Consolidated Sales and Profit Forecast

* MinebeaMitsumi has adopted International Financial Reporting Standards (IFRS) from the 1Q of FY3/2019.

Forecast for the FY3/2026

Regarding the earnings forecast for the fiscal year ending March 2026, we have revised our forecast upward to net sales of 1.6 trillion yen and operating profit of 101 billion yen in light of our progress through Q3 where we reached record highs. While the actual profit level is trending at 105 billion yen excluding structural reform expenses, this update reflects a conservative judgment considering exchange risks.

We believe clearing the long standing 100 billion yen hurdle is now certain, and with robust demand and progress in improving profitability, we expect to achieve this revised forecast.

Forecast for the Consolidated Sales and Operating Income by Business Segment

Precision Technologies (PT) segment is the primary driver of our profitability with bearings performing exceptionally well and reaching record highs in December production and January sales volumes. Demand for fan motors and automotive bearings remains robust with significant room for growth and we plan to increase our production capacity to 350 million units per month next fiscal year. Aircraft components are also showing steady progress in operational reforms in Western factories and price adjustments and we expect a profit increase of approximately 10 percent next fiscal year supported by our abundant backlog.

Motor Lighting and Sensing (MLS) segment is seeing vast opportunities for large fan motors and other products due to the expansion of the AI server market. We have completed investments to increase production of spindle motors for helium HDD products which will contribute to earnings starting in the second half of next fiscal year. Lighting devices have begun contributing to profit through increased production for pillar to pillar displays and a recovery in tablet volumes and sensing devices are also seeing a rapid increase in inquiries for sensors for humanoid robot hands.

Semiconductor and Electronics (SE) segment expects profit for the semiconductor business to remain flat at approximately 24 billion yen for both this fiscal year and next fiscal year as it will take more time to improve utilization at the Shiga power semiconductor factory. On the other hand ABLIC is performing very well and the roadmap for mass production of next generation medical devices using Socionext products is progressing steadily. Optical devices and mechanical components are performing according to our initial plans and the segment continues to maintain stable operations.

Access Solutions (AS) segment has faced a very tough environment including stagnation in the Chinese market and customer shutdowns caused by semiconductor supply shortages from Nexperia. However we have established the capacity to secure an operating profit of approximately 16 billion yen despite these headwinds which demonstrates the improved strength of this segment. The impact of the supply issues is expected to be limited due to recovery production in the United States during the second half and we expect an increase in profit for the next fiscal year.

Capital Expenditure, Depreciation, Research and Development Costs

Foreign Exchange

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