Presentation Transcripts

Now let's take a look at the results by segment, starting with 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.
From the fourth quarter of the fiscal year ended March 31, 2024, the sub-segment name has been changed to PMC (Precision Mechanical Component) from Pivot assemblies.

In the fiscal year ended March 31, 2024, net sales were up 7.1% year on year to total 211.4 billion yen. Sales of ball bearings increased 1.7% year on year to reach 148.8 billion yen. The monthly average of bearing sales volume totaled 204 million units for a decrease of 9.6% 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 28.4% year on year to total 45.2 billion yen. It is recovering steadily from the effects of the COVID-19. Sales of PMC increased 10.0% year on year to total 17.5 billion yen.

Operating income for the fiscal year ended March 31, 2024 totaled 38 billion yen, putting the operating margin at 18.0%. We saw operating income decreased 11.4% and the operating margin declined 3.8 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 ball bearings and PMC declined.

For the fiscal year ending March 31, 2025, we expect sales of ball bearings to increase due to gradual recovery of demand for automobiles, and demand for data centers is expected to recover from the second half of the fiscal year. In our aircraft-related businesses, including rod-ends and fasteners, we expect aircraft production rates to exceed pre COVID-19 levels in the second half of the year, and we expect to achieve record results. For PMC, we also expect recovery of demand in this fiscal year.