Minebea Mitsumi Inc U/Adr

This is Yoshida. Consolidated net sales for the first quarter of the fiscal year ended March 2022 was up 32.5% year-on-year and down 1.1% quarter-on-quarter to total 248,305,000,000 yen. Operating income totaled ¥19,628,000,000, which was 5.8 times higher than what it was in the first quarter of last year and up 83.6% quarter-on-quarter. Profit for the period attributable to owners of the parent increased 6.6-fold year-on-year and 2-fold quarter-on-quarter for a total of ¥14,659,000,000. We estimate that the foreign currency translation have a year-on-year impact of plus 6.9 billion yen in net sales and minus 0.2 billion yen in operating income. Quarter-on-quarter impact was plus 7.0 billion yen in net sales and plus 1.9 billion yen in operating income. We made a slight retrospective changes to last fiscal year's financial statements due to the PPA for ABLIC. Please note that figures on the following pages are the revised ones. Moving on to the next slide. This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the first quarter was 7.9%, up 6.1 percentage point year-on-year and up 3.6 percentage points quarter-on-quarter. Next slide, please. Here shows the difference between the forecast as of May and actual results for net sales and operating income by business segment for the first quarter. While net sales for the machined components business segment had a strong start, overall sales were generally in line with our forecast due to a slight decrease in sales to the automobile industry caused by a shortage of semiconductors. In the electronic devices and components business segments, sales for electronic devices were higher than forecasted. The Mitsumi business enjoyed higher-than-projected sales for mechanical components and analog semiconductors and optical devices. The Yushin business saw slightly higher-than-expected sales, mainly in the automobile market. for the machined components of business segment were almost on par with the forecast. The electronic devices and components of business enjoyed higher than expected operating income, due mainly to the recovery of expenses in the previous fiscal year. The Mitsumi business enjoyed higher than expected operating income as a result of increased sales. The Yushin business sold lower than expected operating income due mainly to the impact of one-time costs for the consolidation of Yushin's retirement benefit plans. Next slide, please. Now, let's take a look at results by segment, starting with Machined Components business segment. On the left is a graph indicating quarterly net sales trends, and on the right is a graph with a bar chart for quarterly operating income trends, along with a line chart for operating margins. First quarter net sales were almost on a par, with previous quota to total ¥44.1 billion. Ball-bearing sales increased 2.5% quota on quota to total ¥32.2 billion. The monthly external shipment volume was up 1.2% quota on quota for an average of 246 million units. The growing shipment volume of data center ball bearings continued to drive sales upward. Sales of aircraft bearings remained sluggish due to the stagnant market. Sales of rod ends fasteners totaling ¥6.4 billion were down 11.1% from the previous quarter. Although this has not yet led to an improvement in net sales, at this point, we are seeing bright signs in the aircraft sales. Sales of pivot assemblies remained at the same level quarter-on-quarter, to a total of 5.5 billion yen, operating income for the quarter totaled 10.9 billion yen, and the operating margin was 24.8%, which is higher than the pre-COVID level. On a quarter-on-quarter basis, operating income rose 23.5%, while the operating margin improved 4.8 percentage points. Looking at the results by product, we see that the profits for ball bearings, rod and fasteners, and pivot assemblies all increased quarter-on-quarter. Next slide, please. Now, let's look at the electronic devices and components segment. Net sales decreased 4.7% quarter-on-quarter to hit ¥90.4 billion. Looking at the results by product, we see that sales of motors increased 6.1% quarter-on-quarter to reach ¥62.4 billion. This is because robust sales in all types of motors, mainly in the HDD and in the automobile market. of electronic devices were down 29% from the previous quarter to a total of ¥17.3 billion. This decrease was due primarily to a loss of ¥4.1 billion incurred as a result of the transfer of some businesses beginning in the fiscal year ending in March 2022. hereafter referred to as impact of the business transfer. And for your reference, figures for the years up till fiscal year ended the March 2021 are based on the classification before the business segments were changed. Please note that the same applies to the rest of the presentation. Sales of a Samsung device totaling 8 billion yen were down 10.2% from the previous quarter. Operating income came to 7.9 billion yen. and the operating margin was 8.7% on the quarter-on-quarter basis operating income increased 39.2% while the operating margin rose 2.7 percentage points looking at the results by product although profit of sensing device decreased the profits for electronic devices increased due mainly to the recovery of expenses in the previous fiscal year while profit of motor was about the same as the previous quarter next slide please

So let's look at the performance for the Mitsumi business segment. Net sales decreased 3.3% quarter-and-quarter to total 76.8 billion yen. Although sales of mechanical components and analog semiconductors increased thanks to strong demand, overall sales for the segment declined due to the impact of the business transfer. Operating income totaled 5.1 billion yen, while the operating margin was 6.6%. On a quarter-and-quarter basis, operating income increased 77.7%, while the operating margin rose 3 percentage points. The primary factors behind these increases include a further increase in the profitability of analog semiconductors in addition to the one-time cost recorded in the previous quarter. You can see the operating income for this first quarter became negative, but this is due to the retrospective changes to the figures for each quarter of last fiscal year due to the finalization of PPA for ABLIC. Going on to the next slide. Finally, let's look at the Yuxing business segment. Net sales rose 14.3% quarter-on-quarter to hit 36.9 billion yen. Although there was a negative impact from production adjustment at some automotive OEMs due to the semiconductor shortage, overall sales for the segment were up due to the impact of the business transfer. While operating loss totaled 0.1 billion yen and operating margin was minus 0.2%, if the impact of the one-time cost for the consolidation of Yushin's retirement benefit plans were not factored in, operating income would be 0.4 billion yen and operating margin would be 1%. Going to the next slide. The bar graph here shows trends 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 14.7 billion yen. Earnings per share was 36.1 yen. Moving on to the next slide. In this slide, we show the quarterly inventory trend. At the end of the first quarter, inventory totaled 195.5 billion yen, which is 24.1 billion yen more than what it was three months ago. This is due primarily to the fact that we strategically accumulate the inventory to secure what was necessary for a currently anticipated sales increase. Going to the next slide. This graph contains a bar chart showing trends in net interest bearing debt, which is total interest bearing debt minus cash and cash equivalents, and a line chart indicating free cash flows. At the end of the first quarter, net interest bearing debt totaling 94.5 billion yen was up 10.2 billion yen from what it was at the end of the previous fiscal year. Moving on to the next slide. We made an upward revision to the full year forecast for the fiscal year ending March 31, 2022, which we announced in May. This latest revision, which was made only to the forecast for the first half, was prompted by higher-than-projected first quarter results and the expectations that demand for ball bearings, motors, analog semiconductors, etc. will continue in the second quarter. We have revised the forecast when it sells from 1 trillion yen to 1.05 trillion yen for operating income from 80 billion yen to 87 billion yen respectively. The exchange rate is assumed to be 110 yen to the US dollar for the second quarter. We have not changed assumptions for the second half. Going to the next slide. This slide shows the forecast by business segment.