Slide 1: Financial Conference for the Results of the Six Months Ended September 30, 2004
FINANCIAL CONFERENCE FOR THE RESULTS OF THE SIX MONTHS ENDED SEPTEMBER 30, 2004 AND FORECASTS FOR THE YEAR ENDING MARCH 31, 2005 Seiichi Asaka President & CEO November 04, 2004 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to pl
Slide 2: Business Results for the Six Months Ended September 30, 2004
Business Results for the Six Months Ended September 30, 2004
Slide 3: Summary of Consolidated Business Results for the First Half of FY 2004: Business Environment
Summary of the Consolidated Business Results for the First Half of FY 2004 Business environment of the first half of FY 2004 Strong demand continues, especially in Japan and Asia Healthy automotive production in Japan (5% increase in completed car production and 18% increase in knock-down set produc
Slide 4: Summary of the Consolidated Business Results for the First Half of FY 2004
Summary of the Consolidated Business Results for the First Half of FY 2004 Business results for the first half of FY 2004 Increase in both sales and profits Sales: Up 13.2% (compared to the same period last year) Operating income: Up 105.6% (compared to the same period last year) Business results by
Slide 5: Summary of the Consolidated Business Results for the First Half of FY 2004
Summary of the Consolidated Business Results for the First Half of FY 2004 (6 months ended Sep. 30, ‘03) (6 months ended Sep. 30, ‘04) (6 months ended Sep. 30, ‘04) Difference (amount) Difference (%) compared to the compared to the (¥100 million) FY ’03:1st half FY ’04:1st half FY ’04:1st half same
Slide 6: Net Sales – By Business Segment
Net Sales –By Business Segment – (6 months ended Sep. 30, ‘03) (6 months ended Sep. 30, ‘04) (6 months ended Sep. 30, ‘04) Difference (amount) Difference (%) compared (¥100 million) FY ’03:1st half FY ’04:1st half FY ’04:1st half compared to the same to the same period last <Actual> <Revised forecas
Slide 7: Net Sales – By Customer Location
Net Sales –By Customer Location– (6 months ended Sep. 30, ‘03) (6 months ended Sep. 30, ‘04) (6 months ended Sep. 30, ‘04) Difference (amount) Difference (%) compared (¥100 million) FY ’03:1st half FY ’04:1st half FY ’04:1st half compared to the same to the same period last <Actual> <Revised forecas
Slide 8: Business Results – By Geographical Segment
Business Results – By Geographical Segment – (6 months ended Sep. 30, ‘03) (6 months ended Sep. 30, ‘04) (6 months ended Sep. 30, ‘04) Difference (amount) Difference (%) (¥100 million) FY ’03:1st half FY ’04:1st half FY ’04:1st half compared to the same compared to the same <Actual> <Revised forecas
Slide 9: Operating Income: Improvement Factors
Operating Income: Improvement Factors (FY ’03:1st half VS FY ’04:1st half) FY ‘04: (¥100 million) Group total 1st half Business Others 195 restructuring External activities in +15 Price Europe procurement increases cost +5 Profit reductions +5 contribution attributable to higher +23 sales volume +10
Slide 10: Business Results – By Business Segment
Business Results –By Business Segment – (6 months ended Sep. 30, ‘03) (6 months ended Sep. 30, ‘04) (6 months ended Sep. 30, ‘04) Difference (amount) Difference (%) (¥100 million) FY ’03:1st half FY ’04:1st half FY ’04:1st half compared to the same compared to the same <Actual> <Revised forecast> <A
Slide 11: Non-operating Income and Losses, Extraordinary Income and Losses
Non-operating Income and Losses, Extraordinary Income and Losses Non-operating income and losses Extraordinary income and losses Balance of financial revenue and expense Extraordinary income arose from the the partial improved due to the reduction of adoption of a defined contribution pension plan i
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets (¥100 million) FY 2003 FY 2004 (6 months ended Sep. 30, ‘03) (Year ended Mar. 31, ‘04) (6 months ended Sep. 30, ‘04) Difference Interim Year-end Interim (Compared to FY ’03: Year-end) Assets Current assets 2,829 2,955 2,844 -111 Non- Non-current assets 3,331 3,264 3,378 +
Slide 13: Inventories and Capital Expenditures
Inventories and Capital Expenditures Inventories Capital expenditures Inventory levels in Japan increased due to the Further capital expenditures will be made increase in sales consistent with our growth strategies APS (Advanced Production System) activities will be continued to further reduce inven
Slide 14: Interest Bearing Debts
Interest Bearing Debts Continue to reduce interest-bearing debts (¥100 million) D/E ratio (times) 1.57 1.31 1.31 1.27 1.21 1.08 2,724 2,678 2,614 2,458 2,465 556 514 554 2,274 403 483 356 Overseas 2,060 2,055 2,168 2,164 1,982 1,918 Japan FY 1999 (Year-end) FY 2000 (Year-end) FY 2001 (Year-end) FY 2
Slide 15: Source of Funds: Consolidated Cash Flow
Consolidated Cash Flow (FY 2004: 1st half) ¥100 million (Excluding the effect of exchange rate fluctuations) (1) Cash flow provided by (2) Cash flow used in (3) Cash flow used in Operating activities +210 Investing activities -135 Financing activities -209 Depreciation Cash decrease ¥13.8 billion 13
Slide 16: Forecasts for the Year Ending March 31, 2005
Forecasts for the Year Ending March 31, 2005
Slide 17: Revised Forecasts for FY 2004: Full Year
Revised forecasts for FY 2004: Full Year Newly revised full year forecast <Upward revision> Sales: ¥580.0 billion, Operating income: ¥39.5 billion Forecasted business environment for FY 2004: 2nd half [Japan] Machine tools, General industrial sector: Strong demand expected to continue Automotive pro
Slide 18: Revised Forecasts for FY 2004
Revised Forecasts for FY 2004 (¥100 million) FY 2003 FY 2004 Difference Full year Full year 1st half Full year (amount) (Ended Mar. 31, ‘04) (Ending Mar. 31, ‘05) (Ended Sep. 30, ‘04) (Ending Mar. 31, ‘05) compared to the same <Actual> <Revised forecast> <Actual> <New forecast> period last year Sale
Slide 19: Revised Forecasts – By Business Segment
Revised Forecasts –By Business Segment– (¥100 million) FY 2003 FY 2004 Difference Full year Full year 1st half Full year (amount) (Ended Mar. 31, ‘04) (Ending Mar. 31, ‘05) (Ended Sep. 30, ‘04) (Ending Mar. 31, ‘05) compared to the same <Actual> <Revised forecast> <Actual> <New forecast> period last
Slide 20: Revised Forecasts – By Customer Location
Revised Forecasts –By Customer Location– (¥100 million) FY 2003 FY 2004 Difference Full year Full year 1st half Full year (amount) (Ended Mar. 31, ‘04) (Ending Mar. 31, ‘05) (Ended Sep. 30, ‘04) (Ending Mar. 31, ‘05) compared to the same period <Actual> <Revised forecast> <Actual> <New forecast> las
Slide 21: Revised Forecasts – By Geographical Segment
Revised Forecasts –By Geographical Segment– (¥100 million) FY 2003 FY 2004 Difference Full year Full year 1st half Full year (amount) (Ended Mar. 31, ‘04) (Ending Mar. 31, ‘05) (Ended Sep. 30, ‘04) (Ending Mar. 31, ‘05) compared to the same <Actual> <Revised forecast> <Actual> <New forecast> period
Slide 22: Revised Forecasts – By Business Segment
Revised Forecasts –By Business Segment– (¥100 million) FY 2003 FY 2004 Difference Full year Full year 1st half Full year (amount) (Ended Mar. 31, ‘04) (Ending Mar. 31, ‘05) (Ended Sep. 30, ‘04) (Ending Mar. 31, ‘05) compared to the same <Actual> <Revised forecast> <Actual> <New forecast> period last
Slide 23: Pursuit of our Mid-term Goals
Focal Activities of our Mid-term Business Plan Pursuit of our Mid-term Goals Maintain Strengthen Improve growth Corporate profitability strategy Governance 22
Slide 24: Focal Activities for the Second Half of FY 2004
Focal Activities for the Second Half of FY 2004 To Achieve our Mid-term Goals Adapt our businesses to changes in market environment Reflect cost increases into our product prices Increase production capacity and improve product mix Accelerate the expansion of our China business 23