(6464) Stock Price

Tsubaki Nakashima is headquartered in Nara and operates 21 consolidated subsidiaries domestically and internationally. The company operates primarily through two business segments: "Precision Components Business" and "Blower Real Estate Business." Through these segments, the company manufactures and sells products in Japan, the United States, Italy, Poland, Slovakia, the Netherlands, Bosnia and Herzegovina, the United Kingdom, China, Thailand, India, and Taiwan.

The Precision Components Business is the company's primary segment, accounting for approximately 98.9% of sales. This segment manufactures and sells over 20,000 types of high-quality precision balls. These precision balls are critical components of ball bearings and support the quality and reliability of final products such as automobiles and machine tools.

Precision balls include steel balls, ceramic balls, tungsten carbide balls, glass balls, plastic balls, and carbon steel balls, each with distinct characteristics and applications. For example, ceramic balls are lightweight, offer high strength, wear resistance, heat resistance, and corrosion resistance, and are used in spindle motors for machine tools and turbochargers.

The Blower Real Estate Business manufactures and sells medium to large-scale centrifugal blowers. This segment accounts for approximately 1.1% of company sales and provides high-efficiency, low-noise blowers used in steel mills, power plants, and cement plants.

Additionally, Tsubaki Nakashima manufactures and sells non-bearing applications such as ballpoint pen tips and medical-grade plastic balls, serving a wide range of industrial sectors. The Linear Business is classified as a discontinued operation and previously manufactured and sold ball screws primarily used in machine tools.

Tsubaki Nakashima's fundamental strategy is to pursue profitable growth and enhance corporate value. The company prioritizes revenue, EBITDA, and free cash flow while pursuing growth and profitability. Through these efforts, the company aims to achieve sustainable growth and increase shareholder value.

The company has formulated a medium-term management plan for 2025 through 2029 to address intense price competition and macroeconomic fluctuations. As competition from rivals in China and India intensifies, restructuring the cost structure and generating cash are considered critical priorities.

Under the medium-term management plan, the company will strengthen cost competitiveness through a review of its global footprint and productivity improvements, while concentrating investment in growth segments. Additionally, the company will optimize receivables, payables, and inventory to improve cash flow. By 2029, the company targets revenue of 87 billion yen and operating profit of 10 billion yen.