Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | BROTHER INDUSTRIES,LTD. (6448) timely disclosure

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80Important

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Direction

Improvement

Direction inferred from the company’s description.

Scale

200

¥100 million

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 202713 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥2,488 100 million+14.3%

Operating profit¥273 100 million+21.2%

Ordinary income¥287 100 million+23.3%

Net income¥216 100 million+30.5%

Operating profit margin11 %

Results for the three months of the current quarter

Revenue

¥2,488 100 million

Business segment profit

¥266 100 million

Operating profit

¥273 100 million

Pretax profit

¥287 100 million

Profit for the year attributable to owners of the parent

¥216 100 million

Full-year earnings forecast

Revenue

¥10,000 100 million

Business segment profit

¥1,050 100 million

Operating profit

¥1,050 100 million

Pretax profit

¥1,100 100 million

Profit for the year from continuing operations

¥797 100 million

Profit for the year from discontinued operations

¥83 100 million

Profit for the year attributable to owners of the parent

¥880 100 million

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Second-Quarter Revenue

P&S66

IP20

Machinery57

Nissei2

P&H17

Foreign exchange impact165

Other-15

Second-Quarter Business Segment Profit

Foreign exchange impact52

Changes in revenue and other factors-7

Promotional expenses7

Selling Prices81

Manufacturing Costs-64

Selling, general and administrative expenses, etc.-25

Refund of additional US tariffs5

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

USD

¥155

EUR

¥180

Surging component pricesNo change from the previous forecast

The situation in the Middle East.Limited impact

U.S. tariff policyThe impact of tariff refunds and tariff rates is unchanged from the previous forecast.

New initiatives

Addition of MUTOH as a consolidated subsidiary to the IP business
Additional promotional spending to strengthen second-half sales in the P&S business
Plans to acquire ¥60 billion of treasury shares during the CS B2027 period

Key KPIsA metric the company considers important as a management benchmark.

Inventory turnover (months)5.3 Month
Equity ratio76.7 %
ROE9.3 %
Laser unit sales growth0 %
Year on year against the same period last yearYear on year
Inkjet unit sales growth4 %
Year on year against the same period last yearYear on year

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Sales value growth and unit sales growth are shown separately for laser and inkjet products.

Segment results

P&S

Revenue

¥1,515 100 million+9.4%

Business segment profit

¥184 100 million

Operating profit

¥185 100 million

Revenue

¥435 100 million+26.8%

Business segment profit

¥23 100 million

Operating profit

¥29 100 million

Machinery

Revenue

¥275 100 million+35.2%

Business segment profit

¥36 100 million

Operating profit

¥36 100 million

Nissei

Revenue

¥59 100 million+6.8%

Business segment profit

¥6 100 million

Operating profit

¥6 100 million

P&H

Revenue

¥169 100 million+20.8%

Business segment profit

¥20 100 million

Operating profit

¥20 100 million

Other

Revenue

¥36 100 million

Business segment profit

¥-2 100 million

Operating profit

¥-3 100 million

Medium-term management plan targets

Under the CS B2027 shareholder return policy, the annual dividend will have a floor of ¥100, the payout ratio will be approximately 40%, and ¥60 billion of treasury shares are planned to be acquired over 3 years.

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Surging Material Prices and the Situation in the Middle East

Impact on Original Plan¥-290 100 million

U.S. tariff policy

Impact on Original Plan¥190 100 million

Overall Risks, etc.

Impact on Original Plan¥-40 100 million

Orders received and order backlog

The trend in order value for industrial equipment in the Machinery business is shown in a graph, but the numerical table is Not disclosed.

Capital expenditures

¥530 100 million

Annual Dividend

Interim

¥60

End of period

¥60

Annual

¥120

Payout ratio

40 %

DetailsReference levels

Acquisition of treasury shares

¥600 100 million

PeriodThe 3-year period of CS B2027

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥2,488 100 million (YoY +14.3%)
Operating profit	¥273 100 million (YoY +21.2%)
Ordinary income	¥287 100 million (YoY +23.3%)
Net income	¥216 100 million (YoY +30.5%)
Operating profit margin	11 %
Results for the three months of the current quarter	Revenue ¥2,488 100 million / Business segment profit ¥266 100 million / Operating profit ¥273 100 million / Pretax profit ¥287 100 million / Profit for the year attributable to owners of the parent ¥216 100 million
Full-year earnings forecast	Revenue ¥10,000 100 million / Business segment profit ¥1,050 100 million / Operating profit ¥1,050 100 million / Pretax profit ¥1,100 100 million / Profit for the year from continuing operations ¥797 100 million / Profit for the year from discontinued operations ¥83 100 million / Profit for the year attributable to owners of the parent ¥880 100 million
Segment results	P&S Revenue ¥1,515 100 million (YoY +9.4%) / Business segment profit ¥184 100 million / Operating profit ¥185 100 million / IP Revenue ¥435 100 million (YoY +26.8%) / Business segment profit ¥23 100 million / Operating profit ¥29 100 million / Machinery Revenue ¥275 100 million (YoY +35.2%) / Business segment profit ¥36 100 million / Operating profit ¥36 100 million / Nissei Revenue ¥59 100 million (YoY +6.8%) / Business segment profit ¥6 100 million / Operating profit ¥6 100 million / P&H Revenue ¥169 100 million (YoY +20.8%) / Business segment profit ¥20 100 million / Operating profit ¥20 100 million / Other Revenue ¥36 100 million / Business segment profit ¥-2 100 million / Operating profit ¥-3 100 million
Breakdown of Factors Affecting the Change	Second-Quarter Revenue P&S 66 / IP 20 / Machinery 57 / Nissei 2 / P&H 17 / Foreign exchange impact 165 / Other -15 / Second-Quarter Business Segment Profit Foreign exchange impact 52 / Changes in revenue and other factors -7 / Promotional expenses 7 / Selling Prices 81 / Manufacturing Costs -64 / Selling, general and administrative expenses, etc. -25 / Refund of additional US tariffs 5
Key KPIs	Indicator name Inventory turnover (months) / Value 5.3 Month / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 76.7 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 9.3 % / Year on year against the same period last year Not disclosed, Indicator name Laser unit sales growth / Value 0 % / Year on year against the same period last year Year on year, Indicator name Inkjet unit sales growth / Value 4 % / Year on year against the same period last year Year on year
Unit price and quantity metrics	Sales value growth and unit sales growth are shown separately for laser and inkjet products.
Assumptions Underlying the Business Outlook	USD ¥155 / EUR ¥180 / Surging component prices No change from the previous forecast / The situation in the Middle East. Limited impact / U.S. tariff policy The impact of tariff refunds and tariff rates is unchanged from the previous forecast.
Risk amount incorporated into the outlook	Surging Material Prices and the Situation in the Middle East Impact on Original Plan ¥-290 100 million / U.S. tariff policy Impact on Original Plan ¥190 100 million / Overall Risks, etc. Impact on Original Plan ¥-40 100 million
Medium-term management plan targets	Under the CS B2027 shareholder return policy, the annual dividend will have a floor of ¥100, the payout ratio will be approximately 40%, and ¥60 billion of treasury shares are planned to be acquired over 3 years.
Annual Dividend	Interim ¥60 / End of period ¥60 / Annual ¥120
Payout ratio	40 %
Acquisition of treasury shares	¥600 100 million
Capital expenditures	¥530 100 million
Orders received and order backlog	The trend in order value for industrial equipment in the Machinery business is shown in a graph, but the numerical table is Not disclosed.
New initiatives	Addition of MUTOH as a consolidated subsidiary to the IP business, Additional promotional spending to strengthen second-half sales in the P&S business, Plans to acquire ¥60 billion of treasury shares during the CS B2027 period

Items this document does not state (9)

Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesFinancial targetsMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

This reflects strong second-quarter performance, an improved second-half outlook for industrial equipment in the Machinery business, and the expectation that the risks incorporated into the previous forecast will be limited. The second-quarter increase in profit was driven by the effects of pricing actions, a positive foreign exchange impact and higher sales.

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