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This is Yoshida. Today, I would like to explain the consolidated financial results for the first quarter of the fiscal year ending March 2022. And then Mr. Kainuma, Representative Director, CEO and COO, will explain the highlights of this fiscal year. Page 2, please. Consolidated net sales for the first quarter of the fiscal year ending March 2022 was up 32.5% year-on-year and down 1.1% quarter-on-quarter to total JPY 248.305 billion. Operating income totaled JPY 19.628 billion, which was 5.8x higher than what it was in the first quarter of last year and up by 83.6% quarter-on-quarter. Profit for the period attributable to owners of the parent increased 6.6 fold year-on-year and a 2 fold quarter-on-quarter for a total of JPY 14.659 billion. We estimate that the foreign currency translation have a year-on-year impact of plus JPY 6.9 billion in net sales and minus JPY 0.2 billion in operating income. Quarter-on-quarter impact was plus JPY 7.0 billion in net sales and plus JPY 1.9 billion in operating income. We mad a slight retrospective changes to last fiscal year's financial statements due to the PPA for ABLIC. Please note that figures on the following pages are the revised ones.
Moving on to the next slide. This is for quarterly trend in net sales, operating income and operating margin. The operating margin for the first quarter was 7.9%, up 6.1 percentage points year-on-year and up 3.6 percentage points quarter-on-quarter.
Next slide, please. Here shows the difference between the forecast as of May and actual results for net sales and operating income by business segment for the first quarter. While net sales for the machined components business segment had a strong start, overall sales were generally in line with our forecast due to a slight decrease in sales to the automobile industry caused by a shortage of semiconductors. In the electronic devices and components business segments, sales for electronic device were higher than forecasted. The MITSUMI business enjoyed higher-than-projected sales for mechanical components, analog semiconductors and optical devices. The U-Shin business saw slightly higher-than-expected sales, mainly in the automobile market.
Operating income for the machined components business segment were almost on par with the forecast. The electronic devices and components business enjoyed higher-than-expected operating income, due mainly to the recovery of expenses in the previous fiscal year. The MITSUMI business enjoyed higher-than-expected operating income as a result of increased sales. The U-Shin business saw lower-than-expected operating income due mainly to the impact of onetime costs for the consolidation of U-Shin's retirement benefit plans.
Next slide, please. Now let's take a look at the results by segment, starting with machined components business segment. On the left is a graph indicating quarterly net sales trends, and on the right is a graph with the bar chart for quarterly operating income trends, along with a line chart for operating margins. First quarter net sales were almost on the par with previous quarter to total JPY 44.1 billion. Ball bearing sales increased 2.5% quarter-on-quarter to total JPY 32.2 billion. The monthly external shipment volume was up 1.2% quarter-on-quarter for an average of 246 million units. The growing shipment volume of data center ball bearings continued to drive sales upward.
Sales of aircraft bearings remained sluggish due to the stagnant market. Sales of rod-ends/fasteners totaling JPY 6.4 billion were down 11.1% from the previous quarter. Although this has not yet led to an improvement in net sales, at this point, we are seeing bright signs in the aircraft sales. Sales of pivot assemblies remained at the same level quarter-on-quarter to total JPY 5.5 billion. Operating income for the quarter totaled JPY 10.9 billion, and the operating margin was 24.8%, which is higher than the pre-COVID level. On a quarter-on-quarter basis, operating income rose 23.5%, while the operating margin improved 4.8 percentage points. Looking at the results by product, we see that profits for ball bearings, rod-end/fasteners and pivot assemblies all increased quarter-on-quarter.
Next slide, please. Now let's look at the electronic devices and components segment. Net sales decreased 4.7% quarter-on-quarter to hit JPY 90.4 billion. Looking at the results by product, we see that the sales of motors increased 6.1% quarter-on-quarter to reach JPY 62.4 billion (sic) [ JPY 64.2 billion ]. This is because of the robust sales in all types of motors, mainly in the HDD and in the automobile market. Sales of electronic devices were down 29% from the previous quarter to a total of JPY 17.3 billion. This decrease was due primarily to a loss of approximately JPY 4.1 billion incurred as a result of the transfer of some businesses beginning in the fiscal year ending in March 2022, hereafter referred to as the impact of the business transfer. And for your reference, figures for years up until fiscal year ended March 2021 are based on the classification before the business segments were changed. Please note that the same applies to the rest of the presentation.
Sales of sensing devices, totaling JPY 8 billion, were down 10.2% from the previous quarter. Operating income came to JPY 17.9 billion, and the operating margin was 8.7%. On a quarter-on-quarter basis. Operating income increased 39.2% while the operating margin rose 2.7 percentage points. Looking at the results by product, all the profit of sensing device decreased. Profits for electronic devices increased due mainly to the recovery of expenses in the previous fiscal year, while profit of motor was about the same as the previous quarter.
Next slide, please. So let's look at the performance for the MITSUMI business segment. Net sales decreased 3.3% quarter-on-quarter to total JPY 76.8 billion. Although sales of mechanical components and analog semiconductors increased, thanks to strong demand. Overall sales for the segment declined due to the impact of the business transfer. Operating income totaled JPY 5.1 billion, while the operating margin was 6.6%. On a quarter-on-quarter basis, operating income increased 77.7%, while the operating margin rose 3-point percentage points. The primary factors behind these increases include a further increase in the profitability of analog semiconductors in addition to the onetime costs recorded in the previous quarter. You can see the operating income for this first quarter became negative, but this is due to the retrospective changes to the figures each quarter of last fiscal year due to the finalization of PPA for ABLIC.
Going on to the next slide. Finally, let's look at the U-Shin business segment. Net sales rose 14.3% quarter-on-quarter to hit JPY 36.9 billion. Although there was a negative impact from production adjustment of some automotive OEMs due to the semiconductor shortage, overall sales for the segment were up due to the impact of the business transfer. While our operating loss totaled JPY 0.1 billion and operating margin was minus 0.2%, if the impact of the onetime cost for the consolidation of U-Shin's retirement benefit plans were not factored in, operating income would be JPY 0.4 billion and operating margin would be 1%.
Going to the next slide. The bar graph here shows trends in profitable -- profit attributable to owners of the parent, while the line graph chart changes in the profit for the period per share. The profit for the period was JPY 14.7 billion. Earnings per share was JPY 36.1.
Moving on to the next slide. In this slide, we show the quarterly inventory trend. At the end of the first quarter, inventory totaled JPY 195.5 billion, which is JPY 24.1 billion more than what it was 3 months ago. This is due primarily to the fact that we stated the accumulated inventory to secure what was necessary for a currently anticipated sales increase.
Going to the next slide. This graph contains a bar chart showing trends in net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents, and a line chart indicating free cash flows. At the end of the first quarter, net interest-bearing debt totaling JPY 94.5 billion was up JPY 10.2 billion from what it was at the end of the previous fiscal year.
Moving on to the next slide. We made an upward revision to the full year forecast for the fiscal year ending March 31, 2022, which we announced in May. This latest revision, which is made only to the forecast for the first half was prompted by higher-than-projected first quarter results and the expectations that demand for ball bearings, motors, analog semiconductors, et cetera, will continue in the second quarter. We have revised the forecast for net sales from JPY 1 trillion to JPY 1.05 trillion for operating income from JPY 80 billion to JPY 87 billion, respectively. The exchange rates assumed to be JPY 110 to the U.S. dollar for the second quarter. We have not changed assumptions for the second half.
Going to the next slide. This slide shows the forecast by business segment.
This ends my presentation. Mr. Kainuma, the floor is yours.
I would like to touch upon the highlights for today. Page 14, please. So compared with the same period last year, ABLIC PPA we had, and therefore, we cannot make apple-to-apple comparison. However, first quarter performance improved quite significantly. The material shortage -- material price soaring and the shortage of semiconductors, those are some negative impact. However, the ForEx impact turned favorable to us and all businesses are going quite well. So we are more than offsetting the negative impact. And the machined components operating income recovered. And if aircraft business recovers, then JPY 50 billion will be a very achievable.
Pivots are decreasing, but bearing total demand is quite robust, and therefore, we would like to make a new capital investment, which I would like to come back later on and give you more details. Semiconductors, this is a typical subject nowadays. It's going extremely well. 2 or 3 years ago, we were talking about the JPY 10 billion target. However, we are very close to achieving JPY 10 billion in half year. That's one good news, and that is U-Shin highlighted in red. In 10 years, JPY 100 billion door handle business. A super huge auto manufacturer is the client for this door handle business. And U-Shin has become the first vendor for this client and the global door handle manufacturers must have been shocked by this news. And U-Shin business, the reason why we acquired U-Shin is because of many potential synergistic effects and electrification of door handles. And our analog semiconductors and many other components shall be positively impacted by this trend, that is what we thought. And our customers are fully aware of this, and our operation is global. And therefore, we can respond to huge-scale orders, and that is a fact.
And we now have it on our hand, not just drawer handles but CSD compact spindle drives, inclusive of China, major manufacturers, hatchbacks are adopting our products. So for automobile products, it always takes time. However, in terms of the direction, I think we are moving towards a good direction. So that is news I wanted to share with you.
Page 15, please. As you may already know, since the end of this year towards the first and second quarter of next year, 345 million unit production capacity, we would like to prepare. But we would like to increase that to 365 million units of capacity. So last year, we made JPY 10 billion. And next year, we will make a JPY 10 billion as well. And if you look at this top right diagram, you can understand that in 2017, it was 250 million. And then by improving productivity, the number increased to 285 million. And then we worked on eliminating bottlenecks, and from 300 million, 315 billion and to 325 million, the business divisions kept improving and 345 million -- has been once again increased to 365 million unit. So the automotive PM motors demand is growing. And I always said that even when vehicles are electrified, the PM motors will always be needed. Since 2017, it's 4 or 5 years. And in 4 or 5 years' time, we were in a situation where we had to increase the capacity by 110 million units. So there is this strong demand increase.
So in Thailand, we have been building a multipurpose factory. So we act quickly. So we have decided to put the equipment into -- facility this factory. In 2011, it was about 10 years ago, so there has been flood. This was unforgettable. So in the -- we'll make the former new factory, that's a strange way to put it, but in HD, this is planned. We built that factory immediately. After that, the flood hit us. Of course, we will not receive any damage. But taking 10 years, we have been putting in this equipment. And step-by-step, the depreciation is going to be burden -- it is going to be fewer. So through this investment, so even if you have a JPY 20 billion investment in terms of depreciation, it won't change. So this was a kind of a positive cyclical situation is what we are looking at.
So in terms of the bearing -- competitiveness in bearing, including supply capability, it means that we are, by far, most established in this area, and I'm very confident that we'll be able to hold that position.
Going to Page 16, to the aircraft business. Well, the things have not changed, but maybe slightly better than last year. That said, as you know, the United Airlines, they have bought 200 Airbus aircraft. And thus Boeing, they have become profitable. In the U.S., the domestic traffic has started to come back. Well, they have recovered to a certain level. And going forward, towards carbon neutral, so the environment-friendly engine or efficient aircraft, so the demand for that type of aircraft is going to increase.
So what's happening in automotive? So this explosive demand is not improbable, that's what I'm thinking about aircraft. So actually, last week, in terms of the -- there is the global sales develop and business people for the global aircraft business. So we had a meeting. From the second half of last year, the anticipation is that the business is going to recover strongly. And actually, I think so, too. And I have been -- I have been saying it personally, I think so that the recovery is going to be seen in the second half next year. But the single aisle, meaning that there's only one aisle between -- and the ones seat in each side of the aisle, that will be the main type of aircraft that's going to recover.
For the double aisle aircrafts, the recovery will take some time to recover. That's what I have been communicated. But in terms of sales, if the single aisle aircraft has started to recover, I think basically the impact on the sales will be the same because we -- basically, I think we'll be able to go back to the pre-COVID levels. Going to Page 17 for the Motors business this year, so at least JPY 60 billion higher than that -- the growth will be higher than that. So 260, 270 that will be the level that we will be targeting.
So then, well, -- in terms of the major business portion of the business, I think, is going to go up 30%. So what's contributing to this is the hard disk drives and automotive. You can see that automotive is contributing to a lot -- of course, there's not a lot of new products outside the automotive business. But for the automotive business, as a trend, we have been -- our products has been -- started to be taken up by a lot of OEMs. But we have started to see these new models ramping up, and we have seen that being reflected to our numbers. So the motor business is the second sphere within our businesses within our 8-sphere Strategy. And I'm confident that this is going to continue to go strongly.
Page 18, this is about the semiconductor business. The last day, for the sell-side analysts, I had conducted a meeting about the analog semiconductors. The material is uploaded in our homepage or the website. So for those who are not taking a look at this material, please check it out. So roughly speaking, the [ JPY 10.5 billion ] for the year, it has been able to be -- get to that level. So if that is the case, so is it JPY 20 billion for the -- from first half? No, things will not go that way because -- in the Yasu factory, we have acquired the Yasu factories. So from the first of October, this will become one of our factories. And the designers and engineers in Gunma or Gifu, we've hired 60 of these workforce. So the cost will come first. So that will be for the half year, about JPY 1 billion for this type of cost. So when this is going to contribute to profit contribution, I think this will be from the second half of last year. So until then, it will be a kind of a cost will come up. So if you exclude the -- excluding the cost, maybe JPY 18 billion is what we're looking at for the profit.
So one piece of new information is, highlighted in red here, subsidy has been granted. JPY 4 billion, approximately, we will receive. So a major part of this will be subsidized. Following the government policy, we would like to become even more competitive analog semiconductor manufacturer.
Page 19, please. So or JPY 100 billion target that we have been talking internally for some time, and in terms of the sales, we will be ranked among the top 10. And analog semiconductor market is JPY 36 trillion. And you may say, it's only JPY 100 billion. However, bearing, JPY 1.2 trillion is the size of the market. And we are focusing on 22-millimeter and lower and have JPY 1 trillion of sales. So just like bearing, we would like to pursue niche strategy, so to speak. In other words, we will focus our efforts on profitable and promising areas. And then we will be able to put together a bearing-type business model. I am confident about that. So as soon as we can, we would like to make Yasu plant a source of the profit, and that is the critical path for analog semiconductor.
Page 20, please, optical devices, in other words, subcore business for us. The production is going smoothly. And the area will face seasonality, particularly smartphones. And starting in Q2, it will make -- start making a contribution to profit. And game consoles are very robust. And logistics are related, like containers are in short. And the semiconductors related, there is also a shortage and the customers have no other choices but to adjust production because of such situation. But these 2 things that I have just described, the game consoles and smartphones, in July onwards, will be generating a profit and making contribution.
Page 21, recently, what's been reported in news media is the spread of COVID-19 in Southeast Asia. As you may be aware, in various countries in Southeast Asia, various clusters are formed at various locations. Our operation has been continuing without any major problems. But of course, there are some employees who have been infected with the virus, but we had more than 200 CEO-led meetings on countermeasures in 18 months. And we are making thorough countermeasures, which has been highly evaluated by the government of various countries. So they have high confidence in us. In supply chain, we also have issues, but we are making hard efforts in order to maintain high utilization.
Page 22, please. EBITDA will probably exceed JPY 103 billion -- or JPY 130 billion. And our share price, the evaluation on our company, we are not satisfied or convinced by the current share price. The PR is 59x -- or 19x. And the median in electric sector is 22.5 and 28.8 is the average. And now it's 18-point or something. So we are undervalued. But this year onwards, we decided to include the absolute amount of market cap. So how we can please our shareholders by improving the market cap. That is another area we would like to exert our utmost efforts into.
Page 23 shows ESG topics. The major earthquakes -- because of the major earthquakes, some children lost their parents. So we are focused on Single-Parent Support Organization. And likewise, on Page 24 on Page 25, is one message I wanted to share with you. In May, we had a financial result announcement for March 2021. And JPY 82 billion is our ability and then JPY 50 billion operating profit, we wanted to generate. And the market recovery and ForEx are swinging back. Now we can perform at our fullest ability. But in terms of the JPY 81 billion, it's a true profit capability compared to what I said last May. Well, first of all, the semiconductor business is growing strongly. But 2 years ago, I said that we're going to target JPY 10 billion, but we have been able to -- looking at the momentum, that we're going to achieve this in half a year. And the ball-bearing business is growing, the motor business is growing. So out of the spheres, the core businesses has been improving by leaps and bounds, and that has been contributed to our profit.
So this February, so when we made the material in the third quarter of the fiscal year ending March '21, I'm showing you this. So this is the image, estimated breakdown of the JPY 100 billion. So this is on the lower right-hand side, this is the estimate announced in May 2017. So this is a kind of a 2-year delay that we're looking at. So M&A of JPY 15 billion. So this is ABLIC and U-Shin. So maybe this can be considered in this manner. So if this momentum holds, the actual strength of OP, JPY 100 billion, I think basically, we have been able to lay the foundation for that.
So machined components, if the aircraft business comes back, I think basically, you'll be able to understand will go over JPY 50 billion. So you're seeing JPY 10 billion is quite tough, and that's to achieve the next fiscal year. But maybe there's some differences depending on IT, but electronic devices, MITSUMI. And then I think, basically, all that combined will be able to exceed JPY 60 billion. So roughly speaking, I think basically, this is how our [ February ] would look like. So this is all for me. Thank you very much.
Next, I would like to go into Q&A. The first question is from Goldman Sachs. Takayama-san, please?
I have 3 questions. So first of all, this is a ball-bearing added capacity. You talked about the multipurpose factory. So in this past 3 months, for the next year onwards, you are anticipating the management continue to be strong for the next year onwards. So for the second half, are you becoming more and more confident that the strength of the demand will continue? So for instance, in these -- I think 3 months ago, I think you were debating that maybe in the second half, it's going to see a reactionary drop. But as I look at the other companies' results and the other company is saying that maybe the second half will be -- remain strong. So I want to understand the background of you making these comments.
So yes, the question I was spun around one by one, so Kainuma will respond. So this technological trend is, you have the EV or the electrification of the automotive-s and then the number of ball bearings will increase. I have been communicating that to you from before. So that has become a reality. So the volume will go up -- has started to go up, that is. And for the automobiles, the inventory -- basically, there's no inventory for that industry. So to hold the inventory, this goes the same for the ball bearings. You have to increase the capacity, or else the adequate supply cannot be guaranteed to our customers. So that is the background.
So from our point of view -- so we have been saying that it's going to increase in terms of CAGR, maybe 8% is going -- that's going to be the growth of the ball bearing business. And actually, things are trending in line with our outlook. So that's the reason why we have decided to conduct the CapEx. So we are the front runner in this industry, so we can't be complacent. We always have to be able to supply and then move forward. I think that's important. Does that answer your question?
So in the second half outlook, it becomes brighter compared to before or from -- well, we have not conducted a very precise analysis of the second half. But in terms of the -- we feel that second half can be strong.
Understood. And the second question is the MITSUMI business, the first half operating profit initially, 11.5%, I think you have upgraded that to 13.5%. So in ABLIC, there's quite the upgrade. So how about is the breakdown: game, OS, ABLIC. If you break down the MITSUMI business in that way, what would be contribution be to the businesses?
Yoshida-san will explain about that.
In the first half -- first half total is what you're asking about. So this is for the MITSUMI business. First half MITSUMI -- first quarter and second quarter, the first half total. Is that okay with you? .
Yes.
So the JPY 2 billion in the first half, we're going to exceed the first half target by that level and most of it is coming from the semiconductor business. And optical devices will -- has been better than expected. So that is the breakdown of JPY 2 billion.
So what I was thinking is that the semiconductor -- I do understand the contribution is high, but the games you have talked about 20,000 in the beginning of the year. In the North America, I think basically, this momentum is strong. So the revised first half numbers, is it conservative in terms of the MITSUMI business?
Well, in the press half, based on our available information, we are revising that number. So we -- so the second quarter of -- and we told, looking at the total situation, you have maybe a revision.
So lastly, I would like to ask Kainuma-san. So next year, JPY 100 billion, so you have shown us a breakdown, Page 25. One is that for the MITSUMI Business. At the beginning of this year, I think it was JPY 36 billion, but it's been down from that. So first of all, I will -- so maybe this is -- the breakdown itself is not that meaningful. So you said that this is the foundation. So to move to a higher level, is it the case that maybe you shouldn't be too optimistic about these figures if you're going to that direction.
Well, this is basically a rough image because I'm not Godgood. So I can't be very precise. So May 2017, that's 4 years ago. But in terms of the direction that we're looking at, the major path that we want to move forward, I think based on that outlook, I think we are progressing on the right direction. I wanted you to understand that. So as I said, so if you combine electronic devices in MITSUMI, in the third quarter of the March 2021 fiscal year, while this was last February, and it had been 6 months since that, the situation will be changing and the ForEx position would change.
So in that sense, what I'm showing you here is when the external environment is good, to some extent, we think that, overall, we'll be able to achieve these type of numbers. Maybe there will be some differences in each of the items. I think that's the rough image that you should be looking at.
So for 3 months ago -- I'm looking at the material that you released 3 months ago. So it says JPY 36 billion, but here, you're saying JPY 30 billion. So to be able to look at JPY 100 billion, these numbers are not that meaningful?
Yes, that's true. So that is just basically showing you the material of the we shown on the 5th of February. So in terms -- I just want you to understand the overall trend, then there is a hard viability that MITSUMI will be able to get to JPY 36 billion.
Let us move on to the next question. Morgan Stanley, MUFG Securities, Mr. Sato.
This is Sato. I have 2 questions. The first one, about the camera actuators, vis-a-vis the previous year, in a full year basis, I think you had the plan to double the sales, but you have said previously that the camera actuator in the first half -- it's likely to be higher than the forecast. So compared with 3 months ago or 6 months ago, how the situation changed? Could you explain by region?
First of all, North America and the rest of the world, in Q1 and Q2 in North America in the first half, it's better than the expectation. And the production is starting quite smoothly. And I think we can maintain this momentum. And other regions, particularly China, high-end smartphones. We thought that we will be able to grasp some business opportunities. However, it didn't realize. So we had the downside in Q1 and Q2. Adding all those elements up, last year and this year, the final result will be more or less the same. And in the second half, the business opportunities in the markets other than the North America, we would like to make sure that we grasp by business opportunities. So those are the changes for camera actuator.
My second question is, in the first half, the forecast was revised up. And in the second half, you are not revising. So upward revision was made in the first half. And comparing the first half with the second half, is it possible that the second half will become even stronger than the first half? Or in the second half, what kind of risks should we keep in our mind, if you can talk about that, please?
Basically, this is my personal opinion because the company has not revised the numbers, but I do think the second half will be stronger. And the reason why the company decided to maintain the same forecast, there are many things that have been delayed, like many people are saying that automotive manufacturers will increase production in September onwards. And we believe that, and we have no other choices but to believe such statements and follow them. So things are delayed and the seasonality, the Q3 is likely to be the peak.
And Q4 -- during the spread of COVID, Q4 was really bad. But as I said, many things have been delayed, and if those issues are resolved, Q4 is likely to be very strong. That is my personal view.
So if I may supplement about the numbers, take for example, machined components, the revenue for first half was JPY 91 billion and Q1 was JPY 44.1 billion. So doing the calculation, second quarter will be JPY 46.9 billion. And the second half remains the same, so it will be JPY 42 billion each. And considering the current demand, it is unlikely that Q3 will be lower than Q2, rather the COVID-19 situation and the semiconductor situation, taking into account those things, in Q3 and Q4, because things have been pushed back to Q3 and Q4. So there is a sort of discontinuation between the first half numbers and second half numbers.
And first half, JPY 134.7 million and the first quarter of '17 and the Q3, JPY 58 million and the fourth quarter, JPY 50.8 billion. So Q3 and Q4, the numbers are likely to be conservative, so to speak. But overall, this is the trend. So in November, the foreign exchange and recovery in semiconductor production, looking at those factors, I will be able to present to you more accurate forecast. So I would like to minimize my speculation and make an as-accurate-as-possible forecast.
Going to the next question from Mizuho Securities, Goto-san.
Can you hear me?
Yes, please go ahead.
I have 2 questions. One is a technical question. So in the first quarter, so the retrospective cost, and in terms of the recovery of that, so what was the magnitude of that? And when you exclude that, so the first quarter results against your plan, how did that turn out? I would like to get your information about that.
There are 2 components. One is that in the electronic devices, the retrospective cost, we have been able to collect the cost at U-Shin. So there has -- retrospectively, the retirement benefit consolidation has been conducted. And we have been accumulated the lack of the [indiscernible] JPY 400 million. And in total, it's JPY 1 billion. So in that portion, in the first quarter, it is included. Those are the ordinary factors. So if you just adjust that, so that means that you'll be able to get the actual profit level? So about JPY 1 billion plus and JPY 400 million on the minus, so net is the maybe JPY 100 million gain. So I think basically, it's more than your expectations, maybe more than that you have mentioned, electronic devices will have been able to collect a little more than you have mentioned. So maybe net JPY 1 billion or something or so, maybe a little bit more than that. So JPY 100 million, maybe single digit, another half of single digits.
Understood. Next is about U-Shin. So you talked about a major door handle project. We have been able to get the -- achieve a first vendor. So what is the reason behind this? Can you elaborate about that? So is it a flash handle that you'll be able to leverage your strength? Is it kind of keyless? Or is it kind of a type of handle that you have to leverage your synergy? What type of projects are you talking about? And from the customer's point of view, what was the evaluation. Can you talk about that?
So it's difficult to talk specifically about this because we have some constraints. But our management policy, as I have talked to you from -- going to move out from the low-end of the products that we're going to go high end or more than, electrified type of products is going to be our focus. So if you if you can imagine from that, I think you can understand. So as a trend, because automobile, everything will be electrified. So this product will be in line with that type of direction that I have talked about.
So why U-Shin was chosen?
So the former U-Shin would not have been able to get this order because we have been a good track record in the automotive industry, has been appreciated and our quality-improvement initiatives has been evaluated from the customers. And on top of that, our elemental technology has been evaluated. And on top of that, the supply capability, because we have the global supply system, including Asia because the European makers, they tend not to be that strong in Asia. They don't have many sites or factories. But I think various factors has contributed for us getting this project. I think that will be the correct way to look at this.
So you talked about JPY 100 billion for 10 years. So it's for your business, it's...
So it continues to be a single vendor for the [ next ] 10 years, that will be the magnitude. But I think basically, at some time or other, they will switch to a 2-vendor system. But that will be not our call.
Let us move on to the next question. Mr. Akizuki from Nomura Securities.
I hope you can hear me.
Yes.
So it's a rather detailed question, sorry about that. MITSUMI business, so during the calculation, deducting from first half sales, the second half sales will be JPY 882.2 billion and camera actuator and the like and Yasu, what you have acquired the Yasu from OMRON, I think these numbers look rather weak. But would you explain about the background of this? So the profit is not growing that much, and therefore, profit is not expected to grow that much either. So it's different from what I was expecting. So please explain about the background, if you will, please.
MITSUMI, first half revenue JPY 179 billion -- or JPY 179 billion, sorry, my mistake. So the second quarter will be JPY 102.2 billion, but it's still weak. So profit is not going to grow that much. In the first half, JPY 13.5 billion and Q2, JPY 8.4 billion. So it's not going to grow that much. So JPY 3.4 billion Q-on-Q increase. Deep-diving into it, semiconductor will remain solid. And from Q1 and the high profit level is likely to continue. And as we have been talking about, optical devices, Q2 onwards, the new model will have start. It will impact -- of course, each customer has its own situation, and I cannot share with you all the information. But the machined components number is rather conservative.
So semiconductor shortage, is it related to that?
Well, customers are not saying they are having shortage of semiconductors and therefore, I cannot comment on that.
Understood. And a similar question, U-Shin business. Q1, JPY 400 million, this reversal of the retirement benefit provision. So first half operating profit, JPY 1.5 billion, I think. So it is likely to increase dramatically according to your plan. And why is that?
In U-Shin, this year onwards, MITSUMI's automotive product business has been transferred to U-Shin. And this business, in Q1, struggled. So the so-called regional U-Shin, compared with the numbers we explained last year, the numbers for this year seem rather weak. But in Q2 onwards, the numbers are likely to recover, and MITSUMI's OEMs, the situation is different, OEM to OEM. But U-Shin is likely to overcome those issues.
To the extent possible -- so the former MITSUMI's automotive business are being transferred to U-Shin, would you elaborate on that?
It's about a certain customer. From Q1 to Q2, that customer's business is likely to recover significantly. I cannot name that customer. And former MITSUMI's automotive business is -- it's for Tier 1 OEM. So if a customer makes adjustment to production, then we will have a direct impact. So it will have a direct impact on our business. So it's different from other business. And a customer -- some customers have put together a recovery plan. And if it is actualized, I think there will be a double impact.
Going to the next question, SBI Securities, Izumi-san.
This is Izumi speaking. So in terms of the machined components, how we should think about the profitability? So if you look at the first quarter, 24.8%, and the pre-COVID is, March 2020, has been going over that level. So how -- is the margin profit trending? How is the fixed cost trending? What is the reason why you have been able to see this improvement of the operating margin? And for this year's plan, in terms of how the profitability is going to trend, is there any room to further improve the margin?
So in terms of the ball bearings profitability, we do not disclose that. And for the long period of time, we have not disclosed this margin. But if you look at the material, the ball bearings margins is very, very high. And once the volume recovers, then it will be high. But the aircraft margins will not be that high. So if the aircraft business starts to come back, it means that there will be a downward pressure for the margin, that is. However, the ball bearings, we have been investing in the very low-cost areas. And I think the margin is going to be very high. So I think there are a lot of ways to think about this. But you have to go to a new market, buy the land and then train the employees from scratch. Rather than doing so, so in [ Phnom Penh ], for instance, of a plant, where we have a multipurpose plant, and so we have the plant -- or we're already trying to add capacity in the ready established plants. So it means that the margins are going -- becoming higher. And then there was potential to go even higher than now. But please do not focus on that. Because machined components -- in machined components, the aircraft business is going to come back, then that will be putting down pressure. But in any case, overall, the high margin will be maintained.
And my second question is in the U-Shin. So in Europe, you have been engaged in structural reform. So how is the progress? And you talked about, in March 2020, the U-Shin business is going to be $10 billion. You said that maybe that will be a bit tough. So including the structural reform that you are conducting, so this JPY 10 billion for next fiscal year, how should we think about this?
Well, in terms of the actual capability U-Shin, I think that is the starting point that we should look at. From our point of view, from -- if you have [indiscernible], there were negative factors. And then we have reached this current level. For instance for the current the Hiroshima/U-Shin Group, so the European [indiscernible] Group, we have the former U-Shin have put that into their group. And their customers do -- if the bottleneck of the semiconductors is resolved and when they start building up their inventory, then the actual level, maybe about JPY 7 billion, is what we're looking at plus 300 -- restructuring of 300 people. And then we will move away from the low-end products, then maybe this is the is [indiscernible] that we're looking at. So that is the thinking behind this.
So is the restructuring going well?
Well, we are trying to -- first of all, we are focusing on production of these low-end products. So currently, I think things are going as planned. So what we mean is that each automotive manufacturers, will they really recover as they have said, in next fiscal year. If things -- that becomes clear, putting aside whether we'll be able to reach JPY 10 billion, I think we should be able to go back to a rather good level profit.
Next question -- now the scheduled time to finish has been passed. And therefore, next question will be the last one. Mr. Hirata from UBS Securities.
This is Hirata from UBS Securities. May I begin? I have questions. First, electronic devices, Q1 profit, the split, the motor profit was flat. The sales are growing, but profit was flat. Probably it's because of the increase in material prices, the raw material prices. Is it because of the impact of raw material prices? And how do you plan to respond to that in Q2 onwards?
With regards to Q1, the raw material, particularly copper price impacted. So we were impacted by raw material costs. The specific numbers, our motors are small and the copper wire are very fine wires. And compared with our competitors, the usage volume is small, and therefore, impact may be smaller. And if it were not for such an impact, it will be much higher, although we do not disclose actual numbers, but several billions of yen of impact is anticipated. And [ meaning ] that utilization has kept rising and the profit decreased and foreign exchange changed in a favorable direction. And additional raw material cost has been passed on to our customers. In Q3 and Q4, we will see such an impact. And therefore, profitability, although our raw material cost is increasing, this issue is likely to be resolved as time goes by.
We would like to close the Q&A session at this junction, and we would like to close this analyst session. I would like to thank everyone for joining us. Thank you very much.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]