Slide 1: Consolidated Business Results and Forecast
FINANC IAL CONFERENCE FINANCIAL Consolidated Consolidated Business Business Results Results and and Forecast Forecast November 1, 2013 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance tha
Slide 2: Contents
Contents １．Consolidated Business Results for the Six Months Ended September 30, 2013 ２．Consolidated Business Forecast for the Year Ending March 31, 2014 ３．Progress of New Mid-Term Management Plan (Supplementary Information) 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2013
1．Consolidated Business Results for the Six Months Ended September 30, 2013 2
Slide 4: Summary of Consolidated Business Results for the Six Months Ended September 30, 2013
Summary of Consolidated Business Results for the Six Months Ended September 30, 2013 Business Environment ✓Industrial Machinery Business: Electrical steady demand, Capital goods gradual recovery ✓Automotive Business: Japan: demand decreased YoY due to ending of government subsidies for eco-cars
Slide 5: Summary of Consolidated Business Results for the Six Months Ended September 30, 2013
Summary of Consolidated Business Results for the Six Months Ended September 30, 2013 Increase/ (Billions of yen) FY2012 1st half FY2013 1st half Difference FY2013 1st half Decrease <Actual> <Actual> YOY <Original forecast> YOY Net sales 369.4 413.6 +44.2 +12.0% 390.0 Operating income 18.4 28.8 +10.4
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income / Margin Sales in both the industrial machinery and 2Q operating income increased due to automotive businesses have continued to higher volume, cost reductions, and the increase from the FY2012 3Q bottom. effect of the weaker yen. The 7.6% margin
Slide 7: Results by Business Segment
Results by Business Segment Increase/ (Billions of yen) FY2012 1st half FY2013 1st half Difference FY2013 1st half Decrease <Actual> <Actual> YOY <Original forecast> YOY Net sales 369.4 413.6 +44.2 +12.0% 390.0 Industrial machinery business 112.2 115.9 +3.7 +3.3% 110.5 Industrial machinery bearings
Slide 8: Operating Income: Factors Behind Increase
Operating Income: Factors Behind Increase (FY2012 1st half ⇒ FY2013 1st half) FY2013 1st half (Billions of yen) Decrease in Effect of exchange other costs 28.8 YOY increase of rate fluctuations +0.9 +10.4 +12.0 FY2012 1st half +16.8 Volume 18.4 decrease etc. Reduction of external Decline in procurem
Slide 9: Business Results by Customer Location
Business Results by Customer Location (Billions of yen) FY2012 1st half FY2013 1st half Increase/ Difference <Actual> <Actual> Decrease YOY YOY Net sales 369.4 413.6 +44.2 +12.0% Japan 175.7 163.2 -12.5 -7.1% Non-Japan 193.7 250.4 +56.7 +29.2% (Non-Japan ratio) (52.4%) (60.5%) The Americas 49.3 64.8
Slide 10: Inventories, Interest-Bearing Debt, Capital Expenditure, Depreciation and Amortization
Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortization Inventories Capital Expenditure Japan Non-Japan Inventory turnover Japan Non-Japan (Billions of yen) (Billions of yen) 6.6 6.4 6.2 21.5 23.0 133.1 117.0 119.3 18.0 67.1 79.5 14.5 16.7 73.2 13.8 49.9 46.1 53.6 7.
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2014
2．Consolidated Business Forecast for the Year Ending March 31, 2014 10
Slide 12: Summary of Consolidated Business Forecast for the Year Ending March 31, 2014
Summary of Consolidated Business Forecast for the Year Ending March 31, 2014 Revised Business Forecast (Announced in September) ✓ Both net sales and operating income were revised upward from the original FY2013 forecast announced in May ✓ YOY increase in both net sales and operating income (Net sale
Slide 13: Summary of Consolidated Business Forecast for the Year Ending March 31, 2014 (FY2013)
Summary of Consolidated Business Forecast for the Year Ending March 31, 2014 (FY2013) (Billions of yen) FY2012 FY2013 Full year 1st half 2nd half Full year Difference Change Full year <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Net sales 732.8 413.6 426.4 840.
Slide 14: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) FY2012 FY2013 Full year 1st half 2nd half Full year Difference Change Full year <Actual> <Actual> <Revised forecast> <Revised Forecast> YOY YOY <Original forecast> Net sales 732.8 413.6 426.4 840.0 +107.2 +14.6% 790.0 Industrial machinery business 216.1
Slide 15: Operating Income: Factors Behind Increase
Operating Income: Factors Behind Increase (FY2012 ⇒ FY2013 Revised forecast) FY2013 Revised forecast (Billions of yen) Effect of exchange YOY increase of rate fluctuations 58.0 +25.6 +10.7 Reduction of external procurement costs etc. Volume +7.8 FY2012 increase etc. +34.0 32.4 Decline in sales price
Slide 16: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) FY2012 FY2013 1st half 2nd half Full year 1st half Increase/ 2nd half Full year Decrease Change Full year <Actual> <Actual> <Actual> <Actual> <Revised forecast> <Revised forecast> YOY YOY <Original forecast> Net sales 369.4 363.4 732.8 413.6 426.4 840.
Slide 17: Progress of New Mid-Term Management Plan
3．Progress of New Mid-Term Management Plan 16
Slide 18: Mid-Term Management Plan: Outline
Mid-Term Management Plan: Outline Establishing corporate fundamentals appropriate for a company with net sales of ¥1 trillion 《 Numerical Targets 》 Business Strategies Corporate Foundation FY2015 Develop management capability to Growth with focus on profitability handle ¥1 trillion in sales volume N
Slide 19: Mid-Term Management Plan: Business Forecast
Mid-Term Management Plan: Business Forecast FY2009-FY2012 Mid-term Plan FY2013-FY2015 Mid-term Plan Sales Operating income Operating income % 9.1% 6.1% 6.1% 6.2% 6.9% (Billions of Yen) (Billions of Yen) 4.4% 160 1,000 1.9% 940.0 840.0 790.0 800 710.4 733.2 732.8 120 587.6 86.0 600 80 58.0 400 49.0 4
Slide 20: Industrial Machinery Business 1: FY2013 2nd Half
Industrial Machinery Business ①: FY2013 2nd Half Business Environment and Business Forecast 【Demand trend by sector】 1st half vs 2nd half (Billions of yen) Net Sales Precision Machinery Sectors Overall Japan Non-Japan 400 and Parts Electrical / IT 300.0 300 255.8 53.0 Steel Plant Facilities 216.1 23
Slide 21: Industrial Machinery Business 2: Progress of Mid-Term Management Plan
Industrial Machinery Business ② Progress of Mid-Term Management Plan Sector Strategies; Leader Strategies / Challenger Strategies Maintenance Related Business ■ Leader Fields ■ Expanding business, focusing on Machine tools: infrastructure sector in emerging - Targeting Japanese and Chinese markets c
Slide 22: Automotive Business 1: Vehicle Production Forecast and Business Forecast
Automotive Business ① Vehicle Production Forecast and Business Forecast 【Global vehicle production volume】 Japan N. America Europe China ASEAN 6 Others Net Sales (Millions of vehicles) (Billions of yen) 590.0 100.0 92.9 92.0 600 569.0 84.0 85.5 88.9 88.4 525.0 Components 490.5 Automotive 80.0 82.7 1
Slide 23: Automotive Business 2: Progress of Mid-Term Management Plan
Automotive Business ② Progress of Mid-Term Management Plan Automotive Bearings Electric Power Steering Systems (Billions of yen) 【Sales of New Technologies/New Products】 250 【EPS Sales】 (Index) 200 194 200 EV/HEV 179 150 Volume zone Efficiency improvement 120 150 100 100 100 50 50 50 38 0 FY2011 FY2
Slide 24: Establishing a Production Site in Mexico
Strengthening Business Base in Emerging Countries: Establishing a Production Site in Mexico Purpose of establishing Mexico plant 【Overview】 - Respond to growing automotive - Location: Silao, Guanajuato, Mexico - production in Mexico - Establishment: April 2013 - Operate as a supply site for North an
Slide 25: Mid-Term Management Plan Measures: Enhancing Corporate Foundation
Mid-Term Management Plan Measures: Enhancing Corporate Foundation Increasing Overseas Production Ratio Enhancing Global Management ■ Increasing overseas production ratio FY2015 Target Globalizing HQ management FY2011 FY2013 Forecast Further globalizing and localizing Non-Japan Japan local manage
Slide 26: (Supplementary Information)
(Supplementary Information) 25
Slide 27: Forecast by Geographical Segment
(Supplementary Information) Forecast by Geographical Segment (Billions of yen) FY2012 FY2013 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Decrease Change Full year <Actual> <Actual> <Actual> <Actual> <Revised forecast> <Revised forecast> YOY <Original forecast> YOY Net sales 369
Slide 28: Consolidated Balance Sheets
(Supplementary Information) Consolidated Balance Sheets Assets Liabilities and Net Assets Net assets Non-current liabilities Non-current assets Current assets Current liabilities Ratio of net worth to total capital (Billions of yen) Change YOY (Billions of yen) Change YOY 944.8 944.8 882.5 +62.3 882
Slide 29: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital Expenditure, Depreciation and Amortization, R&D Expenses (Billions of yen) FY2012 FY2013 1st half FY2013 <Actual> <Actual> <Original forecast> Capital expenditure (※) 44.5 18.0 38.0 Japan 13.3 4.2 11.0 Non-Japan 31.2 13.8 27.0 The Americas 4.0 2.8 5.5 Europe 4.7 1