Slide 1: Consolidated Business Results for the Second Quarter ended September 30, 2023
NSK Ltd. FINANCIAL CONFERENCE Consolidated Business Results for the Second Quarter ended September 30, 2023 November 2, 2023 Cautionary Statement with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance that are not historical
Slide 2: Agenda
1. Consolidated Business Results for the Six Months Ended September 30, 2023 2. Revised Consolidated Business Forecast for the Year Ending March 31, 2024 3. Progress of Mid-Term Plan 2026 （Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 3: Agenda: Consolidated Business Results
1. Consolidated Business Results for the Six Months Ended September 30, 2023 2. Revised Consolidated Business Forecast for the Year Ending March 31, 2024 3. Progress of Mid-Term Plan 2026 （Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 4: Key Points - Consolidated Business Results for FY2023 H1
Key Points - Consolidated Business Results for FY2023 H1 ✓FY2023 H1 Actual (Continuing operations) Industrial: Adjustment phase continued. Economic slowdown in China. Automotive: Production volume gradually recovering from semiconductor shortages. ≫ Sales ¥386.7 bn YOY +¥0.1% ≫ Operating income ¥11.
Slide 5: Summary of Consolidated Business Results for FY2023 H1
Summary of Consolidated Business Results for FY2023 H1 ✓ YOY sales remained flat even with automotive sales up, depreciation of the Yen, and transferring increasing costs to sales prices. Real volume declined excluding currency impact and cost transfer. ✓ Sales and profits below forecast due to lowe
Slide 6: Operating Income: Factors Behind Change (FY2022 H1 to FY2023 H1)
Operating Income: Factors Behind Change （FY2022 H1 ⇒ FY2023 H1）(Continuing operations) (Billions of yen) Volume/ Mix ✔ Cost of steel, parts, energy, etc. -4.3 ✔ Labor cost increase -3.8 Equity Transfer of Effect of method increased Increase/ exchange rate profits etc. costs Decrease fluctuations to
Slide 7: Industrial Machinery Business
Industrial Machinery Business ■Sales (Ind BRG) ■Sales (Precision) ■S.I. ● S.I.(%) (Billions Increase/ Difference 100.1 of yen) FY2022 FY2023 Decrease YOY YOY (Excluding 95.2 95.3 96.3 93.4 H1 H1 effect of 88.3 85.1 85.9 Actual Actual (Effect of exchange exchange rate fluctuations) rate fluctuations)
Slide 8: Automotive Business
Automotive Business ■Sales ■S.I. ● S.I.(%) (Billions FY2022 FY2023 Increase/ Decrease Difference YOY (FY2021 ■Sales(Auto BRG+AT) ■Sales(Steering) YOY (Excluding of yen) H1 H1 (Effect of exchange effect of exchange 129.6 The steering business is classified Actual Actual rate fluctuations) rate fluctu
Slide 9: Agenda: Revised Consolidated Business Forecast
1. Consolidated Business Results for the Six Months Ended September 30, 2023 2. Revised Consolidated Business Forecast for the Year Ending March 31, 2024 3. Progress of Mid-Term Plan 2026 （Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2024
Consolidated Business Forecast for the Year Ending March 31, 2024 ✓Revised downward from July forecast ■Key Points of Revision ≫Industrial Machinery: Sluggish China market to continue in H2 ≫Automotive: Production volume exceeding initial expectation Full year global automotive production volume: 89
Slide 11: Operating Income: Factors Behind Change (July Forecast to Revised Forecast)
Operating Income: Factors Behind Change （FY2023 July Forecast ⇒ FY2023 Revised Forecast） (Billions (Continuing operations) of yen) Volume/ Mix Transfer of increased Inflation/ Cost costs to Labor cost reductions sales prices increase Equity Effect of method exchange rate profits etc. fluctuations In
Slide 12: Operating Income: Factors Behind Change (FY2022 Actual to FY2023 Forecast)
Operating Income: Factors Behind Change （FY2022 Full Year Actual ⇒ FY2023 Full Year Forecast） (Continuing operations) (Billions of yen) Volume/ Mix Transfer of increased Increase/ Effect of Equity costs to Decrease exchange rate method sales prices in costs fluctuations profits etc. Inflation/ Labor
Slide 13: Consolidated Business Forecast by Business Segment
Consolidated Business Forecast by Business Segment Industrial • Demand for machine tools and semiconductor manufacturing equipment remain flat at Machinery the H1 level Business • Higher sales and sales and profits in H2 vs. H1 due to review of production and sales expansion FY2023 FY2023 FY2023 FY2
Slide 14: Agenda: Progress of Mid-Term Plan 2026
1. Consolidated Business Results for the Six Months Ended September 30, 2023 2. Revised Consolidated Business Forecast for the Year Ending March 31, 2024 3. Progress of Mid-Term Plan 2026 （Supplementary Information） Copyright NSK Ltd. All Rights Reserved.
Slide 15: Progress of Mid-Term Plan 2026 (MTP2026)
Progress of Mid-Term Plan 2026 Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓ Progress of Mid-Term Plan 2026 (MTP2026) ≫ Established steering business joint venture with JIS ≫ Making steps toward portfolio transformation (Expanding industrial sales, EV sales, and new products) ≫ Industrial Mac
Slide 16: Growth with Profitability - Industrial Machinery Business
Progress of Mid-Term Plan 2026 Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓Growth with Profitability – Industrial Machinery Business MTP2026 Strategy ≫ Growth in high profitability areas, sales expansion in aftermarket and precision machinery and parts ≫ Expand sales by differentiating produ
Slide 17: Growth with Profitability - Automotive Business
Progress of Mid-Term Plan 2026 Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓Growth with Profitability – Automotive Business MTP2026 Strategy ≫ Cover the decrease in demand for ICE by increasing market share and selling new products ≫ Improve profitability by securing high share of EV orders a
Slide 18: Grow New Products in New Fields; Tie-ups and alliances
Progress of Mid-Term Plan 2026 Mid-Term Initiatives Toward 10% ROE and Higher PBR Bearings & Beyond to Drive Portfolio Transformation and Change & Go Beyond to Create New Products Fulfilling Increasingly Sophisticated Market Needs ✓Grow New Products in New Fields FY26 Sales Target ¥50 bn ✓Tie-ups an
Slide 19: Stable Shareholder Returns
Progress of Mid-Term Plan 2026 Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓Mid-Term Plan Policy ・ Dividend payout ratio: 30～50％ Continue Policy of Stable Shareholder Returns・ Total return ratio: Approx. 50% Cumulative total over five-year MTP period ・ Buybacks: Flexibly implemented ✓Progress
Slide 20: Supplementary Information
Supplementary Information Copyright NSK Ltd. All Rights Reserved.
Slide 21: ESG Management and Enhancement of Managerial Resources
Supplementary Information : ESG Management and Enhancement of Managerial Resources ✓ESG Management ”Create” Reduce CO2 emissions from business FY2022 -43.6％ (FY26 target: -50%) activities (Scope1 + 2 compared to FY17) Environment ”Utilize” FY2022 Reduce CO2 emissions through utilization of our produ
Slide 22: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment 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 eq
Slide 23: 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 24: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Due to the classification of the steering business as a discontinued FY22 FY23 Ex. Rate operation in FY23 Q1, the assets and liabilities of the discontinued End of Q4 End of Q2 operation are shown in parentheses as "Assets and liabilities related
Slide 25: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt FY22 FY23 Due to the classification of the steering business as a discontinued Ex. Rate End of Q4 End of Q2 operation in FY23 Q1, the figures for FY23 excludes 1USD 133.5 149.6 the steering business. Net D/E ratio includes the steering b
Slide 26: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
Supplementary Information : Capital Expenditures, Depreciation and Amortisation, R&D Expenses 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
Slide 27: 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 TM. As a truly international enterprise, we are working across national boundaries to improve relationships between people throughout