Supplementary Explanation Materials for Q3 FY2026 Financial Results

Performance Overview

For the cumulative third quarter of FY2026, net sales were JPY 49,825 million, nearly flat with a 0.2% increase year-over-year. Operating income was JPY 4,932 million, down 5.5% year-over-year; ordinary income was JPY 5,083 million, down 9.8% year-over-year; net income attributable to owners of parent for the quarter was JPY 3,876 million, down 2.4% year-over-year. Quarterly net income per share was JPY 132.98, net assets per share were JPY 2,666.21, and dividend per share was JPY 42.00, all showing an increasing trend.

Segment Performance and Capital Investment

By segment, net sales of General Bearing Equipment were JPY 11,605 million (up 2.1% year-over-year), with operating income of JPY 1,216 million (up 18.0% year-over-year), showing strong performance. Conversely, Structural Equipment sales declined to JPY 7,554 million (down 1.6%) and operating income to JPY 733 million (down 40.4%). Automotive Bearing Equipment sales were JPY 25,279 million (up 0.5%), with operating income of JPY 2,715 million (down 0.3%), remaining steady. Building Equipment sales decreased to JPY 4,031 million (down 4.6%), but operating income rose slightly to JPY 169 million (up 1.9%). Capital investment increased significantly by 49.4% year-over-year to JPY 4,969 million, while depreciation expense slightly decreased to JPY 2,504 million.