Slide 1: Financial Conference: Consolidated Business Results and Forecast and Mid-Term Plan
FINANCIAL CONFERENCE Consolidated Business Results and Forecast and MID-TERM PLAN (FY2013-FY2015) May 15, 2013 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 fac
Slide 2: Contents
Contents Consolidated Business Results 1 for the Year Ended March 31, 2013 Consolidated Business Forecast 2 for the Year Ending March 31, 2014 3 Mid-term Plan (FY2013 - FY2015) (Supplementary Material) 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2013
Consolidated Business Results 1 for the Year Ended March 31, 2013 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2013
Summary of Consolidated Business Results for the Year Ended March 31, 2013 Business Environment ✓Industrial Machinery: Demand decreased due to slowing growth in emerging countries and inventory adjustment by customers. Demand showed signs of bottoming out in 4Q. ✓Automotive Products: Japan: Steady d
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2013
Summary of Consolidated Business Results for the Year Ended March 31, 2013 （Billions of yen） Increase/ ’12/3 ’13/3 decrease Difference <Actual> <Actual> YOY YOY Sales 733.2 732.8 -0.4 -0.0% Operating income 44.4 32.4 -12.0 -27.1% <%> <6.1%> <4.4%> Ordinary income 42.0 30.3 -11.7 -27.8% Income before
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income / Margin Sales of both industrial machinery and Despite a declining trend until 3Q, automotive bottomed out from 4Q thanks to operating income recovered in 4Q due to correction of the Japanese yen's appreciation. volume recovery and correction of
Slide 7: Results by Business Segment
Results by Business Segment Increase/ ’12/3 ’13/3 Difference (Billions of yen) decrease YOY <Actual> <Actual> YOY Sales 733.2 732.8 -0.4 -0.0% Industrial machinery business 255.8 216.1 -39.7 -15.5% Industrial machinery bearings 210.8 183.1 -27.7 -13.2% Precision machinery and parts 45.0 33.0 -12.0 -
Slide 8: Operating income: Factors Behind Decline
Operating income : Factors Behind Decline (12/3 ⇒ 13/3) （Billions of yen) ’12/3 YOY decrease of Impact of volume 44.4 decrease and others -12.0 △11.2 ’13/3 △22.4 Decline in sales price Reduction of external 32.4 procurement costs etc. △7.2 Increase in other costs +8.2 Impact of exchange +10.4 rate f
Slide 9: Consolidated Business Forecast for the Year Ending March 31, 2014
Consolidated Business Forecast 2 for the Year Ending March 31, 2014 8
Slide 10: Summary of Consolidated Business Forecast for the Year Ending March 31, 2014
Summary of Consolidated Business Forecast for the Year Ending March 31, 2014 Business Forecast ✓Sales ¥790.0 billion (+7.8% YoY) / Operating Income ¥49.0 billion (+51.4% YoY ) Ordinary Income ¥46.0 billion (+51.8% YoY) / Net Income ¥30.0 billion (+90.6% YoY) ✓YOY increase in both sales and operating
Slide 11: Summary of Consolidated Business Forecast for the Year Ending March 31, 2014
Summary of Consolidated Business Forecast for the Year Ending March 31, 2014 （Billions of yen） yen） ’13/3 Actual ’14/3 Forecast 1st half 2nd half Full Year 1st half 2nd half Full Year Difference Change <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> YOY YOY Sales 369.4 363.4 732.8 390.0
Slide 12: Forecast by Business Segment
Forecast by Business Segment （Billions of yen） ’13/3 Actual ’14/3 Forecast 1st half 2nd half Full Year 1st half 2nd half Full Year Difference Change YOY YOY <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> Sales 369.4 363.4 732.8 390.0 400.0 790.0 +57.2 +7.8% Industrial machinery business
Slide 13: Operating income: Factors Behind Increase ('13/3 to '14/3 Forecast)
Operating income : Factors Behind Increase (’13/3 ⇒ ’14/3 Forecast) （Billions of yen) ’14/3 Forecast YOY increase of +16.6 Reduction of external procurement costs etc. 49.0 Effect of exchange +8.2 rate fluctuations ’13/3 +79 Effect of volume Decline in increase +7.9 sales price 32.4 +27.6 △11.0 △7.5
Slide 14: Mid-Term Plan (FY2013 - FY2015)
3 Mid-Term Plan (FY2013 - FY2015) 13
Slide 15: Summary of FY2009-FY2012 Mid-term Plan
Summary of FY2009-FY2012 Mid-term Plan FY2006-FY2008 Mid-term Plan FY2009-FY2012 Mid-term Plan (Billions of yen) (Billions of yen) 9.0% MTP target not achieved 8.5% 8.7% Operating Income % 6.1% 6.1% 1,000 3.4% 4.4% 200 Net Sales 772.0 1.9% 780.0 800 717.2 710.4 733.2 732.8 647.6 150 Operating 587.6
Slide 16: Positioning of FY2013-FY2015 Mid-term Plan
Positioning of FY2013-FY2015 Mid-term Plan Operating income margin: 10% Mid-term Net sales: ¥1 trillion Targets Business portfolio: Industrial machinery 40 : Automotive 60 FY2003-FY2005 FY2006-FY2008 FY2009-FY2012 FY2013-FY2015 FY2016 Mid-term Plan Mid-term Plan Mid-term Plan Mid-term Plan Select &
Slide 17: Outline of FY2013-FY2015 Mid-term Plan
Outline of FY2013-FY2015 Mid-term Plan Establishing corporate fundamentals appropriate for a company with net sales of ¥1 trillion Business Strategies Corporate Foundation Develop management capability to Growth with focus on profitability handle ¥1 trillion in sales volume Growth in emerging countr
Slide 18: Outline of FY2013-FY2015 Mid-term Plan: Business Strategies
Outline of FY2013-FY2015 Mid-term Plan Business Strategies Business Growth with focus on profitability Growth with focus on profitability Strategies - Enhancement of corporate foundations, Growth strategies - Growth in emerging ■ Growth in emerging countries countries Enhancement of customer Focus o
Slide 19: Outline of FY2013-FY2015 Mid-term Plan: Corporate Foundation
Outline of FY2013-FY2015 Mid-term Plan Corporate Foundation Corporate Develop management capability to Developing management capability to handle ¥1 trillion in sales volume Foundation handle ¥1 trillion in sales volume Enhancement of corporate ｶﾞﾊﾞﾅﾝｽ・ｺﾝﾌﾟﾗｲｱﾝｽ充実 governance and compliance 全体最適 ■ En
Slide 20: Strategies by Business Segment: Industrial Machinery Business 1
FY2013-FY2015 Mid-term Plan <Strategies by Business Segment> Industrial Machinery Business ① Demand environment forecast Growth with focus on Despite recovery compared to FY2012, only slight Business profitability increase from FY2011 levels. - Enhancement of corporate General machinery, Electrical,
Slide 21: Industrial Machinery Business 2: Priority Measures
FY2013-FY2015 Mid-term Plan <Strategies by Business Segment> Industrial Machinery Business ② Priority measures Industrial machinery business Precision machinery and parts Sector strategies Acceleration of global expansion ■ Leader strategy, Challenger strategy ■ Capture NC demand for machine tool ＊L
Slide 22: Strategies by Business Segment: Automotive Business 1
FY2013-FY2015 Mid-term Plan <Strategies by Business Segment> Automotive Business ① Demand environment forecast Growth with focus on Continued expansion of production in Business profitability 需要環境予測 emerging countries and demand for Strategies - Enhancement of corporate small vehicles foundation, gr
Slide 23: Automotive Business 2: Priority Measures
FY2013-FY2015 Mid-term Plan <Strategies by Business Segment> Automotive Business ② 事 業Priority 基 盤 measures 拡 大 Initiatives for volume zone, EV/HEV, higher efficiency requirement Continue to expand EPS sales 《Sales of new products/new technology –Automotive bearings》 bearings》 《EPS Sales plan》 25 0
Slide 24: Growth Strategy in Emerging Countries
FY2013-FY2015 Mid-term Plan Growth Strategy in Emerging Countries Continue to strengthen growth platform Enhance production capability in Expand sales sites in growing markets emerging countries 《Sales in emerging countries》 China Mexico (Billions of yen) Double sales Establish new plant (Automotive
Slide 25: Numerical Targets
FY2013-FY2015 Mid-term Plan Numerical Targets (Billions of Yen) ’13/3 Actual ’16/3 Plan Sales 732.8 940.0 Operating income 32.4 86.0 Ordinary income 30.3 80.0 Net income 15.7 52.0 Operating income % 4.4% 9.1% ROE 5.25% 13.0% Net D/E ratio 0.51 0.40 1US$ = ¥83.10 1US$ = ¥90 Exchange rate 1€ = ¥107.14
Slide 26: FY2006-FY2015 Mid-term Plan Business Performance
FY2006-FY2015 Mid-term Plan Business Performance FY2006-FY2008 FY2009-FY2012 FY2013-FY2015 Mid-term Plan Mid-term Plan Mid-term Plan Aiming to reach record Operating income % profitability 8.7% 9.0% 6.1% 6.1% 9.1% (Billions of Yen) (Billions of Yen) 3.4% 4.4% 6.2% 1,000 1.9% 940.0 200 772.0 790.0 80
Slide 27: Business Performance Targets by Business Segments
FY2013-FY2015 Mid-term Plan Business Performance by Business Segments Industrial machinery business Industrial Precision machinery Automotive Business machinery bearings and parts Business Performance Targets Sales Operating income/margin Sales Operating income/margin 6.9 Precision machinery Industr
Slide 28: Operating income: Factors Behind Increase ('13/3 to '16/3 Plan)
FY2013-FY2015 Mid-term Plan Operating income : Factors Behind Increase (’13/3 ⇒ ’16/3 Plan) （Billions of yen) ’16/3 Plan YOY increase of Reduction of external procurement costs, +53.6 productivity improvement etc. 86.0 +35.5 Effect of exchange rate fluctuations ’13/3 Effect of volume increase +6.0 D
Slide 29: Capital Expenditure, Depreciation and Amortization
FY2013-FY2015 Mid-term Plan Capital Expenditure, Depreciation and Amortization FY2013-FY2015 Capital Expenditure, Depreciation and Amortization (Billions of Yen) Total of 3 years 150 120.0 Capital 95.0 Expenditure ¥120.0 billions 100 Capital Expenditure 設備Capital 減価 Depreciation and Expenditure 44.5
Slide 30: (Supplementary Material)
(Supplementary Material) 29
Slide 31: Forecasts by Customer Location
(Supplementary Information) Forecasts by Customer Location (Billions of Yen） 12/3 13/3 14/3 Actual Actual Forecast Sales 733.2 732.8 790.0 Japan 363.8 333.3 321.0 Non-Japan Total 369.4 399.5 469.0 (Non-Japan ratio) (50.4%) (54.5%) (59.4%) The Americas 86.3 103.4 118.5 Europe 107.9 102.7 113.5 Asia 1
Slide 32: Forecasts by Geographical Segment
(Supplementary Information) Forecasts by Geographical Segment 12/3 13/3 14/3 (Billions of Yen) Actual Actual Forecast Sales 733.2 732.8 790.0 Japan 538.4 492.4 488.0 The Americas 86.1 102.3 118.0 Europe 109.2 104.4 116.5 Asia 162.2 193.7 248.0 Eliminations -162.7 -160.0 -180.5 Operating income 44.4
Slide 33: Consolidated Balance Sheets
(Supplementary Information) Consolidated Balance Sheets Assets Liabilities and Net Assets Non-current assets Current Assets Net Assets Non-Current Current Ratio of Net Worth Liabilities Liabilities to Total Capital （Billions of yen） （Billions of yen） 882.5 Change YOY 882.5 Change YOY 845.1 845.1 +37
Slide 34: Inventory/Interest-Bearing Debt, Capital Expenditure/Depreciation
(Supplementary Information) Inventory/ Interest-Bearing Debt, Capital Expenditure/ Depreciation 棚卸資産 Inventories 設備投資 Capital Expenditure Japan Non-Japan Inventory turnover Japan Non-Japan （Billions of yen） （Billions of yen） 6.5 6.2 50.3 44.5 115.4 119.3 31.1 65.4 73.2 31.2 50.0 46.1 19.2 13.3 ’12/3
Slide 35: Capital Expenditure, Depreciation and Amortization, R&D Expenses
(Supplementary Information) Capital expenditure, Depreciation and Amortization, R&D expenses （Billions of yen） 12/3 13/3 14/3 Actual Actual Forecast Capital expenditure（＊） 50.3 44.5 38.0 Japan 19.2 13.3 11.0 Non-Japan 31.1 31.2 27.0 The Americas 3.3 4.0 5.5 Europe 5.3 4.7 4.0 Asia 16.3 22.5 17.5 *Ex
Slide 36: Sales and Operating Income by Business Segments
(Supplementary Information) Sales and Operating Income by Business Segments (Billions of Yen) 13/3 Actual 14/3 Forecast 16/3 Plan Industrial machinery business Sales 216.1 230.0 300.0 Industrial machinery bearings 183.1 195.0 247.0 Precision machinery and parts 33.0 35.0 53.0 Operating income <%> 13