Presentation Transcripts

Now let's take a look at the results by segment, starting with machined components, renamed Precision Technologies 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, 2023, net sales were up 11.2% year on year to total 197.3 billion yen. Sales of ball bearings increased 14.2% year on year to reach 146.2 billion yen. The monthly average of bearing sales volume totaled 226 million units for a decrease of 5.0% year on year. Looking at sales by application, we see that sales of products for automobile applications increased while sales of those used for data centers and home electronics declined.
Sales of rod-ends and fasteners were up 30.4% year on year to total 35.2 billion yen. It is recovering steadily from the effects of the COVID-19.
Sales of pivot assemblies decreased 29.3% year on year to total 15.9 billion yen.

Operating income for the fiscal year ended March 31, 2023 totaled 43 billion yen, putting the operating margin at 21.8%. We saw operating income decrease 6.1% and the operating margin declined 4.0 percentage points year on year. Looking at the year on year results by product, we see that operating income for rod-ends and fasteners rose while operating income for pivot assemblies and ball bearings declined.
If the impact of special factors, such as FX forward contracts, structural reform costs and others were excluded, operating income for the fiscal year ended March 31, 2023 would be decrease 1.0% year on year, and the operating margin would be decline 2.9 percentage points year on year.

For the fiscal year ending March 31, 2024, we expect sales of ball bearings are expected to increase due to gradual recovery of demand for automobiles, and demand for servers is expected to recover from the second half of the fiscal year. In our aircraft-related businesses, including rod-ends and fasteners, we expect full scale recovery in the second half of this fiscal year.  For pivot assembly, we also expect recovery of demand in the second half of this fiscal year.