Minebea Mitsumi Inc U/Adr

I would like to explain the consolidated financial results for the first quarter of the fiscal year ending March 2026. First, regarding numerical notation, figures were previously presented in units of millions or billions of yen. Starting from Q1 of the fiscal year ending March 2026, figures will be presented in units of billions of yen to provide a clearer overview of financial performance. The further details on this change can be found in the disclaimer on page 26. Consolidated net sales for the Q1 of FY March 2026 was up 3.2% year-on-year and down 2.1% quarter-on-quarter to total 366.9 billion yen. Averaging income 17.2% year-on-year and decreased by 35.8% year-on-year. A quarter-on-quarter total of ¥10.9 billion. Both net sales and operating income exceeded the budget. Quarterly net sales hit a record high. Due to the appreciation of yen, there were negative FX impact. To be more specific, negative 13.2 billion yen on net sales, Q1Q, and minus 11.8 billion yen year-on-year. Offering income also saw a negative impact of 1.8 billion yen quarter-on-quarter and 4 billion yen year-on-year. This shows a quarterly trend in net sales operating income and OP margin. The OP margin for the first quarter was 4.8%, down 0.5% point year-on-year and down 0.9% point quarter-on-quarter. This shows a difference between the forecast as of May and actual results for net sales and operating income by business segment for the first quarter. Net sales for PT exceeded the expectations due to strong performance in data center application and robust sales for automotive bearings. MLS exceeded expectation driven primarily by HDD motors and motor for automotive applications. SE significantly exceeded expectations mainly due to strong sales in mechanical components and semiconductors. AS exceeded expectations especially in access products and automotive devices. Off-return income for PT exceeded expectations, primarily due to the effect of increased sales. MLS was generally in line with expectations. SE significantly exceeded expectations, mainly due to strong performance in mechanical components and semiconductors. AS was above expectations. This slide shows the quarterly trend of precision technologies segment left graph shows quarterly sales trend, and right bar graph shows operating income, and line graph shows OP margin. First quarter net sales decreased 2.9% to total ¥61.8 billion. Sales of ball bearings were down 1.2% quarter-on-quarter to a total of 43.6 billion yen. The monthly external shipment volume increased 11.3% Q-on-Q for an average of 265 million units. Driven by strong growth in data center-related demand, external shipments volume hit a record high. Sales of rod end and fasteners totaling ¥15 billion were down 8.3% over the previous quarter. Sales of PMC decreased 1% quarter-on-quarter to total ¥6.2 billion. Averaging income for the quarter totaled ¥14 billion, and the averaging margin was 21.5%. On a quarter-on-quarter basis, averaging income remained nearly flat, while the averaging margin improved by 0.5 percentage points. Looking at the results by product, we saw an increase in averaging income for ball bearings. This slide shows a quarterly trend for motor, lighting, and sensing segment. Net sales totaled 105.1 billion yen, an increase of 3.8% Q1Q. Byproduct sales of motors amounted to 80.2 billion yen, which was in line with the previous quarter, including resonant device. devices due to the segment change. Sales of electronica devices, including smart products resulting from the segment change, reached ¥14.9 billion, an increase of 71.8%. From the previous quarter, sales of sensing devices totaled ¥8.4 billion, down 9.3% Q1Q. Average income came to ¥5.1 billion with an average margin of ¥4.8. a quarter-on-quarter operating income increased by 6.8% and operating margin rose by 0.1 percentage points.

This slide shows the quarterly trends in semiconductor and electronic segment. Net sales totaled ¥117.2 billion, which was a decrease of 3.6% compared to the previous quarter. This was mainly due to the decline in sales of optical devices and the impact of the segment change related to smart products, despite sales increasing for mechanical components. Operating income came to ¥2.3 billion operating margin of 1.9%. Compared to the previous quarter operating income decreased by 30.1% with operating margin falling by 0.7 percentage points. This slide shows the quarterly trends for the Axis Solutions segment. Net sales came to ¥78.9 billion, decreasing by 6.5% compared to the previous quarter. Operating income came to ¥2.7 billion, with operating margin of 3.4%. Compared to the previous quarter, operating income decreased by 48.1%, with operating margin falling by 2.8 percentage points. The bar graph here shows the transitions in profit attributable to owners or parent and the line graph shows the changes in earnings per share on quarterly basis. The profit for the quarter was 10.9 billion yen and earnings per share was 27.1 yen. Next is about the changes in inventory on quarterly basis. At the end of the first quarter, inventories came to ¥370.8 billion, which was an increase of ¥19.9 billion compared to three months ago. This was mainly due to the strategic build-up of inventories needed for the expected increase in sales from the second quarter onwards. On this slide, the bar graph is showing the transition in net interest bearing debt, which is total interest bearing debt minus cash and cash equivalents, and the line graph showing free cash flows. At the end of the first quarter, net interest bearing debt came to 252.7 billion yen, increasing by 11.3 billion yen compared to the end of March 2025. Regarding free cash flows for the fiscal year ending March 2026, we currently have not factored in any M&A related expenditures. The risk scenario for the fiscal year ending March 2026, initially announced in May, has been revised. And the base scenario remains unchanged. The exchange rate assumption is 140 into the dollar. This slide shows the forecast by business segment using the base scenario. And this slide shows the forecast by business segment using the risk scenario. This is all for my presentation.