Nsk Ltd. · TSE:6471
Nsk — Q3 FY2024 Earnings Presentation
23 slides from Nsk's earnings presentation, Feb 3, 2025
Slide 1: Consolidated Business Results for the Third Quarter Ended December 31, 2024
NSK Ltd. FINANCIAL CONFERENCE Consolidated Business Results for the Third Quarter Ended December 31, 2024 Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance that are not historical fact February 3,
Slide 2: Contents
Contents 1. Consolidated Business Results for the Third Quarter of the Year Ending March 31, 2025 2. Consolidated Business Forecast for the Year Ending March 31, 2025 (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 3: Consolidated Business Results for the Third Quarter
1. Consolidated Business Results for the Third Quarter of the Year Ending March 31, 2025 2. Consolidated Business Forecast for the Year Ending March 31, 2025 (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 4: Key Points – Consolidated Business Results for FY2024 Q3
Key Points – Consolidated Business Results for FY2024 Q3 (Continuing operations) YOY sales increased and profits decreased. Excluding one-time expenses YOY profits increased. • Volume decreased in real terms excluding impact of forex, etc. • Recorded one-time expense of ¥3.4 billion for structural r
Slide 5: Summary of Consolidated Business Results for FY2024 Q3
Summary of Consolidated Business Results for FY2024 Q3 ✓Despite a decrease in Automotive, sales increased YOY supported by higher Industrial sales and a weaker yen. ✓Gradual recovery in industrial but varies by sector (machine tools up, wind turbines down). ✓Impact of Japanese automakers reducing pr
Slide 6: Operating Income: Factors Behind Change
Operating Income: Factors Behind Change （FY2023 Q3 YTD ⇒ FY2024 Q3 YTD）(Continuing operations) (Billions ✓Began to reap the benefits of our structural reforms. of yen) Effect of exchange rate One-time Volume/ Mix fluctuations expenses Inflation/ Cost Labor cost reductions increase Transfer of increa
Slide 7: Industrial Machinery Business Q3 Result
Industrial Machinery Business Q3 Result (Billions Q3 YTD YOY ■Sales (Ind BRG) ■Sales (Precision) ■O.I. ● O.I.(%) of yen) Increase/ Difference Decrease YOY 96.3 93.4 FY23 FY24 YOY (Effect of 89.9 90.5 90.0 90.5 (Effect of exchange exchange rate rate fluctuations) fluctuations) 17.0 15.3 85.1 85.9 83.
Slide 8: Automotive Business Q3 Result
Automotive Business Q3 Result Q3 YTD YOY ■Sales ■O.I. ● O.I.(%) (Billions Increase/ Difference of yen) FY23 FY24 Decrease YOY 108.0 YOY (Effect of 103.9 101.7 100.5 (Effect of exchange exchange rate 98.7 101.1 rate fluctuations) fluctuations) 94.5 95.2 307.1 300.2 -6.9 -2.2% 90.1 Sales +8.9 -5.2％ Op
Slide 9: FY24 Q3 YTD: Sales by Customer Region
FY24 Q3 YTD: Sales by Customer Region Japan: Gradual recovery in industrial machinery; decline in number of vehicles produced. Americas: Robust demand; promoting sales expansion. Europe: Industrial and Automotive stagnating. China: Recovery in industrial machinery; weak sales of Japanese and Europea
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2025
1. Consolidated Business Results for the Third Quarter of the Year Ending March 31, 2025 2. Consolidated Business Forecast for the Year Ending March 31, 2025 (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2025
Consolidated Business Forecast for the Year Ending March 31, 2025 ✓ The full-year earnings forecast for FY24 remains unchanged from the October announcement. FY24 Q3 YOY Full year Q3 Full year Increase/ Difference (Billions of yen) Actual YTD Forecast Decrease Sales 788.9 596.9 790.0 +1.1 +0.1% Oper
Slide 12: Forecast for FY2024 by Segment
Forecast for FY2024 by Segment Industrial Machinery Business Demand Trends by Sector (NSK forecast） Expect sales to increase from Q3 to Q4 Industrial Machinery FY24 H1 FY24 H2 FY23 FY24 YOY vs vs Bearings FY23 H2 FY24 H1 Full Year Q3 Full year Increase/ Q3 Difference (Billions of yen) Actual YTD For
Slide 13: Status of Structural Reforms / Production Reorganization
Status of Structural Reforms / Production Reorganization Objective Return Europe and E&E segment to the black Cost Reducing labor force by 1,000 Improvement ✓Reduction of approximately 600 by end of FY24 Reduce manufacturing footprint in Europe and maximize efficiency of global manufacturing structu
Slide 14: MTP2026 Toward Improved Profitability
MTP2026 Toward Improved Profitability ⚫ Foster awareness of appropriate value and further transfer increasing costs to sales prices. ⚫ Identify demand trends and respond flexibly in-step with changes in volume and business environment. ⚫ Complete structural reforms and production reorganization to f
Slide 15: (Supplementary Information)
(Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 16: Financial Strategy: Cash Allocation
Supplementary Information : Financial Strategy: Cash Allocation MTP2026 Basic Policy on Financial Strategy Investment for Sustainable Growth Growth with Enhance Managerial Resources Profitability ✓Capital Expenditure ¥280.0 bn/ 5 years E S G ≫Ordinary ≫Expansion Investment ≫New Technology M Investme
Slide 17: Shareholder Returns
Supplementary Information : Shareholder Returns Dividend Plan Remains Unchanged End of year (Plan) ¥17/share (¥2 increase from FY23) Full Year (Plan) ¥34/share (¥4 increase from FY23) Shareholder Return Policy（MTP2026 FY24-26) “Provide Stable Shareholder Returns” ・ Dividend Payout Ratio 30-50％ ・ DOE
Slide 18: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment Due to the classification of the steering business as discontinued operations in FY23 Q1, the figures are shown as continuing operations excluding the steering business. Income from the equity in the joint venture with JIS, which was
Slide 19: Sales by Customer Location
Supplementary Information: Sales by Customer Location Due to the classification of the steering business as discontinued operations in FY23 Q1, the figures are shown as continuing operations excluding the steering business. FY2023 FY2024 YOY (Billions of Increase/ Q1 Q2 Q3 Q3 YTD Full year Q1 Q2 Q3
Slide 20: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet The “Assets and liabilities of disposal groups classified as held for sale” related to the Steering FY23 FY24 Ex. Rate Business are not included in the figures in parentheses from the end of FY24 Q2 because the End of Q4 End of Q3 share transfer
Slide 21: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet FY23 FY24 Due to the classification of the steering business as discontinued operations Ex. Rate End of Q4 End of Q3 in FY23 Q1, the figures are shown as continuing operations 1USD 151.4 158.2 excluding the steering business. 1EUR 163.3 164.9 1CN
Slide 22: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information: Capital Expenditures, Depreciation and Amortisation, R&D Expenses Due to the classification of the steering business as discontinued operations in FY23 Q1, the figures are shown as continuing operations excluding the steering business. FY23 FY24 Full year Q1 Q2 Q3 Full yea
Slide 23: Mission Statement NSK Vision 2026
Mission Statement NSK contributes to a safer, smoother society and helps protect the global environment through its innovative technology integrating Motion & ControlTM. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout