Slide 1: Financial Conference: Consolidated Business Results for the Year Ended March 31, 2020
FINANCIAL CONFERENCE Consolidated Business Results FOR THE YEAR ENDED MARCH 31, 2020 June 4, 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
Slide 2: Contents
Contents 1． Consolidated Business Results for the Year Ended March 31, 2020 2． Business Environment and Initiatives for the Year Ending March 31, 2021 (Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 1
Slide 3: Consolidated Business Results for the Year Ended March 31, 2020
1． Consolidated Business Results for the Year Ended March 31, 2020 Copyright NSK Ltd. All Rights Reserved. 2
Slide 4: Summary of Consolidated Business Results for the Year Ended March 31, 2020
Summary of Consolidated Business Results for the Year Ended March 31, 2020 Business Environment ✓ Uncertainty and stagnation of the world economy persisted due to the US-China trade friction. ✓ Demand decreased along with the spread of the novel coronavirus (COVID-19). Summary of Business Results ✓
Slide 5: Summary of Consolidated Business Results for the Year Ended March 31, 2020
Summary of Consolidated Business Results for the Year Ended March 31, 2020 Increase/ Increase/ FY2018 FY2019 FY2019 Decrease Decrease (Billions of yen) <Actual> <Actual> YOY <Oct FCST> vs Oct FCST Sales 991.4 831.0 -160.3 860.0 -29.0 Operating income 79.3 23.6 -55.7 32.0 -8.4 <%> <8.0%> <2.8%> <3.7%
Slide 6: Business Results: Industrial Machinery Business
Business Results: Industrial Machinery Business Ind BRG Precision O.I. O.I.(%) (Reference) Increase/ FY2018 FY2019 Decrease Difference FY2019 12.7% 11.9% 12.1% 12.0% YOY 8.0% 5.8% <Actual> <Actual> YOY <Oct FCST> 4.4% 5.8% （Billions of yen） 69.3 66.6 68.2 65.9 Sales 270.0 232.5 -37.5 -13.9% 239.0 60
Slide 7: Business Results: Automotive Business
Business Results: Automotive Business (Reference) Auto BRG Auto Comp O.I. O.I. (%) Increase/ FY2018 FY2019 Decrease Difference FY2019 8.3% 6.6% 6.9% YOY <Actual> <Actual> YOY <Oct FCST> 4.0% 3.3% 1.4% 2.7% -1.0% （Billions of yen） 183.3 174.3 171.6 160.5 155.2 Sales 689.7 573.8 -115.8 -16.8% 594.5 14
Slide 8: Operating Income: Factors Behind Change (FY2018 ⇒ FY2019)
Operating Income: Factors Behind Change (FY2018 ⇒ FY2019) (Billions of yen) 79.3 Volume/ Mix Impact of -7.0 COVID-19 -59.3 Reduction of Other operating external Reduction expenses/ procurement of costs Equity method profits costs etc. +6.7 -4.7 23.6 +5.8 Effect of -1.2 -3.0 exchange rate Decline in
Slide 9: Business Environment and Initiatives for the Year Ending March 31, 2021
2． Business Environment and Initiatives for the Year Ending March 31, 2021 Copyright NSK Ltd. All Rights Reserved. 8
Slide 10: Business Environment for the 1H of the Year Ending March 31, 2021
Business Environment for the 1H of the Year Ending March 31, 2021 Forecasted Business Environment ✓ The impact of the worldwide spread of COVID-19. Contraction of economic activities, Concerns over employment / income, Decrease in demand ✓ Industrial machinery: Infrastructure-related is to remain ro
Slide 11: Demand trend by Region
Demand trend by Region Demand when the same period of the previous year is regarded as 100. Resumed in Q1, but outlook China remains uncertain The American Europe 100 Gradually resume Gradually resume 100 economic activities 75 economic activities 75 100 50 75 25 50 50 0 25 25 0 0 Resumed economic J
Slide 12: Key initiatives: 1H of the year ending March 2021
Key initiatives 1H of the year ending March 2021 Firmly implement emergency measures and initiatives for post-corona era ●Business continuity ✔ Continue measures to prevent COVID-19 infection. Secure safety and security of employees and their family, and society ✔ Secure the supply chain. ✔ Secured
Slide 13: Initiatives for post-corona era - Business Divisions
Initiatives for post-corona era -Business Divisions- ✔ Automotive bearing business: Restore profitability -Improve efficiency of fixed costs by reviewing personnel and facilities in line with demand. ✔ Industrial machinery business -Respond to infrastructure-related demand. -Accelerate reorganizatio
Slide 14: Initiatives for post-corona era: Industrial Machinery Business
Initiatives for post-corona era 1. Industrial Machinery Business Infrastructure-related sector Digitalization Strategies for further growth at the Increase in remote operation in line robust sector with digitalization ●Wind power ✔Deploy products made in China globally ●Condition monitoring technolo
Slide 15: Initiatives for post-corona era: Automotive Business
Initiatives for post-corona era 2. Automotive Business Enhance profitability Progress in STG ＆ Actuator business ✔Optimize allocation of production capacity: product, region EPS ✔Promote stabilization and automation of production ✔Cooperation agreement by leveraging IoT. with VW Grourp Components ・S
Slide 16: (Supplementary Information)
(Supplementary Information) Copyright NSK Ltd. All Rights Reserved. 15
Slide 17: Sales & Operating Income Results by Business Segment
（Supplementary Information） Sales & Operating Income Results by Business Segment Increase/ Increase/ FY2018 FY2019 Decrease FY2019 Decrease (Billions of yen) <Actual> <Actual> YOY <Oct FCST> vs Oct FCST Total Sales 991.4 831.0 -160.3 860.0 -29.0 Operating income 79.3 23.6 -55.7 32.0 -8.4 <%> 8.0% 2.
Slide 18: Sales by Customer Location
（Supplementary Information） Sales by Customer Location FY2018 FY2019 Increase/ 1st half 2nd half Full year 1st half 2nd half Full year Difference Decrease YOY (Billions of yen) <Actual> <Actual> <Actual> <Actual> <Actual> <Actual> YOY Sales 509.6 481.8 991.4 434.8 396.2 831.0 -160.3 -16.2% Japan 186
Slide 19: Quarterly Business Performance
（Supplementary Information） Quarterly Business Performance (Billions of yen) Sales 300 260.7 248.9 248.1 233.7 222.9 211.9 206.8 200 189.4 100 0 FY18 Q1 Q2 Q3 Q4 FY19 Q1 Q2 Q3 Q4 (Billions of yen) Operating income Net income attributable to owners of the parent Operating income margin 40 9.5% 8.1% 8
Slide 20: Consolidated Balance Sheet
（Supplementary Information） Consolidated Balance Sheet Assets Liabilities / Total equity Current liabilities （Billions of yen） Non- Current liabilities Non-Current assets Current assets Total equity Change Change （Billions of yen） Ratio of equity attributable to from FY18 from FY18 owners of the par
Slide 21: Inventories / Interest-Bearing Debt
（Supplementary Information） Inventories / Interest-Bearing Debt Inventories Interest-bearing debt Japan Non-Japan Inventory turnover Japan Non-Japan Net D/E ratio 6.6 (Times) 5.3 0.27 0.28 (Billions of yen) 159.5 153.0 (Billions of yen) 274.8 279.2 36.2 30.2 96.2 90.3 238.6 249.0 63.3 62.7 FY18 FY19
Slide 22: Capital Expenditure, Depreciation and amortisation, R&D Expenses
（Supplementary Information）Capital Expenditure, Depreciation and amortisation, R&D Expenses FY2017 FY2018 FY2019 FY2019 (Billions of yen) <Actual> <Actual> <Actual> <Forecast> Capital Expenditure 68.8 81.1 54.9 60.0 Depreciation and amortisation 46.8 48.8 53.9 52.0 R&D Expenses (on a statutory basis
Slide 23: Copyright: NSK Ltd. All rights reserved for all pages.
Copyright : NSK Ltd. All rights reserved for all pages.