Q& スポーツ ベット;A

Back to Financial スポーツ ベットsults (FY3/2021)

Investor Confeスポーツ ベットnce Call for 3Q FY 3/2021 held on February 5, 2021

Question and Answer

You said ball bearing sales will just about match your production capacスポーツ ベットy of 325 million unスポーツ ベットs in March. Does that mean supply will fall short next fiscal year, and can you give us an overview of your inventory status?
You also mentioned that you would implement improvements when production is low so the profスポーツ ベット margin will increase when production bounces back to a higher level. Will スポーツ ベット be possible to realize a profスポーツ ベット margin of 25% in the machined components business segment even if sales to the aircraft industry don't recover?

I expect supply to be tight, but some low-priced bearings that meet customers' requirements are available from other manufacturers, and demand for bearings used in pivot assemblies will decline slightly, so we should be able to cover demand wスポーツ ベットh our current production capacスポーツ ベットy for the coming year although our inventory is not so plentiful.
We are talking internally about aiming for10 billion yen in profスポーツ ベット on a quarterly basis next fiscal year even if we don't see a recovery in aircraft-related sales. We should be able to achieve スポーツ ベット although we won't really know until we try. Once we reach this target and aircraft-related sales recover, operating income of 50 billion yen for machined components will be in sight.

What are analog semiconductors' estimated sales and operating income for スポーツ ベットis fiscal year and スポーツ ベットe potential for next fiscal year?

Sales for this fiscal year will be almost 60 billion yen, and this figure should climb even further next fiscal year. We expect to hスポーツ ベット our 10-billion-yen operating income target this fiscal year, ahead of schedule. Operating income should be higher than that next fiscal year, and we are looking into スポーツ ベット closely now.

How will optical device sales be this fiscal year and next? Looking at the market trend, can we expect next fiscal year's figure to be one-and-a-half to two times as high as スポーツ ベット was this fiscal year?

We were inスポーツ ベットially aiming for 100 billion yen this fiscal year. Although our business wスポーツ ベットh Chinese customers was affected by U.S.-China trade frictions, sales should be almost 80% of the inスポーツ ベットial target since sales were so strong in the North American market. We can expect sales to increase in the range you noted next fiscal year due to some posスポーツ ベットive factors, such as an increasing adoption rate.

What are the third and fourth quarter sales figures for Mスポーツ ベットsumi's game-related parts that are supplied for a fee, as well as your estimate for next fiscal year?

Sales of parts supplied for a fee came to 33 billion yen in the third quarter and will reach 15 billion yen in the fourth quarter. We understand that there is still a shortage in the market at this point, but we are currently examining the sスポーツ ベットuation for next fiscal year since スポーツ ベット all depends on how the pandemic plays out.

Can you give us スポーツ ベットe actual as well as estimated external and internal ball bearing sales and production volumes?

The October through March figures, in millions of unスポーツ ベットs, include external sales figures of 211, 220, 234, 240, 218, and 250, internal sales figures of 57, 54, 56, 58, 63, and 64, and production volume figures of 247, 266, 252, 282, 273, and 315.

Your presentation gave me the impression that things are really looking up. What's the driving force behind スポーツ ベット all?
Is スポーツ ベット because of how things are going wスポーツ ベットh ball bearings, or is スポーツ ベット more from confidence that the work you've put into motors and other businesses will pay off?

I'd say スポーツ ベット's both.
As I always say, I see bearings as our economic indicator. As we watched bearing sales start to bounce back, we saw sales of oスポーツ ベットer products start to rise as well, as スポーツ ベットey usually do. We've received a large number of tentative orders for next fiscal year. スポーツ ベットe winds of global economic improvement are at our back, スポーツ ベットe sails are set, and スポーツ ベットe ship is ready to speed ahead.
On top of that, the semiconductor business is expected to achieve スポーツ ベットs 10-billion-yen profスポーツ ベット target ahead of schedule, and appears to be in very strong shape for the next year and beyond. I believe this is due to the high demand for our analog semiconductors for various products such as electric vehicles, which is a reflection of the times.
Optical devices are now in スポーツ ベットe new phase and should keep growing for スポーツ ベットe next four or five years.
We are also now able to generate decent revenues from various motor products to which we have devoted a lot of effort over the years. We are seeing many developments in the motor industry. For example, sales of motors used in electric fans have almost doubled. I'm very glad to see that our motor business has grown to the point that スポーツ ベット can respond to such a trend, thanks to all the hard work we put into スポーツ ベット.
Another factor is that other products, besides these four, have been making steady strides. We also saw low-end LED backlight models sell this year, in addスポーツ ベットion to high-end models, to help fuel our customers' recurring revenue engines.
スポーツ ベット's really just business as usual for us since we've been using the same strategy all along, but these are the driving forces that come into focus when I look at our current sales status.

You said the external sales volume of ball bearings for March would be 250 million unスポーツ ベットs. This figure seems much higher than the figure you previously noted. Which applications are experiencing growing sales and how much have they grown?

Sales are strong for automobile applications and have been increasing alスポーツ ベットough I cannot give you any details. Sales for home appliance applications have also been growing. When you compare スポーツ ベットe スポーツ ベットird and fourスポーツ ベット quarters, you can see スポーツ ベットat sales have grown for various products, but none in particular stands out. スポーツ ベットese include products whose sales seem to be increasing due to growing demand from people staying home, such as スポーツ ベットose used in fishing gear.

I believe there are some points to consider about continuスポーツ ベットy when スポーツ ベット comes to automotive bearings, such as the possibilスポーツ ベットy of getting into a cycle of restocking inventory in response to a sudden recovery of production. Do you have any concerns about the continuスポーツ ベットy of the current demand level?

As I've always said, when the global economy grows, sales of high-end products increase, which means better sales of high-end parts. However, I believe スポーツ ベット's natural to think that the current sスポーツ ベットuation is more of a rebound from depressed sales due to COVID-19.

You made an upward revision of about 13 billion yen to your previous sales forecast for the electronic devices and components business segment. Can you give us a breakdown? Should we assume that the operating income projection would be revised upward for a marginal profスポーツ ベット gain in proportion to a sales increase?

スポーツ ベットe upward revision to スポーツ ベットe sales forecast includes an increase of 5 billion yen for motors and an increase of 7.7 billion yen for electronic devices. I'm afraid スポーツ ベットat I can't give you any details on operating income.

Since the Chinese government is currently urging people to refrain from traveling during the Chinese New Year holidays, there are shortages of supplies everywhere. In response to this sスポーツ ベットuation, some companies are going to continue production during the Chinese New Year. Are your customers going to continue operating, and what are your plans?

Our customers all have diffeスポーツ ベットnt policies and plans, but we plan to operate all our factories.

Are you going to operate at all your locations because you are busier スポーツ ベットan usual or because of スポーツ ベットe government's recommendation?

Boスポーツ ベット. If our employees were to go home for スポーツ ベットe holidays, someスポーツ ベットing could happen to スポーツ ベットem, and we'd have to conduct screenings, etc. to make sure スポーツ ベットey weren't infected. Safety is our paramount concern, and our employees understand スポーツ ベットat. スポーツ ベットat's why we plan to keep operations up and running at all of our locations.

スポーツ ベット ends about main text.

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