Nsk Ltd. · TSE:6471
Nsk — Q2 FY2022 Earnings Presentation
24 slides from Nsk's earnings presentation, Nov 4, 2022
Slide 1: Consolidated Business Results for the Second Quarter ended September 30, 2022
NSK Ltd. FINANCIAL CONFERENCE Consolidated Business Results for the Second Quarter ended September 30, 2022 Cautionary Statements with Respect to Forward-Looking Statements November 4, 2022 Statements made in this report with respect to plans, strategies and future performance that are not historica
Slide 2: Agenda
1. Consolidated Business Results for the Six Months Ended September 30, 2022 2. Consolidated Business Forecast for the Year Ending March 31, 2023 3. Progress on MTP2026 -Growth with Profitability- （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 1
Slide 3: 1. Consolidated Business Results for the Six Months
1. Consolidated Business Results for the Six Months Ended September 30, 2022 2. Consolidated Business Forecast for the Year Ending March 31, 2023 3. Progress on MTP2026 -Growth with Profitability- （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 2
Slide 4: Summary of Consolidated Business Results for the Six Months (1)
Summary of Consolidated Business Results for the Six Months Ended September 30, 2022 (1) Business Environment ●Restriction of economic activity in China due to Zero-Covid policy ●Prolonged impact of Russia-Ukraine crisis ●Ongoing shortage of components such as semiconductors ●Increased inflation, e.
Slide 5: Summary of Consolidated Business Results for the Six Months (2)
Summary of Consolidated Business Results for the Six Months Ended September 30, 2022 (2) ■■Sales ■■Operating Income －O.I (%) FY22 H1 (Billions ✓Effect of exchange rate fluctuations of yen) +¥37.7 bn 463.8 YOY+11% FY21 H1 ✓Transfer of increased costs to sales price FY22 H1 +¥11.5 bn 417.8 244.4 414.6
Slide 6: Operating Income: Factors Behind Change
Operating Income: Factors Behind Change （FY2021 1st half ⇒ FY2022 1st half） ✔Inflation (steel cost, shipping cost, electricity cost) -15.8 （Billions of yen） ✔Transfer of increased costs to sales price and decrease in sales price +11.5 ✔Labor costs -2.4 ✔Depreciation and amortisation, -1.1 equipment
Slide 7: Industrial Machinery Business
Industrial Machinery Business ■Ind BRG ■Precision ■S.I ● S.I (%) (Billions of yen) 98.8 FY2021 FY2022 Increase/ Difference 93.6 94.1 Decrease YOY 1st half 1st half (Excluding 86.9 YOY 83.2 19.1 79.0 82.2 effect of (Effect of Actual Actual exchange exchange 17.3 17.9 rate fluctuations) rate fluctuati
Slide 8: Automotive Business
Automotive Business (Billions of yen) ■Auto BRG ■Auto Comp ■S.I ● S.I (%) 135.8 131.1 136.4 129.6 116.9 121.7 119.1 112.2 115.9 (Excluding (Effect of effect of exchange exchange 66.0 54.3 60.2 rate fluctuations) rate fluctuations) 62.8 57.2 52.3 59.2 55.9 52.3 (+21.0) (-1.1％) 76.2 69.8 68.3 70.3 64.
Slide 9: 2. Consolidated Business Forecast for the Year Ending March 31, 2023
1. Consolidated Business Results for the Six Months Ended September 30, 2022 2. Consolidated Business Forecast for the Year Ending March 31, 2023 3. Progress on MTP2026 -Growth with Profitability- （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 8
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2023
Consolidated Business Forecast for the Year Ending March 31, 2023 Business Environment ● Industrial Machinery Business: Reflect the slowdown of global demand Automotive Business: Supply chain disruption such as component shortage including semiconductors ● Additional cost increase in sales prices du
Slide 11: Operating Income: Factors Behind Change (FY2021 to FY2022 Forecast)
Operating Income: Factors Behind Change （FY2021 ⇒ FY2022 Revised Forecast） （Billions of yen） Decrease in Inflation procurement costs /sales price Increase/ Decrease in Effect of other costs exchange rate Effect of fluctuations Volume/ Mix exchange rate fluctuations Volume/ Mix Equity method profits
Slide 12: Consolidated Business Forecast by Segment
Consolidated Business Forecast for the Year Ending March 31, 2023 by Segment Industrial ✓Although the demand in H2 is supposed to slow down against our original Machinery plan, sales in H2 is expected to increase by maximizing the sales and Business additional increase in sales prices. FY2022 vs. Ma
Slide 13: 3. Progress on MTP2026 -Growth with Profitability-
1. Consolidated Business Results for the Six Months Ended September 30, 2022 2. Consolidated Business Forecast for the Year Ending March 31, 2023 3. Progress on MTP2026 -Growth with Profitability- （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 12
Slide 14: Growth with Profitability – Industrial Machinery Business
Growth with Profitability – Industrial Machinery Business ◆Progress on MTP2026 ● FY26 targets: Sales of ¥450.0 billion; operating margin of 13 % 1. Increase demand for small motors for electrification, 5G, etc. ≫Ongoing plan to establish new plant in Target Southeast Asia +¥30.0 ≫Promote initiatives
Slide 15: Growth with Profitability – Automotive Business
Growth with Profitability – Automotive Business ◆Progress on MTP2026 ●Automotive Bearings FY26 targets: Sales of ¥340.0 billion; operating margin of 8% ✓ Accumulate about 70% of orders for EVs against the target in FY2026 (+¥120.0bn) ≫Low friction hub unit bearings：New expansion toward professional
Slide 16: Management Policy of 2nd Half for the Year Ending March 2023
Management Policy of 2nd Half for the Year Ending March 2023 ✓Business conditions The outlook of the global economy remains uncertain ≫Sales volume will decrease comparing to our original plan in constant-terms basis ≫Reflect transferring of increased costs to sales price in addition ≫Revised exchan
Slide 17: Supplementary Information
1. Consolidated Business Results for the Six Months Ended September 30, 2022 2. Consolidated Business Forecast for the Year Ending March 31, 2023 3. Progress on MTP2026 -Growth with Profitability- （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 16
Slide 18: Forecast for FY2022 by Segment
Supplementary Information: Forecast for FY2022 by Segment ■Industrial Machinery Business Demand trend by sector Original Plan Revised Forecast FY22 1H FY22 2H FY22 1H FY22 2H vs FY21 2H vs FY22 1H vs FY21 2H vs FY22 1H ✓Global economy is assumed to slow down. Machine Tools → → → → ✓In FY2022 H2, dem
Slide 19: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment FY2021 H2- (Billions of yen) FY2021 FY2022 YOY FY2022 Revised FCST FY2022 H1 1st half Full year 1st half Increase/ Increase/ Actual Actual Actual Decrease Difference 2nd half Full year Decrease Total Sales 417.8 865.2 463.8 +46.1 +11.
Slide 20: Sales by Customer Location
Supplementary Information : Sales by Customer Location FY2021 FY2022 YOY Increase/ (Billions of yen) Difference 1st half 1st half Decrease Sales 417.8 463.8 +46.1 +11.0% Japan 156.8 153.4 -3.4 -2.2% Non-Japan 261.0 310.4 +49.4 +18.9% (Non-Japan Ratio) (62.5%) (66.9%) The Americas 60.4 81.1 +20.7 +34
Slide 21: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Assets Liabilities / Total equity (Billions (Billions of yen) of yen) +31.4 +31.4 1234.6 1265.9 1234.6 1265.9 297.0 +8.7 305.7 Current 569.9 615.4 liabilities Current +45.5 assets 300.1 311.9 Non-Current +11.8 liabilities Ratio of equity attribut
Slide 22: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt Inventories Interest-bearing debt (Billions Inventory (Billions Net D/E ratio of yen) 5.0 turnover of yen) 0.29 4.5 0.27 +14.3 +37.8 341.3 211.0 196.7 303.5 Non-Japan +12.7 79.3 66.5 +9.8 132.9 Non-Japan 123.1 Japan +25.1 262.0 237.0 Jap
Slide 23: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses FY2021 FY2022 Full year Q1 Q2 Full year （Billions of yen） Actual Actual Actual Forecast Capital Expenditures 52.3 9.2 14.2 70.0 Capital Expenditures (excluding lease） 44.5 7.7 11.4 70.0 Depreciation and Amo
Slide 24: 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