FY2020 Consolidated Financial Results Highlights

(Unit: JPY Million)

Actual

Year-on-year comparison

Forecast

2020/3

2021/3

Amount

%

2021/9

2022/3

100,159

84,720

- 15,438

- 15.4%

45,500

92,000

4,168

1,315

- 2,853

- 68.4%

1,750

3,500

(4.2%)

(1.6%)

(-2.6%)

―

(3.8%)

(3.8%)

3,660

874

- 2,785

- 76.1%

1,600

3,200

(3.7%)

(1.0%)

(-2.6%)

―

(3.5%)

(3.5%)

2,740

104

- 2,636

- 96.2%

700

1,700

(2.7%)

(0.1%)

(-2.6%)

―

(1.5%)

(1.8%)

4.9%

0.2%

- 4.7%

―

―

―

35.1%

36.3%

1.2%

―

―

―

37,211

36,462

- 748

- 2.0%

―

―

10,857

8,128

- 2,728

- 25.1%

―

7,700

9,517

8,790

- 726

- 7.6%

―

9,400

2,105

1,971

- 133

- 6.4%

―

2,000

33

33

0

―

―

―

109.56

103.50

Exchange rate is TTM rate

―

105.00

122.54

126.95

as of December 31.

―

126.00

≪Causes of Fluctuation in Operating profit≫

(Unit: JPYBillion)

≪Dividend/ Dividend Payout Ratio≫

(Unit: JPY)

2018/3

2019/3

2020/3

2021/3

2022/3

Interim

15

15

20 (*1)

10

10

(*2)

Year-end

15

15

15

10 (*2)

15

(*2)

Annual

30

30

35

20 (*2)

25

(*2)

Dividend

33.3%

32.0%

60.1%

888.7%

68.4% (*2)

Payout Ratio

Net sales

Operating profit/Operating margin

Ordinary profit/Ordinary income margin

106.6

107.7

Operating profit

Ordinary profit

100.1

6.2%

6.7%

Operating margin

Ordinary income margin

92.0

4.2%

6.4%

6.2%

84.7

7.2

3.8%

3.7%

3.5%

6.6

6.8

6.6

1.6%

1.0%

4.1

3.5

3.6

3.2

1.3

0.8

2018/3

2019/3

2020/3

2021/3

2022/3

2018/3

2019/3

2020/3

2021/3

2022/3

2018/3

2019/3

2020/3

2021/3

2022/3

Forecast

Forecast

Forecast

Capital Expenditure/Depreciation

10.8

8.6

8.7

8.5

9.5

8.7

9.4

7.2

8.1

7.7

Capital Expenditure

Depreciation

Capital Expenditure

Depreciation

Capital Expenditure

Depreciation

Capital Expenditure

Depreciation

Capital Expenditure

Depreciation

2018/3

2019/3

2020/3

2021/3

2022/3

Net sales

Operating profit or loss

（Unit: JPY Billion）

（Unit: JPY Billion）

70

7.0

Net sales

Operating profit or loss

7.0

57.2

6.0

50

47.1

5.0

30

2.7

1.6

3.0

16.0 1.8

17.5

1.4

13.7

10.9

10.7

10

10.2

0.5

2.0 0.3

1.0

2.4

-1.0

-0.8

-1.8

-3.0

2020/3

2021/3

2020/3

2021/3

2020/3

2021/3

2020/3

2021/3

2020/3

2021/3

Automotive

Automotive

Non-automotive

Other automotiveparts

Others *

enginebearings

non-enginebearings

bearings

Net sales

Operating profit or loss

（Unit: JPY Billion）

（Unit: JPY Billion）

2.5

74

69.8 2.1

60.3

Net sales

Operating profit or loss

64

2.0

54

44

1.2

1.5

34

28.9

24.9

1.0

0.7

24

0.5

12.8

10.2

13.3

9.6

0.5

14

4

0.2

0.2

0.0

-0.15

- 0.27

-0.5

2020/3

2021/3

2020/3

2021/3

2020/3

2021/3

2020/3

2021/3

Japan

Europe

Asia

North America

[Sales]

(+)Gains (-)Losses (Unit: JPY Million)

[Operating profit] (+)Gains (-)Losses

(Unit: JPY Million)

Net sales ratio

Year-on-year

Year-on-year

comparison

comparison

Segment

Causes of Gains and Losses

Causes of Gains and Losses

2021/3

Amount

Amount

(%)

(%)

① (-)Japan: Especially for the passenger car sales have been on a rapid recovery

trend, but were unable to cover the significant decline in the first half of this year, and

the impact of the delayed recovery in the export truck market.

②(-)Japan/Overseas : Orders decreased due to decreased demand for turbocharger

bearings.

Automotive

- 10,072

③(-)Thailand: In the first half of this year, orders decreased due to sluggish

- 993

(-) As sales decreased on the left.

54.7%

automotive market in Thailand and the decrease in automotive exports by COVID-19.

engine bearings

(-17.6%)

(-14.1%)

(+) As sales increased on the left.

Currently orders received show the signs of strong recovery.

④(-)North America: In the first half of this year, orders decreased due to slowdown

in automotive production caused by COVID-19.

⑤(+) China: Orders continued increase because of expansion of the commercial

vehicle market, and winning over new customers, recovery in demand for Japanese-

brand vehicles.

Automotive

- 1,514

⑥(-) In the first half of this year, orders decreased due to slowdown in automotive

- 917

(-) As sales decreased on the left.

18.6%

production caused by COVID-19. Especially in Thailand and China, currently orders

non-engine bearings

(-8.6%)

(-33.4%)

(+) Same as ⑤ above.

received show the signs of recovery.

⑦(-) Mainly impact of a decline in overall demand in the marine industry, despite of

increasing partially in orders for low-speed and medium-speed diesel engines for ships

by the development of new customers and demand in overseas.

Non-automotive

11.9%

- 651

⑧(-) In the first half of this year, orders decrease for construction machinery sector

- 234

(-) As sales decreased on the left.

bearings

(-6.0%)

market in overseas due to weak demand. Currently orders received show the signs of

(-13.8%)

(+) As sales increased on the left.

recovery gradually.

⑨(+) Energy Sector: Order increase for power-generating steam turbine bearing,

also bearing assembly of hydraulic power generation by winning over new customers.

⑭(+)Formed pipes, Knock pins, NC milled

⑩(-) Formed pipes, Knock pins, NC milled parts, etc.: Orders decreased in

parts, etc.: Impact of profit improvement by

productivity improvement and rationalization efforts.

Other automotive

12.4%

- 3,027

Japan and Overseas due to COVID-19. Currently orders received show the signs of

- 1,040

⑮(-)Aluminum die cast products : Substantial

parts

(-22.0%)

recovery.

( - )

decline due to COVID-19 and material cost increase

⑪(-) Aluminum die cast products : Same as ③ above.

due to rising aluminum market. Increased depreciation

of buildings and facilities for new factory for aluminum

die cast parts in Thailand.

Others

2.4%

- 383

⑫(-) Orders decreased for specialty-shaped bearings due to demand slowdown in

- 193

(-) As sales decreased on the left.

(-15.8%)

industrial machinery by U.S.-China trade war and COVID-19.

(-37.7%)

Elimination of

210

524

inter-segment transactions

Total

- 15,438

⑬(-) Fluctuations in exchange rate. Excluding Euro and RMB.

- 2,853

(-) As sales decreased on the left.

(-15.4%)

(-68.4%)

[Sales]

(+)Gains (-)Losses (Unit: JPY Million)

[Operating profit] (+)Gains (-)Losses

(Unit: JPY Million)

Net sales ratio

Year-on-year

Year-on-year

comparison

comparison

Region

Causes of Gains and Losses

Causes of Gains and Losses

2021/3

Amount

Amount

(%)

(%)

Japan

57.3%

- 9,491

(-) Same as ➀, ②, ⑦ above.

- 1,980

(-) As sales decreased on the left.

(-13.6%)

(-90.6%)

Asia

23.7%

- 3,940

(+) Same as ⑤ above.

- 723

(+) Same as ⑤,⑭ above.

(-13.6%)

(-) Same as ③,⑩ above.

(-58.5%)

(-) Same as ③,⑮ above.

North America

9.7%

- 2,655

(-) Same as ④,⑧ above.

- 520

(-) As sales decreased on the left.

(-20.6%)

(-65.9%)

(-) Orders decrease for bearings of automobiles and turbochargers due to slowdown

(-) As sales decreased on the left.

Europe

- 3,659

117

(+) Effect of progress in collection of accounts

9.2%

in the first half of this year due to COVID-19. Currently orders received show the

(including Russia)

(-27.4%)

(-)

receivable recorded as allowance for doubtful

signs of recovery.

accounts.

Elimination of

4,309

254

internal transactions

Total

- 15,438

(-) Same as ⑬ above.

- 2,853

(-15.4%)

(-68.4%)