Nsk Ltd. · TSE:6471
Nsk — H1 FY2009 Earnings Presentation
38 slides from Nsk's earnings presentation, Nov 5, 2009
Slide 1: Financial Conference: Consolidated Business Results and Forecast and Mid-term Plan
FINANCIAL CONFERENCE Consolidated Business Results and Forecast and Mid-term Plan(FY’09~FY’12) November 5, 2009 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 fa
Slide 2: Contents
Contents Consolidated Business Results 1 for the Six Months Ended September 30, 2009 Consolidated Business Forecast 2 for the Year Ending March 31, 2010 3 Mid-term Plan(FY’09~FY’12) (Supplementary Material) 1
Slide 3: Consolidated Business Results for the Six Months Ended September 30, 2009
１ Consolidated Business Results for the Six Months Ended September 30, 2009 2
Slide 4: Summary of Consolidated Business Results
Summary of Consolidated Business Results for the Six Months Ended September 30, 2009 Business Environment ✓Industrial Machinery :Although inventory adjustment by industrial machinery manufacturers progressed, a delay in demand recovery is expected. ✓Automotive Products: Signs of a recovery in produc
Slide 5: Summary of Consolidated Business Results for the Six Months Ended September 30, 2009
Summary of Consolidated Business Results for the Six Months Ended September 30, 2009 （100 Million） 09/3 1st half 10/3 1st half Increase/ Difference 10/3 1st half decrease ＜Actual＞ ＜Actual＞ YOY YOY ＜Original forecast＞ Sales 3,833 2,579 -1,254 -32.7% 2,500 Operating income 286 -39 -325 - -70 ＜%＞ ＜7.5%
Slide 6: Quarterly Business Performance
Quarterly Business Performance Sales Operating income/Margin Sales increased from the Q4 low In addition to the positive effects of profitability improvement initiatives, due to demand recovery in increased sales contributed to a return automotive production. to profitability in Q2. 2,500 300 (¥100
Slide 7: Results by Business Segment
Results by Business Segment （¥100 Million） 09/3 1st half 10/3 1st half Increase/ Difference 10/3 1st half decrease ＜Actual＞ ＜Actual＞ YOY YOY ＜original forecast＞ Sales 3,833 2,579 -1,254 -32.7% 2,500 Industrial bearings 1,217 762 -455 -37.4% 850 Automotive products 2,141 1,598 -543 -25.4% 1,400 Preci
Slide 8: Quarterly Business Segment Performance
Quarterly Business Segment Performance Sales Operating income／Margin （¥100 Million） 13.5% 13.1% 1,915 1,918 9.4% 9.3% Automotive products 4.2% 2,000 Other/Eliminations 9.7% 1.8% 0.0% 79 Precision machinery 85 5.7% 4.4% -3.2% 3.4% & parts 149 162 (¥100 Million） -2.6% Industrial 1,532 -3.0% bearings 7
Slide 9: Operating Income: Factors Behind Decline (09/3 to 10/3)
Operating Income: Factors Behind Decline (09/3⇒10/3) （¥100 Million ） 09/3 1st half YOY decrease of 286 Effectreduction of volume △325 △440 External 10/3 1st half procurement cost △514 reduction etc. Effect of Profitability +79 △39 countermeasures exchange rate fluctuations Decline in △38 sales price
Slide 10: Consolidated Business Forecast for the Year Ending March 31, 2010
Consolidated Business Forecast ２ for the Year Ending March 31, 2010 9
Slide 11: Forecast for the Year Ending March 31, 2010: Revised Business Forecast
Forecast for the Year Ending March 31, 2010 Revised Business Forecast ✓Upward revisions were made to both sales and profit forecasts announced in May 12, 2009. ・Recovery in the automotive products business will support overall results of 2nd half of the year continuously. ✓Exchange rate forecast：US$
Slide 12: Forecast for the Year Ending March 31, 2010
Forecast for the Year Ending March 31, 2010 （¥100 Million） 09/3 10/3 Increase/ Full year 1st half 2nd half Full year decrease Difference Full year ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ <Revised Forecast> <Revised Forecast> YOY YOY ＜Original forecast＞ forecast＞ Sales 6,476 2,579 3,121 5,700 -776 -12.0% 5
Slide 13: Key Strategies for 2nd half of the Year Ending March 31, 2010
Key Strategies for 2nd half of the Year Ending March 31, 2010 Enhance Response Capability to Change in Market Demand －Industrial Machinery Bearings/Precision Machinery and Parts ⇒Promote thorough sales expansion －Automotive products ⇒Respond steadily to production volume increase Continue Profitabil
Slide 14: Forecast by Business Segment
Forecast by Business Segment （¥100 Million） 09/3 10/3 Increase/ Difference Full year 1st half 2nd half Full year decrease Full year ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ <Revised Forecast> <Revised Forecast> YOY YOY ＜original forecast＞ Sales 6,476 2,579 3,121 5,700 -776 -12.0% 5,500 Industrial bearings
Slide 15: Forecast for operating income: Factors Behind Decline
Forecast for operating income: Factors Behind Decline (09/3⇒10/3) （¥100 Million） 09/3 Actual YOY decrease 221 Effect of volume △141 reduction △240 △391 External 10/3 Revised Forecast procurement cost Effect of reduction etc. exchange rate fluctuations Profitability +100 80 countermeasures Decline in
Slide 16: Mid-term Plan (FY'09~FY'12)
３ Mid-term Plan(FY’09~FY’12) 15
Slide 17: Review of the Mid-term Plan (FY'06~08)
Review of the Mid-term Plan (FY’06~08) (¥100 Million) Mid-term plan (FY’06~08) 06/3 Actual 07/3 Actual 08/3 Actual 09/3 Actual 09/3 original plan Net sales 6,285 7,172 7,720 6,476 7,400 Operating Income 426 624 693 221 740 Ordinary Income 389 576 649 170 715 Net Income 256 349 426 46 445 Operating I
Slide 18: Transition of Our Mid-term Plans
Transition of Our Mid-term Plans FY’03-FY’05 FY’06-FY’08 FY’09-FY’12 FY’13-FY’15 Mid-term Plan Mid-term Plan Mid-term Plan Mid-term Plan Select & Focus Respond to paradigm shifts Growth strategy 100th Anniversary strategy Improve profitability Reorganize business structure, Business restructuring ai
Slide 19: Outline of the FY'09~FY'12 Mid-term Plan
Outline of the FY’09~FY’12 Mid-term Plan Net Sales ¥780.0 billion Operating Income Margin 8.5% Industrial Machinery Business Automotive Business Expand sales for Enhance Marketing emerging countries Enhance Growth Business Profitability Expand Environment/ Strategy Infrastructure/Resources -based Re
Slide 20: Enhance Business Structure
Enhance Business Structure Further accelerate business-based management, under one umbrella of sales, production, technology departments 《Mid-term policy by business segment 》 Industrial Machinery Business Comprehensively expand sales to emerging and growing market Reorganize sales and production st
Slide 21: Industrial Machinery Business 1: Expand Sales for Emerging Countries
＜Strategy by business segment＞ Industrial Machinery Business ① Expand sales for emerging Countries Estimated Demand Environment Enhance sales in emerging countries Growth in emerging markets and Technology structure expected to support overall demand Demand forecast of industrial bearings ■Adjust an
Slide 22: Industrial Machinery Business 2
＜Strategy by business segment＞ Industrial Machinery Business ② Reorganize global Expand growing field production Sites Enhance sector activities Enhance productivity of roller bearings ＊Focus on environment, infrastructure ＊Make use of reorganized production sites in Japan Industrial resource-relate
Slide 23: Automotive Business 1: Expand Sales in Emerging Countries
＜Strategy by business segment＞ Automotive Business ① Expand Sales in emerging countries Estimated Demand Environment Deal with downsizing and severe environment Sales in emerging countries continue to expand Expanding demand for smaller cars Increase demand for low- low-cost products ■Product Strate
Slide 24: Automotive Business 2: Respond to Technological Innovations
＜Strategy by business segment＞ Automotive Business ② 事 業 基 Respond 盤 拡 大 to Technological Innovations Respond to HEV/EV Expand Electric Power Steering (EPS) HEV Expand HEV/EV Low fuel EPS Equipment becoming widespread FY2011 FY2014 EV FY2007 Forecast Forecast consumption FY2007 FY2011 Forecast FY201
Slide 25: Regional Strategy: China
＜Regional Strategy＞ China Further expand business, strengthen business structure in China Production ＜Industrial Machinery＞ April, 2010:, start production of Precision Machinery ・Key Field：Wind turbine/railways/infrastructure- and Parts related/machine tool/aftermarket sector etc. ⇒Consider producti
Slide 26: Numerical Target of Mid-term Plan (FY'09~FY'12)
Numerical Target of Mid-term Plan (FY’09~FY’12) 09/3 Actual 13/3 Forecast Net Sales ¥647.6 billion ¥780.0 billion Operating Income ¥22.1 billion ¥66.0 billion Ordinary Income ¥17.0 billion ¥62.0 billion Net Income ¥4.6 billion ¥37.0 billion Operating income (margin) 3.4% 8.5% ROE 1.8% 14.0% Net D/E
Slide 27: Transition of Sales and Operating Income
Transition of Sales and Operating Income FY’03～FY’05 FY’06～FY’08 FY’09～FY’12 Mid-term Plan Mid-term Plan Mid-term Plan Aim for record profitability (excluding currency fluctuations) Operating Income Margin 8.7% 9.0% 8.5% 6.6% 6.8% (¥100 Million) (¥100 Million) 5.0% 10,000 3.4% 2,000 7,720 1.4% 7,800
Slide 28: Numerical Target by Business Segments
Numerical Target by Business Segments Industrial machinery business Industrial machinery Precision machinery Automotive business bearings and Parts Sales Operating Income/Margin Sales Operating Income/Margin 12.0% 7.6% 4,500 Numerical 3,000 7.5% 3,525 Target 2,670 360 600 Precision Machinery Precisi
Slide 29: Forecast for operating income: Improvement Factors (09/3 to 13/3)
Forecast for operating income: Improvement Factors (09/3⇒13/3) （¥100 Million ） 660 ＋439 +440 Decline in 221 sales price External procurement Effect of △200 exchange Profitability rate Improvement fluctuations etc. △100 Increase in +460 09/3 other costs 13/3 Actual Forecast △161 Effect of Volume 28 i
Slide 30: Capital Expenditure and Depreciation and Amortization
Capital Expenditure／Depreciation and Amortization FY’09～FY’12 Capital Expenditure and Depreciation and amortization （¥100 Million ） 1,500 FY’09～FY’12 1,100 1,100 Capital 1,000 Expenditure ¥130.0 billion Capital Depreciation and Expenditure Amortization 500 365 Depreciation & 200 Depreciation and ¥14
Slide 31: Summary: Mid-term Plan FY'09~FY'12 Policy
Summary 《Mid-term Plan FY’09～FY’12 Policy 》 Although the business environment is still challenging, we will proactively tackle paradigm shifts in the industry. We consider the Mid-term plan (FY’09～12) as the strategic building period in preparation for the next growth phase (sales target ¥1 trillion
Slide 32: (Supplementary Material)
(Supplementary Material) 31
Slide 33: Forecast by Geographical Segment
(Supplementary Material) Forecast by Geographical Segment (¥100 million) 09/3 10/3 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year decrease Difference Full year ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ <Revised Forecast> Forecast> <Revised Forecast> Forec
Slide 34: Forecast by Customer Location
(Supplementary Material) Forecast by Customer Location （¥100 Million） Million） 09/3 10/3 1st half 2nd half Full year 1st half 2nd half Full year Increase/ Difference Full year decrease ＜Actual＞ YOY Actual＞ ＜Actual＞ ＜Actual＞ Actual＞ ＜Actual＞ Actual＞ Actual＞ <Revised Forecast> <Revised Forecast> YOY ＜
Slide 35: Consolidated Balance Sheets
(Supplementary Material) Consolidated Balance Sheets Assets Liabilities and Net Assets Non- Current Assets Non- Non-Current Current Ratio of net worth to Non-current assets Net Assets liabilities liabilities total capital (¥100 Million) (¥100 Million) Change YOY Change YOY 8,285 8,285 7,442 7,596 +1
Slide 36: Inventory/Interest-Bearing Debt, Capital Expenditure/Depreciation
(Supplementary Material) Inventory/ Interest-Bearing Debt, Capital Expenditure/ Depreciation 棚卸資産 Inventories 設備投資 Capital Expenditure Japan Non- Non-Japan Inventory turnover （¥100 Million） Japan Non- Non-Japan （¥100 Million） 6.9 6.2 247 1,192 4.9 1,067 1,035 108 172 629 562 543 66 88 139 44 563 106
Slide 37: Supplementary Information: Capex, Depreciation and R&D
(Supplementary Information) For the Year Ending March 31, 2010 （¥100 Million） 09/3 10/3 10/3 Actual 1st half Actual Forecast Capital expenditure（＊） 419 88 200 Japan 243 44 115 Non-Japan 174 44 85 The Americas 22 4 12 Europe 35 3 13 Asia 117 37 60 ＊Excluding intangible assets （¥100 Million） 09/3 10/3
Slide 38: Forecast for Mid-term Plan by business segment
(Supplementary Material) Forecast for Mid-term Plan by business segment （¥100 Million） 09/3 Actual 10/3 Forecast 13/3 Forecast Industrial machinery business Sales 2,670 1,960 3,000 Operating Income<%> 200 <7.5%> -15 <-0.8%> 360 <12.0%> Industrial machinery bearings Sales 2,095 1,650 2,400 Operating