Worth reading
44Recurring
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
-14
¥100 million (year-on-year change in operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter (interim period) of the fiscal year ending March 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,760 billion+105.2%
Operating profit¥84 billion+85.1%
Ordinary income¥76 billion+74.1%
Net income¥44 billion+68.1%
Operating profit margin4.8 %
Results for the three months of the current quarter
Second quarter of the fiscal year ending March 2027 (three months)
Net Sales
¥896 billion
Operating profit
¥41 billion
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Foreign exchange impact and sales impact¥15 billion
- Foreign exchange impact and material cost ratio impact¥-18 billion
- Value-added¥-12 billion
- Increase in personnel expenses, including wages and salaries¥-14 billion
- Decrease in personnel expenses, including retirement benefit expenses¥4 billion
- Increase in expenses, including logistics costs¥-8 billion
- Decrease in expenses and other costs¥7 billion
New initiatives
- Privatization and delisting of 両毛システムズ through a tender offer for its shares
- Investment in India of approximately ¥10 billion during the mid-term plan period
- Integration of production facilities in Indonesia
- Restructuring of development and production facilities in Europe
- Expansion of the vehicle models covered by rare-earth-free and heavy-rare-earth-free products
- Joint development with 三恵技研 and FMC of alternative materials for high-performance magnets
Key KPIsA metric the company considers important as a management benchmark.
- Production volume of major four-wheel vehicle customers-9.5 % year on year
- Production volume of major motorcycle customers8.1 % year on year
- Four-wheel vehicle production volume in Japan7.2 % year on year
- Four-wheel vehicle production volume in China-49.8 % year on year
- Four-wheel vehicle production volume in Asia-16.3 % year on year
- Motorcycle production volume in India14.5 % year on year
- Motorcycle production volume in Indonesia6 % year on year
- Motorcycle production volume in Thailand4.3 % year on year
- Motorcycle production volume in Vietnam2.3 % year on year
- Motorcycle production volume in Brazil7.5 % year on year
Segment results
- Transportation equipment-related businessNet Sales¥1,647 billionOperating profit¥74 billionOperating profit year-on-year_pct89.3
- Information Services businessNet Sales¥90 billionOperating profit¥7 billionOperating profit year-on-year_pct62.8
- Other BusinessesNet Sales¥22 billionOperating profit¥2 billionOperating profit year-on-year_pct56.3
Medium-term management plan targets
- TargetInvestment in IndiaTarget valueOn the order of ¥10 billion during the mid-term plan periodTarget fiscal yearDuring the mid-term plan period
- TargetStart of mass production of next-generation productsTarget valueNext-generation electric power steering systems and other productsTarget fiscal year2026 onward
Capital expenditures
¥66 100 million cumulative through the second quarter of the current fiscal year; expenditures for the acquisition of fixed assets
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥1,760 billion (YoY +105.2%) |
| Operating profit | ¥84 billion (YoY +85.1%) |
| Ordinary income | ¥76 billion (YoY +74.1%) |
| Net income | ¥44 billion (YoY +68.1%) |
| Operating profit margin | 4.8 % |
| Results for the three months of the current quarter | Net Sales ¥896 billion / Operating profit ¥41 billion / Subject Second quarter of the fiscal year ending March 2027 (three months) |
| Segment results | Segment Transportation equipment-related business / Net Sales ¥1,647 billion / Operating profit ¥74 billion / Operating profit year-on-year_pct 89.3, Segment Information Services business / Net Sales ¥90 billion / Operating profit ¥7 billion / Operating profit year-on-year_pct 62.8, Segment Other Businesses / Net Sales ¥22 billion / Operating profit ¥2 billion / Operating profit year-on-year_pct 56.3 |
| Breakdown of Factors Affecting the Change | Factors Foreign exchange impact and sales impact / Amount ¥15 billion, Factors Foreign exchange impact and material cost ratio impact / Amount ¥-18 billion, Factors Value-added / Amount ¥-12 billion, Factors Increase in personnel expenses, including wages and salaries / Amount ¥-14 billion, Factors Decrease in personnel expenses, including retirement benefit expenses / Amount ¥4 billion, Factors Increase in expenses, including logistics costs / Amount ¥-8 billion, Factors Decrease in expenses and other costs / Amount ¥7 billion |
| Key KPIs | Indicator name Production volume of major four-wheel vehicle customers / Value -9.5 % year on year, Indicator name Production volume of major motorcycle customers / Value 8.1 % year on year, Indicator name Four-wheel vehicle production volume in Japan / Value 7.2 % year on year, Indicator name Four-wheel vehicle production volume in China / Value -49.8 % year on year, Indicator name Four-wheel vehicle production volume in Asia / Value -16.3 % year on year, Indicator name Motorcycle production volume in India / Value 14.5 % year on year, Indicator name Motorcycle production volume in Indonesia / Value 6 % year on year, Indicator name Motorcycle production volume in Thailand / Value 4.3 % year on year, Indicator name Motorcycle production volume in Vietnam / Value 2.3 % year on year, Indicator name Motorcycle production volume in Brazil / Value 7.5 % year on year |
| Medium-term management plan targets | Target Investment in India / Target value On the order of ¥10 billion during the mid-term plan period / Target fiscal year During the mid-term plan period, Target Start of mass production of next-generation products / Target value Next-generation electric power steering systems and other products / Target fiscal year 2026 onward |
| Capital expenditures | ¥66 100 million (cumulative through the second quarter of the current fiscal year; expenditures for the acquisition of fixed assets) |
| New initiatives | Privatization and delisting of 両毛システムズ through a tender offer for its shares, Investment in India of approximately ¥10 billion during the mid-term plan period, Integration of production facilities in Indonesia, Restructuring of development and production facilities in Europe, Expansion of the vehicle models covered by rare-earth-free and heavy-rare-earth-free products, Joint development with 三恵技研 and FMC of alternative materials for high-performance magnets |
Items this document does not state (17)
Gross Profit MarginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket 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.In the Transportation Equipment business, strong motorcycle operations in India and Indonesia and the foreign exchange impact of the weaker yen contributed to higher revenue, while higher material costs, particularly copper, and lower sales in China and Europe reduced profit. In the Information Services business, the decline following the previous year's municipal systems standardization projects and lower revenue in the Mobility business resulted in lower revenue and profit.
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