Slide 1: Consolidated Business Results for Q2 FY2021
FINANCIAL CONFERENCE Consolidated Business Results for Q2 FY2021 November 5, 2021 President and CEO NSK Ltd. Akitoshi Ichii 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
Slide 2: Agenda
1. Consolidated Business Results for the Six Months Ended September 30, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 3. Topic: Sustainable Growth and Environmental Contribution （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2021
1. Consolidated Business Results for the Six Months Ended September 30, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 3. Topic: Sustainable Growth and Environmental Contribution （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, 2021 (1) Business Environment ●Industrial Machinery Business: Demand remained robust primarily for sectors such as machine tools and semiconductor manufacturing equipment. ●Automotive Business: The reduction of automotiv
Slide 5: Summary of Consolidated Business Results for the Six Months (2)
Summary of Consolidated Business Results for the Six Months Ended September 30, 2021 (2) ※ ※Segment Income : Operating income before deduction of other operating income and expenses ●Both sales and profits in H1 increased YOY due to the recovery from COVID-19 impact. ●The component supply shortage s
Slide 6: Operating Income: Factors Behind Change (FY2020 1st half to FY2021 1st half)
Operating Income: Factors Behind Change （FY2020 1st half ⇒ FY2021 1st half） Increase / Decrease in （Billions of yen） Volume/ Mix sales price Increase/Decrease in costs Increase /Decrease in Equity method Effect of profits / Other external exchange rate operating procurement fluctuations expenses cos
Slide 7: Industrial Machinery Business
Industrial Machinery Business (Billions of yen) ■Ind BRG ■Precision ■S.I ● S.I (%) 82.2 83.2 FY2020 FY2021 Increase/ 79.0 Difference 71.9 69.4 68.8 72.3 1st half 1st half Decrease YOY 14.1 15.1 YOY 65.5 12.6 Actual Actual 10.2 10.6 9.9 10.2 58.5 9.2 9.2% Sales 124.0 165.3 +41.4 +33.4% 9.1 6.6% 7.9%
Slide 8: Automotive Business
Automotive Business (Billions of yen) ■Auto BRG ■Auto Comp ■S.I ● S.I (%) 134.0 FY2020 FY2021 131.6 135.8 Increase/ Difference 131.1 1st half 1st half Decrease YOY 121.7 Actual Actual YOY 114.7 116.9 112.2 67.3 65.3 66.0 62.8 Sales 182.8 233.9 +51.1 +27.9% 55.3 55.9 57.2 52.3 66.0 Automotive 2.7% 2.
Slide 9: Consolidated Business Forecast for the Year Ending March 31, 2022
1. Consolidated Business Results for the Six Months Ended September 30, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 3. Topic: Sustainable Growth and Environmental Contribution （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 8
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2022 (1)
Consolidated Business Forecast for the Year Ending March 31, 2022 (1) Business Environment ● Industrial Machinery Business: Robust demand to continue Automotive Business: Uncertainty remains due to component shortage supply Global automotive production volumes to fall below past assumptions ●Cost in
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2022 (2)
Consolidated Business Forecast for the Year Ending March 31, 2022(2) ● Both sales and profits are expected to increase YOY. Results will be assisted by the deprecation of the Japanese yen. FY2020 FY2021 Full year 1st half 2nd half Full year YOY Full year Increase/ (Billions of yen) Actual Actual Rev
Slide 12: Consolidated Business Forecast by Segment
Consolidated Business Forecast for the Year Ending March 31, 2022 by Segment Sales and profits are expected to exceed the previous year’s results primarily in 産業機械事業 Industrial Machinery Business machine tools and semiconductor manufacturing equipment. FY2020 FY2021 YOY Full year 1st half 2nd half F
Slide 13: Operating Income: Factors Behind Change (FY2020 to FY2021 Revised Forecast)
Operating Income: Factors Behind Change （FY2020 ⇒ FY2021 Revised Forecast） Increase Increase / /Decrease in Decrease in external （Billions of yen） sales price Procurement Increase/ Volume/ Mix costs Decrease in costs Transfer of land Volume/ Mix Increase /Decrease Equity method in costs profits / Ot
Slide 14: Management Policy of 2nd Half for the Year Ending March 2022
Management policy of 2nd Half for the Year Ending March 2022 ✔ Risk and Countermeasures - Supply Chain Risks ・Resurgence of COVID-19 infections ・Ongoing component shortage including semiconductor ・Power restrictions in China, etc. Industrial Machinery Business: Supply leveraging global plant presenc
Slide 15: Topic: Sustainable Growth and Environmental Contribution
1. Consolidated Business Results for the Six Months Ended September 30, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 3. Topic: Sustainable Growth and Environmental Contribution （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 14
Slide 16: Topic: Sustainable Growth and Environmental Contribution
Topic: Sustainable Growth and Environmental Contribution ●Accelerating electrification: Develop new products and secure orders Secure bearing orders for e-Axles or high-speed motors from global manufacturers through core technologies such as low torque and high-speed rotation Contribute to improveme
Slide 17: Supplementary Information
（Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 16
Slide 18: Supplementary Information: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment FY2021H2 - (Billions of yen) FY2020 FY2021 YOY FY2021 Revised FCST FY2021 H1 1st half Full year 1st half Increase/ Increase/ Actual Actual Actual Decrease Difference 2nd half Full year Decrease Total Sales 315.9 747.6 417.8 +101.9 +32
Slide 19: Supplementary Information: Sales by Customer Location
Supplementary Information : Sales by Customer Location FY2020 FY2021 Increase/ (Billions of yen) Difference 1st half 1st half Decrease Sales 315.9 417.8 +101.9 +32.2% Japan 112.7 156.8 +44.1 +39.1% Non-Japan 203.2 261.0 +57.8 +28.4% (Non-Japan Ratio) (64.3%) (62.5%) The Americas 46.7 60.4 +13.7 +29.
Slide 20: Supplementary Information: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Assets Liabilities / Total equity (Billions (Billions of yen) of yen) -4.8 -4.8 1,167.5 1,162.6 1,167.5 1,162.6 Current liabilities 300.2 -32.4 267.8 Current 534.0 -18.6 515.4 assets Non-Current 293.8 +4.6 298.4 liabilities Ratio of equity 49.7%
Slide 21: Supplementary Information: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt Inventories Interest-bearing debt (Billions Inventory (Billions Net D/E ratio of yen) 4.9 turnover 5.1 0.28 0.29 of yen) +28.1 -24.8 178.1 332.4 307.6 150.0 Non-Japan 68.9 -8.8 60.2 109.0 Non-Japan 88.6 +20.5 Japan 263.5 -16.0 247.4 Japa
Slide 22: Supplementary Information: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses FY2020 FY2021 Full year Full year （Billions of yen） Q1 Act Q2 Act Act FCST Capital Expenditures 37.3 5.2 13.6 51.0 Capital Expenditures (excluding lease） 34.1 4.6 8.9 51.0 Depreciation and Amortisation 54.5
Slide 23: 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™. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout t