Minebea Mitsumi Inc U/Adr

Hello, this is Yoshida speaking. Today, I would like to explain the consolidated financial results for the second quarter of the fiscal year ending March 2026. Consolidated net sales for the second quarter of the fiscal year ending March 2026 was down 2.7% year-on-year and up 12.1% quarter-on-quarter to total 411.4 billion yen. Operating income was down 3.3% year-on-year and up 54.6% quarter-on-quarter to total 27 billion yen. Profit for the period attributable to owners of the parent was up 48.4% year-on-year and increased by 62.5% quarter-on-quarter to total 17.7 billion yen. Both net sales and operating income exceeded the plan. We estimate that foreign currency exchange rates have a quarter-on-quarter impact of plus 3.8 billion yen and year-on-year impact of minus 12.7 billion yen in net sales. Quarter-on-quarter impact was minus 0.6 billion yen and year-on-year impact was minus 5.3 billion yen in operating income. This is a summary result for the first half. Net sales hit for the first half record high, albeit by a small margin. This is for the quarterly trend in net sales, operating income, and operating margin. The operating margin for the second quarter was 6.6%. This represents a flat year-on-year change and up 1.8 percentage points quarter-on-quarter. This shows the difference between the forecast as of August and actual results for net sales and operating income by business segment for the second quarter. For net sales, PT exceeded the forecast, primarily due to strong performance in bearings for data centers and automobiles. MLS sales remained strong, primarily driven by HDD motors and data center FAM motors. In SE sales, semiconductors were strong, but optical device sales fell short of expectations due to factors such as export restrictions on rare earths. AES was above expectations primarily driven by automotive devices. Operating income for PT exceeded the forecast partly due to the effect of increased revenue. MLS was fairly in line with expectations. SE was largely in line with expectations as delays in optical devices were offset by semiconductor performance. AES was also largely as expected. 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. Second quarter net sales increased by 5.5% quarter-on-quarter to total 68.4 billion yen. Sales of ball bearings increased 5.5% quarter-on-quarter to total 46 billion yen. The monthly external shipment volume was up 4.6% quarter-and-quarter for an average of 277 million units. Driven by significant growth in sales to data centers, external shipment volume reached a record high. Sales of rod ends and fasteners increased 5.3% quarter-and-quarter to a total of 15.8 billion yen. Sales of PMC increased 6.9% quarter-on-quarter to total 6.6 billion yen. Operating income for the quarter totaled 14.7 billion yen and the operating margin was 21.5%. On a quarter-on-quarter basis, operating income increased 0.8 billion yen and remained almost flat from the previous quarter. This slide shows the quarterly trends for the motor, lighting, and sensing segment. Net sales increased 7.6% quarter on quarter to total 113.1 billion yen. Looking at the results by product, we see that sales of motors increased 5.1% quarter on quarter to reach 84.3 billion yen. Sales of electronic devices were up 15.4% from the previous quarter to total 17.2 billion yen. Sales of sensing devices were up 13.5% from the previous quarter to a total of 9.5 billion yen. Operating income came to 7.3 billion yen and the operating margin was 6.5%. On a quarter-on-quarter basis, operating income increased 2.2 billion yen and operating margin rose 1.7 percentage points. This slide shows the quarterly trends for semiconductors and electronic segment. Net sales increased 28% quarter-on-quarter to a total of 150 billion yen. Operating income totaled 7.4 billion yen, while the operating margin was 4.9%. Operating income increased 5.1 billion yen, and the operating margin increased 3 percentage points quarter-on-quarter. This slide shows the quarterly trends for Access Solutions segment. Net sales totaled 78.9 billion yen and remained almost flat from the previous quarter. Operating income came to 4.4 billion yen and operating margin was 5.6%. Operating income increased 1.7 billion yen and the operating margin rose 2.2 percentage points quarter on quarter.

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 17.7 billion yen. Earnings per share was 44.07 yen. Next, we have the quarterly inventory trend. At the end of the second quarter, inventory totaled 402.1 billion yen, which is 31.3 billion yen, more than what it was three months ago. This is primarily due to the a strategic build-up of inventory necessary to meet the anticipated increase in sales expected in the latter half of the year and beyond. 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 271 billion yen, was up 29.6 billion yen from what it was at the end of the previous fiscal year. Regarding the net interest-bearing debt, we expect 200 billion yen for the fiscal year ending March 31. We revised the net sales and operating income forecast for the full year, which we announced in August. The exchange rate assumption is 140 yen to the U.S. dollar, which remains the same as the first half assumption. This slide shows the forecast by business segment. This chart shows the difference between the revised forecast and the forecast as of August. This chart shows the net sales operating income, operating margin, and the real OP margin features OP margin less the impact of revenue from customer-supplied parts. March 2025 was 7.3%, but the real OP margin for this year is expected to be 7.7%. This concludes my report.