Slide 1: Consolidated Business Results for Fiscal 2023
NSK Ltd. Consolidated Business Results for Fiscal 2023 Cautionary Statements with Respect to Forward-Looking Statements May 15, 2024 Statements made in this report with respect to plans, strategies and future performance that are not historical fact are forward-looking statements. NSK cautions that
Slide 2: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2024 2. Consolidated Business Forecast for the Year Ending March 31, 2025 3. Progress on Mid-Term Management Plan 2026 and FY2026 New Targets (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 3: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2024 2. Consolidated Business Forecast for the Year Ending March 31, 2025 3. Progress on Mid-Term Management Plan 2026 (MTP2026) and FY2026 New Targets (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 4: Key Points - Consolidated Business Results for FY2023
Key Points - Consolidated Business Results for FY2023 ✓FY2023 Actual (Continuing Operations) Industrial: Demand adjustment phase continued through whole year Automotive: Steady results supported by higher global automotive production ≫ Sales ¥788.9 bn (YOY + 1.6%) ≫ Operating income ¥ 27.4 bn (YOY -
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2024
Summary of Consolidated Business Results for the Year Ended March 31, 2024 ✓ Sales up, profits down YOY; Sales down excluding transfer of cost increases to sales prices and currency impact ✓ Lower than forecast due to downside impact of Industrial Machinery Business ✓ Net income includes reversal of
Slide 6: Operating Income: Factors Behind Change (FY2022 to FY2023)
Operating Income: Factors Behind Change （FY2022 Full year ⇒ FY2023 Full year）(Continuing operations) (Billions of yen) Volume/ Mix ✔ Cost of steel, parts, energy, etc. -4.6 ✔ Labor cost increase -7.5 ✔ Depreciation and amortisation, equipment -1.5 ✔ SG&A, etc. -1.5 ✔ One-time expenses -1.0 Equity Ef
Slide 7: Industrial Machinery Business
Industrial Machinery Business ■Sales (Ind BRG) ■Sales (Precision) ■S.I. ● S.I.(%) Increase/ Difference (Billions FY2022 FY2023 Decrease YOY 100.1 of yen) Full year Full year YOY (Excluding 95.2 95.3 96.3 93.4 83.9 89.9 effect of (Effect of exchange Actual Actual exchange rate fluctuations) rate fluc
Slide 8: Automotive Business
Automotive Business Increase/ Difference ■Sales ■S.I. ● S.I.(%) FY2022 FY2023 (Billions Full year Full year Decrease YOY YOY (Excluding (FY21 ■Sales(Auto BRG+AT) ■Sales(Steering)) effect of (Effect of exchange of yen) Actual Actual exchange rate fluctuations) rate fluctuations) The steering business
Slide 9: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2024 2. Consolidated Business Forecast for the Year Ending March 31, 2025 3. Progress on Mid-Term Management Plan 2026 (MTP2026) and FY2026 New Targets (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 10: Summary of Consolidated Business Forecast for the Year Ending March 31, 2025
Summary of Consolidated Business Forecast for the Year Ending March 31, 2025 (FY24) ✓FY24 Full Year Forecast (Continuing Operations） • Sales increase in Industrial Machinery and capital expenditure recovery from second half of FY24 • Global automotive production volume: 90 million vehicles (same lev
Slide 11: Consolidated Business Forecast for the Year Ending March 31, 2025
Consolidated Business Forecast for the Year Ending March 31, 2025 ✓ Increase in sales and profits YOY driven by sales expansion and demand recovery in the industrial machinery business and cost reduction activities. Forecast includes one-time structural reform expenses. FY2024 YOY FY2023 Increase/ (
Slide 12: Operating Income: Factors Behind Change (FY2023 to FY2024)
Operating Income: Factors Behind Change （FY2023 Full year Actual ⇒ FY2024 Full year Forecast） (Continuing operations) Transfer of Equity (Billions of yen) increased method One-time expenses costs profits etc. to sales prices FY23 FY24 Inflation/ Labor cost Volume/ Mix increase Cost reductions / Effe
Slide 13: Forecast for FY2024 by Segment
Forecast for FY2024 by Segment ≫ Industrial Machinery Business Demand Trends by Sector (NSK forecast） FY24 H1 FY24 H2 Industrial Machinery vs vs FY2023 FY2024 Increase/ Difference FY2024 FY2024 Bearings FY23 H2 FY24 H1 Full year Full year Decrease H1 H2 (Billions of yen) Actual Forecast YOY YOY Fore
Slide 14: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2024 2. Consolidated Business Forecast for the Year Ending March 31, 2025 3. Progress on Mid-Term Management Plan 2026 (MTP2026) and FY2026 New Targets (Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 15: MTP2026 Progress on Key Management Tasks
MTP2026 Progress on Key Management Tasks We aim to be a needed and trusted company that contributes to the development of a sustainable society by creating new value through the fusion of tribology and information technology Create ESG Management new value Growth with Profitability Four Core Values
Slide 16: MTP2026 Change in Business Environment
MTP2026 Change in Business Environment ✓Continued sluggish demand against backdrop of rising interest rates in many countries and a slowdown in the Chinese economy. ✓Global inflation including energy and labor costs. Industrial Machinery: Demand adjustment continued through the second half of the pe
Slide 17: MTP2026: New Targets 1
MTP2026: New Targets 1 ✓Targets Revised Down: Sales ¥900.0 bn, Operating income ¥75.0 bn (8%) and 8% ROE - New targets exclude sales and profits of Steering Business - Maintained sales targets in Industrial and Automotive - Adjusted Industrial operating income target to reflect decline in real volum
Slide 18: MTP2026: New Targets 2
MTP2026: New Targets 2 ✓4% CAGR from FY23 to FY26. ✓Increased operating income ratio and ROE through growth and 10％ expansion and improved structure. Operating 5.6% Income (%) 8％ 4.4% 3.3% 3.4% 3.5% ROE ✓Growth (Billions 0.9% ✓Steady of yen) 2.8% 2.8% 3.0% 3％ Sales improvement 1.3% ・DX driving effic
Slide 19: Management Policy for Second Half of MTP2026 (FY24-FY26)
Management Policy for Second Half of MTP2026 (FY24-FY26) FY24-26 Goal Aim to strengthen business foundation through sales growth and portfolio reform to recover from deterioration in profitability due to change in business environment Initiatives Management Policy (New Initiatives) ✓Continue initiat
Slide 20: FY23 to FY26 Profitability Improvement Roadmap
FY23 → FY26 Profitability Improvement Roadmap Operating income (Billions of yen) (Operating income %) Structural reforms Growth/Expansion (8％) + 25.0 Unit cost + 40.0 Transfer Fixed costs reductions increasing reductions costs to sales Structural Market Growth Other prices Effect of reforms Ultra- S
Slide 21: Challenges: Industrial Machinery Business 1
Challenges: Industrial Machinery Business 1 ✓Although lower demand than forecast, continue strategy to expand in electrification, automation, digitalization, and environment. ✓E&E declined with market deterioration and inflation; restructured production to rebuild profitability. ≫ Change in business
Slide 22: Challenges: Industrial Machinery Business 2
Challenges: Industrial Machinery Business 2 Sales AM/CMS OEM, AM/CMS Precision (Billions of yen) ✓AM EU/US Sales Expansion Sales 100of yen) (Billions Products 150 OEM Americas 80 Collaboration with key distributors 100 Wind turbine bearing repair business 60 acquisition 40 50 Europe 20 Expand busine
Slide 23: Challenges: Automotive Business
Challenges: Automotive Business ✓Reviewed automotive production assumptions against plan (98 million units → 92 million units). ✓Continued to expand sales for EV. Restructured ICE product production due to contraction. ≫ Change in business ≫ Risks/Opportunities ≫ Challenges to Address environment ・R
Slide 24: Financial Strategy: Cash Allocation
Financial Strategy: Cash Allocation MTP2026 Basic Policy on Financial Strategy Investment for Sustainable Growth Growth with Enhance Managerial Resources Profitability ✓Capital Expenditure ¥280.0 bn/ 5 years E Remaining 3 years: S G ¥180.0 bn ≫Ordinary ≫Expansion Investment ≫New Technology M Investm
Slide 25: Grow New Products - Bearings & Beyond -
Grow New Products - Bearings & Beyond - ✓ Increase the added value of No. 1 products by advancing core technologies. ✓ Grow new products and create new value by expanding application of core technologies. Drive x Control Contribute to safe, secure society New Products ✓Co-bots ✓Contribute to Goal: ¥
Slide 26: Initiatives to Enhance Corporate Value
Initiatives to Enhance Corporate Value ✓Achieve profitable growth through Bearings & Beyond, DX, and Change & Go Beyond and foster a corporate culture that supports this growth. ✓Industrial MTP2026 FY30 ✓Precision Post2026 ✓Mobility Bearings Ind. 5：5 Auto Ind. 6：4 Auto & Beyond Portfolio Reform ✓Com
Slide 27: Materiality Addressed in MTP2026
Materiality Addressed in MTP2026 Connection of 3 Key Management Tasks and Materiality MTP2026 Corporate Core values SDGs Material topics Three key management Philosophy （related goals) issues 1. Pursue product safety and reliability ESG management Contribution to a safer, smoother society Enhancemen
Slide 28: Supplementary Information
（Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 29: Ref. ESG Management, Enhancing Management Resources
Ref. ESG Management, Enhancing Management Resources ✓ESG “Create” Reduce CO2 Emissions of Management business activities FY23 Outlook ‐52％ (Scope1+2 vs. FY17) (FY26 Goal -50%) Environment “Utilize” Reduce CO2 Emissions of FY23 Outlook 2.5 mil tons customers from product benefits (FY26 Goal 3.0 mil t
Slide 30: Ref. Challenges: Automotive Business
Ref. Challenges: Automotive Business ✓Key NSK Products as EV Market Expands Ball Screws for Electric- eAxle Bearings Hub Unit Bearings Hydraulic Brake Systems Sales Sales Expansion Expansion New Ceramic Overmolded Conductive balls bearings Brush Set ・Electric erosion problem ・Longer driving range ・D
Slide 31: Ref. Shareholder Return Policy
Ref. Shareholder Return Policy Continue Stable Shareholder Returns MTP2026 Current Status MTP2026 (FY24-26) Changes ・ Dividend payout ratio 30-50% ・Dividend payout ratio: 30-50％ ・ Total Return approx. 50% ・DOE with lower limit of about 2.5% (DOE: Dividend on equity attributable to owners of the pare
Slide 32: Financial Results by Business Segment (FY2023)
Supplementary Information : Financial Results by Business Segment (FY2023) Due to the classification of the steering business as a discontinued operation in FY23 Q1, the figures back to FY2022 have been retroactively updated to show as continuing operations excluding the steering business. Income fr
Slide 33: Financial Results by Business Segment (FY2024 Forecast)
Supplementary Information : Financial Results by Business Segment (FY2024 Forecast) Due to the classification of the steering business as a discontinued operation in FY23 Q1, the figures back to FY2022 have been retroactively updated to show as continuing operations excluding the steering business.
Slide 34: Sales by Customer Location
Supplementary Information: Sales by Customer Location Due to the classification of the steering business as a discontinued operation in FY23 Q1, the figures back to FY2022 have been retroactively updated to show as continuing operations excluding the steering business. Income from the equity in the
Slide 35: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet FY22 End of FY23 End of Due to the classification of the steering business as a discontinued operation in Ex. Rate Q4 Q4 FY23 Q1, the assets and liabilities of the discontinued operation are shown in parentheses as "Assets and liabilities related
Slide 36: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt FY22 End of FY23 End of Steering business classified as discontinued operation from FY23 Q1 Ex. Rate Q4 Q4 results; FY23 results show continuing operations excluding discontinued 1USD 133.5 151.4 operations. 1EUR 145.7 163.3 1CNY 19.4 20
Slide 37: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses Steering business classified as discontinued operation from FY23 Q1 results; FY23 results show continuing operations excluding discontinued operations. FY2022 FY2023 FY2024 Full year Full year Full year （Bi
Slide 38: Mission Statement, NSK Vision 2026
Mission Statement NSK contributes to a safer, smoother society and helps protect the global environment through its innovative technology integrating Motion & Control TM. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout