Nok Corporation · TSE:7240

Nok — FY2016 Earnings Presentation

32 slides from Nok's earnings presentation, May 11, 2017

  1. Slide 1: Financial Results for the Fiscal Year Ended March 31, 2017

    Fiscal Year Financial Results for the Fiscal Year Ended March 31, 2017 NOK CORPORATION (7240 / TSE1) May 11, 2017 Disclaimer  Any plans, targets, forecasts, strategies, policies and opinions relating to NOK CORPORATION or NOK Group companies or other information contained in these materials that ar

  2. Slide 2: Table of Contents

    Table of Contents  Page 4 Financial Results for the Fiscal Year Ended March 31, 2017  Page 12 Medium-Term Management Plan  Page 17 Financial Results by Business Segment for the Fiscal Year Ended March 31, 2017  Page 25 Financial Forecasts by Business Segment for the Fiscal Year Ending March 31,

  3. Slide 3: Market Trend Surrounding the NOK Group and Business Overview

    The Market Trend Surrounding the NOK Group Motor Vehicle Production Smartphone Worldwide Shipments Domestic Export Overseas Production (Millions of units) (Thousands of units) 14,472 13,793 13,635 13,219 824 773 681 9,524 646 8,772 9,052 9,223 2,231 2,352 2,380 2,256 2,216 2,389 2,156 2,568 Apr-Sep

  4. Slide 4: Financial Results for the Fiscal Year Ended March 31, 2017

    Financial Results for the Fiscal Year Ended March 31, 2017 (\ billion) FY2016 Changes FY2015 FY2016 YoY Changes vs. Forecasts Forecasts Revised Actual Actual Forecasts Amount Amount % on Nov. 9 on Apr. 19 on Nov. 9 Net Sales 746.1 713.1 (33.0) (4.4%) 664.0 713.0 49.1 Operating Income 48.3 39.8 (8.5)

  5. Slide 5: Financial Forecasts for the Fiscal Year Ending March 31, 2018

    Financial Forecasts for the Fiscal Year Ending March 31, 2018 (\ billion) FY2016 FY2017 YoY Changes Actual Forecasts Full Year 1H Full Year Amount % Net Sales 713.1 343.0 705.0 (8.1) (1.1%) Operating Income 39.8 15.5 40.0 0.2 0.6% Ordinary Income 45.7 18.0 46.0 0.3 0.6% Profit Attributable to Owners

  6. Slide 6: Dividend for the Fiscal Year Ended March 31, 2017

    Dividend for the Fiscal Year Ended March 31, 2017 FY2015 (plan) ¥50 ¥50 ¥50 ¥50 Annual Dividend Payout Ratio 50.0 ¥50 28.7% FY2016 Annual Dividend Payout Ratio ¥50 31.6% ¥20 ¥20 20.0 ¥15 15.0 FY2017 (plan) Annual Dividend Payout Ratio ¥50 30.8% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Copyri

  7. Slide 7: Previous Three-year Plan (FY2014-FY2016)

    Previous Three-year Plan (FY2014-FY2016) Previous Three-year Plan (FY2014-FY2016) Slogan Building Foundations for Sustainable Growth - Strengthen existing businesses and develop new products and new businesses Initiatives 1. Reviewing MONOZUKURI, the framework of manufacturing 2. Continuing to striv

  8. Slide 8: New Three-year Plan (FY2017-FY2019)

    New Three-year Plan (FY2017-FY2019) New Three-year Plan (FY2017-FY2019) Slogan Reinforcing Business Structure for Sustainable Growth Initiatives 1. Building well-balanced customer mix － Targeting sales expansion and new business creation 2. Achieving sustainable unrivalled quality 3. Establishing pr

  9. Slide 9: Financial Results by Business Segment for FY Ended March 31, 2017

    Financial Results by Business Segment for the Fiscal Year Ended March 31, 2017 Financial Results by Business Segment for the Fiscal Year Ended March 31, 2017 (\ billion) YoY Changes FY2016 Changes FY2015 FY2016 vs. Forecasts Actual Actual Forecasts(*) Amount Amount % Seal Net Sales 296.2 310.6 14.4

  10. Slide 10: Seal Business: Financial Results

    Seal Business: Financial Results [vs. FY2015] [Operating [Net Sales] Net Sales Operating Income Margin Income] FY2016 Results Operating Income (1H) Operating Income (2H) 400.0 60.0 Net Sales ¥310.6 bn (+¥14.4 bn YoY) 296.2 310.6  Demand in Japan recovered. 300.0 45.0  Demand in North America, Chin

  11. Slide 11: Electronic Device Product Business: Financial Results

    Electronic Device Product Business: Financial Results [vs. FY2015] (¥ billion) [Operating [Net Sales] Net Sales Operating Income Margin Income] FY2016 Results 600.0 Operating Income (1H) Operating Income (2H) 30.0 409.7 Net Sales ¥366.8 bn (- ¥42.9 bn YoY) 366.8 400.0 20.0  Sales for smartphones de

  12. Slide 12: Roll Business: Financial Results

    Roll Business: Financial Results [vs. FY2015] (¥ billion) [Operating [Net Sales] Net Sales Operating Income Margin Income] FY2016 Results 40.0 Operating Income (1H) Operating Income (2H) 3.0 Net Sales ¥22.6 bn (- ¥5.0 bn YoY) 30.0 27.6  Demand for printers declined. 2.0 22.6 20.0 Operating Income ¥

  13. Slide 13: Financial Forecasts by Business Segment for FY Ending March 31, 2018

    Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2018 Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2018 (\ billion) FY2016 FY2017 YoY Changes Actual Forecasts Full year 1H Full year Amount % Seal Net Sales 310.6 152.7 312.0 1.4 0.5% Busines

  14. Slide 14: Seal Business: Financial Forecasts

    Seal Business: Financial Forecasts [vs. FY2016] (¥ billion) [Operating [Net Sales] Net Sales Operating Income Margin Income] FY2017 Forecasts 400.0 Operating Income (1H) Operating Income (2H) 60.0 Net Sales ¥312.0 bn (+¥1.4 bn YoY) 310.6 312.0  Automobile demand in Japan and North America is 300.0

  15. Slide 15: Electronic Components Business: Financial Forecasts

    Electronic Components Business: Financial Forecasts [vs. FY2016] (¥ billion) [Operating Income] [Net Sales] Net Sales Operating Income Margin FY2017 Forecasts 600.0 Operating Income (1H) Operating Income (2H) 30.0 Net Sales ¥360.0 bn (- ¥6.8 bn YoY) 366.8 360.0  Growth in the high-end smartphone ma

  16. Slide 16: Roll Business: Financial Forecasts

    Roll Business: Financial Forecasts [vs. FY2016] (¥ billion) [Operating Income] [Net Sales] Net Sales Operating Income Margin FY2017 Forecasts 40.0 Operating Income (1H) Operating Income (2H) 3.0 Net Sales ¥21.4 bn (- ¥1.2 bn YoY)  Growth in the office machinery market is expected to 30.0 slow. 2.0

  17. Slide 17: Business Overview by Industry and by Region

    Copyright (c) NOK CORPORATION All rights reserved. 33 Business Overview by Industry and by Region

  18. Slide 18: Consolidated Net Sales Trend by Industry and Region

    Consolidated Net Sales Trend by Industry (by Quarter) Net Sales by Industry (¥ billion) Automotive Industry (AI) Electronic Industry (EI) General Industry (GI) 250.0 207.5 209.7 199.4 200.0 24.1 23.4 187.9 176.1 23.1 178.7 22.8 24.7 152.9 147.1 23.9 150.0 23.0 23.8 114.0 116.0 100.0 93.3 76.7 85.1 1

  19. Slide 19: Net Sales Trend for Seal Business by Region

    Net Sales Trend for Seal Business by Region (by Quarter) Seal Business: Net Sales by Region (¥ billion) Japan China Other Asia Other 100.0 79.8 81.7 80.0 72.9 73.7 75.0 74.6 74.1 75.0 2.2 2.7 1.9 2.2 2.3 2.8 2.6 2.3 9.6 10.4 10.0 10.9 10.1 10.2 9.8 9.1 60.0 11.5 11.7 11.1 10.0 9.8 9.7 10.3 9.3 40.0

  20. Slide 20: Net Sales Trend for Electronic Components Business by Region

    Net Sales Trend for Electronic Components Business by Region (by Quarter) Electronic Product Business: Net Sales by Region (¥ billion) Japan China Other Asia Other 150.0 123.4 124.7 4.4 3.8 110.8 19.2 103.9 5.5 25.2 100.0 92.7 5.7 18.2 88.7 4.4 18.8 6.4 20.1 68.9 63.4 18.2 4.5 68.0 78.9 6.1 15.4 63.

  21. Slide 21: Trend of Capital Investment and Depreciation by Region

    Trend of Capital Investment by Region (by Half Year) Capital Investment (¥ billion) Japan China Other Asia Europe / the U.S. 42.2 0.4 40.0 34.8 35.9 0.2 0.2 12.3 29.3 30.0 26.6 9.4 0.4 23.6 16.7 1.0 8.2 11.0 6.1 0.4 20.0 12.9 6.5 7.1 8.6 4.0 7.8 10.0 18.5 13.3 13.6 12.7 10.1 11.0 0.0 1H 2H 1H 2H 1H

  22. Slide 22: Copyright (c) NOK CORPORATION All rights reserved.

    Copyright (c) NOK CORPORATION All rights reserved. 43

  23. Slide 23: Corporate History and Global Deployment

    Corporate History 1939 Edogawa Seiki Co., Ltd. founded 1976 Subsidiary NOK KLUEBER CO., LTD. 1995 Subsidiary Wuxi NOK-Freudenberg 1941 Japan Bearing Production Co., Ltd. established Oilseal Co., Ltd. established in China founded in Kobe. 1978 Equity stake taken in Pyung Hwa Oil 1996 Subsidiary named

  24. Slide 24: NOK Group Strengths and R&D

    NOK Group Strengths NOK Group companies make up a “Group of Compound Technology Manufacturers” like one firm connected to each division, an enterprise group sharing core technologies. Each company boasts its individual strengths while sharing a common vision, and conducts business operations to hand

  25. Slide 25: NOK Major Products: Oil Seals and FPCs

    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

  26. Slide 26: NOK Products in Automobiles: Motor Vehicle Production

    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. 51 Market Trends by Sector: Motor Vehicle Production (by Half Year, Fiscal Year) Motor Vehicle Production (Thousands of units) Domestic Export Overseas Production 15,000 14,472 14,200 13,793 13,635 13,90

  27. Slide 27: General Industrial Machinery: Construction Machinery Production

    NOK Products in General Industrial Machinery Copyright (c) NOK CORPORATION All rights reserved. 53 Market Trends by Sector: Construction Machinery Domestic Production (by Half Year, Fiscal Year) Construction Machinery Domestic Production (Units) 100,000 80,000 60,000 57,852 58,000 60,000 52,906 54,1

  28. Slide 28: IT Electronic Devices: Mobile Phone Shipments

    NOK Products in IT Electronic Devices Boasting the top global share of flexible printed circuits (FPCs), these are used in a wide range of advanced electronic devices. Also, multi-layer flexible printed circuits (Flex- Boards) made with advanced technology is indispensable for the miniaturization an

  29. Slide 29: Hard Disk Drive and Digital Camera Production

    Market Trends by Sector: Hard Disk Drives Worldwide Production (by Half Year, Calendar Year) Hard Disk Drives Worldwide Production (Millions of units) 500 400 300 200 235 233 227 201 184 192 100 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec CY2015 CY2015 CY2016 CY2016 CY2017 CY2017 (Forecast) (F

  30. Slide 30: Tablet PC Shipments and FPCs in Automobiles

    Market Trends by Sector: Tablet PC Worldwide Shipments (by Half Year, Calendar Year) Tablet PC Worldwide Shipments (Millions of units) 150 120 114 90 94 95 88 86 80 60 30 0 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec CY2015 CY2015 CY2016 CY2016 CY2017 CY2017 (Forecast) (Forecast) Source: Estimat

  31. Slide 31: Segment Information: FY2016 Results and FY2017 Forecasts

    11, May 2017 Segment Information: Fiscal Year 2016 Results and Fiscal Year 2017 Forecasts NOK Corporation （Millions of yen) FY2015 FY2016 (Results) FY2017 (Forecasts) (Results) Segment Year-on-Year Changes Year-on-Year Year-on-Year Changes FY2015 1H 2H FY2016 Amount 1H Changes※ FY2017 Amount % % Ext

  32. Slide 32: Contact: NOK Corporation

    Copyright (c) NOK CORPORATION All rights reserved. 61 Contact: NOK CORPORATION CORPORATE PLANNING OFFICE CORPORATE COMMUNICATION DEPT. Phone: +81-3-3434-1736 E-mail: ssato@nok.co.jp HP: http://www.nok.co.jp/e/ Copyright (c) NOK CORPORATION All rights reserved.

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