Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Business Results and Forecast May 14, 2015 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 １．Consolidated Business Results for the Year Ended March 31, 2015 ２．Consolidated Business Forecast for the Year Ending March 31, 2016 ３．Progress of the 4th Mid-Term Management Plan (Supplementary Information) 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2015
1．Consolidated Business Results for the Year Ended March 31, 2015 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2015
Summary of Consolidated Business Results for the Year Ended March 31, 2015 Business Environment ✓Recovery in Japan, steady demand in the U.S., recovery from market bottom in Europe, slow but stable growth in emerging countries ✓Industrial Machinery Business: Gradual recovery trend continued despite
Slide 5: Summary of Consolidated Business Results (Table)
Summary of Consolidated Business Results for the Year Ended March 31, 2015 Increase/ (Billions of yen) FY2013 FY2014 Difference Decrease <Actual> <Actual> YOY YOY Net sales 871.7 974.9 +103.1 +11.8% Operating income 68.0 97.3 +29.3 +43.0% <%> <7.8%> <10.0%> Ordinary income 66.8 91.0 +24.2 +36.3% Inc
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating Income / Margin Steady demand recovery in the industrial Both 4Q operating income and margin machinery business despite variation reached record levels due to higher volume between sectors. 4Q results in both automotive bearing and automotive and the de
Slide 7: Results by Business Segment
Results by Business Segment Increase/ (Billions of yen) FY2013 FY2014 Decrease Difference <Actual> <Actual> YOY YOY Net sales 871.7 974.9 +103.1 +11.8% Industrial machinery business 243.0 276.4 +33.4 +13.7% Industrial machinery bearings 205.7 232.4 +26.7 +13.0% Precision machinery and parts 37.3 44.
Slide 8: Operating Income: Factors Behind Increase (FY2013 to FY2014)
Operating Income: Factors Behind Increase (FY2013 ⇒ FY2014) (Billions of yen) Effect of exchange rate fluctuations 97.3 Reduction of external procurement costs +9.2 Volume +14.4 68.0 Decline in increase etc. sales price Increase in △7.9 other costs +27.2 △13.6 +29.3 FY2013 FY2014 7
Slide 9: Business Results by Customer Location
Business Results by Customer Location (Billions of yen) FY2013 FY2014 Increase/ Difference <Actual> <Actual> Decrease YOY YOY Net sales 871.7 974.9 +103.1 +11.8% Japan 329.1 328.8 -0.3 -0.1% Non-Japan 542.6 646.0 +103.4 +19.1% (Non-Japan ratio) (62.2%) (66.3%) The Americas 134.5 164.8 +30.3 +22.6% E
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) 6.9 7.1 (Billions of yen) 46.9 142.2 43.2 131.7 90.1 30.9 82.7 31.3 49.0 52.1 11.9 16.0 End of Mar. 2014 End o
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2016
2．Consolidated Business Forecast for the Year Ending March 31, 2016 10
Slide 12: Summary of Consolidated Business Forecast for FY2015
Summary of Consolidated Business Forecast for the Year Ending March 31, 2016 Forecasted Business Environment ✓ Japan: Recovery trend driven by the depreciation of the Japanese yen and lower crude oil prices, despite cost increase factors U.S.: Steady demand to continue, Europe: fluctuating condition
Slide 13: Summary of Consolidated Business Forecast (Table)
Summary of Consolidated Business Forecast for the Year Ending March 31, 2016 (FY2015) (Billions of yen) FY2014 FY2015 1st half 2nd half Full year 1st half 2nd half Full year Difference Change <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Net sales 464.4 510.5 974.9 490.0 530.0
Slide 14: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) FY2014 FY2015 1st half 2nd half Full year 1st half 2nd half Full year Difference Change <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Net sales 464.4 510.5 974.9 490.0 530.0 1,020.0 +45.1 +4.6% Industrial machinery business 132.5 1
Slide 15: Operating Income: Factors Behind Increase (FY2014 to FY2015 Forecast)
Operating Income: Factors Behind Increase (FY2014 ⇒ FY2015 Forecast) (Billions of yen) Effect of exchange rate fluctuations 102.0 Reduction of external procurement costs +2.7 97.3 Decline in sales price Volume +8.0 increase etc. △8.5 Increase in other costs +18.8 △16.3 +4.7 FY2014 FY2015 Forecast 14
Slide 16: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) FY2014 FY2015 1st half 2nd half Full year 1st half 2nd half Full year Increase/ Change Decrease <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Net sales 464.4 510.5 974.9 490.0 530.0 1,020.0 +45.1 +4.6% Japan 162.6 166.2 328.8 164.
Slide 17: Progress of the 4th Mid-Term Management Plan
3．Progress of the 4th 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 《The 4th Mid-term Management Plan》 Numerical The 2nd year Targets Actual Business Strategies Corporate Foundation FY2015 FY2014 Develop management capability to Growth with f
Slide 19: The 4th Mid-Term Management Plan: Business Forecast
The 4th Mid-Term Management Plan: Business Forecast The 4th Mid-term Plan Operating Income % 16.1% 15.3% 15.0% 14.0% ROE 11.9% 12.1% 10.3% 10.6% 8.0% 9.2% 3.0% 2.0% 5.2% 3.4% 10.0% 10.0% 8.7% 9.0% 7.8% 5.0% 6.6% 6.8% 6.1% 6.1% 4.4% (Billions of yen) -1.4% 1.8% 1.9% 120 (Billions of yen) 1,020.0 1,00
Slide 20: Industrial Machinery Business 1: Business Environment and Forecast
Industrial Machinery Business ①: FY2014 Business Environment and Business Forecast 【Demand trend by sector】 [FY2014 vs FY2015] (Billions of yen) Net Sales Sectors Overall Japan Non-Japan Precision Machinery 400 Electrical / IT and Parts 292.0 300.0 Steel Plant Facilities 300 276.4 255.8 243.0 53.0 F
Slide 21: Industrial Machinery Business 2: Progress of Mid-Term Management Plan
Industrial Machinery Business ②: Progress of Mid-Term Management Plan Sales: Sector-Focused Initiatives Technology: New Products, New Technologies Sectors Applications Sales (¥) Sales of new products (Billions of yen) Precision machinery and parts (Products) Wind Turbines Gear boxes 2.5 billion Indu
Slide 22: Automotive Business 1: Vehicle Production and Business Forecast
Automotive Business ① Vehicle Production and Business Forecast 【Vehicle Production Volume (Global / By Japanese Automakers)】 Left: Global Japan N. America Europe China ASEAN6 Others (Billions of yen) Net Sales Right: By Japanese Automakers 800 (Millions of vehicles) 701.0 100 90.2 657.0 87.1 87.5 59
Slide 23: Automotive Business 2: Progress of Mid-Term Management Plan
Automotive Business ② Progress of Mid-Term Management Plan Automotive Bearings ・ Automotive Components Automotive Components Sales expansion in drive-train parts Continued expansion of steering business (Millions of (Billions of yen) Net sales in drive-train parts (Billions of yen) Net sales in stee
Slide 24: The 4th Mid-Term Management Plan: The Final Year Policy and Summary
The 4th Mid-Term Management Plan: The Final Year Policy and Summary Positioning of FY2015 and Management Policy ● Final year to complete mid-term management plan ✓ Despite achieving numerical targets a year ahead of schedule, will continue enhancing fundamentals and work to meet unachieved areas ✓ E
Slide 25: NSK Vision 2026: Setting the Future in Motion
NSK Vision 2026 SETTING THE FUTURE IN MOTION We bring motion to life, to enrich lifestyles, and to build a brighter future. Dedicated to uncovering society's needs, we set ideas in motion to deliver solutions beyond imagination. We're NSK. And, we're setting the future in motion. 24
Slide 26: (Supplementary Information)
(Supplementary Information) 25
Slide 27: Forecast by Geographical Segment
(Supplementary Information) Forecast by Geographical Segment (Billions of yen) FY2013 FY2014 FY2015 <Actual> <Actual> <Forecast> Net Sales 871.7 974.9 1,020.0 Japan 512.2 522.7 514.0 The Americas 132.4 156.7 173.0 Europe 126.8 138.8 128.5 Asia 288.2 353.9 392.5 Eliminations -187.9 -197.4 -188.0 Oper
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 Change YOY Change YOY (Billions of yen) (Billions of yen) 1,129.2 1,129.2 +128.2 +128
Slide 29: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital Expenditure, Depreciation and Amortization, R&D Expenses (Billions of yen) FY2013 FY2014 FY2015 <Actual> <Actual> <Forecast> Capital expenditure (※) 43.2 46.9 51.0 ※Excluding intangible assets (Billions of yen) FY2013 FY2014 FY2015 <Actual> <Actual> <Forecast> Dep