Minebea Mitsumi Inc U/Adr

Hello, this is Yoshida. Today, I would like to explain the consolidated financial results for the third quarter of the fiscal year ending March 2026. Consolidated net sales for the third quarter of the fiscal year ending March 2026 was up 22.8% year-on-year and up 10.3% quarter-on-quarter to total 453.9 billion yen. Operating income was up 17.8% year-on-year and up 14.3% quarter-on-quarter to total 30.8 billion yen. Profit for the period attributable to owners of the parent was up 19.4% year-on-year and increased by 17.5% quarter-on-quarter to total 20.8 billion yen. Both net sales and operating income exceeded our plan. We estimate that foreign currency exchange risk to have a quarter-on-quarter impact of plus 12.8 billion yen and year-on-year impact of plus 9.6 billion yen in net sales. Quarter-on-quarter impact was plus 1.7 billion yen and year-on-year impact was plus 0.2 billion yen in operating income. This is the quarterly trend in net sales, operating income, and operating margin. The operating margin for the third quarter was 6.8%. This represents a year-on-year decrease of 0.3 percentage points and a quarter-on-quarter increase of 0.2 percentage points. This is the difference between the forecast as of November and actual results for net sales and operating income by business segment for the third quarter. Nest cells of PT exceeded the forecast primarily due to strong performance in bearings for data centers and automobiles. MLS performed solidly, primarily driven by HDD motors and lighting devices, exceeding expectations. In the SE cells, semiconductors such as lithium battery protection ICs and mechanical components performed well, exceeding the forecast. AS was also above expectations primarily driven by automotive devices. Regarding operating profit, PT exceeded the forecast due to increased bearing production volume. MLS exceeded the forecast as lighting devices performed strongly. SC also exceeded the forecast as mechanical components showed steady performance. AS underperformed due to customer production adjustment following the suspension of semiconductor supplies from Nexperia for North American products. This slide shows the quarterly trends of the precision technology segment. On the left is a graph indicating quarterly 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 increased 2.5% quarter-on-quarter to total ¥70.1 billion. Sales of board bearings increased 0.5% quarter-on-quarter to total ¥46.2 billion. The monthly external shipment volume remained flat quarter-on-quarter, averaging 277 billion units. Driven by steady growth in the data center and automobiles, increased production and sales volumes contributed to this outcome. Sales of rod ends and fasteners increased 2.8% quarter-on-quarter to total 16.2 billion yen. Sales of PMC increased 15.4% quarter-on-quarter to total 7.7 billion yen. Operating income for the quarter totaled ¥15.3 billion and the operating margin was 21.9%. On a quarter-on-quarter basis, operating income increased ¥0.6 billion and the operating margin was up 0.4 percentage points. These results include the figures of Minabea Linear Motion Inc consolidated since October 2025. This slide shows the quarterly trends for motor, lighting and sensing segment. Sales increased 1% quarter on quarter to total 114.2 billion yen. Looking at the results by product, we see that sales of motors decreased 0.2% quarter-on-quarter to reach ¥84.2 billion. While demand for HDD and automotive applications remained steady, overall results were impacted by decline in sales for OA motors due to customer production adjustments. Sales of electronic devices were up 1.4% from the previous quarter to total ¥17.5 billion. Sales of sensing devices were up 4.1% from the previous quarter to a total of 9.9 billion yen. Operating income came to 8.3 billion yen, and the operating margin was 7.2%. On a quarter-on-quarter basis, operating income increased 1 billion yen, and the operating margin rose 0.7 percentage points. This slide shows the quarterly trends for semiconductors and electronic segment. Net sales increased 24.4% quarter-on-quarter to total 186.7 billion yen. This was due to steady performance in optical devices and mechanical components, in addition to analog semiconductors. Operating income totaled ¥10.8 billion, while the operating margin was 5.8%. On a quarter-and-quarter basis, operating income increased ¥3.4 billion, and the operating margin was up 0.9 percentage points.

This slide shows the quarterly trends for Access Solutions segment. Net sales are totaled ¥82 billion with a quarter-on-quarter increase of 3.9%. Operating income came to ¥3.3 billion and the OP margin was 4%. On a quarter-on-quarter basis, operating income decreased to ¥1.2 billion and the OP margin was down 1.6 percentage points. Although impacted by the aforementioned issues related to next period, performance is expected to recover from the fourth quarter onward. 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 20.8 billion yen. Earnings per share was 51.79 yen. Next, we have the quarterly inventory trend. At the end of Q3, inventory totaled 411.7 billion yen, an increase of 9.6 billion from three months earlier. This is primarily due to the strategic build-up of inventory necessary to meet the anticipated sales growth starting in the fourth quarter. This graph contains a bar chart showing trends in net Interest-bearing debt, which is a total interest-bearing debt minus cash and cash equivalent and the line chart indicating free cash flow. At the end of the third quarter, net interest-bearing debt totaling 278.6 billion yen was up 37.2 billion yen from the fiscal year March 2025. For the fiscal year March 2026, we expect to generate 27 billion yen in free cash flow and forecast net interest-bearing debt of 230 billion yen. This is the full year forecast for the fiscal year March 2026. We have revised both net sales and operating income upward from November forecast. Regarding operating income, we forecast 101 billion yen, factoring in the recognition of approximately 4 billion yen in restructuring costs. The exchange rate is assumed to be 155 yen to the US dollar. This slide shows the forecast by business segment. This chart shows the difference between the revised forecast and the November forecast. This chart shows the annual trends for the net sales operating income operating margin and the real operating margin, which is the operating margin excluding sales of supplied parts and components. The real operating margin for the fiscal year March 2025 was 7.3%. We also project a real operating margin of 7.6% for the fiscal year March 2026. This concludes my presentation.