked to any specific target or any deal? Is it linked to any specific deals? No. No, that's not the case.
This year's, if the same level as last year, that is the type of cost that we can anticipate that's included, and there's other types of costs that we have to consider. This is a conservative number that we are showing you.
Thank you very much for your answer. Thank you.
Any other questions?