Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Consolidated Business Business Results Results and and Forecast Forecast November 7, 2012 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 h
Slide 2: Contents
Contents Consolidated Business Results 1 for the Six Months Ended September 30, 2012 Consolidated Business Forecast 2 for the Year Ending March 31, 2013 Emergency Countermeasures for the 2nd Half of the Year Ending March 31, 2013, and 3 Countermeasures for the Next Mid-term Plan (Supplementary Infor
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2012
Consolidated Business Results 1 for the Six Months Ended September 30, 2012 2
Slide 4: Summary of Consolidated Business Results for the Six Months
Summary of Consolidated Business Results for the Six Months Ended September 30, 2012 Business Environment ✓Industrial Machinery : Downturn in economy due to European financial crisis and slower growth in emerging countries ✓Automotive Products: Japan : Increased car production supported by governmen
Slide 5: Summary of Consolidated Business Results (table)
Summary of Consolidated Business Results for the Six Months Ended September 30, 2012 （Billions of yen） ’12/3 1st half ’13/3 1st half Increase/ Difference ’13/3 1st half decrease ＜Actual＞ ＜Actual＞ YOY YOY ＜Original forecast＞ forecast＞ Sales 351.9 369.4 +17.5 +5.0% 385.0 Operating income 22.9 18.4 -4.
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income/Margin Continued demand decrease in industrial 2Q operating income decreased due to lower machinery business. Sales in the automotive volume, appreciation of the Japanese yen, business rose YoY, but declined compared to price reductions, etc. 1Q.
Slide 7: Results by Business Segment
Results by Business Segment (Billions of yen) ’12/3 1st half ’13/3 1st half Increase/ Difference ’13/3 1st half decrease <Original <Actual> <Actual> YOY YOY Forecast> Sales 351.9 369.4 +17.5 +5.0% 385.0 Industrial machinery 133.1 112.2 -20.9 -15.7% 125.5 business Industrial machinery bearings 108.7
Slide 8: Operating Income: Factors Behind Decrease
Operating income : Factors Behind Increase (’12/3 1st half ⇒ ’13/3 1st half) (Billions of Yen) YOY decrease of ’12/3 1st half -4.5 Decline in sales price 22.9 ’13/3 1st half Reduction of -3.5 Effect of exchange external procurement 18.4 rate fluctuations costs etc. -9.9 Increase in -2.5 other costs
Slide 9: Business Results by Customer Location
Business Results by Customer Location Increase/ ’12/3 1st half ’13/3 1st half decrease Difference (Billions of yen) YOY <Actual> <Actual> YOY Sales 351.9 369.4 +17.5 +5.0% Japan 170.9 175.7 +4.8 +2.8% Non- Non-Japan 181.0 193.7 +12.7 +7.1% (Non-Japan ratio) (Non- (51.4%) (52.4%) The Americas 39.0 49
Slide 10: Inventory, Interest-Bearing Debt, Capital Expenditure, Depreciation
Inventory/ Interest-Bearing Debt, Capital Expenditure/ Depreciation 棚卸資産 Inventories 設備投資 Capital Expenditure Japan Non- Non-Japan Inventory turnover Japan Non- Non-Japan （Billions of yen） 6.5 （Billions of yen） 6.2 6.4 28.5 117.0 115.4 117.0 21.8 21.5 18.2 63.4 65.4 67.1 12.9 14.5 53.6 50.0 49.9 8.9
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2013
Consolidated Business Forecast 2 for the Year Ending March 31, 2013 10
Slide 12: Summary of Consolidated Business Forecast for the Year Ending March 2013
Summary of Consolidated Business Forecast for the Year Ending March 31, 2013 Revised Business Forecast ✓ Both sales and operating income were revised downward from the original forecast announced in May ✓ YOY decrease in both sales and operating income (Sales -¥18.2 billion (-2.5%), Operating income
Slide 13: Summary of Consolidated Business Forecast (table)
Summary of Consolidated Business Forecast for the Year Ending March 31, 2013 （Billions of yen） ’12/3 ’13/3 Full Year 1st half 2nd half Full Year Difference Change Full Year <Actual> <Actual> <Revised Forecast> <Revised Forecast> YOY YOY <Original Forecast> Sales 733.2 369.4 345.6 715.0 -18.2 -2.5% 7
Slide 14: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) ’12/3 ’13/3 Increase/ Full year 1st half 2nd half Full year decrease Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Sales 733.2 369.4 345.6 715.0 -18.2 -2.5% 780.0 Industrial machinery business 255.8
Slide 15: Operating Income: Factors Behind Decrease (Revised Forecast)
Operating income : Factors Behind Increase (’12/3 ⇒ ’13/3 Revised forecast) （Billions of yen） Difference from ’12/3 ’12/3 -17.4 Volume 44.4 decrease -8.0 Decline in sales price ’13/3 Revised forecast Effect of -7.3 exchange rate External -25.9 fluctuations procurement cost reduction 27.0 Increase in
Slide 16: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) ’12/3 ’13/3 1st half 2nd half Full year 1st half 2nd half Full year Increase/ decrease Change Full year <Actual> <Actual> <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Sales 351.9 381.3 733.2 369.4 345.6 715.0 -18.
Slide 17: Emergency Countermeasures for 2nd Half and Next Mid-term Plan
Emergency Countermeasures for the 2nd Half of the Year Ending March 31, 2013 and 3 Countermeasures for the Next Mid-term Plan 16
Slide 18: Semiannual Business Performance
Semiannual Business Performance Drastic change in Implement emergency countermeasures demand environment to improve profitability (Billions of yen) Industrial m achinery bearings Precision m achinery and parts System ized products Autom otive Others Operating incom e 600 20.2 23.3 22.9 21.5 Operatin
Slide 19: Quarterly Business Segment Performance
Quarterly Business Segment Performance Industrial Machinery Business Automotive Business (Billions of yen) (Billions of yen) Sales Sales 200 300 Systemized products Automotive components Precision machinery and parts Automotive bearings 244.5 243.8 232.2 152.8 Industrial machinery bearings 212.2 214
Slide 20: Demand Forecast and Countermeasures: Industrial Machinery Business
Demand Forecast and Countermeasures for the 2nd Half of the Year Ending March 31, 2013 -Industrial Machinery Business- Sales55of Industrial Machinery bearings ＜物量ベース＞ (Billions of Yen) Beginning of FY2012: 欧州危機 Expected demand increase 中国減速 Great East Japan 50 Lehman Crisis Earthquake 45 Rapid decre
Slide 21: Demand Forecast and Countermeasures: Automotive Business
Demand Forecast and Countermeasures for the 2nd Half of the Year Ending March 31, 2013 -Automotive Business- Japanese Automakers’ Production Volume (Thousands of vehicles) ’13/3 Original Forecast 27,160 Latest Forecast 26,310 ▲850 15,000 Domestic Export Overseas production 14,140 12,920 13,020 12,95
Slide 22: Emergency Countermeasures for the 2nd Half
Emergency Countermeasures for the 2nd Half of the Year Ending March 31, 2013 ● Countermeasures to Improve Profitability and Cash Flow Rapid Reflection of Volume Decrease in Operating Plans -Timely understanding of demand trends -Scale back production plans (reduce operation level and shifts) CAPEX R
Slide 23: Next Mid-term Plan: Strengthening Base in Emerging Countries
For Developing the Next Mid-term Plan -Continue Strengthening Base in Emerging Countries- Sales Expansion in Emerging Countries Strengthening Growth Platform 300 (Billions of yen) Sales in emerging countries 30% Emerging country ratio 200 20% 100 10% Sales site Production site 0 0% R&D center ’08/3
Slide 24: Next Mid-term Plan: Countermeasures for Challenging Business Environment
For Developing the Next Mid-term Plan -Countermeasures for Challenging Business Environment- Domestic Demand ■ Accelerate shift to overseas production Prolonged Shift ■ Strengthen local procurement appreciation Declining ＊Expand local procurement of raw materials, of the yen Profitability of enhance
Slide 25: 4th Mid-term Plan Basic Policy
For Developing of 4th Mid-term Plan 4th Mid-term Plan Basic Policy ＜Term: FY2013-FY2015＞ ■ Prepare foundation to become 1 trillion yen company ■ Improve company quality Profitability / growth capability / transparency / accountability ■ Industrial machinery Business : Reset overseas growth strategy
Slide 26: Supplementary Information
(Supplementary Information) 25
Slide 27: Forecast by Geographical Segment
(Supplementary Information) Forecast by Geographical Segment (Billions of yen) ’12/3 ’13/3 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Decrease Change Full year <Actual> <Actual> <Actual> <Actual> <Actual> <Actual> YOY YOY <Original forecast> Sales 351.9 381.3 733.2 369.4 345.6
Slide 28: Consolidated Balance Sheets
(Supplementary Information) Consolidated Balance Sheets 資 産 Assets 負債／純資産 Liabilities and Net Assets Non-current assets Non- Current Assets Non- Non-Current Current Ratio of Net Worth Net Assets Liabilities Liabilities to Total Capital （Billions of yen） Change YOY （Billions of yen） Change YOY 845.1
Slide 29: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital expenditure, Depreciation and Amortization, R&D expenses （Billions of yen） ’12/3 ’13/3 1st half ’13/3 ’13/3 Actual Actual Revised Forecast Original Forecast Capital expenditure（＊） 50.3 21.5 41.0 45.0 Japan 19.2 7.0 13.5 15.5 Non-Japan 31.1 14.5 27.5 29.5 The Ameri