Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Business Results and Forecast November 5, 2014 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance that are not historical fact are forward-looking statemen
Slide 2: Contents
Contents １．Consolidated Business Results for the Six Months Ended September 30, 2014 ２．Consolidated Business Forecast for the Year Ending March 31, 2015 ３．Progress of the 4th Mid-Term Management Plan (Supplementary Information) 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2014
1．Consolidated Business Results for the Six Months Ended September 30, 2014 2
Slide 4: Summary of Consolidated Business Results for the Six Months Ended September 30, 2014
Summary of Consolidated Business Results for the Six Months Ended September 30, 2014 Business Environment ✓Industrial Machinery Business: Gradual recovery trend continued overall despite differences among sectors ✓Automotive Business: Japan: Impact of consumption tax increase within assumptions U.S.
Slide 5: Summary of Consolidated Business Results for the Six Months Ended September 30, 2014
Summary of Consolidated Business Results for the Six Months Ended September 30, 2014 Increase/ (Billions of yen) FY2013 1st half FY2014 1st half Difference FY2014 1st half Decrease <Actual> <Actual> YOY <Jul. revised forecast> YOY Net sales 413.6 464.4 +50.8 +12.3% 460.0 Operating income 28.8 40.7 +
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating Income / Margin Gradual recovery trend in the industrial Although 2Q overall operating income machinery business continued. Sales in the increased significantly YOY, it was level Automotive business expanded, driven by with 1Q performance. strong North
Slide 7: Results by Business Segment
Results by Business Segment Increase/ (Billions of yen) FY2013 1st half FY2014 1st half Difference FY2014 1st half Decrease <Actual> <Actual> YOY <Jul. revised forecast> YOY Net sales 413.6 464.4 +50.8 +12.3% 460.0 Industrial machinery business 115.9 132.5 +16.6 +14.3% 132.0 Industrial machinery bea
Slide 8: Operating Income: Factors Behind Increase (FY2013 1st half to FY2014 1st half)
Operating Income: Factors Behind Increase (FY2013 1st half ⇒ FY2014 1st half) (Billions of yen) Effect of exchange rate fluctuations Reduction of external 40.7 procurement costs +2.0 Volume +6.3 increase etc. 28.8 Decline in sales price △4.0 Increase in other costs +14.6 △7.0 +11.9 FY2013 1st half F
Slide 9: Business Results by Customer Location
Business Results by Customer Location (Billions of yen) FY2013 1st half FY2014 1st half Increase/ Difference <Actual> <Actual> Decrease YOY YOY Net sales 413.6 464.4 +50.8 +12.3% Japan 163.2 162.6 -0.6 -0.3% Non-Japan 250.4 301.7 +51.3 +20.5% (Non-Japan ratio) (60.5%) (65.0%) The Americas 64.8 76.8
Slide 10: Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortization
Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortization Inventories Capital Expenditure (Billions of yen) (Billions of yen) Japan Non-Japan Japan Non-Japan 6.6 6.9 6.7 25.2 133.1 131.7 144.2 18.0 16.8 93.1 17.5 79.5 82.7 13.8 11.4 53.6 49.0 51.0 4.2 7.7 5.4 End of Se
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2015
2．Consolidated Business Forecast for the Year Ending March 31, 2015 10
Slide 12: Summary of Consolidated Business Forecast for the Year Ending March 31, 2015
Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 Business Forecast ✓ Business forecast revised upward from July announcement ✓ Net sales ¥950.0 billion (+9.0% YoY) / Operating Income ¥86.0 billion (+26.4% YoY ) Ordinary Income ¥84.5 billion (+26.5% YoY) / Net Income ¥57.0
Slide 13: Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 (FY2014)
Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 (FY2014) (Billions of yen) FY2013 FY2014 Increase/ Full year 1st half 2nd half Full year Decrease Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Jul. Forecast> Net sales 871.7 464.4 485.6
Slide 14: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) FY2013 FY2014 Increase/ Full year 1st half 2nd half Full year Decrease Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Jul. Forecast> Net sales 871.7 464.4 485.6 950.0 +78.3 +9.0% 926.0 Industrial machinery business 243
Slide 15: Operating Income: Factors Behind Increase (FY2013 to FY2014 Forecast)
Operating Income: Factors Behind Increase (FY2013 ⇒ FY2014 Forecast) (Billions of yen) Effect of exchange rate fluctuations 86.0 Reduction of external procurement costs +3.8 Volume +12.5 68.0 Decline in sales price increase etc. △8.0 Increase in other costs +23.7 △14.0 +18.0 FY2013 FY2014 14
Slide 16: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) FY2013 FY2014 Increase/ Full year 1st half 2nd half Full year Decrease Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Jul. Forecast> Net sales 871.7 464.4 485.6 950.0 +78.3 +9.0% 926.0 Japan 329.1 162.6 167.9 330.5 +1
Slide 17: Progress of the 4th Mid-Term Management Plan
3．Progress of the 4th Mid-Term Management Plan 16
Slide 18: Mid-Term Management Plan: Outline
Mid-Term Management Plan: Outline Establishing corporate fundamentals appropriate for a company with net sales of ¥1 trillion 《 Numerical Targets 》 Business Strategies Corporate Foundation FY2015 Develop management capability to Growth with focus on profitability handle ¥1 trillion in sales volume N
Slide 19: The 4th Mid-Term Management Plan: Business Forecast
The 4th Mid-Term Management Plan: Business Forecast FY2009-FY2012 Mid-term Plan FY2013-FY2015 Mid-term Plan Sales Operating income Operating income % 9.1% 9.1% (Billions of Yen) 7.8% (Billions of Yen) 6.1% 6.1% 160 4.4% 1,000 950.0 940.0 1.9% 871.7 800 733.2 732.8 120 710.4 587.6 86.0 86.0 600 68.0
Slide 20: Industrial Machinery Business 1: FY2014 Business Environment and Forecast
Industrial Machinery Business ① FY2014 Business Environment and Business Forecast 【Demand trend by sector】 Net Sales Precision Machinery (Billions of yen) Sectors Overall Japan Non-Japan 400 and Parts 300.0 Electrical / IT 300 272.0 255.8 243.0 53.0 Steel Plant Facilities 216.1 43.5 45.0 37.3 200 33
Slide 21: Industrial Machinery Business 2: Progress of Mid-Term Management Plan
Industrial Machinery Business ② Progress of Mid-Term Management Plan Railways Enhancing Corporate Fundamentals Expansion focusing on China ■ Sales expansion through shorter (Index) 【Railway Sector Sales】 production lead time 200 - Shortening standard production lead time Outside - Expanding sales by
Slide 22: Automotive Business 1: Vehicle Production Forecast and Business Forecast
Automotive Business ① Vehicle Production Forecast and Business Forecast 【Global vehicle production volume】 Japan N. America Europe China ASEAN6 Others Net Sales (Millions of vehicles) (Billions of yen) 100.0 92.9 637.0 87.1 89.4 89.1 590.5 590.0 Components Automotive 80.0 82.9 600 15.5 15.1 16.2 80.
Slide 23: Automotive Business 2: Progress of Mid-Term Management Plan
Automotive Business ② Progress of Mid-Term Management Plan Automotive Business Automotive Components Sales expansion in emerging countries Increase in EPS order intake 【Sales in emerging countries】 50% 15 (Million pcs) 【EPS volume】 (Billions of yen) Sales in emerging Sales in emerging Working to obt
Slide 24: Supplementary Information
(Supplementary Information) 23
Slide 25: Forecast by Business Segment
(Supplementary Information) Forecast by Business Segment (Billions of yen) FY2013 FY2014 1st half 2nd half Full year 1st half 2nd half Full year Difference Change <Actual> <Actual> <Actual> <Actual> <Forecast> <Forecast> YOY YOY Net sales 413.6 458.1 871.7 464.4 485.6 950.0 +78.3 +9.0% Industrial ma
Slide 26: Forecast by Geographical Segment
(Supplementary Information) Forecast by Geographical Segment (Billions of yen) FY2013 FY2014 Increase/ Full year 1st half 2nd half Full year Decrease Change <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY Net sales 871.7 464.4 485.6 950.0 +78.3 +9.0% Japan 512.2 254.2 260.8 515.0 +2.
Slide 27: Consolidated Balance Sheets
(Supplementary Information) Consolidated Balance Sheets Assets Liabilities and Net Assets (Billions of yen) (Billions of yen) Net assets Non-current liabilities Non-current assets Current assets Current liabilities Ratio of net worth to total capital Change from Change from FY2013 4Q FY2013 4Q 1,056
Slide 28: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital Expenditure, Depreciation and Amortization, R&D Expenses (Billions of yen) FY2013 FY2014 1st half FY2014 <Actual> <Actual> <Forecast> Capital expenditure (※) 43.2 16.8 46.0 ※Excluding intangible assets (Billions of yen) FY2013 FY2014 1st half FY2014 <Actual> <Actu