Presentation Transcripts

Now let's take a look at the results by segment, starting with machined components 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.

In the fiscal year ended March 31, 2022, net sales were up 12.7% year on year to total 177.5 billion yen. Sales of ball bearings increased 17.3% year on year to reach 128.0 billion yen. The monthly average of bearing sales volume totaled 238 million units for a increase of 14.2% year on year. Looking at sales by application, there was an overall increase, particularly in data centers and automobile applications. Sales of rod-ends and fasteners were down 3.1% year on year to total 27.0 billion yen. Sales of pivot assemblies increased 9.8% year on year to total 22.5 billion yen, steadily contributing to our bottom line as we held on to an 80% plus market share.

Operating income for the fiscal year ended March 31, 2022 totaled 45.7 billion yen, putting the operating margin at 25.8%. We saw operating income increase 46.4% and the operating margin rise 6.0 percentage points year on year. Looking at the year-on-year results by product, we see that profits for ball bearings, rod-ends and fasteners, and pivot assemblies all rose.

For the fiscal year ending March 31, 2023, we expect an increase in sales for ball bearings due to continued increases in demand in a wide range of applications, mainly for automobiles and servers, as well as our reinforcement of production capacity. In our aircraft-related businesses, including rod-ends and fasteners, we expect recovery in the second half of this fiscal year. For pivot assembly, we anticipate a decline in demand as the HDD market shrinks.