Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Business Results and Forecast May 17, 2011 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 historical fact are forward-looking statements.
Slide 2: Contents
Contents Consolidated Business Results 1 for the Year Ended March 31, 2011 Key Strategies for the Year 2 Ending March 31, 2012 3 Progress of Mid-Term Plan (Supplementary Material) 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2011
Consolidated Business Results 1 for the Year Ended March 31, 2011 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2011
Summary of Consolidated Business Results for the Year Ended March 31, 2011 Business Environment ✓Industrial Machinery： Demand for machine tool and construction machinery in emerging countries was robust. ✓Automotive Products：Sales in US and Germany showed a clear upward trend, although growth rate o
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2011
Summary of Consolidated Business Results for the Year Ended March 31, 2011 （Billions of yen） Increase/ ’10/3 ’11/3 decrease Difference ＜Actual＞ ＜Actual＞ YOY YOY Sales 587.6 710.4 +122.8 +20.9% Operating income 11.3 43.5 +32.2 +285.0% ＜%＞ ＜1.9%＞ ＜6.1%＞ Ordinary income 7.6 38.6 +31.0 +407.6% Income be
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income/Margin Sales have been on a recovery trend Profitability improved through to 3Q, despite deceleration in growth rate. despite the negative impact of raw material Q4 sales declined due to the earthquake. cost increases and the strong yen. 200 20 (
Slide 7: Results by Business Segment
Results by Business Segment (Billions of yen) Increase/ ’10/3 ’11/3 decrease Difference ＜Actual＞ ＜Actual＞ YOY YOY Sales 587.6 710.4 +122.8 +20.9% Industrial machinery 202.0 259.1 +57.1 +28.3% business Industrial machinery bearings 166.9 199.9 +33.0 +19.8% Precision machinery and parts 35.1 59.2 +24.
Slide 8: Quarterly Business Segment Performance
Quarterly Business Segment Performance Industrial Machinery Business (Billions of yen) 80 Sales (Billions of yen) Operating income / Margin Industrial machinery Precision machinery bearings and parts ６５. ６５.７ ６５. ６６. ６６.２ ( ) ： Effect of earthquake 70 ６５.４ 15 ６１. ６１.９ ６１. ６１.８ ： Margin excluding eff
Slide 9: Operating Income: Factors Behind Increase
Operating income : Factors Behind Increase (10/3 ⇒ 11/3) （Billions of yen) Effect of earthquake Reduction of external procurement costs etc. Effect of -2.3 volume increase +7.3 43.5 YOY increase of 32.2 11/3 10/3 +45.6 Decline in 11.3 sales price Effect of exchange -6.0 rate fluctuations Increase in
Slide 10: Business Results by Customer Location
Business Results by Customer Location Increase/ ’10/3 ’11/3 decrease Difference (Billions of yen) YOY <Actual> <Actual> YOY Sales 587.6 710.4 +122.8 +20.9% Japan 289.5 354.5 +65.0 +22.5% Non- Non-Japan 298.1 355.9 +57.8 +19.4% （Non- ratio） Non-Japan ratio） (50.7%) (50.1%) The Americas 70.6 85.5 +14.
Slide 11: Business Results by Geographical Segment
Business Results by Geographical Segment 【Japan】 【The Americas】 ’10/3 ’11/3 Increase/ ’10/3 ’11/3 Increase/ Difference Difference (Billions of yen) decrease YOY (Billions of yen) decrease YOY Actual Actual YOY Actual Actual YOY Sales 429. 429.2 532.3 +103.1 +24.0% Sales 69.4 84.7 +15.3 +22.1% Operat
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets 資 産 Assets 負債／純資産 Liabilities and Net Assets Non- Non-current assets Current Assets Non- Non-Current Current Ratio of Net Worth Net Assets Liabilities Liabilities to Total Capital （Billions of yen） （Billions of yen） Change YOY Change YOY 789.6 788.6 -1.0 789.6 788.6 -1.0
Slide 13: 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） 5.5 105.5 111.6 38.7 56.2 58.9 21.2 19.8 9.9 49.3 52.7 17.5 9.9 ’10/3 Year- Year-end ’11/
Slide 14: Key Strategies for the Year Ending March 31, 2012
Key Strategies for the Year 2 Ending March 31, 2012 13
Slide 15: Effect of the Great East Japan Earthquake
Effect of the Great East Japan Earthquake Business Forecast for FY 2011 ・Due to uncertainties surrounding the operational status of our customers, we are not announcing a business forecast for FY 2011 at this time. ・We plan to disclose the forecast when we can reasonably assess the situation. Effect
Slide 16: Business Environment for FY2011
Business Environment for FY2011 Business Environment ・Constraints on customers’ operations due to limited supply of materials, parts and electricity ⇒ Stagnation of economic activities （Effects are expected to remain until Q2, recover from Q3） ・Overseas demand is steady due to growth in emerging cou
Slide 17: Key strategies for FY2011 ①
Key strategies for FY 2011① Maintain Original Business Policy of FY2011 Accelerate mid-term strategies, considering growing overseas markets and competitive environment Growth Strategy Profitability Improvement Expand business base in emerging countries Continue production shift overseas (Production
Slide 18: Key strategies for FY2011 ②
Key strategies for FY 2011② Emergency Countermeasures for FY 2011 The latest tasks after the Great East Japan earthquake Carry out First Priority Principles Fulfill Supply Responsibilities ・Ensure employee safety ・Respond swiftly and appropriately to volume changes ・Carry out quality control as ・Tho
Slide 19: Progress of Mid-Term Plan
3 Progress of Mid-Term Plan 18
Slide 20: Outline of the FY'09~FY'12 Mid-Term Plan
Outline of the FY’09~FY’12 Mid-Term Plan FY’03-FY’05 FY’06-FY’08 ０９～１２年度中期計画の位置付け FY’09-FY’12 FY’13-FY’15 Mid-Term Plan Mid-Term Plan Mid-Term Plan Mid-Term Plan Select & Focus strategy Growth strategy Respond to paradigm shifts Towards Business restructuring Improve profitability Organize business
Slide 21: Progress of the Mid-Term Plan
Progress of the Mid-Term Plan FY’09~FY’12 Mid-Term Plan Operating income margin 8.5% （Billions of yen） 1,000 6.1% 160 1,000.0 3.4% 1.9% 780.0 800 710.4 120 647.6 587.6 Steady 600 Progress 80 66.0 400 Sales 43.5 40 200 22.1 Operating 11.3 0 income 0 ’09/3 ’10/3 ’11/3 ’13/3 Actual Actual Actual Mid- M
Slide 22: Industrial Machinery Business ①
Industrial Machinery Business① Industrial Machinery Business Sales expansion in growth areas （Billions of yen） Sales 400 ◎Key Targets 300.0 <Expand sales in growth markets/sectors> 300 267.0 Precision ：Enhance marketing power, foreseeing market 259.1 Machinery 60.0 57.5 202.0 59.2 and Parts ：Timely
Slide 23: Industrial Machinery Business ②
Industrial Machinery Business② Expand Production Sites in Growth Areas (Shenyang, China) Shenyang NSK Precision (Billions of yen) Ball Screw Plant ※Bearings + Precision machinery and parts Shenyang NSK Bearing Plant 10 Expansion Area 0 FY2010 Result FY2011 Plan FY2012 Plan ◆Production Schedule (Prog
Slide 24: Automotive Business ①
Automotive Business① Automotive Business Approach to Growing Market （Billions of yen） Sales ◎Key Targets 500 450.0 <Enhance sales in emerging countries> 424.2 400 366.4 ：Expand product line-up to suit market 352.5 Automotive (Compact type ・ Extreme environment) 207.5 Components 230.0 300 175.0 ：Expa
Slide 25: Automotive Business ② Electric Power Steering (EPS)
Automotive Business②《Electric Power Steering (EPS)》 Steady achievement of Mid-term Plan and enhancement of technology to win orders of next-generation models Achieve Next Growth Strategies Respond to Key Measures （Billions of yen） 200 【EPS Sales】 ■ Steady start-up of production for orders 140.0 rece
Slide 26: Approach to Asian Business
Approach to Asian Business China Further raise NSK’s presence Asia Sales Ratio ■ Autonomous management by China HQ (Production/ Sales/ Technology/ Administration) ※Sales by customer location ・ Reinvest China earnings in China operations ■ Enhance design functions by utilization of NSK China R&D Cent
Slide 27: Promotion of Local Procurement
Promotion of Local Procurement Continuous increase Enhance non-Japan Improve local added value production base of non - Japan production ratio Improve resilience against Organize supply chain exchange rate fluctuations within the same region Local procurement Current Projects ratio of materials and
Slide 28: (Supplementary Material)
(Supplementary Material) 27
Slide 29: Capital expenditure, Depreciation and Amortization, R&D expenses
(Supplementary Information) Capital expenditure, Depreciation and Amortization, R&D expenses （Billions of yen） 10/3 11/3 Actual Actual Capital expenditure（＊） 19.8 38.7 Japan 9.9 17.5 Non-Japan 9.9 21.2 The Americas 1.0 3.0 Europe 1.1 3.3 Asia 7.8 14.9 ＊Excluding intangible assets （Billions of yen） 1