Slide 1: Financial Conference for the Results of the Year Ended March 31, 2003
FINANCIAL CONFERENCE FOR THE RESULTS OF THE YEAR ENDED MARCH 31, 2003 AND FORECASTS FOR THE YEAR ENDING MARCH 31, 2004 Seiichi Asaka President & CEO May 15, 2003 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies
Slide 2: Contents
Contents MOTION & CONTROL Consolidated Business Results for the 2 ~ 21 Year Ended March 31, 2003 Forecasts For The Year Ending 22 ~ 29 March 31, 2004 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2003
Consolidated Business Results for the Year Ended March 31, 2003 MOTION & CONTROL 2
Slide 4: Summary of the Consolidated Business Results for FY 2002
Summary of the Consolidated Business Results for FY 2002 MOTION & CONTROL *Profit and loss items are compared with the same period last year. Balance sheet items are compared with year-end data for FY 2001. (Year ended Mar. 31, ‘01) (Year ended Mar. 31, ‘02) (Year ended Mar. 31, ‘03) Difference (%)
Slide 5: Summary of Benefits from the 2nd Phase of the NSK Business Restructuring Program
Summary of Benefits from the 2nd Phase of the “NSK Business Restructuring Program” MOTION & CONTROL (Year ended Mar. 31, ‘03) (¥ 100 million) FY 2002 Profit contributions Restructuring of our domestic +27 employment system Reduction of procurement costs +45 Restructuring of our European +58 business
Slide 6: Changes in the Scope of Consolidation
Changes in the Scope of Consolidation MOTION & CONTROL (1) Changes in the scope of consolidated subsidiaries (74 companies 76 companies) < Increase due to establishment of new corporate entities: 4 companies > • NSK Precision Co., Ltd. • NSK Steering Systems Dongguan Co., Ltd. • Zhangjiagang NSK Pre
Slide 7: Consolidated net sales – By customer location
Consolidated net sales –By customer location– MOTION & CONTROL (Year ended (Year ended Increase/ Net increase/ March 31, 2002) March 31, 2003) Effect of FOREX, etc. (¥100 million) FY 2001 FY 2002 (decrease) (decrease) (+8.4%) Japan 2,576 2,793 +217 ― +217 (Overseas sales ratio) (46.4%) (46.6%) Overs
Slide 8: Consolidated net sales – By business segment
Consolidated net sales –By business segment– MOTION & CONTROL (Year ended (Year ended Increase/ Net increase/ March 31, 2002) March 31, 2003) Effect of FOREX, etc. (¥100 million) FY 2001 FY 2002 (decrease) (decrease) Bearings (+5.4%) 3,023 3,219 +196 +34 +162 Automotive (+15.4%) 1,282 1,507 +225 +27
Slide 9: Consolidated net sales – Automotive components
Consolidated net sales –Automotive components– MOTION & CONTROL (Year ended (Year ended Increase/ (¥100 million) March 31, 2002) March 31, 2003) FY 2001 FY 2002 (decrease) Automotive components 1,282 1,507 +225 (+17.6%) EPS 284 377 +93 (+32.7%) Steering columns & joints 399 468 +69 (+17.3%) Automati
Slide 10: Consolidated net sales – Precision machinery and parts
Consolidated net sales –Precision machinery and parts– MOTION & CONTROL (¥100 million) (Year ended March 31, 2002) (Year ended March 31, 2003) FY 2001 FY 2002 1st half 2nd half 1st half 2nd half Precision machinery and parts 209 131 165 184 Linear products 127 89 102 106 (Increase/decrease) -24.4% -
Slide 11: Consolidated business results – By geographical segment
Consolidated business results –By geographical segment– MOTION & CONTROL (Year ended March 31, 2002) (Year ended March 31, 2003) Increase/ Effect of Net increase/ (¥100 million) FY 2001 FY 2002 (decrease) FOREX, etc. (decrease) 《Sales》 》 (+7.9%) Japan 3,667 3,955 +288 ― +288 The Americas (+4.6%) 733
Slide 12: Operating income: Improvement factors (Japan)
Operating income: Improvement factors (FY 2001 VS FY 2002) MOTION & CONTROL (¥100 million) Japan FY 2002 Reduction of Others 129 headcount, etc. +10 Procurement +27 cost reductions +98 +45 Increase in profits due to increase in Increase in base sales volume salaries, bonuses, retirement benefit expe
Slide 13: Operating income: Improvement factors (Europe)
Operating income: Improvement factors (FY 2001 VS FY 2002) MOTION & CONTROL (¥100 million) Europe FY 2002 Benefits from business restructuring Others activities, such -19 as SG&A cost reductions +8 +24 Procurement cost reductions +44 Decrease in (Net improvement: +49) sales volume, etc. Reduction of
Slide 14: Consolidated business results – By business segment
Consolidated business results –By business segment– MOTION & CONTROL (¥100 million) (Year ended March 31, 2002) (Year ended March 31, 2003) Increase/ Effect of Net increase/ FY 2001 FY 2002 (decrease) FOREX, etc. (decrease) 《Sales》 》 Bearings (+5.4%) 3,023 3,219 +196 +34 +162 Automotive (+15.4%) com
Slide 15: Consolidated non-operating income and losses
Consolidated non-operating income and losses MOTION & CONTROL (Year ended (Year ended (Year ended Mar. 31, 2001) Mar. 31, 2002) Mar. 31, 2003) (¥100 million) FY 2000 FY 2001 FY 2002 Y.O.Y Operating income 258 39 178 +139 Non-operating income 97 76 81 +5 Interest and dividend income 26 21 18 -3 Equit
Slide 16: Consolidated extraordinary income and losses
Consolidated extraordinary income and losses MOTION & CONTROL (Year ended (Year ended (Year ended Mar. 31, 2001) Mar. 31, 2002) Mar. 31, 2003) (¥100 million) FY 2000 FY 2001 FY 2002 Y.O.Y Ordinary income 191 -32 108 +140 Extraordinary income 247 96 160 +64 Gain on sales of property, plant and equipm
Slide 17: Consolidated balance sheets
Consolidated balance sheets MOTION & CONTROL (Year ended (Year ended (Year ended Difference Mar. 31, 2001) Mar. 31, 2002) Mar. 31, 2003) from the FY 2000 FY 2001 FY 2002 previous (¥100 million) fiscal year Current assets 3,216 2,915 2,858 -57 Cash and deposits 187 245 373 +128 Notes and accounts rec
Slide 18: Consolidated inventories
Consolidated inventories MOTION & CONTROL Excluding (Year ended (Year ended (Year ended Y.O.Y effect March 31, 2001) March. 31, 2002) March 31, 2003) Y.O.Y of FOREX, in local FY 2000 FY 2001 FY 2002 etc. currencies (¥100 million) Japan 523 454 380 -74 -74 <Non- 313 268 184 -84 -84 consolidated> Over
Slide 19: Consolidated capital expenditures
Consolidated capital expenditures MOTION & CONTROL (Year ended (Year ended (Year ended (Year ending March 31, 2001) March. 31, 2002) March 31, 2003) Mar. 31, 2004) FY 2000 FY 2001 FY 2002 FY 2003 (¥100 million) <Forecast> Total capital 385 362 230 240 expenditures Japan 247 185 120 120 <Non- consoli
Slide 20: Consolidated balance sheets
Consolidated balance sheets MOTION & CONTROL (Year ended (Year ended (Year ended Difference Mar. 31, 2001) Mar. 31, 2002) Mar. 31, 2003) from the FY 2000 FY 2001 FY 2002 previous (¥100 million) fiscal year Current liabilities 2,620 2,394 2,274 -120 Notes and accounts payables 1,050 863 874 +11 Short
Slide 21: Consolidated interest bearing debts
Consolidated interest bearing debts MOTION & CONTROL D/E ratio (times) (¥100 million) 1.57 1.41 1.31 1.21 1.08 2,724 2,614 2,678 2,458 2,478 556 514 554 403 Overseas 2,168 2,164 2,060 2,055 Japan FY 1999 (Year-end) FY 2000 (Year-end) FY 2001 (Year-end) FY 2002 (Year-end) FY 2003 (Forecast) 20
Slide 22: Source of Funds: cash flow (FY 2002)
Consolidated cash flow (FY 2002) MOTION & CONTROL (Excluding the effect of exchange rate fluctuations) （¥100 million） ） (1) Cash flow provided by (2) Cash flow used in (3) Cash flow used in Operating activities +309 Investing activities -162 Financing activities -118 Cash increase ¥2.4 billion Depre
Slide 23: Forecasts for the Year Ending March 31, 2004
Forecasts for the Year Ending March 31, 2004 MOTION & CONTROL 22
Slide 24: Consolidated business forecasts for the year ending March 31, 2004
Consolidated business forecasts for the year ending March 31, 2004 MOTION & CONTROL Year ended Year ending March 31, 2003 March 31, 2004 FY 2002 FY 2003 Y.O.Y (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Net sales 2,607 2,
Slide 25: Summary of Benefits from the 2nd Phase of the NSK Business Restructuring Program
Summary of Benefits from the 2nd Phase of the “NSK Business Restructuring Program” MOTION & CONTROL (Year ended Mar. 31, ‘03) (Year ending Mar. 31, ‘04) (¥ 100 million) FY 2003 FY 2002 Profit Contributions Contributions Profit from activities from activities contributions implemented to be contribut
Slide 26: Operating income: Improvement factors (FY 2002 vs FY 2003 Forecast)
Operating income: Improvement factors (FY 2002 VS FY 2003 Forecast) MOTION & CONTROL (¥100 million) Benefits from the 2nd phase of the “NSK Business Restructuring Program” FY 2003 (Forecast) +13.5 billion yen Benefits from 220 European business +8 restructuring Other activities +9 reduction in expen
Slide 27: Consolidated net sales forecast – By customer location
Consolidated net sales forecast –By customer location– MOTION & CONTROL Year ended Year ending March 31, 2003 March 31, 2004 (¥100 million) FY 2002 FY 2003 Y.O.Y (%) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Total 2,607 2,621 5,228 2,
Slide 28: Consolidated net sales forecast – By business segment
Consolidated net sales forecast –By business segment– MOTION & CONTROL Year ended Year ending March 31, 2003 March 31, 2004 (¥100 million) FY 2002 FY 2003 Y.O.Y (%) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Total 2,607 2, 621 5,228 2,
Slide 29: Consolidated net sales forecast – By geographical segment
Consolidated net sales forecast –By geographical segment– MOTION & CONTROL Year ended March 31, 2003 Year ending March 31, 2004 FY 2002 FY 2003 (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Sales 1,920 2,035 3,955 1,830 1,8
Slide 30: Comparison of the FY 2003 forecast and the NSK Mid-term Business Plan
Comparison of the FY 2003 forecast and the “NSK Mid-term Business Plan” MOTION & CONTROL Mid-term (¥100 million) Forecast 1st half 2nd half Plan Total Sales 4,920 4,920 2,470 2,450 Operating income 230 220 90 130 Bearings Sales 3,256 3,170 1,600 1,570 Operating income 220 200 90 110 Automotive Sales