Minebea Mitsumi Inc U/Adr

Thank you. My name is Yoshida. Today, I would first like to explain the consolidated financial results for the first quarter of the fiscal year ending March 31, 2024. Next page. The consolidated net sales for the first quarter of the fiscal year ending March 31, 2024 was up 16.5% year-on-year. and down 13.9% quarter-on-quarter to total of 292,370,000,000 Yen. Operating income were down 57.4% year-on-year and down 82.3% quarter-on-quarter to total 6,079,000,000 Yen. Profit for the period attributable to owners of a parent was down 65.9% year-on-year and down 88.9% quarter-on-quarter to a total 3,661,000,000 yen. Net sales hit a quarterly record high for the first quarter. We estimate that foreign currency translations have a quarter-on-quarter impact and was plus 4 billion yen in net sales and plus 0.7 billion yen operating income. year-on-year impact of plus 16.2 billion yen net sales and plus 2.1 billion yen operating income moving on to the next slide this is a quarterly trend in net sales operating income and operating margin the operating margin for the first quarter was 2.1 percent down was 2.1%, down 3.6 percentage points year-on-year, and down 8 percentage points quarter-on-quarter. Compared to the results for the fourth quarter of the fiscal year ended March 31, 2023, excluding special factors such as foreign exchange, foreign contracts, and other restructuring costs, operating income for the first quarter of the fiscal year ended March 31, 2024 decreased 57.8% quarter-on-quarter and the operating margin dropped 2.1 percentage points. Moving on to the next slide. 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. Net sales for precision technologies was generally on par with the forecast. MLS were below the projection due to a slowdown in sales of products for office automation data center and industrial machinery applications. SE enjoyed higher than projected sales mainly for optical devices. AS were generally on track with the forecast. Operating income for PT was lower than expected due to decline in profitability resulting from production adjustments for bearings. MLS was generally on track with the forecast. SE experienced lower than projected operating income mainly for optical devices. AS were generally on track with the forecast. Moving on to the next slide. Now let's take a look at the results by segment, starting with the PT segment. On the left is the graph indicating quarterly net sales trend and on the right is a graph with a bar chart quarterly operating income trends along with a line chart of operating margins. First quarter net sales decreased 2.4% quarter-on-quarter to a total of 47.9 billion yen. Sales of ball bearings decreased 3% quarter-on-quarter to total ¥34.3 billion. The monthly external shipment volume was down 9.2% quarter-on-quarter for an average of 187 million units. This is due to a slowdown in the markets, mainly the data center market. Sales of rod ends and fasteners, totaling ¥9.7 billion, were down 0.7% over the previous quarter. Sales of pivot assemblies decreased 1.8% quarter-on-quarter to total ¥4 billion. Operating income for the quarter totaled ¥8.2 billion and the operating margin was 17.1%. On a quarter-on-quarter basis, operating income decreased 5.4%, while the operating margin dropped 0.6 percentage points. Comparative results for the fourth quarter of the fiscal year ended March 31, 2023, excluding special factors such as foreign exchange forward contracts and other restructuring costs. Operating income for the first quarter of the fiscal year ended March 31, 2024, decreased 19.6% quarter-on-quarter, and operating margin dropped 3.7 percentage points. Looking at our results by product quarter on quarter, we see that operating income for ball bearings decreased, pivot assemblies increased, rod ends and fasteners remained unchanged. Moving on to the next slide.

Now let's look at the motor lighting and sensing segment. Net sales decreased 8.7% quarter on quarter to total 87.8 billion yen. Looking at the results by product, we see the sales of motors decreased 9.5% quarter on quarter to reach 66.4 billion yen. This is mainly due to declining demand for HDD and OA motors. Sales of electronic devices were up 4.7% from the previous quarter to total 12.6 billion yen. Sales of sensing device totaling 8.1 billion yen were down 13% from the previous quarter. Operating income came to 1.8 billion yen, and the operating margin was 2.1%. On a quarter-on-quarter basis, the operating margin increased 6.9 percentage points. Compared to the results for the fourth quarter of the fiscal year ending March 2023, excluding special factors such as foreign exchange, foreign contracts, and other restructuring costs, operating income for the first quarter of the fiscal year ending March 2024 decreased 23.2% quarter-on-quarter, and operating margin dropped 0.4 percentage points. Moving on to the next slide. Let's look at the performance for the semiconductor and electronics segment. Net sales decreased 33.9% quarter-and-quarter to total 81.7 billion yen. This was mainly due to decreased sales of optical devices. Operating income totaled 0.5 billion yen, while the operating margin was 0.6%. Operating income decreased 12%, and the operating margin increased 0.1 percentage points quarter on quarter. This is mainly due to the drop in operating income resulting from decreased sales of optical devices. Compared to the results for the fourth quarter of the fiscal year ending March 2023, excluding special factors such as foreign exchange forward contracts and other restructuring costs, operating income for the first quarter of fiscal year ending March 2024 decreased 89.4% quarter-on-quarter and the operating margin dropped 3.4 percentage points. Moving on to the next slide. Let's look at the access solutions segment. Net sales increased 6% quarter-on-quarter to total 73.6 billion yen. This was mainly due to the addition of the results of Minabea Access Solutions, which was integrated on January 27, 2023. Operating loss total 0.5 billion yen. The operating margin was minus 0.7%. Operating margin dropped 32% points quarter on quarter. compared to the results for the fourth quarter of fiscal year March 2023, excluding special factors such as board and exchange board contracts and other restructuring costs, operating margin for the first quarter of fiscal year March 2024 dropped 2.9 percentage points. Moving on 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 3.7 billion yen, earnings per share was nine yen. Next, we have the quarterly inventory trend. At the end of the first quarter, inventory totaled 303.3 billion yen, which is 40.2 billion yen more than it was three months ago. Moving on to the next slide. 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 a line chart indicating free cash flows. At the end of the first quarter, net interest-bearing debt totaling 193.7 billion yen was down 8 billion yen from what it was at the end of the previous fiscal year. Regarding the net interest-bearing debt forecast at the end of the year ending March 31, 2024, we expect our cash position to improve due to our high cash generating capacity. Moving on to the next slide. Although the first quarter results were in line with our guidance, we have decided to leave our initial forecast for the first half and full year unchanged in light of short-term market uncertainties and foreign exchange trends. The exchange rate is assumed to be 130 yen to the U.S. dollar. Moving on to the next slide. This slide shows a forecast by business segment. This is all from my presentation.