Minebea Mitsumi Inc U/Adr

Good afternoon, I'm Yoshida.

Today I would like to explain the consolidated financial results for the third quarter of the fiscal year ending March 2025. Consolidated net sales for the third quarter of the fiscal year ending March 2025 were down 3% year-on-year and down 12.6% quarter-on-quarter to a total of 369,643,000 yen. Operating income was up 7% year-on-year and down 6.1% quarter-on-quarter to a total of 26,423,000 yen. Profit for the period attributable to the owners of the parent was up 15.7% and increased by 45.4% quarter on quarter to total ¥17,606,000,000. Although net sales declined year-on-year, operating income increased mainly due to growth in high-margin business. We estimate that the exchange rates have a quarter-on-quarter impact of minus 9.3 billion yen and year-on-year impact of plus 1.5 billion yen in net sales. A quarter-on-quarter impact was minus 3.8 billion yen. And year-on-year impact was minus ¥2 billion in operating income. This is for quarterly trend in net sales operating income and operating margin. The operating margin for the third quarter was 7.1%, up 0.6 percentage points year-on-year, and up 0.4 percentage points quarter-on-quarter. Here shows the difference between the forecast as of November and actual results for net sales and operating income by business segment for the third quarter. Regarding sales in PT products for aircraft and special bearings for medical devices sold by our Western subsidiaries fell short of the expectations. In MLS cells, motor for HDDs were strong, and motors for automotive and non-automotive were generally in line with expectations, but sales of electronic devices fell short of the forecast. were lower than expected in optical devices, mainly affected by the slowdown in the smartphone market. AS sales was below the forecast due to the impact of the slowdown in the Chinese and European markets. With regards to the operating income, PT and MLS were generally in line with the forecast. SE was below the forecast, mainly due to the decrease in optical devices. AS fell slightly short of the forecast. This slide shows a quarterly trend of 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. Third quarter net sales decreased 5.5% quarter-on-quarter to total ¥61.4 billion. Sales of ball bearings decreased 6.1% quarter-on-quarter to total ¥41.3 billion. The monthly external shipment volume almost remained flat from the previous quarter for an average of 243 million units. This is mainly due to flat growth in automotive and data center businesses. Sales of broad-end fasteners totaling ¥13.9 billion were down 3.4% from the previous quarter. Sales of PMC decreased 5.6% quarter-on-quarter to total ¥6.2 billion. Operating income for the quarter totaled ¥14 billion and the operating margin was 22.8%. On a quarter-on-quarter basis, operating income decreased by 4.9% and the operating margin rose by 0.2 percentage points. This slide shows the quarterly trends of mortar, lighting, and sensing segment. Net sales decreased 5.1% quarter-and-quarter to total 101 billion yen. Looking at the results by product, we see that the sales of mortars decreased 4.1% quarter-and-quarter and resulted in 80.6 billion yen. Sales of HDD and automotive applications I remain the flat, although it is within the expected range, known automotive applications, many for PCs were sluggish. Sales of electronic devices were down 11.7% from the previous quarter to a total of 9.9 billion yen. Sales of sensing devices were down 7% from the previous quarter to a total of 8.9 billion yen. Offering income came to 6.3 billion Yen, and the operating margin was 6.3%. On a quarter-on-quarter basis, operating income decreased 6.9%, and operating margin fell 0.1 percentage points.

This slide shows the quarterly trends for the semiconductors and electronics segment. Net sales decreased 25.2% quarter-on-quarter to a total of 126.1 billion yen. This was mainly due to the decrease in sales of optical devices and mechanical components. Operating income totaled 6.4 billion yen, while the operating margin was 5.1%. Operating income decreased 31.3%, and the operating margin decreased by 0.4 percentage points quarter-on-quarter. This slide shows the quarterly trends for the access solutions segment. Net sales decreased 2.2 percent quarter-on-quarter to a total of 80.2 billion yen. Operating income came to 4.1 billion yen and operating margin was 5.2 percent. Operating income increased 17 percent and the operating margin rose 0.9 percentage point quarter-on-quarter. The bar graph here shows trends in profit attributable to owners of the parent, while the line graph shows changes in the profit for the period per share. The profit for the period was 17.6 billion yen. Earnings per share was 43.8 yen. For the third quarter, foreign exchange losses amounted to 1.8 billion yen due to revaluation of foreign currency denominated receivables and payables. Next is the quarterly inventory trend. At the end of the third quarter, inventory totaled 356.6 billion yen, which increased by 20.8 billion yen from three months ago. This is mainly due to the impact of foreign exchange rates. 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 third quarter, net interest-bearing debt totaled ¥244.5 billion and was up ¥35.9 billion from the end of the previous fiscal year. This is due to mainly M&A related expenses for minivare powered semiconductor devices and other companies. Regarding the free cash flow, we expect 18.1 billion yen for the fiscal year March 2025 as operating cash flow increase in the fourth quarter. We've revised down the net sales and operating income forecast for the fiscal year March 2025 from a November forecast. Operating income forecast includes a one-time charge of approximately 4 billion yen due to the PPA of Inabeya Power Semiconductor Devices and the medical device that was transferred from SocioNext, and loss on sales resulting from withdrawal from the Western business. The details by segment are shown on page 13. Regarding the net sales, all segments have been revised downwards. For operating income, PT and MLS segments are unchanged, whereas the SE and AS segments have been revised downwards. The exchange rate is assumed to be 150 yen to the U.S. dollar. This slide shows the forecast by business segment. This chart shows the difference between the revised forecast this time and the forecast as of November. This is all for my presentation.