Slide 1: Financial Conference: Consolidated Business Results and Forecast
FINANCIAL CONFERENCE Consolidated Business Results and Forecast May 14, 2014 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 for the Year Ended March 31, 2014 Consolidated Business Forecast for the Year Ending March 31, 2015 P rogress of the 4th Mid-Term Management Plan (Supplementary Information) 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2014
Consolidated Business Results for the Year Ended March 31, 2014 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2014
Summary of Consolidated Business Results for the Year Ended March 31, 2014 Business Environment ✓Although growth in emerging countries slowed, there was a moderate recovery in developed countries ✓Industrial Machinery Business: continuation of gradual recovery trend ✓Automotive Business: despite reg
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2014
Summary of Consolidated Business Results for the Year Ended March 31, 2014 Increase/ (Billions of yen) FY2012 FY2013 Difference Decrease <Actual> <Actual> YOY YOY Net sales 732.8 871.7 +138.9 +19.0% Operating income 32.4 68.0 +35.6 +110.3% <%> <4.4%> <7.8%> Ordinary income 30.3 66.8 +36.5 +120.3% In
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating Income / Margin Sales continued to increase in both the industrial machinery and automotive YOY operating income increased with each businesses. Annual volume for the industrial subsequent quarter. Both 4Q operating machinery business exceeded that of F
Slide 7: Results by Business Segment
Results by Business Segment Increase/ (Billions of yen) FY2012 FY2013 Decrease Difference <Actual> <Actual> YOY YOY Net sales 732.8 871.7 +138.9 +19.0% Industrial machinery business 216.1 243.0 +26.9 +12.4% Industrial machinery bearings 183.1 205.7 +22.6 +12.3% Precision machinery and parts 33.0 37.
Slide 8: Operating Income: Factors Behind Increase (FY2012 to FY2013)
Operating Income: Factors Behind Increase (FY2012 FY2013) FY2013 (Billions of yen) Effect of exchange rate fluctuations 68.0 YOY increase of +35.6 +19.7 Reduction of external procurement costs FY2012 +11.4 +48.3 Volume increase etc. Decline in 32.4 sales price Increase in 12.7 7.0 other costs +17.2
Slide 9: Business Results by Customer Location
Business Results by Customer Location (Billions of yen) FY2012 FY2013 Increase/ Difference <Actual> <Actual> Decrease YOY YOY Net sales 732.8 871.7 +138.9 +19.0% Japan 333.3 329.1 -4.2 -1.3% Non-Japan 399.5 542.6 +143.1 +35.8% (Non-Japan ratio) (54.5%) (62.2%) The Americas 103.4 134.5 +31.1 +30.1% E
Slide 10: Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortization
Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortization Inventories Capital Expenditure Non-Japan Inventory turnover Non-Japan (Billions of yen) 6.9 (Billions of yen) 6.2 44.5 43.2 131.7 119.3 73.2 82.7 31.2 31.3 46.1 49.0 13.3 11.9 End of Mar. 2013 End of Mar. 2014
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2015
Consolidated Business Forecast for the Year Ending March 31, 2015 10
Slide 12: Summary of Consolidated Business Forecast for the Year Ending March 31, 2015
Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 Business Forecast ✓ Net sales ¥910.0 billion (+4.4% YoY) / Operating Income ¥75.0 billion (+10.3% YoY ) Ordinary Income ¥72.0 billion (+7.8% YoY) / Net Income ¥50.0 billion (+60.3% YoY) ✓ YOY increase in both sales and oper
Slide 13: Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 (FY2014)
Summary of Consolidated Business Forecast for the Year Ending March 31, 2015 (FY2014) (Billions of yen) FY2013 FY2014 1st half 2nd half Full year 1st half 2nd half Full year Difference Change <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Net sales 413.6 458.1 871.7 444.0 466.0
Slide 14: Forecast by Business Segment
Forecast by Business Segment (Billions of yen) FY2013 FY2014 1st half 2nd half Full year 1st half 2nd half Full year Difference Change <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Net sales 413.6 458.1 871.7 444.0 466.0 910.0 +38.3 +4.4% Industrial machinery business 115.9 127
Slide 15: Operating Income: Factors Behind Increase (FY2013 to FY2014 Forecast)
Operating Income: Factors Behind Increase (FY2013 FY2014 Forecast) YOY increase of FY2014 Forecast +7.0 Reduction of external procurement costs etc. 75.0 (Billions of yen) FY2013 +9.5 Decline in 68.0 sales price Volume increase etc. 8.0 Increase in +25.0 other costs 18.0 +15.5 10.0 14
Slide 16: Forecast by Customer Location
Forecast by Customer Location (Billions of yen) FY2013 FY2014 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 413.6 458.1 871.7 444.0 466.0 910.0 +38.3 +4.4% Japan 163.2 165.9 329.1 157.0
Slide 17: Progress of the 4th Mid-Term Management Plan
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 Numerical Targets Business Strategies Corporate Foundation FY2015 Develop management capability to Growth with focus on profitability handle ¥1 trillion in sales volume Net S
Slide 19: The 4th Mid-Term Management Plan: Business Forecast
The 4th Mid-Term Management Plan: Business Forecast FY2009-FY2012 Mid-term Plan FY2013-FY2015 Mid-term Plan Sales Operating income Operating income % 9.1% 7.8% 8.2% (Billions of Yen) 6.1% 6.1% (Billions of Yen) 4.4% 160 1,000 1.9% 910.0 940.0 871.7 710.4 732.8 120 800 733.2 587.6 600 75.0 86.0 68.0
Slide 20: Industrial Machinery Business: FY2014 Business Environment and Business Forecast
Industrial Machinery Business : FY2014 Business Environment and Business Forecast Demand trend by sector FY2013 vs FY2014 (Billions of yen) Net Sales Precision Machinery Sectors Overall Japan Non-Japan 400 and Parts Electrical / IT 300.0 300 255.8 255.0 Steel Plant Facilities 243.0 53.0 45.0 216.1 4
Slide 21: Industrial Machinery Business: Progress of Mid-Term Management Plan
Industrial Machinery Business : Progress of Mid-Term Management Plan Expanding Products Produced at Shenyang Plant Industrial Machinery Bearings – Expansion Strategies (Billions of yen) Sales Focusing on Asia Maximum utilization of Shenyang plant -Expanding sales through large volume / 5 standardize
Slide 22: Automotive Business: Vehicle Production Forecast and Business Forecast
Automotive Business Vehicle Production Forecast and Business Forecast Global vehicle production volume Japan N. America Europe China ASEAN6 Others Net Sales (Millions of vehicles) (Billions of yen) 100.0 92.9 87.1 89.4 590.5 615.0 590.0 Components Automotive 80.0 82.9 16.2 600 80.0 15.1 15.5 490.5 1
Slide 23: Automotive Business: Progress of Mid-Term Management Plan
Automotive Business Progress of Mid-Term Management Plan Automotive Bearings Automotive Components Expanding in demand growth regions Continued EPS Expansion Sales expansion in Asia (Billions of yen) 600 (Billions of yen) (China, ASEAN, India) EPS sales EPS product % Column EPS product % 150 Product
Slide 24: The 4th Mid-Term Management Plan: 2nd Year Policy and Summary
The 4th Mid-Term Management Plan: 2nd Year Policy and Summary Positioning of FY2014 and Management Policy The bridge-building year towards final-year targets A year in which NSK’s true strength will be tested ✓ End of boost from depreciation of the Japanese yen ✓ Enhance profitability through intern
Slide 25: (Supplementary Information)
(Supplementary Information) 24
Slide 26: Forecast by Geographical Segment
(Supplementary Information) Forecast by Geographical Segment (Billions of yen) FY2012 FY2013 FY2014 <Actual> <Actual> <Forecast> Net Sales 732.8 871.7 910.0 Japan 492.4 512.2 494.0 The Americas 102.3 132.4 143.0 Europe 104.4 126.8 131.0 Asia 193.7 288.2 321.0 Eliminations -160.0 -187.9 -179.0 Operat
Slide 27: Consolidated Balance Sheets
(Supplementary Information) Consolidated Balance Sheets Assets Liabilities and Net Assets Net assets Non-current liabilities Non-current assets Current assets Change YOY Current liabilities Ratio of net worth to total capital (Billions of yen) (Billions of yen) 1,000.9 +118.4 Change YOY 1,000.9 +118
Slide 28: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital Expenditure, Depreciation and Amortization, R&D Expenses (Billions of yen) FY2012 FY2013 FY2014 <Actual> <Actual> <Forecast> Capital expenditure ( ) 44.5 43.2 46.0 Excluding intangible assets (Billions of yen) FY2012 FY2013 FY2014 <Actual> <Actual> <Forecast> Depr