Nsk Ltd. · TSE:6471
Nsk — Q2 FY2020 Earnings Presentation
26 slides from Nsk's earnings presentation, Nov 6, 2020
Slide 1: Consolidated Business Results for Q2 FY2020
FINANCIAL CONFERENCE CONSOLIDATED BUSINESS RESULTS FOR Q2 FY2020 November 6, 2020 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 stateme
Slide 2: Content
Content 1. Consolidated Business Results for the Six Months Ended September 30, 2020 2. Consolidated Business Forecast for the Year Ending March 31, 2021 3. Status of Initiatives by Business Segment (Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2020
1． Consolidated Business Results for the Six Months Ended September 30, 2020 Copyright NSK Ltd. All Rights Reserved. 2
Slide 4: Summary of Consolidated Business Results: 1H Overview and Highlights
Summary of Consolidated Business Results for the Six Months Ended September 30, 2020 1H Overview ✓ Consolidated Business Results for FY2020: 1H (Apr.-Sep.) (From FY2019: 1H) Sales : ¥ 315.9 billion ( -¥ 118.9 billion / -27.4%) Operating Income : -¥ 10.6 billion ( -¥ 26.4 billion / －) (%) (-3.4%) Net
Slide 5: Summary of Consolidated Business Results for the Six Months Ended September 30, 2020
Summary of Consolidated Business Results for the Six Months Ended September 30, 2020 FY2019 FY2020 Increase/ 1st half Q1 Q2 1st half Difference Decrease <Actual> <Actual> <Actual> <Actual> YOY (Billions of yen) YOY Sales 434.8 128.9 187.0 315.9 -118.9 -27.4% Operating income 15.8 -12.9 2.3 -10.6 -26
Slide 6: Operating Income: Factors Behind Change
Operating Income: Factors Behind Change (FY2019 1st half ⇒ FY2020 1st half) (Billions of yen) 15.8 Volume/ Mix Equity method 0 profits / Other Effect of operating -42.6 Reduction exchange rate expenses of costs fluctuations ‐1.5 +2.7 -10.6 Reduction of external +14.8 Decline in procurement sales pri
Slide 7: 1H Demand Trends by Region
1H Demand Trends by Region ✓ By region：China reached the same level as last year in Q2. Other regions recovered steadily ✓ Industrial machinery business ： Demand YOY Q1 -17% → Q2 -8% ✓ Automotive business ： Global production volume YOY Q1 -43％ → Q2 -5% Index trend when the same period of the previou
Slide 8: Business Results: Industrial Machinery Business
Business Results: Industrial Machinery Business (Billions of yen) FY2019 FY2020 Increase/ Ind BRG Precision O.I O.I (%) Difference (Billions of 1st half 1st half Decrease YOY <Actual> <Actual> YOY 11.9% 12.1% 12.0% yen) 8.0% 5.8% 4.4% 5.8% 2.6% Sales 119.7 104.5 -15.1 -12.6% 66.6 68.2 65.9 -0.4% 60.
Slide 9: Business Results: Automotive Business
Business Results: Automotive Business (Billions of yen) Auto BRG Auto Comp O.I O.I (%) FY2019 FY2020 Increase/ Difference (Billions of 1st half 1st half Decrease YOY 6.6% 6.9% yen) <Actual> <Actual> YOY 4.0% 3.3% 1.4% 2.7% -1.0% -1.3% 174.3 171.6 Sales 302.2 202.3 -99.9 -33.1% 160.5 155.2 147.0 144.
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2021
2． Consolidated Business Forecast for the Year Ending March 31, 2021 Copyright NSK Ltd. All Rights Reserved. 9
Slide 11: Summary of Consolidated Business Forecast for the Year Ending March 31, 2021
Summary of Consolidated Business Forecast for the Year Ending March 31, 2021 No revision has been made to the full year forecast for FY 2020 announced on August 4th, 2020 ✓Hit bottom in Q1. Demand mainly from automobile market is gradually recovering now. ✓Demand forecast was almost as expected. Pro
Slide 12: Assumptions of Demand Forecast
Assumptions of Demand Forecast Global Vehicle Production (Sources：IHS Automotive, NSK’s estimation) <Index when the same period of Annual production volume (millions) Quarterly Trend the previous year is regarded as 100> FY19 FY20 FY19 (Act) FY20 (Forecast) (Act) (Fcst) YOY Q3 Q4 Q1 Q2 Q3 Q4 (Act)
Slide 13: Summary of Consolidated Business Forecast for the Year Ending March 31, 2021
Summary of Consolidated Business Forecast for the Year Ending March 31, 2021 FY2019 FY2020 Increase/ Full year 1st half 2nd half Full year Decrease Difference <Actual> <Actual> <FCST> <FCST> YOY (Billions of yen) YOY Sales 831.0 315.9 404.1 720.0 -111.0 -13.4% Operating income 23.6 -10.6 11.6 1.0 -2
Slide 14: Forecast by Business Segment
Forecast by Business Segment Industrial Machinery Business FY2019 FY2020 Full year Full year 1st half 2nd half Full year Difference Difference (Billions of yen) <Actual> <Actual> < FCST> <FCST> HOH YOY Industrial Sales 232.5 104.5 115.5 220.0 +10.4% -5.4% Machinery Industrial Machinery Business Bear
Slide 15: Key Initiatives 2H of the Year Ending March, 2021
Key Initiatives 2H of the Year Ending March, 2021 ●Continue thorough measures to prevent infectious diseases (COVID- 19, influenza) Secure safety and security of employees and their family, as well as society. ●Business operation to ensure profit margin for the full year ✔ Industrial Machinery Busin
Slide 16: Status of Initiatives by Business Segment
3. Status of Initiatives by Business Segment Copyright NSK Ltd. All Rights Reserved. 15
Slide 17: Industrial Machinery Business: Initiatives for post-corona era
Initiatives for post-corona era 1. Industrial Machinery Business Environment changes ●Non-contact・Remote・Distributed ●Environment ●Automation・smartification ●Advanced medical treatment Infrastructure-related Sector （Wind power・Railways) Condition Monitoring Demand expansion for renewable energy and
Slide 18: Automotive Business: Initiatives for post-corona era
Initiatives for post-corona era 2. Automotive Business Strategies for Powertrain / Chassis Business Regrowth Strategies Products for STG ＆ Actuator Environment changes ●Sluggish global automobile production volume Develop products focused on ●Acceleration of electrification ●Alliance of automobile m
Slide 19: Electrical & Electrification Division Strategy
Establishment of E&E DHQ Back Demand for motors is increasing by IoT, 5G, and electrification needs ground such as CASE in the automotive market. This has resulted in significant demand expansion for bearings. Target Grow faster than market growth, expand market share FY26 Sales Target：1.5 times (co
Slide 20: Supplementary Information
(Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 19
Slide 21: 1H Financial Results by Business Segment
(Supplementary Information) 1H Financial Results by Business Segment FY2019 FY2020 Increase/ 1st half 1st half Difference Decrease (Billions of yen) <Actual> <Actual> YOY YOY Total Sales 434.8 315.9 -118.9 -27.4% Operating income 15.8 -10.6 -26.4 － <%> 3.6% -3.4% Industrial Sales 119.7 104.5 -15.1 -
Slide 22: 1H Sales Results by Region
(Supplementary Information) 1H Sales Results by Region FY2019 FY2020 Increase/ 1st half 1st half Difference Decrease <Actual> <Actual> YOY (Billions of yen) YOY Sales 434.8 315.9 -118.9 -27.4% Japan 161.7 112.7 -49.1 -30.3% Non-Japan 273.1 203.2 -69.9 -25.6% <Non-Japan ratio> <62.8%> <64.3%> The Ame
Slide 23: Consolidated Balance Sheet
(Supplementary Information) Consolidated Balance Sheet Assets Liabilities / Total equity Total equity Non- Current liabilities Non-Current assets Current assets Current liabilities Change from Change from Ratio of equity attributable to owners Q4 FY19 (Billions of yen) Q4 FY19 of the parent to total
Slide 24: Inventories / Interest-Bearing Debt
(Supplementary Information) Inventories / Interest-Bearing Debt Inventories Interest-bearing debt Non-Japan Japan Inventory turnover Japan Non-Japan Net D/E ratio 5.3 （Times） 0.28 0.31 4.2 341.6 （Billions of yen） （Billions of yen） 153.0 67.2 146.2 279.2 30.2 90.3 83.2 274.4 249.0 62.7 63.0 FY19 End
Slide 25: Capital Expenditures, Depreciation and Amortisation, R&D Expenses
(Supplementary Information) Capital Expenditures, Depreciation and Amortisation, R&D Expenses FY2019 FY2020 Q1 Q2 Q3 Q4 Full year Q1 Q2 Full year (Billions of yen) (Plan) Capital Expenditures 10.5 11.1 12.1 21.1 54.9 6.4 7.5 40.0 Depreciation and Amortisation 13.4 13.4 13.6 13.5 53.9 13.4 13.6 54.0
Slide 26: Copyright NSK Ltd.
Copyright : NSK Ltd. All rights reserved for all pages.