Nsk Ltd. · TSE:6471

Nsk — H1 FY2019 Earnings Presentation

28 slides from Nsk's earnings presentation, Nov 5, 2019

  1. Slide 1: Financial Conference: Consolidated Business Results and Forecast

    FINANCIAL CONFERENCE Consolidated Business Results and Forecast November 5, 2019 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies and future performance that are not historical fact are forward-looking statemen

  2. Slide 2: Contents

    Contents 1. Consolidated Business Results for the Six Months Ended September 30, 2019 2. Consolidated Business Forecast for the Year Ending March 31, 2020 3. Business Environment and Status of Initiatives by business segment (Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 1

  3. Slide 3: 1. Consolidated Business Results for the Six Months Ended September 30, 2019

    1. Consolidated Business Results for the Six Months Ended September 30, 2019 Copyright NSK Ltd. All Rights Reserved. 2

  4. Slide 4: Summary of Consolidated Business Results for the Six Months Ended September 30, 2019

    Summary of Consolidated Business Results for the Six Months Ended September 30, 2019 Business Environment ✓Uncertainty and stagnation of world economy persisted due to the prolonged US-China trade friction. ✓Demand decrease in both the industrial machinery and automotive businesses continued. ✓Excha

  5. Slide 5: Summary of Consolidated Business Results for the Six Months Ended September 30, 2019

    Summary of Consolidated Business Results for the Six Months Ended September 30, 2019 FY2018 FY2019 Increase/ 1st half 1st half Difference 1st half Decrease (Billions of yen) <Actual> <Actual> YOY <FCST> YOY Sales 509.6 434.8 -74.8 -14.7% 464.0 Operating income 45.0 15.8 -29.2 -64.9% 25.0 <%> <8.8%>

  6. Slide 6: Business Results: Industrial Machinery Business

    Business Results: Industrial Machinery Business Ind BRG Precision O.I. O.I. (%) FY2018 FY2019 Increase/ FY2019 12.7% 11.9% 12.1% 12.0% Difference 8.0% 5.8% 1st half 1st half Decrease 1st half YOY <Actual> <Actual> YOY <FCST> (Billions of yen) 69.3 66.6 68.2 65.9 60.8 58.9 Sales 135.9 119.7 -16.2 -11

  7. Slide 7: Business Results: Automotive Business

    Business Results: Automotive Business Auto BRG Auto Comp O.I. O.I. (%) FY2018 FY2019 Increase/ FY2019 8.3% Difference 6.6% 6.9% 1st half 1st half Decrease 1st half 4.0% 3.3% YOY 1.4% <Actual> <Actual> YOY <FCST> 183.3 174.3 171.6 160.5 155.2 Sales 357.6 302.2 -55.4 -15.5% 321.0 147.0 93.8 87.2 83.5

  8. Slide 8: Operating Income: Factors Behind Change

    Operating Income: Factors Behind Change (FY2018 1st half ⇒ FY2019 1st half) (Billions of yen) 45.0 Volume/Mix Reduction -25.4 of external Other operating procurement Increase expenses/ costs etc. in costs Equity method -1.8 +2.9 -1.1 -2.8 profits 15.8 Decline in Effect of -1.0 sales price/ exchange

  9. Slide 9: 2. Consolidated Business Forecast for the Year Ending March 31, 2020

    2. Consolidated Business Forecast for the Year Ending March 31, 2020 Copyright NSK Ltd. All Rights Reserved. 8

  10. Slide 10: Summary of Consolidated Business Forecast for the Year Ending March 31, 2020

    Summary of Consolidated Business Forecast for the Year Ending March 31, 2020 Forecasted Business Environment ✓Delay in economic recovery. ✓Industrial Machinery: Demand adjustment in machine tools, electrical, and semiconductors expected to be sustained. ✓Automotive: Global production volume to fall

  11. Slide 11: Summary of Consolidated Business Forecast for the Year Ending March 31, 2020

    Summary of Consolidated Business Forecast for the Year Ending March 31, 2020 FY2018 FY2019 Increase/ Full year 1st half 2nd half Full year Decrease Difference Full year <Actual> <Actual> ＜Revised FCST＞ ＜Revised FCST＞ YOY ＜May FCST＞ (Billions of yen) YOY Sales 991.4 434.8 425.2 860.0 -131.4 -13.3% 94

  12. Slide 12: Forecast by Business Segment

    Forecast by Business Segment FY2018 FY2019 Full year 1st half 2nd half Full year Increase/ Difference Full year ＜Revised ＜Revised Decrease <Actual> <Actual> YOY ＜May FCST＞ (Billions of yen) FCST＞ FCST＞ YOY Total Sales 991.4 434.8 425.2 860.0 -131.4 -13.3% 945.0 Operating income 79.3 15.8 16.2 32.0 -

  13. Slide 13: Operating Income: Factors Behind Change (FY2018 to FY2019 Revised Forecast)

    Operating Income: Factors Behind Change (FY2018 ⇒ FY2019 Revised Forecast) (Billions of yen) 79.3 Volume / Mix Reduction of -42.0 external Increase Other operating procurement in costs expenses/ Equity method costs etc. +0.2 +5.0 -5.5 profits 32.0 -3.5 Effect of -1.5 Decline in exchange rate sales p

  14. Slide 14: Management Policies in FY2019 2nd half

    Management Policies in FY2019 2nd half Exit strategies toward FY 2020 onward Implement measures toward sluggish demand and maximize profit at the time of volume recovery. -Short-term measures and structural enhancement: ✓Fixed cost reduction. ✓Management focusing on productivity. ✓Continuing invento

  15. Slide 15: 3. Business Environment and Status of Initiatives by business segment

    ３．Business Environment and Status of Initiatives by business segment Copyright NSK Ltd. All Rights Reserved. 14

  16. Slide 16: Industrial Machinery Business: Business Environment

    Industrial Machinery Business -Business Environment- [Demand trend by Sector] ↑ Increase, →Unchanged, ↓Decrease Actual 20/3 2H Forecast Forecast Sales / Operating Income 20/3 1H 20/3 2H vs. 20/3 1H 21/3 1H Ind BRG Precision O.I. Sector vs. vs. O.I.(%) As of As of 19/3 2H May 2019 Oct. 2019 20/3 2H 1

  17. Slide 17: Industrial Machinery Business: Initiative Status

    Industrial Machinery Business -Initiative status- Capture Demand in Growth Sectors : Railcars GAM sales expansion strategy （Global Aftermarket） 地域別鉄道事業規模推移 World railway business scale 26 (単位：兆円) 23 China：Expansion of railroads Extension of travel Paper (Unit: Trillion Yen) 22 EU :Higher performance

  18. Slide 18: Automotive Business: Business Environment

    Automotive Business -Business Environment- Global Vehicle Production Volume Sales / Operating Income Japan North America Europe China ASEAN6 Others Auto BRG Auto Comp O.I. O.I.(%) （unit : M） 100.0 94.4 95.1 92.8 95.1 8.9% 9.4% 7.5% 89.2 87.7 5.5% 13.9 15.0 14.7 15.2 371.4 2.3% 2.9% 13.5 80.0 4.1 4.0

  19. Slide 19: Automotive Business: Initiative Status

    Automotive Business -Initiative Status- Response to electrification EV Development in Seamless 2-speed e-axle concept. Further expansion in electric-powered vehicles. Traction Reducer＋Ultrahigh speed motor. FY30 forecast: electric-powered vehicles Compact, light-weight, Noise reduction ratio 57%(+4p

  20. Slide 20: NSK's Contribution to the Environment

    NSK’s Contribution to the Environment Maximize the environmental contribution through products and minimize the environmental impact from business activities ・Reduction in CO2 emissions. Target：- 60% by 2050 (vs. 2017) Goals ・Products that contribute to the environment by offsetting CO2 emissions. ・

  21. Slide 21: (Supplementary Information)

    (Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 20

  22. Slide 22: Sales & Operating Income Results by Business Segment

    (Supplementary Information) Sales & Operating Income Results by Business Segment FY2018 FY2019 Increase/ FY2019 Difference 1st half 1st half Decrease YOY 1st half (Billions of yen) <Actual> <Actual> YOY <FCST> Total Sales 509.6 434.8 -74.8 -14.7% 464.0 Operating income 45.0 15.8 -29.2 -64.9% 25.0 <%

  23. Slide 23: Business Forecast by Customer Location

    (Supplementary Information) Business Forecast by Customer Location FY2018 FY2019 2nd half Full year Increase/ 1st half 2nd half Full year 1st half Decrease Difference Full year ＜Revised ＜Revised <Actual> <Actual> <Actual> <Actual> YOY ＜May FCST＞ (Billions of yen) FCST＞ FCST＞ YOY Sales 509.6 481.8 99

  24. Slide 24: Quarterly Business Performance

    (Supplementary Information) Quarterly Business Performance (Billions of yen) Sales 300 260.7 248.9 248.1 233.7 222.9 211.9 200 100 0 FY18Q1 Q2 Q3 Q4 FY19Q1 Q2 Operating income Net income attributable to owners of the parent Operating income margin (Billions of yen) 40 9.5% 8.1% 8.6% 30 5.6% 4.6% 24.

  25. Slide 25: Consolidated Balance Sheet

    (Supplementary Information) Consolidated Balance Sheet Assets Liabilities / Total equity Current liabilities Non- Current liabilities Non-Current assets Current assets Total equity Ratio of equity attributable to owners Change from Change from of the parent to total assets (Billions of yen) Q4 FY18

  26. Slide 26: Inventories, Interest-Bearing Debt, Capital Expenditure, Depreciation

    (Supplementary Information) Inventories / Interest-Bearing Debt, Capital Expenditure / Depreciation and Amortisation Inventories Capital Expenditure Japan Non-Japan Inventory turnover Japan Non-Japan 6.6 5.5 (Times) 54.0 159.5 157.6 (Billions of yen) (Billions of yen) 24.9 96.2 92.7 27.1 21.7 13.1 2

  27. Slide 27: Capital Expenditure, Depreciation and Amortisation, R&D Expenses

    (Supplementary Information) Capital Expenditure, Depreciation and Amortisation, R&D Expenses FY2018 FY2019 FY2019 6th MTP 1st half 1st half Full year FY2019-FY2021 (Billions of yen) <Actual> <Actual> <FCST> ＜Original Plan＞ Capital Expenditure 81.1 21.7 60.0 180.0 Depreciation and Amortisation 48.8 2

  28. Slide 28: Copyright : NSK Ltd. All rights reserved for all pages.

    Copyright : NSK Ltd. All rights reserved for all pages.

NSK — H1 FY2019 Earnings Presentation on 6ix