Nok Corporation · TSE:7240
Nok — H1 FY3/13 Earnings Presentation
41 slides from Nok's earnings presentation, Nov 9, 2012
Slide 1: Financial Results for the First Half of Fiscal Year Ending March 31, 2013
Financial Results for the First Half of Fiscal Year Ending March 31, 2013 NOK CORPORATION (7240 / TSE1) November 9, 2012
Slide 2: Disclaimer
Disclaimer Any plans, forecasts, strategies, policies and opinions relating to NOK Corporation or NOK Group companies or other information contained in these materials that are not historical facts constitute forward-looking statements. The content of such statements is based on the best informati
Slide 3: Table of Contents
Table of Contents Page 4 1H FY3/13 Consolidated Financial Results Page 9 FY3/13 Consolidated Financial Forecasts Page 18 Business Overview by Industry and by Region Page 24 References Copyright (c) NOK CORPORATION All rights reserved. 3
Slide 4: 1H FY3/13 Consolidated Financial Results
1H FY3/13 Consolidated Financial Results
Slide 5: 1H FY3/13 Consolidated Financial Highlight
1H FY3/13 Consolidated Financial Highlight The Japanese economy stalled due to factors including financial instability in Europe, a slowdown in economic growth in China and the longstanding appreciation of the yen, although the economy was generally robust due to demand from restoration activities
Slide 6: Summary of 1H FY3/13 Consolidated Financial Results
Summary of 1H FY3/13 Consolidated Financial Results (¥ million) FY3/12 FY3/13 YoY Change Change vs. Forecast 1H 1H Forecast Actual Margin Actual Margin Amount % Amount % as of 5/11 Net sales 238,559 ー 262,700 260,880 ー 22,320 9.4% (1,820) -0.7% Operating income 13,312 5.6% 14,800 14,143 5.4% 831 6.2
Slide 7: Changes in 1H FY3/13 Consolidated Operating Income (vs. 1H FY3/12)
Changes in 1H FY3/13 in Consolidated Operating Income (vs. 1H FY3/12) (\ billion) 0.8 (0.1) (6.9) 5.8 0 1.2 14.1 13.3 +0.8 Impact of Sales Reduction Depreciation Expense Reduction Raw Materials Cost Impact of FX and SG&A Expenses Increased Personnel Reduction Cost of Sales 1H FY3/12 1H FY3/13 Operat
Slide 8: Changes in 1H FY3/13 Consolidated Operating Income (vs. Initial Forecast)
Changes in 1H FY3/13 Consolidated Operating Income (vs. Initial Forecast) (\ billion) 14.8 (3.1) (0.7) 0.5 14.1 0.2 0.2 0.5 1.0 Impact of Sales Reduction Depreciation Expense Reduction Raw Materials Cost Impact of FX and SG&A Expenses Decreased Personnel Reduction Cost of Sales 1H FY3/13 1H FY3/13 O
Slide 9: FY3/13 Consolidated Financial Forecasts
FY3/13 Consolidated Financial Forecasts
Slide 10: Revisions to FY3/13 Consolidated Financial Forecasts
Revisions to FY3/13 Consolidated Financial Forecasts (as of October 16, 2012) Changes in Operating Income Net Sales (Initial Forecast vs. Revised Forecast) Because of the impact on the real economy from slowing economic growth in China, the (\ billion) protracted strengthening of the yen , growi
Slide 11: Summary of FY3/13 Consolidated Financial Forecasts
Summary of FY3/13 Consolidated Financial Forecasts (¥ million) FY3/12 FY3/13 YoY Change 11-May-12 16-Oct-12 Change vs. Initial Forecast Actual Initial Forecast 1H Revised Forecast Full Year Full Year Actual 2H Full Year Amount % Amount % Net sales 495,251 564,000 260,880 284,619 545,500 50,248 10.1%
Slide 12: FY3/13 Financial Forecast by Business Segment
FY3/13 Financial Forecast by Business Segment (¥ million) FY3/12 FY3/13 YoY Change 11-May-12 16-Oct-12 Change vs. Initial Forecast Actual Initial Forecast Actual Revised Forecast Full Year Full Year 1H 2H Full Year Amount % Amount % Net sales 259,143 273,000 131,695 123,804 255,500 (3,643) -1.4% (17
Slide 13: Changes in FY3/13 Consolidated Operating Income Forecast
Changes in FY3/13 Consolidated Operating Income Forecast (vs. FY3/12) (\ billion) 1.8 (1.7) 3.7 (1.0) (9.3) 6.6 30.1 30.0 +0.1 Impact of Sales Reduction Depreciation Expense Reduction Raw Materials Cost Impact of FX and SG&A Expenses Increased Personnel Reduction Cost of Sales 1H FY3/12 FY3/13 Opera
Slide 14: Seal Business Overview and Outlook
Seal Business Overview and Outlook Capital (\ million) Net Sales Operating Income Operating Margin Depreciation No. of Employees Investment FY3/12 1H Actual 125,917 11,982 9.4% 6,784 8,642 18,296 FY3/13 1H Actual 131,695 11,906 8.9% 11,040 8,316 19,335 Amount 5,778 △ 76 ー 4,255 △ 325 1,039 Changes i
Slide 15: Electronic Device Product Business Overview and Outlook
Electronic Device Product Business Overview and Outlook Capital (\ million) Net Sales Operating Income Operating Margin Investment Depreciation No. of Employees FY3/12 1H Actual 90,855 1,186 1.3% 4,005 5,691 20,349 FY3/13 1H Actual 108,931 1,744 1.6% 12,837 5,806 25,293 Amount 18,075 558 ー 8,832 115
Slide 16: Roll Business Overview and Outlook
Roll Business Overview and Outlook Capital (\ million) Net Sales Operating Income Operating Margin Investment Depreciation No. of Employees FY3/12 1H Actual 15,125 △ 345 -2.3% 692 627 2,139 FY3/13 1H Actual 14,054 115 0.8% 82 513 2,803 Amount △ 1,071 461 ー △ 609 △ 113 664 Changes in YoY Ratio -7.1%
Slide 17: Trend of the Mid-Term Management Plan
Trend of the Mid-Term Management Plan [Slogan] Consolidated Net Sales and Operating Income Building Foundations for Sustainable Growth -Ensuring Success in the Next Decade - (¥ million) Net sales Operating income Operating margin 700,000 10.0% [Policies] 600,000 600,000 545,500 ① Improving global ma
Slide 18: Business Overview by Industry and by Region
Business Overview by Industry and by Region
Slide 19: Consolidated Net Sales Trend by Industry (Half Year)
Consolidated Net Sales Trend by Industry (Half Year) Net Sales by Industry (¥ million) Genaral Industry（GI） Electronic Industry (EI) Automobile Industry (AI) 350,000 284,619 300,000 256,691 260,880 249,130 249,802 238,559 44,775 250,000 48,392 46,625 59,831 60,434 53,128 200,000 100,770 133,130 150,
Slide 20: Consolidated Net Sales Trend by Region (Half Year)
Consolidated Net Sales Trend by Region (Half Year) Net Sales by Region (¥ million) Other Other Asia China Japan 350,000 300,000 284,619 256,691 260,880 4,777 249,130 249,802 238,559 5,037 5,539 53,985 250,000 5,204 4,830 5,615 54,595 49,015 53,353 54,127 200,000 55,788 91,004 46,903 51,944 62,400 62
Slide 21: Net Sales Trend for Seal Business by Region (Half Year)
Net Sales Trend for Seal Business by Region (Half Year) Seal Business： Net Sales by Region (¥ million) Other Other Asia China Japan 180,000 150,000 135,158 135,411 133,225 131,695 125,917 123,804 1,280 1,202 1,327 1,550 120,000 15,859 16,592 1,581 12,345 14,400 1,250 12,723 12,418 14,625 14,934 14,8
Slide 22: Net Sales Trend for Electronic Device Product Business by Region
Net Sales Trend for Electronic Device Product Business by Region (Half Year) Electronic Device Product Business: Net Sales by Region (¥ million) Other Other Asia China Japan 180,000 150,000 141,068 3,527 120,000 103,256 108,931 38,195 90,267 91,447 90,855 3,711 3,989 90,000 3,924 3,628 4,035 38,696
Slide 23: Trend of Capital Investment and Depreciation Expenses by Region
Trend of Capital Investment and Depreciation Expenses by Region (Half Year) Capital Investment* Depreciation (¥ billion) Europe/the U.S. China/Asia Japan (¥ billion) Europe/the U.S. China/Asia Japan 50.0 50.0 40.0 36.4 40.0 0.0 30.0 24.1 30.0 0.1 23.1 17.4 17.2 20.0 15.6 20.0 16.3 15.0 16.1 14.7 13.
Slide 24: References
References
Slide 25: Corporate History
Corporate History 1939 Edogawa Seiki Co., Ltd. founded 1976 Subsidiary NOK KLUEBER CO., LTD. 1995 Subsidiary Wuxi NOK-Freudenberg Oilseal Co., 1941 Japan Bearing Production Co., Ltd. founded in established Ltd. established in China Kobe 1978 Equity stake taken in Pyung Hwa Oil Seal 1996 Subsidiary n
Slide 26: Global Deployment
Global Deployment Copyright (c) NOK CORPORATION All rights reserved. 26
Slide 27: NOK Group Strengths
NOK Group Strengths NOK Group companies make up a “Group of Compound Technology Manufacturers” like one firm connected to each division as an enterprise group sharing core technologies. Each company boasts its individual strengths while sharing a common vision, and conducts business operations to ha
Slide 28: NOK's R&D
NOK’s R&D The Shonan Development Center aggregates all of NOK’s advanced technologies, and was established with the aim of accelerating the development process. This development system removes barriers between each division, and provides a self contained comprehensive approach from product design th
Slide 29: NOK Major Products: Oil Seals
NOK Major Products: Oil Seals Oil seals are a functional part to seal oil. For “moving” parts of machinery, revolving and vertical up and down motion etc, oil seals prevent leakage of lubricant oils, water, chemical solutions, gas etc, and also prevent outside particulates from getting in. They are
Slide 30: NOK Major Products: Flexible Printed Circuits (FPC)
NOK Major Products: Flexible Printed Circuits (FPC) Flexible printed circuits (FPC) are flexible circuit boards based on films. Thanks to the functionality of flexible printed circuit boards, compact cellular phones became a reality. Applications are not limited to cell phones, but also cover many a
Slide 31: NOK Products in Automobiles
NOK Products in Automobiles 青線に変更 写真配置変更 文字拡大 Copyright (c) NOK CORPORATION All rights reserved. 31
Slide 32: Market Trends by Sector: Motor Vehicle
Market Trends by Sector: Motor Vehicle Domestic Unit Production (Half Year, FY) Motor Vehicle Domestic Unit Production (Thousands of units) Knockdown Export Domestic 15,000 12,000 11,002 10,954 9,949 10,200 9,503 8,741 9,000 5,637 6,048 5,165 5,293 6,000 4,839 2,639 2,367 2,376 3,000 2,427 1,983 2,4
Slide 33: NOK Products in General Industrial Machinery
NOK Products in General Industrial Machinery Copyright (c) NOK CORPORATION All rights reserved. 33
Slide 34: Market Trends by Sector: Construction Machinery
Market Trends by Sector: Construction Machinery Domestic Unit Production (Half Year, FY) Construction Machinery Domestic Unit Production (Units) 120,000 99,811 95,590 100,000 85,157 86,679 74,988 72,170 80,000 60,000 40,000 20,000 0 Apr-Sep Oct-Mar Apr-Sep Oct-Mar Apr-Sep Oct-Mar (Forecast) FY3/11 F
Slide 35: NOK Products in IT Electronic Devices
NOK Products in IT Electronic Devices Boasting the top global share of flexible circuits (FPC), these are used in a wide range of advanced electronic devices. Also, multi-layer flexible boards (Flex-Boards) made with advanced technology is indispensable for the miniaturization and high functionality
Slide 36: Market Trends by Sector: Mobile Phone
Market Trends by Sector: Mobile Phone Worldwide Unit Shipments (Half Year, CY) Mobile Phone Worldwide Unit Shipments (Millions of units) Smart phones Mobile phones 1,500 1,200 1,008 919 869 857 841 900 728 595 600 656 543 687 648 611 300 413 263 298 182 209 117 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-
Slide 37: Market Trends by Sector: HDD
Market Trends by Sector: HDD Worldwide Unit Production (Half Year, CY) HDD Worldwide Unit Production (Millions of units) 500 400 331 334 324 320 287 282 300 200 100 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Forecast CY2010 CY2011 CY2012 Source: Estimates by NOK CORPORATION Copyright (c) NOK
Slide 38: Market Trends by Sector: Digital Camera
Market Trends by Sector: Digital Camera Domestic Unit Shipments (Half Year, CY) Digital Camera Domestic Unit Shipments (Millions of units) Single-Lens Reflex-type Compact-type 100 77 80 71 62 61 57 60 54 40 69 62 56 54 47 46 20 6 8 7 9 8 10 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Forecast
Slide 39: Market Trends by Sector: Tablet PC
Market Trends by Sector: Tablet PC Worldwide Unit Shipments (Half Year, CY) Tablet PC Worldwide Unit Shipments (Millions of units) 100 80 72 60 54 45 40 28 20 17 4 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Forecast CY2010 CY2011 CY2012 Source: Estimates by NOK CORPORATION Copyright (c) NOK C
Slide 40: Contact: NOK Corporation
Contact: NOK CORPORATION CORPORATE COMMUNICATION SECT. CORPORATE PLANNING DEPT. CORPORATE PLANNING OFFICE. Phone: +81-3-3434-1736 E-mail: ksuzukix@nok.co.jp URL: http://www.nok.co.jp/ Copyright (c) NOK CORPORATION All rights reserved.
Slide 41: Segment Information: Fiscal 2012 Forecasts
Nov 9, 2012 Segment Information: Fiscal 2012 Forecasts NOK Corporation （Millions of yen) FY2011(Results) FY2012,1H Results & Annual Forecasts Segment component Year-on-Year component Year-on-Year component Year-on-Year component Fiscal 1H Fiscal 2H FY2011 Fiscal 1H Fiscal 2H FY2012 ratio Change rati