CONSOLIDATED BUSINESS RESULTS

Transcription

1 CONSOLIDATED BUSINESS RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2018 February 1, 2019 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 statements. NSK cautions that a number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Note : This document is an English translation of material written initially in Japanese. The Japanese original should be considered the primary version

2 Summary of Consolidated Business Results for : Business Results for : (Oct. Dec.) (vs. ) YTD (Apr. Dec.) Revision to Business Forecast (vs. YTD) Net Sales : billion ( billion / -6.2%) billion (- 0.0 billion / -0.0%) Operating Income : 21.3 billion (- 6.6 billion / -23.8%) 66.3 billion (- 4.4 billion / -6.2%) (O.I%) (8.6%) (8.7%) Net Income Attributable to Owners of the Parent : 15.8 billion (- 3.9 billion / -19.6%) 46.8 billion (- 1.3 billion / -2.7%) Solid performance in 1H. Entered demand adjustment phase in 2H. Decrease in China and steering businesses. Cost factors including R&D and labor increased. Downside risks in global economy, primarily in China due to trade friction increase. Feb. Revised forecast Oct. forecast (vs. Oct. forecast) (vs. ) Net Sales : billion 1,010.0 billion billion billion/ -3.5% Operating Income : 83.0 billion 93.0 billion billion billion/ -15.2% Net Income Attributable to Owners of the Parent : 58.0 billion 65.0 billion billion billion/ -16.3% Full year full-year dividend remains unchanged at 40 (2 nd half: 20), Payout ratio 35.8% (forecast). 1

3 Summary of Consolidated Business Results for : Full year Increase/ Decrease Difference Increase/ Decrease Difference Full year <Fcst> Net sales , % % 1, Operating income % % <Oct.> <Feb.> <%> <10.6%> <9.3%> <9.6%> <8.6%> <8.7%> <9.2%> <8.4%> Income before income taxes % % Net income attributable to owners of the parent % % (Ex. rate:1usd=) ( 1EUR=) ( 1CNY=) % -3.2% -4.4% % +0.7% -0.2% *Reference: Segment Income : Operating income before deduction of other operating expenses Other operating expenses : Antimonopoly Act -related losses, foreign exchange losses Segment income % % <%> <10.7%> <9.6%> <9.8%> <8.8%> <9.0%> <9.4%> <8.7%> 2

4 Sales & Operating Income Results by Business Segment Full year Increase/ Decrease Difference Increase/ Decrease Difference Full year <Fcst> Total Net sales , % % 1, Industrial Machinery Business Automotive Business <Oct.> <Feb.> Operating income % % <%> 10.6% 9.3% 9.6% 8.6% 8.7% 9.2% 8.4% Net sales % % Industrial Machinery Bearings % % Precision Machinery and Parts % % Operating income % % <%> 11.8% 9.4% 10.6% 12.1% 12.2% 12.7% 12.2% Net sales % % Automotive Bearings % % Automotive Components % % Operating income % % <%> 9.9% 9.2% 9.1% 6.9% 7.3% 7.7% 6.8% Others Net sales % % Operating income % % <%> 10.1% 9.8% 9.8% 11.2% 10.0% 9.5% 9.4% Eliminations (sales) Other operating expenses / Adjustments

5 Business Trend: Industrial Machinery Business Ind BRG Precision O.I O.I (%) 14.2% 11.8% 8.8% 7.3% (Forecast) 12.7% 11.9% 12.1% 12.0% FY17 FY18 Q1 Q2 Q4 Q1 Q2 Q4 Revised Forecast 1USD= EUR= CNY= remained flat (increased excl. currency fluctuation), rose QOQ (industrial bearings +4%, precision -4%). Operating income increased and QOQ, maintained 12% level. Demand adjustment overall is to continue, although infrastructure sectors including wind power remain solid. 4

6 Business Trend: Automotive Business Auto BRG Auto Comp O.I O.I (%) 9.9% 7.9% 9.9% 8.8% 8.3% 6.6% 6.9% (Forecast) 5.4% FY17 Q1 Q2 Q4 Q1 Q2 Q4 Revised Forecast 1USD= EUR= CNY= FY18 QOQ: auto bearings increased (+1%), steering and AT decreased (-4%). Affected by decline in vehicle sales in China (, Q4 forecast). Lowered sales forecast. Strengthen inventory control as a measure against volume decrease. 5

7 Sales Results by Customer Location Full year Increase/ Decrease Difference Increase/ Decrease Difference Full year <Fcst> <Oct.> <Feb.> Net sales , % % 1, Japan % % Non-Japan % % <Non-Japan ratio> <63.0%> <63.4%> <63.5%> <62.2%> <63.0%> <62.8%> <62.8%> The Americas % % Europe % % China % % Other Asia % % Japan The Americas Europe China Other Asia FY17 Q1 Q2 Q4 FY18 Q1 Q2 1USD= EUR= CNY=

8 Consolidated Balance Sheet Non-Current assets Current assets Assets 1, ,080.7 Change from Q4 FY Liabilities / Total equity Current liabilities Non- Current liabilities Total equity Ratio of net worth to total capital 1, ,080.7 Change from Q4 FY % 48.4% FY17 End of Q4 FY18 End of Ex. Rate FY17 End of Q4 FY18 End of FY17 FY18 End of Q4 End of 1USD= EUR= CNY=

9 Inventories/Interest-bearing debt (Times) Inventories Japan Non-Japan Inventory turnover Interest-bearing debt Japan Non-Japan Net D/E ratio FY17 End of Q4 FY18 End of FY17 End of Q4 FY18 End of Ex. Rate FY17 End of Q4 FY18 End of 1USD= EUR= CNY=

10 Capital Expenditure/Depreciation and amortisation Capital Expenditure Japan 39.2 Non-Japan 29.6 Japan 26.2 Plan 85.0 Japan 9.7 Non-Japan 8.4 Japan 23.4 Non-Japan Japan 12.2 Non-Japan 11.4 Non-Japan Full Year * Including intangible assets Japan 15.4 Non-Japan 19.5 Japan 5.2 Non-Japan 6.7 Depreciation and amortisation Japan 20.7 Non-Japan Japan 5.7 Non-Japan 6.6 Japan 16.3 Non-Japan Plan 50.0 Full Year * Including intangible assets 9

11 (Supplementary Information) Quarterly Business Performance Net sales FY17 Q1 Q2 Q4 FY18 Q1 Q2 Operating income Net income attributable to owners of the parent Operating income margin % 10.6% 10.4% 9.5% 8.6% 7.8% 8.1% FY17 Q1 Q2 Q4 FY18 Q1 Q2 1USD= EUR= CNY=

12 (Supplementary Information) R&D Expenses / Number of Employees R&D Expenses (on a statutory basis) (Reference) R&D Expenses (on a managerial basis) Q1 Q2 Q4 Full year Q1 Q2 Full year <Fcst> (Headcount) Q1 Q2 Q4 Q1 Q2 Total: 31,614 31,760 32,021 31,861 31,924 31,890 32,045 Japan 11,575 11,564 11,634 11,607 11,818 11,814 11,802 The Americas 3,048 3,087 3,103 3,080 3,127 3,120 3,107 Europe 3,695 3,674 3,806 3,908 3,994 4,104 4,291 Asia 13,296 13,435 13,478 13,266 12,985 12,942 12,845 11