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 7.8% year-on-year and down 19% quarter-on-quarter to total ¥17.4 billion. Profit for the period attributable to owners or parent decreased by 17.2% year-on-year and decreased by 35.8%. A quarter-on-quarter total of 10.9 billion yen. 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 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 The 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% Q on Q to total ¥60.8 billion. Sales of ball bearings were down 1.2% quarter on quarter. to total 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 and fasteners totaling 15 billion yen were down 8.3% over the previous quarter. Sales of PMC decreased 1% quarter-on-quarter to total ¥6.2 billion. Average income for the quarter totaled ¥14 billion, and the average margin was 21.5%. On a quarter-on-quarter basis, average income remained nearly flat, while the average margin improved by 0.5 percentage points. Looking at the results by product, we saw an increase in average 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% Q on Q. Byproduct sales of motors amounted to 80.2 billion yen, which was in line with the previous quarter, including resonant device. Katsuhiko Yoshida, Ryozo Iwaya, Shinji Shirakata, Joerg Hoffmann, Satoshi Mizuma, Katsuyuki Iwakuma 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 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, 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 yen to 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.

Next, over to you, Mr. Kainuma. So I would like to talk about important points for today's briefing. I would like you to read what is written on this slide. So Q1 finished better than our expectation. So reciprocal tariff. In actuality, it did not have a major impact on our business. Having said that, however, as you may be aware, 15% tariff on automotive, we don't know when it will begin. and employment statistics. According to what I hear, there seem to be many differences. So there is a range to the projections. And at the end of Q1, I think it will be risky to fix the projection at this point in time, but the minimum level has risen to some extent. That is how I would like you to understand. In November, when we announce our earnings in November, I should be able to share with you more solid numbers. Having said that, however, for some reasons, we are enjoying good performance. And more recently, July, August, and September, this momentum is likely to continue. The only The problem or the burden on business is sub-core businesses. I will come back to this point later on. On the other hand, Thailand and Cambodia conflict in that region has been reported by media. Both countries have agreed to cease fire and the actual impact is quite negligible. On a monthly basis, 50 million to 60 million additional cost has incurred. However, when the conflict intensified, I was visiting Thailand and Cambodia, so the separation of politics and economy The high ranking officials of the government of the both countries seem to agree on that and therefore I myself am confident that logistics or the flow of goods will be resumed in the near future. The next topic is The reciprocal tariff, as you can see here, what we make in the U.S. and sell in the U.S. amount to 160 billion yen. Only 40 billion we export to the U.S. And 180 billion yen shown underneath that is the amount of transaction we make outside the U.S. And our products Our products coming into the U.S. in the form of finished products amounts to 180 billion. And top right and bottom right do not matter. So only 40 billion is the amount that matters. And 80% of the customers, we have been able to pass on the additional cost to them as our charge system. So 1.34 million US dollars was the additional cost incurred in Q1. On a quarterly basis, if the current situation The next page, please. As you can see here, I mean, actually compared with Q1 of the previous year, about the profit, sub-core businesses, in other words, the game consoles and OIS. So down 3.1 billion yen. I will give you more details later on. If this had remained flat, it would have been the record high Q1 profit. So core business. I feel safe in saying the core businesses achieved a record high performance in November Our growth drivers, for example, the rider, which is fully automotive driving, and drone and humanoids. So these are three. I will be able to share with you future projections, and it seems quite promising. Humanoid. At CES to be held in January, our humanoid products or our products for humanoid will be exhibited at the CES to be held in January. And what we are working right now, the hand for humanoids So our products are differentiated from our competitors' products, and such hands will also be exhibited. And our core business is likely to further expand going forward. Moving on to the next page. The bearings are enjoying excellent business. Production hit the record high and the monthly plan, 24 million units, has been exceeded. And in the second half of the year, So 340 million units per month, which is a record high monthly production we are aiming to achieve. And the people working in the field are highly motivated and order intake is quite good. So the bearings and firm orders for data centers and automotive bearings are doing well as well and p-bots are also doing well and PMC or machined components are doing extremely well. The only thing that is lagging behind in production is a road end and CNA, the medical. is at the low level, and FX is moving in the negative direction. But right now, we are enjoying excellent performance, so profitability is improving. Next page, please. So this is something you may be already familiar with, fan motors, a cooling system for data centers. Even though the method changes, the demand for motors is quite solid. So our high-performance bearings, there is still good room for further expansion. So that was about the bearings. Next page, please. The motor lighting and sensing. The motors are doing extremely well as well. Fan motors will enjoy high margin this year. Even if we do not renew the record, something very close to that can be achieved. And HDD is really solid as well. High additional value products are being produced and backlight has finally hit the bottom and tablet The volume is expected to grow going forward, so we'll be able to contribute to our profitability and automotive, in my opinion, innovative display will be launched and the mass production has started. I mean, full-fledged mass production will begin next year, but the backlight has definitely hit the bottom.