Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 3, 2026 Consolidated Financial Results for the Nine Months Ended December 31, 2025 [Under Japanese GAAP] (Unaudited) Company name: NTN Corporation Listing: Tokyo Stock Exchange Securities code: 6472 URL: https://www.ntnglobal.com Representative: Eiichi Ukai, President, Executive Officer Inquiries: Masaaki Yamamoto, Executive Officer, CFO Telephone: +81-6-6443-5001 Scheduled date to commence dividend payments: – Preparation of supplementary material of the financial results: Yes Holding of financial results briefing: Yes (for institutional investors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted) 1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) (1) Consolidated operating results (Percentages indicate year-on-year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 603,339 (2.0) 19,301 35.8 13,977 141.5 3,720 – December 31, 2024 615,518 (0.8) 14,213 (7.7) 5,787 (40.8) (8,251) – Note: Comprehensive income: For the nine months ended December 31, 2025: 29,702 million yen [–] For the nine months ended December 31, 2024: (1,796) million yen [–] Net income per share Diluted net income per share Nine months ended Yen Yen December 31, 2025 6.93 – December 31, 2024 (15.56) – (2) Consolidated financial position Total assets Net assets Equity ratio As of Millions of yen Millions of yen % December 31, 2025 887,593 294,136 31.2 March 31, 2025 856,425 248,699 27.2 Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income) As of December 31, 2025: 276,627 million yen As of March 31, 2025: 232,886 million yen
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 – 5.50 – 5.50 11.00 Fiscal year ending March 31, 2026 – 5.50 – Fiscal year ending March 31, 2026 (forecast) 5.50 11.00 Note: Revision to the most recently published forecast of dividends: None 3. Forecast of consolidated earnings for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 805,000 (2.5) 26,000 13.2 13,000 24.1 (4,000) – (7.27) Note: 1. Revision to the most recently published forecast of dividends: None 2. The number of issued shares increased as a result of the exercise of share acquisition rights during the third quarter of the fiscal year. In the forecast of consolidated earnings for the fiscal year ending March 31, 2026, net income per share has been calculated taking into account the impact of the increase in the number of issued shares. * Notes to consolidated financial statements (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting method specific to the preparation of quarterly consolidated financial statements: Yes (Note) For further details, refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (4) Notes to Quarterly Consolidated Financial Statements,” (Notes to Accounting Method Specific to the Preparation of Quarterly Consolidated Financial Statements) on page 9 of the attached documents. (3) Changes in accounting principles and accounting estimates and retrospective restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatements: None (4) Number of issued shares (common stock) 1) Total number of issued shares at the end of the period (including treasury stock): As of December 31, 2025: 597,533,017 shares As of March 31, 2025: 532,463,527 shares 2) Number of treasury stock at the end of the period: As of December 31, 2025: 3,026,556 shares As of March 31, 2025: 3,038,095 shares 3) Average number of shares outstanding during the period: Nine months ended December 31, 2025: 536,797,815 shares Nine months ended December 31, 2024: 530,283,468 shares * Review of the Japanese -language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
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* Explanation on the appropriate utilization of earnings forecasts and other special notes All descriptions about the future of the Company contained herein including earnings forecasts are prepared on the basis of data and information currently in our possession as well as certain assumptions that are deemed reasonable, and therefore are not meant to have us committed to their achievement. Various factors may cause actual results to substantially differ from those described herein. For matters related to the earnings forecasts, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Results for the Nine Months Ended December 31, 2025, (3) Explanation Regarding Consolidated Earnings Forecasts and Other Forward-Looking Statements” on page 3 of the attached documents.
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1 [Contents of the Attached Documents] 1. Qualitative Information on Quarterly Consolidated Financial Results for the Nine Months Ended December 31, 2025 .....2 (1) Explanation Regarding Operating Results ............................................................................................................................ 2 (2) Explanation Regarding Financial Position ............................................................................................................................. 3 (3) Explanation Regarding Consolidated Earnings Forecasts and Other Forward-Looking Statements ........ 3 2. Quarterly Consolidated Financial Statements and Major Notes ................................................................................................. 4 (1) Quarterly Consolidated Balance Sheets ................................................................................................................................ 4 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income 6 (Quarterly Consolidated Statements of Income) .................................................................................................................... 6 (Quarterly Consolidated Statements of Comprehensive Income) ....................................................................................... 7 (3) Quarterly Consolidated Statements of Cash Flows ............................................................................................................. 8 (4) Notes to Quarterly Consolidated Financial Statements ....................................................................................................... 9 (Notes to Going Concern Assumption) .................................................................................................................................... 9 (Notes to Significant Changes in Shareholders’ Equity) ......................................................................................................... 9 (Notes to Accounting Method Specific to the Preparation of Quarterly Consolidated Financial Statements) ................. 9 (Notes to Quarterly Consolidated Balance Sheets) ................................................................................................................ 9 (Notes to Quarterly Consolidated Statements of Income) ..................................................................................................... 9 (Notes to Segment Information, etc.) ...................................................................................................................................... 11 (Notes on statements of cash flows) ............................................................................................................................... 12 (Significant Subsequent Events) ............................................................................................................................................. 12 3. Supplementary Information ........................................................................................................................................................... 13 (1) Explanatory Materials .............................................................................................................................................................13
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2 1. Qualitative Information on Quarterly Consolidated Financial Results for the Nine Months Ended December 31, 2025 (1) Explanation Regarding Operating Results The global economy during the first nine months of the current fiscal year (from April 1, 2025 to December 31, 2025) showed signs of standstill in some regions and continued its gradual recovery. The Japanese economy experienced a moderate recovery, with improvements in personal consumption and capital investments, although the influence of U.S. trade policy and other factors was seen mainly in the automobile industry. Overseas, the U.S. economy continued on a moderate expansion trend, although uncertainty remained due to tariff hikes and other factors. The Chinese economy remained flat, while other emerging Asian economies experienced a recovery . The European economy showed signs of improvement, with economic standstill in some countries such as Germany. Under these circumstances, the Company will continue to accelerate the transformation of our business structure, set forth in the New Medium -term Management Plan “DRIVE NTN100” Final, which started in April 2024 and complete the revitalization of NTN, focusing on the implementation of business structure reforms, mainly pr oduction restructuring, and the enhancement of “earning power” through strengthening SQCCD*. *Safety, Quality, Compliance, Cost & Cash, Delivery & Development Net sales for the first nine months amounted to 603,339 million yen (down 2. 0% year on year). Regarding profit and loss, operating income amounted to 1 9,301 million yen (up 35.8% year on year) mainly due to price pass-on measures and reductions in variable costs and fixed costs, despite the impact of a decrease in the scale of sales. Ordinary income amounted to 13,977 million yen (up 141.5% year on year). Profit attributable to owners of parent was 3, 720 million yen ( loss attributable to owners of parent of 8,251 million yen in the same period of the previous fiscal year). Operating results by reporting segment (company location) were as follows. (1) Japan In the Bearing and Others business, sales in aftermarket applications increased. Sales in industrial machinery OEM applications increased, and sales in automotive OEM applications decreased. In the CVJ/Axle business, sales in automotive OEM applications decreased due to decreased customer demand. As a result, net sales amounted to 261,374 million yen (down 2.4% year on year). Segment income amounted to 6,104 million yen (down 3 1.6% year on year) mainly due to a decrease in the scale of sales, despite the impact of price pass-on measures. (2) Americas Sales in industrial machinery applications in the Bearing and Others business and sales in automotive aftermarket applications in the CVJ/Axle business increased on a local currency basis, but were impacted by the exchange rates and decreased customer demand in automotive OEM applications. As a result, both businesses faced declining sales, and on the whole, net sales amounted to 194,670 million yen (down 4.8% year on year). Segment income was 3,274 million yen (segment loss of 1,926 million yen in the same period of the previous fiscal year) mainly owing to reductions in variable costs and fixed costs, despite the impact of U.S. trade policy. (3) Europe In the Bearing and Others business, sales in industrial machinery applications increased. In the CVJ/Axle business , sales in automotive aftermarket applications decreased due to decreased customer demand. As a result, net sales amounted to 140,629 million yen ( up 0.5% year on year) partly due to the impact of exchange rates. Segment loss was 2,310 million yen (segment loss of 4,587 million yen in the same period of the previous fiscal year) mainly due to reductions in variable costs and fixed costs, despite a decrease in the scale of sales. (4) Asia and other areas In the Bearing and Others business, sales in aftermarket applications and industrial machinery applications increased, but sales in automotive applications decreased. In the CVJ/Axle business, sales in automotive aftermarket applications increased, but sales in automotive OEM applications decreased due to decreased customer demand. As a result, net sales amounted to 123,257 million yen (down 3.8% year on year) partly due to the impact of exchange rates. Segment income was 12,678 million yen (up 12.2% year on year) mainly due to reductions in variable costs and fixed costs, despite a decrease in the scale of sales.
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3 Operating results by business segment were as follows. (1) Bearing and Others business Net sales amounted to 251,827 million yen (up 0.3% year on year) due to recovered customer demand and the impact of exchange rates. Operating income amounted to 6,731 million yen (down 29.1% year on year) mainly due to a decrease in the scale of sales, despite price pass-on measures and reductions in variable costs. (2) CVJ/Axle business Net sales amounted to 351,512 million yen (down 3.6% year on year) due to decreased customer demand and the impact of exchange rates. Operating income amounted to 12,570 million yen ( up 166.2% year on year) mainly due to reductions in variable costs and expenses, despite a decrease in the scale of sales and the impact of exchange rates. (2) Explanation Regarding Financial Position (Assets, liabilities, and net assets) Current assets increased 26,531 million yen (up 5.0%) from the previous fiscal year end and amounted to 560,392 million yen. This is mainly due to an increase of 14,130 million yen in f inished goods & purchased goods , and an increase of 12,939 million yen in cash and bank deposits. Fixed assets increased 4,637 million yen (up 1.4%) from the previous fiscal year end and amounted to 327,200 million yen. This is mainly due to a n increase of 6,317 million yen in property, plant and equipment. As a result, total assets increased 31,168 million yen (up 3.6%) from the previous fiscal year end and amounted to 887,593 million yen. Current liabilities decreased 9,063 million yen ( down 2.1%) from the previous fiscal year end and amounted to 413,450 million yen. This is mainly due to a decrease of 22,035 million yen in current portion of convertible bonds, and an increase of 16,255 million yen in short-term loans. Fixed liabilities decreased 5,206 million yen (down 2.8%) from the previous fiscal year end and amounted to 180,007 million yen. This is mainly due to a decrease of 14,862 million yen in long-term loans, and an increase of 10,000 million yen in bonds. As a result, total liabilities decreased 14,269 million yen (down 2 .3%) from the previous fiscal year end and amounted to 593,457 million yen. Total net assets increased 45,437 million yen (up 18.3%) from the previous fiscal year end and amounted to 294,136 million yen. This is mainly due to an increase of 22,962 million yen in foreign currency translation adjustments, an increase of 11,000 million yen in common stock, and an increase of 11,000 million yen in additional paid-in capital. (Cash flows) Net cash provided by operating activities amounted to 35,629 million yen ( up 13,778 million yen, or 63.1%, year on year). This was mainly due to the cash inflow factors of 30,121 million yen in depreciation and amortization, and a decrease of 11,496 million yen in trade receivables, which were offset by the cash outflow factor of 7,405 million yen in income taxes paid. Net cash used in investing activities amounted to 22,992 million yen (up 6,827 million yen, or 42.2%, year on year). This was mainly due to the expenditure of 23,126 million yen in purchase of property, plant and equipment. Net cash used in financing activities amounted to 5,544 million yen (down 2,006 million yen, or 26.6%, year on year). This was mainly due to the cash outflow factors of 19,866 million yen in repayment of long- term loans, 5,847 million yen in dividend payment, and 3,319 million yen in repayment of lease payable, which were offset by the cash inflow factors of 12,000 million yen in proceeds from long-term loans, and 10,000 million yen in proceeds from issuance of bonds. After adjusting for the 7,256 million yen of the effect of exchange rate changes and a decrease of 11 million yen in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation, cash and cash equivalents as of December 31, 2025 was 142,049 million yen, an increase of 14,337 million yen (up 11.2%) from the previous fiscal year end. (3) Explanation Regarding Consolidated Earnings Forecasts and Other Forward-Looking Statements No revisions made to the consolidated earnings forecast announced on October 31, 2025.
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4 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheets (In million yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and bank deposits 131,517 144,456 Notes and accounts receivable-trade 111,962 104,778 Electronically-recorded monetary claims 7,583 10,149 Finished goods & purchased goods 127,160 141,290 Work in process 58,713 57,204 Raw materials and supplies 58,493 62,202 Short-term loans receivable 70 37 Other 39,283 40,955 Allowance for doubtful accounts (923) (681) Total current assets 533,861 560,392 Fixed assets Property, plant and equipment Buildings and structures, net 86,030 88,473 Machinery, equipment and vehicles, net 112,609 111,641 Other, net 55,435 60,276 Total property, plant and equipment 254,074 260,391 Intangible assets 29,759 26,929 Investments and other assets Investment securities 23,235 22,679 Deferred tax assets 3,375 4,022 Assets for retirement benefits 7,211 8,050 Other 5,688 5,868 Allowance for doubtful accounts (781) (740) Total investments and other assets 38,729 39,879 Total fixed assets 322,563 327,200 Total assets 856,425 887,593
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5 (In million yen) As of March 31, 2025 As of December 31, 2025 Liabilities Current liabilities Notes and accounts payable-trade 59,104 59,964 Electronically-recorded monetary claims 69,239 68,117 Short-term loans 141,292 157,547 Current portion of bonds payable 50,000 50,000 Current portion of convertible bonds 22,035 – Accrued income taxes 5,178 4,002 Accrued bonuses for directors and other officers 109 96 Other 75,554 73,721 Total current liabilities 422,513 413,450 Long-term liabilities Bonds 20,000 30,000 Long-term loans 120,665 105,803 Provision for product defect compensation 445 648 Liabilities for retirement benefits 19,748 19,037 Other 24,353 24,518 Total long-term liabilities 185,213 180,007 Total liabilities 607,726 593,457 Net assets Shareholders' equity Common stock 54,346 65,346 Additional paid-in capital 67,970 78,970 Retained earnings 46,387 45,579 Treasury stock (1,202) (1,199) Total shareholders' equity 167,501 188,696 Accumulated other comprehensive income Net unrealized holding gain on other securities 97 169 Translation adjustments 55,544 78,506 Remeasurements of defined benefit plans 9,742 9,256 Total accumulated other comprehensive income 65,384 87,931 Non-controlling shareholders’ equity 15,812 17,508 Total net assets 248,699 294,136 Total liabilities and net assets 856,425 887,593
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6 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income (Quarterly Consolidated Statements of Income) (In million yen) Nine months ended Nine months ended December 31, 2024 (April 1, 2024–December 31, 2024) December 31, 2025 (April 1, 2025–December 31, 2025) Net sales 615,518 603,339 Cost of sales 510,829 494,570 Gross profit 104,689 108,768 Selling, general and administrative expenses 90,475 89,467 Operating income 14,213 19,301 Non-operating income: Interest income 1,381 1,198 Dividend income 80 71 Share of profit of entities accounted for using equity method 672 – Gain on valuation of derivatives – 743 Other 1,508 1,517 Total non-operating income 3,644 3,531 Non-operating expenses: Interest expenses 6,852 5,916 Share of loss of entities accounted for using equity method – 101 Foreign exchange losses 2,424 272 Other 2,793 2,564 Total non-operating expenses 12,070 8,855 Ordinary income 5,787 13,977 Extraordinary income Gain on sale of property, plant and equipment 631 314 Total extraordinary income 631 314 Extraordinary losses Impairment losses 4,148 2,142 Loss on business restructuring 2,086 1,010 Loss on sale of shares of subsidiaries and associates – 107 Total extraordinary losses 6,234 3,260 Income before income taxes and equity in earnings of affiliated companies 183 11,031 Income and other taxes 7,477 6,282 Net income (loss) (7,293) 4,749 Profit attributable to non-controlling shareholders 957 1,028 Profit (loss) attributable to owners of parent (8,251) 3,720
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7 (Quarterly Consolidated Statements of Comprehensive Income) (In million yen) Nine months ended December 31, 2024 (April 1, 2024–December 31, 2024) Nine months ended December 31, 2025 (April 1, 2025–December 31, 2025) Net income (loss) (7,293) 4,749 Other comprehensive income Net unrealized holding gain on other securities (58) 71 Translation adjustments 6,308 25,632 Remeasurements of defined benefit plans (664) (518) Equity in equity-method affiliates (87) (231) Total other comprehensive income 5,497 24,952 Comprehensive income (1,796) 29,702 (Breakdown) Comprehensive income attributable to owners of parent (3,165) 27,552 Comprehensive income attributable to non-controlling shareholders 1,368 2,149
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8 (3) Quarterly Consolidated Statements of Cash Flows (In million yen) Nine months ended December 31, 2024 (April 1, 2024–December 31, 2024) Nine months ended December 31, 2025 (April 1, 2025–December 31, 2025) Cash flows from operating activities Income before income taxes and equity in earnings of affiliated companies 183 11,031 Depreciation and amortization 31,884 30,121 Impairment losses 4,148 2,142 Goodwill depreciation 160 – Loss (gain) on sale of shares of subsidiaries and associates – 107 Loss on business restructuring 2,086 1,010 Increase (decrease) in allowance for doubtful accounts (401) (359) Increase (decrease) in accrued retirement benefits for directors and statutory auditor (38) (13) Increase (decrease) in provision for product defect compensation (237) 202 Increase (decrease) in liabilities in retirement benefits (456) (1,993) Decrease (increase) in assets for retirement benefits (803) (792) Interest and dividend income (1,462) (1,270) Interest expenses 6,852 5,916 Foreign currency translation adjustments / foreign exchange losses (gains) (986) (1,253) Loss (gain) on valuation of derivatives – (743) Share of loss (profit) of entities accounted for using equity method (672) 101 Loss (gain) on sale of property, plant and equipment (631) (314) Decrease (increase) in trade receivables 6,216 11,496 Decrease (increase) in inventories 1,095 (1,138) Increase (decrease) in trade payables (7,436) (3,654) Other (2,693) (4,335) Subtotal 36,808 46,261 Interest and dividend income received 1,817 2,055 Interest paid (7,257) (5,281) Income taxes paid (9,516) (7,405) Net cash provided by operating activities 21,851 35,629 Cash flows from investing activities Increase in time deposits (384) (623) Decrease in time deposits 177 2,186 Purchase of property, plant and equipment (15,077) (23,126) Proceeds from sale of property, plant and equipment 1,046 707 Purchase of intangible assets (2,047) (1,989) Proceeds from sale of shares of subsidiaries and associates 313 53 Decrease (increase) in short-term loans receivable, net 14 35 Other (207) (236) Net cash used in investing activities (16,165) (22,992) Cash flows from financing activities Increase (decrease) in short-term loans, net 17,152 1,975 Proceeds from long-term loans 15,000 12,000 Repayment of long-term loans (29,459) (19,866) Proceeds from issuance of bonds – 10,000 Dividend payment (5,581) (5,847) Repayment of lease payable (2,794) (3,319) Other (1,867) (485) Net cash used in financing activities (7,550) (5,544) Effect of exchange rate changes on cash and cash equivalents 2,782 7,256 Increase (decrease) in cash and cash equivalents 918 14,349 Cash and cash equivalents at beginning of the year 127,266 127,712 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation – (11) Cash and cash equivalents, at end of the quarter 128,185 142,049
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9 (4) Notes to Quarterly Consolidated Financial Statements (Notes to Going Concern Assumption) Not applicable. (Notes to Significant Changes in Shareholders’ Equity) During the nine months ended December 31, 2025, as the stock acquisition rights incorporated in the Zero Coupon Convertible Bonds due 2025 were exercised, common stock increased by 11,000 million yen, and additional paid-in capital increased by 11,000 million yen. As a result, as of December 31, 2025, common stock and additional paid-in capital were 65,346 million yen and 78,970 million yen, respectively. (Notes to Accounting Method Specific to the Preparation of Quarterly Consolidated Financial Statements) (Calculation of tax expenses) Tax expenses are calculated by multiplying quarterly income before income taxes by an effective tax rate reasonably estimated based on income before income taxes for the full fiscal year, including the first nine months under review, after the application of tax effect accounting. However, in cases where calculating tax expenses using a reasonably estimated effective tax rate yields a result that is notably lacking rationality, then, tax expenses are calculated using the statutory effective tax rate. (Notes to Quarterly Consolidated Balance Sheets) Contingent liabilities (Lawsuits) A lawsuit has been filed against the Company and its two consolidated subsidiaries in Europe before the France Tribunal de Commerce de Lyon by Renault S.A. and its group companies, which are 15 in total (hereafter, “Renault”), seeking compensation for damages (amount claimed: 58.3 million euros as of April 2022). This lawsuit was filed by Renault alleging that they suffered damages in connection with the infringement of the European competition laws, which was subject of the decision adopted by the European Commission dated March 19, 2014. On November 10, 2023, the court rendered a judgment dismissing Renault’s claim. On December 8, 2023, Renault appealed to the Court of Appeals of Paris ( Cour d’appel de Paris) against the judgment . On September 5, 2024, Renault revised the claim ed amount to 62. 49 million euros (provisional). (Notes to Quarterly Consolidated Statements of Income) 1 During the nine months ended December 31, 2024, the Company recorded gain on sale of property, plant and equipment of 631 million yen in e xtraordinary income. The breakdown is 506 million yen in gain on sale of land and buildings of the Company’s consolidated subsidiaries in Americas and 125 million yen in other. During the nine months ended December 31, 2025, the Company recorded gain on sale of property, plant and equipment of 314 million yen in extraordinary income. The breakdown is 314 million yen in gain on sale of land and buildings of the Company’s consolidated subsidiaries in Americas. 2 The NTN Group carries out grouping of assets. With regard to manufacturing assets, any plants etc. coming under managerial accounting business classifications are deemed to be the smallest unit creating cash flow. With regard to Head Office and business -use assets are grouped as corporate assets and the assets no longer used are grouped by individual asset. In the case of the assets shown in the following table, no possibility of recovery was found for the estimated period of future cash flows due to deterioration in profitability in the nine months ended December 31, 2025 and the nine months ended December 31, 2024; and there was no prospect for future use due to production restructuring and the discontinuation of development, etc. For these reasons, the book value was reduced to the recoverable amount, and 2,142 million yen of impairment losses in the nine months ended December 31, 2025, and 4,148 million yen of impairment losses in the nine months ended December 31, 2024 were recorded as the extraordinary losses. The recoverable amount was measured by using the net realizable value, the value in use, or fair value, and set at zero for assets that could not be sold or otherwise converted. The net realizable value was estimated based on real estate appraisal standards, etc. The value in use is calculated by using a discount rate of mainly 7.1%, net of tax for future cash flows for each business segment. Fair value is measured by using either the cost approach or the income approach. Under the income approach, future cash flows are discounted by using a discount rate of 7.0%.
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10 Location Applications Type of asset Impairment losses (In millions of yen) Nine months ended December 31, 2024 (April 1, 2024– December 31, 2024) Nine months ended December 31, 2025 (April 1, 2025– December 31, 2025) Japan Manufacturing facilities and others Buildings and structures – 111 Machinery, equipment and vehicles – 0 Property, plant and equipment (Other) – 50 Intangible assets – 23 Construction in progress 643 – Americas Manufacturing facilities and others Machinery, equipment and vehicles – 1,958 Europe Manufacturing facilities and others Machinery, equipment and vehicles 1,682 – Property, plant and equipment (Other) 2 – Asia and other areas Manufacturing facilities and others Buildings and structures 1,326 – Machinery, equipment and vehicles 453 – Construction in progress 39 – Total 4,148 2,142 3 The Company recorded a loss on business restructuring of 2,086 million yen such as dismissal costs in extraordinary losses in the nine months ended December 31, 2024. The breakdown is as follows: 1,830 million yen in the Americas region, 166 million yen in the Asian region, and 88 million yen in the European region. The Company recorded a loss on business restructuring of 1,010 million yen in extraordinary losses in the nine months ended December 31, 2025. This loss was mainly due to dismissal costs and a loss on disposal of products resulting from withdrawal. The breakdown is as follows: 541 million yen in the European region, 319 million yen in the Asian region, and 148 million yen in the Americas region.
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11 (Notes to Segment Information, etc.) I. Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024) 1. Information related to sales, income or losses for individual reporting segments (In millions of yen) Reporting segment Adjustments (Note) 1 Balance sheet amount Japan Americas Europe Asia and other areas Total Net sales Sales to external customers 159,730 202,405 136,326 117,056 615,518 – 615,518 Inter-segment sales or transfers 108,056 2,177 3,628 11,112 124,974 (124,974) – Total 267,787 204,582 139,954 128,168 740,493 (124,974) 615,518 Segment income (Operating income (loss)) 8,925 (1,926) (4,587) 11,301 13,713 500 14,213 (Notes) 1. “Adjustments” refers to elimination of all inter-segment transactions. 2. Major countries or regions in each segment: Americas: U.S., Canada, South and Central America Europe: Germany, France, United Kingdom, and others Asia and other areas: China, Thailand, India, and others 2. Information related to impairment loss on fixed assets and goodwill, etc., by reporting segment (Significant impairment loss related to fixed assets) (In millions of yen) Japan Americas Europe Asia and other areas Adjustments Total Impairment loss 643 – 1,684 1,819 – 4,148 II. Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) 1. Information related to sales, income or losses for individual reporting segments (In millions of yen) Reporting segment Adjustments (Note) 1 Balance sheet amount Japan Americas Europe Asia and other areas Total Net sales Sales to external customers 158,882 193,871 137,704 112,880 603,339 – 603,339 Inter-segment sales or transfers 102,491 798 2,925 10,376 116,592 (116,592) – Total 261,374 194,670 140,629 123,257 719,931 (116,592) 603,339 Segment income (Operating income (loss)) 6,104 3,274 (2,310) 12,678 19,746 (445) 19,301 (Notes) 1. “Adjustments” refers to elimination of all inter-segment transactions. 2. Major countries or regions in each segment: Americas: U.S., Canada, South and Central America Europe: Germany, France, United Kingdom, and others Asia and other areas: China, Thailand, India, and others 2. Information related to impairment loss on fixed assets and goodwill, etc., by reporting segment (Significant impairment loss related to fixed assets) (In millions of yen) Japan Americas Europe Asia and other areas Adjustments Total Impairment loss 184 1,958 – – – 2,142
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12 (Notes on statements of cash flows) Significant non-cash transactions (In millions of yen Nine months ended December 31, 2024 (April 1, 2024–December 31, 2024) Nine months ended December 31, 2025 (April 1, 2025–December 31, 2025) Increase in common stock resulting from exercise of share acquisition rights – 11,000 Increase in additional paid-in capital resulting from exercise of share acquisition rights – 11,000 Decrease in convertible-bond-type bonds with share acquisition rights resulting from exercise of share acquisition rights – 22,000 (Significant Subsequent Events) Not applicable
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13 3. Supplementary Information (1) Explanatory Materials (In millions of yen, unless otherwise indicated) FYE3/2025 FYE3/2026 1Q-3Q 4Q Full year 1Q 2Q 3Q 1Q-3Q 1Q 2Q 3Q Consolidated operating results (Lower: Net sales ratio) Net sales 210,809 203,138 201,571 615,518 210,069 825,587 199,039 203,216 201,083 603,339 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating income 4,532 5,417 4,264 14,213 8,745 22,959 6,977 5,887 6,436 19,301 2.2% 2.7% 2.1% 2.3% 4.2% 2.8% 3.5% 2.9% 3.2% 3.2% Ordinary income 2,200 1,283 2,303 5,787 4,688 10,475 4,032 4,694 5,250 13,977 1.0% 0.6% 1.1% 0.9% 2.2% 1.3% 2.0% 2.3% 2.6% 2.3% Extraordinary income – (643) (4,959) (5,603) (13,465) (19,068) – (431) (2,513) (2,945) – (0.3%) (2.5%) (0.9%) (6.4%) (2.3%) – (0.2%) (1.3%) (0.5%) Profit attributable to owners of parent 170 (2,296) (6,125) (8,251) (15,550) (23,801) 1,190 1,909 620 3,720 0.1% (1.1%) (3.0%) (1.3%) (7.4%) (2.9%) 0.6% 0.9% 0.3% 0.6% Net sales by region (Lower: Net sales ratio) Japan 49,142 53,043 54,131 156,317 54,358 210,675 50,762 52,285 52,439 155,487 23.3% 26.1% 26.9% 25.4% 25.9% 25.5% 25.5% 25.7% 26.1% 25.8% Americas 74,473 66,816 63,402 204,691 68,716 273,407 65,358 69,021 62,988 197,369 35.3% 32.9% 31.5% 33.3% 32.7% 33.1% 32.8% 34.0% 31.3% 32.7% Europe 44,835 38,773 38,858 122,466 44,798 167,265 41,726 39,314 42,232 123,274 21.3% 19.1% 19.3% 19.9% 21.3% 20.3% 21.0% 19.3% 21.0% 20.4% Asia and other areas 42,358 44,505 45,178 132,042 42,196 174,239 41,191 42,594 43,421 127,207 20.1% 21.9% 22.4% 21.5% 20.1% 21.1% 20.7% 21.0% 21.6% 21.1% Total 210,809 203,138 201,571 615,518 210,069 825,587 199,039 203,216 201,083 603,339 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Net sales / Operating income by location Japan Net sales 86,830 88,984 91,972 267,787 86,693 354,480 83,717 89,098 88,558 261,374 Operating income 3,048 1,998 3,878 8,925 2,281 11,207 478 1,425 4,201 6,104 Operating margin 3.5% 2.2% 4.2% 3.3% 2.6% 3.2% 0.6% 1.6% 4.7% 2.3% Americas Net sales 75,118 66,641 62,822 204,582 67,306 271,889 64,631 68,261 61,777 194,670 Operating income 620 (1,598) (948) (1,926) 1,530 (395) 1,627 1,359 287 3,274 Operating margin 0.8% (2.4%) (1.5%) (0.9%) 2.3% (0.1%) 2.5% 2.0% 0.5% 1.7% Europe Net sales 50,623 44,364 44,965 139,954 50,563 190,517 47,264 45,173 48,192 140,629 Operating income (1,299) (1,565) (1,721) (4,587) 423 (4,163) (327) (878) (1,104) (2,310) Operating margin (2.6%) (3.5%) (3.8%) (3.3%) 0.8% (2.2%) (0.7%) (1.9%) (2.3%) (1.6%) Asia and other areas Net sales 41,543 43,368 43,257 128,168 40,388 168,557 39,630 41,611 42,014 123,257 Operating income 3,514 3,920 3,865 11,301 3,455 14,757 3,836 4,443 4,397 12,678 Operating margin 8.5% 9.0% 8.9% 8.8% 8.6% 8.8% 9.7% 10.7% 10.5% 10.3% Deletion Net sales (43,306) (40,220) (41,446) (124,974) (34,882) (159,857) (36,204) (40,928) (39,460) (116,592) Operating income (1,351) 2,661 (809) 500 1,053 1,554 1,363 (462) (1,345) (445) Total Net sales 210,809 203,138 201,571 615,518 210,069 825,587 199,039 203,216 201,083 603,339 Operating income 4,532 5,417 4,264 14,213 8,745 22,959 6,977 5,887 6,436 19,301 Operating margin 2.2% 2.7% 2.1% 2.3% 4.2% 2.8% 3.5% 2.9% 3.2% 3.2%
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14 (In millions of yen, unless otherwise indicated) FYE3/2025 FYE3/2026 1Q-3Q 4Q Full year 1Q 2Q 3Q 1Q-3Q 1Q 2Q 3Q Net sales / Operating income by business applications Bearing and Others Net sales 84,342 83,794 82,812 250,949 89,754 340,703 82,987 84,672 84,166 251,827 Operating income 3,299 3,338 2,852 9,491 4,189 13,680 2,263 2,291 2,177 6,731 Operating margin 3.9% 4.0% 3.4% 3.8% 4.7% 4.0% 2.7% 2.7% 2.6% 2.7% CVJ/Axle Net sales 126,466 119,343 118,758 364,569 120,314 484,883 116,051 118,544 116,916 351,512 Operating income 1,233 2,078 1,411 4,722 4,556 9,279 4,714 3,596 4,258 12,570 Operating margin 1.0% 1.7% 1.2% 1.3% 3.8% 1.9% 4.1% 3.0% 3.6% 3.6% Total Net sales 210,809 203,138 201,571 615,518 210,069 825,587 199,039 203,216 201,083 603,339 Operating income 4,532 5,417 4,264 14,213 8,745 22,959 6,977 5,887 6,435 19,301 Operating margin 2.2% 2.7% 2.1% 2.3% 4.2% 2.8% 3.5% 2.9% 3.2% 3.2% Capital expenditures / depreciation and amortization Capital expenditures 5,129 6,309 4,282 15,721 16,440 32,162 5,015 8,027 8,058 21,101 Depreci- ation and amorti- zation Domestic 4,042 4,080 4,175 12,298 4,239 16,537 4,116 4,061 4,012 12,189 Overseas 6,599 6,438 6,548 19,586 6,255 25,842 5,814 5,946 6,170 17,931 Total 10,641 10,518 10,724 31,884 10,495 42,379 9,930 10,007 10,182 30,121 R&D expenditures 4,874 4,791 5,002 14,668 4,987 19,656 5,020 4,541 5,122 14,684 Ratio of R&D expenditures to net sales 2.3% 2.4% 2.5% 2.4% 2.4% 2.4% 2.5% 2.2% 2.5% 2.4% Inventories 273,891 255,267 266,690 266,690 244,367 244,367 243,934 246,004 260,697 260,697 Inventory turnover ratio (times) 3.1 3.2 3.0 3.1 3.4 3.4 3.3 3.3 3.1 3.1 Interest-bearing debts Loans 278,661 269,988 264,224 264,224 261,958 261,958 264,882 262,527 263,350 263,350 Bonds 80,000 80,000 80,000 80,000 70,000 70,000 70,000 70,000 80,000 80,000 Convertible-bond- type bonds with share acquisition rights 22,072 22,059 22,047 22,047 22,035 22,035 22,023 22,010 ― ― Total 380,733 372,048 366,271 366,271 353,993 353,993 356,905 354,538 343,350 343,350 Major management indicators Ordinary income ratio to total assets 1.0% 0.6% 1.0% 0.9% 2.2% 1.2% 1.9% 2.2% 2.4% 2.1% Return on assets (ROA) 0.1% (1.0%) (2.8%) (1.2%) (7.1%) (2.8%) 0.6% 0.9% 0.3% 0.6% Return on equity (ROE) 0.3% (3.5%) (9.6%) (4.2%) (25.5%) (9.6%) 2.1% 3.2% 1.0% 1.9% Shareholder’s equity ratio 29.6% 28.5% 28.8% 28.8% 27.2% 27.2% 27.0% 27.9% 31.2% 31.2% Net assets per share (yen) 520.84 477.17 482.06 482.06 439.89 439.89 435.92 435.96 465.31 465.31 Net income per share (yen) 0.32 (4.33) (11.55) (15.56) (29.34) (44.90) 2.25 3.61 1.13 6.93 Employees Domestic (persons) 8,468 8,391 8,356 8,356 8,279 8,279 8,406 8,288 8,204 8,204 Overseas (persons) 14,210 14,121 13,949 13,949 13,717 13,717 13,565 13,476 13,353 13,353 Total (persons) 22,678 22,512 22,305 22,305 21,996 21,996 21,971 21,764 21,557 21,557 Exchange rates Average Dollar (yen) 155.73 149.22 152.32 152.42 152.48 152.44 144.61 147.42 154.10 148.71 Euro (yen) 167.67 163.84 162.54 164.68 160.37 163.61 163.77 172.28 179.33 171.79 At term end Dollar (yen) 160.75 142.29 156.86 156.86 149.65 149.65 144.51 148.60 156.41 156.41 Euro (yen) 172.09 158.79 163.24 163.24 161.88 161.88 169.53 174.26 183.76 183.76