Minebea Mitsumi Inc U/Adr

So this is Yoshida speaking. Today, I would first like to explain the consolidated financial results for the second quarter of the fiscal year ending March 31st, 2024. Consolidated net sales for the second quarter of fiscal year ending March 31st, 2024 was up 15.1% year over year and up 29.9% quarter on quarter to total 379.747 billion yen. Operating income was down 19.8% year-on-year and 3.5 times quarter-on-quarter to total 21.11 billion yen. Property for the period attributable to the owners of the parent was down 20.3% year-on-year and 4.4 times quarter-on-quarter to total 15.958 billion yen. Net sales hit a quarterly record high. We estimate that foreign currency translations have a year-on-year impact of ¥16.4 billion in net sales and ¥15.7 billion in operating income. Quarter-on-quarter impact was ¥2.6 billion in net sales and ¥1.8 billion in operating income. We made slight retrospective changes to last fiscal year's and this year's first quarter financial statements due to the PPA for Honda Tsushin Kogyo. Please note that the figures on the following pages are revised figures. Please go to the next slide. This is the summary result for the first half. Net sales hit the first half record highs as well. This is for the quarterly trend in net sales operating income and operating margin. The operating margin for the second quarter was 5.6%. This was 2.4 percentage points down year-on-year and up 3.5 percentage points quarter-on-quarter. We show the difference between the forecast as of August and actual results for net sales and operating income by business segment for the second quarter. As for the net sales of PT, although sales of data centers remained sluggish, they were borderly in line with expectations due to solid growth in aircraft applications. MLS sales were down below expectations due to slowdowns in data center and non-vehicle motors. SE exceeded expectations mainly in mechanical components and optical devices. AS sales exceeded expectations due to the recovery in automobile production. Operating income for PT was lower than expected due to a deterioration product mix resulting from a slowdown in data center applications. MLS was a result of a mix depending on the product, but mainly due to the strong sales of motors for automotive applications, it exceeded expectations. SE exceeded expectations partly for mechanical components. AS was below expectations due to factors such as some price corrections. So this is for the results of the segment and starting with the position technologies. On the left is a graph indicating quarterly net sales trends and on the right is a graph with a bar chart of quarterly operating income trends along with a line chart for operating margins. Second quarter net sales increased 7.4% quarter on quarter to total 51.4 billion yen. Sales of board bearings increased 8.2% quarter on quarter to total 37.1 billion yen. The monthly external shipment volume was up 7.1% quarter on quarter on an average of 200 million units. So this is due to the more automated related sales was recovering and to the contest growth it growed. And for the data center, although it was weak, we are seeing the bottoming out trend. Sales of rod and fasteners totaling 10.1 billion yen were up 4.4% over the previous quarter. Sales of Pivot Assembly up 7.3% quarter-on-quarter to total ¥4.2 billion. Operating income for the quarter totaled ¥9 billion and the operating margin was 17.6%. On a quarter-on-quarter basis, operating income increased 10.1%, while the operating margin improved 0.5 percentage points. Looking at the results by quarter-on-quarter, operating income for ball bearings and approval assemblies increased.

Now let's look at the MLS segment, quarterly trend. Net sales increased 5.6% quarter-on-quarter to total ¥87.8 billion. Looking at the results by product, we see that the sales of mortars increased 4.1% quarter-on-quarter to reach ¥69.1 billion. This is mainly due to the solid sales. for automotive applications. Sales of electronic devices were up 3.7% from the previous quarter to a total 13.1 billion yen. Sales of sensing devices totaling 9.5 billion yen were up 18.1% from the previous quarter. Operating income came to 3.6 billion yen, and the operating margin was 3.9%. On a quarter-on-quarter basis, operating income has doubled. The operating margin increased Let's look at the performance for the semiconductor and electronics business segment. The net sales increased 92.2% quarter-on-quarter to a total of 157.1 billion yen. This is mainly due to higher sales from optical devices, mechanical components, and semiconductors. Operating income totaled 12.6 billion yen, while the operating margin was 8%. Operating income increased 25.1 times, and the operating margin increased 7.4 percentage points quarter on quarter. This increase was mainly due to higher profit brought by increased sales of optical devices, mechanical components, and semiconductors. Finally, let's look at the AS segment. Net sales increased 5.3% quarter-on-quarter to a total of 77.6 billion yen. This was mainly due to better sales to automotive OEMs as their production rates Recovered following the resolution of the semiconductor shortage. While operating profit total 1.2 billion yen, the operating margin was 1.5%. Operating margin increased 2.2 percentage points quarter-on-quarter. The bar graph here shows a trend in profit attributable to the owners of the parent. The wider line graph chart changes in the profit for the period per share. The profit for the period was 16 billion yen. Earnings per share was 39.2 Next is the quarterly inventory trend. At the end of the first quarter, inventory totaled 302.8 billion yen, which is 500 million yen down than what it was three months ago. This graph contains a bar chart showing a trend in net interest-bearing debt, which is total interest-bearing debt minus cash. and cash equivalents and the line chart indicating free cash flow. At the end of the first half, net interest-bearing debt totaling 234.7 billion yen was up 33 billion yen from what it was at the end of the previous fiscal year. Regarding the net interest-bearing debt forecast for the end of the fiscal year, we expect our cash position to improve due to our higher cash generating capacity. The full year forecast for March 2024 has been revised down from ¥1,450 billion to ¥1,400 billion in net sales and from ¥95 billion to ¥77 billion in operating income. Sales forecasts for PT and MLS have been revised down due to a slowdown in the market for data centers and other applications. SE sales were also revised down in light of slowdowns in analog Semiconductors, optical devices, and precision components. Operating incomes for PT and MLS were revised down in line with lower sales, while SE was revised down in line with lower sales in optical devices and analog semiconductors. AS forecast remains unchanged. The exchange rate assumption is 140 yen to a dollar, US dollar. This slide shows the forecast by business segment. This chart shows the differences between the revised forecast and the original forecast.