Minebea Mitsumi Inc U/Adr

Hello, this is Yoshida. Today, I would like to first explain the consolidated financial results for the first quarter of fiscal year ending March 2025. Consolidated net sales for the first quarter of the fiscal year ending March 2025 was up 21.6% year on year and up 1.9% quarter on quarter to total 355.454 billion yen. Operating income increased three times year-on-year and down 1.6% quarter-and-quarter to total ¥20.025 billion. Profit for the period attributable to the owners of the parent increased by 3.4 times year-on-year and decreased by 24% quarter-on-quarter to total ¥13.936 billion. Net sales and operating income hit a first-quarter record high. We estimate that foreign currency exchange rates have a quarter-and-quarter impact of plus 11.5 billion yen on a year-on-year basis, impact of plus 33.6 billion yen in net sales, quarter-and-quarter impact was plus 2.6 billion yen, and year-on-year impact was plus 6.8 billion yen in operating income. Next slide, please. This is the quarterly trend in net sales, operating income, and operating margin. The operating margin for the first quarter was 5.6%, which was up 3.3% point year-on-year, and down 0.2% points quarter-on-quarter. Please go to the next slide. This 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. NIST sales of PT exceeded the forecast due to the recovery of the data center market from the bottom and the robust sales for aircraft applications. 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 and mechanical components. AS was above expectations in automotive devices. Operating income for PT exceeded the forecast mainly due to an improvement in production volume of bowl bearings. MLS exceeded the forecast thanks to mix improvement. SE exceeded the forecast partly due to the effect of increased sales. AS was generally in line with the forecast. Please go to the next slide. This slide shows the quarterly trends of the 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. First quarter net sales increased 7.8% quarter-on-quarter to total 62.7 billion yen. Sales of ball bearings increased 8.1% quarter-on-quarter to total 42.4 billion yen. The monthly external shipment volume was up 6.1% quarter-on-quarter for an average of 223 million units. This was due to recovery in the fan motors mainly used in the data centers. Sales of rod ends and fasteners totaling 14.4 billion yen were up 3.8% over the previous quarter. Sales of PMC increased 17.2% quarter-on-quarter to total 5.8 billion yen. Operating income for the quarter totaled 13 billion yen, and the operating margin was 20.8%. On a quarter-and-quarter basis, operating income increased 18.4%, and the operating margin rose 1.9 percentage points. Please go to the next slide. This slide shows the quarterly trends for mortar, lighting, and sensing segments. and sales increased 2.2% quarter-and-quarter to total ¥99.1 billion. Looking at the results by product, we see that sales of motors increased 2.6% quarter-on-quarter to reach 77.1 billion yen. This is mainly due to the strong sales of motors for HDDs and solid sales of motors for automotive applications. Sales of electronic devices were up 3.9% from the previous quarter to a total 11.4 billion yen. Sales of sensing devices were down 0.7% from the previous quarter to a total 9.1 billion yen. Operating income came to 5.1 billion yen and operating margin was 5.2%. On a quarter-and-a-quarter basis, operating income increased 42.1% and operating margin rose 1.5 percentage points. Please go to the next slide. This slide shows the quarterly trends for the semiconductors and electronic segment itself increased 1.6% quarter on quarter to total 111.2 billion yen. This was mainly due to the incorporation of mini bear power semiconductor devices. Formerly statue power semiconductor devices, which became a consolidated subsidiary as of May 2nd, 2024. Operating income total 4.7 billion yen while the operating margin was 4.3%. Operating income decreased 50.4% and the operating margin fell 4.4 percentage points quarter on quarter. Please go to the next slide.

This slide shows the quarterly trends for access solution segment. Net sales decreased 1.8% quarter on quarter to total 81.5 billion yen. This was mainly due to stagnant sales in Chinese market despite the increase in sales in automotive devices. Operating income came to 3.0 billion yen and the operating margin was 3.7%. Operating income increased 31.6% and the operating margin rose 1.0 percentage points quarter on quarter. Moving on to the next slide. The bar graph here shows the 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 13.9 billion yen, earnings per share was 34.5 yen. Moving on to the next slide. Next, we have the quarterly inventory trend. At the end of the first quarter, inventory totaled 359.6 billion yen, which is 64.7 billion yen more than what it was three months ago. This was mainly due to the strategic build-up of inventories needed to meet the expected increase in sales in the second quarter onward, as well as foreign currency effects. Moving on 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 251.2 billion yen was up 42.6 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 31, 2025, the company expects to make expenditures mainly in M&A related expenses for minibar, power, semiconductor devices and other companies. Moving on to the next slide. We made upward revision to the full year forecast for the fiscal year ending March 31, 2025. We now target net sales of 1,560,000,000 yen and operating income of 103,000,000,000 yen. The full year forecast factoring only the amount by which the first quarter results exceeded the forecast in terms of both sales and income. The details by segment are shown on page 14. Regarding the net sales, we revised upward in each business segment. For operating income, the PT and MLS segments have been revised upward. The AES segment remains unchanged and the SE segment has been revised downward. The exchange rate is assumed to be ¥140 to the US dollar. Moving on to the next slide. This slide shows the forecast by business segment. Moving on to the next slide. This chart shows the difference between the revised forecast at this time and the forecast as of May. This is all for my presentation.