Financial Results for the First Half of the Fiscal Year Ending March 31, 2015

Transcription

1 Financial Results for the First Half of the Fiscal Year Ending March 31, 2015 NOK CORPORATION (7240 / TSE1) November 2014 Disclaimer Any plans, targets, forecasts, strategies, policies and opinions relating to NOK CORPORATION or NOK Group companies or other information contained in these materials that are not historical facts constitute forward-looking statements. The content of such statements is based on the best information available to management at the time of publication. Actual performance may differ substantially from projections due to changes in a number of important factors implying risk and uncertainty with the potential to affect results, including economic conditions across operating regions, prices and foreign exchange rates. While every effort has been made to ensure the accuracy of the content of these materials, NOK provides no assurances to that effect. NOK assumes no liability whatsoever for harm related to any errors that may be caused to persons attending this presentation. NOK Corporation retains the copyright on these materials: unauthorized reproduction or duplication is prohibited. 2

2 Table of Contents Page 4 Financial Results for the First Half of the Fiscal Year Ending March 31, 2015 and Financial Forecasts for the Fiscal Year Ending March 31, 2015 Page 11 Page 20 Page 32 Page 44 Financial Results by Business Segment for the First Half of the Fiscal Year Ending March 31, 2015 Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2015 Business Overview by Industry and by Region References 3 Financial Results for the First Half of the Fiscal Year Ending March 31, 2015 and Financial Forecasts for the Fiscal Year Ending March 31, 2015

3 The Market Trend Surrounding the NOK Group Motor Vehicle Unit Production Smartphone Worldwide Unit Shipments Domestic Export Overseas Production (Thousands of units) 12,789 13,497 13,347 14,070 (Millions of units) 676 8,045 8,328 8,564 9, ,350 2,283 2,236 2,020 2,394 2,886 2,547 2,750 Apr-Sep Oct-Mar Apr-Sep Oct-Mar (Forecast) Jan-Jun CY2013 Jul-Dec CY2013 Jan-Jun CY2014 Jul-Dec CY2014 Forecast) 5 Financial Highlight for the First Half of the Fiscal Year Ending March 31, 2015 NOK Business Overview Seal Business Backlash from the last minute surge in demand prior to the rise in consumption tax remained small, and sales to automobile manufactures were robust in Japan as well as in China and North America. Electronic Device Product Business Sales were strong for smartphones and tablet terminals. Roll Business Sales were robust in products for copiers in overseas markets despite a slump in replacement parts.

4 Financial Results for the First Half of the Fiscal Year Ending March 31, 2015 [vs. ] ( billion) [Net Sales] 40 [Income] Net Sales Operating Income Ordinary Income Net Income Operating Income Margin % 1 5.3% Average Exchange Rate $/Yen) Financial Forecasts for the Fiscal Year Ending March 31, 2015 [vs. ] ( billion) [Net Sales] 80 [Income] Net Sales Operating Income Ordinary Income Net Income Operating Income Margin % 2 6.4% Full Year Full Year (Revised Forcasts) Average Exchange Rate $/Yen)

5 Interim Dividend for the Fiscal Year Ending March 31, 2015 Interim Dividend Dividend Payout Ratio 15.0 Interim Dividend Term-end Dividend TBD 15 TBD Interim Dividend Dividend Payout Ratio FY2010 FY2011 FY2012 The term-end dividend for has not been fixed. 9 NOK Group Topics for the First Half of the Fiscal Year Ending March 31, 2015 Electronic Device Product Business Completed new administration building of Ushiku Plant, NIPPON MEKTRON, LTD. Objective To consolidate the technology and production divisions, and strengthen coordination To improve operation efficiency Overview Four stories high Total Floor Area: 4,800 Number of Workers: 300

6 Financial Results by Business Segment for the First Half of the Fiscal Year Ending March 31, 2015 Financial Results by Business Segment for the First Half of the Fiscal Year Ending March 31, 2015 ( billion) Seal Business Electronic Device Product Business Roll Business Others Total Reference Actual Revised Forecast 2H Full Year 2H Full Year Amount Ratio Net Sales % Operating Income % Net Sales % Operating Income Net Sales % Operating Income % Net Sales % Operating Income % Net Sales % Operating Income YoY Change %

7 Seal Business: Financial Results [vs. ] billion) [Net sales] Capital Investment Depreciation No. of Employees [Operating Income] Net Sales Operating Income 3 Operating Income Margin % 11.0 bn 9.4 bn 19, % 9.2 bn 6.7 bn 19, Results Net Sales bn ( 4.4 bn YoY) Vehicle production in Japan was robust. Demand was robust in China and North America. Demand was also robust in sales to manufacturers of general industrial machinery in Japan and overseas markets. Demand dropped in Thailand. Operating Income 15.7 bn ( 2.1 bn YoY ) Operating income increased on the back of increased sales. The change in depreciation method had a positive impact. Personnel and other expenses increased. Seal Business: Changes in Operating Income [vs. ] ( billion) 13.6 Impact of Net Sales 1.3 Raw Materials Cost 2.1 bn Cost of Sales Reduction 0.2 Personnel and SG&A Expenses Depreciation 0.1 Change in Depreciation Method Impact of FX Operating Income Operating Income

8 Electronic Device Product Business: Financial Results [vs. ] billion) [Net Sales] [Operating Income] Net Sales Operating Income 2 Operating Income Margin % % Results Net Sales bn ( 16.5 bn YoY) Sales were strong in new models for smartphones. Sales were also strong for hard disk drives, tablet terminals and automobiles. Sales were sluggish for digital cameras. Operating Income 8.2 bn ( 7.6 bn YoY) Operating income increased on the back of increased sales of smartphones. Improvement in the yield rate and reduction in cost of sales contributed positively. Personnel expenses increased in China and other countries. Capital Investment 9.1 bn 8.9 bn Depreciation 8.0 bn 8.0 bn No. of Employees 25,007 22,402 Electronic Device Product Business: Changes in Operating Income [vs. ] ( billion) Impact of Net Sales Yield Rate Cost of Sales Reduction 3.5 Personnel and SG&A Expenses Depreciation Change in Depreciation Method Impact of FX bn 0.5 Operating Income Operating Income

9 Roll Business: Financial Results [vs. ] billion) [Net Sales] [Operating Income] Net Sales Operating Income 4.0 Operating Income Margin % % Results Net Sales 14.8 bn ( 0 bn YoY) Sales increased mainly for color printers and copiers in Europe and the U.S. markets. Order intake slumped in copier replacement parts due to a rise in durability. Operating Income 1.2 bn ( 0.2 bn YoY) Profit structure was strengthened on the back of promoting reduction in cost of sales. The change in depreciation method had a positive impact. Personnel and other expenses increased. Capital Investment 0.1 bn 0.5 bn Depreciation 0.5 bn 0.5 bn No. of Employees 2,477 2,825 Roll Business: Changes in Operating Income [vs. ] ( billion) Impact of Net Sales Raw Materials Cost Cost of Sales Reduction Personnel and SG&A Expenses Depreciation Change in Depreciation Method Impact of FX bn Operating Income Operating Income

10 Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2015

11 Unification of Accounting Period and Change in Depreciation Method Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Before Domestic Overseas 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q After Domestic Overseas 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Unification of Accounting Period Accompanying NOK s growth in overseas business, it has become necessary and is deemed effective from a management perspective, to manage strategies based on a unified accounting period (Apr-Mar) rather than by consolidating two different accounting periods (Apr- Mar and Jan-Dec). Therefore, NOK has changed the accounting period of its overseas subsidiaries (originally Jan-Dec) to Apr-Mar to conform to that of NOK and its domestic subsidiaries. Change in Depreciation Method From the fiscal year ending March 31, 2015, NOK and its domestic subsidiaries have changed their depreciation method of property, plant and equipment to a straight-line method to conform to overseas subsidiaries. Due to the shift from the conventional fixed-rate method, operating income is expected to increase by 6.3 billion. * results in this presentation are calculated based on the unified accounting period described above, for reference purposes. Revised Financial Forecasts for the Second Half and Full Year of the Fiscal Year Ending March 31, 2015 ( billion) Full Year 2H Full Year Changes vs. Initial Forecasts Initial Forecasts Actual Revised Forecasts Amount Ratio Net Sales % Operating Income % Ordinary Income % Net Income % Capital Investment Depreciation Average Exchange Rate* ($/Yen) No. of Employees 45,826 44,704 45,385 45, * Positive with weakening of the yen, negative with appreciation of the yen

12 Revised Financial Forecasts for the Fiscal Year Ending March 31, 2015 [vs. Reference] ( billion) YoY Changes Reference Actual Revised Forecasts 2H Full Year 2H Full Year 2H Full Year Amount Ratio Amount Ratio Amount Ratio Net Sales % % % Operating Income % % % Ordinary Income % % % Net Income % % % Capital Investment Depreciation Average Exchange Rate* ($/Yen) No. of Employees 47,286 44,272 44,272 44,704 45,385 45,385 2,582 1,113 1,113 * Positive with weakening of the yen, negative with appreciation of the yen Revised Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2015 [vs. Initial Forecasts] ( billion) Seal Business Electronic Device Product Business Roll Business Others Total Changes Full Year 2H Full Year vs. Initial Forecasts Initial Actual Revised Forecasts Amount Ratio Forecasts Net Sales % Operating Income % Net Sales % Operating Income % Net Sales % Operating Income % Net Sales % Operating Income % Net Sales % Operating Income %

13 Seal Business: Financial Forecasts [vs. ] billion) [Net Sales] [Operating Net Sales Operating Income Margin Income] Operating Income () Operating Income (2H) % Full Year % Full Year (Revised Forecasts) Forecasts Net Sales bn ( 7.7 bn YoY) Sales are expected to increase on the back of the rise in Japanese vehicle production. Sales are expected to recover for manufacturers of general industrial machinery. Operating Income 33.0 bn ( 4.0 bn YoY) Operating income is expected to increase on the back of increasing sales. Positive impact is expected from the change in depreciation method (approx. 5.3 bn). Personnel expenses are expected to increase in China, Asia and other countries. Capital Investment 21.9 bn 22.3 bn Depreciation 19.5 bn 14.5 bn No. of Employees 19,086 19,361 Seal Business: Changes in Operating Income [vs. ] ( billion) Impact of Net Sales 1.8 Raw Materials Cost 0.3 Cost of Sales Reduction 0.6 Personnel and SG&A Expenses Depreciation 4.0 bn Change in Depreciation Method 5.3 Impact of FX Full Year Operating Income Full Year Operating Income (Revised Forecast)

14 Electronic Device Product Business: Financial Forecasts [vs. ] billion) [Net Sales] [Operating Net Sales Operating Income Margin Income] Operating Income () Operating Income (2H) Forecasts Net Sales bn ( 21.9 bn YoY) Sales are expected to increase for smartphones and automobiles Sales are also expected to be robust for hard disk drives and tablet terminals. Sales are expected to decrease for digital cameras. 10 Capital Investment Depreciation No. of Employees % Full Year 18.4 bn 16.7 bn 22, % Full Year (Revised Forecast) 14.1 bn 15.8 bn 22,966 1 Operating Income 17.2 bn ( 10.2 bn YoY) Operating income is expected to increase on the back of increasing sales. Positive impact is expected from promotion of increase in yield rate and reduction in cost of sales. Personnel expenses are expected to increase in China. Electronic Device Product Business: Changes in Operating Income [vs. ] ( billion) Impact of Net Sales 7.0 Yield Rate 2.7 Cost of Sales Reduction 7.5 Personnel and SG&A Expenses 7.5 Depreciation 0.4 Change in Depreciation Method Impact of FX bn Full Year Operating Income Full Year Operating Income (Revised Forecast)

15 Roll Business: : Financial Forecasts [vs. ] billion) [Net Sales] 4 3 [Operating Net Sales Operating Income Margin Income] Operating Income () Operating Income (2H) Forecasts Net Sales 28.5 bn ( 1.0 bn YoY) Demand is expected to drop in products for replacement parts % Full Year % Full Year (Revised Forecasts) Operating Income 1.8 bn ( 0.4 bn YoY) Operating income is expected to decrease on the back of decreasing sales. Personnel expenses is expected to increase in China and other countries. Positive impact is expected from promotion of reduction in cost of sales. Capital Investment 0.2 bn 1.8 bn Depreciation 1.1 bn 1.1 bn No. of Employees 2,694 2,904 Roll Business: Changes in Operating Income [vs. ] ( billion) Impact of Net Sales Raw Materials Cost Cost of Sales Reduction Personnel and SG&A Expenses Depreciation Change in Depreciation Method Impact of FX bn Full Year Operating Income Full Year Operating Income (Revised Forecast)

16 Business Overview by Industry and by Region

17 Consolidated Net Sales Trend by Industry (by Quarter) Net Sales by Industry ( billion) Automotive Industry (AI) Electronic Industry (EI) General Industry (GI) Q 2Q 3Q 4Q 1Q 2Q Consolidated Net Sales Trend by Industry (by Half Year) Net Sales by Industry ( billion) Automotive Industry (AI) Electronic Industry (EI) General Industry (GI) H 2H (Forecast)

18 Consolidated Net Sales Trend by Region (by Quarter) Net Sales by Region ( billion) Japan China Other Asia Other Q 2Q 3Q 4Q 1Q 2Q Consolidated Net Sales Trend by Region (by Half Year) Net Sales by Region ( billion) Japan China Other Asia Other H 2H (Forecast)

19 Net Sales Trend for Seal Business by Region (by Quarter) Seal Business: Net Sales by Region ( billion) Japan China Other Asia Other Q 2Q 3Q 4Q 1Q 2Q Net Sales Trend for Seal Business by Region (by Half Year) Seal Business: Net Sales by Region ( billion) Japan China Other Asia Other H 2H (Forecast)

20 Net Sales Trend for Electronic Device Product Business by Region (by Quarter) Electronic Device Product Business: Net Sales by Region ( billion) Japan China Other Asia Other Q Q 3Q 4Q 1Q 2Q Net Sales Trend for Electronic Device Product Business by Region (by Half Year) Electronic Device Product Business: Net Sales by Region ( billion) Japan China Other Asia Other H 2H (Forecast)

21 Trend of Capital Investment by Region (by Half Year) Capital Investment ( billion) Japan Asia Europe / the U.S FY2012 2H FY H 8.1 The blue graph represents results based on the conventional accounting period (consolidation of two different accounting periods); the green graph represents forecasts based on the current unified accounting period. Capital investment includes the acquisition of intangible assets H (Forecast) Trend of Depreciation by Region (by Half Year) Depreciation ( billion) Japan Asia Europe / the U.S FY H FY H The blue graph represents results based on the conventional accounting period (consolidation of two different accounting periods); the green graph represents forecasts based on the current unified accounting period. From, deprecation of property, plant and equipment is calculated based on the straight-line method. 2H (Forecast)

22 References

23 Corporate History 1939 Edogawa Seiki Co., Ltd. founded 1941 Japan Bearing Production Co., Ltd. founded in Kobe Tokyo Oil Seal Industry Co., Ltd. merges with Nippon Yushi Industry Co., Ltd., and the company name changed to Nippon Oil Seal Industry Co., Ltd Subsidiary NOK KLUEBER CO., LTD. established 1978 Equity stake taken in Pyung Hwa Oil Seal Industry Co., Ltd. (South Korea) 1995 Subsidiary Wuxi NOK-Freudenberg Oilseal Co., Ltd. established in China 1996 Subsidiary named P.T. NOK Indonesia established in Indonesia; subsidiary named NOK Asia Co., Ptd. Ltd. established in Singapore 2013 Neopt Corporation s business transferred to Eagle Industry Co., Ltd ( billion) Capital participation agreement concluded with Carl Freudenberg KG (Germany) Listed on the Tokyo Stock Exchanges 1968 NOK-USA, Inc. established (changes its name to NOK INC. in 1980) 1969 Subsidiary NIPPON MEKTRON, LTD. established 12.5% 12.0% % % % 7.6% % 5.6% Company name changed from Nippon Oil Seal Industry Co., Ltd. to NOK CORPORATION 1988 Subsidiary named THAI NOK CO., LTD. established in Thailand 1989 Subsidiary NOK EG&G Optoelectronics Co., Ltd. established 1989 FREUDENBERG-NOK G.P. established as an affiliate company in the U.S. Net Sales Trend Net Sales Operating Income Operating Margin 1.6% % % 2000 SIGMA FREUDENBERG NOK PVT. LTD. established as an affiliate company in India 2002 Subsidiary named UNIMATEC CO., LTD. established 2004 Subsidiary named VIETNAM NOK CO., LTD. established in Vietnam 2007 Subsidiary named SYNZTEC CO., LTD. 6.1% % 5.5% % FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 (Forecast) % % 12.0% 1% 8.0% 6.0% 4.0% 2.0% % Global Deployment

24 NOK Group Strengths NOK Group companies make up a Group of Compound Technology Manufacturers like one firm connected to each division, an enterprise group sharing core technologies. Each company boasts its individual strengths while sharing a common vision, and conducts business operations to handle any and all client requirements. NOK s R&D The Shonan Development Center aggregates all of NOK s advanced technologies, and was established with the aim of accelerating the development process. This development system removes barriers between each division, and provides a self contained comprehensive approach from product design through shipment inspections. The center actively promotes merging R&D and production technologies, churning out products with unique cutting edge technology that can t be imitated by others. POINT NOK s Shonan Development Center was opened in 2005 as a think tank concentrating all the company s advanced technologies, striving to be global No. 1 technology creator. The Center has functional abilities in materials technologies, evaluation analysis technologies and production technologies, making possible self contained operations execution. NOK responds to the needs of society, and will further pursue R&D in order to continue supplying products that contribute to daily living convenience and the environment.

25 NOK Major Products: Oil Seals Oil seals are a functional part to seal oil. For moving parts of machinery, revolving and vertical up and down motion etc, oil seals prevent leakage of lubricant oils, water, chemical solutions, gas etc, and also prevent outside particulates from getting in. They are indispensable parts for a wide range of machinery types including automobiles, ships, planes, air conditioners, washing machines, water works etc. (Example of Use) POINT NOK s history is the history of oil seals. The road to becoming Japan s No. 1 oil seal maker began in 1960, when the company concluded a technology partnership agreement with Carl Freudenberg KG of the former West Germany. After that the company built a production plant in the US when there was still only one Japanese auto manufacturer located there, eventually supplying oil seals to the US Big 3. Today the company boasts top shares domestically of 70% and globally 50%, recognized for its reliability and actual performance results. NOK Major Products: Flexible Printed Circuits (FPC) Flexible printed circuits (FPC) are flexible circuit boards based on films. Thanks to the functionality of flexible printed circuit boards, compact cellular phones became a reality. Applications are not limited to cell phones, but also cover many areas including digital cameras and notebook PCs. (Example of Use) This is electronics business of NOK Group company NIPPON MEKTRON, LTD. These thin and light circuit boards are used in smart phones. FPCs which have the characteristics of being thin, lightweight and flexible, are expected to see further increased functionality in the future. NOK has the No. 1 domestic and global shares.

26 NOK Products in Automobiles 㟷 䛻ኚ 㓄 ኚ Ꮠᣑ Market Trends by Sector: Motor Vehicle Unit Production (by Half Year, Fiscal Year) Motor Vehicle Unit Production (Thousands of units) Domestic Export 15,000 9,000 14,070 13,497 13,347 8,328 8,564 9,300 2,350 2,283 2,236 2,020 2,355 2,394 2,886 2,547 2,750 Oct-Mar FY2012 Apr-Sep Oct-Mar Apr-Sep Oct-Mar (Forecast) 12,789 12,603 12,151 7,695 7,509 8,045 2,371 2,288 2,538 Apr-Sep FY ,000 Overseas Production 6,000 3,000 0 From, the value for overseas production has been modified to include completed vehicle units produced overseas in addition to knock-down units. Source: Estimates by NOK CORPORATION

27 NOK Products in General Industrial Machinery Market Trends by Sector: Construction Machinery Domestic Unit Production (by Half Year, Fiscal Year) Construction Machinery Domestic Unit Production ق Units ك 120, ,000 80,000 74,641 66,627 76,346 81,282 75,504 77,500 Apr-Sep Oct-Mar (Forecast) 60,000 40,000 20,000 0 Apr-Sep FY2012 Oct-Mar FY2012 Apr-Sep Oct-Mar Source: Estimates by NOK CORPORATION

28 NOK Products in IT Electronic Devices Boasting the top global share of flexible circuits (FPC), these are used in a wide range of advanced electronic devices. Also, multilayer flexible boards (Flex-Boards) made with advanced technology is indispensable for the miniaturization and high functionality of IT electronic devices. They are also widely used in waterproof electronic devices. FPC for Smartphones Flex-Boards for Digital Cameras FPC for Tablet PC FPC for Hard Disk Drives Market Trends by Sector: Mobile Phone Worldwide Unit Shipments (by Half Year, Calendar Year) Mobile Phone Worldwide Unit Shipments (Millions of units) 1,500 Smartphones Other 1, , Jan-Jun CY Jul-Dec CY2012 Jan-Jun CY Jul-Dec CY2013 Jan-Jun CY Jul-Dec CY2014 (Forecast) Source: Estimates by NOK CORPORATION

29 Market Trends by Sector: Hard Disk Drives Worldwide Unit Production (by Half Year, Calendar Year) (Million of units) 500 Hard Disk Drives Worldwide Unit Production Jan-Jun CY2012 Jul-Dec CY2012 Jan-Jun CY2013 Jul-Dec CY2013 Jan-Jun CY2014 Jul-Dec CY2014 (Forecast) Source: Estimates by NOK CORPORATION Market Trends by Sector: Digital Camera Domestic Unit Shipments (by Half Year, Calendar Year) Digital Camera Domestic Unit Shipments (Million of units) 100 Single-Lens Reflex-type Compact-type Jan-Jun CY2012 Jul-Dec CY2012 Jan-Jun CY Jul-Dec CY Jan-Jun CY2014 Jul-Dec CY2014 (Forecast) Source: Estimates by NOK CORPORATION

30 Market Trends by Sector: Tablet PC Worldwide Unit Shipments (by Half Year, Calendar Year) (Millions of units) Tablet PC Worldwide Unit Shipments Jan-Jun CY2012 Jul-Dec CY2012 Jan-Jun CY2013 Jul-Dec CY2013 Jan-Jun CY2014 Jul-Dec CY2014 (Forecast) Source: Estimates by NOK CORPORATION

31 Contact: NOK CORPORATION CORPORATE PLANNING OFFICE CORPORATE PLANNING DEPT. CORPORATE COMMUNICATION SECT. Phone: URL:

32 Segment Information: Fiscal 2014 Forecasts Nov 11, 2014 NOK Corporation (Millions of yen) Segment Fiscal (Results) Fiscal 2H, Results & Annual Forecasts Year-on-Year Year-on-Year Year-on-Year Fiscal % Change Fiscal 2H % Change Change Change Change % Change External sales 141, , , ,315 4, % 150,100 3, % 296,416 7, % Inter-segment sales 1,858 1,353 3,211 1, , , Net Sales 143, , , ,809 3, ,315 3, ,124 7,187 Seal Operating Income 13,581 15,386 28,967 15,725 2, % 17,274 1, % 33,000 4, % Business Profit Margin 9.4% 10.4% 9.9% 10.6% 1.2pt 11.4% 1.0pt 11.0% 1.1pt Capital Investment 10,965 10,949 21,914 9,240 1,725 13,060 2,111 22, Depreciation 9,419 10,127 19,546 6,676 2,743 7,824 2,303 14,500 5,046 No. of Personnel 19,612 19,086 19,086 19, , , External sales 130, , , ,039 16, % 154,234 5, % 301,273 21, % Inter-segment sales Electronic Net Sales 130, , , ,043 16, ,234 5, ,277 21,883 Device Operating Income 512 6,472 6,984 8,152 7,640-9,000 2, % 17,152 10, % Product Profit Margin 0.4% 4.3% 2.5% 5.5% 5.2pt 5.8% 1.5pt 5.7% 3.2pt Business Capital Investment 9,071 9,288 18,359 8, ,229 4,059 14,100 4,259 Depreciation 8,004 8,648 16,652 7, , , No. of Personnel 25,007 22,345 22,345 22, , , External sales 14,799 14,708 29,507 14, % 13,667 1, % 28,488 1, % Inter-segment sales Net Sales 14,799 14,708 29,507 14, ,667 1,041 28,488 1,019 Roll Operating Income 1,053 1,164 2,217 1, % % 1, % Business Profit Margin 7.1% 7.8% 7.4% 8.3% 1.2pt 4.0% 3.7pt 6.3% 1.2pt Capital Investment ,327 1,152 1,800 1,568 Depreciation , , No. of Personnel 2,477 2,694 2,694 2, , , External sales 5,564 5,800 11,364 5, % 5, % 11, % Inter-segment sales Net Sales 5,864 6,100 11,964 5, , , Other Operating Income % % % Business Profit Margin 5.7% 7.1% 6.4% 7.2% 1.5pt 2.8% 4.3pt 5.0% 1.5pt Capital Investment Depreciation No. of Personnel Elimination of Inter-segment sales 2,158 1,653 3,811 1, , , External sales 292, , , ,951 21, % 324,000 7, % 638,000 29, % Inter-segment sales Net Sales 292, , , ,951 21, ,000 7, ,000 29,009 Consolidated Operating Income 15,481 23,466 38,947 25,549 10, % 27,000 3, % 52,500 13, % Profit Margin 5.3% 7.4% 6.4% 8.1% 2.9pt 8.3% 0.9pt 8.2% 1.8pt Capital Investment 20,114 20,501 40,615 18,688 1,426 19, ,400 2,215 Depreciation 17,992 19,439 37,431 15,220 2,772 16,280 3,159 31,500 5,931 No. of Personnel 47,286 44,272 44,272 44, ,385 1,113 45,385 1,113 Note: The above forecasts are based on currently available information. Actual performance may differ substantially from these forecasts due to various factors. :Year-on-Year change of No.of Personnel is calculated by comparing with a previous term. The actual performance for that was used in the Year-on-Year comparison for the outlook for FY 2014 is the performance that was re-composed at the Company (April to March for both domestic and overseas subsidiaries). Subjects of the re-composition: Net sales to external customers, inter-segment net sales, net sales, operating income :Consolidated forecasts of FY 2014 is handled a fraction.