Presentation Materials for the Second-Quarter Financial Results Briefing, Fiscal Year Ending March 2027 | NTN CORPORATION (6472) timely disclosure

Worth reading

66In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

150

¥100 million (increase over the previous full-year revenue forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation

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

Net Sales¥4,136 100 million+2.8%

Operating profit¥174 100 million+34.9%

Ordinary income¥122 100 million+40.2%

Net income¥55 100 million+77.4%

Operating profit margin4.2%, up 1.0 percentage point year on year

Results for the three months of the current quarterRevenue of ¥201.3 billion and operating profit of ¥9.0 billion (figures confirmed from the chart showing quarterly trends by business format)

Full-year earnings forecast

Net Sales

¥8,250 100 million

Operating profit

¥330 100 million

Ordinary income

¥210 100 million

Extraordinary Gains and Losses

¥60 100 million

Net income

¥150 100 million

Capital expenditure

¥360 100 million

Free cash flow

¥360 100 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Structural reforms in the first half are progressing as planned

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

First-half operating profit

Selling price levels40

Effects of structural reforms24

Variable costs15

Foreign Exchange42

Volume and other factors-61

Personnel and other expenses-14

Integration costs-4

Tariff impact-6

Selling price pass-through11

Change from the previously announced full-year operating profit forecast

Selling price levels18

Effects of structural reforms19

Foreign Exchange35

Personnel and other expenses-32

Integration costs-44

Variable costs-28

Tariff impact-13

Selling price pass-through11

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

Exchange rate

1USD¥154.7 per US dollar

1EURO¥179.6 per euro

New initiatives

Completed the rollout of the FIRST fast-moving inventory immediate-delivery system to all domestic and overseas sales companies
Launch of a condition monitoring system (CMS) for industrial equipment
Started accepting orders for bearing units with built-in sensors for machine-tool spindles
Development of a vehicle vibration prediction and analysis model incorporating CVJ analysis technology and other technologies
Rollout of the high-speed, long-life SP-1 grease

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

Inventories¥2,377 100 million
Year on year against the same period last year-¥8.2 billion (vs. the end of March 2026)
Inventory turnover3.5 times
Year on year against the same period last year3.4 times at the end of the previous March
Free cash flow¥247 100 million
Year on year against the same period last year+¥10.4 billion
Aftermarket revenue¥392 100 million
Year on year against the same period last yearDecreased from ¥39.6 billion in the prior-year period
Aftermarket revenue as a percentage of total revenue18.6 %
Global share of fluid dynamic bearingsOver 40%

Segment results

Bearings and Other

Net Sales

¥1,793 100 million

Year on year against the same period last year+¥11.6 billion

CVJ Axles

Net Sales

¥2,343 100 million

Year on year against the same period last year-¥300 million

Operating profit

Bearings and Other

¥65 100 million

CVJ Axles

¥109 100 million

Medium-term management plan targets

Proceeding with the DRIVE NTN100 Final structural reform program as planned. First-half costs: ¥2.4 billion; benefits: ¥2.4 billion. Details of the target figures and target fiscal year: Not disclosed

Financial targets

Net debt-to-equity ratio

Full-year outlook for the fiscal year ending March 20270.6

Adjusted net debt-to-equity ratio

Full-year outlook for the fiscal year ending March 20270.5

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

Business integration costs44

Tariff impact13

Market Size / Share

More than 40% global share of fluid dynamic bearings (according to the Company)

Capital expenditures

¥144 100 million first-half actual

Annual Dividend

Annual¥13 per share

Interim¥6.5 per share

End of period¥6.5 per share

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥4,136 100 million (YoY +2.8%)
Operating profit	¥174 100 million (YoY +34.9%)
Ordinary income	¥122 100 million (YoY +40.2%)
Net income	¥55 100 million (YoY +77.4%)
Operating profit margin	4.2%, up 1.0 percentage point year on year
Results for the three months of the current quarter	Revenue of ¥201.3 billion and operating profit of ¥9.0 billion (figures confirmed from the chart showing quarterly trends by business format)
Full-year earnings forecast	Net Sales ¥8,250 100 million / Operating profit ¥330 100 million / Ordinary income ¥210 100 million / Extraordinary Gains and Losses ¥60 100 million / Net income ¥150 100 million / Capital expenditure ¥360 100 million / Free cash flow ¥360 100 million
Self-assessment against the plan	Structural reforms in the first half are progressing as planned
Segment results	Bearings and Other Net Sales ¥1,793 100 million / Year on year against the same period last year +¥11.6 billion / CVJ Axles Net Sales ¥2,343 100 million / Year on year against the same period last year -¥300 million / Operating profit Bearings and Other ¥65 100 million / CVJ Axles ¥109 100 million
Breakdown of Factors Affecting the Change	First-half operating profit Selling price levels 40 / Effects of structural reforms 24 / Variable costs 15 / Foreign Exchange 42 / Volume and other factors -61 / Personnel and other expenses -14 / Integration costs -4 / Tariff impact -6 / Selling price pass-through 11 / Change from the previously announced full-year operating profit forecast Selling price levels 18 / Effects of structural reforms 19 / Foreign Exchange 35 / Personnel and other expenses -32 / Integration costs -44 / Variable costs -28 / Tariff impact -13 / Selling price pass-through 11
Key KPIs	Indicator name Inventories / Value ¥2,377 100 million / Year on year against the same period last year -¥8.2 billion (vs. the end of March 2026), Indicator name Inventory turnover / Value 3.5 times / Year on year against the same period last year 3.4 times at the end of the previous March, Indicator name Free cash flow / Value ¥247 100 million / Year on year against the same period last year +¥10.4 billion, Indicator name Aftermarket revenue / Value ¥392 100 million / Year on year against the same period last year Decreased from ¥39.6 billion in the prior-year period, Indicator name Aftermarket revenue as a percentage of total revenue / Value 18.6 % / Year on year against the same period last year Not disclosed, Indicator name Global share of fluid dynamic bearings / Value Over 40% / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Exchange rate 1USD ¥154.7 per US dollar / 1EURO ¥179.6 per euro
Risk amount incorporated into the outlook	Business integration costs 44 / Tariff impact 13
Medium-term management plan targets	Proceeding with the DRIVE NTN100 Final structural reform program as planned. First-half costs: ¥2.4 billion; benefits: ¥2.4 billion. Details of the target figures and target fiscal year: Not disclosed
Financial targets	Net debt-to-equity ratio Full-year outlook for the fiscal year ending March 2027 0.6 / Adjusted net debt-to-equity ratio Full-year outlook for the fiscal year ending March 2027 0.5
Annual Dividend	Annual ¥13 per share / Interim ¥6.5 per share / End of period ¥6.5 per share
Capital expenditures	¥144 100 million (first-half actual)
Market Size / Share	More than 40% global share of fluid dynamic bearings (according to the Company)
New initiatives	Completed the rollout of the FIRST fast-moving inventory immediate-delivery system to all domestic and overseas sales companies, Launch of a condition monitoring system (CMS) for industrial equipment, Started accepting orders for bearing units with built-in sensors for machine-tool spindles, Development of a vehicle vibration prediction and analysis model incorporating CVJ analysis technology and other technologies, Rollout of the high-speed, long-life SP-1 grease

Items this document does not state (10)

Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesPayout ratioAcquisition of treasury sharesOrders received and order backlogKey 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.

In the first half, higher sales volume for industrial machinery, improved selling prices, reductions in variable and fixed costs, and the weaker yen drove increases in revenue and profit. The full-year revenue forecast was revised upward due to higher sales and the foreign-exchange benefit from the weaker yen in the first half. Operating profit is expected to increase due to higher scale, improved selling prices and foreign-exchange effects, but the forecast was left unchanged from the previous forecast because it incorporates ¥4.4 billion in costs related to the management integration with NSK Ltd.

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