Slide 1: Nabtesco Corporation February 20, 2025
Securities Code：6268 Nabtesco Corporation February 20, 2025 The forecast data presented herein reflects assumed results based on conditions that are subject to change. Nabtesco Corporation does not make representations as to, or warrant, in whole or in part, the attainment or realization of any of t
Slide 2: Contents
Contents 1. Summary P2 5. FY2025/12 Plan 2. Summary of FY2024/12 result Market Trend Forecast in FY2025/12 P23 FY2024/12 result ｜ YoY P3 Summary of FY2025/12 Forecast ｜YoY P24 FY2024/12 result ｜ Compare to Plan P4 FY2025/12 Forecast ｜ Profit and Loss P25 FY2024/12 result ｜ Balance Sheet P5 6. Append
Slide 3: 1. Summary
1. Summary ■ Sales ：323.4 billion yen (YoY -3.1%) FY2024/12 Result ■ Operating Profit ： 14.8 billion yen (YoY -14.9%) ■Achieved “Payout ratio” and “CO2 emission reduction” Review of targets previous ■Steady implementation of seeding for "innovation MTMP* creation" ■ Completion of ”Project 10” Summar
Slide 4: Summary of FY2024/12 result | YoY
2. Summary of FY2024/12 result ｜ YoY Sales ■Despite TRS and ACB were favorable, total sales decreased due to sluggish 350 Billion yen demand in CMP 330 27.5 1.2 10.5 310 7.9 FOREX 4.3 bn yen Packaging -0.8 bn yen 290 333.6 PRG -25.7 bn yen Hydraulic -1.9 bn yen Railroad 1.8 bn yen 323.4 Aircraft 4.8
Slide 5: Summary of FY2024/12 result | Compare to Plan
2. Summary of FY2024/12 result ｜ Compare to Plan Sales ■Achievement level was differed by segment but almost in-line with plan Billion yen 350 330 0.3 2.6 4.4 1.8 310 PRG -1.6 bn yen FOREX 1.8 bn yen Packaging -1.6 bn yen Railroad 0.3 bn yen Hydraulic 1.2 bn yen Aircraft -2.2 bn yen 290 323.7 Commer
Slide 6: FY2024/12 Result | Balance Sheet
2. FY2024/12 Result ｜Balance Sheet ■Non-current assets increased mainly due to the capital investment for Hamamatsu plant 2023/12 2024/12 (JPY billion) Variation As of December 31, 2023 As of December 31, 2024 Assets 422.1 445.5 23.5 （Cash and cash equivalents） 77.8 74.5 -3.4 （Trade receivable） 82.8
Slide 7: 3. Review of previous MTMP
3. Review of previous MTMP * *MTMP: Medium-Term Management Plan © Nabtesco 6
Slide 8: Previous MTMP | Overview (Target and Actions)
3. Previous MTMP｜Overview（Target and Actions） MTMP MTMP MTMP Vision 2030 2022-2024 2025-2027 2028-2030 Leaders in Innovation for the Future *MTMP: Medium-Term Management Plan Target Result ROIC 10% or over by 2024 3.4%（in 2024） Payout ratio 35% or over during MTMP Average payout ratio during MTMP wa
Slide 9: Previous MTMP | Progress by Business Segment
3. Previous MTMP ｜Progress by Business Segment Segment Forecast Evaluation ■Sales 370.0 Billion yen 333.6 323.4 10.0 × Poor 299.8 308.7 29.0 【Market】 18.5 17.3 Expansion of industrial robot CMP 18.8 18.6 82.5 market 96.3 78.6 106.8 TRS 75.1 CMP 【Sales expansion】 Improve profitability is crucial beca
Slide 10: Issues and Actions toward New MTMP
3. Issues and Actions toward New MTMP Issues Actions ■ Executing Project 10 with continuous actions ・Improve profitability mainly in CMP Improve profitability ・Optimization of fixed costs ・Contribution of new business ■ Evolving to “new motion control” From “seeding” to to meet the need of society “
Slide 11: 4. New MTMP
4. New MTMP * *MTMP: Medium-Term Management Plan © Nabtesco 10
Slide 12: New MTMP | External Environment Analysis
4. New MTMP｜External Environment Analysis Recognition of the External Environment Management Issues • Acceleration of decarbonization Politics • Implementation of suitability related regulation • Meet to product safety standard and tighter Profitability environmental regulation • Adequate price pass
Slide 13: New MTMP | Basic Policy
4. New MTMP ｜Basic Policy Previous Medium-term Management Plan New Medium-term Management Plan Long-term Vision 2022-2024 2025-2027 2028-2030 Leaders in Innovation for the Future 2024-2026 Project10 “Reviving Potential,” “Evolving Excellence” Smart Motion Data Solution Control Reviving our profitabi
Slide 14: New MTMP | Targets
4. New MTMP｜Targets ROIC* 10% or over in FY2027 *ROIC＝（Operating profit*（1－Tax））/（Equity＋Borrowings） Return to shareholders Approx. DOE* 3.5% with stable dividend and share buyback in accordance of financial condition *DOE（Dividend on equity ratio）=Total Dividend Amount / Equity *100 (％) Environment
Slide 15: New MTMP | Numeric Plan; Sales and OP by Business Segment
4. New MTMP ｜Numeric Plan; Sales and OP by Business Segment 2024/12 2025/12 2027/12 (billion yen) Result Plan Reference CMP Sales 110.6 117.8 150.0 Component solutions Operating Profit 4.5 5.7 17.2 segment (OPM) 4.1% 4.8% 11.5% TRS Sales 88.7 95.8 119.0 Transport solutions Operating Profit 12.5 12.6
Slide 16: New MTMP | Project 10 by 2026 Target
4. New MTMP ｜Project 10 by 2026 Target Nabtesco (Consolidated) CMP Component Solutions Segment In-line with our original plan. OPM of CMP increased by 1.3% to 4.1% in 2024 compared with plan due to the effect OPM in 2024 was 4.6% and +0.6% of progress of price pass-through and cost reduction ①Margin
Slide 17: New MTMP | Smart Motion Control
4. New MTMP ｜Smart Motion Control Evolving from “Passive component” based on mechanical strengths to “Active system/integration” Create more value by Electrification, Integration and Data solution Realize “Smart Motion Control” by own R&D and open innovation activities Each business unit is cur
Slide 18: Example of Smart Motion Control (Marine Vessel Equipment)
4. Example of Smart Motion Control（Marine Vessel Equipment） ■Launch ”TELEGRAPH AGENT™” and “HyperPilot™” to promote data solution of smart motion control Market for automated operational systems Bridge Internet Data Solution Operational system market (incl. Auto pilot and others) 600 billion yen Rou
Slide 19: New MTMP | Basic Approach to Portfolio Management
4. New MTMP｜Basic Approach to Portfolio Management Previous MTMP New MTMP MTMP Vision 2030 2022-2024 2025-2027 2028-2030 Leaders in Innovation for the 2024-2026 Project10 Future 1. Financial evaluation: 1. Financial evaluation: Capital efficiency (ROIC) + Sales growth rate Capital efficiency (ROIC)
Slide 20: New MTMP | Business Portfolio
4. New MTMP｜Business Portfolio ■Profitability of each segment will improve to exceed hurdle rate during MTMP Target to build a resilient business foundation with stability and growth by optimization of portfolio balance Direction of improvement Business Actions for improvement Growth Profitability C
Slide 21: New MTMP | TO BE of Portfolio
4. New MTMP｜TO BE of Portfolio ■Toward further growth by improving profitability by execution of Project 10 and realization of smart motion control ■Targeting to reduce number of negative EVA business unit less than 1/5 compare to FY2023 Maintenance and Growth driver improvement of profitability MFR
Slide 22: New MTMP | Cash Allocation
4. New MTMP ｜Cash Allocation ■Mainly use cash for R&D to enhance our intangible asset to realize smart motion control during new medium-term management plan Medium-term Management Plan(2025-2027） Investment M&A and others for growth Shareholder return Approx. DOE 3.5% Approx. 30 billion ・Stable divi
Slide 23: 5. FY2025/12 Plan
5. FY2025/12 Plan © Nabtesco 22
Slide 24: Market Trend Forecast in FY2025/12
5. Market Trend Forecast in FY2025/12 CMP market will enter a recovery phase, and TRS market will continue strong demand Business Market Trend Forecast Market Trend Precision Reduction Industrial robots inventory level will be normalized Gears Capital expenditure in automobile industry will recover
Slide 25: Summary of FY2025/12 Forecast | YoY
5. Summary of FY2025/12 Forecast ｜YoY Sales ■Sales increase due to the recovery of demand in Precision Reduction Gears and Billion yen demand increase in TRS 340 335 4.8 3.1 7.1 330 FOREX -2.9 billion yen Packaging 2.9 billion yen 7.2 Railroad 1.7 billion yen 325 Aircraft 3.2 billion yen Commercial
Slide 26: FY2025/12 Forecast | Profit and Loss Statement
5. FY2025/12 Forecast ｜ Profit and Loss Statement 2024/12 2025/12 Variation (JPY billion) Full-year result Full-year plan (A) (B) （B-A) Sales 323.4 336.0 12.6 Operating Profit 14.8 18.7 3.9 (OPM) 4.6% 5.6% 1.0pt Financial Income and Cost 0.2 -0.7 -0.9 Equity in earnings of affiliates 0.7 1.7 0.9 Pro
Slide 27: Appendix
Appendix © Nabtesco Nabtesco
Slide 28: Revision for Management Materiality
Revision for Management Materiality Previous Management Materiality New Management Materiality Identification process of materiality Issues Materiality Issues Materiality Achieve the revenue targets Recognition of issues （Business Measure to Measure to strategies and external requirement） improve ou
Slide 29: MTMP | Component Solutions Segment
MTMP｜Component Solutions Segment Sales/Market O.P./Action Action in MTMP/Topics Precision Reduction Gears CMP Segment Precision Reduction Gears Foresee the demand recovery in H2/25, Even though demand recovery was High efficiency production system to expect the sales increase by robot behind our
Slide 30: Order Trend and Production Capacity in Precision Reduction Gears
Order Trend and Production Capacity in Precision Reduction Gears 《 Order Trend in Precision Reduction Gears 》 450 《Production capacity in precision reduction gears》 Globally:1.15million units per year as of FY2024/Q4 5 years 【Utilization ratio】 400 ■Japan (Tsu) Plant : 65％(@890K units/year) ■China P
Slide 31: MTMP | Transport Solutions Segment
MTMP｜Transport Solutions Segment Sales/Market O.P./Action Action in MTMP/Topics Railroad Vehicle Equipment Railroad Vehicle Equipment Expecting Japanese market recovery and TRS Segment Develop markets in Asia and developing expansion of oversea market sales countries Profit increase due to sales
Slide 32: MTMP | Accessibility Solutions Segment
MTMP｜Accessibility Solutions Segment Sales/Market O.P./Action Action in MTMP/Topics Automatic Doors 【For building】 ACB Segment Automatic Doors Sales increase by redevelopment Provide the monitoring service by AD- project for large size of commercial Optimize profitability by LINK（Data solution
Slide 33: MTMP | Manufacturing Solutions Segment
MTMP｜Manufacturing Solutions Segment Sales/Market O.P./Action Action in MTMP/Topics Packaging machines Packaging machine MFR segment Due to backdrop of labor shortage Develop the overseas market mainly and rising labor cost, investment for Europe, the U.S. and China O.P. improvement by providi
Slide 34: Operating Profit Analysis
Operating Profit Analysis FY2023→2024 billion yen 20 1.1 1.7 1.1 15 5.7 1.6 3.0 ・Impairment loss of 10 investment property in 24/Q4 17.4 -1.0 billion yen 14.8 ・Impairment loss of European 5 subsidiary 0.7billion yen 0 2023/12 FOREX Sale change Price pass-through Change in cost R&D One time factors 2
Slide 35: Cash Flow Analysis
Cash Flow Analysis billion yen Operating Cash Flow Investment Cash Flow Free Cash Flow 120 103.5 100 80 67.1 60 38.4 36.3 40 34.2 26.7 20.9 21.0 18.3 20 23.5 13.2 11.2 7.7 0 -2.1 -1.6 -20 -10.7 -20.1 -22.6 -35.1 -28.7 -40 -46.3 -60 2019/12 2020/12 2021/12 2022/12 2023/12 2024/12 2025/12 (Plan) © Nab
Slide 36: Capital Expenditures, R&D Expenses, Depreciation
Capital Expenditures, R&D Expenses, Depreciation ■ Investment for Hamamatsu plant will be saturate. Mainly invest for new products development and environmental investment during MTMP 2023/12 2024/12 Variation 2025/12 2022～2024 2025～2027 (JPY billion) Reult Result Plan Previous MTMP MTMP (B-A) (A) (
Slide 37: Sales by Geographic Segment
Sales by Geographic Segment 2023/12 Results 2024/12 Results Others 0.7% Others 0.6% (2.1 billion yen) (2.2 billion yen) Europe 19.3% Europe 18.0% (59.9 billion yen) (62.3 billion yen) North America 7.8% (26.0 billion yen) 333.6 Japan 52.8% North America 8.1% 323.4 (26.3 billion yen) Japan 49.7% bill
Slide 38: FOREX
FOREX ■Exchange rate 2023/12 2024/12 2025-2027 (yen） Medium-term Result Result management plan USD 141.20 152.24 140.00 RMB 19.91 21.28 19.50 EUR 153.17 164.36 155.00 CHF 157.75 172.70 165.00 ■FOREX sensitivity（This represents the effect to be expected on operating profit if the exchange rate fluctu
Slide 39: Component Solutions Segment (CMP) Transport Solutions Segment (TRS)
Component Solutions Segment （CMP） 138.1 140.6 138.1 Sales（billion yen） 113.8 119.3 109.9 110.6 117.8 107.2 Precision 82.4 77.5 89.7 91.6 Reduction Gears 65.8 55.8 74.7 72.6 54.9 65.9 53.0 Hydraulic 53.4 52.2 54.0 60.6 51.0 Equipment 41.3 46.5 44.6 43.1 27.5 2016/12 2017/12 2018/12 2019/12 2020/12 20
Slide 40: Accessibility Solution Segment (ACB) Manufacturing Solutions Segment (MFR)
Accessibility Solution Segment （ACB） 96.3 106.8 102.0 Sales（billion yen） 80.0 78.6 72.4 76.0 73.7 75.1 64.6 Automatic 106.8 102.0 96.3 Doors 72.4 76.0 80.0 73.7 75.1 78.6 64.6 2016/12 2017/12 2018/12 2019/12 2020/12 2021/12 2022/12 2023/12 2024/12 2025/12 Result Result Result Result Result Result Re
Slide 41: Main Products: Component Solutions Segment (CMP)
Main Products: Component Solutions Segment (CMP) The market share is estimated by Nabtesco Precision Reduction Gears Others No.1 Joints of Medium and Large Size Nabtesco Industrial Robots 60％ Approx. 60％ world market share Hydraulic Equipment Nabtesco ■ Traveling Units for Hydraulic Excavators 25％
Slide 42: Main Products: Transport Solutions Segment (TRS)
Main Products: Transport Solutions Segment (TRS) The market share is estimated by Nabtesco Railroad Vehicle Equipment Others No.1 Approx. 50％ Domestic Market Share Brake Systems Nabtesco 50％ ■Door Operating Systems Others No.1 Nabtesco 60％ Approx. 60％ Domestic Market Share Aircraft Equipment No.1 ■
Slide 43: Main Products: Transport Solutions Segment (TRS)
Main Products: Transport Solutions Segment (TRS) The market share is estimated by Nabtesco Commercial Vehicle Equipment Others ■ Wedge Chambers Nabtesco 75％ No.1 Approx. 75％ Domestic Market Share Others ■ Air Dryers Nabtesco 65％ No.1 Approx. 65％ Domestic Market Share Marine Vessel Equipment Others ■
Slide 44: Main Products: Accessibility and Manufacturing Solutions Segments
Main Products: Accessibility Solutions Segment (ACB) The market share is estimated by Nabtesco Automatic Doors ■Automatic Doors Others No.1 Nabtesco Approx. 60％ 60％ market share for building automatic doors in Japan (top share in the world) Main Customers Automatic Doors for buildings: Major general
Slide 45: © Nabtesco
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