CONSOLIDATED BUSINESS RESULTS

Transcription

1 CONSOLIDATED BUSINESS RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 28 February 4, 29 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 resultsto 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 Although sales were robust in some business fields, such as the wind turbine sector, overall demand from machine tool, construction machinery and industr ial machinery manufacturers decreased rapidly. Global demand for automobiles slowed significantly. Decline in p roduction by automakers deepened and negatively affected our business results. Demand from the liquid crystal display and semiconductor product ion sectors was stagnant. Reduced plant operation, labor and other expenses, and capital expendit ure in order to deal with rapid demand reduction in 3Q. for 3Q decreased by 74.9 YOY due to volume red uction, the appreciation of the Japanese yen, an increase in steel price and increases i n other expenses, which more than offset an increase in sales price, reduction in external pro curement costs, and other measures aiming to improve profitability. 1 Summary of Consolidated Business Results for FY 28:Q3 Business results Expected business performance for FY 28 Demand expected to remain stagnant during 4Q. We will continue w ith profitability enhancement countermeasures, such as further reductions in plant operat ion, labor and other expenses. No revision was made to the full year forecast for FY28 announ ced on December 24, 28.

3 Summary of Consolidated Business Results for FY 28:Q3 ( 1 Million) Full year YOY YOY Full year <Forecast> 1,987 5,68 7,72 1, , , <> <9.2> <8.8> <9.> <3.> <6.2> <4.2> Ordinary income Profit before tax Net income (Rate: 1 US$= ) (Rate: 1 EURO= ) ( ) ( ) ( ) ( 163.5) ( ) ( ) ( 97.7) ( ) ( 12.99) ( ) ( 1) ( 144) 2

4 Quarterly Business Performance ,829 1,864 1,987 2,4 1,915 1, , Million US$= 3 1EURO= 1Q 2Q 3Q 4Q 1Q 2Q 3Q Ordinary income Net income margin Q 2Q 3Q 4Q 1Q 8. 2Q 3Q Q 2Q 3Q 4Q 1Q 2Q 3Q

5 Results by Business Segment YOY YOY Total Industrial bearings Automotive products Precision machinery & parts Others Eliminations /Corporate 1, , , , , , , , ,

6 Business Segment Information Industrial Machinery Bearings /margin Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 5 Although there was favorable demand from some business fields, s uch as the wind turbine sector, demand from machine tool, electrical equi pment and general machinery manufacturers decreased rapidly. to the a ftermarket sector also decreased due to inventory adjustment. Total sales for 3Q decreased by 21.1 YOY. for 3Q decreased by 49.3 YOY due to volume red uction, the appreciation of the Japanese yen, and increases in steel price and other expenses, which more than offset an increase in sales price and the effects of our efforts to improve profitability.

7 Business Segment Information Automotive Products /margin ,32 1,59 1,133 1,133 1,8 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q In addition to the slumping global demand for automobiles, produ ction adjustment by automakers affected results, and sales for 3Q decreased by 28.1 YOY. Although there were positive effects of reduction in external pr ocurement costs, an increase in sales price for some products and our effor ts to improve profitability, operating income for 3Q decreased by 82.3 YOY due to volu me reduction, the appreciation of the Japanese yen, an increase in steel pri ce and a decrease in sales price for some products. 6

8 Business Segment Information Precision Machinery and Parts /margin Q 2Q 3Q 4Q 1Q 2Q 3Q -1 1Q 2Q 3Q 4Q 1Q 2Q 3Q -4 of exposure equipment for LCD panel production increased. However, sales to the machine tool, semiconductor and liquid crystal, an d injection molding machine sectors were stagnant, and overall sales for 3Q decreased by 4. 6 YOY. Operating loss for 3Q totaled 4 million due to global volume reduction in linear motion products and mechatronic products. 7

9 Business Results by Geographical Segment 1 Million) 3 YOY YOY Total Japan The Americas Europe Asia Eliminations 1, , , , , ,15 1, , , , , /Corporate

10 Business Results by Geographical Segment Japan Left: Right: :Margin The Americas In addition to a steep decrease in sales to the automotive sector, the decreased dramatically due to the effects of declining appreciation of the Japanese yen and an increase in steel price negatively automobile sales and volume reduction in the industrial machinery y sector. affected results, and operating income for 3Q decreased dramatically ally by 9.9 YOY, despite the effects of an increase in sales price andreduction in external procurement and labor costs , , ,478 1,473 1,386 1, ,5 1,295 1, , , Operating income Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Europe for 3Q decreased by 32.8 YOY due to volume reduction for 3Q decreased by 21.4 YOY due to volume reduction in by industrial machinery and automotive manufacturers and an increase in the ASEAN region, an increase in steel price and the negative effect fect of steel price, which more than offset reduction in external procurement costs, an increase exchange rate fluctuations, although sales of exposure equipmentfor LCD in sales price, and the positive effect of exchange rate e fluctuations. panel production increased in China Million 1 Million Asia 9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

11 Business Results by Customer Location 3Q 3Q YOY YOY 1,987 5,68 1, , Japan 1,22 2, , Non-Japan 965 2, , Non-Japan ratio The Americas Europe Asia 365 1, ,

12 Business Results by Customer Location 2,5 2, 1,5 1, 1,829 1, Net sales by customer location Quarterly business performance 1, , ,915 1, , ,22 1, Q 2Q 3Q 4Q 1Q 2Q 3Q Results of FY28:3Q (YOY comments) Japan Japan Demand from the machine tool and industrial machinery sectors de creased rapidly. of automotive products declined due to a substant ial decrease in production by automakers. The Americas to automakers decreased due to slumping sales of automobil es in North America. to the general mac hinery sector also decreased. Europe Europe to automakers decreased. Although sales to the wind turbin e sector increased, sales to machine tool, electrical equipment and industrial machinery sectors decreased. Asia Asia of exposure equipment for LCD panel production increased d ramatically. to 11 automakers and the electrical equipment and indu strial machinery sectors decreased.

13 Consolidated Balance Sheets Non-current assets 8,29 Assets Current assets Change from 2Q 8,286 8,285 8, Liabilities and net assets Net assets Current liabilities 8,29 8,286 8,285 Non-current liabilities Ratio of net worth to total capital Change from 2Q 8, ,71 4,44 4,52 4, ,852 2,943 2,85 2, , , , , ,328 4,242 4,233 3, ,986 2,838 2,982 2, End of 3Q End of 4Q End of 2Q End of 3Q End of 3Q End of 4Q End of 2Q End of 3Q Exchange rate: US$ Euro Exchange rate: US$ Euro

14 Inventories / Interest-Bearing Debt times Inventory Japan The Americas Inventory turnover Asia 6.9 Europe 6.5 Japan times Interest-Bearing Debt Non-Japan Net D/E ratio 3,225 1, , , , ( 1 Million 2, ,96 2, ,32 2, , , End of 3Q End of 4Q End of 2Q End of 3Q End of 3Q End of 4Q End of 2Q End of 3Q

15 Capital Expenditure, Depreciation Japan Americas Europe Asia Japan 38 Americas 38 Europe 77 Japan 176 Asia 97 Americas 27 Europe Asia ' Capital Expenditure Japan Americas Europe Asia Japan 25 Americas 2 Europe 3 Japan 188 Asia 1 Americas 17 Europe 31 Asia 99 ' Plan 4 3Q Full year Excluding intangible assets Japan 165 Non-Japan 18 Depreciation Japan 228 Non-Japan 146 Plan 374 Japan Non-Japan Q Full year 2 1 Japan 59 Non-Japan 36 Japan 64 Non-Japan Excluding intangible assets 14

16 Supplementary Information Research & Development, Employees R&D Q1 23 Q2 27 Q3 25 Q4 27 Q1 25 Q2 29 Q3 26 Full year (Plan) 15 No. of employees Q1 Q2 Q3 Q4 Q1 Q2 Q3 Employees 23,661 24,211 24,587 25,69 25,836 26,24 25,46 Japan 1,623 1,533 1,69 1,695 11,27 11,234 11,242 The Americas 2,989 3,3 3,28 3,8 3,44 3,4 2,77 Europe 4,82 4,12 4,25 4,27 4,277 4,372 3,954 Asia 5,967 6,555 6,745 7,24 7,245 7,414 7,53 15