Fiscal Year Ending March 2026 Financial Summary [IFRS] (Consolidated)

Overview of Performance

For the fiscal year ending March 2026, consolidated revenue was 1,924,950 million yen (2.2% increase YoY), operating profit before Operating Income was 75,679 million yen (16.5% increase), and Operating Income was 13,605 million yen (35.4% decrease). Net income attributable to owners of the parent company was 11,974 million yen (12.7% decrease). The revenue growth was primarily driven by increased sales in automobile segments outside Europe and China, while Operating Income decreased due to higher costs and other factors.

Performance by Segment

The automobile segment recorded revenue of 1,367,050 million yen (2.5% increase) and operating profit before Operating Income of 46,717 million yen (21.8% increase). The industrial machinery and bearings segment posted revenue of 347,067 million yen (1.5% decrease) and operating profit before Operating Income of 11,210 million yen (29.6% increase). The machine tools segment achieved revenue of 210,877 million yen (6.0% increase) and operating profit before Operating Income of 17,440 million yen (flat compared to the previous year).

Financial Position and Cash Flows

Total assets at the end of the fiscal year ending March 2026 amounted to 1,577,696 million yen, an increase of 12,340 million yen compared to the end of the previous fiscal year. Cash flow from operating activities increased by 108,495 million yen, cash flow from investing activities decreased by 5,274 million yen, and cash flow from financing activities decreased by 4,697 million yen. Cash and cash equivalents at the end of the period totaled 137,550 million yen.

Dividend Situation

The annual dividend for the fiscal year ending March 2026 was increased to 60 yen (30 yen at period-end, compared to 50 yen last year). The payout ratio was 159.5% and the dividend yield based on net income attributable to owners of the parent was 2.5%. The forecast for the fiscal year ending March 2027 is an annual dividend of 70 yen (35 yen at period-end).

Earnings Guidance for Fiscal Year Ending March 2027

The consolidated earnings forecast for fiscal year ending March 2027 projects revenue of 1,880,000 million yen, operating profit before Operating Income of 90,000 million yen, Operating Income of 75,000 million yen, income before income taxes of 70,000 million yen, and net income attributable to owners of the parent of 50,000 million yen. The exchange rates assumed are 155 yen to 1 US dollar and 180 yen to 1 euro.