Slide 1: Financial Conference
Financial Conference May 16, 2008 NSK Ltd. 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 are forward-looking statements. NSK cautions that a number of factors could
Slide 2: Contents
Contents １ Consolidated Business Results for the Year Ended March 31, 2008 ２ Consolidated Business Forecasts for the Year Ending March 31, 2009 ３ Key Strategies for the Final Year of Mid-term Plan (FY’06-FY’08) (Supplementary Information) 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2008
１ Consolidated Business Results for the Year Ended March 31, 2008 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2008
Summary of Consolidated Business Results for the Year Ended March 31, 2008 Business Environment 『Demand remained robust overall』 Industrial machinery： Capital expenditure related to steelmaking equipment, machine tools and construction machinery sectors, and sales in wind power generators sector wer
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2008
Summary of Consolidated Business Results for the Year Ended March 31, 2008 （100 Million） 07/3 08/3 Increase/ Difference 08/3 decrease ＜Forecast revised in ＜Actual＞ ＜Actual＞ YOY YOY 07＞ Nov. ‘07＞ Sales 7,172 7,720 +548 +7.6% 7,600 Operating income 624 693 +69 +11.2% 690 ＜%＞ ＜8.7%＞ ＜9.0%＞ <9.1%> Ordin
Slide 6: Business Results by Business Segment
Business Results by Business Segment （¥100 Million） 07/3 08/3 Increase/ Difference 08/3 decrease ＜Actual＞ ＜Actual＞ YOY ＜Forecast revised in Nov. ‘07＞ 07＞ YOY Sales 7,172 7,720 +548 +7.6% 7,600 Industrial bearings 2,163 2,391 +228 +10.5% 2,360 Automotive products 3,979 4,357 +378 +9.5% 4,290 Precisio
Slide 7: Business Results by Business Segment - Industrial Machinery Bearings
Business Results by Business Segment - Industrial Machinery Bearings （¥100 Million） Sales Sales （¥100 Million） Operating Income/Margin Operating Income/Margin 3000 500 14.0% 2,391 13.7% 2500 2,163 +10.5% 400 335 296 +13.3% 2000 300 1500 200 1000 100 500 0 0 07/3 08/3 07/3 08/3 ■Sales increased ■Sale
Slide 8: Business Results by Business Segment - Automotive Products
Business Results by Business Segment - Automotive Products （¥100 Million） Sales Sales （¥100 Million） Operating Income/Margin Operating Income/Margin 5000 4,357 500 7.0% 3,979 4000 +9.5% 400 5.7% 307 3000 300 +35.1% 227 2000 200 1000 100 0 0 07/3 08/3 07/3 08/3 ■ In Japan, ■In Japan,thetheeffect effe
Slide 9: Business Results by Business Segment - Precision Machinery and Parts
Business Results by Business Segment - Precision Machinery and Parts （¥100 Million） Sales Sales （¥100 Million） Operating Income/Margin Operating Income/Margin 1000 200 777 14.8% 800 682 12.6% -12.3% 150 115 600 86 100 -25.3% 400 50 200 0 0 07/3 08/3 07/3 08/3 ■ ■ Sales Salesdecreased decreased12.3%
Slide 10: Operating Income: Improvement Factors
Operating Income: Improvement Factors (07/3 ⇒ 08/3) (¥100 Million） 08/3 Effect of YOY increase of External exchange rate fluctuations ¥693 procurement cost +¥69 reduction etc. +13 Profit contribution attributable to +44 ¥624 Decline in sales prices higher sales volume 07/3 -41 Increase in other cost
Slide 11: Business Results by Geographical Segment
Business Results by Geographical Segment （¥100 Million） 07/3 08/3 Increase/ Difference 08/3 Decrease ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ YOY ＜Forecast revised in Nov. ‘07＞ 07＞ YOY Sales 7,172 7,720 +548 +7.6% 7,600 Japan 5,223 5,580 +357 +6.8% 5,405 The Americas 1,029 1,060 +31 +3.0% 1,075 Europe 1,27
Slide 12: Business Results by Geographical Segment
Business Results by Geographical Segment Japan Operating income decreased 1.2% YOY due to a decline in sales prices, prices, The Americas Operating income increased 27.9% YOY backed by an increase in an increase in depreciation due to an amendment to the Japanese Corporate Tax Law and selling, gener
Slide 13: Business Results by Customer Location
Business Results by Customer Location （¥100 Million） Sales 9,000 Japan The Americas Europe Asia 8,000 7,720 Asia: Sales in China were strong and sales to 7,172 automotive manufacturers increased in Thailand, while sales of photofabrication equipment for LCD 7,000 1,419 color filter production decrea
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets Assets Liabilities and Net Assets （¥100 Million) Net assets Non- Non-current liabilities （¥100 Million) Ratio of net worth to total Non- Non-current assets Current assets Current liabilities capital Change YOY Change YOY 10000 10000 8,158 8,286 （ +128 ） 8,158 8,286 （+128）
Slide 15: Inventory/ Interest-Bearing Debts/ Capital Expenditure/ Depreciation
Inventory/ Interest-Bearing Debts/ Capital Expenditure/ Depreciation Inventory （¥100 Million） Capital Expenditure （¥100 Million） 1800 Japan Non- Non-Japan Inventory turnover 600 Japan Non- Non-Japan 520 7.5 473 1500 6.9 7.0 500 362 212 1200 1,013 1,050 1,018 400 164 900 300 128 543 587 546 600 200 3
Slide 16: Consolidated Business Forecasts for the Year Ending March 31, 2009
Consolidated Business Forecasts 2 for the Year Ending March 31, 2009
Slide 17: Forecast for the Year Ending March 31, 2009
Forecast for the Year Ending March 31, 2009 Business Forecast Aim for record sales and profits for five consecutive years Sales ¥800.0 billion （increase 3.6% YOY） Operating income ¥71.0 billion （increase 2.4% YOY) Ordinary income ¥67.0 billion （increase 3.3% YOY） Net income ¥44.0 billion （increase 3
Slide 18: Forecast for the Year Ending March 31, 2009
Forecast for the Year Ending March 31, 2009 （¥100 Million） 08/3 09/3 Increase/ Difference 1st half 2nd half Full year 1st half 2nd half Full year decrease YOY YOY ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ Sales 3,693 4,027 7,720
Slide 19: Forecast by Business Segment
Forecast by Business Segment （¥100 Million） 08/3 09/3 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year decrease Difference YOY ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ YOY Sales 3,693 4,027 7,720 3,800 4,200 8,
Slide 20: Forecast for Operating Income: Improvement Factors
Forecast for Operating Income: Improvement Factors (08/3 ⇒ 09/3) （¥100 Million） 09/3 Forecast External YOY increase of procurement cost reduction etc. ¥710 ¥17 ¥693 Decline in sales prices Profit contribution attributable to higher +40 sales volume 08/3 -40 Effect of exchange rate fluctuations -70 I
Slide 21: Forecast by Geographical Segment
Forecast by Geographical Segment （¥100 Million） 08/3 09/3 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year decrease Difference YOY ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ YOY Sales 3,693 4,027 7,720 3,800 4,20
Slide 22: Forecast by Customer Location
Forecast by Customer Location （¥100 Million） 08/3 09/3 1st half 2nd half Full year 1st half 2nd half Full year Increase/ Difference ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Forecast＞ Forecast＞ ＜Forecast＞ Forecast＞ Forecast＞ decrease ＜Forecast＞ YOY YOY Sales 3,693 4,027 7,720 3,800 4,200 8
Slide 23: Key Strategies for the Final Year of Mid-term Plan (FY'06-FY'08)
3 Key Strategies for the Final Year of Mid-term Plan (FY’06-FY’08)
Slide 24: Summary of Mid-term Plan (FY'06-FY'08)
Summary of Mid-term Plan 《Mid-term Plan (FY’06-FY’08)》 Outline Numerical target Targets (FY’08) Mid-term Vision Announced in 『To Become No.1 in Total Quality』 Feb. 2006 ◆ Sales ¥740.0 billion Strengthen: ◆ Operating income Manufacturing Capability ¥74.0 billion Growth Improve ◆ Operating income Prod
Slide 25: Numerical Targets for the Final Year of Mid-term Plan (FY'08)
Numerical Targets for the Final Year of Mid-term Plan (FY’08) （¥100 Million） Business performance 0.73 Mid-term 0.69 Forecast Plan 0.56 0.50 Net D/E ratio 0.40 Sales 7,400 8,000 16.1% ROE 15.5% 15.0% Operating 14.0% 740 710 income 12.1% Ordinary Operating income margin 10.0% 715 670 （¥100 Million） M
Slide 26: Business Performance by Business Segment
Business Performance by Business Segment Sales Operating income/margin Mid-term Plan ’06～’08 Mid-term Plan ’06～’08 14.8% 14.6% （¥100 Million） Million） 14.0% 14.1% 8,000 Industrial bearings 8,000 7,720 280 7,400 11.3% 14.0% 7,172 290 740 130 13.7% 12.6% 13.5% 10.0% 7,000 253 682 750 Precision machine
Slide 27: Key Strategies for the Year ending March 31, 2009
Key Strategies for the Year ending March 31, 2009 - Key Strategies - Absorb cost-push ・Take action to respond to steel price pressure by increasing sales price factors ・Reduce internal costs Respond quickly to ・Share sales fluctuation information and take actions to respond changes in business envir
Slide 28: Key Strategies - Industrial Machinery Bearings
Key Strategies - Industrial Machinery Bearings Basic Policy: Expand sales by strengthening our marketing and manufacturing capabilities Steadily reinforce global expansion ① Expand sales of roller bearings ◆Robust infrastructure-related demand continues Sales of roller bearings（Index: Sales in 06/3=
Slide 29: Key Strategies - Industrial Machinery Bearings
Key Strategies - Industrial Machinery Bearings ② Expand aftermarket sales ③ Strengthen roller bearing productivity Aftermarket Sales Increase Aftermarket Electrical/IT equipment ◆Make the most of Fujisawa No.2 Plant 2,550 General Industry machinery 2,391 06/3 vs. 09/3 ・Start operation in January ’08
Slide 30: Key Strategies - Automotive Products
Key Strategies - Automotive Products Basic Policy: Reinforce Profitability and Order-Winning Activities Business results for FY’08 are expected to be negatively affected by cost increases due to ① Enhance profitability steadily external factors, although profitability continued to be improve. Accele
Slide 31: Key Strategies - Automotive Products
Key Strategies - Automotive Products ② Strengthen Order-Winning Activities and Improve Foundation for Further Growth ☆Reinforce capability to respond to global ☆Promote global development of EPS business ☆Expand sales to customers in overseas 2nd building in EPS plant, Poland (’ (’08) regions 2nd st
Slide 32: Key Strategies - Precision Machinery and Parts
Key Strategies - Precision Machinery and Parts Basic Policy: Improve Profitability by Emphasizing Linear Motion Products ① Strengthen profit foundation ② Establish corporate structure that can withstand demand fluctuationscan withstand demand fluctuations Streamline operations ・Proceed with 2nd stag
Slide 33: (Supplementary Information) - For the Year Ending March 31, 2009
(Supplementary Information) - For the Year Ending March 31, 2009 （¥100 Million） 08/3 09/3 Actual Forecast (Full year) Capital expenditure（＊） 520 450 Japan 308 293 Non-Japan 212 157 The Americas 38 27 Europe 77 37 Asia 97 93 ＊Excluding intangible assets （¥100 Million） 08/3 09/3 Actual Forecast (Full
Slide 34: (Supplementary Information) - Mid-term Target by Business Segment
(Supplementary Information) - Mid-term Target by Business Segment Mid- Mid-term Plan ’06- 06-’08 Target announced in Feb. ‘06 （¥100 Million） Million） 06/3 Actual 07/3 Actual 08/3 Actual 09/3 Forecast 09/3 Mid- Mid-term target Industrial bearings Sales 1,956 2,163 2,391 2,550 2,300 Operating income＜%
Slide 35: (Supplementary Information) - Mid-term Target for Profitability Enhancement
(Supplementary Information) - Mid-term Target for Profitability Enhancement Target announced Mid- Mid-term Plan ’06- 06-’08 in Feb. ‘06 06/3 07/3 08/3 09/3 09/3 （¥100 Million） Actual Actual Actual Forecast Plan Operating income margin 6.8% 8.7% 9.0% 8.9% 10% ROE 12.1% 14.0% 16.1% 15.5% 15% Capital E