Slide 1: Supplementary Materials For Financial Results For 1st Half of Fiscal 2025
Supplementary Materials For Financial Results For 1st Half of Fiscal 2025 August 6th 2025 THK CO.,LTD. Copyright THK CO., LTD. 2025. All rights reserved.
Slide 2: Contents
Contents Ⅰ. Financial Results for 1st Half of Fiscal 2025 ⚫ Financial Highlights P. 3 ⚫ Trend in Net Sales P. 4 ⚫ Operating Income – Change Factors P. 5 – 6 ⚫ Assets, Liabilities and Equity P. 7 Ⅱ. Progress of the New Management Policy “Early Realization of ROE of Over 10%” ⚫ Path to "ROE of Over 10
Slide 3: Ⅰ. Financial Results for 1st Half of Fiscal 2025
Ⅰ. Financial Results for 1st Half of Fiscal 2025 Copyright THK CO., LTD. 2025. All rights reserved. | 2
Slide 4: Financial Highlights
Financial Highlights Consolidated Revenue ◼ ¥176.2 billion (-2.0% YoY) The outlook of the global economy remained uncertain amid concerns such as increasing geopolitical risks including the situation in Ukraine and in the Middle East, continuing inflation, and U.S. tariff policy. Despite this si
Slide 5: Trend in Net Sales
Trend in Net Sales Regional Sales and Growth Rates by Industry Asia and ⚫ Taiwan +68.4％ 185,593 other ⚫ Singapore +32.8％ Y/Y 179,851 ⚫ India -0.8％ +6.4% 172,908 176,246 13,443 166,345 11,893 13,529 12,658 11,612 China ⚫ Machine tools +24.7％ 34,148 30,254 ⚫ General 35,742 +33.3％ Y/Y 25,771 32,787 Mac
Slide 6: (Ref.) Operating Income – Change Factors –(1/2)
(Ref.) Operating Income – Change Factors –(1/2) Industrial Machinery FY2024_1H -1.6 billions of yen FY2025_1H Billions of yen 3.9 -1.2 Increase in Fixed Cost 7.8 -2.3 Change in Variable -0.5 6.2 Foreign Exchange Cost Ratio Rate Difference -1.5 Effect due to Other income and Increased Sales other exp
Slide 7: (Ref.) Operating Income – Change Factors –(2/2)
(Ref.) Operating Income – Change Factors –(2/2) Automotive & Transportation FY2024_1H -0.6 billions of yen FY2025_1H Billions of yen 0.6 2.2 0.1 0 Other income and other expense -2.2 Effect due to -0.6 -0.1 Decrease in Decreased Sales Change in Variable Foreign Exchange Cost Ratio Rate Difference Fi
Slide 8: Assets, Liabilities and Equity
Assets, Liabilities and Equity Changes in Balance Sheet Total Assets 515,511 millions of yen Millions of yen Down ¥51,907 million from previous period ◼ Cash and Cash in Account Down 36,766 Cash Flows from Operating Activities 20,302 ◼ Current liabilities Up 14,383 Cash Flows from Investing Acti
Slide 9: Ⅱ. Progress of the New Management Policy “Early Realization of ROE of Over 10%”
Ⅱ. Progress of the New Management Policy “Early Realization of ROE of Over 10%” Copyright THK CO., LTD. 2025. All rights reserved. | 8
Slide 10: Path to "ROE of Over 10%"
Path to "ROE of Over 10%" Current Structural Reform Period Growth Stage Stable Growth Stage (FY2024) (FY2025～26) (FY2027～29) (FY2030～) 3 Increased Profit in the Growth Areas：+α +α • Investments in Growth and M&A activities FY2027～29 Potential for further ROE Operating Income Target improvement throu
Slide 11: "Selection and Concentration" in the Automotive & Transportation Business
"Selection and Concentration" in the Automotive & 1 Transportation Business Reliable execution based on the policy of “Without ruling out any options or possibilities” Background to Date Actions 2017 Key Points of Structural Reform without Sanctuary 2018 ✓ Closely examine cost of capital (WACC) and
Slide 12: "Structural Reform" of the Industry Machinery Business
2 "Structural Reform" of the Industry Machinery Business Initiatives to Achieve Operating Income Exceeding ¥40.0 billion ＝ Various initiatives implemented with the support of external experts under the ROE10 Project From the February 2025 Release: Initiatives to Achieve Operating Income Exceeding ¥
Slide 13: Profit Increase in the Growth Areas: Machine Component Parts Business
3 Profit Increase in the Growth Areas： Machine Component Parts Business Accelerating the cycle of “Create, Produce, and Sell” From the February 2025 Release: Machine Component Parts Business Maximize profits by rapidly repeating the cycle of “Create, Produce, and Sell.” Development based on needs-ba
Slide 14: Profit Increase in the Growth Areas: Growth of FA Solution Business
3 Profit Increase in the Growth Areas： Growth of FA Solution Business Committed to contributing to “Innovation in manufacturing,” achieving sustainable growth even in this age of cutting-edge technology ■Provide high value-added products and solution services by combining three elements Expected Mar
Slide 15: Balance Sheet Management with Emphasis on Capital Efficiency
４ Capital Policy Balance Sheet Management with Emphasis on Capital Efficiency Steadily reduce equity capital through purchasing treasury shares and proactive shareholder returns As of December 2024 Reduce the balance As of June 2025 Interest-Bearing sheet amount by Cash and Bank Liabilities ¥51.9 bi
Slide 16: Continuous evolution of corporate governance
5 Evolution of corporate governance Continuous evolution of corporate governance Clarify the roles of supervision and execution, and continually reinforce both functions FY2025 (in progress) ◼ Revision of the skill matrix of FY2024 directors ◼ Conducted third-party interview- ◼ Improve the director
Slide 17: Ⅲ. Financial Forecast for Fiscal 2025
Ⅲ. Financial Forecast for Fiscal 2025 Copyright THK CO., LTD. 2025. All rights reserved. | 16
Slide 18: Orders Received by Region
Orders Received by Region Industrial Machinery THK Japan*1,2 THK Europe*2 (28.2) 30 40 12.0 22.7 21.1 11.0 (0.6) (40.1) (8.0) (15.8) (21.2) (0.1) (8.6) 4.1 (43.7) (41.5) (32.7) (15.2) 7.7 0.9 30 (9.5) 20 20 39 22.1 22.4 21.3 22.0 29 30 29 31 29 32 33 10 18.4 18.0 18.5 19.2 19.8 19.9 27 26 10 0 0 1-3
Slide 19: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) Consolidated （Millions of Yen） 2025/12 2024/12 FY Forecast 1H Results Results Revenue 363,500 176,246 352,759 Y/Y +3.0％ -2.0％ +0.2％ Operating 23,500 6,181 17,349 Income Y/Y +35.5％ -26.4％ -26.8％ Income before 24,500 6,643 18,782 income taxes Y/Y +30.4％ -34.1％ -25.7％
Slide 20: Financial Forecast (Unconsolidated)
Financial Forecast (Unconsolidated) Unconsolidated （Millions of Yen） 2025/12 2024/12 FY Forecast 1H Results Results Net Sales 150,000 67,923 144,737 Y/Y +3.6％ +0.5％ +0.4％ Japan 95,000 41,393 88,405 Y/Y +7.5％ -2.4％ -0.8％ Operating 2,800 223 4,121 Income Y/Y -32.1％ -85.5％ -42.3％ Ordinary 36,600 33,012
Slide 21: 【Support Statement】 Trends in COGS and SG&A
【Support Statement】 Trends in COGS and SG&A 78.2% COGS 75.6% 77.8% 75.8% 77.6% COGS ratio Sales-cost ratio decreased by 0.2 points Y/Y 140,300 130,008 139,975 131,000 136,817 Millions of Yen 1H 2H 1H 2H 1H 2023/12 2024/12 2025/12 18.6% 18.6% 18.0% SG&A 17.5% 16.1% SG&A ratio increased by 0.6 points
Slide 22: 【Support Statement】 Trends in Orders, Sales and Backlog (Japan – Unconsolidated)
【Support Statement】 － Trends in Orders, Sales and Backlog(Japan – Unconsolidated) – （millions of yen） 80,000 Orders Sales 70,000 Backlog 60,000 50,000 40,000 30,000 20,000 10,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9
Slide 23: 【Support Statement】 Trends in Orders Classified by Industry (Unconsolidated)
【Support Statement】 –Trends in Orders Classified by Industry (Unconsolidated)– （millions of yen） 10,000 Machine Tool 9,000 General Machinery 8,000 Electronics 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6