Slide 1: Financial Conference for the Results of the Year Ended March 31, 2005
FINANCIAL CONFERENCE FOR THE RESULTS OF THE YEAR ENDED MARCH 31, 2005 AND FORECASTS FOR THE YEAR ENDING MARCH 31, 2006 Seiichi Asaka President & CEO May 17, 2005 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies
Slide 2: Business Results for the Year Ended March 31, 2005
Business Results for the Year Ended March 31, 2005
Slide 3: Summary of the Consolidated Business Results for FY 2004: Business Environment
Summary of the Consolidated Business Results for FY 2004 Business environment of FY 2004 Demand environment JAPAN - Automotive production-related and capital expenditure-related demand remained strong throughout the year - Demand from the semiconductor and liquid crystal display production equipment
Slide 4: Summary of the Consolidated Business Results for FY 2004: Business Results
Summary of the Consolidated Business Results for FY 2004 Business results for FY 2004 Both sales and operating income posted record highs Sales increased 11%, operating income increased 47% and ordinary income increased 73%, year-on-year Business results by business segment : Industrial Machinery Be
Slide 5: Summary of the Consolidated Business Results for FY 2004
Summary of the Consolidated Business Results for FY 2004 (Year ended Mar. 31, ‘03) (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (amount) Difference (%) (¥100 million) FY ’02 FY ’03 FY ’04 compared to the compared to the <Actual> <Actual> <Actual> previous year previous year Sales 5
Slide 6: Net Sales by Business Segment
Net Sales –By Business Segment – (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (amount) Difference (%) (¥100 million) FY ’03 FY ’04 compared to the compared to the <Actual> <Actual> previous year previous year Sales 5,222 5,810 +588 +11.3% Industrial machinery bearings 1,763 1,855 +
Slide 7: Net Sales by Customer Location
Net Sales –By Customer Location– (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (amount) Difference (%) (¥100 million) FY ’03 FY ’04 compared to the compared to the <Actual> <Actual> previous year previous year Sales 5,222 5,810 +588 +11.3% Japan 2,786 3,103 +317 +11.3% The Americas
Slide 8: Business Results by Business Segment
Business Results –By Business Segment – (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (amount) Difference (%) (¥100 million) FY ’03 FY ’04 compared to the compared to the <Actual> <Actual> previous year previous year Sales 5,222 5,810 +588 +11.3% Industrial machinery bearings 1,763
Slide 9: Operating Income: Improvement Factors
Operating Income: Improvement Factors (FY ’03 VS FY ’04) (¥100 million) Group total FY ‘04 External procurement Others cost 383 reductions +11 Profit contribution +52 attributable to higher sales volume +123 Decline in prices, etc. +160 -47 Effect of 260 FOREX FY ‘03 -10 Others -43 8
Slide 10: Business Results by Geographical Segment
Business Results – By Geographical Segment – (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (amount) Difference (%) (¥100 million) FY ’03 FY ’04 compared to the compared to the <Actual> <Actual> previous year previous year Sales 5,222 5,810 +588 +11.3% Japan 3,918 4,395 +477 +12.2% T
Slide 11: Non-operating Income and Losses, Extraordinary Income and Losses
Non-operating Income and Losses, Extraordinary Income and Losses Non-operating income and losses Extraordinary income and losses Non-operating balance improved, as reductions Extraordinary income arose from the the partial in interest-bearing debts brought about an adoption of a defined contribution
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets (Year ended Mar. 31, ‘03) (Year ended Mar. 31, ‘04) (Year ended Mar. 31, ‘05) Difference (¥100 million) FY 2002 FY 2003 FY 2004 (Compared to FY ’03: Year-end) Year-end Year-end Year-end Assets Current assets 2,857 2,955 2,787 -168 Non- Non-current assets 3,074 3,264 3,499
Slide 13: Inventories and Interest Bearing Debts
Inventories and Interest Bearing Debts Inventories Interest Bearing Debts Higher sales volumes led to increased Interest-bearing debts were reduced both in inventories, but inventory turnover improved. Japan and overseas. (\100 million) (\100 million) Overseas 1.57 Japan 1,200 7.4 4,000 6.6 D/E Rati
Slide 14: Capital Expenditures, Depreciation & Amortization
Capital Expenditures, Depreciation & Amortization Capital expenditures that will support our future growth will be carried out, primarily in Japan and Asia. (¥100 million) FY ‘02 FY ‘03 FY ‘04 Capital expenditures 230 255 369 Japan 120 148 255 Overseas 110 107 114 The Americas 37 28 16 Europe 37 28
Slide 15: Consolidated Cash Flow
Consolidated Cash Flow (¥100 million) FY ‘02 FY ‘03 FY ‘04 Cash flow provided by Operating activities 309 379 579 Cash flow used in Investing activities -162 -170 -316 (Free cash flow) 147 209 263 Cash flow used in Financing activities -118 -207 -461 Effect of foreign exchange rate fluctuations -5 -
Slide 16: Forecasts for the Year Ending March 31, 2006
Forecasts for the Year Ending March 31, 2006
Slide 17: Forecasts for FY 2005
Forecasts for FY 2005 Full year forecast for FY 2005 Sales: ¥610.0 billion Operating income: ¥41.0 billion Ordinary income: ¥37.0 billion Aiming to achieve record sales and profits for the second consecutive year, despite the continued rise of steel prices Forecasted business environment for FY 2005
Slide 18: Key Strategies for FY 2005
Key Strategies for FY 2005 Improve Growth profitability Strategy Continue profitability Capture new demand improvement measures Adhere to capital expenditure schedules that are Industrial Machinery Bearings the foundation of corporate growth strategies Market is expected to grow, but at a slower pac
Slide 19: Forecasts for FY 2005
Forecasts for FY 2005 (¥100 million) FY 2004 FY 2005 1st half 2nd half Full year 1st half 2nd half Full year Difference (amount) (Ended Sep. 30, ‘04) (Ended Mar. 31, ’05) (Ended Mar. 31, ‘05) (Ending Sep. 30, ‘05) (Ending Mar. 31, ’06) (Ending Mar. 31, ‘06) compared to the <Actual> <Actual> <Actual>
Slide 20: Forecasts for FY 2005 by Business Segment
Forecasts for FY 2005 –By Business Segment– (¥100 million) FY 2004 FY 2005 1st half 2nd half Full year 1st half 2nd half Full year Difference (amount) (Ended Sep. 30, ‘04) (Ended Mar. 31, ’05) (Ended Mar. 31, ‘05) (Ending Sep. 30, ‘05) (Ending Mar. 31, ’06) (Ending Mar. 31, ‘06) compared to the <Act
Slide 21: Forecasts for FY 2005 by Customer Location
Forecasts for FY 2005 –By Customer Location– (¥100 million) FY 2004 FY 2005 1st half 2nd half Full year 1st half 2nd half Full year Difference (amount) (Ended Sep. 30, ‘04) (Ended Mar. 31, ’05) (Ended Mar. 31, ‘05) (Ending Sep. 30, ‘05) (Ending Mar. 31, ’06) (Ending Mar. 31, ‘06) compared to the <Ac
Slide 22: Forecasts for FY 2005 by Business Segment
Forecasts for FY 2005 –By Business Segment– (¥100 million) FY 2004 FY 2005 1st half 2nd half Full year 1st half 2nd half Full year Difference (amount) (Ended Sep. 30, ‘04) (Ended Mar. 31, ’05) (Ended Mar. 31, ‘05) (Ending Sep. 30, ‘05) (Ending Mar. 31, ’06) (Ending Mar. 31, ‘06) compared to the <Act
Slide 23: Operating Income: Improvement Factors (FY 2004 vs FY 2005)
Operating Income: Improvement Factors (FY ’04 VS FY ’05) FY ’05 (¥100 million) Group total External (Forecast) procurement cost reductions, 410 etc. Profit Decline in contribution attributable +45 +27 prices, etc. to higher sales volume -45 383 Effect of FOREX FY ’04 -8 Others +105 (Actual) -70 22
Slide 24: Forecasts for FY 2005 by Geographical Segment
Forecasts for FY 2005 –By Geographical Segment– (¥100 million) FY 2004 FY 2005 1st half 2nd half Full year 1st half 2nd half Full year Difference (amount) (Ended Sep. 30, ‘04) (Ended Mar. 31, ’05) (Ended Mar. 31, ‘05) (Ending Sep. 30, ‘05) (Ending Mar. 31, ’06) (Ending Mar. 31, ‘06) compared to the
Slide 25: Reference
Reference (¥100 million) FY 2005 <Forecast> Capital expenditures 400 Japan 268 Overseas 132 The Americas 30 Europe 34 Asia 68 (¥100 million) FY 2005 <Forecast> Depreciation 295 (¥100 million) FY 2005 <Forecast> 24 R&D expenses 110