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Financial results presentation7287NIPPON SEIKI CO.,LTD.Automobiles and transportation equipment

Transcript of the Financial Results Briefing for the Fiscal Year Ending March 2026 (Including Q&A)

For the fiscal year ended March 2026, revenue and profit increased, driven by higher sales of motorcycle meters and cost reductions. For the fiscal year ending March 2027, the company expects revenue from four-wheel vehicle meters to decline but plans to increase operating profit through the motorcycle business and other areas. It also lowered the operating profit target under its medium-term management plan from ¥16.5 billion to ¥14.0 billion.

Worth reading
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
24
¥100 million (year-on-year increase in operating profit for the fiscal year ending March 2027)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings briefing transcriptFiscal year ending March 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥327,894 million+3.6%
Operating profit¥11,624 million+21.3%
Ordinary income¥13,875 million +48.5%profit before tax
Net income¥8,220 million +34.3%profit attributable to owners of the parent
Gross Profit Margin
Rate14.9
Year-on-year change (points)Improved from 14.6% in the previous year
Operating profit margin
Rate3.5
Year-on-year change (points)Improved from 3.0% in the previous year
Results for the three months of the current quarter
Revenue
¥93,532 million+5.6%
Operating profit
¥3,058 million-22.7%
Profit before quarterly income taxes
¥3,034 million-33.1%
Quarterly profit attributable to owners of the parent
¥1,612 million-57.1%
Full-year earnings forecast
Revenue
¥320,000 million
Operating profit
¥14,000 million
Profit for the period attributable to owners of the parent
¥10,000 million
Operating profit margin
4.4 %
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Revenue for the fiscal year ended March 2026102.5 %
Operating profit, fiscal year ended March 2026102.9 %
Profit attributable to owners of the parent for the fiscal year ended March 2026102.8 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Landed broadly in line with the initial plan / consolidated results ultimately landed at the planned level
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating profit for FY2026
Foreign Exchange Effects-121
Sales-volume effect3,968
Pricing and costs579
HUD one-time payment-740
Capitalization of design and development costs214
Stock acquisition-related expenses-700
Tariff impact-602
Fixed Costs-851
Other292
Year-on-year change in operating profit for the fiscal year ending March 2027
Decrease in units-700
Cost reductions and appropriate pricing3,300
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign Exchange¥150.00 per US dollar
Motorcycle demandDemand in ASEAN, India and Brazil is forecast at 35,000 thousand units in FY26, 35,700 thousand units in FY27, 37,400 thousand units in FY30 and 38,000 thousand units in FY35
New initiatives
  • Accelerate sales of motorcycle meters in emerging markets and strengthen production capacity
  • Develop and expand sales of motorcycle TFT liquid-crystal meters and bring production in-house through a joint venture with a Taiwanese TFT liquid-crystal manufacturer
  • Launch new HUD models, expand into compact vehicles, and begin full-scale supply for the new RAV4
  • Develop and expand sales of automotive sensor products
  • Begin accepting orders for Holfee3D
  • Begin sales of LumiPATH pre-commercial development products
  • Make Toyo Denso a wholly owned subsidiary and carry out PMI
  • Establish a Corporate Communications Department
Key KPIsA metric the company considers important as a management benchmark.
  • Honda sales mix29 %
    Year on year against the same period last yearUp 1 percentage point
  • Number of dialogues with investors, analysts and others138 times
  • PBR0.58 times
    Year on year against the same period last yearUp from 0.31 times
  • ROE3.7 %
    Year on year against the same period last yearUp from 2.8%
  • Mass-production results for liquid-level sensors1,500 10,000 units or more per year
  • Mass-production results for rotation sensors500 10,000 units or more per year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Higher sales volumes for motorcycle meters, with a sales-volume effect of ¥3.9 billion and a pricing and cost effect of ¥579 million. For TFT liquid-crystal meters, the company expects to increase selling prices by adding software to the hardware.
Segment results
Four-wheel vehicle meters
Revenue
¥174,316 million-1.8%
Operating profit
¥-1,785 million
Motorcycle meters
Revenue
¥82,291 million+16.6%
Operating profit
¥9,560 million+26.2%
Other automotive components
Revenue
¥10,627 million+6.2%
Operating profit
¥739 million
Consumer products
Revenue
¥13,881 million+2.3%
Operating profit
¥-307 million
Resin compounds
Revenue
¥8,374 million-8.7%
Operating profit
¥565 million-19.1%
Automobile Sales
Revenue
¥27,000 million+2.8%
Operating profit
¥1,332 million-8.8%
Other
Revenue
¥11,401 million+23.1%
Operating profit
¥1,667 million+49.6%
Medium-term management plan targets
Operating profit
Initial target¥16,500 million
Target fiscal yearFiscal year ending March 2027
Revised forecast¥14,000 million
Operating profit margin
Target5 %
Financial targets
ROE target5 % or times
Actual ROE3.7 % or times
P/B ratio target1 % or times
Actual PBR0.58 % or times
Market Size / Share
Motorcycle demand forecast
FY2635,000 thousand units
FY2735,700 thousand units
FY3037,400 thousand units
FY3538,000 thousand units
Number of employees
Number of Employees8,716 People Toyo Denso; as of 31 March 2025
Capital expenditures
¥14,912 million
Annual Dividend
Fiscal year ending March 2026
Interim¥40 per share
End of period¥40 per share
Annual¥80 per share
Fiscal year ending March 2027
Interim¥45 per share
End of period¥45 per share
Annual¥90 per share
Acquisition of treasury shares
Total acquisition price¥5,200 million planned for the fiscal year ending March 2027
Additional informationThe ¥2.0 billion share buyback announced in the fiscal year ended March 2026 could not be carried out
Contents of this document
ItemDetails
Document typeEarnings briefing transcript
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥327,894 million (YoY +3.6%)
Operating profit¥11,624 million (YoY +21.3%)
Ordinary income¥13,875 million (profit before tax) (YoY +48.5%)
Net income¥8,220 million (profit attributable to owners of the parent) (YoY +34.3%)
Gross Profit MarginRate 14.9 / Year-on-year change (points) Improved from 14.6% in the previous year
Operating profit marginRate 3.5 / Year-on-year change (points) Improved from 3.0% in the previous year
Results for the three months of the current quarterRevenue ¥93,532 million (YoY +5.6%) / Operating profit ¥3,058 million (YoY -22.7%) / Profit before quarterly income taxes ¥3,034 million (YoY -33.1%) / Quarterly profit attributable to owners of the parent ¥1,612 million (YoY -57.1%)
Full-year earnings forecastRevenue ¥320,000 million / Operating profit ¥14,000 million / Profit for the period attributable to owners of the parent ¥10,000 million / Operating profit margin 4.4 %
Progress against full-year forecastRevenue for the fiscal year ended March 2026 102.5 % / Operating profit, fiscal year ended March 2026 102.9 % / Profit attributable to owners of the parent for the fiscal year ended March 2026 102.8 %
Self-assessment against the planLanded broadly in line with the initial plan / consolidated results ultimately landed at the planned level
Segment resultsFour-wheel vehicle meters Revenue ¥174,316 million (YoY -1.8%) / Operating profit ¥-1,785 million / Motorcycle meters Revenue ¥82,291 million (YoY +16.6%) / Operating profit ¥9,560 million (YoY +26.2%) / Other automotive components Revenue ¥10,627 million (YoY +6.2%) / Operating profit ¥739 million / Consumer products Revenue ¥13,881 million (YoY +2.3%) / Operating profit ¥-307 million / Resin compounds Revenue ¥8,374 million (YoY -8.7%) / Operating profit ¥565 million (YoY -19.1%) / Automobile Sales Revenue ¥27,000 million (YoY +2.8%) / Operating profit ¥1,332 million (YoY -8.8%) / Other Revenue ¥11,401 million (YoY +23.1%) / Operating profit ¥1,667 million (YoY +49.6%)
Breakdown of Factors Affecting the ChangeYear-on-year change in operating profit for FY2026 Foreign Exchange Effects -121 / Sales-volume effect 3,968 / Pricing and costs 579 / HUD one-time payment -740 / Capitalization of design and development costs 214 / Stock acquisition-related expenses -700 / Tariff impact -602 / Fixed Costs -851 / Other 292 / Year-on-year change in operating profit for the fiscal year ending March 2027 Decrease in units -700 / Cost reductions and appropriate pricing 3,300
Key KPIsIndicator name Honda sales mix / Value 29 % / Year on year against the same period last year Up 1 percentage point, Indicator name Number of dialogues with investors, analysts and others / Value 138 times / Year on year against the same period last year Not disclosed, Indicator name PBR / Value 0.58 times / Year on year against the same period last year Up from 0.31 times, Indicator name ROE / Value 3.7 % / Year on year against the same period last year Up from 2.8%, Indicator name Mass-production results for liquid-level sensors / Value 1,500 10,000 units or more per year / Year on year against the same period last year Not disclosed, Indicator name Mass-production results for rotation sensors / Value 500 10,000 units or more per year / Year on year against the same period last year Not disclosed
Unit price and quantity metricsHigher sales volumes for motorcycle meters, with a sales-volume effect of ¥3.9 billion and a pricing and cost effect of ¥579 million. For TFT liquid-crystal meters, the company expects to increase selling prices by adding software to the hardware.
Number of employeesNumber of Employees 8,716 People (Toyo Denso; as of 31 March 2025) / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookForeign Exchange ¥150.00 per US dollar / Motorcycle demand Demand in ASEAN, India and Brazil is forecast at 35,000 thousand units in FY26, 35,700 thousand units in FY27, 37,400 thousand units in FY30 and 38,000 thousand units in FY35
Medium-term management plan targetsOperating profit Initial target ¥16,500 million / Target fiscal year Fiscal year ending March 2027 / Revised forecast ¥14,000 million / Operating profit margin Target 5 %
Financial targetsROE target 5 % or times / Actual ROE 3.7 % or times / P/B ratio target 1 % or times / Actual PBR 0.58 % or times
Annual DividendFiscal year ending March 2026 Interim ¥40 per share / End of period ¥40 per share / Annual ¥80 per share / Fiscal year ending March 2027 Interim ¥45 per share / End of period ¥45 per share / Annual ¥90 per share
Acquisition of treasury sharesTotal acquisition price ¥5,200 million (planned for the fiscal year ending March 2027) / Period Not disclosed / Additional information The ¥2.0 billion share buyback announced in the fiscal year ended March 2026 could not be carried out
Capital expenditures¥14,912 million
Market Size / ShareMotorcycle demand forecast FY26 35,000 thousand units / FY27 35,700 thousand units / FY30 37,400 thousand units / FY35 38,000 thousand units / Market share Not disclosed
New initiativesAccelerate sales of motorcycle meters in emerging markets and strengthen production capacity, Develop and expand sales of motorcycle TFT liquid-crystal meters and bring production in-house through a joint venture with a Taiwanese TFT liquid-crystal manufacturer, Launch new HUD models, expand into compact vehicles, and begin full-scale supply for the new RAV4, Develop and expand sales of automotive sensor products, Begin accepting orders for Holfee3D, Begin sales of LumiPATH pre-commercial development products, Make Toyo Denso a wholly owned subsidiary and carry out PMI, Establish a Corporate Communications Department
Items this document does not state (6)
Selling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioOrders 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.

For the fiscal year ended March 2026, increased sales of motorcycle meters in ASEAN, India and Brazil, cost-reduction initiatives, and appropriate pricing contributed to higher profit. For the fiscal year ending March 2027, the company expects sales of four-wheel vehicle meters to decline in markets including China, while anticipating contributions from motorcycle meters and further cost reductions. It also lowered the operating profit target under its medium-term management plan after taking into account soaring memory prices, higher crude oil prices, and rare-earth supply risks.

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Transcript of the Financial Results Briefing for the Fiscal Year Ending March 2026 (Including Q&A) | NIPPON SEIKI CO.,LTD. (7287) timely disclosure | Komori