Nsk Ltd. · TSE:6471
Nsk — H1 FY2006 Earnings Presentation
28 slides from Nsk's earnings presentation, Nov 6, 2006
Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Business Results and Forecast & Review of the Progress of Mid-Term Plan (FY’06 FY’08) Seiichi Asaka President & CEO November 06, 2006 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, stra
Slide 2: Contents
Contents .Consolidated Business Results & Forecast Results for the Six Months Ended September 30, 2006 Forecast for the Year Ending March 31, 2007 .Review of the Mid-Term Plan (FY’06-FY’08) Outline of the Mid-Term Plan Forecast for the first year of the mid-term plan Progress in Each Business Segmen
Slide 3: Results for the Six Months Ended September 30, 2006
. Consolidated Business Results & Forecasts Results for the Six Months Ended September 30, 2006 2
Slide 4: Summary of Consolidated Business Results for the first half of FY 2006
Summary of Consolidated Business Results for the first half of FY 2006 First half of FY’05 First half of FY’06 1Q 2Q 1Q 2Q Jan.-Mar. Apr.-Jun. Apr.-Jun. Jul.-Sep. 3
Slide 5: Summary of Consolidated Business Results for the first half of FY 2006
Summary of Consolidated Business Results for the first half of FY 2006 (6 months ended Sep. 30, ‘05) (6 months ended Sep. 30, ‘06) (6 months ended Sep. 30, ‘06) (¥100 million) Difference Difference FY ’05:1st half FY ’06: 1st half On a year- year-on- on-year On a year- year-on- on- FY ’06: 1st half
Slide 6: Business Results – By Business Segment
Business Results –By Business Segment – (6 months ended Sep. 30, ’05) (6 months ended Sep. 30, ‘06) (6 months ended Sep. 30, ‘06) (¥100 million) Difference Difference FY ’05:1st half FY ’06: 1st half On a year- year-on- on-year On a year- year-on- on- FY ’06: 1st half <Actual> < Actual > basis(amoun
Slide 7: Operating Income: Improvement Factors
Operating Income: Improvement Factors First half of FY’05 First half of FY’06 First half of FY’06 ¥100 million External ¥30.0 billion procurement +9 Group total cost reductions, etc. +14 Profit contribution attributable to higher sales +35 volume +11.6 billion 17 +98 ¥18.4 billion 23 First half of F
Slide 8: Business Results – By Geographical Region
Business Results – By Geographical Region – (6 months ended Sep. 30, ’05) (6 months ended Sep. 30, ‘06) (6 months ended Sep. 30, ‘06) (¥100 million) Difference Difference FY ’05:1st half FY ’06: 1st half On a year- year-on- on-year On a year- year-on- on- FY ’06: 1st half <Actual> <Actual> basis(amo
Slide 9: Net Sales – By Customer Location
Net Sales –By Customer Location– (6 months ended Sep. 30, ’05) (6 months ended Sep. 30, ‘06) (6 months ended Sep. 30, ‘06) ¥100 Million Difference Difference FY ’05:1st half FY ’06: 1st half On a year- year-on- on-year On a year- year-on- on-year FY ’06: 1st half <Actual> <Actual> basis(amount) basi
Slide 10: Consolidated Balance Sheets
Consolidated Balance Sheets (6 months ended Sep. 30, ’05) (6 months ended Sep. 30, ‘06) ¥100 Million FY’05 FY’06 Difference 1st half 2nd half 1st half On a year- year-on- on-year basis(amount Assets Current assets 2,865 3,136 3,250 +114 Non-current assets 3,728 4,294 4,212 -82 Total assets 6,593 7,4
Slide 11: Inventories/Interest-Bearing Debts/Capital Expenditures/Depreciation
Inventories/Interest-Bearing Debts/ Capital Expenditures/Depreciation \ \ Inventory turnover (times) Net D/E Ratio Overseas Overseas Japan Japan \ \ Overseas Overseas Japan Japan 10 10
Slide 12: Forecast for the Year Ending March 31, 2007
. Consolidated Business Results & Forecasts Forecast for the Year Ending March 31, 2007
Slide 13: Forecasts for the Year Ending Mar. 31, 2007: Revised Business Results
Forecasts for the Year Ending Mar. 31, 2007 Revised Business Results ’ ’ Business Environment 12 12
Slide 14: Forecasts for the Year Ending Mar. 31, 2007
Forecasts for the Year Ending Mar. 31, 2007 ¥100 million FY’05 FY’06 1st half 2nd half Full year Difference Full year Full year on a year- year-on- on- Actual Actual Forecast Forecast year basis Forecast revised in Aug. Sales 6,285 3,493 3,557 7,050 +765 6,900 Operating 426 300 310 610 +184 555 inco
Slide 15: Forecasts – By Business Segment
Forecasts –By Business Segment– ¥100 million FY’05 FY’06 Full year 1st half 2nd half Full year Difference on a year- year-on- on- Full year Actual Actual Forecast Forecast year basis <Forecast revised in Aug. > Sales 6,285 3,493 3,557 7,050 +765 6,900 Industrial bearings 1,956 1,056 1,104 2,160 +204
Slide 16: Business Results – By Geographical Region
Business Results – By Geographical Region – ¥100 million FY’05 FY’06 Difference Full year 1st half 2nd half Full year on a year- year-on- on- Full year Actual Actual Forecast Forecast year basis Forecast revised in Aug, Sales 6,285 3,493 3,557 7,050 +765 6,900 Japan 4,762 2,538 2,705 5,243 +481 5,13
Slide 17: Net Sales – By Customer Location
Net Sales –By Customer Location– ¥100 million FY’05 FY’06 Difference Full year 1st half 2nd half Full year on a year- year-on- on-year basis Full year Actual Actual Forecast Forecast Forecast revised in Aug, Sales 6,285 3,493 3,557 7,050 +765 6,900 Japan 3,301 1,764 1,844 3,608 +307 3,604 Americas 9
Slide 18: Review of the Mid-Term Plan (FY'06-FY'08)
. Review of the Mid -Term Plan Mid-Term (FY ’06-FY’08) (FY’06-FY’08)
Slide 19: Summary of the Mid-Term Plan (FY'06-FY'08)
Summary of the Mid-Term Plan (FY’06-FY’08) Outline Numerical Target for FY’08 Mid-Term Vision Sales ¥740 billion Become No.1 in Total Quality Operating income ¥74 billion Operating income 10.0% Strengthen: margin Manufacturing Capability ROE 15.0% Net D/E Ratio 0.4 Product Development Capability Gro
Slide 20: Forecast for the first year of Mid-Term Plan
Forecast for the first year of Mid-Term Plan (FY’06-FY’08) left Sales right Operating income Mid-term plan (FY’06-FY’08) 10.0% ¥100 million 8.7% 6.8% 7.6% 10,000 1,600 Operating income margin 8,000 7,050 7,400 6,800 1,200 6,285 6,000 740 800 4,000 Sales 520 610 426 400 2,000 Operating income 0 0 FY’
Slide 21: Industrial Machinery Bearings segment
Industrial Machinery Bearings segment ¥100 million Business Plan Business Business environment environment Sales Operating income 14.6% Operating Underlying strength expected to continue Sales income 13.0% 3,000 1,000 Focus on changes in business environment in U.S. 11.3% 11.6% and China, as well as
Slide 22: Industrial Machinery Bearings - Build Foundation for Growth Strategy
Industrial Machinery Bearings -Build Foundation for Growth Strategy- New New Fujisawa Fujisawa Plant Plant Construction Construction started started Outline of new plant ¥20 billion UP ¥80 billion ¥60 billion Production category : Large roller bearings Operation starting : January, 2008 (Plan) Inves
Slide 23: Automotive Products
Automotive Products Business Plan Business Business environment environment ¥100 million Number of automotive production forecast Sales Operating income 7.8% Increase 102% Y-O-Y expected to be slightly below 5.9% to NSK estimate) Sales 4.9% 5.7% Operating income Each automobile manufacturer faces di
Slide 24: Automotive Products - Progress in Each Region
Automotive Products -Progress in Each Region- Europe Japan Expand production at steering plant in Poland Stabilize productivity by improving productivity Respond to new EPS orders capability and pre-processing capacity Drive sales expansion activities to automobile Effect of reducing expenses for re
Slide 25: Precision Machinery and Parts
Precision Machinery and Parts Business Plan Business Business environment environment Sales Operating income Strong demand for machine tools / industrial ¥100 million 15.4% 14.0% machinery. 11.7% Sales Operating income Temporary adjustment seen for liquid crystal 1,000 8.5% equipment 350 Progress Pr
Slide 26: Business in China
Business in China Business Business environment environment Progress Progress of of key key strategies strategies Chinese economic growth in the 1st half Steady production in plants in 2006 expected to exceed 10 Progress in improving profitability Strengthen technical support system Healthy demand f
Slide 27: Supplementary Information: Forecast for FY'06
Supplementary Information Forecast for FY’06 ¥100 million FY’06 Forecast Capital expenditure 355 Japan 231 Overseas 124 Americas 32 Europe 22 Asia 70 ¥100 million FY’06 Forecast Depreciation 320 ¥100 million FY’06 Forecast 26 R&D 100
Slide 28: Supplementary Information: Forecast for FY'06 by business segments
Supplementary Information Forecast for FY’06 by business segments ¥100 million FY’05 Actual FY’06 Revised forecast FY’08 Plan Industrial machinery bearings Sales 1,956 2,160 2,300 Operating income Margin 221 <11.3%> 280 <13.0%> 335 <14.6%> Automotive products Sales 3,531 3,865 4,220 Operating income