Nsk Ltd. · TSE:6471
Nsk — H1 FY2024 Earnings Presentation
28 slides from Nsk's earnings presentation, Nov 1, 2024
Slide 1: Consolidated Business Results for the First Half Ended September 30, 2024
NSK Ltd. FINANCIAL CONFERENCE Consolidated Business Results for the First Half Ended September 30, 2024 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 November 1, 20
Slide 2: Contents
Contents １. Consolidated Business Results for the First Half of the Year Ending March 31, 2025 ２. Consolidated Business Forecast for the Year Ending March 31, 2025 ３. MTP2026 Profitability Improvement Measures (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 3: Contents
Contents １. Consolidated Business Results for the First Half of the Year Ending March 31, 2025 ２. Consolidated Business Forecast for the Year Ending March 31, 2025 ３. MTP2026 Profitability Improvement Measures (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 4: Key Points - Consolidated Business Results for FY2024 H1
Key Points - Consolidated Business Results for FY2024 H1 (Continuing operations） • Recovery trend in Industrial Business more gradual than expected. • YOY decline in global automotive production volume. Volume FY24 H1 slightly below forecast. Result • Achieved H1 forecast published in May 2024. ≫ Sa
Slide 5: Summary of Consolidated Business Results for FY2024 H1
Summary of Consolidated Business Results for FY2024 H1 ✓ YOY sales up, operating income down. Sales declined in real terms excluding forex impact. ✓ Operating income declined due to one-time expenses of ¥2.0 billion related to structural reforms. ✓ H1 result on par with May forecast. Increase/ FY202
Slide 6: Operating Income: Factors Behind Change (FY2023 H1 to FY2024 H1)
Operating Income: Factors Behind Change （FY2023 H1 ⇒ FY2024 H1）(Continuing operations) Effect of exchange rate One-time (Billions of yen) fluctuations expenses Volume/ Mix Cost reductions Inflation/ Labor cost increase Transfer of increased costs to sales prices Increase/ Decrease in costs ✔ Depreci
Slide 7: Industrial Machinery Business H1 Result
Industrial Machinery Business H1 Result ■Sales (Ind BRG) ■Sales (Precision) ■O.I. ●O.I.(%) Increase/ Difference FY2023 FY2024 (Billions Decrease YOY 100.1 H1 H1 YOY (Excluding 96.3 93.4 of yen) 89.9 90.5 90.0 effect of Actual Actual (Effect of exchange exchange rate fluctuations) rate fluctuations)
Slide 8: Automotive Business H1 Results
Automotive Business H1 Results ■Sales ■O.I. ●O.I.(%) Increase/ Difference (Billions FY2023 FY2024 Decrease YOY 108.0 H1 H1 (Excluding 103.9 of yen) Actual Actual YOY (Effect of exchange effect of exchange 94.8 94.5 95.2 101.7 100.5 98.7 rate fluctuations) rate fluctuations) 90.1 Sales 199.1 199.1 +0
Slide 9: Contents
Contents １. Consolidated Business Results for the First Half of the Year Ending March 31, 2025 ２. Consolidated Business Forecast for the Year Ending March 31, 2025 ３. MTP2026 Profitability Improvement Measures (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2025
Consolidated Business Forecast for the Year Ending March 31, 2025 ✓ Revised down H2 forecast from May forecast to reflect a decrease in volume. ≫ Industrial Machinery: Continued weakness in China, Europe ≫ Automotive: Global production of 88 million vehicles/year lower than expected (May forecast: 9
Slide 11: Operating Income: Factors Behind Change (FY2023 to FY2024 Forecast)
Operating Income: Factors Behind Change （FY2023 Full Year Actual ⇒ FY2024 Full Year Revised Forecast） (Continuing operations) (Billions of yen) Cost Volume/ Mix reductions/ Productivity FY23 FY24 improvement Inflation/ Labor cost increase Transfer of increased costs to sales prices One-time expenses
Slide 12: Forecast for FY2024 by Segment
Forecast for FY2024 by Segment ≫ Industrial Machinery Business Demand Trends by Sector (NSK forecast） ✓Weak market in Europe, slow market recovery in China Industrial Machinery FY24 H1 vs FY24 H2 vs Bearings FY23 H2 FY24 H1 FY2024 FY2024 vs. May Forecast FY2024 FY2024 FY2023 Forecast Revised Increas
Slide 13: Contents
Contents １. Consolidated Business Results for the First Half of the Year Ending March 31, 2025 ２. Consolidated Business Forecast for the Year Ending March 31, 2025 ３. MTP2026 Profitability Improvement Measures (Supplementary Information) Copyright NSK Ltd. All Rights Reserved.
Slide 14: MTP2026 Profitability Improvement Measures
MTP2026 Profitability Improvement Measures (Ref. First published in May 2024) FY24-26 Goal Aim to strengthen business foundation through sales growth and portfolio reform to recover from deterioration in profitability due to change in business environment Management Policy Initiatives ✓Continue init
Slide 15: Business Portfolio Reform
MTP2026 Profitability Improvement Measures Progress 1 ✓Business Portfolio Reform 1．Expand Industrial Machinery ≫ Sales ratio of total sales to 50％ by FY26 FY21 41% > FY23 44% > FY24 Forecast 46% Key Initiative: 1. Expand Aftermarket Sales 2. Expand Sales of Precision Products 1500(Billions 150.0 of
Slide 16: Structural reforms and production reorganization
MTP2026 Profitability Improvement Measures Progress 2 ✓ Implementing structural reforms and production reorganization ≫ Implementing structural reform and production reorganization with the highest priority on turning around loss-making regions and businesses Region Action Progress ・ E&E production
Slide 17: Status and Initiatives by Region
MTP2026 Profitability Improvement Measures Region Breakdown ✓Status and Initiatives by Region Overall • Reorganizing production and production location to reflect market changes • Global implementation of Ultra-Stabilization of Production Japan • Fostering understanding of appropriate pricing, withd
Slide 18: Supplementary Information
（Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 19: Shareholder Returns
Supplementary Information : Shareholder Returns Dividend Plan Remains Unchanged Interim ¥17/share (¥2 increase from FY23) Full Year (Plan) ¥34/share (¥4 increase from FY23) Shareholder Return Policy（MTP2026 FY24-26) “Provide Stable Shareholder Returns” ・Dividend Payout Ratio 30-50％ ・DOE guideline of
Slide 20: ESG Management
Supplementary Information : ESG Management “Create” Reduce CO2 emissions in FY23 Result: 51.7％ reduction business activities (FY26 Goal: -50%) Environment (Scope1+2 vs. FY17) “Utilize” Reduce CO2 emissions FY23 Result: 2,435kt through utilization of our products (FY26 Goal: 3,000kt) Issue Sustainabi
Slide 21: Appendix. Bearings & Beyond -Press Releases-
Supplementary Information : Appendix. Bearings & Beyond -Press Releases- Bearings ＞＞ Enhance Added-Value by Leveraging of NSK Core Technologies NSK Develops New and Improved Low-Friction Hub Unit Bearing ・Successfully developed a low-friction seal that maintains muddy water resistance by leveraging
Slide 22: Bearings & Beyond -Press Releases- CMS
Supplementary Information : Bearings & Beyond -Press Releases- Bearings ＞＞ Expand Application of NSK Core Technologies to New Fields; Grow New Products and Create New Value Bio Co-Creation of New Business in the Bioeconomy Partnership with CHITOSE Group economy Compost production plant (demo model)
Slide 23: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment Due to the classification of the steering business as discontinued operations in FY23 Q1, the figures are shown as continuing operations excluding the steering business. Income from the equity in the joint venture with JIS, which was
Slide 24: Sales by Customer Location
Supplementary Information: Sales by Customer Location Due to the classification of the steering business as discontinued operations in FY23 Q1, the figures are shown as continuing operations excluding the steering business. Income from the equity in the joint venture with JIS, which was established
Slide 25: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet FY23 FY24 As a result of the decision to transfer a portion of the shares of NSK Logistics Co., Ltd. (hereinafter Ex. Rate End of Q4 End of Q2 referred to as NLK) on July 1, 2024, the assets and liabilities of NLK have been classified as “Assets
Slide 26: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt FY23 FY24 Ex. Rate In accordance with the classification of the Steering Business as End of Q4 End of Q2 discontinued operations in FY23 Q1, the amounts shown are 1USD 151.4 142.8 continuing operations excluding discontinued operations.
Slide 27: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information: Capital Expenditures, Depreciation and Amortisation, R&D Expenses In accordance with the classification of the Steering Business as discontinued operations in FY23 Q1, the amounts shown are continuing operations excluding discontinued operations. FY23 FY24 Full year Q1 Q2
Slide 28: 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 & ControlTM. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout