Slide 1: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Consolidated Business Business Results Results and and Forecast Forecast November 4, 2010 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 h
Slide 2: Contents
Contents Consolidated Business Results 1 for the Six Months Ended September 30, 2010 Consolidated Business Forecast 2 for the Year Ending March 31, 2011 3 Progress of Mid-term Plan (Supplementary Material) 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2010
Consolidated Business Results 1 for the Six Months Ended September 30, 2010 2
Slide 4: Summary of Consolidated Business Results for the Six Months
Summary of Consolidated Business Results for the Six Months Ended September 30, 2010 Business Environment ✓Industrial Machinery : Despite a slow-down in some sectors, sales have been on a recovery trend. ✓Automotive Products: Automotive production remained at a high level thanks to increased demand
Slide 5: Summary of Consolidated Business Results for the Six Months
Summary of Consolidated Business Results for the Six Months Ended September 30, 2010 （Billions of yen） 10/3 1st half 11/3 1st half Increase/ Difference 11/3 1st half decrease ＜Actual＞ ＜Actual＞ YOY YOY ＜Original forecast＞ Sales 257.9 352.8 +94.9 +36.8% 330.0 Operating income -3.9 20.3 +24.2 - 16.5 ＜%
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income/Margin Both Industrial & Automobile Remained at the same level as 1Q on upward trend due to strong despite raw material costs increase demand. and the appreciation of the yen. 200 ( ) ：The effect of exchange rate fluctuations based ( ) ：The effec
Slide 7: Results by Business Segment
Results by Business Segment (Billions of yen) Increase/ 10/3 1st half 11/3 1st half decrease Difference 11/3 1st half ＜Actual＞ ＜Actual＞ YOY <Original forecast> YOY Sales 257.9 352.8 +94.9 +36.8% 330.0 Industrial machinery 89.8 127.5 +37.7 +42.0% 118.5 business Industrial machinery bearings 76.2 98.7
Slide 8: Quarterly Business Segment Performance
Quarterly Business Segment Performance Industrial Machinery Business 80 (Billions of yen) Sales Operating income / Margin Industrial machinery Precision machinery 15 70 bearings and parts ６５. ６５.７ (Billions of yen) ６１. ６１.９ ６１. ６１.８ 60 ５０. ５０.３ 1 2 .7 1 6 .1 10 1 3 .6 50 ４８. ４８.４ 6 .8 % ４１. ４１.４ 7 .
Slide 9: Operating Income: Factors Behind Increase
Operating income : Factors Behind Increase (FY2009 1st half⇒FY2010 1st half) （Billions of yen) FY2009 1st half FY2010 1st half YOY increase of Reduction of external +20.3 procurement cost etc. 24.2 Effect of +2.1 volume increase -3.9 Decline in +31.2 +33.3 sales price Effect of exchange -3.4 rate fl
Slide 10: Business Results by Customer Location
Business Results by Customer Location Increase/ Difference (Billions of yen) 10/3 1st half 11/3 1st half decrease YOY YOY Sales 257.9 352.8 +94.9 +36.8% Japan 126.8 176.0 +49.2 +38.8% Non- Non-Japan 131.1 176.8 +45.7 +34.9% （Non- ratio） Non-Japan ratio） (50.8%) (50.1%) The Americas 31.3 43.6 +12.3 +
Slide 11: Business Results by Geographical Segment
Business Results by Geographical Segment 【Japan】 【The Americas】 Increase/ Increase/ Difference Difference (Billions of yen) 10/3 10/3 1st half 11/3 1st half decrease YOY (Billions of yen) 10/3 10/3 1st half 11/3 1st half decrease YOY YOY YOY Sales 187.5 264.0 +76.5 +40.8% Sales 30.7 43.2 +12.5 +40.7
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets Assets Liabilities and Net Assets Non- Non-current assets Current Assets Net Assets Non- Non-Current Current Ratio of net worth liabilities liabilities to total capital （Billions of yen） （Billions of yen） Change YOY Change YOY 759.6 789.6 774.8 -14.8 789.6 774.8 -14.8 759
Slide 13: Inventory/Interest-Bearing Debt, Capital Expenditure/Depreciation
Inventory/ Interest-Bearing Debt, Capital Expenditure/ Depreciation 棚卸資産 Inventories 設備投資 Capital Expenditure Japan Non- Non-Japan Inventory turnover Japan Non- Non-Japan （Billions of yen） 6.7 （Billions of yen） 5.5 4.9 105.5 104.7 103.5 15.6 54.3 56.2 54.0 11.0 8.8 9.9 5.5 4.4 49.2 49.3 50.7 4.4 5.5
Slide 14: Consolidated Business Forecast for the Year Ending March 31, 2011
Consolidated Business Forecast 2 for the Year Ending March 31, 2011 13
Slide 15: Revised Business Forecast
Forecast for the Year Ending March 31, 2011 Revised Business Forecast ✓Upward revisions were made to both sales and profit forecasts announced in May 11, 2010. ・Despite the appreciation of the yen and an increase in raw material costs in the 1st half, operating income is expected to increase in the
Slide 16: Forecast for the Year Ending March 31, 2011
Forecast for the Year Ending March 31, 2011 (Billions of yen) 10/3 11/3 Increase/ Full year 1st half 2nd half Full year decrease Difference Full year ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ YOY YOY <Original forecast> Sales 587.6 352.8 347.2 700.0 +112.4 +19.1% 66
Slide 17: Key Strategies for the Year Ending March 31, 2011
Key strategies for the Year Ending March 31, 2011 Profitability Improvement Initiatives －Reorganize global production structure －Capital investment for Volume Zone market －Productivity improvement initiatives －External procurement costs －Investment for rationalization, plant automation Accelerate re
Slide 18: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) 10/3 11/3 Increase/ Full year 1st half 2nd half Full year decrease Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Sales 587.6 352.8 347.2 700.0 +112.4 +19.1% 665.0 Industrial machinery business 202.0
Slide 19: Operating Income: Factors Behind Increase (Revised Forecast)
Operating income : Factors Behind Increase (FY2009 ⇒ FY2010 Revised forecast) （Billions of yen） FY2010 1st half FY2010 Revised forecast +30.7 billion External procurement cost reduction etc. 42.0 Volume increase +8.1 FY2009 Decline in 11.3 sales price Effect of +42.2 +50.3 exchange rate -7.0 fluctua
Slide 20: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) 10/3 11/3 1st half 2nd half Full year 1st half 2nd half Full year Increase/ decrease Change Full year <Actual> <Actual> <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Sales 257.9 329.7 587.6 352.8 347.2 700.0 +112.4
Slide 21: Forecast by Geographical Segment
Forecast by Geographical Segment (Billions of yen) 10/3 11/3 Increase/ Change 1st half 2nd half Full year 1st half 2nd half Full year decrease Full year <Actual> <Actual> <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Sales 257.9 329.7 587.6 352.8 347.2 700.0 +11
Slide 22: Progress of Mid-term Plan
3 Progress of Mid-term Plan 21
Slide 23: Outline of the FY'09-FY'12 Mid-term Plan
Outline of the FY’09~FY’12 Mid-term Plan Transition of the Mid-term plan (FY’09~FY’12) Respond to paradigm shifts Reorganize business foundation, aiming towards a 1trillion yen company 《Outline of the Mid-term Plan》 《Numerical Targets》 Net Sales ¥780.0 billion 13/3 Forecast Operating Income Margin 8
Slide 24: Progress of the Mid-term Plan
Progress of the Mid-term Plan FY’09~FY’12 Mid term Plan 8.5% （Billions of yen） 5.7% 6.0% 1,000 3.4% 160 Operating income margin 1.4% 780.0 800 665.0 700.0 120 647.6 587.6 600 66.0 80 400 Sales 42.0 38.0 40 200 22.1 11.3 Operating 0 income 0 09/3 10/3 11/3 11/3 13/3 Actual Actual Original forecast Re
Slide 25: Industrial Machinery Business ①
Industrial machinery Business① (Billions of yen) Sales Progress Progress of of Mid-term plan Mid-term plan 400 ◆Sales progressed steadily 300.0 ◆Achieve operating income target by expanding 300 267.0 Precision sales and implementing planned measures 240.5 253.5 machinery 60.0 57.5 202.0 57.5 and par
Slide 26: Industrial Machinery Business ②
Industrial machinery Business② Production development in Northeastern China (Shenyang) Development of production sites in China ◆ Establish full ◆Establish fullline-up production line-up production Shenyang ◆ Expand business ◆Expand businessfrom fromcoastal coastalarea areato to northeast northeasta
Slide 27: Automotive Business ①
Automotive Business① Progress Progress of of Mid-term plan Mid-term plan Sales （Billions of yen） ◆Sales growing ahead of mid-term plan 500 450.0 403.5 425.5 ◆Focus comprehensively on profitability 400 352.5 366.4 Automotive improvement, enhancing response capability components 209.1 230.0 to environ
Slide 28: Automotive Business ② Electric Power Steering (EPS) Systems
Automotive Business② 《Electric Power Steering (EPS) Systems》 Respond to expanding orders and develop business foundation for next-generation orders Status Status of of mid-term plan mid-term planorders orders(cumulative) (cumulative) Progress Progressof of Key Keystrategies strategies 160 (Billions
Slide 29: Accelerate growth strategies in emerging countries
Accelerate growth strategies in emerging countries Growth investment for production in China Accelerate growth strategies in China 160 Growth investment under development (Billions of yen) yen) China net sales target 140 Growth investment for production in China 120 ～ ～ Precision machinery and parts
Slide 30: (Supplementary Material)
(Supplementary Material) 29
Slide 31: Capital expenditure, Depreciation and Amortization, R&D expenses
(Supplementary Information) Capital expenditure, Depreciation and Amortization, R&D expenses （Billions of yen） 10/3 11/3 11/3 Actual 1st half Actual Forecast Capital expenditure（＊） 19.8 15.6 39.0 Japan 9.9 5.7 18.0 Non-Japan 9.9 9.9 21.0 The Americas 1.0 0.8 2.5 Europe 1.1 0.8 3.0 Asia 7.8 8.3 15.5