Minebea Mitsumi Inc U/Adr

This is Yoshida. Today, I would like to explain the consolidated financial results for the fiscal year ended March 31st, 2024. Consolidated net sales for the fiscal year ended March 31st, 2024 totaled 1 trillion, 402.127 billion yen, while operating income reached 73.536 million yen. That is the decline by 24.6%. and profit for the period attributable to owners of the parent has declined by 26.1% to ¥54.035 billion. Net sales hit a record high and increased for 12 consecutive terms. Foreign currency exchange rates are estimated to have a year-over-year impact of ¥73.3 billion in net sales and ¥8.8 billion in operating income. We may cite retrospective changes to last fiscal year's and this fiscal year's financial statements due to the PPA for Honda Tsushin Kogyo and Minibia Connect and Minibia's access solutions. Please note that both the full year and the quarterly results for the fiscal year March 2024 are revised. The figures on the following pages are using revised figures. Consolidate net sales for the fourth quarter of the fiscal year March 2024 was up 2.7% year-on-year and down 8.5% quarter-on-quarter of 348.83 billion yen. Operating income was down 35.3% year-on-year and down 17.7% quarter-on-quarter to total 20.342 billion yen. Profit for the period attributable to the owners of the parent decreased by 39.2% year-on-year and increased by 20.5% quarter-on-quarter to total 18.327 billion yen. We estimate that foreign currency transactions every year-on-year impact a plus 27.5 billion yen in net sales and plus 4.4 billion yen in operating income. Quarter-on-quarter impact was minus 3.2 billion yen in net sales and minus 1.1 billion yen in operating income. 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 the fiscal year ended March 2024 was 5.2%. This was down 2.3 percentage points year on year. This is the quarterly trend in net sales operating income and operating margin. The operating margin for the fourth quarter was 5.8%. This was down 3.5 percentage points year-on-year and down 0.7 percentage points quarter-on-quarter. On this slide, this is the difference between the forecast as of February and actual results for the net sales and operating income by business segment for the fourth quarter. Printed sales of PT exceeded the forecast due to steady sales for automotive and aircraft applications despite the slow recovery of the data center market. MLS sales exceeded expectations due to motors, mainly HDD motors and motors for automotive applications, but sales of electronic devices fell short of the forecast. SC sales was above expectations mainly in optical devices. AS was below expectations due to stagnant automobile production in China, Japan, and other countries. Operating income for PT was generally in line with the forecast partly due to improvement in the mix of products. MLS exceeded the forecast mainly for HCT motors and motors for automotive applications. SC exceeded the forecast partly due to the effect of increased sales. AS was lower than expected due to lower sales. Next is the results by segment starting with precision technology 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. From the fourth quarter of the fiscal year ending March 31, 2024, the subsegment name has been changed to Precision Mechanical Component from Pivot Assemblies. Going forward, we will call this PMC. In the fiscal year ended in March 2024, net sales were up 7.5% year-on-year to total ¥21.14 billion. Sales of ball bearings increased 1.7% year-on-year to reach ¥14.88 billion. The monthly average of bearing sales volume totaled 240 million units. This is a decrease of 9.6% year-on-year. Looking at the sales by applications, we see that sales of products for automotive applications increased while sales of those used for data centers and home electronics declined. Sales of rod ends and fasteners were up 28.4% year-on-year to a total of 45.2 billion yen. This is a record high level recovering steadily from the effects of the COVID-19 with fiscal year March 2022 as a bottom. Sales of PMC increased 10% year on year to total 17.5 billion yen. Operating income for the fiscal year March 2024 totaled 38 billion yen, putting the operating margin at 18%. We saw the operating income decrease 11.4% and the operating margin decline 3.8 percentage points year on year. Looking at the year on year results by product, operating income for rod ends and fasteners rose, while operating income for board bearings declined in PMC as well. With fiscal year ending March 2025, sales for board bearings for automotive will continue to be strong, and demand for data centers is expected to recover from the second half and sales will increase. In our aircraft-related business, including rod ends and fasteners, we expect aircraft production rates to exceed pre-COVID levels in the second half of the year, and we expect to achieve record results. For PMC, we also expect recovery of demand in this fiscal year following the third quarter of 2024. Next is a slide of the quarterly trends. Fourth quarter net sales increased 7.7% quarter-on-quarter to total 58.1 billion yen. Sales of ball bearings increased 2.9% quarter-on-quarter to total 39.2 billion yen. The monthly external shipment volume was down 4.1% quarter-and-quarter for an average of 210 million units. This was due to the slowdown in the market mainly for data centers, although the market recovery and content growth trend for automotive remained unchanged. Sales of wrought ends and fasteners totaling ¥13.9 billion were up 21.1% over the previous quarter. Sales of PMC increased 14.9% quarter-on-quarter to total ¥5 billion. Operating income for the quarter totaled ¥11 billion and the operating margin was 18.9%. On a quarter-on-quarter basis, operating income increased 12.2% and the operating margin rose 0.7 percentage points. Looking at the results by product quarter-on-quarter, we see the operating income for ball bearings, integral ends, fasteners, and PMC increased. Now, let's look at the motor, lighting, and sensing segment. The sales increased 0.8% quarter-on-quarter to a total of 369.4 billion yen. Looking at the results by product, we see that sales of motors increased 2.7% quarter-on-quarter to reach 280.2 billion yen. This is mainly due to solid sales, particularly of motors for automotive applications. Sales of electronic devices were down 4.4% from the previous quarter to total 49.3 billion yen. Sales of sensing devices totaling 35.7 billion yen were down 4.7% from the previous quarter. Operating income was 11.9 billion yen with the operating margin of 3.2%. Compared to the previous fiscal year, operating income was 12.9 times higher and the operating margin increased 2.9 percentage points. In the fiscal year ending March 31, 2025, we expect an increase in both sales and operating income due to steady sales of motors for automotive applications, recovery trend in motors for HDDs, and an improved product mix. For electronic devices, we expect a decrease in sales and increase in profit. For sensing devices, we expect an increase in sales and decrease in profit.

This slide shows the quarterly trends. Net sales increased 5.6% quarter-on-quarter to 97 billion yen. Looking at the results by product, sales of motors increased 8.1% quarter-on-quarter to reach 75.2 billion yen. This is mainly due to strong sales of motors for automotive applications and an increase in motors for HDDs. Sales of electronic devices were down 13.6% from the previous quarter to 10.9 billion yen. Sales of sensing devices were up 3% from the previous quarter to ¥9.2 billion. Operating income came to ¥3.6 billion, and the operating margin was 3.7%. On a quarter-on-quarter basis, operating income increased 27%. Operating margin dropped 0.6 percentage points. Let's look at the performance for semiconductors and electronics segment. In the end of March of 2024, net sales decreased 6.7% year-on-year to total 494.7 billion yen. This is due to lower sales in semiconductors and mechanical components, despite higher sales in optical devices. Operating income came to 35.5 billion yen, and the operating margin was 7.2%. These figures represent a 14.9% year-on-year decrease in operating income and 0.7 percentage points year-on-year decrease in the operating margin. The fiscal year ending March 2025 includes the results of Minebea power semiconductor devices, former Hitachi power semiconductor devices, which became a consolidated subsidiary as of May 2, 2024. This slide shows the quarterly trends. Net sales decreased 25.3% quarter on quarter to total 109.5 billion yen. This was due to decreased revenue caused by seasonality of optical devices and mechanical components, et cetera. Operating income totaled 9.5 billion yen, while the OP margin was 8.7%. Operating income decreased 25.5%, and the OP margin remained flat. Finally, let's look at the access solution segment. Net sales increased 65.4% year-on-year to total ¥322.1 billion in the fiscal year ended March 2024. This is due to a recovery in sales to the automotive industry and in vehicle devices in addition to the performance of Minebea Access Solutions, which became our consolidated subsidiary as of January 27, 2023. Operating income came to 10.6 billion yen, and the OP margin was 3.3%. These figures represent a 45.2% year-on-year decrease in operating income and a 6.6 percentage point year-on-year decrease in the operating margin. In the fiscal year ending March 2025, we expect an increase in sales and operating income due to impact of market recovery and business integration. This slide shows the quarterly trends of access solutions. Net sales decreased by 5.5%, a quarter on quarter, to a total of 83 billion yen. This was mainly due to temporary adjustments in automobile production in China, Japan, and others. Operating income came to 2.3 billion yen, and the OB margin was 2.7%. Operating income decreased 64.5%, and the OB margin fall 4.6 percentage points quarter on quarter. This was mainly due to a decrease in profits resulting from lower revenues. The bar graph here shows the trends in profit attributable to owners or parent, while the line graph charts changes in the profit for the period per share. The profit for a period was 54 billion yen, and earnings for the period per share was 133.1 yen. Likewise, the bar graph here shows trends in quarterly profit attributable to owners of the parent, while the line graph charts changes in the profit for the period per share. The profit for the period was ¥18.3 billion, and earnings per share was Next, we have quarterly inventory trend. At the end of the fourth quarter, inventory total 294.9 billion yen, which is 5.6 billion yen, less than what it was three months ago. This graph contains a bar chart showing trends in net interest-bearing debt. which is total interest-bearing debt minus cash and cash equivalents on the line charts indicating free cash flow. At the end of Q4, net interest-bearing debt totaling 208.6 billion yen was 6.9 billion yen from what it was at the end of the previous fiscal year. Although operating cash flow is expected to increase at the end of the fiscal year ending March 2025, The company expects to make expenditures, mainly M&A-related expenses for minibar power devices and the like. This is a summary of the forecast for the fiscal year ending March 2025. We expect to reach new record highs in both sales and operating income. Net sales are expected to increase in each segment to 1.5 trillion yen. due to improved inventory levels in the end market. Similarly, operating income is expected to increase due to the effect of increased sales and continued cost reduction activities in each segment, as well as an anticipated market recovery toward the second half of the year. The exchange rate is assumed to be 140 yen to US dollar. This slide shows the forecast by business segment. This is all for my part of the presentation.