Minebea Mitsumi Inc U/Adr

Good afternoon. This is Yoshida. Today, I would like to first explain the financial results overview for the fiscal year ended March 31st, 2025 and the forecast for the fiscal year ending March 31st, 2026. Consolidated net sales for the fiscal year ending March 31st, 2025 was up 8.6% year-on-year to total 1,522,703 million yen. Operating income was up 28.5% year-over-year to total Profit for the period attributable to owners of the parent was up 10% year-on-year to 59.457 billion yen. Net sales hit record highs and increased for 13 consecutive terms. Operating income includes one-time expenses of approximately 5 billion yen. Details will be explained later in the slides for each segment. Due to the depreciation of the yen, there was an increase of ¥72.7 billion in net sales and an increase of ¥10.5 billion in operating income from the previous year. The financial statements for the quarter ending March 2025 have been slightly retroactively adjusted to reflect the processing of the PPAs of Minabea Power Devices and SocioNext. Please note that the figures on the subsequent pages used the revised figures. Consolidated sales for the fourth quarter of fiscal year ending March 2035 was up 7.5% year-on-year and up 1.4% quarter-on-quarter to total 374.823 billion yen. Operating income was up 5.8% year-on-year and down 17.7% quarter-on-quarter to total 21.531 billion yen. Profit for the period attributable to owners of the parent decreased by 7.4% year-on-year and was down by 2.6% quarter-and-quarter to a total of 16.966 billion yen. Operating income for the fourth quarter includes a one-time charge of approximately 3 billion yen. In this fourth quarter, the continued depreciation of the yen had a positive foreign exchange impact, increasing net sales by 7.2 billion yen quarter-on-quarter and by 12.1 billion yen year-on-year. Operating profit also saw a positive impact of 1.4 billion yen quarter-on-quarter and 800 million year-on-year. This slide shows 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 ending March 2025 was 6.2%, up 1 percentage points year on year. The quarterly trend in net sales operating income and operating margin is shown here. The operating margin for the fourth quarter was 5.7%. This was down 0.1 percentage points year-on-year and down 1.4 percentage points quarter-on-quarter. This slide shows the difference between the forecast as of February and actual results for net sales and operating income by business segments for the fourth quarter. In sales, in the PT segment, it was higher than expected primarily due to steady growth in bearings for data centers and automobiles. In MLS, the sales were higher than expected due to steady growth of motors for HDDs and automobiles. In the SE segment, sales was higher than expected in optical devices, mechanical components, and semiconductors. Sales of AS segment was above the forecast mainly for automotive devices. With regard to the operating income, the PT segment was generally in line with the forecast. The MLS segment was impacted by new additional one-time charges. The SE segment was above the forecast due to the effect of increased revenues. The AS segment was generally in line with the forecast. Now, taking a look at the results by segment, first starting with the precision technology segment. On the left is a graph indicating yearly net sales trends and the right is a bar chart showing yearly operating income trends along with a line chart for operating margins. In the fiscal year ending March 2025, net sales were up 21% year-on-year to total 255.7 billion yen. Sales of ball bearings increased 15.5% year-on-year to reach 171.8 billion yen. The monthly average of bearing sales volume totaled 237 million units, an increase of 15.9% year-on-year. By application, sales of products for data centers increased strongly, which drove overall growth. Sales of rod ends and fasteners were up 30.9% year-on-year, to a total of 59.1 billion yen. Products for aircraft applications performed well. Sales of PMC increased 41.6% year-on-year to total 24.8 billion yen. Operating income for the fiscal year March 2025 totaled 55.7 billion yen, putting the operating margin at 21.8%. Operating income increased 46.4% and the operating margin increased 3.8 percentage points year-on-year. Looking at the results by product, operating income for all products including bearings, broad ends and fasteners, and PMC hit record high. For the fiscal year ending March 2026 in ball bearings, we expect volume growth for data centers due to continued data volume expansion and steady growth for automobiles due to continued content growth despite the sluggish automobile market. In our aircraft-related businesses, including rod ends and fasteners, we expect continued benefit from the ongoing recovery in aircraft production rates. For PMC, we expect sales to remain at the same level as the previous year. From this page onward, we are disclosing our plans for the fiscal year March 2026 for each segment and each management figure from two perspectives, base scenario and risk scenario. This will be explained later.

This slide shows quarterly trends of the PT segment. The third fourth net sales increased 8.8% quarter on quarter to total 66.8 billion yen. Sales of bearings increased 7% quarter on quarter. to total 44.2 billion yen. The monthly external shipment volume decreased 1.7 percent quarter-on-quarter to an average of 238 million units. Sales for data centers remained steady, but sales for office automation and other applications decreased. Sales of rod ends and fasteners totaling 16.3 billion yen, up 17.3 percent from the previous quarter. Sales of PMC increased 1.9 percent Now, let's look at the motor lighting and sensing segment. Net sales increased 10.4% quarter-on-quarter to total 407.7 billion yen. Looking at the results by product, we see the sales of motors increased 15.7% quarter-on-quarter to reach 322.4 billion yen. This is mainly due to solid sales, particularly of motors for HEDs, automotive and non-automotive applications. sales of electronic devices were down 16.6% from the previous quarter to total 41.1 billion yen. Sales of sensing device totaling 36.9 billion yen were up 3.1% from the previous quarter. Operating income was 23 billion yen with the operating margin of 5.6%. Operating income was up 93.7% a year, and the operating margin increased 2.4 percentage points. This includes a special factor of 800 million yen, mainly the appropriation of a loss caused by disposition of unnecessary inventory, excluding which would be 23.8 billion. In the fiscal year ending March 2026, we expect content growth for motors and automotive applications. Even though the market is sluggish, we also expect continued solid growth for non-automotive applications for electronic devices and sensing devices. We expect an increase in profit. This slide shows quarterly trends for the MLS segment. Sales were 101.3 billion yen unchanged from the previous quarter. Looking at the results by product, the motor sales were 80.5 billion yen and changed from the previous quarter. Sales of electronic devices were down 12.2% from the previous quarter to a total of 8.7 billion yen. Sales of sensing devices were up 4.1% from the previous quarter to a total of 9.3 billion yen. Offering income came to 4.8 billion yen, and the operating margin was 4.7%. On a quarter-on-quarter basis, operating income decreased 23.4%, and operating margin fell 1.5 percentage points. and the special factor of ¥800 million is appropriated in Q4. Let's look at the performance of semiconductors and electronic segment. Net sales increased 6.7% year-on-year to total ¥527.6 billion in the fiscal year ended March 2025. This is due to the addition of the results of Minibar power devices, formerly Hitachi power devices, which became a consolidated subsidiary on May 2nd, 2024, in semiconductors, despite the lower sales in mechanical components. Operating income came to 22 billion yen, and the operating margin was 4.2%. These figures represent a 38.1% year-on-year decrease in operating income, and the three percentage points decrease year-on-year in the operating margin. This includes a special factor of 3 billion yen, mainly the appropriation of expenses related to disposition of PPA, of mini-bear power devices, and social next, as well as expenses for exiting the Chinese camera actuator market. For the fiscal year ending March 2026, we will continue to work on improving the profitability of our sub-core businesses that are optical devices and mechanical components. This slide shows the quarterly trends for the SE segment. Net sales decreased 3.6% quarter-on-quarter to a total of 121.6 billion yen. This was mainly due to a decrease in revenue of optical devices. Operating income totaled 3.2 While the operating margin was 2.6%, operating income decreased 47.5%, and OB margin decreased 2.3 percentage points quarter-on-quarter. We revised the quarterly profit for FY March 2025, retroactively reflecting disposition of PPA of MiniBea Power Devices and Socio Next. Finally, let's look at the access solutions and segment. Net sales increased 1.9% year-on-year to total 328.1 billion yen in the fiscal year ended March 2025. This is due to a recovery in sales of the automotive devices despite a slowdown in automotive market, especially in Chinese market. Operating income came to 15.9 billion yen, and the operating margin was 4.9%. These figures represent 49.9% year-on-year increase in operating income and 1.6 percentage points year-on-year increase in the operating margin. This includes a special factor of 1.2 billion yen, mainly due to restructuring of some sites and expenses related to exiting from Russia, excluding of which it would be 17.1 billion. In the fiscal year ending March 2026, although the auto market is expected to remain sluggish, we expect an increase in sales and operating income. This slide shows quarterly trends for the access solution segment. Net sales increased 5.3% quarter-on-quarter to a total of 84.4 billion yen. Operating income came to 5.3 billion yen, and the operating margin was 6.2%. Operating income increased 27.1%, and the operating margin rose one percentage point quarter-on-quarter. The bar graph here shows trends in full-year profit attributable to owners of the parent. The wide-line graph charts changes in the profit for the period per share. The profit for the period was 59.15 billion yen. Earnings for the period per share was 147.6 yen. The bar graph here shows the trends in quarterly profit attributable to the owners of the parent, while the line graph charts changes in the profit for the period per share. The profit for the period was 17 billion yen. Earnings per share was 42.3 yen. Next is the quarterly inventory trend. At the end of Q4, inventory totaled 350.9 billion yen, down 57.8 billion yen compared with 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, and the line chart indicating free cash flows. At the end of the quarter, net interest-bearing debt totaling 241.5 billion yen was up 32.8 billion yen from what it was at the end of the previous fiscal year. This mainly includes expenditures related to acquisition of Minibia Power Devices Company. As for pre-cash flow for the fiscal year ending March 26, we, a country, do not anticipate any M&A-related expenditures. This is a summary of our forecast for the current fiscal year ending March 2026. In consideration of the impact of the U.S. reciprocal tariffs on our business, we disclose the base scenario and the risk scenario for the current fiscal year. We assume an exchange rate of 140 yen to a dollar. Next, allow me to explain the changes in the segments beginning with fiscal year ending March 2026. We will make the following two main changes. First, smart products which previously belonged to the SE segment will be transferred to MLS segment as an inner segment changes. Second, as a transfer between sub-segments within the MLS segment, resonant devices included in electronic devices in this financial report will be transferred to the motors segment. This slide shows the forecast by business segment based upon the base scenario. This slide shows the forecast by business segment based upon the risk scenario. This concludes my explanation.