Further Profitable Growth and Continued Creation of Corporate Value

「The FY2026 outlook remains unchanged from the time of the full-year results announcement.」

「Against this backdrop, revenue for the first half increased 2.2% year on year to ¥36,862 million. The increase reflected the weaker yen, although recovery in demand for internal-combustion vehicles in Europe was delayed and the company’s capture of demand in the U.S. aerospace and defense market was slower than expected. Operating profit increased 66.7% to ¥1,320 million, helped by a ¥1,050 million gain on the sale of fixed assets recorded under other income following the transfer in February 2026 of certain fixed assets owned by TN GEORGIA, INC., a U.S. consolidated subsidiary, as part of the restructuring. Despite downward pressure from higher labor and resource costs, interim loss attributable to owners of the parent improved by ¥841 million from the previous interim period but remained a loss of ¥124 million.」

「Operating loss was ¥22,336 million, a decline of ¥23,150 million from the previous period. Loss for the year attributable to owners of the parent was ¥27,214 million, a decline of ¥28,126 million.」

「Revenue for the first half declined 10.5% year on year to ¥36,055 million, primarily in Europe, due to the prolonged downturn in the automobile industry and a decline in market share caused by price competition. Although the company is working to reduce procurement and production costs as one of the measures under the new medium-term management plan announced on 17 February 2025, operating profit declined 63.5% to ¥791 million due to lower sales, price competition with competitors and higher labor costs. Interim loss attributable to owners of the parent was ¥965 million, a deterioration of ¥2,668 million from the previous interim period.」

「We recognize that a major transformation of our business and cost structures and the generation of cash are essential to restoring the Group’s high-profitability profile.」

「Revenue for the first half was ¥40,304 million, up 6.9% year on year. Although sales volumes declined in the Precision Component Business due to production and shipment suspensions by certain Japanese automakers and delayed recovery in demand for general industrial equipment and machine tools, the weaker yen contributed to the increase. Operating profit increased 17.9% to ¥2,170 million, despite lower sales, inventory valuation losses, a lag in passing through higher raw-material costs and higher labor costs, because the plant closure costs recorded in the previous period did not recur and cost improvements took effect. Profit for the interim period attributable to owners of the parent increased 86.9% to ¥1,703 million.」

「We are steadily executing our management strategy, achieving further profitable growth and working each day to become a shining company that continues to create corporate value.」

「Revenue for the year increased 1.6% year on year to ¥80,337 million, despite sluggish sales of major products in the core Precision Component Business due to a global decline in machine-tool orders and inventory adjustments by customers. The increase reflected the pass-through of higher energy and raw-material costs into selling prices and the weaker yen.」

「Revenue for the first nine months increased 1.3% year on year to ¥59,189 million, despite sluggish sales of major products in the core Precision Component Business due to a global decline in machine-tool orders and inventory adjustments by customers. Operating profit increased 4.3% to ¥2,776 million, despite lower profit excluding foreign exchange effects and ¥1,916 million in costs associated with closing the stamping plant in the Netherlands, because the ¥2.4 billion in European roller business restructuring costs recorded in the previous period did not recur. Profit for the quarter attributable to owners of the parent declined 20.2% year on year to ¥1,192 million.」

「Revenue for the first half increased 3.4% year on year to ¥39,565 million, despite sluggish sales volumes for major products in the core Precision Component Business due to delayed recovery in automobile production, a global decline in machine-tool orders and inventory adjustments by customers. The increase also reflected the pass-through of higher energy and raw-material costs into selling prices and the weaker yen. Operating profit increased 40.3% year on year to ¥1,896 million, despite lower profit excluding foreign exchange effects and ¥1.2 billion in costs associated with the closure of the stamping plant in the Netherlands, because the ¥2.3 billion in costs for the European roller business restructuring recorded in the previous period did not recur. Profit for the quarter attributable to owners of the parent increased 128.2% year on year to ¥911 million.」

「For fiscal 2023, the final year of the medium-term management strategy, we will continue to focus on expanding our growth strategy and thoroughly pursue initiatives centered on improving profit margins, while providing greater corporate value to our shareholders, customers, business partners and Group employees.」

「We will continue taking effective measures, centered on cost improvements and the execution of our growth strategy, to achieve an early improvement in performance.」

「We will continue taking effective measures, centered on cost improvements and the execution of our growth strategy, to achieve our management targets for the fiscal year ending December 2022.」

「We will operate our business to execute the medium-term management strategy launched in fiscal 2021 and running through fiscal 2023, restore performance, and provide greater corporate value to our shareholders, customers, business partners and Group employees.」

「Against this backdrop, demand for machine tools, supported by stronger capital investment across manufacturing, and demand for ceramic balls, driven by the accelerating shift toward EVs, remained firm. Revenue for the year increased 30.6% year on year to ¥67,926 million. Operating profit increased 61.1% to ¥5,816 million, reflecting higher revenue and cost improvements, although ¥500 million was recorded under other expenses for measures addressing defects in certain products delivered to a specific customer. Profit for the year attributable to owners of the parent increased 89.4% to ¥3,554 million.」

「Against this backdrop, demand for machine tools and automobiles, particularly EVs, remained firm, and revenue for the first nine months increased 39.3% year on year to ¥51,199 million. Operating profit increased 153.6% to ¥5,379 million, while profit for the quarter attributable to owners of the parent increased 212.9% to ¥3,352 million.」

「Revenue for the first half increased 44.6% year on year to ¥34,738 million, while operating profit increased 173.4% to ¥3,625 million. Profit for the quarter attributable to owners of the parent increased 286.6% to ¥2,680 million. As both revenue and profit are expected to exceed the previous forecast, the full-year consolidated earnings forecast for the fiscal year ending December 2021, announced on 12 February 2021, has been revised upward.」

「As a result, revenue for the first quarter increased 18.7% year on year to ¥16,892 million, operating profit increased 80.8% to ¥1,792 million, and profit for the quarter attributable to owners of the parent increased 92.0% to ¥1,327 million.」

「We aim to become a shining company that achieves “further profitable growth” and continues to create higher corporate value.」

「Although the challenging business environment continues, the Group will operate to maintain and improve services for customers while continuing to focus on initiatives to return the Group to a growth trajectory.」

「We will focus on initiatives to return the Group to a growth trajectory.」

「Although the challenging business environment continues, we are proactively treating it as an opportunity to strengthen our corporate foundation. Under our corporate philosophy of “achieving further profitable growth and becoming a shining company that continues to create corporate value,” we will grow as one team, provide greater value to customers, and work to restore profitability and corporate value.」

「Although the challenging business environment continues, we view it as an opportunity to strengthen our corporate foundation. Guided by “Agility” as our motto and our corporate philosophy of “achieving ‘Further Profitable Growth’ and becoming a shining company that continues to create corporate value,” we will work as one to improve the efficiency of our business activities.」

「Although challenging business conditions continue, under its corporate philosophy of becoming a shining company that achieves “Further Profitable Growth” and continues to create corporate value on an ongoing basis, the Group will work together across the organization to improve the efficiency of its business activities.」

「Although challenging business conditions continue, under its corporate philosophy of becoming a shining company that achieves “Further Profitable Growth” and continues to create corporate value on an ongoing basis, the Group has begun achieving substantial profitable growth. As the “new Tsubaki-Nakashima,” it will continue working to contribute even more to society and its customers.」

「Revenue for the year increased 40.5% year on year to ¥74,832 million (up 39.3% excluding the foreign exchange translation impact of overseas consolidated subsidiaries, including ¥31,974 million from the PBC division acquired from U.S.-based NN during the previous consolidated fiscal year). Operating profit increased 58.8% year on year to ¥9,942 million, and profit for the year attributable to owners of the parent increased 156.6% to ¥6,819 million.」

「As described above, under its corporate philosophy of becoming a shining company that achieves “Further Profitable Growth” and continues to create corporate value on an ongoing basis, the Group has begun achieving substantial profitable growth. As the “new Tsubaki-Nakashima,” it will continue working to become a company that can contribute even more to society and its customers.」

「Revenue for the first six months of the current consolidated fiscal year increased 88.4% year on year to ¥38,901 million (up 86.2% excluding the foreign exchange translation impact of overseas consolidated subsidiaries, including ¥16,989 million from the former PBC division acquired from U.S.-based NN during the previous consolidated fiscal year). Operating profit increased 55.9% year on year to ¥5,394 million (up 62.4% excluding one-time expenses and the foreign exchange translation impact, including ¥1,499 million from the former PBC division). Profit for the quarter attributable to owners of the parent increased 54.4% year on year to ¥3,513 million (up 61.1% excluding one-time expenses and the foreign exchange translation impact, including ¥1,105 million attributable to the former PBC division).」

「Amid these conditions, we continued our efforts to improve performance. Revenue for the first quarter cumulative period increased 93.6% year on year to ¥19,490 million (up 91.4% excluding the foreign exchange translation impact from overseas consolidated subsidiaries; revenue from the former PBC division acquired from NN in the United States in the previous fiscal year was ¥8,634 million). Operating profit increased 70.9% to ¥2,914 million (up 70.5% excluding one-time expenses and the foreign exchange translation impact; operating profit from the former PBC division was ¥925 million). Profit for the quarter attributable to owners of the parent increased 79.1% to ¥1,836 million (up 78.2% excluding one-time expenses and the foreign exchange translation impact; profit attributable to owners of the parent from the former PBC division was ¥643 million).」

「Operating profit after adjustment for one-time expenses reached a record high of ¥6,057 million.」

「Revenue for the second quarter cumulative period increased 12.1% year on year to ¥20,653 million, outpacing macroeconomic growth (up 13.8% excluding the foreign exchange translation impact from the appreciation of the yen on overseas consolidated subsidiaries). Although expenses were incurred during the period in connection with activities related to the acquisition of the Precision Bearing Components business operated by the NN, INC. (NASDAQ:NNBR) group, profit for the quarter attributable to owners of the parent increased 13.0% to ¥2,276 million (up 12.3% excluding one-time expenses and the foreign exchange translation impact from the appreciation of the yen).」

「Amid these conditions, we continued our efforts to improve performance. Revenue for the first quarter cumulative period increased 12.6% year on year to ¥10,065 million, outpacing macroeconomic growth (up 16.1% excluding the foreign exchange translation impact from the appreciation of the yen on overseas consolidated subsidiaries). Profit for the quarter attributable to owners of the parent increased 6.5% to ¥1,025 million (up 11.3% excluding the foreign exchange translation impact). Operating profit increased 4.8% to ¥1,705 million (up 11.0% excluding the foreign exchange translation impact).」

「Profit for the year attributable to owners of the parent was ¥4,632 million, exceeding last year's record high of ¥4,476 million, up 3.5% year on year (up 9.0% excluding the foreign exchange translation impact from the appreciation of the yen on overseas consolidated subsidiaries).」

「Accordingly, under its corporate philosophy of becoming a shining company that achieves “Further Profitable Growth” and continues to create corporate value, the Group...」

「The corporate philosophy is to become a shining company that achieves “Further Profitable Growth” and continues to create corporate value.」