NSK : Financial Results for Q3 FY2025 (Consolidated)

CONSOLIDATED RESULTS FOR THE NINE MONTHS ENDED

December 31, 2025 (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

(Figures are rounded down to the nearest million yen)

1. Consolidated financial highlights for the nine months ended December 31, 2025

   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
      	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
      Nine months ended Dec. 31, 2025	658,464	10.3	27,393	75.2	26,639	107.2	14,410	228.1	13,543	244.5	46,198	238.9
      Nine months ended Dec. 31, 2024	596,921	1.5	15,633	-19.0	12,854	-31.0	4,392	-18.8	3,931	-16.8	13,630	-66.6

      	Sum of continuing and discontinued operations
      	Basic earnings per share	Diluted earnings per share
      	Yen	Yen
      Nine months ended Dec. 31, 2025	27.69	27.57
      Nine months ended Dec. 31, 2024	8.04	8.01

      Note:

      For the nine months ended December 31, 2024, 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 nine months ended December 31, 2025.

   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
   	Millions of Yen	Millions of Yen	Millions of Yen	%
   As of Dec. 31, 2025	1,302,547	698,936	679,574	52.2
   As of Mar. 31, 2025	1,219,543	669,189	651,462	53.4

2. Cash dividends

   (Record date)	Cash dividends per share
   	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 -	Yen 17.00	Yen -	Yen 17.00	Yen 34.00
   Year ending Mar. 31, 2026	-	17.00	-
   Year ending Mar. 31, 2026 (Forecast)				17.00	34.00

   Note: Revision to the forecast of cash dividends from the latest announcement: None

3. Forecast of consolidated results for the year ending March 31, 2026

   (% indicates changes from same period of previous year)

   	Sales		Operating income		Income before income taxes		Net income attributable to owners of the parent		Basic earnings per share
   Year ending Mar. 31, 2026	Millions of Yen 900,000	% 13.0	Millions of Yen 37,000	% 30.0	Millions of Yen 36,000	% 43.4	Millions of Yen 20,000	% 87.8	Yen 40.89

   Note: Revision to the forecast of consolidated results from the latest announcement: Yes

   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 stock):

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

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

         As of Dec. 31, 2025 10,679,772 shares As of Mar. 31, 2025 11,199,753 shares

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

Nine months ended Dec. 31, 2025 489,123,572 shares Nine months ended Dec. 31, 2024 488,754,412 shares

1. Qualitative information regarding consolidated business results

   The NSK Group strengthens business foundation as Mid-Term Management Plan 2026, which spans the five years from April 2022 to March 2027. The Company 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 then 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 nine months ended December 31, 2025, the global economy is showing a gradual recovery with the slowdown in inflation. On the other hand, a slowdown in economic growth in the future is a concern due to U.S tariff policies and uncertainties in other government policies, and financial markets in various countries.

   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 robust. 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, through efforts to reflect the impacts of inflation and tariff impacts to selling prices, resulted in consolidated sales for the nine months ended December 31, 2025 totaling ¥658,464 million, a year-on-year increase of 10.3%. Operating income was

   ¥27,393 million, a year-on-year increase of 75.2%. Income before income taxes was ¥26,639 million, a year-on-year increase of 107.2%. Net income attributable to owners of the parent was ¥13,543 million, a year-on-year increase of 244.5%.

   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 recorded one-off impacts arising from this acquisition, such as a gain on bargain purchase of

   ¥7,272 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 stayed fairly flat although sales increased in some sectors such as machine tool sectors. In the Americas, sales increased due to higher sales in aftermarket and semiconductor manufacturing equipment sectors. 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 business segment totaled ¥275,353 million, a year-on-year increase of 1.6%, and operating income was ¥8,647 million, a year-on-year increase of 3.6%.

   2. Automotive Business segment

      In addition to an increase in global automotive production volume from the same period of the previous year, efforts to reflect the tariff impacts to selling prices resulted in a year-on-year increase in sales compared to the same period of the previous year.

      Looking at the Company's results by geographic breakdown, sales in Japan stayed fairly flat as automotive production remained at the same level as the same period of the previous year. 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, sales increased due to sales expansion of ball screws for electric brake systems.

      As a result, sales in the automotive business segment totaled ¥302,599 million, a year-on-year increase of 0.8% and operating income was ¥12,684 million, a year-on-year increase of 51.8%.

   3. Steering Business segment

      Sales of the steering business for the third quarter of the year ending March 31, 2026 was ¥57,747 million, operating income was ¥5,212 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.

2. Information regarding consolidated financial position

   Assets, liabilities and total equity at the end of the period increased due to the consolidation of NS&C and its subsidiaries.

   Assets and liabilities

   Total assets at the end of the period was ¥1,302,547 million, an increase of ¥83,003 million compared to total assets as of March 31, 2025. Total liabilities at the end of the period was ¥603,610 million, an increase of ¥53,256 million compared to total liabilities as of March 31, 2025.

   Total equity

   Total equity was ¥698,936 million, an increase of ¥29,747 million compared to total equity as of March 31, 2025. Despite the dividend payout from retained earnings, total equity increased due to net income attributable to owners of the parent and an increase in other components of equity.

   Information regarding cash flow
   1. Cash flow from operating activities

      Net cash flow provided by operating activities totaled ¥81,493 million (¥4,835 million provided in the same period of the previous fiscal year). This includes the income before income taxes, depreciation and amortisation, along with movements in working capital, gain on bargain purchase and loss on step acquisition resulting from the acquisition of control of NS&C and its subsidiaries.

   2. Cash flow from investing activities

      Net cash flow used in investing activities totaled to ¥84,746 million (¥209 million used in the same period of the previous fiscal year), while there were proceeds from sales of other financial assets in effort to reduce the number of cross-shareholdings, there were purchases of property, plant and equipment and purchases of intangible assets, as well as purchase of shares of NS&C, purchase of investments in associates arising from strategic investments in an AI robotics company.

   3. Cash flow from financing activities

      Net cash flow provided by financing activities totaled ¥12,562 million (¥12,965 million used in the same period of the previous fiscal year), mainly due to a net increase in interest bearing debt including loans and corporate bonds, while dividends paid.

      As a result of the above, cash and cash equivalents at the end of the third quarter of the current period totaled ¥154,360 million, an increase of ¥16,106 million from the end of the previous fiscal year and an increase of ¥10,859 million from the end of the same period of the previous year.

3. Explanation regarding future forecast information including consolidated business forecast

Revision has been made to the consolidated business forecast announced on November 4, 2025 for the fiscal year ending on March 31, 2026. For details, please refer to the "Notice Regarding the Revision of Consolidated Business Forecast for the Fiscal Year Ending March 31, 2026" released today (February 3, 2026).

No revision has been made to the dividend forecast with this revision of consolidated business forecast.

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