Slide 1: Financial Conference for the Results of the Year Ended March 31, 2006
FINANCIAL CONFERENCE FOR FOR THE THE RESULTS RESULTS OF OF THE THE YEAR YEAR ENDED ENDED MARCH MARCH 31, 31, 2006 2006 AND AND FORECASTS FORECASTS FOR FOR THE THE YEAR YEAR ENDING ENDING MARCH MARCH 31, 31, 2007 2007 Seiichi Asaka President & CEO May 17, 2006 NSK Ltd. Cautionary Statements with Resp
Slide 2: Business Results for the Year Ended March 31, 2006
Business Results for the Year Ended March 31, 2006
Slide 3: Summary of the Consolidated Business Results
Summary of the Consolidated Business Results for the year ended Mar. 31, 2006 Summary Summary Both sales and operating income posted records high for two consecutive years Sales and profits increased on a year-on-year basis Industrial machinery bearings Operating income ratio increased to 11% Automo
Slide 4: Business Environment and Strategy
Summary of the Consolidated Business Results for the year ended Mar. 31, 2006 Business Business Environment Environment and and Strategy Strategy 3
Slide 5: Summary of the Consolidated Business Results for the year ended Mar. 31 2006
Summary of the Consolidated Business Results for the year ended Mar. 31 2006 ¥100 Million Year ended Mar.31, Year ended Mar. 31, Year ended Mar. 31, Increase Difference ’05 ’06 ’06 /Decrease On a year- year-on- on-year <Actual> <Forecast> <Actual> On a year- year-on- on-year basis basis Sales 5,810
Slide 6: Business Results – By Business Segment
Business Results –By Business Segment – ¥100 Million Year ended Mar.31, Year ended Mar.31, Increase ’05 ’06 /Decrease Difference On a year- on- On a year- year-on- year-on- on-year basis <Actual> <Actual> year basis Sales 5,810 6,285 +475 +8.2% Industrial bearings 1,855 1,956 +101 +5.4% Automotive p
Slide 7: Business Results by quarter
Business Results by quarter ¥100 Million) Total ¥100 Million) ¥100 Million) Automotive products ¥100 Million) Sales Operating income margin 250 1800 left 0.1 1000 0.1 1600 0.1 0.1 200 0.1 800 1400 0.1 1200 0.1 0.1 150 0.1 600 1000 0.1 0.1 800 100 0.0 0.0 400 600 0.0 0.0 Operating 400 income 50 0.0 2
Slide 8: Operating Income: Improvement Factors
Operating Income: Improvement Factors Year ended Mar. 31, 2006 ¥100 million External procurement cost reductions, etc. 426 Group total +54 +43 Profit contribution -40 attributable to higher sales volume +21 383 -12 Year ended Mar. 31, 2005 +115 -95 7
Slide 9: Business Results – By Geographical Segment
Business Results – By Geographical Segment – ¥100 million Year ended Mar.31, Year ended Mar.31, Increase Difference ’05 ’06 /Decrease On a year- year-on- on-year basis On a year- year-on- on-year <Actual> <Actual> basis Sales 5,810 6,285 +475 +8.2% Japan 4,395 4,762 +367 +8.4% Americas 805 904 +99 +
Slide 10: Net Sales – By Customer Location
Net Sales –By Customer Location– Year ended Mar.31, Year ended Mar.31, Increase Difference ¥100 Million ’05 ’06 /Decrease On a year- year-on- on-year basis <Actual> <Actual> On a year- year-on- on-year basis Sales 5,810 6,285 +475 +8.2% Japan 3,103 3,301 +198 +6.4% Americas 823 923 +100 +12.3% Europ
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 Improved as reductions in interest-bearing debts brought Profits in sales of investment securities about an improvement in our financial position. Expenses related to busin
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets Year end of Year end of Year end of Increase/decrease Increase/decrease ¥100 Million Mar. 31, 2004 Mar. 31, 2005 Mar. 31, 2006 on a year- year-on- on-year on a year- year-on- on-year basis basis (Without effect of Amatsuji) Amatsuji) Assets Current assets 2,955 2,787 3,13
Slide 13: Inventories and Interest-Bearing Debts
Inventories and Interest-Bearing Debts – Inventory increased due to increase in sales Debt increased as a result of Amatsuji acquisition \ \ Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31,
Slide 14: Capital Expenditures, Depreciation & Amortization
Capital Expenditures, Depreciation & Amortization Capital \ expenditure Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, 2004 2005 2006 Depreciation \ Year ended Mar. 31, Year ended Mar. 31, Year ended Mar. 31, 13 2004 2005 2006
Slide 15: Consolidated Cash Flow
Consolidated Cash Flow Year ended Mar. 31, 2006 Year ended Year ended Year ended Effect of (Without effect ¥100 Million Mar. 31, 2004 Mar. 31, 2005 Mar. 31, 2006 Amatsuji of Amatsuji) Amatsuji) Cash flow provided by Operating activities 379 579 663 663 Cash flow used in Investing activities -170 -31
Slide 16: Forecasts for the Year Ending March 31, 2007
Forecasts for the Year Ending March 31, 2007
Slide 17: Forecasts for the Year Ending Mar. 31, 2007
Forecasts for the Year Ending Mar. 31, 2007 Full Fullyear yearforecast forecast ’ Forecasted Forecastedbusiness businessenvironment environmentfor forthe theyear yearending endingMar. Mar.31, 31,2007 2007 16 16
Slide 18: Forecasts for the Year Ending Mar. 31, 2007
Forecasts for the Year Ending Mar. 31, 2007 ¥100 million Year ended Mar. 31, 2006 Year ending Mar. 31, 2007 Increase /Decrease 1st half 2nd half Full year 1st half 2nd half Full year Actual Actual Actual Forecast Forecast Forecast On a year- year-on- on-year basis Sales 3,029 3,256 6,285 3,350 3,450
Slide 19: Key Strategies for the Year Ending Mar. 31, 2007
Key Strategies for the Year Ending Mar. 31, 2007 Establish foundation for 10% operating profit margin : Mid-term target for the year ending Mar. 31, 2009 Industrial bearings: Expand sales with improvement and expansion of each sector/region activities Secure steady order for sustained growth Automot
Slide 20: Forecasts – By Business Segment
Forecasts –By Business Segment– ¥100 million Year ended Mar. 31, 2006 Year ending Mar. 31, 2007 Increase 1st half 2nd half Full year 1st half 2nd half Full year /Decrease Actual Actual Actual Forecast Forecast Forecast On a year- year-on- on- year basis Sales 3,029 3,256 6,285 3,350 3,450 6,800 +515
Slide 21: Operating Income: Improvement Factors
Operating Income: Improvement Factors Year ending Mar. 31, 2007 ¥100 million External 520 Group total procurement cost reductions +15 Profit contribution attributable to +50 higher sales volume +94 -40 426 +140 -15 Year ended Mar. 31, 2006 -56 20
Slide 22: Forecasts – By Geographical Segment
Business Results – By Geographical Segment – ¥100 million Year ended Mar. 31, 2006 Year ending Mar. 31, 2007 Increase /Decrease 1st half 2nd half Full year 1st half 2nd half Full year On a year- year- Actual Actual Actual Forecast Forecast Forecast on- on-year basis Sales 3,029 3,256 6,285 3,350 3,4
Slide 23: Forecasts – Net Sales By Customer Location
Net Sales –By Customer Location– ¥100 million Year ended Mar. 31, 2006 Year ending Mar. 31, 2007 1st half 2nd half Full year 1st half 2nd half Full year Increase /Decrease Actual Actual Actual Forecast Forecast Forecast On a year- year-on- on- year basis Sales 3,029 3,256 6,285 3,350 3,450 6,800 +51
Slide 24: Reference
Reference ¥100 million Year ending Mar. 31, 2007 Forecast Capital expenditure 355 Japan 231 Overseas 124 Americas 32 Europe 22 Asia 70 ¥100 million Year ending Mar. 31, 2007 Forecast Depreciation 320 ¥100 million Year ending Mar. 31, 2007 Forecast 23 R&D 100