NSK : Financial Results for FY2025 (Consolidated)

CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2026

(Unaudited) [IFRS]

Company name NSK Ltd.

Stock exchange on which the shares are listed Tokyo Stock Exchange in Japan Code number 6471

URL https://www.nsk.com

Representative Akitoshi Ichii, President and CEO

Contact person Naoya Takigawa, Head of Finance Division HQ Date of ordinary general meeting of shareholders June 25, 2026

Payment date of cash dividends June 8, 2026

Filing date of securities report June 22, 2026

(Figures are rounded down to the nearest million yen)

1. Consolidated financial highlights for the year ended March 31, 2026

   1. Consolidated financial results (% indicates changes from the previous year)

      	Continuing operations						Sum of continuing and discontinued operations
      	Sales		Operating income		Income before income taxes		Net income		Net income attributable to owners of the parent		Total comprehensive income
      Year ended Mar. 31, 2026 Year ended Mar. 31, 2025	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
      	911,644 796,667	14.4 1.0	38,812 28,457	36.4 3.9	38,039 25,100	51.5 -4.2	24,308 11,193	117.2 17.0	22,867 10,647	114.8 25.2	39,248 7,499	423.3 -90.8

      	Sum of continuing and discontinued operations			Continuing operations
      	Basic earnings per share	Diluted earnings per share	Return on equity (ROE)	Income before income taxes / Total assets	Operating income margin
      Year ended Mar. 31, 2026 Year ended Mar. 31, 2025	Yen	Yen	%	%	%
      	46.75 21.78	46.53 21.71	3.5 1.6	3.1 2.0	4.3 3.6

      Reference:

      Share of profits of investments accounted for using the equity method

      Year ended Mar. 31, 2026 3,261million yen Year ended Mar. 31, 2025 4,901 million yen

      (Note 1)

      Basic earnings per share and diluted earnings per share are calculated based on the net income attributable to owners of the parent.

      (Note 2)

      For the year ended March 31, 2025, Rane NSK Steering Systems Private Limited ("RNSS"), a former Indian subsidiary in the steering business was included in discontinued operations. The Company transferred its entire ownership interest in RNSS to Rane Holdings Limited on September 19, 2024, thereby losing control of RNSS. There are no discontinued operations for the year ended March 31, 2026.

   2. Consolidated financial position

      	Total assets	Total equity	Total equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity per share attributable to owners of the parent
      	Millions of Yen	Millions of Yen	Millions of Yen	%	Yen
      As of Mar. 31, 2026	1,239,769	692,135	671,975	54.2	1,373.28
      As of Mar. 31, 2025	1,219,543	669,189	651,462	53.4	1,332.78

   3. Consolidated results of cash flow

   	Net cash provided by operating activities	Net cash used in investing activities	Net cash used in financing activities	Cash and cash equivalents at the end of the period
   	Millions of Yen	Millions of Yen	Millions of Yen	Millions of Yen
   Year ended Mar. 31, 2026	97,806	-64,751	-37,790	142,123
   Year ended Mar. 31, 2025	82,176	-58,753	-33,741	138,253

2. Cash dividends

   	Cash dividends per share					Total divided (Full-year)	Dividend payout ratio (Consolidated)	Dividend on equity (DOE) (Consolidated)
   	End of the 1st quarter	End of the 2nd quarter	End of the 3rd quarter	Year-end	Full-year total
   Year ended Mar. 31, 2025	-	Yen 17.00	-	Yen 17.00	Yen 34.00	Millions of Yen 16,873	% 156.1	% 2.5
   Year ended Mar. 31, 2026	-	17.00	-	17.00	34.00	16,954	72.7	2.5
   Year ending Mar. 31, 2027 (Forecast)	-	17.00	-	17.00	34.00		-

3. Forecast of consolidated results for the year ending March 31, 2027

   (% indicates changes from the same period of the previous year)

   	Sales		Operating income		Income before income taxes		Net income attributable to owners of the parent		Basic earnings per share
   	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Yen
   Six months ending Sep. 30, 2026	490,000	18.9	18,000	1.6	17,000	-1.8	9,500	-9.8	19.41
   Year ending Mar. 31, 2027	1,000,000	9.7	42,000	8.2	40,000	5.2	24,000	5.0	49.05

4. Others

   1. Significant changes in the scope of consolidation during the period: Yes New: 1 (NSK Steering Systems Co., Ltd.), Removed: None

      (Note)

      The Company has acquired all shares of NSK Steering & Control Inc. (hereinafter "NS&C"), an equity method affiliate of the Company, from Japan Industrial Solutions III Investment Limited Partnership on September 1, 2025. As a result, NSK Steering Systems Co., Ltd. a subsidiary of NS&C, has become a specified subsidiary of the Company.

   2. Changes in accounting policies, or changes in accounting estimates

      1. Changes in accounting policies required by IFRS :None

      2. Changes excluding the above :None

      3. Changes in accounting estimates :None

   3. Number of shares issued and outstanding (common stock)

      1. Number of shares issued and outstanding at the end of each period (including treasury shares):

         As of Mar. 31, 2026 500,000,000 shares As of Mar. 31, 2025 500,000,000 shares

      2. Number of treasury shares at the end of each period:

         As of Mar. 31, 2026 10,679,019 shares As of Mar. 31, 2025 11,199,753 shares

      3. Average number of shares issued and outstanding in each period:

Year ended Mar. 31, 2026 489,168,811 shares Year ended Mar 31, 2025 488,763,677 shares

1. Non-consolidated financial results (% indicates changes from the previous year)

   	Sales		Operating income		Ordinary income		Net income
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   Year ended Mar. 31, 2026	392,054	2.2	-3,132	-	23,406	-31.1	11,229	-63.1
   Year ended Mar. 31, 2025	383,802	-0.8	2,286	-19.9	33,979	-14.2	30,421	-52.5

   	Net income per share -Basic	Net income per share -Diluted
   	Yen	Yen
   Year ended Mar. 31, 2026	22.93	-
   Year ended Mar. 31, 2025	62.18	-

2. Non-consolidated financial position

(Reference) Equity capital As of Mar. 31, 2026 348,384million yen As of Mar. 31, 2025 357,331million yen (Note) Figures for non-consolidated financial highlights were formulated based on Japanese GAAP.

1. Qualitative information regarding consolidated business results

   The NSK Group has designated "safety, quality, environment, and compliance" as core values that serve as a common standard of priority values for decision-making and actions taken by management, and has promoted a range of initiatives toward three main management themes: Growth with Profitability, Enhancement of Managerial Resources, and ESG Management.

   Looking at the global economy during the year ended March 31, 2026, the global economy is showing a gradual recovery with the slowdown in inflation. On the other hand, in addition to geopolitical risks from unstable international situations, uncertainties in U.S. tariff policies, other government policies, and financial markets in various countries remain elevated and concerns about the economic outlook are intensifying.

   Looking at the Company's results by geographic breakdown, in Japan, the economy is gradually moving towards recovery as customer expenditure shows signs of improvement. In the U.S., despite the downturn of the labor market, the economy remains solid. In Europe, demand for capital investment continues to be sluggish, although inflation is settling down. In China, the economy is at a standstill as the real estate market remains sluggish, with an easing in government economic measures to increase consumption.

   In this economic environment, the NSK Group's performance, resulted in consolidated sales for the year ended March 31, 2026 totaling ¥911,644 million, a year-on-year increase of 14.4%. Operating income was

   ¥38,812 million, a year-on-year increase of 36.4%. Income before income taxes was ¥38,039 million, a year-on-year increase of 51.5%. Net income attributable to owners of the parent, was ¥22,867 million, a year-on-year increase of 114.8%.

   On September 1, 2025, NSK acquired all shares of NSK Steering & Control Inc. (hereinafter "NS&C"), an equity-method affiliate that globally oversees the steering business, from Japan Industrial Solutions III Investment Limited Partnership (hereinafter "JIS"). As NS&C and its subsidiaries have become consolidated subsidiaries of the Company, the consolidated results of the NSK Group include the sales and profits and losses of NS&C and its subsidiaries from the date of acquisition (September 1, 2025) onward. In addition, the Company completed the fair value measurement of the acquired assets and assumed liabilities, and finalised the purchase price allocation during this fiscal year. As a result, the Company recorded one-off impacts arising from this acquisition, such as a gain on bargain purchase of ¥8,527 million under "other operating income" and a loss on step acquisition of ¥4,662 million under "other operating expenses".

   Business segment information
   1. Industrial Machinery Business segment

      A gradual recovery in capital expenditure has driven year-on-year sales growth.

      Looking at the Company's results by geographic breakdown, sales in Japan increased mainly due to sales increase in machine tool sectors. In the Americas, sales increased due to higher sales in aftermarket and semiconductor manufacturing equipment sectors and by reflecting tariff impacts to selling prices. In Europe, sales decreased as demand continued to be sluggish. In China, sales increased due to higher sales in machine tool sectors.

      As a result, sales in the industrial machinery segment totaled ¥377,491 million, a year-on-year increase of 4.4%, and operating income was ¥12,565 million, a year-on-year decrease of 9.9%, impacted by one-off expenses related to the restructuring of the European business.

   2. Automotive Business segment

      Although there was an impact from decreased sales in certain regions, efforts to reflect the tariff impacts to selling prices resulted in flat sales compared to the same period of the previous year.

      Looking at the Company's results by geographic breakdown, sales in Japan decreased due to a sales decline of automatic transmission components. In the Americas, sales increased due to robust automotive sales and reflection of tariff impacts to selling prices. In Europe, sales declined due to continued sluggishness of the automotive demand. In China, despite sluggish sales of Japanese automotive customers, sales stayed fairly flat due to sales expansion of ball screws for electric brake systems.

      As a result, sales in the automotive business segment totaled ¥403,304 million, a year-on-year increase of 0.4% and operating income was ¥17,366 million, a year-on-year increase of 18.0% despite one-off expenses related to the restructuring of the European business.

   3. Steering Business segment

Sales of the steering business for the year ended March 31, 2026 was ¥100,554 million, operating income was ¥7,730 million. The above includes sales, profit and loss of NS&C and its subsidiaries from the date of acquisition (September 1, 2025), one-off impacts arising from the acquisition of control.