6134.T

Consolidated Third Quarter Performance

• The third quarter consolidated sales revenue was 127.291 billion yen, a 36.0% increase year-over-year; operating profit was 18.847 billion yen, ordinary profit was 20.079 billion yen, net profit was 16.072 billion yen, all with substantial year-over-year increases. Both revenue and profit hit all-time highs for a single third quarter.
• Order value was 143.283 billion yen, a 72.0% increase year-over-year, also an all-time high for the cumulative 9-month third quarter period.
• The main driver of improved profit margin year-over-year was increased sales of the core model NXTR.

Balance Sheet Status

• Accounts receivable, inventory assets, and accounts payable all increased alongside growing mounter demand, which is a temporary increase in working capital driven by near-term order and sales expansion. Sufficient liquidity is maintained, with no obstacles to business operations or future growth investment.

Robot Solution Segment Operational Highlights

• NXTR has expanded penetration across a wide range of industries including communications, AI servers, automotive, and semiconductor-related sectors, reducing the seasonal order volatility that previously came from reliance on specific industries.
• Fasford Technology, the group's die bonder subsidiary, saw a sharp recovery in equipment demand from the general memory market, with substantial order growth that contributed to the segment's all-time high order value.
• By region, compared to the second quarter, China's sales share decreased 8 percentage points due to a temporary slowdown in communications and automotive-related demand; other Asia including India increased 7 percentage points, with particularly strong sales growth to Thailand, driven by ongoing production base diversification trends. North America and Europe are showing early signs of recovery.
• By model, NXT III is already sold out in orders, and sales are expected to shift fully to NXTR in the early part of next fiscal year.

Machine Tool Segment Operational Highlights

• Automotive-related capital expenditure demand was weak across all regions, leading to a weak performance this fiscal year, though early signs of recovery are emerging for next fiscal year. The company is committed to achieving full-year profitability for the segment.

• Management upwardly revised the full-year consolidated forecast originally announced on November 7, 2025, driven by continued strong AI server-related equipment demand and a sharp recovery in semiconductor-related demand from the recovering memory market. Full-year order value is increased by 24 billion yen, sales revenue is increased by 18 billion yen, and operating profit is increased by 8.6 billion yen. Ordinary profit and net profit attributable to parent company shareholders are also upwardly revised. The full-year forecast now expects orders, sales, and all profit metrics to reach all-time highs.
• The upward forecast revision is almost entirely driven by an upward adjustment to the Robot Solution Segment forecast.
• Interim dividend is fixed at 40 yen per share. The planned year-end dividend is set at 40 yen per share at this stage, and will be finalized after full-year results are confirmed, in line with the company's policy of maintaining a payout ratio of 50% or higher and a minimum annual dividend of 80 yen per share.
• AI server-related demand is expected to remain at a high level, with a sufficient backlog of orders including large projects, and visibility for orders through at least the first half of next fiscal year is already clear. Overall order levels are expected to remain near current levels for the foreseeable future, as orders are diversified across automotive, smartphone, industrial equipment, and PC sectors in addition to AI servers.

1. Robot Solution Segment: Third quarter order value was 135.317 billion yen, an 82.1% increase year-over-year; sales revenue was 118.562 billion yen, a 40.6% increase year-over-year; operating profit was 21.936 billion yen, an 84.8% increase year-over-year. This segment accounts for 93.1% of total consolidated sales revenue. By industry, server-related sales share increased from 6% to 23% (17 percentage points quarter-over-quarter), driven largely by AI server demand. By model, NXTR accounted for 36% of high-speed mounter sales, up from the previous quarter, while NXT accounted for 17%. 2. Machine Tool Segment: Third quarter order value was 6.252 billion yen, sales revenue was 7.276 billion yen, and operating profit was 0.16 billion yen. All metrics decreased year-over-year. This segment accounts for 5.7% of total consolidated sales revenue.

• Lead times for certain components, particularly memory, are lengthening in the near term, leading to increasingly tight component procurement conditions. The company is mitigating this by holding appropriate inventory to maintain current production plans, but this remains a near-term supply chain pressure point.
• Global automotive capital expenditure demand remains weak across all regions, putting ongoing pressure on the Machine Tool Segment's performance this fiscal year.

Q: What is the outlook for the sustainability of server demand, and what is the contribution of Fasford Technology?

A: (On server demand sustainability) The company already holds a certain amount of order backlog centered on AI server-related projects including large-scale deals, and expects future orders to remain at high levels, with visibility for projects through at least the first half of next fiscal year. While there is uncertainty beyond that, orders are diversified across automotive, smartphones, industrial equipment, general PCs and other industries, not concentrated only in AI servers, so overall current levels are expected to continue. Demand is strong not only for AI server units but also for related power supply components, and the company expects AI demand to eventually spread to edge devices and end terminals, so it is not focusing only on AI servers. (On Fasford Technology contribution) In the third quarter, total Robot Solution Segment orders were approximately 53.9 billion yen, and Fasford Technology's standalone orders were approximately 7.3 billion yen. For the fourth quarter, Fasford Technology is expected to account for approximately 10% of total Robot Solution Segment orders.

Q: What are the factors driving market share growth in the Robot Solution Segment?

A: First, very strong orders from AI server-related sectors. This is because NXTR has stronger capabilities in terms of compatible substrate size and the functions required for server production compared to the older NXT III. In addition, outside of server-related areas, for example in semiconductor-related sectors, customer equipment certification for NXTR's high precision and high speed has progressed, and this is now translating into actual orders. This accumulation of performance across multiple industries is driving overall market share growth. It is correct that the launch of the new product NXTR has opened up new areas where the company can gain share.

Q: Are there any bottlenecks such as talent or component sourcing in the current production system, amid growing orders and sales?

A: Currently, the NXTR production line is fully operational at 500 units per month capacity. A second production line with the same capacity is under construction, and is expected to be completed by the end of March this year, which will bring total capacity up to 1,000 units per month to meet varying demand levels. On the talent side, the company is advancing production process automation, and by shifting personnel from NXT III production, the 1,000 unit per month capacity plan is already on track. For component sourcing, the company has prepared early for the 1,000 unit per month capacity target by the end of March, so the system is largely in place. However, lead times for certain components especially memory are lengthening recently, leading to tighter procurement conditions. The company is taking all possible measures including holding appropriate inventory, and the outlook for current production plans remains solid.

Q: What is the trend of AI server-related demand in the Thai market?

A: AI server-related capital expenditure demand in Thailand grew rapidly between the second and third quarters. Customer capital expenditure plans have sustainability, and there is clear visibility that this growth will continue going forward.

Q: What is the current status and outlook for smartphone-related capital expenditure in China?

A: The smartphone market overall has seasonal patterns: new project plans and volume gradually become clear after the Lunar New Year, and capital expenditure then progresses from spring to summer. Last year saw concentrated smartphone-related capital expenditure in the first quarter of fiscal 2025, and it is very possible that the same cycle will occur this year. For local Chinese brands, there was concentrated order volume last year driven by Chinese government subsidy policies. The company will continue to monitor local brand capital expenditure tied to the timing of new model launches.

Q: Is the 1.748 billion yen positive operating profit impact from selling price factors primarily driven by unit price increases from the model shift from NXT III to NXTR, and can we assume that direct price hikes or narrowing of discount ranges for existing models have minimal impact? Are discounts like those previously offered for smartphones not being offered this fiscal year?

A: First, the sales price increase from NXT III to NXTR comes from improved functionality of the new model. While NXTR has a slightly higher manufacturing cost than the older NXT III, its selling price more than offsets the higher cost. As a result, even though there is a profit decline from lower component costs tied to lower NXT III sales volume, the profit increase from higher selling prices tied to higher NXTR sales volume more than offsets that decline. It is not true that there are no discounts at all: large-volume customers still make strict discount demands, and this situation has not changed from when NXT III was the core model. However, NXTR maintains strong competitive positioning based on its improved functionality and unique features, and while discount rates vary by region, overall price levels have increased across the segment.

Q: What will be the impact on profit margin next fiscal year from selling price increases versus rising manufacturing fixed costs? Is it possible to achieve significant profit margin improvement, or will rising fixed costs offset the benefit of higher selling prices?

A: The company is implementing measures to minimize the increase in fixed costs: it is limiting headcount increases even as sales volume grows, and advancing automation in production sites. This will allow increased sales volume to translate directly into increased profit.

Q: What is your assessment of the Machine Tool Segment, which appears to be weak in the third quarter compared to peers, and what is your outlook and strategy for next fiscal year?

A: Consistent with prior guidance, the company does not pursue top-line growth for this segment. Instead, the strategy is to focus on turnkey solutions for automotive customers, where the company has a competitive advantage, even if that means operating at a smaller scale, and continuing to focus on generating contribution margin. The third quarter saw a clear impact from reduced automotive sector orders. While the overall market size is shrinking, the company is not pursuing a full-range offering like peers, and instead focuses on building a unique position in this specific niche. The company has started to see new investment projects emerge not only in North America but also India, and will continue to control fixed costs appropriately to generate profit for the segment.