Minebea Mitsumi Inc U/Adr

So, my name is Yoshida. Today, I would like to express, like, explain the consolidated financial results for the fiscal year ended March 31st, 2023. Consolidated net sales for the fiscal year ended March 23rd totaled 1 trillion 292.203 billion yen, while operating income reached 101.522 billion yen, and profit for the period attributable to owners of the parent hit 77.010 billion yen. This is a year-on-year increase of 15%, 10.2%, 11.7% respectively for net sales, operating income, and profit for the period out to be built to owners of the parent, et cetera. And for all the 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 ¥157.9 billion in net sales and ¥29.1 billion in operating income. Operating income includes ¥14.5 billion of special factors. More details of the special factors will be provided later. Moving on to the next slide. Consolidated 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 339.718 billion yen. Operating income was up 58.9% year on year and up 30.3% quarter-on-quarter to reach ¥34.441 billion. Profit for the period attributable to owners over the parent increased by 2.1 times year-on-year and increased by 2.5 times quarter-on-quarter at ¥33.068 billion. Net sales hit a fourth-quarter record high and operating income hit a quarterly record high as well. We estimate that foreign currency translations have a year-on-year impact of plus 33.6 billion yen in net sales and plus 4.1 billion yen in operating income. Quarter-on-quarter impact was minus 17.8 billion yen in net sales and minus 4.8 billion yen in operating income. Operating income includes 20 billion yen 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 on 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 102 billion yen 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 40.4 billion yen and one-time cost of structural reform costs minus 17.2 billion yen and forex forward contract minus 8.7 billion yen. Excluding these special factors, we estimate that the downside of the business was 15 billion yen. It means that operating income on the business basis, including excluding these special factors, was 87 billion yen. Moving on to the next slide. This is for the quarterly trend in net sales, corporate 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, enhance corporate value. The machine components electronic device, it will be PT. Electronic devices and components will be motor lighting and sensing, MLS. Mitsumi business will be semiconductors and electronics, SC. Leasing 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 the 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, and sales for the using 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 a forecast due to the special factors and declined revenue associated with the slowdown in the optical device sales. The Yushin 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 segments, 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 ended March 2023, net sales were up 11.2% year-on-year to total 197.3 billion yen. Sales of board bearings increased 14.2% year-on-year to reach 146.2 billion yen. The monthly average of bearing cells 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 rodents and fasteners were up 30.4% year-over-year to a total of 35.2 billion yen. It is recovering steadily from the effects of COVID-19. Sales of pivot assemblies decreased 29.3% year-on-year to a total of 15.9 billion yen. Operating income for the fiscal year ended March 2023 totaled 43 billion yen, 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 road-transfersionists rose, while operating income for pivot assemblies and board-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 1% year-on-year, and operating margin would have decreased 2.9% year-on-year. For the fiscal year ending March 31, 2024, we expect sales of board bearings to increase due to gradual recovery for demand for automobiles, and demand for service is expected to recover from the second half of the fiscal year. In our aircraft-related businesses, including routers 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 49.1 billion yen. Sales of ball bearings decreased 6% quarter-on-quarter to total 35.3 billion yen. 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 rodents and fasteners totaling 9.8 billion yen were up 2% over the previous quarter. Sales increased with the recovery of aircraft production. Sales of pivot assemblies increased 21.5% quarter-on-quarter to total 4 billion yen. Operating income for the quarter totaled 8.7 billion yen, and the operating margin was 17.7%. On a quarter-on-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 people assemblies decreased quarter-in-quarter, while operating income for rod sands and fasteners was increased compared to the previous quarter. These include the impact of the 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 and sensing segment. In the fiscal year ended March 2023, net sales were down 1.3% year-on-year to total 366.3 billion yen. Looking at the results by product, we see that the sales of motor Inc U-Adr Inc U-Adr to 51.6 billion. Net sales of sensing devices totaled 37.5 billion yen, increasing 5.9% year-on-year. Operating income was 0.9 billion yen, with DOP 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 will decline. all declined. If the impact of special factors such as FX forward contracts, structural reforms costs 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 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 as sales and operating income Sensing devices will be almost flat. Next slide, please. This slide shows a quarterly trend. Net sales increased 6.1% quarter-on-quarter to total 96.2 billion yen. Looking at the results by product, we see that sales of motors increased 12.2% quarter-on-quarter to reach 73.4 billion yen. 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 a total of 12 billion yen. This is due to the seasonality of LED backlight models used by our key customers. Sales of sensing devices, a total of 9.3 billion yen, were down 5.8% from the previous quarter. Operating income came to 4.6 billion yen, and the operating margin was minus 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, the renamed semiconductors and electronics segment. Net sales increased at 23.6% year-on-year to total 530.5 billion yen. in March 2023. This is mainly due to increased sales of optical devices. Operating income came to 42.7 billion yen, and the operating margin was 8.1%. These figures represent 2.1% year-on-year increase in operating income and 1.7 percentage point a year-on-year decrease in the operating margin. Operating income for optical devices, mechanical components, and power supplies increased, while other businesses saw a decline. If the impact of special factors such as negative goodwill for Sumico Tech, 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 0.8 percentage points year-on-year in the fiscal year ending March 2024. Though sales and operating income in optical devices 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 123.6 billion yen. This was due to decreased revenues accompanied by seasonality of optical devices and mechanical components, etc. Operating income totaled 0.6 billion yen. 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 of optical devices and mechanical components as well as the special factors noted earlier. Finally, let's look at the Yuxin Business, renamed Access Solutions segment. Net sales increased 33.7% year-on-year to total ¥194.7 billion in March 2023. This is due to a recovery in sales to the automotive industry in addition to the performance of Minibare Access Solutions, formerly Honda Lock, which became our consolidated subsidiary as January 27th. Operating income came to 22.3 billion yen, and the operating margin was 11.5%. These figures represent 30.5 times 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 Look were excluded, operating income for March 2023 would be 2.8 times 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 a quarterly trend. Net sales increased 50.1% quarter-on-quarter to a total of 69.5 billion yen. This was due to the addition of Binibaya Access Solutions results, as noted earlier. While our operating income totaled 21.7 billion yen and the operating margin was 31.3%, operating income increased 83.9 times. 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 full year 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 77 billion yen. Earnings for the period per share was 187.6. Yen. 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 33.1 billion yen. Earnings per share was 80.6 yen. 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 263.1 billion yen, which is 12.8 billion yen 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 the 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 201.7 billion yen was up 114.7 billion yen from the end of the previous fiscal year. This was mainly due to the purchase of the new Tokyo headquarters related expenditure. and the expenditure associated with MNAs and increase in working capital due to higher inventories, etc. 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. We expect to achieve new record highs in sales. Although net sales are expected to decrease in mechanical components, growth in bearings, motors and access products, and business integration of minibar access solutions will make up for it, with overall net sales expected to increase to ¥1,450 billion. Operating income are expected to increase in precision technologies, motor, lighting and 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 87 billion yen for the fiscal year ended March 2023 as noted earlier. The exchange rate is assumed to be 130 yen to a U.S. dollar. Next page, please. This slide shows the forecast by business segment. This is the end of my presentation.