Quick View
| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥1812.4B | ¥1718.7B | +5.5% |
| Operating Income | ¥76.5B | ¥70.0B | +9.3% |
| Ordinary Income | ¥133.7B | ¥86.2B | +54.9% |
| Net Income | ¥105.3B | ¥65.4B | +61.1% |
| ROE | 1.5% | 1.0% | - |
Executive Summary
The first quarter of the fiscal year ending March 2027 delivered higher revenue and operating income from the core business, while Ordinary Income and Net Income increased substantially due to a boost from non-operating income. Revenue was ¥1,812.4B (+5.5% year on year), Operating Income was ¥76.5B (+9.3%), Ordinary Income was ¥133.7B (+54.9%), and Net Income attributable to owners of the parent was ¥90.8B (+58.4%). The increase in Ordinary Income significantly exceeded the growth in Operating Income, with non-operating income items such as foreign exchange gains of ¥17.2B and equity-method investment gain of ¥30.2B making substantial contributions.
Factors Affecting Performance
【Revenue】Revenue increased to ¥1,812.4B, up +5.5% year on year. The core Sealing Business increased to ¥993.2B (+7.8%), while the Electronic Components Business increased to ¥811.2B (+11.1%), with both segments recording higher revenue. However, the Other Businesses contracted to ¥16.8B (-77.8%), partly due to organizational restructuring. The primary drivers of revenue growth were expanding demand in the Sealing Business and increased sales volume in the Electronic Components Business.
【Profit and Loss】Operating Income was ¥76.5B (+9.3%), and the Operating Income margin improved slightly to 4.2% from 4.1% in the same period of the previous year. Operating Income in the Sealing Business increased substantially to ¥96.4B (+47.5%, margin of 9.7%), whereas the Electronic Components Business expanded its operating loss to ¥22.3B (an operating loss of ¥0.2B in the same period of the previous year), indicating a divergence between revenue growth and profit improvement. Ordinary Income was ¥133.7B (+54.9%), significantly exceeding the growth in Operating Income, due to the contribution of non-operating income items including foreign exchange gains of ¥17.2B, equity-method investment gain of ¥30.2B, and dividends received of ¥12.1B. In addition, extraordinary income of ¥8.0B, including a gain on the sale of investment securities of ¥7.6B, supported Net Income, indicating the presence of temporary factors. In conclusion, the consolidated group recorded higher revenue and profit, but the primary drivers of profit growth were non-operating and extraordinary income rather than the core business, while the widening loss in the Electronic Components Business weighed on core profitability.
Segment Analysis
The Sealing Business recorded Revenue of ¥993.2B (+7.8% year on year), Operating Income of ¥96.4B (+47.5%), and a margin of 9.7% (7.1% in the previous year), representing a significant improvement in profitability and making it the core contributor to consolidated earnings. The Electronic Components Business increased Revenue to ¥811.2B (+11.1%), but recorded an operating loss of ¥22.3B, widening from the ¥0.2B loss in the same period of the previous year. The widening loss despite higher revenue suggests challenges related to product mix, fixed-cost absorption, and capacity utilization. The Other Businesses contracted to Revenue of ¥16.8B (-77.8%) due to a review of business classifications, and their impact on the consolidated results was limited. Overall, consolidated Operating Income was driven higher as improved profitability in the Sealing Business offset the widening loss in the Electronic Components Business.
Key Financial Indicators
【Profitability】The Operating Income margin was 4.2%, a slight improvement from 4.1% in the same period of the previous year, while the gross margin remained at 18.8%, indicating a structure in which the cost of sales accounted for 81.2% of Revenue. The Net Income margin increased to 5.0% from 3.3% in the same period of the previous year, but the scale of this improvement significantly exceeded the improvement in the Operating Income margin, indicating dependence on non-operating and extraordinary income.【Quality of Cash Earnings】Ordinary Income of ¥133.7B exceeded Operating Income of ¥76.5B by 74.7%, with items of a non-recurring nature, such as foreign exchange gains and equity-method investment gain, boosting earnings. Comprehensive Income of ¥218.0B significantly exceeded Net Income of ¥105.3B, with valuation differences on securities of ¥77.9B and foreign currency translation adjustments of ¥39.4B making contributions.【Investment Efficiency】ROE was 1.5%, and basic EPS was ¥56.99 (+62.3% year on year). Total asset turnover remained low, indicating room for improvement in core profitability relative to invested capital.【Financial Soundness】The Equity Ratio was 70.5%, and current assets of ¥4,471.4B exceeded current liabilities of ¥2,045.3B, indicating that the financial foundation was generally stable. Cash and deposits of ¥1,424.6B exceeded short-term borrowings of ¥538.7B, providing resilience in short-term liquidity management.
Cash Flow Analysis
As this dataset does not include cash flow statement items, funding trends are analyzed based on changes in the balance sheet. Cash and deposits were ¥1,424.6B, down from ¥1,568.0B in the same period of the previous year, while investment securities increased to ¥1,651.4B from ¥1,529.3B, suggesting that a portion of surplus funds may have been allocated to securities investments. Accounts receivable and notes receivable were ¥1,436.8B, and inventories were ¥1,246.1B; both increased year on year, indicating an increase in working capital associated with revenue growth. Accounts payable were ¥628.7B, down from ¥649.6B in the same period of the previous year, and the reduction in trade payables may also have affected the cash balance. Interest-bearing debt remained at a restrained level, comprising short-term borrowings of ¥538.7B and long-term borrowings of ¥122.9B, indicating a low degree of dependence on external financing.
Quality of Earnings
Profit growth in the current period reflected steady improvement in Operating Income, but attention is warranted because of the high degree of dependence on non-operating income that cannot necessarily be considered recurring. Non-operating income of ¥70.9B comprised foreign exchange gains of ¥17.2B, dividends received of ¥12.1B, and equity-method investment gain of ¥30.2B, all of which are susceptible to fluctuations in foreign exchange rates and the performance of equity-method affiliates. Most of the extraordinary income of ¥8.0B consisted of a ¥7.6B gain on the sale of investment securities, which boosted Net Income as a temporary factor. Net extraordinary income of ¥5.3B after deducting extraordinary losses of ¥2.8B represented 5.8% of Net Income attributable to owners of the parent of ¥90.8B; although its impact was limited, it was not negligible. Comprehensive Income of ¥218.0B significantly exceeded Net Income of ¥105.3B due to valuation-related items such as valuation differences on securities and foreign currency translation adjustments, representing fluctuations of a different nature from period earnings. Accordingly, the fact that growth in Ordinary Income and Net Income (+54.9% and +61.1%, respectively) significantly exceeded growth in Operating Income (+9.3%) indicates an increased dependence on factors outside the core business in terms of earnings quality.
Earnings Forecast and Guidance
The Q1 progress rates against the full-year plan were 23.9% for Revenue, 21.9% for Operating Income, and 27.7% for Ordinary Income. Operating Income progress was below the standard 25%, indicating that core business growth was proceeding at a somewhat slower pace toward achievement of the full-year plan. Meanwhile, Ordinary Income progress exceeded the standard, with non-operating factors such as foreign exchange gains and equity-method investment gain contributing to the upside. The full-year plan anticipates higher revenue and profit, with Revenue growth of +2.5% and Operating Income growth of +6.1%, while forecasting a -3.1% decline in Ordinary Income. This may reflect an assumption that the boost from non-operating income in Q1 will not continue throughout the full year. No revision to the earnings forecast was made in this quarterly results announcement.
Shareholder Returns
The full-year dividend forecast is ¥140.00 per share, and the full-year EPS forecast is ¥285.22, resulting in a Payout Ratio of approximately 49.1%. No revision to the dividend forecast was made on this occasion. In addition, a management integration through the establishment of a joint holding company via a share transfer with Eagle Industry Co., Ltd. is scheduled for October 1, 2026. The dividend forecast was calculated based on the Company’s current organizational structure. The dividend policy following the integration is expected to be announced again by the holding company, and changes from the current level are possible.
Risk Factors
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Widening loss in the Electronic Components Business: Despite higher Revenue of ¥811.2B (+11.1% year on year), the operating loss widened to ¥22.3B from the ¥0.2B loss in the same period of the previous year. The fact that increased revenue has not translated into profit indicates challenges related to product mix and fixed-cost absorption capacity.
-
Dependence on non-operating income: Foreign exchange gains of ¥17.2B represented 22.5% of Operating Income of ¥76.5B, and Ordinary Income exceeded Operating Income by 74.7%. Equity-method investment gain and foreign exchange gains are susceptible to market and foreign exchange fluctuations, resulting in greater volatility in Ordinary Income than in the core business.
-
Uncertainty associated with the management integration: A management integration through the establishment of a joint holding company with Eagle Industry Co., Ltd. is scheduled for October 2026. Organizational restructuring, systems integration, and a review of capital policies, including the dividend policy, are expected to be implemented.
Industry Benchmark (For Reference; Compiled by the Company)
Industry Benchmark (manufacturing)
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 4.2% | 8.7% (4.2%–14.3%) | −4.5pt |
| Net Income Margin | 5.8% | 7.1% (3.2%–10.6%) | −1.3pt |
Both the Operating Income margin and Net Income margin were below the industry median, placing profitability in the lower tier of the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | 5.5% | 6.2% (-1.1%–14.6%) | −0.7pt |
The Revenue growth rate was slightly below the industry median and remained approximately at the middle level within the industry.
※Source: Compiled by the Company
Key Takeaways from the Financial Results
-
The Operating Income margin of the Sealing Business improved to 9.7% from 7.1%, making it the core contributor to consolidated earnings, while the Electronic Components Business expanded its operating loss to ¥22.3B despite higher revenue. The profitability gap between the two businesses is therefore a determining factor for the consolidated margin.
-
Growth in Ordinary Income (+54.9%) significantly exceeded growth in Operating Income (+9.3%), confirming dependence on items with a non-recurring nature, such as foreign exchange gains, equity-method investment gain, and gains on the sale of investment securities.
-
Against a financial foundation comprising an Equity Ratio of 70.5% and cash and deposits of ¥1,424.6B, the Company is preparing for the management integration through the establishment of a holding company scheduled for October 2026. Capital policies, including the dividend policy, are expected to be announced again following the integration.
Theoretical Share Price (Reference Value)
| Scenario | Theoretical Share Price |
|---|---|
| bear (Bearish) | ¥3,747 |
| base (Base) | ¥3,828 |
| bull (Bullish) | ¥3,904 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥3,979 |
| Adjusted Forecast EPS | ¥314.5 |
| Cost of Equity r | 9.27% (10-year Japanese government bond 2.77% + Equity Risk Premium 6.00% + Size Premium 0.50%) |
| Residual Income Persistence Factor ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 49.1% |
| Forecast EPS Confidence Adjustment | ×1.103 (based on the industry’s historical guidance achievement rate) |
| implied PBR / PER | 0.96x / 12.2x |
Sensitivity: ¥3,723–¥3,937 at ±1% for the Cost of Equity, and ¥3,822–¥3,831 at ±0.1 for ω.
Notes:
- Because forecast ROE is below the Cost of Equity, the theoretical value is below Book Value Per Share.
- Net assets as of the end of the quarter are used (there is a timing difference relative to the full-year forecast).
(Calculation model: Residual Income Model (Ohlson-type, explicit 5-year fade) / Interest rate reference month: 2026-07 / Mechanically calculated value based solely on publicly disclosed data; this is not a forecast of the market share price or a recommendation of any specific investment action, nor does it predict or guarantee future share prices.)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmark is reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting a professional adviser as necessary.
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AI Financial Analysis
Executive Summary
NOK delivered a constructive FY2027 Q1 result, with moderate top-line growth translating into stronger operating and substantially higher below-the-line earnings. Revenue increased 5.5% year on year to ¥181.2bn. Operating income rose 9.3% to ¥7.7bn, outpacing sales growth and indicating modest operating leverage. The operating margin improved by 15 basis points to 4.2% from 4.1%. Gross profit increased 8.7% to ¥34.1bn. The gross margin expanded by 56 basis points to 18.8% from 18.2%, although it remains below the 20% benchmark and signals a still-thin manufacturing profit buffer. SG&A expense increased 8.5%, faster than revenue growth, and the SG&A-to-sales ratio rose by 41 basis points to 14.6%. Ordinary income surged 54.9% to ¥13.4bn, materially exceeding the operating-profit improvement. This was supported by ¥7.1bn of non-operating income, including ¥3.0bn of equity-method earnings, ¥1.7bn of foreign-exchange gains and ¥1.2bn of dividend income. Profit attributable to owners increased 58.4% to ¥9.1bn, while reported net margin reached 5.0%, up from 3.3% in the previous-year quarter. Extraordinary gains of ¥0.8bn, mainly a ¥0.8bn gain on sales of investment securities, also supported pretax profit. Comprehensive income rose sharply to ¥21.8bn, aided by valuation and foreign-currency translation gains, which strengthened equity but do not carry the same recurrence as operating earnings. The Seal business was the clear earnings driver, whereas the Electronic Components business remained loss-making despite revenue growth. Balance-sheet liquidity is strong, with a 218.6% current ratio, cash of ¥142.5bn and cash equal to 2.64x short-term borrowings. Financial leverage is conservative at 0.42x debt-to-equity, but 81.4% of interest-bearing debt is short term and requires ongoing refinancing discipline. Full-year guidance implies a relatively back-end-loaded profit plan, particularly for operating income and profit attributable to owners. The planned October 2026 business integration with Eagle Industry introduces execution and capital-allocation considerations, including the future dividend framework under the proposed holding company. Overall, the quarter shows improvement in core profitability, but the durability of earnings depends on restoring the Electronic Components segment, maintaining Seal margins, and reducing working-capital intensity.
Profitability Analysis
Annualized DuPont ROE is 5.3%, comprising a 5.0% net profit margin, 0.750x annualized asset turnover and 1.42x financial leverage. The principal improvement versus the prior-year quarter came from margin recovery rather than financial leverage, as operating income grew faster than revenue and significant non-operating gains lifted net income further. The gross margin improved to 18.8%, but remains flagged as low for a manufacturing business because a sub-20% gross margin leaves limited protection against material, labor, energy and pricing pressure. Operating margin improved to 4.2%, but remains below the 5% efficiency threshold; this is the LOW_OPERATING_EFFICIENCY alert and indicates that the group has not yet achieved a robust earnings buffer. SG&A rose 8.5% against 5.5% revenue growth, creating negative cost leverage below the gross-profit line and limiting the conversion of gross-profit improvement into operating-margin expansion. Ordinary income was ¥13.4bn versus operating income of ¥7.7bn because non-operating income totaled ¥7.1bn, equivalent to 3.9% of revenue and 92.8% of operating income. Equity-method earnings of ¥3.0bn, FX gains of ¥1.7bn and dividend income of ¥1.2bn were important contributors; therefore, the 58.4% increase in attributable profit was materially stronger than the 9.3% operating-income increase. The five-factor DuPont interest burden was 1.816x, above 1.0x because non-operating income exceeded interest costs, rather than because of operating-profit strength alone. Interest coverage of 12.52x remains sound, with ¥0.6bn of interest expense well covered by EBIT. The 24.2% effective tax rate was reasonable, with a tax burden of 0.653. The CAPITAL_EFFICIENCY alert is justified by ROIC of 3.8%, below the 5% caution level; this suggests returns remain below a desirable hurdle relative to the sizeable asset base and investment portfolio. The Seal business is the core business by operating-income contribution: revenue increased 7.8% to ¥98.5bn and segment profit rose 47.5% to ¥9.6bn, lifting its margin to 9.7% from 7.1%. Electronic Components revenue grew 11.2% to ¥81.1bn, but its segment loss widened to ¥2.2bn from a ¥0.1bn loss, making segment recovery the central operating issue. Other businesses reported revenue of ¥1.7bn and segment profit of ¥0.2bn, versus ¥7.6bn and ¥0.6bn respectively, following a segment reclassification that moved certain operations into the Seal business.
Growth Assessment
Revenue growth of 5.5% was supported by both major operating segments, with Seal revenue up 7.8% and Electronic Components revenue up 11.2%. Seal's 47.5% segment-profit growth demonstrates strong incremental profitability and was the main reason consolidated operating income rose faster than sales. In contrast, the wider Electronic Components loss indicates that volume growth has not yet translated into adequate pricing, utilization, product mix or cost absorption. Consolidated gross-profit growth of 8.7% exceeded revenue growth, supporting the view that some underlying product-mix or cost improvement occurred in the quarter. However, SG&A growth outpaced sales, so operating-margin expansion was limited to 15 basis points. Non-operating earnings were a substantial driver of reported profit growth and should not be treated as fully equivalent to recurring operating improvement. FY2027 guidance calls for revenue of ¥756.6bn, operating income of ¥35.0bn, ordinary income of ¥48.3bn and attributable profit of ¥46.4bn. Q1 progress was 24.0% for revenue, 21.9% for operating income, 27.7% for ordinary income and 19.6% for attributable profit, compared with a standard 25% first-quarter run rate. Revenue and ordinary-income progress are broadly consistent with the annual plan. Operating-income progress is 3.1 percentage points below a linear run rate, while attributable-profit progress is 5.4 percentage points below, implying that management expects improved profitability later in the year. The guidance assumes 2.5% revenue growth and 6.1% operating-income growth for the full year, which is less demanding than the Q1 sales trajectory but requires improved conversion of revenue into operating profit. The absence of a forecast revision after Q1 indicates management has retained its existing assumptions. The prospective integration with Eagle Industry could expand strategic and operational opportunities, but realization will depend on disciplined integration and a clear governance framework.
Financial Health
Liquidity is strong: current assets of ¥447.1bn cover current liabilities of ¥204.5bn by 2.19x, and the quick ratio is also healthy at 1.58x. Working capital totals ¥242.6bn, providing a substantial near-term liquidity cushion. Cash and deposits of ¥142.5bn cover short-term loans of ¥53.9bn by 2.64x. Total interest-bearing debt is ¥66.2bn, equivalent to only 8.9% of capital and 0.42x total equity, indicating a conservative solvency profile. Total liabilities represent 29.5% of total assets, while total equity represents 70.5%, supporting balance-sheet resilience. The REFINANCING_RISK alert nevertheless merits attention because ¥53.9bn, or 81.4% of interest-bearing debt, is short term. This maturity structure is manageable given cash resources and the current ratio, but it increases sensitivity to bank-market access, short-term funding costs and rollover conditions. Long-term loans declined to ¥12.3bn from ¥14.4bn, while short-term loans increased by ¥5.7bn year on year, reinforcing the concentration of debt maturities at the short end. Interest coverage of 12.52x provides a strong cushion against current financing costs. Investment securities of ¥165.1bn equal 17.1% of total assets and contribute to financial flexibility, although they also expose equity and comprehensive income to market-value movements. Deferred tax liabilities of ¥26.8bn and net defined-benefit liabilities of ¥33.9bn are meaningful long-term obligations but are well supported by the equity base. Treasury stock decreased in absolute value from negative ¥2.6bn to negative ¥1.6bn, a ¥1.0bn reduction or 38.3% change, consistent with a smaller treasury-share deduction and modest support for equity per share. The planned joint holding-company formation with Eagle Industry is a material prospective corporate action that may alter capital structure, shareholder returns and funding arrangements.
Notable B/S Changes
Investment securities: +¥122.1bn (+8.0%) year on year to ¥165.1bn - the absolute increase exceeds ¥50bn and raises exposure of equity and comprehensive income to market valuation movements. Accumulated other comprehensive income: +¥105.6bn (+5.8%) year on year to ¥191.1bn - mainly reflects valuation and translation movements, strengthening reported equity but with market- and FX-sensitive characteristics. Short-term loans: +¥57.0bn (+11.8%) year on year to ¥53.9bn - the absolute increase reinforces the short-term debt concentration and refinancing-risk monitoring need. Treasury stock: +¥1.0bn (+38.3%) year on year, from negative ¥2.6bn to negative ¥1.6bn - the smaller treasury-stock deduction modestly supports equity per share.
Cash Flow Quality
Dividend Sustainability
The full-year dividend forecast is ¥140 per share, unchanged from the prior forecast. Against forecast EPS of ¥285.22, the implied dividend payout ratio is approximately 49.1%, which is within the sub-60% sustainability benchmark. The forecast dividend is supported by a large equity base, conservative debt-to-equity of 0.42x and strong cash coverage of short-term borrowings. Q1 attributable EPS was ¥56.99, representing 20.0% of forecast full-year EPS, so the planned dividend relies on the expected second-half earnings contribution embedded in management guidance. The planned October 2026 integration with Eagle Industry adds uncertainty to the ultimate shareholder-return framework because NOK has stated that the future holding company's dividend forecast will be announced separately. Accordingly, the current ¥140 forecast should be viewed as based on NOK's existing corporate structure rather than as a confirmed post-integration holding-company policy.
Risk Assessment
Business risks include Electronic Components is the highest-priority operating risk: segment revenue rose 11.2% to ¥81.1bn, but the loss widened to ¥2.2bn from ¥0.1bn. Continued losses could offset Seal business earnings and constrain group margin expansion., The LOW_GROSS_MARGIN alert reflects an 18.8% gross margin, below the 20% benchmark. For a manufacturer, a limited gross-profit cushion increases sensitivity to raw-material prices, energy costs, wage inflation, supplier pricing and customer price negotiations., The LOW_OPERATING_EFFICIENCY alert reflects a 4.2% EBIT margin, below 5%. The group needs sustained productivity, mix and pricing gains because SG&A increased 8.5%, faster than revenue growth., The HIGH_RECEIVABLE_DAYS alert of 72 days indicates slower customer collection than the 60-day warning threshold. This can absorb liquidity and may signal customer-credit, billing-cycle or channel-inventory risk., The HIGH_INVENTORY_DAYS alert of 77 days exceeds the 60-day efficiency benchmark. Elevated inventory increases working-capital requirements and creates obsolescence or demand-mismatch risk, particularly in electronic components., The FX_EXPOSURE alert is material: Q1 FX gains were ¥1.7bn, equal to 22.5% of operating income. This demonstrates that currency movements can materially affect reported earnings and that favorable FX gains may reverse., The planned business integration with Eagle Industry creates execution risk around systems, governance, cost synergies, employee retention and the transition to a holding-company dividend policy..
Financial risks include The REFINANCING_RISK alert stems from an 81.4% short-term debt ratio. Although cash covers short-term loans by 2.64x, reliance on short-tenor borrowings requires continued access to funding markets., ROIC of 3.8% triggers the CAPITAL_EFFICIENCY alert and indicates that returns on the capital employed remain modest. This could limit value creation if investments or integration-related spending do not earn higher returns., Investment securities of ¥165.1bn, or 17.1% of total assets, expose equity and comprehensive income to market-price volatility; valuation gains were a notable contributor to comprehensive income., Non-operating income of ¥7.1bn was large relative to ¥7.7bn of operating income. Changes in equity-method earnings, dividend income, FX and investment gains can create volatility in ordinary and net income..
Key concerns include Sustainability of the earnings rebound depends more on operating recovery in Electronic Components and continued Seal margin strength than on non-operating gains., Working-capital discipline is a key monitoring point because both receivable days and inventory days exceed warning thresholds., The profitability gap between the Seal segment's 9.7% margin and the Electronic Components segment's loss highlights uneven portfolio performance., Post-integration capital allocation, funding arrangements and shareholder-return policy require close scrutiny..
Investment Implications
Key takeaways include Q1 revenue, operating income and attributable profit increased 5.5%, 9.3% and 58.4% year on year, respectively., Seal is the earnings engine, generating ¥9.6bn of segment profit and a 9.7% margin, while Electronic Components generated a ¥2.2bn loss., Reported earnings benefited materially from ¥7.1bn of non-operating income, including equity-method income and FX gains., Liquidity and leverage are strong, but debt maturity is concentrated in short-term borrowings., The ¥140 full-year DPS forecast implies a 49.1% dividend payout ratio based on forecast EPS, subject to the planned holding-company transition..
Metrics to watch include Electronic Components segment loss and its path toward breakeven, Seal segment margin following the Q1 increase to 9.7%, Consolidated gross margin and operating margin, currently 18.8% and 4.2%, Receivable days of 72 and inventory days of 77, FX gains or losses relative to operating income, Short-term debt ratio of 81.4% and cash-to-short-term-debt coverage, Progress against full-year operating-income guidance of ¥35.0bn, Integration milestones and the post-integration dividend policy.
Regarding relative positioning, NOK combines a conservatively capitalized balance sheet with sub-benchmark operating profitability and low capital efficiency. Its core Seal business shows solid margin recovery, but the loss-making Electronic Components operation, elevated working-capital days and material FX/non-operating contribution leave earnings quality and return improvement as the principal areas for assessment.