As the time has come, let us start the meeting. Thank you very much for participating in the MinebeaMitsumi's 2023 business results briefing for the second quarter fiscal year ending on March 20, 2023. Let me introduce today's participants. From your right, Representative Director, Chairman, CEO, and COO, Yoshihisa Kainuma. Director, Senior Managing Executive Officer, Katsuhiko Yoshida. Thank you very much. First of all, Yoshida will explain about our financial results, and after that, Kainuma will explain about the business update and management strategy. After that, we will have a Q&A session. Today, we are planning to end this briefing by 7 P.M. In terms of the various financial statements, we have the financial data and the brief report that is posted on our website, so please refer to those.
On the screen that you are viewing, there is a link to a questionnaire. This will be a very precious feedback to our IR activity. We are looking forward to your response. For today's briefing, including the Q&A session, it will be recorded so that it can be viewed on the website. Please understand. Mr. Yoshida, please. My name is Yoshida. Today, I would like to explain the consolidated financial results for the second quarter of the fiscal year ending March 31, 2023. Consolidated net sales for the second quarter of the fiscal year ending March 31, 2023 was up 17% year-on-year and up 31.5% quarter-on-quarter to total JPY 330.021 billion.
Operating income was up 5.6% year-on-year and up 85.2% quarter-on-quarter to a total of JPY 26.394 billion. Profit for the period attributable to owners of the parent was down 1.6% year-on-year and up 86.9% quarter-on-quarter to total JPY 20.06 billion. We estimate that. In terms of the sales has been a record high as the first quarter. In terms of operating income, it was at a record high as well. We estimate that the FX translations had a quarter-on-quarter impact of JPY +19.3 billion and year-over-year impact of JPY 45.8 billion on net sales.
For operating profit, quarter-on-quarter impact was JPY 3.2 billion, while year-on-year impact was JPY 6.8 billion. Please go to the next slide. This is a summary result for the first half. The net sales was a record high for the first half as well. Moving on to the next slide. This is the quarterly trend in net sales, operating income, and operating margin. The operating margin for the second quarter was 8%. It was down 0.9 percentage points year on year and up 2.3 percentage points quarter on quarter. Since the company had forward foreign exchange contracts, there was a negative impact on operating income due to the impact of the currency fluctuations that was higher than expected. Please see the company's estimate of the foreign exchange impact in the boxes shown on the slide.
We estimate that the second quarter's OP, operating profit, there was a positive impact of JPY 8.4 billion from foreign exchange and negative impact of JPY 3 billion for forward exchange contracts compared to the initial forecast. Therefore, we estimate that the operating income would have been JPY 29.4 billion if there had been no effect of forward exchange contracts. Moving on to the next slide. This slide shows the difference between the forecast as of August and actual results for net sales and operating income by business segment for the second quarter. Net sales of the machine components were higher than projected, mainly thanks to the aircraft business. The electronic devices and components fell below the forecast, mainly due to a slowdown in HDD motor sales. The Mitsumi business enjoyed higher than projected sales, mainly for optical devices and mechanical components.
The U-Shin business was slightly lower than expected. Operating income for the machine components was almost on par with the forecast. The electronic device and components business experienced lower than expected operating income due to the decline in sales. The Mitsumi business saw higher than expected operating income, thanks to an increase in sales. The U-Shin business was more or less in line with the forecast. Next slide, please. Now let's take a look at the results by segment, starting with the machine components. On the left is a graph indicating quarterly net sales trend. On the right is a graph with a bar chart of quarterly operating income trends, along with a line chart for operating margins. Second quarter net sales increased 10.6 quarter-on-quarter to a total of JPY 51.3 billion.
Sales of ball bearings increased 15.2% quarter-on-quarter to total JPY 39.2 billion. The monthly external shipment volume was up 13.1% quarter-on-quarter for an average of 251 million units per month. The monthly external shipment volume hit record high due to the robust sales for automotive and data center. Sales of rod ends and fasteners totaling JPY 8.2 billion were up 7.4% over the previous quarter. In the aircraft business, there were signs of sales recovery, especially in the European market. Sales of pivot assemblies decreased 17.4% quarter-on-quarter to total JPY 3.9 billion. The sales of machine components hit record high. Operating income for the quarter totaled JPY 12.5 billion, and the operating margin was 24.4%.
On a quarter-on-quarter basis, operating income increased by 22.8%, while the operating margin improved 2.4 percentage points. Next slide, please. Next is the electronic devices and components segment. Net sales increased 20.3% quarter-on-quarter to total JPY 98 billion. Looking at the results by product, sales of motors increased 13.8% quarter-on-quarter, reaching JPY 71.4 billion. Overall performance remained firm despite a slowdown in the sales in the HDD market. Sales of electronic devices were up 15.1% from the previous quarter to total JPY 15.5 billion. This is due to the sales increase of the LED backlights. Sales of sensing devices totaling JPY 10.1 billion were up 22.9% from the previous quarter.
Operating income was JPY 3.3 billion, and operating margin was 3.3%. On a quarter-on-quarter basis, operating income increased 16.6x, while the operating margin increased 3.1 percentage points. We estimate that there was a negative impact of JPY 1.8 billion from the foreign exchange as a special factor. Please go to the next slide. Let's look at the quarterly trend of performance for the Mitsumi business segment. The results for Honda Tsushin Kogyo, which became a consolidated subsidiary on September 16, are reflected in the results from the second quarter. Net sales increased 58.2% quarter-on-quarter to total JPY 137.4 billion. As seasonal demand picked up, so did sales of optical devices and mechanical components, while sales of semiconductors also remained upbeat.
Operating income totaled JPY 15.7 billion, while the operating margin was 11.4%. Operating income increased 71.7%, and the operating margin rose 0.9 percentage points quarter-on-quarter. This is mainly due to an increase in sales with seasonality. Moving on to the next slide. Finally, let's look at the quarterly trend of U-Shin business segment. Net sales increased 19.1% quarter-on-quarter to JPY 42.9 billion. This is due to the recovery trend in automakers production, although the situation varied from region to region and customer to customer. While our operating income totaled JPY 0.6 billion and the OP margin was 1.5%. Next slide, please.
This bar graph here shows the trends in quarterly profits attributable to the owners of the parent, while the line graph chart the changes in the profit for the period per share. The profit for the period was JPY 20.1 billion, and the earnings per share was JPY 48.6. Next slide, please. Next, we have the quarterly inventory trend. At the end of the second quarter, inventory totaled JPY 272.8 billion, which is JPY 8.4 billion more than what it was three months ago. This is mainly due to the strategic buildup of inventories needed to meet the currently expected increase in sales as well as foreign currency effects. Next slide, please.
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 the line chart indicating free cash flow. At the end of the second quarter, net interest-bearing debt totaling JPY 191.4 billion was up JPY 104.5 billion from the end of the previous fiscal year. This is mainly due to the expenditure for the purchase of the new Tokyo headquarters building, as well as the increase in inventories. The forecast for the net interest-bearing debt at the end of the fiscal year ending March 2023 expected to increase from the end of the previous fiscal year.
However, excluding the expenditures for M&A announced recently, the net interest-bearing debt is expected to be virtually the same level as of the end of the previous fiscal year. Next slide, please. We made an upward revision to the full year forecast for the fiscal year ending March 2023, which was announced in August. The net sales and operating income are forecasted to be JPY 1,250 billion and JPY 115 billion respectively. The estimated sales for the Mitsumi business, machine components, and the U-Shin business were revised up. On the other hand, the sales for the electronic devices and components business was revised down. Overall, we have revised up the forecast of our sales.
The estimated operating income was revised up as a gain on the sales of Tokyo headquarters, a building of JPY 13 billion, was added. However, while taking into account the impact of revised Forex assumptions, we have maintained the forecast of operating income excluding a gain on a sale, because of the uncertainties such as the global economic slowdown. The exchange rate assumption is JPY 140 per US dollar. This slide shows the forecast by business segment. Again, on sale of Tokyo headquarters, it is included in the adjustment for the second half. This concludes my presentation. Next, President Kainuma, please.
From my side, I would like to talk about the business update and the management strategy. In this slide, this is an overview. The first quarter, we had the Shanghai lockdown, and we were impacted largely from this. Basically, for the first half, we made this estimate in the end of April, and the Shanghai lockdown happened. We thought that the Shanghai lockdown continue to the middle of May, but it continued fully for the month of May. Against this backdrop, in terms of the Forex, we had a tailwind, and that is true. Basically, for the first half, we have been able to achieve our plan. The background of this is that the data center bearings didn't go down a lot, and the automotive business was very robust.
For the bearings for the automotive business, that is. In terms of the numbers of the volume of automobiles is going down, but as I always say, the per auto number of bearings is increasing. September, in terms of the sales volume for automotive, it was a new record. However, but if you look at the recent situation, most recent situation from October, in the. There has been adjustment in terms of the ball bearings, applications, automotive, data centers, so there is some adjustment happening in the market. Compared to what we have been expecting, maybe the growth is not as strong as we have expected. This is the thing I think I should be mentioning at the beginning.
However, in our case, and it is always the case, if even one segment isn't performing well, some other segment will support that. The aircraft components business seems to be doing well, doing that role for a long after a long period of time. Yes, there is weakness, again, but with this JPY 1 billion profit in September, they have been able to generate that much of profit, so that'd be JPY 12 billion for a year if you calculate. I think on a profit basis, they had gone back to the pre-COVID levels in terms of profit. I will go into more details by each segment going forward. In terms of the currency outlook, the second quarter operating profit JPY 29.4 billion.
If we have not hedged the FX at JPY 29.4 billion, I do not think that this was a kind of a loss for us. As a responsible of the management of this company, I have gone through a situation that the yen has depreciated and then swung back to a stronger position. The plan that we have compiled, we were not able to achieve that because of this fluctuation of the foreign currency. That was my bitter experience. This, I took the decision so that we should hedge. It is true if we had full exposure, JPY 29.4 billion could have been incorporated. The second quarter was ended on this JPY 26.4 billion .
Now some people would say that you lost JPY 3 billion, but depending on the aspect, how you see the situation, this JPY 3 billion, we hedged JPY 3 billion, the profit has gone down, so it has not a loss in that sense. As I said, people going to say, the Tokyo headquarters building. Because we are going to, we all have adopt of the IFRS, and this will be included in the operating income. There is some differences in terms of the allocation of these items, but basically, we want to achieve our targets. Next slide, please. Actually, this is the most happy news that I want to mention that I think is very happy for me.
I have not introduced this before, but Honda Tsushin Kogyo, in terms of the integration of the management, this is what I'm looking forward to the most. The subsidiary, there was HKT Engineering, there was a subsidiary. They had 280 engineers. They were working. They, for the major electronics manufacturers, were offering services. If you see this diagram, I have said that again and again, our direction is for the electromechanical solutions. At last, it took 14 years. It has been 14 years since I took the role of the CEO. For the first time in 14 years, we have been able to completely finish this foundation.
For the automotive components, this kind of fail-safe function, when there is a malfunction, how is this going to be controlled? Controlled by a software is going to be asked for going forward. As a components manufacturer, from 2025 and onwards, the companies who can offer this type of software will be able to survive. That's my thought. I think we just made it, so to speak. From my point of view, in terms of the, we have been able to get a very sound foundation for the driver of the organic growth, and I'm very confident of that. We have established a CrossTech business headquarters. Meaning that if we have this huge volume Elemental Technologies, then how are we going to utilize that?
This silos that we had, this vertical business model, how are we going to have a cross-functional aspect as well and develop new products? In that sense, that is the reason why we have set up this business headquarters. At the very center of this, we have the software engineers. We have Minebea Software Solutions. We have changed the name. Minebea Software Solutions will be at the center of the CrossTech business and headquarters. They will be building a backup for the various softwares, and they'll be supporting it.
We have the support, means that, this will leverage the true strength organically, meaning that, we will be able to build a portfolio that does not exist anywhere around the world. Going to the next slide. I think I have been showing you, this is the Eight Spears. Well, actually, it looks like nine pencils actually. But we have, I have included software in here. The GDP, global GDP growth, and I said that we're going to grow with the growth of the global GDP, and through the M&A, we will move forward. Actually, we have three wheels. That's why we have components that to solve social issues or products that to solve social issues. This will be one source of our growth.
The components that are shown here will, by integrating organic growth, will drive our growth. This will be a parts offering, components offered that matches the needs of the era. I think we have been able to have a good portfolio for our company. Next slide, please. For the Tokyo headquarters, selling this building, we're going to move to Shiodome. The JPY 13 billion of gains are going to come from the sales, and that is the reason why we have the upward revision. From my point of view, the yen has appreciated to this level. If excluding the Forex impact, JPY 100 billion, I have been saying this as a target. In terms of net sales, it has exceeded JPY 1 trillion.
I think it will exceed JPY 1 trillion this year. Operating income of JPY 100 billion. Last fiscal year it was JPY 92 billion. We ended at around JPY 92 billion. Exceeding operating income of one hundred billion will be our target. Of course, there will be some differences in terms of the elements because compared to what we have expected in April. The aircraft business is going to recover. Automotive production, well, there are still bottlenecks out there, but for instance, for semiconductors. However, that said, compared to previous situation, the disruption of the supply chains has been recovering and the automotive production, I think will increase a bit more. Games seems to be doing well.
If the semiconductor issue is resolved, our backlight products for the low-end smartphones, the production will increase, so our backlights will be selling more. In the fourth quarter, the recovery of U-Shin. There is a JPY 2 billion of profit is planned for U-Shin. I think in the code name, we call this Project Horizon. In Europe, we eliminating losses. That is the project. Going into the black, we asked 300 people to leave the company, and we closed down the Spain operation. In Germany, the production has been shrunk or in some cases shut down. We have been transferring production to low-cost countries. That is the project that has been progressing very steadily. Yeah.
Honda Lock. In addition, Honda Lock. If possible, by the end of this calendar year or by the end of January or December or latest January, we would like to clear this and the antitrust issue can be cleared in various countries. A JPY 2 billion revenue increase can be expected. Access products. Even if the auto production doesn't reach the full capacity, JPY 4 billion operating profit or JPY 4 billion-JPY 5 billion operating profit can be realized. Also, this time around, what is not included in the forecast are the former Sumiko Tech, which is now Minebea Connect, new trade name. As of November 1st, we have completed the acquisition procedures.
This one, the negative goodwill of JPY 1.8 billion exists and JPY 1.8 billion of JPY 115 billion is not so large, and therefore it's not included. Honda Lock integration, when integration is completed, it can be a sizable negative goodwill.
Based on IFRS, operating profit will reach a very high level. At this point onward, I would like to talk about each product, like bearing. Since Shanghai lockdown, it's been growing rapidly, but Q3 was leveled off on the plateau. This is, in a way, supply chain and the semiconductor issues. Each company has held safety stocks, so maybe it's a backlash of that. But as I always tell you, bearings are almost entirely done. This size of bearing will grow for sure going forward. Now Airbus, mainly Airbus single aisle aircrafts are recovering. US suppliers may take a little longer to recover, but these things are growing. These are the businesses that can offset the decline in the future.
Healthcare products, because of the COVID, the revenue dropped significantly. However, now, such difficulty has been overcome, and, healthcare or medical equipment, revenue is growing. JPY 1 billion operating profit recorded in September is one evidence of that. From push to pull, the shifting, and during the impact of the COVID-19, what should be carried out under the impact of the COVID-19. No delivery dates have been missed, which I think is great. Bearings, as I said, we are making adjustments, but the FX, the yen is weakening more than we anticipated. On the full year basis, JPY 50 billion can be achieved. I think it's possible for machined components. Next page, please. The motors. CAGR is 14%.
However, hard disk drive, as you may be aware, the large scale adjustment or correction is going forward. In Q4, it should hit the bottom. Digitalization has not stopped, but rather it will be progressing more and more going forward. We are not concerned because we don't handle many low-end products, and high-end HDD will certainly recover. In terms of the precision or, the motors are deteriorating. We hedged a Forex risk using the motors, and we were not able to enjoy the entire profit. However, there are no major problems. Next page, please. Mitsumi business is now shining finally. I think it's very fortunate. Inclusive of Honda Tsushin, JPY 570 billion revenue may be possible.
Operating profit of JPY 50 billion or more can be realized, and it could surpass machined components business. It's now becoming possible. In 2017, we integrated Mitsumi. The company was making JPY 5 billion losses. In only 5 years, the operating profit has become bigger than JPY 50 billion. The employees are working extremely hard. The semiconductor CAGR is 14.8%. Three spheres, Mitsumi, semiconductor, OIS, and games, all of them are doing extremely well. We want to identify the fourth pillar, which I think will be connectors. We would like to exert even more efforts into that. Analog semiconductors is the next topic I would like to touch upon briefly.
Sell-side and buy-side analysts are asking me about analog semiconductors, whether it will be all right or not. It is true that the orders are declining. I will show you that using the next slide about the orders for this year, taking into account the Forex impact. I think we have sufficient orders. On the left-hand side of this page, according to this data, the overall semiconductor business has been revised down. However, analog semiconductors have been revised upwardly. Analog, there is a pretty big demand for analog semiconductors and machined components. The next aspheres following that would be analog semiconductors.
The further expansion we are considering right now, and by the fourth quarter, I would like to share with you more specific plans, so please look forward to that. This is only for your information. Analog semiconductors characteristics are, as you can see, when it declines, it doesn't stay long at the bottom, like Lehman crisis, well, the letters are difficult to see, but the US-China trade friction, usually two or three months. The analog semiconductors order quickly recover. That is one of the characteristics. I think in the near future, it will find a way out of the trough. There are the positive assumptions and forecasts, and I think things will be all right. Next page, please. The optical devices.
As the semiconductors issues are solved, the low-end products will go up and the backlight-related. It's different from optical devices. Honda Tsushin, as I said, as of November 1st, SUMIKO TEC, now Minebea Connect, and the morale of the three companies are very high, and we can expect step change. CAGR 6.2%, and Honda Tsushin and the Minebea Connect, they are very swift sampling activities, and sales people are assigned globally and low-cost production. MinebeaMitsumi is good at the low-cost production, and these companies are working together can create synergies. Automotive, industrial machines, and communication, those will be the near-term targets. The next diagram is only one example. For example, the automobile cameras, Honda Tsushin is very good at this.
Every day, our connectors, the Minebea Connect. This is the strength of Minebea Connect. In other words, a waterproof technology, which is highly complicated technology, is required, and the Minebea Connect is very good at that. The camera ECU and the connector, multipurpose or general purpose connector, handled by MinebeaMitsumi. The various parts and components can be supplied at the same time, from camera, ECU, and the connector, and the harness, in the total solution package. All these things can be supplied. Camera is used to view things and also the sensing. The ECU for analysis, the signals should not be delayed. Without the deterioration, it has to be transmitted. The high-speed transmission can be realized because the three companies are working together.
With these three unique connectors, we want to generate high margins. Going to using, also for September, the JPY 660 million of operating profit, they're able to generate that much. From my point of view, I'm really happy about this. I don't know whether we can multiply that by twelve to make it to a year. In terms of the automotive semiconductor business, there's still issues. I think all of you are well aware of that. That said, the production recovers, the yen is weak, and then we'll be able to get this level of profit. With Honda Lock, the fourth quarter, I think the profit will be over JPY 4 billion. Something that had expected to do well can be a backup.
That is the strength of MinebeaMitsumi. This means that we have a very robust and resilient position or stance towards risk. I hope that you understand that as for our company. In the next slide, in each areas, how we are becoming number one by utilizing our integration power. For locks, for key sets, for instance, we are number one, actually. For the other areas where the products are electrified, we are able to produce it in low-cost countries, and that is our strength. At the same time, from the connectors, the antennas, and analog semiconductors, they're going to be included in door latch handles.
The company that are able to produce these type of products, now we are going to aim to become a company to produce these type of products and get a number one share. The overall motivation is very high within the company. It's a little, a bit early, but just to give you an image of next fiscal year. Next fiscal year, what kind of economic condition is going to be? I don't know how the yen is going to behave, but digitalization, whether it be automobiles, that will happen, and as I mentioned, data centers. There's no reason to see a shrink in the market. For the bearings, we want to increase the capacity. Aircraft components, for next fiscal year, the US players will recover.
For motors, for automotive, new mass-produced products is going to be launched. We will be focusing on that. For analog semiconductors, so it takes a triple IGBT. New initiatives by the end of this fiscal year will be introduced to you. OIS is going to stay strong. Game-related products expected to remain steady. Next fiscal year, in terms of extraordinary gains from the J-GAAP business, because we're not going to sell buildings, it won't show up. For the organic growth, we want to grow organically for next fiscal year. Next slide, please. This is the progress on the M&As, so please take a look at this afterwards. Going to the next slide. The green bonds, we are going to issue green bonds.
As I have been saying, the super bearing, CapEx for super bearings, and what we are focusing on is photovoltaic power generation. We will have to utilize solar power or else we have to utilize that, or else the sudden increase of energy costs, it will be very difficult to respond to that. In the Philippines, Philippine plant, this is in a area that is difficult to build a factory. We have been introducing solar-powered generation, we would like to take various initiatives. These types of facilities, to be able to build these type of facilities, the bonds are issued for that purpose. If we conduct a share buyback, it means that...
Because this will be considered insider information about the issuance of the green bonds, we won't be conducting share buybacks for some period, but this is what we want to do. Dividend hike, we are planning, the JPY 40 is the target for this year. I don't know how things will have turned in the second half. Therefore, as usual, we are showing the first half number, JPY 2 dividend hike and the JPY 4 for full year. This is the integrated report. This concludes my presentation. Thank you for listening. Let us move on to the Q&A session. We would like to limit the analysts and the institutional investors to ask the questions who have registered in advance.
Please push the asterisk plus one if you want to ask a question. If you want to cancel it, please press the asterisk plus two. When your name is called, please ask a question and please ask one question at a time. We have received the first question from Mr. Takayama of Goldman Sachs. Please begin. Thank you. Can you hear me? Yes, I can. Thank you. I have three questions. First of all, the Forex. In Q2, Mr. Kainuma, you said that you hedged the foreign currency and how it affected each segment. In order to realize the second half target, do you plan to enjoy the effect of the weak yen?
I think there are other approaches, but what is your plan? From an operational point of view, it wasn't very clear, so that is my first question. I, Yoshida, I would like to explain. First, the assumption. Let me confirm with you the FX assumption. The floor is JPY 115 to a dollar. Dollar baht, which is even more important, is 33.05.
and Baht 35.7. As I explained to you earlier, the impact of forex, if it were not for the impact of the forex, the JPY 8.4 billion from forward, the booking of the forex, the JPY 3 billion , and in total JPY 5.4 billion was the impact of the forex in the second quarter. In Q1 the forex was not at this level, but 124.44 and 33.82 respectively. Now the rates are a little bit more favorable. Forex forward reservation, there are two reservations we made.
One is for dollar-yen, and the other is dollar-baht. Dollar-yen, there is an impact, like, a part of semiconductors or aircraft related. Hedge accounting is applied, and therefore, the forex foreign currency rate will be applied directly on the accounting. These products, the revenue are growing, and therefore it's not so noticeable for dollar-yen, but for dollar-baht in Thailand, because we produce a high number of motors in Thailand. Out of JPY 3 billion, JPY 1.8 billion comes from the motor business. In the handout for this session, page six, JPY 26.4 billion was the result. The impact of JPY 8.4 billion was a positive impact, and the JPY 3 billion of the impact of the forward reservation.
Taking into account this JPY 3 billion, it's JPY 29.4 billion. The main part is the motors. On page nine, the operating profit JPY 3.3 billion, of which the reservation is included. If it were not for this, it would be JPY 5.1 billion. The motors are the ones that were most significantly impacted. The FX expected rate is as shown on page 15, JPY 140 . Versus this rate, the yen is weakening even further. More or less, the realistic figure is considered. Other than the motors, I think this will have an impact.
Recently, versus the assumption, the bearings for automobiles are not growing as much as we expected, and the adjustment for that in net would be excluding the JPY 13 billion gain from the sale of the headquarters, would be about JPY 2 billion. In other words, about the same. Page sixteen, inclusive of all that, the profit composition, machined components, JPY 51 billion, so a slight adjustment that we made. Electronic devices and components, JPY 12 billion, so it went down. The Mitsumi business is doing quite well, so the composition changed slightly. That is the breakdown of the numbers.
For confirmation, if that is the case, because of this forward reservation of the currency conducted in Q2, that you are not able to enjoy the positive impacts of this forex change. Is it going to be realized in the second half, or do you continue to reserve the currency? As Mr. Kainuma explained, this is like an insurance. Is there going to be any changes in the approaches quarter-over-quarter? In the second half, yes, we did reserve the currency, so the situation would be the same. Inclusive of that, we would be adjusting or after the adjustment, the numbers I have just shared with you, the result.
If there is a negative impact of this forex reservation, then it'll be realized. Also, the semiconductor slide I received. In the next fiscal year, as page 24 shows, the revenue is likely to increase next year. On the other hand, at 26, the orders and backlogs are declining. Are you expecting that these will recover pretty soon? Is that the assumption behind your forecast for the next year? Are you expecting that there will be some signs of the recovery? Or do you think that risks will persist into the next year? This is Kainuma.
Basically, analog semiconductors, the demands or the needs will be expanding as shown on page nine or not nine. Which page was it? Analog semiconductors, page 25. If you could, turn to page 25. Analog semiconductors has been revised up, and the IGBT and various other areas, so it's quite different from other kinds of semiconductors, and that is one driver for us. Having said that, however, Shiga Plant, Yasu Plant are starting shipments, and therefore, the numbers will be increasing, and the machines will be installed, and therefore, the numbers will keep growing. I see. I think there was a cycle chart as a reference material, and that showed the situation of the industry. Do you think the jobs are increasing for the next year, including the Shiga Plant?
Yes, that is right. You are confident about that, as a result of the bottom-up analysis? Yes. Lastly, Mr. Kainuma, you emphasized about this acquisition and software solutions. Software engineers, what can be the biggest impact? Is it going to be access products? What leads to the revenue and profit? What kinds of products do you have in your mind, if you will, please? Thus far, motors. Like the motors, the customers requested us quite a few times to dispatch our engineers to them because auto manufacturers have the shortage of engineers, an ECU unit, the simple ones, not the main unit.
Now, we are confident that we can handle them ourselves, and therefore, our presence in the auto industry is going to enlarge. That is why I said that this is going to be a driver. I see. Automobile, automotive industry. Understood. Thank you. Let's go to the next question. Morgan Stanley MUFG Securities, Sato-san. Please go ahead.
I'm Sato from Morgan Stanley MUFG Securities. Thank you very much for the presentation today. I have three questions. First of all, Mitsumi. For the first half to the second half, your forecast is the top line sales and operating profit sales, camera actuators, games, connectors, these, and games. What is the outlook for these main products? In terms of first half, second half, what is the outlook? The two companies that you have acquired, what was the impact to this year's performance? First, let me ask about that.
Because we have to be careful about the customers, so it's difficult for us to answer you. But in terms of Mitsumi's second half sales, JPY 178 billion, so JPY 208.8 billion. JPY 51 billion for the full year, that's the outcome. In terms of operating profit, third quarter, JPY 17 billion, the fourth quarter, JPY 10.2 billion. 27.2 billion, the full year, JPY 52 billion for the full year. You talked about the four areas of business of Mitsumi. For camera actuators, the production peak for this year is going to be in the third quarter. Right now
The sales, production, delivery, or shipment peak is happening right now, and that will drive the performance of Mitsumi. That's one. In terms of games, it's very difficult to answer the question, but the sales is very strong. The distribution inventory isn't that high. The third quarter, the production is going to be driven upwards. That is the assumption that we are taking. On the other hand, for semiconductors. Currently, they have a high level of order backlog. In terms of the shipment, that is going very strongly and is still in a good position. In terms of our guidance, we are taking a conservative view. First half, second half, the second half is going to go down. More or less, that is our assumption.
That is inclusive in our outlook. We talked about the kind of fluctuation of the order backlog, meaning that towards the next fiscal year, I think basically we will have to be prepared to increase output. In terms of the connector business, in terms of the Honda Tsushin business, in this September, mid-September, they have been consolidated. In second half, they'll be contributing. In terms of the profit, there is a disclosed number of Honda Tsushin, and we think that the profit in line with that published number is going to be contributed. Including second half and full year, about, well, JPY 1 billion, a little less than JPY 1 billion in profit contribution is coming from Honda Tsushin. That is our outlook.
The other company, former SUMIKO TEC, within, they are not affected in their guidance, so we will look into their situation and then decide what type of contribution that they're going to have. Thank you. If that is the case, from the third quarter to the fourth quarter, sales decline will be the camera actuators. Will that be the camera actuators? Games, the fourth quarter will not be as high as the third quarter. There is the seasonality. That will be the two major areas. Thank you. The second question is about the electronic components business. You have made a revision of the outlook, so the electronic, it seems that in terms of the electronic devices and components, it is going to go down.
Is it only due to the HDD motors next year? Maybe the HDD sales is going to improve. Then you said that the automotive business is going to recover. In terms of the backlight, what is the situation towards the next fiscal year? What is your outlook? That is my second question. In terms of the type of motors, we have been not explaining about specific motors. In terms of sales is decelerating. JPY 275.5 billion is the number with the motors. Initially it was JPY 300 billion outlook, so it has been lower than that. Due to COVID, there has been a high lockdown. For April, for some of the motor business, the startup has been not smooth.
Currently, basically the situation has become to more or less normal. In terms of the utilization, basically it's 100% full utilization. The non-HDD motors, and there's no major concern. Our major customer, HDD, major HDD makers, in terms of sales and production, there are differences company by company. The adjustment is this year, maybe the adjustment will show up more prominently for this fiscal year. If you look at the next fiscal year, the HDD market, in terms of the mass capacity, which basically that's for the data centers. The data center is not dropping, it's the legacy type. For the PCs, for instance, that is declining.
For in terms of the structural issue, for instance, in the investment in China is softening, for instance. Maybe there's some structural issues surrounding the data centers. For the data centers, we think a bit they will overcome it and then continue to grow. That is our assumption. The next fiscal year after the inventory adjustment ends, and by that time, the mass capacity domain, we think we'll be able to see a good business. Now we don't think that it will be a major issue for that type of business. Thank you. Let me ask you about the backlight. I think you already know, but North America client production is more or less focused on the flagship model. Currently, the low-end models is not...
No inventory for the low-end models. Basically people won't be able to buy those low-end models, and the production is basically very, very slow. There's I don't know the reason behind this. Maybe it's the semiconductors. Nobody knows. If there is inventory, then they will be able to sell. I think that situation is unchanged. I think basically that will be more or less the floor for this business. For the next year onwards, again, there is a limitation in terms of what I can say. For the smartphone-related business and for the LCD business, we already have secured the business. On top of that, we have the automotive business.
In terms of the LCD backlight for the automotive business, compared to OLED, LCDs is being appreciated again. We said that it was going to grow, but it didn't, but I think it's going to improve going forward. If this year is the floor, and the next year it means that, I think basically we'll be, we see a increase compared to this year. But when issuing this guidance, I think basically you'll be looking at the cyclicality of the business. I think basically we'll be very careful in terms of how we show our guidance for this business. Thank you. October, ball bearings. Can you give me the numbers from the outlook for October to December?
For the January to March, is it going to recover? Can you tell me about that? For July to September, external sales in millions, 245, 244, 264. This is millions. Internal sales, 52, 47. That's July to September. From October onwards, October 239, November 249, December 255. External sales on average, so JPY 247 million-JPY 248 million. Compared to the second quarter, maybe it'll be going down a bit. Internal sales, because they have, HDD market is going to decline, and that will be happening in this quarter, 38, 41, 37 in millions for internal sales. As Mr. Kainuma has explained, the automotive business is not declining. We thought it hasn't grown as much as we have expected.
In terms of the data center business, it hasn't grown as much as we have expected. For the home appliances, for the other applications, it's still at a low level. If you look at by quarter, you can see that compared to the previous quarter, October to December quarter seems to have gone down. Understood. Thank you very much. I repeat, if you want to ask a question, please, press asterisk plus one. In order to cancel it, please press asterisk plus two. I repeat, if you have any questions, please press asterisk plus one. In order to cancel it, please press asterisk plus two.
Let us move on to the next question. Mr. Goto from Mizuho Securities, please begin. Can you hear me? Yes, I can. Thank you. My question will be a follow-up question. Analog semiconductors from the second half to next fiscal year, your expectations, I would like to understand. On page 26, the orders and backlog, looking at this, at the risk of declining, I feel, looking at this graph. I think you said that things will be all right. Is there any reason that you can say that things will be all right? The second half, maybe you can hold up because of the backlog, but beyond that, how much confirmation do you have?
I have no concerns about the medium-term direction, but because of the cyclical things, the share price can move up or down. Looking at this, I think you can understand that after hitting the bottom, it recovers very quickly, and that is one of the characteristics. That is the message I want to convey using this slide. As Yoshida said, within this year, we have already received quite big orders and trend of analog semiconductors. Based upon that, analog semiconductors will not decline. As I said previously, the machines that will be installed on IGBT, et cetera, we have a production plan in place, and we have received orders. When we produce the products, revenue will increase. It's a hot market, so to speak.
Looking at those elements, we think that analog semiconductors will keep growing next year. Thank you. Backlog consumption, you'll be fine this fiscal year in the second half, but what about the next beyond that point? It'll be fine until the end of this year. If the orders recover by then, no concerns. Is that what you are saying? Yes, that is what I think. Thank you. There's another thing, and that is about the motors, and decline in hard disk drive is quite significant.
Overall, the revenue, you have maintained a certain size of a revenue, which suggests that there were increases in other areas, centering around automotive, the new projects start, whether there are any changes from the previous assumptions, please explain. Things remain more or less the same. For example, fan motors have exceeded 10 million units, and that is going to continue. Other motors for automotive are starting in a very good shape. The HDDs, we don't handle low-end products, very little, and so no impact from that. Looking back, in retrospect, the shortage of semiconductors and supply chain disruptions, when that happened, so-called the BCP inventories, the customers built up. Maybe there is a reaction of that we are seeing right now.
By the end of calendar year, this trend is likely to continue. Next year onwards, it's going to recover gradually because we handle only the high-end products, so I'm pretty sure about that. Thank you. Let's go to the next question from UBS Securities, Hirata-san, please.
This is Hirata from UBS Securities. Can you hear me?
Yes, I can hear.
Thank you. I have one question about the semiconductors and about the machine components, I have another question. First of all, for the semiconductors, if you go to page 26, is this your backlog for your business, or is it for the whole industry? First of all, can you speak about that? With the orders coming down, in terms of price and the utilization rate, what is your outlook?
This is for us. I think basically it's just ABLIC business.
Actual track record. That is my understanding. I don't know whether Mitsumi Electric is behaving, but in any case, this is the track record of our company. How to interpret this, if it goes up and it goes down, but then the recovery is very quick. This is a repetition of that wave. If you look at this, you can see that maybe this bottom is so steep, it may seem so, but it has been this business has been repeating this fluctuation. For the analog semiconductors, I want to say that please don't worry too much. I think that's the way to interpret this chart. I talked about price. As we have been explaining from before, our company for the semiconductor market, we are focusing on the niche market.
There is some semiconductors that the price has declined due to the soft demand supply situation. I think basically you are aware of that. If that is the case for our price, for our semiconductors, we do not do business with that product. The average price is still at a high level, and we basically have not reduced the prices. In terms of the OIS, there is some price concerns, but the market share is very high. In terms of price, we have not reduced the prices, so we have been able to firmly control the price.
In terms of the utilization, basically it's under full capacity, but there's some overhauling that we want to do for some of the facilities because we have been operating under full capacity for a long period of time. Including that perspective, in some areas we are, by our own intention, reducing the utilization. For instance, the IGBT area, where the customer's requirement is very strong for those type of products, so basically the utilization rate hasn't changed. There's no situation that the utilization has gone down substantially at this point. Understood. Thank you. My second question about the machine components. You talked about the volume of bearings, for the second quarter. The third quarter is going to go down. The internal sales has gone down.
For the machine components, second half operating profit outlook is, compared to the second quarter, seems to be quite high. So how should I think about that? For the production is going to be maintained or for the, for instance, is it because of the aircraft business recovery or is it coming from the foreign exchange? So the second half, first half, the second half improvement of the machine components business, can you refer to the reason behind this? In terms of the utilization rate, we are discussing what to do about it right now. Basically, we are going to maintain full capacity. As I said, basically this is what we have always been saying, because we have safety inventories not been acquired.
For the second quarter, the production has been exceeding the sales. The inventory level, considering. We don't know what the external environment is going to be in the next fiscal year, for instance, for the automotive, if there's an excellent model coming into the automobiles, the new content is going to be used. If you consider that, the demand is going to grow. I think basically building up the appropriate level of inventories is very important. That's our thoughts about utilization. Another point is that, your question about Forex, as you have pointed out. We sell in dollars, and for instance, now we produce in Thai, in bahts.
Like, the impact of hedging won't come here unlike motors, so we'll be able to have a benefit from the Forex. The third point is true for the aircraft business, as you have pointed out. One billion profit for the single year is what Kainuma has said about the aircraft business. Of course, this is more or less lifted up from the weaker yen. It is, it does include that. But that said, the aircraft business is we have very strong inquiries coming specifically from the European aircraft maker. Their production output is rising. The aircraft-related business, so within ball bearing, NHBB's bearings is included. That business is increasing as well.
JPY 51 billion numbers, I think that is an achievable target for us if you consider the situation. Thank you.
I repeat, if you have a question, please press asterisk plus one. To cancel it, please press asterisk plus two. This concludes our Q&A session. Once again, I would like to ask you to fill out the questionnaire, survey, which is shown on the screen. Thank you once again, for joining us today.