Ns Tool Co., Ltd.TSE: 6157

Financial Results for the 3rd Quarter of Fiscal Year Ending March 31,2025

Mar 3, 2025 at 8:45 AM UTC · Issued by Ns Tool Co., Ltd.

Financial Results for the 3rd Quarter of Fiscal Year Ending March 31, 2025

NS TOOL CO., LTD.

January 31, 2025

(Securities Code: 6157)

Contents

1. Consolidated Financial Results for 3Q FY3/25

Ｐ. 3	・・・	Financial Results Summary for 3Q YTD FY3/25
Ｐ. 4	・・・	Factors for Decrease in Operating Profit
Ｐ. 5	・・・	Summary of Statement of Income
Ｐ. 6	・・・	Summary of Balance Sheet
Ｐ. 7	・・・	Business Performance

2. Consolidated Financial Forecasts for FY3/25

Ｐ. 14	・・・ Financial Forecasts
Ｐ. 15	・・・	Financial Forecasts for 2H FY3/25 and Progress Rate
Ｐ. 16	・・・	Dividend Forecasts

Consolidated Financial Results for 3Q FY3/25

Financial Results Summary for 3Q YTD FY3/25

Increased in net sales and decreased in profits year on year

Roughly in line with the full-year financial forecasts

	3Q YTD	3Q YTD	Full-year	Progress
（Unit: million)	FY3/24	FY3/25	FY3/25
Rate
	Actual	Actual	Forecasts

Net Sales	6,749	7,042	9,430	74.7%
YoY changes	-8.3%	+4.3%	+4.3%


Operating profit	1,348	1,297	1,730	75.0%
YoY changes	-18.9%	-3.8%	-7.4%


Ordinary profit	1,362	1,302	1,740	74.9%
YoY changes	-17.6%	-4.3%	-8.8%


Profit attributable to	928	918	1,190
owners of parent	77.2%

YoY changes	-17.1%	-1.1%	-9.9%

In Japan, the market of semiconductor and electronic components and devices performed solidly, driven by AI-related demand. However, in the automotive industry, production volume did not reach recovery levels amid little development of new vehicle models, and as a result, the demand for tools did not recover. On the other hand, performance overseas was strong due to securing orders in electric vehicles (EV) and the electronic components markets for smartphones in Greater China.
Consolidated net sales were ¥7,042 million, up 4.3% YoY.
Consolidated ordinary profit was ¥1,302 million, down 4.3% YoY. Ordinary profit margin was 18.5%, down 1.7 pp YoY.
Profits decreased YoY, but both net sales and profits were roughly in line with the full-year financial forecasts.

Factors for Decrease in Operating Profit

 Domestic net sales decreased by ¥45 million, down 1.0% YoY and overseas net sales increased by ¥339 million, up 17.1% YoY. Overall net sales increased by ¥293 million, up 4.3% YoY.

 Cost of sales increased by ¥230 million, up 7.5% YoY, due to increased cost of products manufactured, including labor costs and electricity power costs.

 In SG&A expenses, due to the cost of revising product catalogues, selling expenses increased by 12.2% YoY, and overall SG&A expenses increased by ¥113 million, up 4.9% YoY.

 As a result, operating profit decreased by ¥51 million, down 3.8% YoY to ¥1,297 million, while operating profit margin decreased by 1.6 pp YoY to 18.4%.

Summary of Statement of Income

			3Q YTD	3Q YTD	YoY
Unit:		million)	FY3/24	FY3/25
（
			Actual	Actual	Changes
Net Sales			6,749	7,042	+4.3%

Gross profit			3,669	3,731	+1.7%
Ratio to net sales	54.4%	53.0%


SG&A expenses	2,321	2,434	+4.9%
Ratio to net sales	34.4%	34.6%


Operating profit	1,348	1,297	-3.8%
Ratio to net sales	20.0%	18.4%


Ordinary profit	1,362	1,302	-4.3%
Ratio to net sales	20.2%	18.5%


Profit attributable to	928	918
owners of parent	-1.1%

Ratio to net sales	13.8%	13.0%

Capital investment	467	113	-75.7%

Depreciation		463	473	+2.3%

No. of employees	352	363	+3.1%
(persons)

Net sales were ¥7,042 million, up 4.3% YoY. Domestic sales were sluggish mainly in the automotive industry, but sales to Greater China were brisk.
Gross profit was ¥3,731 million, up 1.7% YoY. Gross profit margin was 53.0%, down 1.4 pp YoY.
SG&A expenses increased by 4.9% YoY in line with the rise in selling expenses, and SG&A expenses ratio was 34.6%, up 0.2 pp YoY.
As a result, operating profit decreased by 3.8% YoY to ¥1,297 million and operating profit margin was 18.4%, down 1.6 pp YoY.
Capital expenditures were ¥113 million, down 75.7% YoY due to fewer new equipment installation. Depreciation increased by 2.3% YoY due to the startup of facilities carried over from the previous fiscal year.

Summary of Balance Sheet

Unit:		million)	FY3/24-End	Composition	3Q FY3/25-	Composition	VS FY3/24-
（		Ratio	End	Ratio	End

(Assets)

Ⅰ Current assets	12,719	66.1%	13,033	67.5%	+2.5%

Cash and deposits	8,893	46.2%	9,355	48.4%	+5.2%

Notes and accounts receivable	1,305	6.8%	1,353	7.0%	+3.7%
- trade

Inventories			2,381	12.4%	2,238	11.6%	-6.0%

ⅡNon-current assets	6,521	33.9%	6,285	32.5%	-3.6%

Property, plant and equipment	5,361	27.9%	4,989	25.8%	-6.9%

Intangible assets		24	0.1%	17	0.1%	-28.5%

Investments and other assets	1,135	5.9%	1,278	6.6%	+12.5%

		Total assets	19,241	100.0%	19,318	100.0%	+0.4%

(Liabilities)

Ⅰ Current liabilities	1,287	6.7%	1,070	5.5%	-16.9%

Accounts payable - trade	173	0.9%	231	1.2%	+33.7%

ⅡNon-current liabilities	224	1.2%	224	1.2%	－

		Total liabilities	1,512	7.9%	1,295	6.7%	-14.4%

(Net assets）

		Total equity	17,525	91.1%	17,829	92.3%	+1.7%

		Total net assets	17,729	92.1%	18,023	93.3%	+1.7%

Total liabilities and net assets	19,241	100.0%	19,318	100.0%	+0.4%

Current assets

Increased by 2.5% from the end of previous fiscal year due to an increase in cash and deposits resulting from a decrease in new capital expenditures.

Non-current assets

Decreased by 3.6% from the end of previous fiscal year, due to depreciation exceeding new capital expenditures.

Liabilities

Decreased by 14.4% from the end of previous fiscal year due to decreases in income taxes payable and provision for bonuses.

Net assets

Increased by 1.7% from the end of previous fiscal year mainly due to an increase in retained earnings. Partly due to a decrease in liabilities, equity-to-asset ratio was 92.3%, up 1.2 pp from the end of previous fiscal year.

Business Performance (Trend of net sales (1) By product)

Trend of net sales by product and ratio of small-diameter end mills

 By product, net sales for end mills (diameter 6 mm or less) increased by 5.5% YoY, end mills (diameter over 6 mm) increased by 2.8% YoY, end mills (other), mainly special tools custom-made to users, decreased by 2.0% YoY, and other products such as tool cases decreased by 2.0% YoY.

 Of the net sales of ¥7,042 million, sales for mainstay end mills (diameter 6 mm or less) were ¥5,614 million, and the ratio of small-diameter end mills was 79.7%, up 0.9 pp YoY.

Business Performance (Trend of net sales (2) Domestic and overseas)

Trend of domestic and overseas net sales

 Domestic net sales decreased by ¥45 million, down

1.0% YoY, to ¥4,719 million. Overseas net sales increased by ¥339 million, up 17.1% YoY, to ¥2,323 million.

 Overseas net sales increased in Greater China, where net sales were down sharply in the same period of previous fiscal year. In account consolidation of NS TOOL Hong Kong Ltd. into 3Q results, figures for China are for January-September.

 Overseas net sales ratio increased by 3.6 pp YoY to 33.0%, thanks to an increase in overseas net sales, while domestic net sales were sluggish.

Business Performance (Trend of net sales (3) By overseas region)

Trend of net sales by overseas region	 Combined net sales for China, Hong Kong and Taiwan
	increased by 28.6% YoY, to ¥1,087 million. In account
	consolidation of NS TOOL Hong Kong Ltd. into 3Q results,
	figures for China are for January-September. Recovery in
	orders for the smartphone industry continued. In addition, net
	sales increased due to continued optical and EV-related
	demand. Although the market condition has not improved, net
	sales improved from the same period of previous fiscal year
	due to the acquisition of orders.
	 Other Asia increased by 8.9% YoY to ¥593 million. Thailand
	performed relatively well as the market recovered slightly and
	the sales system was enhanced. India is performing well due
	to brisk investment by the expansion of demand.
	 In Europe, the automotive industry remained sluggish, net
	sales decreased by 0.2% YoY, to ¥466 million.
	 Figures for the U.S. and Mexico are for January-September
	in account consolidation of NS TOOL USA, INC. into 3Q
	results. The reasons for the increase in net sales are the
	deviation in consolidation periods resulted from the change of
	commercial distribution as well as the impact of exchange
	rates, so there is only a slight increase when comparing
	actual net sales.

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