Slide 1: Financial Conference for the Results of the Year Ended March 31, 2004
FINANCIAL CONFERENCE FOR THE RESULTS OF THE YEAR ENDED MARCH 31, 2004 AND FORECASTS FOR THE YEAR ENDING MARCH 31, 2005 Seiichi Asaka President & CEO May 18, 2004 NSK Ltd. Cautionary Statements with Respect to Forward-Looking Statements Statements made in this report with respect to plans, strategies
Slide 2: Consolidated Business Results for the Year Ended March 31, 2004
Consolidated Business Results for the Year Ended March 31, 2004 1
Slide 3: Summary of the Consolidated Business Results for FY 2003
Summary of the Consolidated Business Results for FY 2003 Major Achievements of FY 2003 Achieved profits exceeding the targets set for FY 2003 in the Mid- Term Plan The European Business returned to profit for the first time in six years as result of business restructuring activities Profitability of
Slide 4: Summary of the Consolidated Business Results for FY 2003
Summary of the Consolidated Business Results for FY 2003 *Profit and loss items are compared with the same period last year. Balance sheet items are compared with year-end data for FY 2002. (Year ended Mar. 31, ‘02) (Year ended Mar. 31, ‘03) (Year ended Mar. 31, ‘04) Previous Difference (%) (¥100 mi
Slide 5: Consolidated net sales – By product segment
Consolidated net sales –By product segment– (Year ended (Year ended Effect of Increase/ discontinued Net increase/ (¥100 million) March 31, 2003) March 31, 2004) (decrease) operations, (decrease) FY 2002 FY 2003 FOREX, etc. Bearings 3,219 3,328 +109 -6 +115 (+3.5%) Automotive 1,507 1,293 -214 -239 +
Slide 6: Consolidated net sales – By customer location
Consolidated net sales –By customer location– (Year ended (Year ended Effect of Increase/ discontinued Net increase/ (¥100 million) March 31, 2003) March 31, 2004) (decrease) operations, (decrease) FY 2002 FY 2003 FOREX, etc. Japan 2,793 2,786 -7 -193 +186 (7.2%) (Overseas sales ratio) (46.6%) (46.6
Slide 7: Consolidated business results – By geographical segment
Consolidated business results –By geographical segment– (Year ended March 31, 2003) (Year ended March 31, 2004) Increase/ (¥100 million) FY 2002 FY 2003 (decrease) Japan Sales 3,955 3,918 Operating income (%) 129 (3.3%) 192 (4.9%) +48.8% The Americas Sales 774 738 Operating income (%) 20 (2.6%) 6 (0
Slide 8: Operating income: Improvement factors by geographical segment
Operating income: Improvement factors by geographical segment Profits increased by 8.2 billion yen year-on-year Major profitability improvement contributions from Japan and Europe (¥100 million) Europe Eliminations The Americas -4 Asia -14 Japan +45 -8 +63 260 Japan Increased sales, in addition to t
Slide 9: Analysis of the Improvements in Operating income
Analysis of the Improvements in Operating income (FY 2002 VS FY 2003) Effect of (¥ Billion) FY 2003 Group total discontinued operations, such as the seat belt business 26.0 Business restructuring +1.0 activities in Europe +1.9 Inclusion of External NSK Needle procurement cost +3.3 Bearing Ltd. to th
Slide 10: Consolidated business results – By business segment
Consolidated business results –By business segment– Bearings maintained their strong profitability, and Precision Machinery and Parts recorded a major improvement (Year ended March 31, 2003) (Year ended March 31, 2004) Increase/ Previous (¥100 million) FY 2002 FY 2003 (decrease) forecast Bearings Sa
Slide 11: Quarterly business trend
Quarterly business trend Profitability improved steadily as result of the benefits from profitability improvement activities and the positive effect of increased sales (¥100 million) Total Operating income ratio (¥100 million) (¥100 million) Automotive components (¥100 million) 1600 1600 200 0.1 400
Slide 12: Non-operating income and losses, Extraordinary income and losses
Non-operating income and losses, Extraordinary income and losses No major extraordinary losses planned for the near future Increase/ (¥100 million) FY ‘01 FY ‘02 FY ‘03 Increase/ (¥100 million) FY ‘01 FY ‘02 FY ‘03 decrease decrease Operating income 39 178 260 +82 Ordinary income -32 108 191 +83 Non
Slide 13: Consolidated balance sheets
Consolidated balance sheets (Year ended (Year ended (Year ended Difference from (¥100 million) Mar. 31, 2002) Mar. 31, 2003) Mar. 31, 2004) the previous FY 2001 FY 2002 FY 2003 fiscal year Assets Current assets 2,915 2,857 2,955 +98 Non-current assets 3,513 3,074 3,264 +190 Total assets 6,428 5,931
Slide 14: Inventories and Capital expenditures
Inventories and Capital expenditures Inventories Capital expenditures Inventories have continued to be reduced FY2003 (Actual): Capital expenditures through production innovation activities were kept below depreciation (As of (As of Excluding FY2004 (Forecast): Capital expenditures March. 31, March
Slide 15: Consolidated interest bearing debts
Consolidated interest bearing debts Reduce interest bearing debts in line with the Mid-term Plan Continue financial structural improvements and reduce interest bearing debts by 30 billion yen in FY 2004 (¥100 million) 1.57 D/E ratio (times) 1.31 1.31 1.21 1.08 1.08 2,724 2,678 2,614 2,458 2,465 556
Slide 16: Cash flow (FY 2003)
Consolidated cash flow (FY 2003) (Excluding the effect of exchange rate fluctuations) ¥100 million (1) Cash flow provided by (2) Cash flow used in (3) Cash flow used in Operating activities +379 Investing activities -170 Financing activities -207 269 Ordinary Cash decrease ¥0.1 billion income Deprec
Slide 17: Forecasts for the Year Ending March 31, 2005
Forecasts for the Year Ending March 31, 2005 16
Slide 18: Forecasts for FY 2004: Focal Points
Forecasts for FY 2004 Focal Points of the Forecast Aim for record sales and operating income levels by securely executing the Mid-term Plan Aim for improved efficiency and accelerated growth through the new business organization Reinforce our foundations for growth in our China business Reinforce ou
Slide 19: Changes in Business Segment
Changes in Business Segment From FY 2004, we have changed our accounting segments to match the organizational changes implemented in February 2004 Previous New Bearings Industrial machinery bearings General industrial bearings Automotive products Automotive bearings Automotive bearings Automotive co
Slide 20: Forecasts for FY 2004: Economic Outlook
Forecasts for FY 2004 Economic Outlook for FY 2004 Japan: Healthy economic conditions expected to continue Strong domestic demand for machine tools and industrial machinery expected to continue Automobile production expected to remain flat Demand from the semiconductor and LCD production equipment s
Slide 21: Business forecasts for the year ending March 31, 2005
Business forecasts for the year ending March 31, 2005 Year ended Year ending March 31, 2004 March 31, 2005 FY 2003 FY 2004 Y.O.Y (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Net sales 2,538 2,684 5,222 2,730 2,820 5,550 +6
Slide 22: Consolidated net sales forecast – By business segment
Consolidated net sales forecast –By business segment– Year ended Year ending March 31, 2004 March 31, 2005 Y.O.Y FY 2003 FY 2004 (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Net sales 2,538 2,684 5,222 2,730 2,820 5,550 +6
Slide 23: Consolidated net sales forecast – By geographical segment
Consolidated net sales forecast –By geographical segment– Year ended March 31, 2004 Year ending March 31, 2005 FY 2003 FY 2004 (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Sales 1,868 2,050 3,918 2,030 2,140 4,170 Japan Op
Slide 24: Consolidated net sales forecast – By customer location
Consolidated net sales forecast –By customer location– Year ended Year ending Y.O.Y March 31, 2004 March 31, 2005 FY 2003 FY 2004 (¥100 million) <Actual> <Actual> <Actual> <Forecast> <Forecast> <Forecast> 1st half 2nd half Total 1st half 2nd half Total Total 2,538 2,684 5,222 2,730 2,820 5,550 6.3%
Slide 25: Operating income: Improvement factors (FY 2003 vs FY 2004)
Operating income: Improvement factors (FY 2003 VS FY 2004) (¥100 million) Group total FY 2004 (Forecast) 35.0 +1.2 Procurement Others cost reductions +1.8 Price increases +9.0 +4.5 Increase in Price profits due to reductions, increase in etc. sales volume 26.0 -3.5 Others FY 2003 +8.0 (Actual) -3.0
Slide 26: Consolidated net sales forecast – By business segment
Consolidated net sales forecast –By business segment– (Year ended March 31, 2004) (Year ended March 31, 2005) 1st half 2nd half (¥100 million) FY 2003 FY 2004 Actual Forecast Forecast Forecast Industrial machinery Sales 1,766 1,810 912 898 bearings Operating income (%) 115 (+6.5%) 140 (+7.7%) 72 68