Slide 1: Consolidated Business Results for FY2020 and Forecast
FINANCIAL CONFERENCE Consolidated Business Results for FY2020 and Forecast May 14, 2021 NSK Ltd. President and CEO Akitoshi Ichii Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance that are not hist
Slide 2: Contents
Contents 1. Consolidated Business Results for the Year Ended March 31, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 and future policy （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2021
1. Consolidated Business Results for the Year Ended March 31, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 and future policy （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2021
Summary of Consolidated Business Results for the Year Ended March 31, 2021 Q4 FY2020 (vs. FY2019 Q4) (vs. FY2019 YTD) (Billions of yen) <Jan.-Mar.> (Apr.- Mar.) Sales 217.2 +27.8/ +14.7% 747.6 -83.5/ -10.0% Operating income 11.3 +10.5/ +1276% 6.4 -17.2/ -73.0% (%) (5.2%) (0.9%) Net income attributab
Slide 5: Trend of Business Performance for the Year Ended March 31, 2021
Trend of Business Performance for the Year Ended March 31, 2021 Full-year results Quarterly results (Billions of yen) FY2019 FY2020 Increase/ (Ref.) Sales Decrease 222.9 <Actual> <Actual> YOY Feb FCST 211.9 206.8 214.4 217.2 189.4 187.0 Sales 831.0 747.6 -83.5 740.0 Operating income 23.6 6.4 -17.2 4
Slide 6: Operating Income: Factors Behind Change (FY2019 to FY2020)
Operating Income: Factors Behind Change （FY2019 full year ⇒ FY2020 full year） (Billions of yen) Volume/ Mix Equity method profits / Other Effect of operating exchange expenses Reduction rate of costs fluctuations 0 Reduction of external procurement Decline in costs etc. sales price FY2019 FY2020 Ful
Slide 7: Business Results: Industrial Machinery Business
Business Results: Industrial Machinery Business (Billions of yen) (Billions of yen) Increase/ FY2019 FY2020 Difference Decrease Ind BRG Precision S.I S.I (%) <Actual> <Actual> YOY YOY 7.1% 6.6% 5.1% 4.2% 4.2% 3.1% 1.5% Sales 284.4 275.2 -9.2 -3.2% -1.2% 79.0 Industrial 74.4 71.9 72.3 69.4 68.8 12.6
Slide 8: Business Results: Automotive Business
Business Results: Automotive Business (Billions of yen) (Billions of yen) Increase/ FY2019 FY2020 Difference Auto BRG Auto Comp S.I S.I (%) Decrease <Actual> <Actual> YOY YOY 4.0% 3.3% 2.7% 2.9% 1.3% -0.7% -1.1% Sales 521.9 449.7 -72.1 -13.8% Automotive 141.6 -18.1% 261.3 233.5 -27.8 -10.6% 134.0 13
Slide 9: Consolidated Business Forecast for the Year Ending March 31, 2022 and Future Policy
1. Consolidated Business Results for the Year Ended March 31, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 and future policy （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 8
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2022
Consolidated Business Forecast for the Year Ending March 31, 2022 FY2019 FY2020 FY2021 vs. FY2020 vs. FY2019 (Billions of yen) Actual Actual FCST Increase/ Difference Increase/ Difference Decrease Decrease Sales 831.0 747.6 860.0 +112.4 +15.0％ +29.0 +3.5% Segment Income 25.6 4.9 44.0 +39.1 +799.4％ +
Slide 11: Forecast for FY2021 by Business Segment
Forecast for FY2021 by Business Segment ●Industrial machinery business ●Automotive business Demand trend by sector Global vehicle production (million) FY20 2H vs FY21 1H vs FY21 2H vs 95.1 83.9 -9% 86.5 FY20 1H FY20 2H FY21 1H Japan 9.2 76.5 Machine ↑↑↑ ↑↑ ↑↑ North- 16.9 9.1 +13% 8.6 Tools America 7
Slide 12: Operating Income: Factors Behind Change (FY2020 to FY2021 Forecast)
Operating Income: Factors Behind Change （FY2020 ⇒ FY2021 Forecast） Increase /Decrease in (Billions of yen) Increase / external Decrease in procurement sales price costs Reduction Volume/ Mix Transfer of costs Equity method of land profits / Other operating expenses ✔Labor costs -7.0 ✔Depreciation an
Slide 13: Progress on the 6th Mid-term Management Plan
Progress on the 6th Mid-term Management Plan ✔FY18 -> FY21 Demand environment has deteriorated due to the impact of COVID-19. We will undershoot the targets for growth, profitability, and efficiency. ✔Sales -13%, Industry Machinery business -5%, Automotive business -18％ : Bearings -5%, Components -2
Slide 14: 6th MTP: Operational Policy for the final year
6th MTP: Operational Policy for the final year Setting “Safety” “Quality” ”Compliance” “Environment” as NSK’s 4 core values Improvement in structure and profitability ●Maximize sales opportunities, strengthen supply structure in response to demand increase. ●Responding to raw material cost increases
Slide 15: Change & Go Beyond: Initiatives with an eye on the next MTP
Initiatives with an eye on the next MTP ≪Three key management initiatives≫ ESG Enhancement of Growth with management managerial resources profitability Challenges for carbon neutrality Promotion of Recovery and growth digitalization ●Year 2026 ●Contribute to the further ●Launch new products Offset C
Slide 16: NSK's value creation toward a sustainable society: New products, new fields
NSK’s value creation toward the realization of a sustainable society New products, new fields Create value for “environment” and “electrification” Renewable Energy EV ・ Hybrid Wind Contributing to high durability, high reliability, smaller Turbines and lighter weight Bearing for power generator CMS
Slide 17: NSK's value creation toward the realization of a sustainable society
NSK’s value creation toward the realization of a sustainable society Energy-saving measures in business activities Improve the efficiency of Increase green electricity usage heat treatment processes Installed solar and wind power Fully switched to green electricity at Added more high-frequency induc
Slide 18: Supplementary Information
1. Consolidated Business Results for the Year Ended March 31, 2021 2. Consolidated Business Forecast for the Year Ending March 31, 2022 and future policy （Supplementary Information） Copyright NSK Ltd. All Rights Reserved. 17
Slide 19: Supplementary Information: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment (Billions of yen) FY2019 Actual FY2020 Actual Full year YOY Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Decrease Difference Total Sales 434.8 396.2 831.0 315.9 431.7 747.6 -83.5 -10.0% Segment Income 16.7 8.8 25.
Slide 20: Supplementary Information: Financial Forecast for FY2021 by Business Segment
Supplementary Information : Financial Forecast for the Year ending March 31, 2022 by Business Segment (Billions of yen) FY2020 Actual FY2021 FCST Full year YOY Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Decrease Difference Total Sales 315.9 431.7 747.6 425.0 435.0 860.0 +112.4
Slide 21: Supplementary Information: Sales Results by Region
Supplementary Information : Sales Results by Region FY2019 FY2020 Full year YOY (Billions of 1st half 2nd half Full year 1st half 2nd half Full year Increase/ yen) Difference Decrease Sales 434.8 396.2 831.0 315.9 431.7 747.6 -83.4 -10.0% Japan 161.7 152.5 314.3 112.7 163.1 275.8 -38.5 -12.3% Non-Ja
Slide 22: Supplementary Information: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Assets Liabilities / Total equity (Billions (Billions of yen) of yen) +137.6 1,167.5 +137.6 1,167.5 1,029.9 1,029.9 +82.3 300.2 Current 217.9 +67.6 534.0 liabilities Current assets 466.5 Non-Current +8.4 293.8 285.4 liabilities Ratio of equity at
Slide 23: Supplementary Information: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt Inventories Interest-bearing debt Net D/E ratio Inventory turnover 0.28 0.28 5.3 4.9 +53.3 -2.9 (Billions (Billions of yen) 332.4 of yen) 153.0 150.0 279.2 +38.7 68.9 Non-Japan 30.2 Non-Japan 90.3 -1.7 88.6 249.0 +14.5 263.5 Japan Japan
Slide 24: Supplementary Information: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses FY2019 FY2020 FY2021 Actual Actual FCST （Billions of yen） Full year Q1 Q2 Q3 Q4 Full year Full year Capital Expenditures 54.9 6.4 7.5 7.5 15.9 37.3 51.0 Capital Expenditures 50.3 5.8 6.8 6.9 14.6 34.1 51.0
Slide 25: Mission Statement and 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™. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout t