Minebea Mitsumi Inc U/Adr

Good afternoon. My name is Yoshida. Today, I would like to explain the consolidated finance results for the second quarter of the fiscal year ending March 2025. Next slide, please. Consolidated net sales for the second quarter of the fiscal year ending March 2025 was up 11.3% year-on-year and up 18.9% quarter-on-quarter to total 422.783 billion yen. Operating income was up 29.4% year-on-year and up 40.6% quarter-on-quarter to total ¥28.146 billion. Property for the period attributable to the owners of the parent was down 26.1% year-on-year and decreased by 13.1% quarter-on-quarter to total ¥12.112 billion. Net sales hit a record high for a quarter and the operating income was a record high for the second quarter. We estimate that foreign currency exchange rates have a quarter-on-quarter impact of plus 2.3 billion yen and year-on-year impact of plus 25.5 billion yen in the net sales. Quarter-on-quarter impact was plus 0.2 billion yen and year-on-year impact was plus 4.9 billion yen in operating income. This is a summary result for the first half. Net sales and operating income hit the first half record high. This is the quarterly trend in net sales, operating income, and operating margin. The operating margin for the second quarter was 6.7%. This was up 1.0 percentage point year on year and up 1.1 percentage points quarter on quarter. This is the difference between the forecast as of August and actual results for net sales and operating income by business segment for the second quarter. Net sales of PT exceeded the forecast for the ball bearings and pivot assemblies due to the recovery of the data center market and the robust sales for aircraft applications. MLS cells exceeded expectations for the motors, mainly HDD motors and motors for automotive applications, but sales of electronic devices fell short of the forecast. SE sales was above expectations, mainly in mechanical components and optical devices. AES was above the expectations in the U.S. market and other markets but below expectations for the Chinese market. Operating income for PT exceeded the forecast mainly thanks to an improvement in production volume of ball bearings. MLS was fairly in line with the expectations. SE fell short of expectations for mechanical components and optical devices. AES was below expectations. This slide shows the quarterly trends of the 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. Second quarter net sales increased 3.6% quarter on quarter to total 64.9 billion yen. Sales of ball bearings increased 3.7% quarter on quarter to total 44 billion yen. The monthly external shipment volume was up 8.8% quarter on quarter for an average of 243 million units. This was due to recovery in FAM motors mainly used in data centers. Sales of rod ends and fasteners totaling 14.4 billion yen and remained flat from the previous quarter. Sales of PMC increased 12% quarter on quarter to total 6.5 billion yen. Operating income for the quarter totaled 14.7 billion yen, and the operating margin was 22.6%. On a quarter-on-quarter basis, operating income increased 12.8%, and the operating margin rose 1.8 percentage points. This slide shows the quarterly trends for motor, lighting, and sensing segment. Net sales increased 7.3% quarter-on-quarter to a total of 106.4 billion yen. Looking at the results by product, sales of motors increased 9% quarter-on-quarter to reach ¥84.1 billion. This was mainly due to strong sales of motors for HDDs and solid sales of motors for non-automotive applications. Sales of electronic devices were down 1.4% from the previous quarter to total ¥11.2 billion. Sales of sensing devices were up 4.8% from the previous quarter to total ¥9.6 billion. Operating income came to ¥6.8 billion and the operating margin was 6.4%. On a quarter-on-quarter basis, operating income increased 33.1% and operating margin rose 1.2 percentage points. This slide shows the quarterly trends for semiconductors and electronics segment. Net sales increased 51.7% quarter-on-quarter to total ¥168.7 billion. This was mainly due to increase in sales of optical devices and semiconductors, which incorporated Minibia power semiconductor devices as a consolidated subsidiary, which was formerly Hitachi Power Semiconductor Devices as of May 2nd, 2024. Operating income totaled 9.3 billion yen while the operating margin was 5.5%. Operating income increased 96.7% and the operating margin increased 1.2 percentage points quarter on quarter.

This slide shows the quarterly trends for access solutions segment. Net sales increased 0.6% quarter on quarter to a total 82 billion yen. This was mainly due to increase in sales in Asian market, mainly for motorcycles and automotive devices. Operating income came to ¥3.5 billion, and the operating margin was 4.3%, up 17.8%, and 0.6%, respectively, quarter on quarter. 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 12.1 billion yen. Earnings per share was 30 yen. For the second quarter, foreign exchange losses amounted to 9.6 billion due to a revaluation of foreign currency-denominated claims on debts. Next, we have the quarterly inventory trend. At the end of the second quarter, inventory totaled 335.8 billion yen, which is 23.8 billion yen less than what it was three months ago. This is mainly due to foreign currency defects. 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 second quarter, net interest-bearing debt totaling ¥260.5 billion was up ¥51.9 billion from what it was at the end of the previous fiscal year due to many M&A-related expenses for Minibar parts, semiconductor devices, and other companies. Regarding the free cash flow, we expect ¥24.7 billion for the fiscal year ending March 2025 as the operating cash flow increases in the second half. We maintain the net sales and operating income forecast for the fiscal year ending March 2025. The details by segment are shown on page 17. Regarding the net sales, the PT segment has been revised up while the ES segment has been revised down. For operating income, the PT segment has been revised up and SE segment has been revised down. As for the second half, the revision for the operating income forex assumption is 145 yen to a dollar. This slide shows a forecast by business segment. This chart shows a difference between the revised forecast this time and the forecast as of August. This concludes my presentation. Thank you for listening.