Nsk Ltd. · TSE:6471
Nsk — Q1 FY2023 Earnings Presentation
16 slides from Nsk's earnings presentation, Aug 3, 2023
Slide 1: Consolidated Business Results for the First Quarter ended June 30, 2023
NSK Ltd. FINANCIAL CONFERENCE Consolidated Business Results for the First Quarter ended June 30, 2023 August 3, 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 fact ar
Slide 2: Key Points - Consolidated Business Results for FY2023 Q1
Key Points - Consolidated Business Results for FY2023 Q1 ✓Changes in disclosure ≫ Effective from FY2023 Q1, the steering business is classified as a discontinued operation in accordance with IFRS accounting standards due to transitioning the steering business to a joint venture. Figures for FY2022 a
Slide 3: Summary of Consolidated Business Results for FY2023 Q1
Summary of Consolidated Business Results for FY2023 Q1 ✓Business Environment： Moderate recovery in global automotive production volume as expected. Chinese economy weaker than expected and continues to be in an adjustment phase. Inflation remains high. Trend of yen depreciation. ≫ Sales in Automotiv
Slide 4: Operating Income: Factors Behind Change (FY2022 Q1 to FY2023 Q1)
Operating Income: Factors Behind Change （FY2022 Q1 ⇒ FY2023 Q1）(Continuing operations) (Billions of yen) Volume/ Mix ✔ Steel cost, equipment, energy, etc. -3.3 ✔ Labor cost increase -2.0 Equity Transfer of method Effect of increased Increase/ exchange rate profits etc. costs Decrease in fluctuations
Slide 5: Industrial Machinery Business
Industrial Machinery Business (Billions of yen) ■Sales (Ind BRG) ■Sales (Precision) ■S.I. ● S.I.(%) Increase/ Difference 100.1 FY2022 FY2023 Decrease YOY (Excluding 95.2 95.3 96.3 93.4 Q1 Q1 Actual Actual YOY (Effect of exchange effect of exchange 84.1 84.7 88.3 19.0 85.1 rate fluctuations) rate flu
Slide 6: Automotive Business
Automotive Business ■Sales ■S.I. ● S.I.(%) (Billions of yen) FY2022 FY2023 Increase/ Decrease Difference YOY (FY2021 ■Sales(Auto BRG+AT) ■Sales(Steering) Q1 Q1 YOY (Excluding Actual Actual (Effect of exchange effect of exchange 121.7 129.6 The steering business is classified rate fluctuations) rate
Slide 7: Consolidated Business Forecast for the Year Ending March 31, 2024
Consolidated Business Forecast for the Year Ending March 31, 2024 ✓The steering business is classified as a discontinued operation. Revised forecast based on the assumption of changing the status of NSK Steering & Control, Inc. to an equity-method affiliate. ■Business Environment ≫Industrial Machine
Slide 8: Operating Income: Factors Behind Change (FY2022 to FY2023 Forecast)
Operating Income: Factors Behind Change （FY2022 Full Year Actual ⇒ FY2023 Full Year Forecast） Increase/ (Continuing operations) Transfer of increased (Billions Decrease in costs to sales prices of yen) costs Effect of exchange rate Inflation/ fluctuations Equity Labor cost method Volume/ Mix increas
Slide 9: Mid-Term Initiatives Toward 10% ROE and Higher PBR
Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓ Respond to inflation ≫ Continue to negotiate prices including labor cost increase ✓ Reorganize production to improve productivity ≫ Promote business restructuring in E&E ✓ Promote portfolio reform of business ≫ Pursue M&A and invest in new venture
Slide 10: Mid-Term Initiatives: Steering Business
Mid-Term Initiatives Toward 10% ROE and Higher PBR ✓ Steering Business ≫ May 2023 : Signed joint venture agreement with JIS ≫ August 2023 : Established equity-method affiliate (Shareholding ratio: NSK 49.9％、JIS 50.1％) - Further structural reforms to improve profitability - Promote independent operat
Slide 11: Financial Results by Business Segment
Supplementary Information : Financial Results by Business Segment Due to the classification of the steering business as a discontinued operation, the figures back to FY22 have been retroactively updated to show as continuing operations excluding the steering business. (Billions of yen) FY2022 FY2023
Slide 12: Sales by Customer Location
Supplementary Information : Sales by Customer Location Due to the classification of the steering business as a discontinued operation, the figures back to FY22 have been retroactively updated to show as continuing operations excluding the steering business. FY2022 FY2023 YOY Q1 Increase/ (Billions o
Slide 13: Consolidated Balance Sheet
Supplementary Information: Consolidated Balance Sheet Following the classification of the steering business as a discontinued operation, the assets and liabilities of the disconti nued operation are presented in parentheses as "Assets and liabilities related to disposal groups classified as held for
Slide 14: Inventories / Interest-Bearing Debt
Supplementary Information: Inventories / Interest-Bearing Debt Due to the classification of the steering business as a discontinued operation, the figures for FY23 excludes the steering business. Net D/E ratio includes the steering business. Inventories Interest-bearing debt (Billions Inventory (Bil
Slide 15: 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, the figures back to FY22 have been retroactively updated to show as continuing operations excluding the steering business. FY2
Slide 16: 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