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. August 4, 2026 Consolidated Financial Results for the Three Months Ended June 30, 2026 [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 three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (Percentages indicate year-on-year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 212,279 6.7 8,319 19.2 6,350 57.5 1,928 61.9 June 30, 2025 199,039 (5.6) 6,977 53.9 4,032 83.3 1,190 598.1 Note: Comprehensive income: For the three months ended June 30, 2026: 6,880 million yen [769.8%] For the three months ended June 30, 2025: 791 million yen [(95.0%)] Net income per share Diluted net income per share Three months ended Yen Yen June 30, 2026 3.24 – June 30, 2025 2.25 1.99 (2) Consolidated financial position Total assets Net assets Equity ratio As of Millions of yen Millions of yen % June 30, 2026 866,990 314,968 34.6 March 31, 2026 878,676 311,389 33.8 Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income) As of June 30, 2026: 299,917 million yen As of March 31, 2026: 296,896 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, 2026 – 5.50 – 5.50 11.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (forecast) 6.50 – 6.50 13.00 Note: Revision to the most recently published forecast of dividends: None 3. Forecast of consolidated earnings for the year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (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 810,000 (2.0) 33,000 6.3 21,000 (10.6) 15,000 16.5 25.23 Note: Revision to the most recently published forecast of dividends: None * 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 June 30, 2026: 597,533,017 shares As of March 31, 2026: 597,533,017 shares 2) Number of treasury stock at the end of the period: As of June 30, 2026: 3,016,127 shares As of March 31, 2026: 3,026,733 shares 3) Average number of shares outstanding during the period: Three months ended June 30, 2026: 594,508,913 shares Three months ended June 30, 2025: 529,426,829 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 Three Months Ended June 30, 2026 , (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 Three Months Ended June 30, 2026 ............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.) ...................................................................................................................................... 10 (Significant Subsequent Events) ............................................................................................................................................. 10 3. Supplementary Information ........................................................................................................................................................... 11 (1) Explanatory Material ...............................................................................................................................................................11
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2 1. Qualitative Information on Quarterly Consolidated Financial Results for the Three Months Ended June 30, 2026 (1) Explanation Regarding Operating Results The global economy during the first three months of the current fiscal year (from April 1, 2026 to June 30, 2026) continued its gradual recovery, although there were signs of weakness in some regions . The Japanese economy experienced a moderate recovery, with improvements in personal consumption and capital investment, although the impact of the Middle East situation needs to be monitored closely . Overseas, the U.S. economy continued to expand moderately. The Chinese economy moderately slowed down, while other Asia n countries, particularly South Korea and Taiwan , saw economic recovery and expansion. The European economy showed signs of improvement, with economic standstill in some countries such as Germany. Under these business environments, 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 production restructuring, and the enhancement of “earning power” through strengthening SQCCD*. *Safety, Quality, Compliance, Cost & Cash, Delivery & Development Net sales for the first three months amounted to 212,279 million yen (up 6.7% year on year). Regarding profit and loss, operating income amounted to 8,319 million yen (up 19.2% year on year) mainly due to the price pass-on measures and reductions in variable costs. Ordinary income amounted to 6,350 million yen (up 57.5% year on year). Profit attributable to owners of parent was 1,928 million yen (up 61.9% year on 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 both industrial machinery OEM applications and automotive OEM applications increased. In the CVJ/Axle business, sales increased both in automotive aftermarket applications and automotive OEM applications, mainly due to recovery in customer demand. As a result, net sales amounted to 86,349 million yen (up 3.1% year on year). Segment income amounted to 4,168 million yen (up 772.0% year on year) mainly due to an increase in the scale of sales and the impact of exchange rates. (2) Americas In the Bearing and Others business, sales increased in aftermarket applications; however, sales in both industrial machinery OEM applications and automotive OEM applications decreased due to lower customer demand. In the CVJ/Axle business , sales in both automotive aftermarket applications and automotive OEM applications decreased due to lower customer demand . As a result, net sales amounted to 69,273 million yen (up 7.2% year on year) due to the impact of exchange rates. Segment income was 519 million yen (down 68.1% year on year) due to a decrease in the scale of sales, despite the price pass-on measures and reductions in fixed costs. (3) Europe In the Bearing and Others business, sales in aftermarket applications increased. Sales in industrial machinery OEM applications increased, and sales in automotive OEM applications rose slightly. In the CVJ/Axle business , sales in aftermarket applications increased, but sales in automotive OEM applications decreased due to lower customer demand . As a result, net sales amounted to 51,399 million yen (up 8.7% year on year) due to the impact of exchange rates. Segment loss was 352 million yen (segment loss of 327 million yen in the same period of the previous fiscal year) due to a decrease in the scale of sales, despite reductions in variable costs and fixed costs. (4) Asia and other areas In the Bearing and Others business, sales in aftermarket applications increased. Sales in industrial machinery OEM applications increased, while sales in automotive OEM applications decreased. In the CVJ/Axle business, sales in both aftermarket applications and automotive OEM applications decreased due to lower customer demand. As a result, net sales amounted to 42,476 million yen (up 7.2% year on year) due to the impact of exchange rates . Segment income was 4,343 million yen (up 13.2% year on year) mainly due to reductions in variable costs and the impact of exchange rates , 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 89,984 million yen (up 8.4% year on year) due to recovered customer demand for aftermarket applications and the impact of exchange rates . Operating income amounted to 2,979 million yen (up 31.6% year on year) mainly due to a decrease in the price pass-on measures and the impact of exchange rates, despite the increase in personnel costs and variable costs. (2) CVJ/Axle business Net sales amounted to 122,294 million yen ( up 5.4% year on year) due to the impact of exchange rates, despite decreased customer demand for automotive OEM applications . Operating income amounted to 5,339 million yen (up 13.3% year on year) mainly due to reductions in variable costs and the impact of exchange rates, despite the impact of a decrease in the scale of sales. (2) Explanation Regarding Financial Position (Assets, liabilities, and net assets) Current assets decreased 10,555 million yen ( down 1.9 %) from the previous fiscal year end and amounted to 534,445 million yen. This is mainly due to a decrease of 5,403 million yen in notes and accounts receivable - trade, and a decrease of 4,846 million yen in cash and bank deposits. Fixed assets decreased 1,130 million yen ( down 0.3%) from the previous fiscal year end and amounted to 332,545 million yen. This is mainly due to a decrease of 1,781 million yen in deferred tax assets. As a result, total assets decreased 11,686 million yen ( down 1.3%) from the previous fiscal year end and amounted to 866,990 million yen. Current liabilities decreased 7,322 million yen ( down 2.0%) from the previous fiscal year end and amounted to 354,610 million yen. This is mainly due to a decrease of 9,765 million yen in short-term loans. Fixed liabilities decreased 7,942 million yen (down 3.9%) from the previous fiscal year end and amounted to 197,411 million yen. This is mainly due to a decrease of 7,011 million yen in long-term loans. As a result, total liabilities decreased 15,264 million yen (down 2.7%) from the previous fiscal year end and amounted to 552,022 million yen. Total net assets increased 3,579 million yen (up 1.1%) from the previous fiscal year end and amounted to 314,968 million yen. This is mainly due to an increase of 4,750 million yen in foreign currency translation adjustments, and a decrease of 1,332 million yen in retained earnings. (Cash flows) Net cash provided by operating activities amounted to 26,457 million yen ( up 7,857 million yen, or 42.2%, year on year). This was mainly due to the cash inflow factor s of 9,897 million yen in depreciation and amortization, 5,450 million yen in income before income taxes and equity in earnings of affiliated companies, an increase of 6,668 million yen in trade payables , and an increase of 3,220 million yen in trade receivables. Net cash used in investing activities amounted to 11,775 million yen (up 3,984 million yen, or 51.1%, year on year). This was mainly due to the expenditure of 9,789 million yen in purchase of property, plant and equipment. Net cash used in financing activities amounted to 22,096 million yen (compared with 1,396 million yen used in the same period of the previous year). This was mainly due to the cash outflow factors of 19,996 million yen in repayment of long-term loans, 9,552 million yen in decrease in short-term loans, net, 3,281 million yen in dividend payment, and 1,224 million yen in repayment of lease payable, which were offset by the cash inflow factor of 12,000 million yen in proceeds from long-term loans. After adjusting for the 1,319 million yen of the effect of exchange rate changes, cash and cash equivalents as of June 30, 2026 was 125,160 million yen, a decrease of 6,095 million yen (down 4.6%) 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 May 14, 2026.
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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, 2026 As of June 30, 2026 Assets Current assets Cash and bank deposits 132,630 127,784 Notes and accounts receivable-trade 120,172 114,769 Electronically-recorded monetary claims 10,487 13,696 Finished goods & purchased goods 133,483 130,724 Work in process 56,121 58,246 Raw materials and supplies 56,244 56,637 Short-term loans receivable 61 48 Other 36,468 33,178 Allowance for doubtful accounts (670) (642) Total current assets 545,000 534,445 Fixed assets Property, plant and equipment Buildings and structures, net 88,371 92,605 Machinery, equipment and vehicles, net 106,991 107,436 Other, net 63,957 60,500 Total property, plant and equipment 259,320 260,542 Intangible assets 26,463 25,782 Investments and other assets Investment securities 24,351 24,187 Deferred tax assets 6,950 5,169 Assets for retirement benefits 11,836 12,083 Other 5,350 5,374 Allowance for doubtful accounts (597) (594) Total investments and other assets 47,891 46,220 Total fixed assets 333,675 332,545 Total assets 878,676 866,990
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5 (In million yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable-trade 63,051 67,764 Electronically-recorded monetary claims 66,260 68,684 Short-term loans 136,025 126,260 Current portion of bonds payable 10,000 10,000 Accrued income taxes 5,202 3,405 Accrued bonuses for directors and other officers 131 43 Other 81,260 78,452 Total current liabilities 361,932 354,610 Long-term liabilities Bonds 20,000 20,000 Long-term loans 153,147 146,136 Provision for product defect compensation 682 706 Liabilities for retirement benefits 11,137 11,219 Other 20,385 19,349 Total long-term liabilities 205,353 197,411 Total liabilities 567,286 552,022 Net assets Shareholders' equity Common stock 65,346 65,346 Additional paid-in capital 78,970 78,970 Retained earnings 54,643 53,311 Treasury stock (1,199) (1,197) Total shareholders' equity 197,760 196,431 Accumulated other comprehensive income Net unrealized holding gain on other securities 111 129 Translation adjustments 82,052 86,802 Remeasurements of defined benefit plans 16,971 16,553 Total accumulated other comprehensive income 99,135 103,485 Non-controlling shareholders’ equity 14,493 15,050 Total net assets 311,389 314,968 Total liabilities and net assets 878,676 866,990
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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) Three months ended Three months ended June 30, 2025 (April 1, 2025–June 30, 2025) June 30, 2026 (April 1, 2026–June 30, 2026) Net sales 199,039 212,279 Cost of sales 162,994 171,522 Gross profit 36,045 40,757 Selling, general and administrative expenses 29,067 32,438 Operating income 6,977 8,319 Non-operating income Interest income 432 258 Dividend income 14 41 Share of profit of entities accounted for using equity method – 183 Gain on valuation of derivatives – 186 Other 766 668 Total non-operating income 1,213 1,338 Non-operating expenses Interest expenses 2,066 1,770 Share of loss of entities accounted for using equity method 287 – Foreign exchange losses 689 515 Other 1,115 1,021 Total non-operating expenses 4,158 3,307 Ordinary income 4,032 6,350 Extraordinary income Gain on sale of property, plant and equipment – 267 Total extraordinary income – 267 Extraordinary losses Loss on business restructuring – 1,050 Loss on valuation of shares of subsidiaries and associates – 115 Total extraordinary losses – 1,166 Income before income taxes and equity in earnings of affiliated companies 4,032 5,450 Income and other taxes 2,583 3,231 Net income 1,448 2,219 Profit attributable to non-controlling shareholders 258 291 Profit attributable to owners of parent 1,190 1,928
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7 (Quarterly Consolidated Statements of Comprehensive Income) (In million yen) Three months ended June 30, 2025 (April 1, 2025–June 30, 2025) Three months ended June 30, 2026 (April 1, 2026–June 30, 2026) Net income 1,448 2,219 Other comprehensive income Net unrealized holding gain on other securities 46 18 Translation adjustments 430 4,849 Remeasurements of defined benefit plans (114) (428) Equity in equity-method affiliates (1,019) 222 Total other comprehensive income (657) 4,660 Comprehensive income 791 6,880 (Breakdown) Comprehensive income attributable to owners of parent 775 6,279 Comprehensive income attributable to non-controlling shareholders 16 601
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8 (3) Quarterly Consolidated Statements of Cash Flows (In million yen) Three months ended June 30, 2025 (April 1, 2025–June 30, 2025) Three months ended June 30, 2026 (April 1, 2026–June 30, 2026) Cash flows from operating activities Income before income taxes and equity in earnings of affiliated companies 4,032 5,450 Depreciation and amortization 9,930 9,897 Loss on valuation of shares of subsidiaries and associates – 115 Loss on business restructuring – 1,050 Increase (decrease) in allowance for doubtful accounts (16) (40) Increase (decrease) in accrued retirement benefits for directors and statutory auditor (72) (88) Increase (decrease) in provision for product defect compensation (22) 23 Increase (decrease) in liabilities in retirement benefits (562) (389) Decrease (increase) in assets for retirement benefits (266) (227) Interest and dividend income (446) (300) Interest expenses 2,066 1,770 Foreign currency translation adjustments / foreign exchange losses (gains) 530 153 Loss (gain) on valuation of derivatives – (315) Share of loss (profit) of entities accounted for using equity method 287 (183) Loss (gain) on sale of property, plant and equipment – (267) Decrease (increase) in trade receivables 3,256 3,220 Decrease (increase) in inventories 1,038 2,399 Increase (decrease) in trade payables 2,184 6,668 Other (882) 3,205 Subtotal 21,056 32,145 Interest and dividend income received 986 646 Interest paid (1,562) (1,872) Payments for business restructuring – (1,629) Income taxes paid (1,879) (2,831) Net cash provided by operating activities 18,600 26,457 Cash flows from investing activities Increase in time deposits (599) (1,188) Decrease in time deposits 1,000 – Purchase of property, plant and equipment (7,131) (9,789) Purchase of intangible assets (1,468) (992) Proceeds from sale of investment securities – 190 Decrease (increase) in short-term loans receivable, net 4 12 Other 403 (7) Net cash used in investing activities (7,791) (11,775) Cash flows from financing activities Increase (decrease) in short-term loans, net (99) (9,552) Proceeds from long-term loans 9,000 12,000 Repayment of long-term loans (6,184) (19,996) Dividend payment (2,923) (3,281) Repayment of lease payable (1,000) (1,224) Other (188) (41) Net cash used in financing activities (1,396) (22,096) Effect of exchange rate changes on cash and cash equivalents (323) 1,319 Increase (decrease) in cash and cash equivalents 9,089 (6,095) Cash and cash equivalents at beginning of the year 127,712 131,255 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation (11) – Cash and cash equivalents, at end of the quarter 136,789 125,160
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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) Not applicable. (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 three 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 The Company recorded 267 million yen of gain on sale of property, plant and equipment as extraordinary income in the three months ended June 30, 2026 . This was mainly due to 248 million yen in gain on sale of buildings of the Company’s consolidated subsidiaries in Americas, and 19 million yen in other. 2 The Company recorded a loss on business restructuring of 1,050 million yen such as dismissal costs and a loss on disposal of products resulting from withdrawal in extraordinary losses in the three months ended June 30, 2026. The breakdown is as follows: 950 million yen in the Americas region, and 100 million yen in the European region.
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10 (Notes to Segment Information, etc.) I. Three months ended June 30, 2025 (April 1, 2025 to June 30, 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 51,817 64,418 46,274 36,528 199,039 – 199,039 Inter-segment sales or transfers 31,900 213 989 3,101 36,204 (36,204) – Total 83,717 64,631 47,264 39,630 235,243 (36,204) 199,039 Segment income (Operating income (loss)) 478 1,627 (327) 3,836 5,614 1,363 6,977 (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 II. Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) 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 53,402 69,147 50,399 39,329 212,279 – 212,279 Inter-segment sales or transfers 32,946 125 1,000 3,146 37,219 (37,219) – Total 86,349 69,273 51,399 42,476 249,499 (37,219) 212,279 Segment income (Operating income (loss)) 4,168 519 (352) 4,343 8,678 (359) 8,319 (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 (Significant Subsequent Events) Not applicable
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11 3. Supplementary Information (1) Explanatory Material (In millions of yen, unless otherwise indicated) FYE3/2026 FYE3/2027 1Q 2Q 3Q 4Q Full year 1Q Consolidated operating results (Lower: Net sales ratio) Net sales 199,039 203,216 201,083 223,004 826,344 212,279 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating income 6,977 5,887 6,436 11,733 31,034 8,319 3.5% 2.9% 3.2% 5.3% 3.8% 3.9% Ordinary income 4,032 4,694 5,250 9,507 23,484 6,350 2.0% 2.3% 2.6% 4.3% 2.8% 3.0% Extraordinary income – (431) (2,513) (5,336) (8,282) (899) – (0.2%) (1.3%) (2.4%) (1.0%) (0.4%) Profit attributable to owners of parent 1,190 1,909 620 9,150 12,871 1,928 0.6% 0.9% 0.3% 4.1% 1.6% 0.9% Net sales by region (Lower: Net sales ratio) Japan 50,762 52,285 52,439 56,103 211,591 52,441 25.5% 25.7% 26.1% 25.2% 25.6% 24.7% Americas 65,358 69,021 62,988 69,831 267,200 70,222 32.8% 34.0% 31.3% 31.3% 32.3% 33.1% Europe 41,726 39,314 42,232 50,308 173,583 45,796 21.0% 19.3% 21.0% 22.6% 21.0% 21.6% Asia and other areas 41,191 42,594 43,421 46,761 173,969 43,819 20.7% 21.0% 21.6% 21.0% 21.1% 20.6% Total 199,039 203,216 201,083 223,004 826,344 212,279 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Net sales / Operating income by location Japan Net sales 83,717 89,098 88,558 90,787 352,161 86,349 Operating income 478 1,425 4,201 3,087 9,192 4,168 Operating margin 0.6% 1.6% 4.7% 3.4% 2.6% 4.8% Americas Net sales 64,631 68,261 61,777 68,921 263,591 69,273 Operating income 1,627 1,359 287 2,195 5,469 519 Operating margin 2.5% 2.0% 0.5% 3.2% 2.1% 0.7% Europe Net sales 47,264 45,173 48,192 56,832 197,462 51,399 Operating income (327) (878) (1,104) 1,249 (1,061) (352) Operating margin (0.7%) (1.9%) (2.3%) 2.2% (0.5%) (0.7%) Asia and other areas Net sales 39,630 41,611 42,014 44,475 167,732 42,476 Operating income 3,836 4,443 4,397 4,895 17,573 4,343 Operating margin 9.7% 10.7% 10.5% 11.0% 10.5% 10.2% Deletion Net sales (36,204) (40,928) (39,460) (38,011) (154,604) (37,219) Operating income 1,363 (462) (1,345) 304 (140) (359) Total Net sales 199,039 203,216 201,083 223,004 826,344 212,279 Operating income 6,977 5,887 6,436 11,733 31,034 8,319 Operating margin 3.5% 2.9% 3.2% 5.3% 3.8% 3.9%
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12 (In millions of yen, unless otherwise indicated) FYE3/2026 FYE3/2027 1Q 2Q 3Q 4Q Full year 1Q Net sales / Operating income by business applications Bearing and Others Net sales 82,987 84,672 84,166 97,063 348,890 89,984 Operating income 2,263 2,291 2,177 5,525 12,256 2,979 Operating margin 2.7% 2.7% 2.6% 5.7% 3.5% 3.3% CVJ/Axle Net sales 116,051 118,544 116,916 125,941 477,453 122,294 Operating income 4,714 3,596 4,258 6,208 18,778 5,339 Operating margin 4.1% 3.0% 3.6% 4.9% 3.9% 4.4% Total Net sales 199,039 203,216 201,083 223,004 826,344 212,279 Operating income 6,977 5,887 6,435 11,733 31,034 8,319 Operating margin 3.5% 2.9% 3.2% 5.3% 3.8% 3.9% Capital expenditures / depreciation and amortization Capital expenditures 5,015 8,027 8,058 11,363 32,464 7,147 Depreci- ation and amorti- zation Domestic 4,116 4,061 4,012 4,137 16,327 3,974 Overseas 5,814 5,946 6,170 6,235 24,166 5,922 Total 9,930 10,007 10,182 10,372 40,493 9,897 R&D expenditures 5,020 4,541 5,122 5,266 19,950 5,232 Ratio of R&D expenditures to net sales 2.5% 2.2% 2.5% 2.4% 2.4% 2.5% Inventories 243,934 246,004 260,697 245,850 245,850 245,608 Inventory turnover ratio (times) 3.3 3.3 3.1 3.6 3.4 3.5 Interest-bearing debts Loans 264,882 262,527 263,350 289,173 289,173 272,396 Bonds 70,000 70,000 80,000 30,000 30,000 30,000 Convertible-bond- type bonds with share acquisition rights 22,023 22,010 – – – – Total 356,905 354,538 343,350 319,173 319,173 302,396 Major management indicators Ordinary income ratio to total assets 1.9% 2.2% 2.4% 4.3% 2.7% 2.9% Return on assets (ROA) 0.6% 0.9% 0.3% 4.1% 1.5% 0.9% Return on equity (ROE) 2.1% 3.2% 1.0% 12.8% 4.9% 2.6% Shareholder’s equity ratio 27.0% 27.9% 31.2% 33.8% 33.8% 34.6% Net assets per share (yen) 435.92 435.96 465.31 499.40 499.40 504.47 Net income per share (yen) 2.25 3.61 1.13 16.66 23.40 3.24 Employees Domestic (persons) 8,406 8,288 8,204 8,134 8,134 8,240 Overseas (persons) 13,565 13,476 13,353 13,171 13,171 12,726 Total (persons) 21,971 21,764 21,557 21,305 21,305 20,966 Exchange rates Average Dollar (yen) 144.61 147.42 154.10 156.79 150.73 159.34 Euro (yen) 163.77 172.28 179.33 183.60 174.75 185.26 At term end Dollar (yen) 144.51 148.60 156.41 159.76 159.76 161.93 Euro (yen) 169.53 174.26 183.76 183.11 183.11 185.00