Slide 1: Consolidated Business Results for Fiscal 2022
NSK Ltd. Consolidated Business Results for Fiscal 2022 Cautionary Statement with Respect to Forward-Looking Statements May 12, 2023 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
Slide 2: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2023 2. Consolidated Business Forecast for the Year Ending March 31, 2024 3. Management Tasks in Mid-Term Management Plan (MTP2026) (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 3: 1. Consolidated Business Results for the Year Ended March 31, 2023
1. Consolidated Business Results for the Year Ended March 31, 2023 2. Consolidated Business Forecast for the Year Ending March 31, 2024 3. Management Tasks in Mid-Term Management Plan (MTP2026) (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2023
Summary of Consolidated Business Results for the Year Ended March 31, 2023 ✓Business Environment: ・Ongoing shortage of components such as semiconductors ・Economic turmoil due to China’s Zero-Covid policy ・Prolonged impact of Russia-Ukraine crisis and increased inflation ・Unstable exchange rates ≫Sal
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2023 (continued)
Summary of Consolidated Business Results for the Year Ended March 31, 2023 ✓Volume in FY2022 decreased in constant-terms basis, excluding the effect of exchange rate fluctuations and transfer of increased costs to sales prices ✓Sales and profits in Q4 increased QOQ due to sales price adjustments tak
Slide 6: Operating Income: Factors Behind Change (FY2021 to FY2022)
Operating Income: Factors Behind Change （FY2021 Full year ⇒ FY2022 Full year） (Billions Effect of ✔Inflation (steel cost, shipping cost, electricity cost) -34.2 exchange of yen) ✔Transfer of increased costs to sales prices rate Equity method and decrease in sales price +36.8 fluctuations profits etc
Slide 7: Industrial Machinery Business
Industrial Machinery Business (Billions of yen) ■Ind BRG ■Precision ■S.I ● S.I(%) Increase/ Difference FY2021 FY2022 100.1 96.3 Full year Full year Decrease YOY YOY (Excluding 95.2 95.3 93.4 Actual Actual (Effect of exchange effect of exchange 88.3 rate fluctuations) rate fluctuations) 84.1 84.7 19.
Slide 8: Automotive Business
Automotive Business (Billions of yen) ■Auto BRG ■Auto Comp ■S.I ● S.I(%) FY2021 FY2022 Increase/ Difference 136.4 136.5 Full year Full year Decrease YOY (Excluding 131.1 129.6 131.8 YOY (Effect of exchange effect of 121.7 Actual Actual exchange rate fluctuations) rate fluctuations) 119.1 115.9 112.2
Slide 9: 2. Consolidated Business Forecast for the Year Ending March 31, 2024
1. Consolidated Business Results for the Year Ended March 31, 2023 2. Consolidated Business Forecast for the Year Ending March 31, 2024 3. Management Tasks in Mid-Term Management Plan (MTP2026) (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2024
Consolidated Business Forecast for the Year Ending March 31, 2024 ✓Forecast assumptions ≫Alleviation of supply chain issues including shortage of semiconductors ≫Industrial Machinery Business: Adjustment in machine tools and semiconductor manufacturing equipment sectors in 1st half and moderate reco
Slide 11: Forecast for FY2023 by Segment
Forecast for FY2023 by Segment Industrial Machinery Business Automotive Business FY2022 FY2023 YOY FY2022 FY2023 YOY Full year Full year Increase/ Full year Full year Increase/ Difference Decrease Difference Actual Forecast Decrease Actual Forecast Sales 385.1 377.5 -7.6 -2.0% Sales 520.7 580.0 +59.
Slide 12: Operating Income: Factors Behind Change (FY2022 to FY2023 Forecast)
Operating Income: Factors Behind Change （FY2022 Full Year Actual ⇒ FY2023 Full Year Forecast） (Billions Transfer of of yen) increased Increase/ Steering costs Decrease in Business to sales prices costs Effect of Reforms Inflation/ exchange rate Labor cost fluctuations Equity Volume/ Mix increase met
Slide 13: Management Tasks in FY2023
Management Tasks in FY2023 ✓ Respond to inflation and labor cost increase ≫ Continue to transfer to sales prices increased costs such as steel prices, equipment and energy ≫ Aim to offset increasing labor costs through cost reductions and transfer of increased costs to sales prices ✓Prepare for risk
Slide 14: 3. Management Tasks in Mid-Term Management Plan (MTP2026)
1. Consolidated Business Results for the Year Ended March 31, 2023 2. Consolidated Business Forecast for the Year Ending March 31, 2024 3. Management Tasks in Mid-Term Management Plan (MTP2026) (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 15: Change of Business Environment in MTP2026
Change of Business Environment in MTP2026 ✓Changing Business Environment Slow recovery in volume of automotive production due to semiconductor shortages, slower economic growth in China, US-China friction (nationalism), expansion of inflation, increasing risk of slowdown in economic growth due to mo
Slide 16: Mid-Term Initiatives Toward 10% ROE and Higher PBR
Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓Growth with Profitability: Rebuild Business Foundation to Focus on Bearings and Precision Products to Achieve Operating Income Above 10% ≫ Reflect inflation costs in sales prices ≫ Improve asset efficiency and profitability on downwardly revised as
Slide 17: Growth with Profitability - Industrial Machinery Business
Growth with Profitability －Industrial Machinery Business－ ✓Aim to be 50% of sales by continuing strategies focusing on electrification, automation, digitalization and global push to reduce environmental impact ✓Strengthen supply capacity and enhance technical service systems ≫ FY26 targets: Sales of
Slide 18: Growth with Profitability - Automotive Business (excl. Steering Business)
Growth with Profitability －Automotive Business (excl. Steering Business)－ ✓Accelerate production restructuring due to downward revision of automotive production volume assumption in MTP2026 ✓Developing new customers’ in EVs and receiving orders for electrification are proceeding as planned ≫ FY26 ta
Slide 19: Growth with Profitability - Steering Business
Growth with Profitability - Steering Business - ✓Terminated joint venture discussion with thyssenkrupp AG and signed joint venture agreement with Japan Industrial Solutions III Investment Limited Partnership (JIS) ✓Plan to change status of NSK Steering & Control, Inc., a subsidiary of the Company, t
Slide 20: MTP2026 Shareholder Return Policy and Progress
MTP2026 Shareholder Return Policy and Progress Policy Progress Continue stable shareholder returns - Payout ratio: 30-50% ≫ FY22 actual cash dividends per share ¥30 - Total return ratio: approx. 50％ ≫ FY22 actual dividend payout ratio 83.6％ - Buybacks: flexibly implemented ≫ FY23 planned cash divide
Slide 21: ESG Management and Enhancement of Managerial Resources
ESG Management and Enhancement of Managerial Resources ✓ESG Management ”Create” Reduce CO2 emissions from business FY22 -40％(estimate) (FY26 target: -50%) activities (Scope1 + 2 compared to FY17) Environment ”Utilize” FY22 Reduce CO2 emissions through utilization of our products 2.4 million tons(est
Slide 22: (Supplementary Information)
（Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 23: Financial Results by Business Segment (FY2022)
Supplementary Information : Financial Results by Business Segment (FY2022) (Billions of yen) FY2021 FY2022 YOY Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Difference Decrease Total Sales 417.8 447.4 865.2 463.8 474.3 938.1 +72.9 +8.4% Segment Income 16.2 12.5 28.8 14.6 20.3 34.
Slide 24: Financial Results by Business Segment (FY2023 Forecast)
Supplementary Information : Financial Results by Business Segment (FY2023 Forecast) (Billions of yen) FY2022 Actual FY2023 Forecast YOY Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Difference Decrease Total Sales 463.8 474.3 938.1 476.0 514.0 990.0 +51.9 +5.5% Segment Income 14.
Slide 25: Sales by Customer Location
Supplementary Information : Sales by Customer Location FY2021 FY2022 YOY (Billions of Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Difference yen) Decrease Sales 417.8 447.4 865.2 463.8 474.3 938.1 +72.9 +8.4% Japan 156.8 160.8 317.6 153.4 157.4 310.7 -6.9 -2.2% Non-Japan 261.0
Slide 26: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Assets Liabilities / Total equity (Billions (Billions of yen) of yen) -1.3 -1.3 1234.6 1234.6 1233.3 1233.3 297.0 +10.3 307.3 Current 569.9 liabilities +17.8 587.7 Current assets 300.1 Non-Current -8.9 291.2 liabilities Ratio of equity attributab
Slide 27: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt Inventories Interest-bearing debt (Billions Inventory (Billions Net D/E ratio of yen) turnover of yen) 0.27 0.29 5.0 4.8 +1.0 +32.3 335.7 196.7 197.8 303.5 +6.2 72.7 Non-Japan 66.5 -1.6 Non-Japan 123.1 121.5 Japan +26.1 263.0 237.0 Japan
Slide 28: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses FY2021 FY2022 FY2023 Actual Actual Forecast （Billions of yen） Full year Q1 Q2 Q3 Q4 Full year Full year Capital Expenditures 52.3 9.2 14.2 13.3 25.4 62.1 65.0 Capital Expenditures (excluding lease） 44.5 7.7
Slide 29: Mission Statement and NSK Vision 2026
Mission Statement NSK contributes to a safer, smoother society and helps protect the global environment through its innovative technology integrating Motion & Control TM. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout