Presentation Transcripts

Some of you may remember that two years ago, when the world went into lockdown following the outbreak of COVID-19, we made the decision to showcase our real profitability in our financial forecasts, and add stress to those figures. In the end, we beat this forecasts. Since becoming president, on average our level of achievement of our initial plans has been more than 110%. To ensure we can do so again this year, we've taken a similar approach to two years ago.

This fiscal year, too, we plan to have our three spears + 1—that is, bearings (including for aircraft), motors, analog semiconductors, and OIS—drive business results. In the previous fiscal year, the U-Shin business was adversely impacted by a drop in customers' production volume due to the semiconductor shortage. This year, however, we anticipate that the semiconductor shortage will gradually improve, and as a result that the U-Shin business will be a major positive factor compared to the previous year. In other businesses, we anticipate a net loss of 5 billion yen, considering the increases in profit other than those above, and decrease in profit in games and LED backlights. We have added 15 billion yen to the previous fiscal year's 92 billion yen to make 107 billion yen, and added 5 billion yen stress. We cannot know the actual condition of this 5 billion yen stress without seeing the trends in the first half of the year.

One of the most important messages today is to exceed 100 billion yen at all costs this fiscal year. While we anticipate an exchange rate of 115 yen to the dollar, if the current rate of 130 yen continues, it is not hard to imagine that the figures for mainly analog semiconductors will differ.