NSK Ltd.

NSK REP ORT 2016
Year ended March 31, 2016 
Integrated Report

NSK REPORT 2016

CONTENTS

The Complete Picture of NSK

01

02

04

06

10

14

Mission Statement

Business Development History

NSK’s Business

Corporate Value Creation Model

NSK’s Business Activities and Corporate Value Creation

Financial and Non-Financial Highlights

Creating Corporate Value (Growth Strategies)

18

24

26

30

To Our Stakeholders

Looking Back on Past Mid-Term Management Plans

The Fifth Mid-Term Management Plan

Financial Strategy / Policy on Shareholder Returns

Corporate Value Results

32

Review of Operations

32　Industrial Machinery Business

34 　Automotive Business

The Underlying Strength of Corporate Value

36

38

40

54

NSK’s Four Core Technologies

Global Business Platform

CSR / ESG Management

Management

Data Section

NSK Report 2016 Editorial Policy

Effective from the fiscal year ended March 31, 2016, NSK has upgraded and 
expanded the format and content of its Annual Report. The NSK Report 
2016, which provides a complete picture of the Company together with the 
story and results of efforts to create corporate value as well as a 
comprehensive account of NSK’s underlying strengths, is designed to 
provide all stakeholders with a deeper understanding of the Company.

This Report provides a concise summary of all information deemed 

important in the Group’s efforts to create corporate value. For more 
detailed information about the NSK Group’s products, business activities, 
and financials, we ask that you refer to the Company’s website. Detailed 
information about NSK’s approach to and initiatives in corporate social 
responsibility (CSR) can be found in the CSR section of our website and in 
our CSR Report.

In putting together this Report, we referred to the International 

Integrated Reporting Framework of the International Integrated Reporting 
Council (IIRC).

Disclaimer

Statements made in this annual report with respect to plans, strategies and 
future performance that are not historical facts are forward-looking statements. 
NSK cautions that a number of factors could cause actual results to differ 
materially from those discussed in forward-looking statements.

This document is an English translation of (cid:672)NSK Report 2016(cid:673) dated 

September 1, 2016, that was originally prepared in the Japanese language, and it 
is provided for convenience purposes only. Therefore, this document does not 
include any event that has occurred, or has been found to have occurred, on or 
after September 1, 2016. NSK makes no representation or warranty that this 
document is a complete or accurate translation of the original Japanese text, 
and it is not intended to be relied upon. In the event that there is a discrepancy 
between the Japanese and English versions, the Japanese version shall prevail. 
This document is not intended and should not be construed as an inducement to 
purchase or sell stock in NSK.

Highly Evaluated by Outside Agencies

Over and above their financial aspects, companies that merit high evaluations for 
their environmental and social contributions are being recognized for their 
promise of long-term sustainable growth. These companies are also attracting 
interest from a socially responsible investment (SRI) perspective while forging an 
increasingly important presence among a wide range of institutional investors. 
Acknowledged for its integrity, NSK has been included in the following 
internationally recognized SRI indices as of September 2016.

56

64

66

68

70

72

Consolidated Financial Statements

Analysis of Business Results for the Year Ended March 31, 2016

Basic Knowledge of Bearings

http://www.sustainability-
indices.com/

http://www.ftse.com/products
/indices/FTSE4Good

http://forumethibel.org/content
/ethibel_sustainability_index.html

Mission Statement and NSK Vision 2026

Glossary

NSK Group

Information for Investors / Company Data

http://www.vigeo.com/csr-
rating-agency/en/actualites-a-
presse/blog-9

http://www.oekom-research.com
/index_en.php?content=methodik

http://www.morningstar.
co.jp/sri/about.htm

more comfortable and more prosperous society.

Note: For details, please refer to page 73.

NSK REPORT 2016

01

NSK has identified efforts to contribute to the well-being and safety of society through innovative technology 

integrating MOTION & CONTROLTM as its overarching Mission Statement. On this, the occasion of its 100th 

anniversary, the Company has also established NSK Vision 2026 to guide its progress over the next 10 years. 

With the concept of (cid:672)Setting the Future in Motion,(cid:673) NSK will work as one to provide a safer, more secure, 

Mission Statement

NSK aims to contribute to the well-being and safety of society and to protect the global 

environment through its innovative technology integrating MOTION & CONTROLTM. 

We are guided by our vision of NSK as a truly international enterprise, and are working 

across national boundaries to improve relationships between people throughout the world.

Management Principles

1(cid:633)To serve our customers through innovative and responsive solutions, 

taking advantage of our world leading technologies.

2(cid:633)To provide challenges and opportunities to our employees, 

channeling their skills and fostering their creativity and individuality.

3(cid:633)To identify the needs of the times and of the future and to use all of NSK's 

resources to meet those needs by being versatile, responsive and dynamic.

4(cid:633)To work together with our employees and contribute to the communities 

in which we operate.

5(cid:633)To manage our business from an international 

perspective and to develop a strong presence throughout the world.

S E T T I N G   T H E   F U T U R E   I N   M O T I O N

NSK Vision 2026

We bring motion to life,

to enrich lifestyles,

and to build a brighter future. 

Dedicated to uncovering society's needs,

we set ideas in motion

to deliver solutions beyond imagination. 

We're NSK.

And, we're setting the future in motion.

 
 
 
 
 
NSK REPORT 2016

CONTENTS

The Complete Picture of NSK

Mission Statement

Business Development History

NSK’s Business

Corporate Value Creation Model

01

02

04

06

10

14

18

24

26

30

36

38

40

54

56

64

66

68

70

72

NSK’s Business Activities and Corporate Value Creation

Financial and Non-Financial Highlights

Creating Corporate Value (Growth Strategies)

To Our Stakeholders

Looking Back on Past Mid-Term Management Plans

The Fifth Mid-Term Management Plan

Financial Strategy / Policy on Shareholder Returns

Corporate Value Results

32

Review of Operations

32　Industrial Machinery Business

34 　Automotive Business

The Underlying Strength of Corporate Value

NSK’s Four Core Technologies

Global Business Platform

CSR / ESG Management

Management

Data Section

Consolidated Financial Statements

Analysis of Business Results for the Year Ended March 31, 2016

Glossary

NSK Group

Information for Investors / Company Data

NSK Report 2016 Editorial Policy

Effective from the fiscal year ended March 31, 2016, NSK has upgraded and 

expanded the format and content of its Annual Report. The NSK Report 

2016, which provides a complete picture of the Company together with the 

story and results of efforts to create corporate value as well as a 

comprehensive account of NSK’s underlying strengths, is designed to 

provide all stakeholders with a deeper understanding of the Company.

This Report provides a concise summary of all information deemed 

important in the Group’s efforts to create corporate value. For more 

detailed information about the NSK Group’s products, business activities, 

and financials, we ask that you refer to the Company’s website. Detailed 

information about NSK’s approach to and initiatives in corporate social 

responsibility (CSR) can be found in the CSR section of our website and in 

In putting together this Report, we referred to the International 

Integrated Reporting Framework of the International Integrated Reporting 

our CSR Report.

Council (IIRC).

Disclaimer

Statements made in this annual report with respect to plans, strategies and 

future performance that are not historical facts are forward-looking statements. 

NSK cautions that a number of factors could cause actual results to differ 

materially from those discussed in forward-looking statements.

This document is an English translation of (cid:672)NSK Report 2016(cid:673) dated 

September 1, 2016, that was originally prepared in the Japanese language, and it 

is provided for convenience purposes only. Therefore, this document does not 

include any event that has occurred, or has been found to have occurred, on or 

after September 1, 2016. NSK makes no representation or warranty that this 

document is a complete or accurate translation of the original Japanese text, 

and it is not intended to be relied upon. In the event that there is a discrepancy 

between the Japanese and English versions, the Japanese version shall prevail. 

This document is not intended and should not be construed as an inducement to 

purchase or sell stock in NSK.

Highly Evaluated by Outside Agencies

Over and above their financial aspects, companies that merit high evaluations for 

their environmental and social contributions are being recognized for their 

promise of long-term sustainable growth. These companies are also attracting 

interest from a socially responsible investment (SRI) perspective while forging an 

increasingly important presence among a wide range of institutional investors. 

Acknowledged for its integrity, NSK has been included in the following 

internationally recognized SRI indices as of September 2016.

Mission Statement

NSK aims to contribute to the well-being and safety of society and to protect the global 
environment through its innovative technology integrating MOTION & CONTROLTM. 
We are guided by our vision of NSK as a truly international enterprise, and are working 
across national boundaries to improve relationships between people throughout the world.

Management Principles

1(cid:633)To serve our customers through innovative and responsive solutions, 

taking advantage of our world leading technologies.
2(cid:633)To provide challenges and opportunities to our employees, 

channeling their skills and fostering their creativity and individuality.
3(cid:633)To identify the needs of the times and of the future and to use all of NSK's 
resources to meet those needs by being versatile, responsive and dynamic.

4(cid:633)To work together with our employees and contribute to the communities 

in which we operate.

5(cid:633)To manage our business from an international 

perspective and to develop a strong presence throughout the world.

NSK Vision 2026

S E T T I N G   T H E   F U T U R E   I N   M O T I O N

We bring motion to life,
to enrich lifestyles,
and to build a brighter future. 

Dedicated to uncovering society's needs,
we set ideas in motion
to deliver solutions beyond imagination. 

We're NSK.
And, we're setting the future in motion.

Basic Knowledge of Bearings

http://www.sustainability-

http://www.ftse.com/products

http://forumethibel.org/content

indices.com/

/indices/FTSE4Good

/ethibel_sustainability_index.html

Mission Statement and NSK Vision 2026

http://www.vigeo.com/csr-

rating-agency/en/actualites-a-

presse/blog-9

http://www.oekom-research.com

/index_en.php?content=methodik

http://www.morningstar.

co.jp/sri/about.htm

NSK has identified efforts to contribute to the well-being and safety of society through innovative technology 
integrating MOTION & CONTROLTM as its overarching Mission Statement. On this, the occasion of its 100th 
anniversary, the Company has also established NSK Vision 2026 to guide its progress over the next 10 years. 
With the concept of (cid:672)Setting the Future in Motion,(cid:673) NSK will work as one to provide a safer, more secure, 
more comfortable and more prosperous society.
Note: For details, please refer to page 73.

NSK REPORT 2016

01

 
 
 
 
 
The Complete Picture of NSK
Business Development History

100 Years of NSK

NSK’s Business Development History, 
Depth of Overseas Production and Widespread Product Use
Located in Osaki-cho, Ebara-gun, Tokyo Prefecture (current headquarters: Osaki, Shinagawa-ku, Tokyo), NSK was established 
as Japan’s first manufacturer of bearings in 1916. Since then, the Company has developed an array of innovative technologies, 
contributed  to  the  reduction  of  energy  loss  and  underpinned  the  development  of  industry  worldwide  through  its  overseas 
operations. Looking ahead to the next 100 years, NSK will endeavor to take another dramatic leap forward and enhance its value 
to establish a presence that is vital to society.

NSK Company’s website

History

▶ http://www.nsk.com/company/history/

1916-1957

1958-1983

1984-1993

1994-2008

2009-2016

Founding, Early Years and 
the Postwar Reconstruction 
Period
NSK spent its early years putting in place a 
structure and system that specialized in 
bearings while steadily increasing production. 
After the war, every effort was made to 
develop bearings for a variety of industries 
and to help Japan’s reconstruction.
After returning from a tour of the West, NSK’s 
founder, Takehiko Yamaguchi, established Nippon 
Seiko Limited Partnership Company in 1914 with 
the aim of locally manufacturing precision 
machinery components. Buoyed by the successful 
trial production of bearings in 1915, he founded 
NSK Ltd. in 1916 and commenced mass 
production. NSK upgraded and expanded its 
product lineup and put in place a dedicated 
structure and system. Under a policy of (cid:672)technology 
first,(cid:673) NSK became the leader of the Japanese 
bearing industry. Under orders from the 
government, the Company set up a system to boost 
production of aircraft and automotive bearings.
After the war, NSK focused on resuming 
operations at its plants. Considerable emphasis 
was placed on supporting the nation’s recovery 
through the development and manufacture of 
bearings across the automotive, rail, textile and 
iron-making fields. Around 1948, the Company 
began exporting several products and cultivating 
opportunities overseas.
opportunities overseas.

Full-Scale Start-Up of 
Business Diversification and 
Globalization
In addition to expanding production and increasing 
its technological capabilities, the Company took 
steps to diversify its business activities.
Moreover, NSK began building a global sales and 
production network to develop its overseas 
business in earnest.
From Japan’s postwar reconstruction through 
the early stages of its high economic growth, 
demand for bearings continued to expand. NSK 
worked diligently to modernize its plant and 
equipment while increasing production through 
the development of innovative technologies. 
NSK also established a new plant in western 
Japan and increased its production capacity as 
well as new technology research centers to 
enhance technological capabilities. The 
Company diversified its activities by technology 
tie-ups with overseas companies, and entered 
into joint ventures, thus expanding into various 
fields including steering systems, seat belts, 
components for automatic transmissions and 
ball screws for machine tools. Around the same 
time, NSK pushed forward an overseas 
business strategy including the development of 
a global sales and production network. 
Spearheaded by the United States (1962) and 
Germany (1963), NSK established sales offices 
and local entities outside Japan. This quickly led 
to the start of overseas production from 1970.

NSK’s 
Business 
Development

Initial Production Sites in Each Country and Current Number of Production Sites in Each Region

1998 Poland

FLT ISKRA S.A. (cid:724)

1976 United Kingdom

Peterlee

1990 Germany

NEUWEG FERTIGUNG 

GMBH (cid:724) 

1990 Switzerland

WAELZLAGER 

INDUSTRIEWERKE BULLE AG 

(cid:724) (cid:727)

1998 India

Chennai (steerings)

［Americas: 9］

［Europe: 9］

［China: 12］

［Other Asia: 13］

1996 Thailand

Wellgrow (steerings)

Amata Nakorn (seat belts) (cid:727)

1991 Malaysia

ISC MICRO PRECISION SDN.BHD.

1971 South Korea

KOREA PRECISION IND. CO. LTD. (cid:727)

1997 China

Kunshan

1995 Indonesia

Jakarta

1970 Australia

Geelong (cid:727)

1973 U.S.

Ann Arbor (cid:724) (cid:727)

2014 Mexico

Silao

1972 Brazil

Suzano

*Year and site of production start in each 

country and region.

*Data in parentheses are the number of 

current production sites.

Unmarked site: Newly established production site.　

● Entry through acquisition or in conjunction 

with a joint-venture partner.

◆ Subsequent closure or withdrawal.

Undertaking the Challenge of 

MOTION & CONTROLTM while 

Promoting Globalization

Promoting Business Structural 

Reforms as a Part of the 

Company’s Transformation

In addition to its focus on MOTION & CONTROLTM, 

While transitioning from selection and 

Looking toward 

NSK’s 100th Anniversary

concentration to a growth track, NSK actively 

cultivated emerging markets. Against a 

After overcoming the downturn attributable to 

the Lehman shock, NSK endeavored to establish 

the corporate fundamentals appropriate for a 

through the continued overseas expansion of its 

energy and other demand, the Company 

production, R&D and sales functions.

sought to expand both revenue and earnings.

Based on the NSK Vision 2026, the Company is 

embarking on a new chapter in its evolution 

backdrop of growing EPS, infrastructure, new 

company with net sales of (cid:711)1 trillion.

NSK newly established the NSK corporate 

philosophy. At the same time, the Company 

sought to further globalize its operations 

Affected by shifts in the economic environment, 

NSK addressed the need to expand on a 

quantitative basis and to evolve qualitatively. In 

addition to developing products that help to 

freely control motion under the new corporate 

identity of MOTION & CONTROL™, the 

Company put in place a new corporate 

philosophy on its 75th anniversary aiming to 

contribute to the well-being and safety of 

through its worldwide activities. NSK 

endeavored to meet the automotive, electrical 

equipment and other needs of Japanese 

companies seeking to expand their overseas 

operations. The Company also put in place a 

three-pronged R&D structure encompassing 

Japan, the United States and Europe while 

further reinforcing its sales network through 

the establishment of local subsidiaries in 

Thailand, Taiwan, Mexico and Spain. Moreover, 

NSK acquired the U.K.-based UPI Group as a 

part of efforts to aggressively expand its 

business.

NSK took steps to reform the structure of its 

business in response to a deterioration in its 

earnings against the backdrop of the collapse of 

Japan’s economic bubble and the economic 

crisis in Asia. In addition to reorganizing 

production and sales in Japan, the Company’s 

structural reforms included the transfer and 

integration of various products between plants in 

Europe and a review of its sales structure. NSK 

joint-venture needle bearings business to a 

wholly owned subsidiary and to sell its seat-belt 

business. To lay a foundation for the future, the 

Company rolled out new plants in such emerging 

markets as China, Indonesia, Thailand and India. 

Steps were also taken to acquire a former 

state-owned bearing company in Poland. NSK 

worked diligently to capture a share of the 

markets attributable to EPS growth and the 

growing demand for infrastructure by the 

so-called BRICs and new energy including wind 

power generation. In line with its steady 

transformation, NSK reported record sales and 

earnings in fiscal 2007.

toward the next 100 years.

Through a variety of measures and hard work, 

NSK overcame considerable difficulties in the 

wake of the Lehman shock and is moving 

steadily toward its 100th anniversary. The 

Company reported record revenue and earnings 

in fiscal 2014 and 2015 and is well on its way to 

becoming a company with net sales of (cid:711)1 

trillion. NSK maintains a global network of 

more than 31,000 employees spread across 210 

locations in 30 countries worldwide. However, 

NSK’s business environment is experiencing 

unprecedented change. Technology innovation 

in the automotive and industrial machinery 

sectors is progressing at a rapid pace. While 

NSK continuously implements the necessary 

measures to establish the corporate 

fundamentals appropriate for a company with 

net sales of (cid:711)1 trillion, the Company has put in 

place a vision that will guide it over the next 

decade. Embarking on a new chapter of 

evolution toward the next 100 years, the 

Company is setting the future in motion as it 

works to realize its vision.

societies and to protect the global environment 

pushed forward efforts to upgrade its 

Major Domestic 
and 
Worldwide Trends 
and Events

Development of 
Typical Products 
and Technologies

Takehiko Yamaguchi, 
first president of NSK Ltd.

Replica bearings created according 
to the oldest blueprint in existence 
at NSK

Diversifying products 
Diversifying products 
Ball screws

Brazil Plant
Brazil Plant

As Japan took its first steps toward industrialization, 
the local manufacture of machine parts became an 
increasingly important issue and vital to the nation’s 
ongoing development. With Japan on a war footing, calls 
for domestic production and increased output then took 
on a greater sense of urgency. In the period immediately 
following the war, Japan struggled under the dual burdens 
of insufficient supply and rising inflation. The Korean War 
then triggered a recovery due to special procurements and 
robust demand.

From the 1960s, Japan enjoyed a period of high economic 
growth. In addition to the widespread use of electric home 
appliances, motorization helped drive demand for 
transportation infrastructure including roads and railways as 
well as an increase in automobile production. Spearheaded by 
technology innovation and the flood of new products, demand 
continued to surge. As for overseas business, Japanese 
companies focused on export activities during this period. In the 
1970s, Japan experienced successive oil shocks. Thereafter, the 
nation transitioned to a period of stable economic growth.

1915 Japan-First First ball bearing in Japan
1926 Japan-First Cylindrical roller bearings for aircraft engines
1945 Japan-First Main bearings for domestically produced jet engines
Extra large self-aligning roller bearings for thermal 
1948 Japan-First
power plants
1948 Japan-First Large four-row tapered roller bearings for work 
1949 Japan-First Miniature ball bearings for cameras

rolls used in steel rolling mills

1958 Japan-First Ball screws
1959 Ball screw-type steering systems
Stainless-steel miniature ball bearings for 
1961 World-First
ultra-high-speed dental handpieces
1963 Japan-First Bearings for Shinkansen bullet trains
High-precision bearings for video tape 
1975 World-First
recorders (VTRs)
1979 World-First Bearing fatigue analysis technologies

Acquired the UPI Group

Kunshan Plant

A bearing for wind turbines

100th anniversary corporate advertisement

NSK’s 

Corporate Philosophy

Triggered by the Plaza Accord in 1985, the value of the 

yen increased sharply. This in turn led to trade friction. 

Against this backdrop, Japanese companies accelerated 

overseas expansion led mainly by the automobile and 

electric equipment sectors. Driven by the shift in 

demand attributable to this overseas growth by NSK’s 

customers, calls for local production continued to 

expand. Buffeted by the emergence and collapse of 

Japan’s economic bubble, trends in domestic demand 

changed significantly.

After the collapse of Japan’s economic bubble, the domestic 

economy stalled. Affected also by Asia’s currency crisis, several 

major financial institutions filed for bankruptcy. As a result, Japan 

fell into a period of economic crisis. Despite robust conditions in 

IT-related fields as a result of the rapid penetration of personal 

computers, corrections by the market later contributed to 

a deterioration in economic conditions. Entering the new 

millennium, emerging countries that overcame the confusion 

caused by Asia’s currency crisis saw their economies grow at 

a fast pace. This helped to drive the world economy forward.

Owing mainly to credit instability attributable to the subprime 

mortgage problem in the United States, and exacerbated by 

the Lehman shock in 2008, most major economies fell into a 

simultaneous recession. Burdened by the strong yen, the 

Japanese economy also experienced a prolonged period of 

downturn due largely to such issues as the Great East Japan 

Earthquake in 2011 and the difficulties in Europe caused by 

the financial crisis in Greece. As adjustments were made to 

correct the strong yen and stock prices began to climb, signs 

of a recovery finally began to emerge from the end of 2012.

1984

1985

1984 World-First

factory automation

Direct-drive motors and Megatorque MotorsTM for 

1999 World-First

(CVTs)

Half-toroidal continuously variable transmission 

2009 World-First Electro-mechanical integrated column-type EPS

World-First

large screen TVs

Mask exposure devices for semiconductors and 

2004

World-First

The world’s smallest deep groove ball bearings (inner 

diameter 0.6 mm; outer diameter 2.0 mm; width 0.8 mm)

2010 Japan-First

altitude control

High-performance wheel bearings for satellite 

Japan-First

Bearings for passenger jet engines (V2500)

1986 World-First

Electric power steering (EPS) systems for 

battery-powered forklifts

1991 Bearings made from ultra-high purity (EP) steel

2004 NSKHPSTM series  of industrial machinery high performance 

standard bearings

2011 World-First Low-friction ball screws for regenerative braking system 

applications used in electric and hybrid cars

2005 Full complement cylindrical roller bearings for wind turbines

2011 World-First Ball screws for seismic dampeners used in buildings

2007

World-First

Hub unit bearing with an integrated multi-sensor that 

can detect road load in three directions

2012 Japan-First Axle sensor bearings for passenger train cars

1991 Japan-First Integrated single-axle actuator, MonocarrierTM

2008 Manipulation system that enables fine processing

2013 World-First Lubricant grease derived from 100% food-grade ingredients

02

NSK REPORT 2016

NSK REPORT 2016

03

The Complete Picture of NSK

Business Development History

100 Years of NSK

NSK’s Business Development History, 

Depth of Overseas Production and Widespread Product Use

Located in Osaki-cho, Ebara-gun, Tokyo Prefecture (current headquarters: Osaki, Shinagawa-ku, Tokyo), NSK was established 

as Japan’s first manufacturer of bearings in 1916. Since then, the Company has developed an array of innovative technologies, 

contributed  to  the  reduction  of  energy  loss  and  underpinned  the  development  of  industry  worldwide  through  its  overseas 

operations. Looking ahead to the next 100 years, NSK will endeavor to take another dramatic leap forward and enhance its value 

to establish a presence that is vital to society.

NSK Company’s website

History

▶ http://www.nsk.com/company/history/

Initial Production Sites in Each Country and Current Number of Production Sites in Each Region

1998 Poland
FLT ISKRA S.A. (cid:724)

1976 United Kingdom
Peterlee

1990 Germany
NEUWEG FERTIGUNG 
GMBH (cid:724) 

1990 Switzerland
WAELZLAGER 
INDUSTRIEWERKE BULLE AG 
(cid:724) (cid:727)

1998 India
Chennai (steerings)

［Europe: 9］

［China: 12］

［Other Asia: 13］

［Americas: 9］

1996 Thailand
Wellgrow (steerings)

Amata Nakorn (seat belts) (cid:727)

1991 Malaysia
ISC MICRO PRECISION SDN.BHD.

1971 South Korea
KOREA PRECISION IND. CO. LTD. (cid:727)

1997 China
Kunshan

1995 Indonesia
Jakarta

1970 Australia
Geelong (cid:727)

1973 U.S.
Ann Arbor (cid:724) (cid:727)

2014 Mexico
Silao

1972 Brazil
Suzano

*Year and site of production start in each 

country and region.

*Data in parentheses are the number of 

current production sites.

Unmarked site: Newly established production site.　
● Entry through acquisition or in conjunction 

with a joint-venture partner.

◆ Subsequent closure or withdrawal.

1916-1957

1958-1983

1984-1993

1994-2008

2009-2016

Founding, Early Years and 

the Postwar Reconstruction 

Full-Scale Start-Up of 

Business Diversification and 

Period

Globalization

NSK spent its early years putting in place a 

structure and system that specialized in 

In addition to expanding production and increasing 

its technological capabilities, the Company took 

bearings while steadily increasing production. 

steps to diversify its business activities.

structure and system. Under a policy of (cid:672)technology 

enhance technological capabilities. The 

After the war, every effort was made to 

develop bearings for a variety of industries 

and to help Japan’s reconstruction.

After returning from a tour of the West, NSK’s 

founder, Takehiko Yamaguchi, established Nippon 

Seiko Limited Partnership Company in 1914 with 

the aim of locally manufacturing precision 

machinery components. Buoyed by the successful 

trial production of bearings in 1915, he founded 

NSK Ltd. in 1916 and commenced mass 

production. NSK upgraded and expanded its 

product lineup and put in place a dedicated 

first,(cid:673) NSK became the leader of the Japanese 

bearing industry. Under orders from the 

government, the Company set up a system to boost 

production of aircraft and automotive bearings.

After the war, NSK focused on resuming 

operations at its plants. Considerable emphasis 

was placed on supporting the nation’s recovery 

through the development and manufacture of 

bearings across the automotive, rail, textile and 

iron-making fields. Around 1948, the Company 

began exporting several products and cultivating 

opportunities overseas.

Moreover, NSK began building a global sales and 

production network to develop its overseas 

business in earnest.

From Japan’s postwar reconstruction through 

the early stages of its high economic growth, 

demand for bearings continued to expand. NSK 

worked diligently to modernize its plant and 

equipment while increasing production through 

the development of innovative technologies. 

NSK also established a new plant in western 

Japan and increased its production capacity as 

well as new technology research centers to 

Company diversified its activities by technology 

tie-ups with overseas companies, and entered 

into joint ventures, thus expanding into various 

fields including steering systems, seat belts, 

components for automatic transmissions and 

ball screws for machine tools. Around the same 

time, NSK pushed forward an overseas 

business strategy including the development of 

a global sales and production network. 

Spearheaded by the United States (1962) and 

Germany (1963), NSK established sales offices 

and local entities outside Japan. This quickly led 

to the start of overseas production from 1970.

Undertaking the Challenge of 
MOTION & CONTROLTM while 
Promoting Globalization
In addition to its focus on MOTION & CONTROLTM, 
NSK newly established the NSK corporate 
philosophy. At the same time, the Company 
sought to further globalize its operations 
through the continued overseas expansion of its 
production, R&D and sales functions.
Affected by shifts in the economic environment, 
NSK addressed the need to expand on a 
quantitative basis and to evolve qualitatively. In 
addition to developing products that help to 
freely control motion under the new corporate 
identity of MOTION & CONTROL™, the 
Company put in place a new corporate 
philosophy on its 75th anniversary aiming to 
contribute to the well-being and safety of 
societies and to protect the global environment 
through its worldwide activities. NSK 
endeavored to meet the automotive, electrical 
equipment and other needs of Japanese 
companies seeking to expand their overseas 
operations. The Company also put in place a 
three-pronged R&D structure encompassing 
Japan, the United States and Europe while 
further reinforcing its sales network through 
the establishment of local subsidiaries in 
Thailand, Taiwan, Mexico and Spain. Moreover, 
NSK acquired the U.K.-based UPI Group as a 
part of efforts to aggressively expand its 
business.

Promoting Business Structural 
Reforms as a Part of the 
Company’s Transformation
While transitioning from selection and 
concentration to a growth track, NSK actively 
cultivated emerging markets. Against a 
backdrop of growing EPS, infrastructure, new 
energy and other demand, the Company 
sought to expand both revenue and earnings.
NSK took steps to reform the structure of its 
business in response to a deterioration in its 
earnings against the backdrop of the collapse of 
Japan’s economic bubble and the economic 
crisis in Asia. In addition to reorganizing 
production and sales in Japan, the Company’s 
structural reforms included the transfer and 
integration of various products between plants in 
Europe and a review of its sales structure. NSK 
pushed forward efforts to upgrade its 
joint-venture needle bearings business to a 
wholly owned subsidiary and to sell its seat-belt 
business. To lay a foundation for the future, the 
Company rolled out new plants in such emerging 
markets as China, Indonesia, Thailand and India. 
Steps were also taken to acquire a former 
state-owned bearing company in Poland. NSK 
worked diligently to capture a share of the 
markets attributable to EPS growth and the 
growing demand for infrastructure by the 
so-called BRICs and new energy including wind 
power generation. In line with its steady 
transformation, NSK reported record sales and 
earnings in fiscal 2007.

Looking toward 
NSK’s 100th Anniversary

After overcoming the downturn attributable to 
the Lehman shock, NSK endeavored to establish 
the corporate fundamentals appropriate for a 
company with net sales of (cid:711)1 trillion.
Based on the NSK Vision 2026, the Company is 
embarking on a new chapter in its evolution 
toward the next 100 years.
Through a variety of measures and hard work, 
NSK overcame considerable difficulties in the 
wake of the Lehman shock and is moving 
steadily toward its 100th anniversary. The 
Company reported record revenue and earnings 
in fiscal 2014 and 2015 and is well on its way to 
becoming a company with net sales of (cid:711)1 
trillion. NSK maintains a global network of 
more than 31,000 employees spread across 210 
locations in 30 countries worldwide. However, 
NSK’s business environment is experiencing 
unprecedented change. Technology innovation 
in the automotive and industrial machinery 
sectors is progressing at a rapid pace. While 
NSK continuously implements the necessary 
measures to establish the corporate 
fundamentals appropriate for a company with 
net sales of (cid:711)1 trillion, the Company has put in 
place a vision that will guide it over the next 
decade. Embarking on a new chapter of 
evolution toward the next 100 years, the 
Company is setting the future in motion as it 
works to realize its vision.

NSK’s 

Business 

Development

Acquired the UPI Group

NSK’s 
Corporate Philosophy

Kunshan Plant

A bearing for wind turbines

100th anniversary corporate advertisement

Triggered by the Plaza Accord in 1985, the value of the 
yen increased sharply. This in turn led to trade friction. 
Against this backdrop, Japanese companies accelerated 
overseas expansion led mainly by the automobile and 
electric equipment sectors. Driven by the shift in 
demand attributable to this overseas growth by NSK’s 
customers, calls for local production continued to 
expand. Buffeted by the emergence and collapse of 
Japan’s economic bubble, trends in domestic demand 
changed significantly.

After the collapse of Japan’s economic bubble, the domestic 
economy stalled. Affected also by Asia’s currency crisis, several 
major financial institutions filed for bankruptcy. As a result, Japan 
fell into a period of economic crisis. Despite robust conditions in 
IT-related fields as a result of the rapid penetration of personal 
computers, corrections by the market later contributed to 
a deterioration in economic conditions. Entering the new 
millennium, emerging countries that overcame the confusion 
caused by Asia’s currency crisis saw their economies grow at 
a fast pace. This helped to drive the world economy forward.

Owing mainly to credit instability attributable to the subprime 
mortgage problem in the United States, and exacerbated by 
the Lehman shock in 2008, most major economies fell into a 
simultaneous recession. Burdened by the strong yen, the 
Japanese economy also experienced a prolonged period of 
downturn due largely to such issues as the Great East Japan 
Earthquake in 2011 and the difficulties in Europe caused by 
the financial crisis in Greece. As adjustments were made to 
correct the strong yen and stock prices began to climb, signs 
of a recovery finally began to emerge from the end of 2012.

World-First

Japan-First

Direct-drive motors and Megatorque MotorsTM for 
factory automation
Mask exposure devices for semiconductors and 
large screen TVs

1984 World-First
1984
1985
1986 World-First
1991 Bearings made from ultra-high purity (EP) steel
1991 Japan-First Integrated single-axle actuator, MonocarrierTM

Electric power steering (EPS) systems for 
battery-powered forklifts

Bearings for passenger jet engines (V2500)

World-First

Half-toroidal continuously variable transmission 
(CVTs)
The world’s smallest deep groove ball bearings (inner 
diameter 0.6 mm; outer diameter 2.0 mm; width 0.8 mm)

1999 World-First
2004
2004 NSKHPSTM series  of industrial machinery high performance 
2005 Full complement cylindrical roller bearings for wind turbines
Hub unit bearing with an integrated multi-sensor that 
2007
can detect road load in three directions
2008 Manipulation system that enables fine processing

standard bearings

World-First

2009 World-First Electro-mechanical integrated column-type EPS
High-performance wheel bearings for satellite 
2010 Japan-First
altitude control
2011 World-First Low-friction ball screws for regenerative braking system 
2011 World-First Ball screws for seismic dampeners used in buildings
2012 Japan-First Axle sensor bearings for passenger train cars
2013 World-First Lubricant grease derived from 100% food-grade ingredients

applications used in electric and hybrid cars

NSK REPORT 2016

03

Takehiko Yamaguchi, 

to the oldest blueprint in existence 

Ball screws

first president of NSK Ltd.

at NSK

Replica bearings created according 

Diversifying products 

Brazil Plant

As Japan took its first steps toward industrialization, 

the local manufacture of machine parts became an 

increasingly important issue and vital to the nation’s 

ongoing development. With Japan on a war footing, calls 

for domestic production and increased output then took 

on a greater sense of urgency. In the period immediately 

From the 1960s, Japan enjoyed a period of high economic 

growth. In addition to the widespread use of electric home 

appliances, motorization helped drive demand for 

transportation infrastructure including roads and railways as 

well as an increase in automobile production. Spearheaded by 

technology innovation and the flood of new products, demand 

following the war, Japan struggled under the dual burdens 

continued to surge. As for overseas business, Japanese 

of insufficient supply and rising inflation. The Korean War 

then triggered a recovery due to special procurements and 

robust demand.

companies focused on export activities during this period. In the 

1970s, Japan experienced successive oil shocks. Thereafter, the 

nation transitioned to a period of stable economic growth.

1915 Japan-First First ball bearing in Japan

1958 Japan-First Ball screws

1926 Japan-First Cylindrical roller bearings for aircraft engines

1959 Ball screw-type steering systems

1945 Japan-First Main bearings for domestically produced jet engines

1961 World-First

Stainless-steel miniature ball bearings for 

ultra-high-speed dental handpieces

1948 Japan-First

power plants

Extra large self-aligning roller bearings for thermal 

1948 Japan-First Large four-row tapered roller bearings for work 

rolls used in steel rolling mills

1963 Japan-First Bearings for Shinkansen bullet trains

1975 World-First

recorders (VTRs)

High-precision bearings for video tape 

1949 Japan-First Miniature ball bearings for cameras

1979 World-First Bearing fatigue analysis technologies

Major Domestic 

and 

Worldwide Trends 

and Events

Development of 

Typical Products 

and Technologies

02

NSK REPORT 2016

The Complete Picture of NSK
NSK’s Business

Industrial Machinery Business

Industrial Machinery Bearings
Aftermarket 
(Maintenance)
35%

General Machinery OEM
37%

Precision Machinery and Parts

Other
35%

Machine Tools and Injection
Molding Machines
40%

Net sales

¥218.1 billion

Net sales

¥41.7 billion

Other
3%

Automotive Business

Industrial
Machinery
Bearings
22%

Other
Asia
14%

Electrical 
and IT Equipment
28%

Semiconductor and 
LCD Production Equipment

25%

Precision 
Machinery and Parts
4%

As a comprehensive bearing manufacturer, 
NSK offers a varied lineup of miniature 
through to extra-large products catering to 
needs across a broad range of industries. The 
Company is working to expand its business 
globally across three sectors: the general 
machinery sector including steel, machine 
tools, wind turbines and railways; the 
electrical and IT equipment sector such as 
home appliances and personal computers; and 
the aftermarket, providing maintenance and 
repair services.

NSK helps to push forward new developments in a 
wide range of advanced fields. Through the supply of 
precision machinery and parts including the ball 
screws and linear guides that play an important role 
in linear motion products, and such mechatronic 
products as XY Tables and MEGATORQUE MOTORTM 
that employ ultra-high precision positioning as well 
as control technologies, the Company provides 
invaluable support in the production of machine 
tools, injection molding machines, industrial robots, 
semiconductor and LCD production equipment, 
conveying machines and medical devices.

China
21%

(Year ended 

Net Sales
¥975        .3 billion

March 31, 2016)

Europe
13%

The

Americas 

19%

Automotive 

Bearings

32%

Automotive Bearings

Automotive Components

Other

50%

Hub Unit Bearings

31%

Steering Products

84%

Automatic 

Transmission 

Components

16%

Japan

33%

Automotive 

Components

39%

Net sales

¥314.3 billion

Net sales

¥374.8 billion

Needle 

Roller Bearings

19%

Today, between 100 and 150 bearings are used 

in a single vehicle. As concerns toward the 

environment and safety continue to grow, 

bearing manufacturers are being asked to 

provide lighter weight and more efficient 

products. NSK offers a full range of bearings 

and supplies high-quality products to both its 

Japanese customers and automotive and 

component manufacturers in Europe, the 

Steering Products

Steering products play a key role in supporting the 

turning performance of automobiles. In providing 

advanced driving assistance while improving the 

flow of automatic operations, electric steering 

systems are becoming 

increasingly important. 

NSK is making a 

contribution to this field 

through its proven 

United States, and emerging countries through 

technological capabilities 

its global production network.

and reliability.

Functional safety compliant 

electric power steering

Automatic Transmission (AT) Components

AT components help to enhance the efficient 

transmission of power and speed while facilitating 

the smooth shifting of gears. 

NSK's lineup of AT 

components and needle roller 

bearings facilitate the shift to 

multistep AT and address the 

need for the further reduction 

of frictional loss.

Clutch assembly 

optimized high efficiency

Double-row angular contact 

ball bearings with inner and 

outer mounting flange 

(HUB III for driven wheels)

Needle roller bearings 

for planetary gears 

(cage and roller assembly), 

Pinion shaft

Low-torque ball bearings 

for hybrid vehicles

Powertrain Business

(cid:724) Powertrain products

(cid:724) Electrical 

components field

(cid:724) Chassis

Bearings for 

alternator

Steering & Actuator Business

(cid:724) Steering

(cid:724) Actuators

Double row cylindrical 
roller bearings
High rigidity series

NSKHPSTM
Large spherical roller 
bearings

Ball screws for 
high-speed machine tools 
HMD/HMS Series 

MEGATORQUE MOTORTM
MEGATORQUE MOTORTM
PS/PN Series 

Bearing Net Sales 

(for industrial and 

automotive use)

Domestic share 

No. 1

Global share 

No. 3

NSK Products: Playing a Key Role in an Array of Industries
NSK caters precisely to a variety of needs by ensuring that it is fully aware of the characteristics of customers’ industries as well as usage 
environments and the different requirements of each country and region.

Machine Tools

Steel

Mining and Construction

Wind Turbines

With the dramatic advance of innovative automotive technologies, the demand for improved fuel 

efficient, autonomous vehicle driving control and the shift toward electric vehicles are rapidly 

progressing. In the fiscal year ending March 31, 2017, NSK will link efforts to align the structure of its 

Automotive Business to these changes and to reorganize its Automotive Powertrain Division and 

Automotive Steering & Actuator Division headquarters for next-generation growth.

Note: For details, please refer to (cid:672)The Fifth Mid-Term Management Plan(cid:673) on page 28.

Ball screws for high-speed machine tools
HMS Series

High precision 
angular contact 
ball bearings

Railways

Four-row tapered 
roller bearings for 
work rolls

NSKHPSTM 
Spherical roller 
Spherical roller 
bearings

Full-complement 
cylindrical roller bearings
cylindrical roller bearings
NNCF (double row)

Home Appliances

Semiconductor Production Equipment

Pumps & Compressors

Double-row 
cylindrical roller 
bearing with oil bath 
lubrication for railway
axle

04

NSK REPORT 2016

Deep groove ball 
bearings

Super high load capacity 
single-axis actuator 
ToughcarrierTM 

NSKHPSTM 
High load capacity 
single-row angular 
contact ball bearings

Ball screws for e-brake boosters

NSK REPORT 2016

05

The Complete Picture of NSK

NSK’s Business

Industrial Machinery Business

Other

3%

Automotive Business

Industrial Machinery Bearings

Precision Machinery and Parts

Aftermarket 

(Maintenance)

35%

General Machinery OEM

37%

Other

35%

Machine Tools and Injection

Molding Machines

40%

Net sales

¥218.1 billion

Net sales

¥41.7 billion

Electrical 

and IT Equipment

28%

Semiconductor and 

LCD Production Equipment

25%

Precision 

Machinery and Parts

4%

As a comprehensive bearing manufacturer, 

NSK offers a varied lineup of miniature 

through to extra-large products catering to 

needs across a broad range of industries. The 

Company is working to expand its business 

globally across three sectors: the general 

machinery sector including steel, machine 

tools, wind turbines and railways; the 

electrical and IT equipment sector such as 

NSK helps to push forward new developments in a 

wide range of advanced fields. Through the supply of 

precision machinery and parts including the ball 

screws and linear guides that play an important role 

in linear motion products, and such mechatronic 

products as XY Tables and MEGATORQUE MOTORTM 

that employ ultra-high precision positioning as well 

as control technologies, the Company provides 

invaluable support in the production of machine 

home appliances and personal computers; and 

tools, injection molding machines, industrial robots, 

the aftermarket, providing maintenance and 

semiconductor and LCD production equipment, 

repair services.

conveying machines and medical devices.

Industrial

Machinery

Bearings

22%

Other

Asia

14%

Japan
33%

China

21%

Net Sales

(Year ended 
March 31, 2016)

¥975        .3 billion

Europe

13%

The
Americas 
19%

Automotive 
Bearings
32%

Double row cylindrical 

NSKHPSTM

Ball screws for 

MEGATORQUE MOTORTM

roller bearings

High rigidity series

Large spherical roller 

high-speed machine tools 

PS/PN Series 

bearings

HMD/HMS Series 

Bearing Net Sales 

(for industrial and 
automotive use)

Domestic share 

No. 1

Global share 

No. 3

Automotive Bearings

Automotive Components

Other
50%

Hub Unit Bearings
31%

Automatic 
Transmission 
Components
16%

Steering Products
84%

Automotive 
Components
39%

Net sales

¥314.3 billion

Net sales

¥374.8 billion

Needle 
Roller Bearings
19%

Today, between 100 and 150 bearings are used 
in a single vehicle. As concerns toward the 
environment and safety continue to grow, 
bearing manufacturers are being asked to 
provide lighter weight and more efficient 
products. NSK offers a full range of bearings 
and supplies high-quality products to both its 
Japanese customers and automotive and 
component manufacturers in Europe, the 
United States, and emerging countries through 
its global production network.

Double-row angular contact 
Double-row angular contact 
ball bearings with inner and 
outer mounting flange 
(HUB III for driven wheels)

Needle roller bearings 
for planetary gears 
(cage and roller assembly), 
Pinion shaft

Steering Products
Steering products play a key role in supporting the 
turning performance of automobiles. In providing 
advanced driving assistance while improving the 
flow of automatic operations, electric steering 
flow of automatic operations, electric steering 
systems are becoming 
increasingly important. 
NSK is making a 
contribution to this field 
through its proven 
technological capabilities 
and reliability.

Functional safety compliant 
Functional safety compliant 
electric power steering

Automatic Transmission (AT) Components

AT components help to enhance the efficient 
transmission of power and speed while facilitating 
the smooth shifting of gears. 
NSK's lineup of AT 
components and needle roller 
bearings facilitate the shift to 
multistep AT and address the 
need for the further reduction 
of frictional loss.

Clutch assembly 
optimized high efficiency

NSK Products: Playing a Key Role in an Array of Industries

NSK caters precisely to a variety of needs by ensuring that it is fully aware of the characteristics of customers’ industries as well as usage 

environments and the different requirements of each country and region.

Machine Tools

Steel

Mining and Construction

Wind Turbines

With the dramatic advance of innovative automotive technologies, the demand for improved fuel 
efficient, autonomous vehicle driving control and the shift toward electric vehicles are rapidly 
progressing. In the fiscal year ending March 31, 2017, NSK will link efforts to align the structure of its 
Automotive Business to these changes and to reorganize its Automotive Powertrain Division and 
Automotive Steering & Actuator Division headquarters for next-generation growth.
Note: For details, please refer to (cid:672)The Fifth Mid-Term Management Plan(cid:673) on page 28.

Ball screws for high-speed machine tools

Four-row tapered 

roller bearings for 

work rolls

NSKHPSTM 

Spherical roller 

bearings

Full-complement 

cylindrical roller bearings

NNCF (double row)

Home Appliances

Semiconductor Production Equipment

Pumps & Compressors

Deep groove ball 

bearings

Super high load capacity 

single-axis actuator 

ToughcarrierTM 

NSKHPSTM 

High load capacity 

single-row angular 

contact ball bearings

HMS Series

High precision 

angular contact 

ball bearings

Railways

Double-row 

cylindrical roller 

bearing with oil bath 

lubrication for railway

axle

04

NSK REPORT 2016

Powertrain Business
(cid:724) Powertrain products

(cid:724) Electrical 

components field

(cid:724) Chassis

Low-torque ball bearings 
for hybrid vehicles

Bearings for 
alternator

Steering & Actuator Business
(cid:724) Steering

(cid:724) Actuators

Ball screws for e-brake boosters

NSK REPORT 2016

05

Creating New Value
That Adds to Society

  N S K   G r o u p ’s Stakeholders

e

h

T

Customers

Suppliers

Employees

Value Created

Environmental contribution
(making products lighter, more compact, and with longer service lives)

Contribution to an advanced technological society

Realization of a more prosperous society

Growth of a wide range of industries

Advancement of mobility societies

Improvement of shareholder value

Shareholders
and Investors

Local
Communities

Future
Generations

In its mission statement, NSK declares its aims of realizing the 

well-being and safety of society, and contributing to the 

protection of the global environment through its MOTION & 

CONTROLTM technology. 

NSK considers safety, quality and compliance as its top 

priorities and creates new value that contributes to society 

through its operations, spanning development to design, 

production, sales and aftermarket services.

NSK REPORT 2016

07

The Complete Picture of NSK
Corporate Value Creation Model

NSK Mission Statement

NSK Vision 2026

Social Issues

Well-Being and Safety of Society
Protection of the Global Environment

Diverse Capital and Inputs

NSK’s Value Creation Process (Business Model)

Output and Outcomes

Manufacturing Capital

Raw materials: Steel, greases 
and oils, externally procured 
components
Global production sites
Manufacturing facilities
Process set-ups, process 
controls

Intellectual Capital

100 years of accumulated 
know-how, four core 
technologies, 
knowledge/expertise in 
specialist fields, R&D centers, 
R&D framework linked to 
external organizations

Human Capital

Highly qualified engineers, 
skilled workforce, globally 
minded talent, sales 
personnel who maintain close 
relationships with customers, 
corporate governance 
structure (Three Committees 
system, global compliance 
framework)

Financial Capital

Capital (net assets), 
interest-bearing debt, 
cash reserves

Social/Relationship Capital

Relationships of trust with 
external parties (users, 
suppliers, local communities), 
globally recognized and 
trusted NSK brand

Natural Capital

Minerals (iron ore, coal, etc.), 
water, energy

Production sites (Plants)
Japan: 21
Overseas: 43

R&D centers

At 14 locations 
in 9 countries

Ratio of new employees with
science backgrounds (annual 
average over the past five years)

70.9(cid:715)

Number of employees 
worldwide
31,587

Total number of in-house 
training course attendees 
(Japan/year)
6,996

Total equity
¥478.9 billion
Interest-bearing debt
¥278.2 billion

Cash and cash equivalents
¥175.5 billion

Number of customer
inquiries to NSK salespeople
7,890 cases/year

Energy input (per year)

Electricity: 
1,368,232 MW(cid:823)
Fuel: 2,342,032 GJ

(As at March 31, 2016)

Business Foundation and Four Drivers 
for Expansion and Enhancement

Sales (cid:665) Feedback

P.13

Conduct sales initiatives in line 
with the type of business, such
as just-in-time, specific projects, 
distributor inventory, etc., as
well as aftermarket sales for 
maintenance needs.
Receive feedback from 
customers, propose new 
technologies, revise R&D 
portfolio.

Feedback

R&D

Sales/
Aftermarket

NSK’s 
Business Activities

Receipt of 
Orders

DRIVER 

CSR/ESG
Management

Manufacturing

Safety

Quality

Compliance

Procurement

Mass
production
design/
Preparation

DRIVER 
Global Business
Foundation 
Overseas
Development
Capabilities

(               )

DRIVER 
Four Core
Technologies

DRIVER 

The Fifth Mid-Term
Management Plan

R&D
(cid:665) Receipt of Orders

P.11

Engage in R&D in such topics as 
basic research, advanced
development, application 
development and manufacturing
engineering; development (cid:665) 
receipt of orders for industrial 
machinery bearings and 
precision machinery and parts 
that fulfill the needs of all 
industries; development (cid:665) 
receipt of orders for automotive 
bearings and automotive 
components compatible with 
new automobiles developed by 
the manufacturers of finished 
vehicles. For standardized 
products based on international 
standards, develop activities to 
win orders by, for example, 
providing customers with 
technical support.

Mass Production Design 
(cid:665) Manufacturing
P.12

Undertake mass production 
design and preparation  
depending on the capital 
expenditure cycle and each type 
of business cycle, such as new 
product, maintenance and 
repair, as well as new vehicles; 
commence production following 
procurement of raw materials 
and components. Undertake 
repeated production while 
constantly increasing 
competitiveness through 
improved quality, cost and 
delivery times, including for 
standard products.

Products/
Services

(cid:724)  Industrial Machinery Bearings
(cid:724)  Precision Machinery and Parts
(cid:724)  Automotive Bearings
(cid:724)  Automotive Components
(cid:724)  Maintenance & Repair, 
Aftermarket Services

Financial
Outcomes from
Provision of
Added Value

(cid:724)  Cash generation
(cid:724)  Improvement in ROE
(cid:724)  Improvement in share 

price/market capitalization

(cid:724)  Internal reserves for 
investment in growth

(cid:724)  Maintenance of stable ratings

Impact on 
Society/
Environment

(cid:724) Reduction of investment 

resource/energy usage through 
improved production processes
(cid:724) Promotion of human resource diversity
(cid:724) Improvement of compliance awareness
(cid:724) Compliance with varying regulations in 

each country (e.g., avoiding use of conflict 
minerals, UK Modern Slavery Act)

(Output as burden on the environment)
(cid:724) CO2, industrial waste, water 

discharge

Share of bearings market
Ranked 3rd
in the world

Number of EPS mounted on 
vehicles (cumulative total)
More than 65 million

Number of new product releases
24 products/year
(22 in the previous fiscal year)

Cash flow from
operating activities
¥108.6 billion

Dividends/Payout ratio
¥18.4 billion/28.0(cid:715)

Lost-worktime injury rate* 
(global)
0.70 
(0.80 in the previous
fiscal year)

* For more information on 
lost-worktime injury rate, 
please see p. 43.

Diversity (Japan)
Proportion of female 
employees  7.0(cid:715)
(6.9% in the previous 
fiscal year)

Number of employees who 
have attained a TOEIC 
score of 730 or higher
472

Development of environmentally 
friendly products
211 products
(cumulative total)

CO2 emissions per production unit
1.6(cid:715) increase

Customers

Suppliers

Employees

Value Created

Environmental contribution
(making products lighter, more compact, and with longer service lives)

Contribution to an advanced technological society

Realization of a more prosperous society

Growth of a wide range of industries

Advancement of mobility societies

Improvement of shareholder value

Shareholders
and Investors

Local
Communities

Future
Generations

External Factors Affecting 
Corporate Value Creation

Foreign Exchange Rate 
Fluctuations
Exchange rate fluctuations affect revenue as 
the ratio of net sales outside Japan to total 
net sales is 67%, and the overseas 
production ratio is 55%.

Short term

Resource Price Fluctuations

Economies/Economic Trends

Capital Expenditures

Competitive Environment

Changes in the prices for resources, such 
as the steel and rare earths minerals that 
are raw materials for NSK products, affect
revenue

Economic trends in each country and market affect 
related demand. For example, the number of new 
vehicles sold by finished vehicle manufacturers affects 
Automotive Business revenue

Capital expenditure cycles affect the 
sales of bearings and precision 
products that are affected by demand in 
a wide range of industrial sectors

Although barriers to entry into the equipment industry are 
high, changes in the competitive environment for 
Japanese and global manufacturers of bearings, precision 
products and automotive components may affect revenues

Changes in Technological 
Innovation and Industry Structure
The impact that automotive 
technological innovation and IoT has on 
the structure of industry will have direct 
and indirect effects on NSK(cid:671)s business

Long term

06

NSK REPORT 2016

NSK REPORT 2016

09

The Complete Picture of NSK
NSK’s Business Activities and Corporate Value Creation

Framework for NSK’s Business Activities

NSK engages in BtoB operations, where its direct customers are 
automakers and machinery manufacturers, not end users.

NSK has two business segments, the Industrial Machinery 
Business and the Automotive Business, reflecting the industries in 
which its customers operate. The Industrial Machinery Business 
Division Headquarters and the Automotive Business Division 
Headquarters oversee these businesses on a global level.
(Please see (cid:672)Organizations Supporting Global Management(cid:673) on page 39.)

Feedback

R&D

Sales/
Aftermarket

NSK’s 
Business Activities

Receipt of 
Orders

DRIVER 

CSR/ESG
Management

Manufacturing

Safety

Quality

Compliance

Procurement

Mass
production
design/
Preparation

Each business division headquarters maintains its own production, sales 
and technology units that take responsibility for the entire business value 
chain, from marketing activities for order receipt to product design, 
manufacturing, sales, delivery, payment collection and the aftermarket.

DRIVER 
Global Business
Foundation 
Overseas
Development
capabilities

(              )

As shown in the chart on the right, NSK’s value chain creates value 
for its customers through business activities encompassing 
research and development, manufacturing, sales and feedback 
from customers.

DRIVER 
Four Core
Technologies

DRIVER 

The Fifth Mid-Term
Management Plan

Shared and Distinct Features of the Industrial Machinery Business and the Automotive Business

The following features are shared by the Industrial Machinery Business and the Automotive Business.

(cid:7555) NSK’s products are components that enhance the performance 
of the customer machinery in which they are incorporated. The 
product specifications and functional requirements of our 
customers influence NSK’s products and business activities.

(cid:7556) QCDDSM

Quality, Cost, Delivery, Development, Service and Management 
play an important role in securing our competitive advantage.

(cid:7557) Demand conditions in the industries of its customers influence  

NSK’s net sales and profits.

(cid:7558) The ability to develop business on a worldwide scale influences 

NSK’s competitiveness and growth potential.

(cid:7559) The ability to propose technological solutions is key to acquiring 

new projects.

(cid:7560) In principle, products are manufactured once orders are 

received, rather than in anticipation of orders.

The table below lists the distinct features of the Industrial Machinery Business and the Automotive Business.

Industrial Machinery Business

Automotive Business

Customers

(excluding automotive), distributors

(cid:724) Machinery manufacturers in Japan and overseas 

(cid:724) Large number of customers, wide range of products

(cid:724) Automakers in Japan and overseas
(cid:724) Auto component manufacturers in Japan and overseas

Features of 
Customers 
and NSK 
Businesses

(cid:724) Products for use in general machinery are produced in 
small lots and many varieties, whereas products for 
electrical and IT equipment are mass produced (large 
volumes of standardized products)

(cid:724) Products for use in general machinery and the 

aftermarket include large products with relatively long 
lead times

(cid:724) The aftermarket mainly consists of demand from end 

users of general machinery for maintenance and repair 
of facilities and equipment. It also includes sales of 
standardized products through distributors. In 
partnership with distributors, it is important to avoid lost 
opportunities by maintaining appropriate inventory levels 
to ensure immediate delivery.

(cid:724) In principle, opportunities to win new orders arise when 

automakers introduce new vehicle models or undertake a full 
model change. According to the schedule of each customer’s 
new vehicle project, NSK cooperates on development after 
being nominated as a development supplier. Development 
suppliers are generally also responsible for supplying 
mass-produced products, and prepare mass production in 
accordance with the launch schedule for the new vehicle.

(cid:724) The delivery volume required for a single project has been on 

the rise as customers employ common platforms and 
planned production volumes grow.

(cid:724) NSK’s net sales are affected by the sales volumes of car models 

on the market. In principle, deliveries are based on the 
just-in-time system, so inventories are light. However, customers 
often require that manufacturing takes place near regions of 
demand, meaning that the local production ratio is relatively high.

NSK’s 
Competitive 
Advantages

(cid:724) Extensive product lineup as a comprehensive 

manufacturer

(cid:724) Technological capabilities based on our four core 

technologies

(cid:724) Accumulated expertise in customer needs and technology 

for a wide range of industries and applications

(cid:724) Diverse business relationships/customer base among 

automakers and first-tier auto parts makers

(cid:724) Global supply capabilities
(cid:724) Developmental capabilities/technological response 
capabilities for advances in automobile functions

(cid:724) Global management systems to focus on meeting the needs of 

(cid:724) Manufacturing, supply and technical support capabilities 

non-Japanese customers

delivered via a global network

R&D, Receipt of Orders

1 R & D

2 Receipt of Orders

Our four core technologies are tribology, materials, 

numerical simulation, and mechatronics (see page 

36). In the field of R&D, NSK engages in broad 

research and development that applies to both 

business segments, in addition to fundamental 

research, advanced development, application 

development and production technologies. R&D aims 

to create new products, technologies and businesses.

The independent sales divisions of the Industrial 

Machinery Business and the Automotive Business 

coordinate with other internal departments to win 

new orders. The timing of orders received, lead times 

and other aspects of order-taking activities depend on 

the customer(cid:671)s business, products and components 

used. For global projects, the sales divisions 

coordinate with the relevant sites in other countries.

(cid:724) Personnel with strong technical skills to support the 

technology foundation (human capital)

(cid:724) Accumulated technology, including intellectual property, 

engineering rules and standards (intellectual capital)

(cid:724) R&D centers, led by the Technology Development Division 

HQ (intellectual capital)

social and related capital)

(cid:724) NSK Institute of Technology (NIT) as a framework for human 

resource development (intellectual capital, human capital)

(cid:724) Financial foundation for funding R&D (financial capital)

(cid:724) Experience and track record in QCDDSM (quality, cost, 

delivery, development, service and management) 

(manufacturing capital, intellectual capital, human capital)

(cid:724) Marketing capabilities based on tight-knit relationships with 

customers and distributors (human capital)

(cid:724) NSK’s brand recognition backed by its 100-year history 

(cid:724) Customers choose NSK as a partner to develop new 

models thanks to its technical capabilities and reliability 

(intellectual property, social and related capital)

(cid:724) R&D structure with external parties (intellectual capital, 

(social and related capital)

(cid:724) NSK aims to improve existing products, develop new 

products and establish new production technologies by 

(cid:724) The pattern for acquiring orders differs depending on the 

customer’s business, products and components used, and 

developing new core technologies while strengthening its 

NSK optimizes its approach accordingly.

four core technologies.

(cid:724) NSK has technology centers in Japan, Europe, the 

Americas and Asia. These technology centers collaborate 

on meeting technological requirements while expanding a 

global technology network and keeping up with the 

globalization of its customers.

(cid:724) NSK addresses relatively short-term R&D topics while also 

conducting long-term research on future technologies.

Our Strengths

thanks to the breadth of its technical staff and accumulated 

technologies gained from deep knowledge and experience.

(cid:724) NSK collaborates and jointly develops products with its 

customers, suppliers and external research institutions, 

and leverages those efforts in product development (e.g., 

steel materials, grease, motors, ECUs).

(cid:724) NSK has a global network of technology centers.

(cid:724) NSK has a structured education program and a training 

organization for nurturing and improving technical staff.

・Orders to develop new products and designs

・Orders for new products as an improvement on existing models

・New orders for existing products

・Orders for standardized products and catalog products

(cid:724) Order activities are built from information obtained about 

global trends and customer needs, which is shared among 

the relevant departments.

(cid:724) NSK participates in related industrial exhibitions (e.g., 

machine tools, mining machinery, technology and motor 

shows) to showcase its products and technologies.

(cid:724) NSK also works to win orders currently filled by its 

competitors by offering superior technologies and delivery 

times.

Our Strengths

and sales staff.

it win orders.

(cid:724) NSK’s global development and supply capabilities also help 

(cid:724) In the Automotive Business, Global Account Managers 

(GAMs) and Key Account Managers (KAMs) work together 

on project requirements.

(cid:724) NSK excels at solving complex technological problems, 

(cid:724) NSK has internal systems that support tight-knit 

communications between customers and its engineering 

Relation to Four Drivers

Relation to Four Drivers

(cid:724) Creating new added value and demand to realize Innovate 

and Challenge (cid:690)the Fifth Mid-Term Management Plan(cid:691)

(cid:724) Engaging in R&D activities to advance and deepen NSK’s 

core technologies and know-how (cid:690)four core technologies(cid:691)

(cid:724) Maintaining overseas technology centers, in charge of 

interfacing with customers on global projects (coordination, 

leads) and identifying technological trends overseas 

(cid:690)global business foundation(cid:691)

(cid:724) Developing environmentally friendly products 

(cid:690)CSR/ESG management(cid:691)

(cid:724) Winning new orders in both the Industrial Machinery Business 

and the Automotive Business as a key to achieving the fifth 

mid-term management plan and building a foundation for 

future business. (cid:690)the Fifth Mid-Term Management Plan(cid:691)

(cid:724) Securing sources of growth that entail global projects in the 

Automotive Business (overseas projects for Japanese 

customers, projects for non-Japanese customers) and orders 

for overseas projects in the Industrial Machinery Business 

(local production, local supply) (cid:690)global business foundation(cid:691)

(cid:724) Improving quality and environmental performance to 

become a candidate supplier for customers 

(cid:690)CSR/ESG management(cid:691)

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NSK REPORT 2016

NSK REPORT 2016

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The Complete Picture of NSK

NSK’s Business Activities and Corporate Value Creation

Framework for NSK’s Business Activities

NSK engages in BtoB operations, where its direct customers are 

automakers and machinery manufacturers, not end users.

NSK has two business segments, the Industrial Machinery 

Business and the Automotive Business, reflecting the industries in 

which its customers operate. The Industrial Machinery Business 

Division Headquarters and the Automotive Business Division 

Headquarters oversee these businesses on a global level.

(Please see (cid:672)Organizations Supporting Global Management(cid:673) on page 39.)

Feedback

R&D

Sales/

Aftermarket

NSK’s 

Business Activities

Receipt of 

Orders

DRIVER 

CSR/ESG

Management

Manufacturing

Mass

production

design/

Preparation

Safety

Quality

Compliance

Procurement

Each business division headquarters maintains its own production, sales 

and technology units that take responsibility for the entire business value 

chain, from marketing activities for order receipt to product design, 

manufacturing, sales, delivery, payment collection and the aftermarket.

DRIVER 

Global Business

Foundation 

Overseas

Development

(              )

capabilities

As shown in the chart on the right, NSK’s value chain creates value 

for its customers through business activities encompassing 

research and development, manufacturing, sales and feedback 

from customers.

DRIVER 

Four Core

Technologies

DRIVER 

The Fifth Mid-Term

Management Plan

Shared and Distinct Features of the Industrial Machinery Business and the Automotive Business

The following features are shared by the Industrial Machinery Business and the Automotive Business.

(cid:7555) NSK’s products are components that enhance the performance 

(cid:7557) Demand conditions in the industries of its customers influence  

of the customer machinery in which they are incorporated. The 

product specifications and functional requirements of our 

customers influence NSK’s products and business activities.

(cid:7556) QCDDSM

NSK’s net sales and profits.

(cid:7558) The ability to develop business on a worldwide scale influences 

NSK’s competitiveness and growth potential.

(cid:7559) The ability to propose technological solutions is key to acquiring 

Quality, Cost, Delivery, Development, Service and Management 

play an important role in securing our competitive advantage.

new projects.

(cid:7560) In principle, products are manufactured once orders are 

received, rather than in anticipation of orders.

The table below lists the distinct features of the Industrial Machinery Business and the Automotive Business.

Industrial Machinery Business

Automotive Business

(cid:724) Machinery manufacturers in Japan and overseas 

(cid:724) Automakers in Japan and overseas

Customers

(excluding automotive), distributors

(cid:724) Large number of customers, wide range of products

(cid:724) Auto component manufacturers in Japan and overseas

(cid:724) Products for use in general machinery are produced in 

(cid:724) In principle, opportunities to win new orders arise when 

Features of 

Customers 

and NSK 

Businesses

small lots and many varieties, whereas products for 

electrical and IT equipment are mass produced (large 

volumes of standardized products)

(cid:724) Products for use in general machinery and the 

aftermarket include large products with relatively long 

lead times

(cid:724) The aftermarket mainly consists of demand from end 

users of general machinery for maintenance and repair 

of facilities and equipment. It also includes sales of 

standardized products through distributors. In 

partnership with distributors, it is important to avoid lost 

opportunities by maintaining appropriate inventory levels 

to ensure immediate delivery.

automakers introduce new vehicle models or undertake a full 

model change. According to the schedule of each customer’s 

new vehicle project, NSK cooperates on development after 

being nominated as a development supplier. Development 

suppliers are generally also responsible for supplying 

mass-produced products, and prepare mass production in 

accordance with the launch schedule for the new vehicle.

(cid:724) The delivery volume required for a single project has been on 

the rise as customers employ common platforms and 

planned production volumes grow.

(cid:724) NSK’s net sales are affected by the sales volumes of car models 

on the market. In principle, deliveries are based on the 

just-in-time system, so inventories are light. However, customers 

often require that manufacturing takes place near regions of 

demand, meaning that the local production ratio is relatively high.

(cid:724) Diverse business relationships/customer base among 

automakers and first-tier auto parts makers

(cid:724) Extensive product lineup as a comprehensive 

manufacturer

technologies

NSK’s 

Competitive 

Advantages

(cid:724) Technological capabilities based on our four core 

(cid:724) Global supply capabilities

(cid:724) Accumulated expertise in customer needs and technology 

capabilities for advances in automobile functions

for a wide range of industries and applications

(cid:724) Global management systems to focus on meeting the needs of 

(cid:724) Manufacturing, supply and technical support capabilities 

non-Japanese customers

(cid:724) Developmental capabilities/technological response 

delivered via a global network

R&D, Receipt of Orders

1 R & D

2 Receipt of Orders

Our four core technologies are tribology, materials, 
numerical simulation, and mechatronics (see page 
36). In the field of R&D, NSK engages in broad 
research and development that applies to both 
business segments, in addition to fundamental 
research, advanced development, application 
development and production technologies. R&D aims 
to create new products, technologies and businesses.

The independent sales divisions of the Industrial 
Machinery Business and the Automotive Business 
coordinate with other internal departments to win 
new orders. The timing of orders received, lead times 
and other aspects of order-taking activities depend on 
the customer(cid:671)s business, products and components 
used. For global projects, the sales divisions 
coordinate with the relevant sites in other countries.

(cid:724) Personnel with strong technical skills to support the 

technology foundation (human capital)

(cid:724) Accumulated technology, including intellectual property, 
engineering rules and standards (intellectual capital)

(cid:724) R&D centers, led by the Technology Development Division 

HQ (intellectual capital)

(cid:724) Experience and track record in QCDDSM (quality, cost, 

delivery, development, service and management) 
(manufacturing capital, intellectual capital, human capital)
(cid:724) Marketing capabilities based on tight-knit relationships with 

customers and distributors (human capital)

(cid:724) NSK’s brand recognition backed by its 100-year history 

(cid:724) R&D structure with external parties (intellectual capital, 

(social and related capital)

social and related capital)

(cid:724) NSK Institute of Technology (NIT) as a framework for human 
resource development (intellectual capital, human capital)
(cid:724) Financial foundation for funding R&D (financial capital)

(cid:724) Customers choose NSK as a partner to develop new 

models thanks to its technical capabilities and reliability 
(intellectual property, social and related capital)

(cid:724) NSK aims to improve existing products, develop new 

products and establish new production technologies by 
developing new core technologies while strengthening its 
four core technologies.

(cid:724) NSK has technology centers in Japan, Europe, the 

Americas and Asia. These technology centers collaborate 
on meeting technological requirements while expanding a 
global technology network and keeping up with the 
globalization of its customers.

(cid:724) NSK addresses relatively short-term R&D topics while also 

conducting long-term research on future technologies.

(cid:724) The pattern for acquiring orders differs depending on the 

customer’s business, products and components used, and 
NSK optimizes its approach accordingly.
・Orders to develop new products and designs
・Orders for new products as an improvement on existing models
・New orders for existing products
・Orders for standardized products and catalog products
(cid:724) Order activities are built from information obtained about 

global trends and customer needs, which is shared among 
the relevant departments.

(cid:724) NSK participates in related industrial exhibitions (e.g., 

machine tools, mining machinery, technology and motor 
shows) to showcase its products and technologies.
(cid:724) NSK also works to win orders currently filled by its 

competitors by offering superior technologies and delivery 
times.

Our Strengths

Our Strengths

(cid:724) NSK excels at solving complex technological problems, 

(cid:724) NSK has internal systems that support tight-knit 

thanks to the breadth of its technical staff and accumulated 
technologies gained from deep knowledge and experience.

communications between customers and its engineering 
and sales staff.

(cid:724) NSK collaborates and jointly develops products with its 

customers, suppliers and external research institutions, 
and leverages those efforts in product development (e.g., 
steel materials, grease, motors, ECUs).

(cid:724) NSK has a global network of technology centers.
(cid:724) NSK has a structured education program and a training 
organization for nurturing and improving technical staff.

(cid:724) NSK’s global development and supply capabilities also help 

it win orders.

(cid:724) In the Automotive Business, Global Account Managers 

(GAMs) and Key Account Managers (KAMs) work together 
on project requirements.

Relation to Four Drivers

Relation to Four Drivers

(cid:724) Creating new added value and demand to realize Innovate 
and Challenge (cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Engaging in R&D activities to advance and deepen NSK’s 

core technologies and know-how (cid:690)four core technologies(cid:691)

(cid:724) Maintaining overseas technology centers, in charge of 

interfacing with customers on global projects (coordination, 
leads) and identifying technological trends overseas 
(cid:690)global business foundation(cid:691)
(cid:724) Developing environmentally friendly products 
(cid:690)CSR/ESG management(cid:691)

(cid:724) Winning new orders in both the Industrial Machinery Business 
and the Automotive Business as a key to achieving the fifth 
mid-term management plan and building a foundation for 
future business. (cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Securing sources of growth that entail global projects in the 

Automotive Business (overseas projects for Japanese 
customers, projects for non-Japanese customers) and orders 
for overseas projects in the Industrial Machinery Business 
(local production, local supply) (cid:690)global business foundation(cid:691)

(cid:724) Improving quality and environmental performance to 

become a candidate supplier for customers 
(cid:690)CSR/ESG management(cid:691)

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NSK REPORT 2016

NSK REPORT 2016

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The Complete Picture of NSK
NSK’s Business Activities and Corporate Value Creation

Mass Production Design and Preparation (cid:665) Manufacturing

Sales, Aftermarket (cid:665) Feedback

Back to R&D

3 Mass Production Design

and Preparation

4 Procurement

Mass production design entails the design of large-lot 
products delivered to customers. Mass production includes 
both newly designed products and standardized products that 
do not require new designs. Mass production preparation 
involves the setting up of processes and production equipment 
at mass production plants once specifications have been 
finalized. In many cases, final customer approval is required 
for product specifications, equipment and processes.

The equipment, raw materials, parts and production 
materials required to manufacture mass-produced 
products are procured from manufacturers and 
suppliers. NSK(cid:671)s basic procurement policy involves 
procurement at each production site and procurement 
by the head office, which determines procurement 
policies on a company-wide level. Collaboration with 
suppliers to ensure stable procurement is essential.

(cid:724) Mass production equipment preparation, capital investment 

(cid:724) Each production site procures materials in a timely and 

(manufacturing capital)

(cid:724) Talented design engineers (human capital)
(cid:724) Accumulation of technologies related to mass production, 

engineering/manufacturing rules and standards (intellectual capital)

(cid:724) Technology centers that coordinate with customer 

technology divisions (intellectual capital, R&D center)
(cid:724) NIT as a framework for human resource development 

(intellectual capital, human capital)

appropriate manner (manufacturing capital, intellectual capital)

(cid:724) NSK procures from suppliers with which it jointly develops 

(intellectual capital)

(cid:724) NSK coordinates and collaborates with suppliers on a range 
of objectives, such as quality, the environment, compliance, 
BCP and disaster prevention (social and related capital)

(cid:724) Financial strategy to ensure smooth procurement (financial 

capital)

Mass Production Design
(cid:724) Once customer requirements and specifications are 

satisfied, NSK optimizes designs for ease of fabrication in 
plants, cost competitiveness and quality assurance.

(cid:724) NSK builds quality into the design and production 

processes.

Preparation for Mass Production
(cid:724) Preparations are made based on the customer’s 

development time line. During the process of fabricating 
prototypes and finalizing product specifications, NSK sets 
up mass production facilities, prepares dies and tools for 
mass production, and determines required processes.
(cid:724) When preparing for mass production, optimizing cost 

competitiveness is key.

NSK has a framework for managing the entire process from 
order receipt to mass production launch, which entails 
checking and confirming costs and specifications at each 
stage of the process (NPDS).

(cid:724) By ascertaining the QCDDSM performance of suppliers, 

NSK ensures the reliable procurement of products, 
stronger cost competitiveness and high quality.

(cid:724) To strengthen procurement competitiveness, NSK is closely 

involved in the finalization of specifications for procured 
products, screens suppliers, and focuses on supplier 
management.

(cid:724) NSK discloses its basic procurement policy and holds 

regular briefings on its procurement policy.

(cid:724) NSK aims to reduce foreign exchange risk by working to 

increase the ratio of local procurement at sites outside Japan.
(cid:724) As costs for procured products can be affected by changes 
in market prices for natural resources, NSK constantly 
monitors market trends.

(cid:724) From the standpoint of CSR procurement, NSK monitors 
supplier performance based on stringent criteria in its 
supplier CSR guidelines for human rights, the environment, 
compliance, information security and BCP, and suggests 
improvements as needed.

Our Strengths

Our Strengths

(cid:724) Design quality is a key factor in manufacturing quality. Accordingly, 
accurately understanding the specifications required by customers 
and reflecting them in product design lead to improvements in 
product development, design proposals and project management.

(cid:724) NSK develops its own, specialized production equipment, 
which leads to lower costs for mass-produced products.
(cid:724) NSK has a framework for moving from product design to 

mass production preparation in a timely and cost-effective 
manner, which helps to improve profits.

(cid:724) NSK maintains strong favorable relationships with 

suppliers in its procurement activities.

(cid:724) NSK jointly develops materials, parts and grease with 

suppliers to improve the quality of its products.

(cid:724) In overseas production, NSK advances overseas with its 

suppliers and assists its suppliers to make inroads 
overseas.

(cid:724) In equipment procurement, NSK develops its own 

equipment and has a system for procuring within the 
Group.

5 Manufacturing

The NSK Group manufactures products at its plants, 

requiring stringent management of quality, cost and 

delivery (QCD). Both the Industrial Machinery 

Business and the Automotive Business maintain 

their own manufacturing plants.

6 Sales, 

Feedback

Aftermarket and 

Sales activities span the delivery of manufactured products 

to customers and distributors, inspection and acceptance 

of the delivered products, and finally recognition of the 

sale. Aftermarket services entail the maintenance and 

repair of equipment and machinery for customers and end 

users. Feedback from customers is reflected in production 

plan reviews, inventory management, product 

improvements and development of new products.

(cid:724) Production plants and facilities (manufacturing capital)

(cid:724) Production technologies, manufacturing drawings and 

accumulated know-how (intellectual capital)

(cid:724) Management of PSI (production, sales and inventory) in 

order to deliver products to customers in a timely manner 

(human capital)

(cid:724) Personnel necessary for production and strong technical skills (human capital)

(cid:724) Suppliers and local communities’ support for production 

(cid:724) Aftermarket services share information with customers, 

end users and distributors, developing trust relationships 

(social and related capital)

(social and related capital)

(cid:724) Raw materials (e.g., steel, components), oils (e.g., cutting 

oil, grinding oil), electricity, water and other resources used 

in production (natural capital, manufacturing capital)

(cid:724) Examination and accumulation of analysis data related to 

conditions under which products are used, defects and 

service life (intellectual capital)

(cid:724) Manufacturing activities that take place at production 

plants include manufacturing, quality assurance, 

production technology and equipment management, 

production management, plant accounting and labor 

management.

(cid:724) As NSK’s profitability is influenced by the cost of 

production, production volume, productivity, plant 

profits/losses, quality, safety, disaster prevention and 

environmental protection, plants hold an important 

responsibility for making improvements on these fronts.

(cid:724) Certain plants both in Japan and overseas play the role of 

mother plants, using their experience to guide and resolve 

issues at similar plants.

(cid:724) Small-group activities (QC circles) are conducted at each 

plant on an ongoing basis to improve workplace processes.

(cid:724) The NSK Manufacturing Education and Training Center 

provides hands-on training to engineers from plants 

around the world with the aim of passing down technical 

skills and improving technical capabilities in the 

production divisions.

(cid:724) NSK maintains positive relationships with local 

communities when conducting its manufacturing activities.

Sales

(cid:724) The timely delivery of products is important across all businesses.

(cid:724) Product delivery and sales activities differ according to business 

form, such as just-in-time systems for automakers, project-based 

industrial machinery orders, and inventory orders for distributors.

Aftermarket

(cid:724) NSK maintains and repairs not only its own products but also 

products made by other companies.

(cid:724) In addition to delivering replacement components based on 

scheduled maintenance plans, NSK also handles emergency 

demand - when quick delivery is vital.

(cid:724) Inventory management is key to addressing demand and delivery 

frequency for aftermarket services. This can also have an impact on profits.

Feedback

(cid:724) Production plans are reviewed in accordance with the production 

volume plans of automakers and demand fluctuations for industrial 

machinery (e.g., customer production plans, capital investment 

trends, distributor inventory policies).

(cid:724) Cases in which NSK was not able to meet requests for replacement 

parts due to insufficient inventory or tight delivery deadlines are 

studied and used to improve its inventory policy.

(cid:724) Data about defects and breakdowns, as well as feedback from 

customers, are used to improve products and are reflected in new 

production development to acquire new business.

Our Strengths

manner.

(cid:724) NSK has a total of 64 plants, with 21 in Japan and 43 

overseas, enabling it to meet global demand in a timely 

(cid:724) NSK is able to maintain proper inventory levels as a result 

of advanced PSI (production, sales and inventory) 

(cid:724) Mother plants in Japan launch plants overseas and 

provide assistance with problem solving.

(cid:724) More overseas plants are being operated under the 

supervision of local staff, and some overseas plants have 

advanced to the level of being able to support the launch 

of new plants overseas.

(cid:724) The bedrock of the aftermarket business is NSK’s strong 

relationships with distributors and its extensive network.

(cid:724) NSK has advanced analysis capabilities and accumulated 

technologies from access to broad data fields, such as for 

defects and damage at customers and end users.

(cid:724) Feedback is used to improve products and propose 

solutions with new technologies.

Our Strengths

management.

Relation to Four Drivers

Relation to Four Drivers

Relation to Four Drivers

Relation to Four Drivers

(cid:724) Realizing operational excellence, mass production design 
and preparation with the aim of achieving high quality and 
cost competitiveness 
(cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Maintaining the strong technological base required for 

mass production design (cid:690)four core technologies(cid:691)
(cid:724) Playing a key role in the launch of global projects and 

overseas projects (cid:690)global business foundation(cid:691)

(cid:724) Building in quality in the mass production design and 

preparation stages as an essential requirement 
(cid:690)CSR/ESG management(cid:691)

(cid:724) Improving profitability by reducing procurement costs 
(cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Conducting joint development with suppliers in order to increase 

the quality of materials and parts (cid:690)four core technologies(cid:691)

(cid:724) Procuring from non-Japan sites of Group companies and suppliers, and 
supporting global business development (cid:690)global business foundation(cid:691)

(cid:724) Identifying and developing relationships with overseas 

suppliers (cid:690)global business foundation(cid:691)

(cid:724) Maintaining systems for CSR procurement, green procurement, 
avoiding conflict minerals and ensuring compliance with the UK 
Modern Slavery Act (cid:690)CSR/ESG management(cid:691)

(cid:724) Implementing initiatives to strengthen the production 

(cid:724) Realizing operational excellence through PSI management 

division and realizing operational excellence (e.g., F2 project) 

(cid:690)the Fifth Mid-Term Management Plan(cid:691)

and next-generation manufacturing (NSK Smart Factories) 

(cid:724) Utilizing feedback to advance core technologies, achieving 

(cid:690)the Fifth Mid-Term Management Plan(cid:691)

Innovate and Challenge objectives 

(cid:724) Accumulating data and technologies through manufacturing 

(cid:690)four core technologies, the Fifth Mid-Term Management Plan(cid:691)

(cid:690)four core technologies(cid:691)

(cid:724) Strengthening the global sales foundation (overseas 

(cid:724) Promoting collaboration between plants in Japan and overseas 

affiliates, distributor network) (cid:690)global business foundation(cid:691)

on manufacturing tasks through the mother plant system 

(cid:690)global business foundation(cid:691)

(cid:724) Considering the local community and areas near plants 

when products are shipped, considering the environment 

(cid:724) Improving manufacturing activities, such as safe working conditions and 

during transportation and delivery (e.g., modal shift) 

reduced burden on the global environment (cid:690)CSR/ESG management(cid:691)

(cid:690)CSR/ESG management(cid:691)

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12

NSK REPORT 2016

NSK REPORT 2016

13

 
 
 
 
 
 
 
 
 
The Complete Picture of NSK

NSK’s Business Activities and Corporate Value Creation

Mass Production Design and Preparation (cid:665) Manufacturing

Sales, Aftermarket (cid:665) Feedback

Back to R&D

3 Mass Production Design

and Preparation

4 Procurement

Mass production design entails the design of large-lot 

products delivered to customers. Mass production includes 

both newly designed products and standardized products that 

do not require new designs. Mass production preparation 

involves the setting up of processes and production equipment 

at mass production plants once specifications have been 

finalized. In many cases, final customer approval is required 

for product specifications, equipment and processes.

The equipment, raw materials, parts and production 

materials required to manufacture mass-produced 

products are procured from manufacturers and 

suppliers. NSK(cid:671)s basic procurement policy involves 

procurement at each production site and procurement 

by the head office, which determines procurement 

policies on a company-wide level. Collaboration with 

suppliers to ensure stable procurement is essential.

(cid:724) Mass production equipment preparation, capital investment 

(cid:724) Each production site procures materials in a timely and 

(manufacturing capital)

(cid:724) Talented design engineers (human capital)

(cid:724) Accumulation of technologies related to mass production, 

engineering/manufacturing rules and standards (intellectual capital)

(cid:724) Technology centers that coordinate with customer 

technology divisions (intellectual capital, R&D center)

(cid:724) NIT as a framework for human resource development 

(intellectual capital, human capital)

appropriate manner (manufacturing capital, intellectual capital)

(cid:724) NSK procures from suppliers with which it jointly develops 

(intellectual capital)

(cid:724) NSK coordinates and collaborates with suppliers on a range 

of objectives, such as quality, the environment, compliance, 

BCP and disaster prevention (social and related capital)

(cid:724) Financial strategy to ensure smooth procurement (financial 

capital)

Mass Production Design

(cid:724) Once customer requirements and specifications are 

satisfied, NSK optimizes designs for ease of fabrication in 

plants, cost competitiveness and quality assurance.

(cid:724) NSK builds quality into the design and production 

processes.

Preparation for Mass Production

(cid:724) Preparations are made based on the customer’s 

development time line. During the process of fabricating 

prototypes and finalizing product specifications, NSK sets 

up mass production facilities, prepares dies and tools for 

mass production, and determines required processes.

(cid:724) When preparing for mass production, optimizing cost 

competitiveness is key.

NSK has a framework for managing the entire process from 

order receipt to mass production launch, which entails 

checking and confirming costs and specifications at each 

stage of the process (NPDS).

(cid:724) By ascertaining the QCDDSM performance of suppliers, 

NSK ensures the reliable procurement of products, 

stronger cost competitiveness and high quality.

(cid:724) To strengthen procurement competitiveness, NSK is closely 

involved in the finalization of specifications for procured 

products, screens suppliers, and focuses on supplier 

management.

(cid:724) NSK discloses its basic procurement policy and holds 

regular briefings on its procurement policy.

(cid:724) NSK aims to reduce foreign exchange risk by working to 

increase the ratio of local procurement at sites outside Japan.

(cid:724) As costs for procured products can be affected by changes 

in market prices for natural resources, NSK constantly 

monitors market trends.

(cid:724) From the standpoint of CSR procurement, NSK monitors 

supplier performance based on stringent criteria in its 

supplier CSR guidelines for human rights, the environment, 

compliance, information security and BCP, and suggests 

improvements as needed.

5 Manufacturing

The NSK Group manufactures products at its plants, 
requiring stringent management of quality, cost and 
delivery (QCD). Both the Industrial Machinery 
Business and the Automotive Business maintain 
their own manufacturing plants.

6 Sales, 

Aftermarket and 
Feedback

Sales activities span the delivery of manufactured products 
to customers and distributors, inspection and acceptance 
of the delivered products, and finally recognition of the 
sale. Aftermarket services entail the maintenance and 
repair of equipment and machinery for customers and end 
users. Feedback from customers is reflected in production 
plan reviews, inventory management, product 
improvements and development of new products.

(cid:724) Production plants and facilities (manufacturing capital)
(cid:724) Production technologies, manufacturing drawings and 

accumulated know-how (intellectual capital)

(cid:724) Personnel necessary for production and strong technical skills (human capital)
(cid:724) Suppliers and local communities’ support for production 

(social and related capital)

(cid:724) Raw materials (e.g., steel, components), oils (e.g., cutting 

oil, grinding oil), electricity, water and other resources used 
in production (natural capital, manufacturing capital)

(cid:724) Management of PSI (production, sales and inventory) in 

order to deliver products to customers in a timely manner 
(human capital)

(cid:724) Aftermarket services share information with customers, 
end users and distributors, developing trust relationships 
(social and related capital)

(cid:724) Examination and accumulation of analysis data related to 
conditions under which products are used, defects and 
service life (intellectual capital)

(cid:724) Manufacturing activities that take place at production 

plants include manufacturing, quality assurance, 
production technology and equipment management, 
production management, plant accounting and labor 
management.

(cid:724) As NSK’s profitability is influenced by the cost of 
production, production volume, productivity, plant 
profits/losses, quality, safety, disaster prevention and 
environmental protection, plants hold an important 
responsibility for making improvements on these fronts.
(cid:724) Certain plants both in Japan and overseas play the role of 
mother plants, using their experience to guide and resolve 
issues at similar plants.

(cid:724) Small-group activities (QC circles) are conducted at each 

plant on an ongoing basis to improve workplace processes.

(cid:724) The NSK Manufacturing Education and Training Center 
provides hands-on training to engineers from plants 
around the world with the aim of passing down technical 
skills and improving technical capabilities in the 
production divisions.

(cid:724) NSK maintains positive relationships with local 

communities when conducting its manufacturing activities.

Sales
(cid:724) The timely delivery of products is important across all businesses.
(cid:724) Product delivery and sales activities differ according to business 

form, such as just-in-time systems for automakers, project-based 
industrial machinery orders, and inventory orders for distributors.

Aftermarket
(cid:724) NSK maintains and repairs not only its own products but also 

products made by other companies.

(cid:724) In addition to delivering replacement components based on 

scheduled maintenance plans, NSK also handles emergency 
demand - when quick delivery is vital.

(cid:724) Inventory management is key to addressing demand and delivery 

frequency for aftermarket services. This can also have an impact on profits.

Feedback
(cid:724) Production plans are reviewed in accordance with the production 

volume plans of automakers and demand fluctuations for industrial 
machinery (e.g., customer production plans, capital investment 
trends, distributor inventory policies).

(cid:724) Cases in which NSK was not able to meet requests for replacement 

parts due to insufficient inventory or tight delivery deadlines are 
studied and used to improve its inventory policy.

(cid:724) Data about defects and breakdowns, as well as feedback from 

customers, are used to improve products and are reflected in new 
production development to acquire new business.

Our Strengths

Our Strengths

Our Strengths

Our Strengths

(cid:724) Design quality is a key factor in manufacturing quality. Accordingly, 

(cid:724) NSK maintains strong favorable relationships with 

accurately understanding the specifications required by customers 

suppliers in its procurement activities.

and reflecting them in product design lead to improvements in 

product development, design proposals and project management.

(cid:724) NSK develops its own, specialized production equipment, 

which leads to lower costs for mass-produced products.

(cid:724) NSK has a framework for moving from product design to 

mass production preparation in a timely and cost-effective 

manner, which helps to improve profits.

(cid:724) NSK jointly develops materials, parts and grease with 

suppliers to improve the quality of its products.

(cid:724) In overseas production, NSK advances overseas with its 

suppliers and assists its suppliers to make inroads 

(cid:724) In equipment procurement, NSK develops its own 

equipment and has a system for procuring within the 

overseas.

Group.

(cid:724) NSK has a total of 64 plants, with 21 in Japan and 43 

overseas, enabling it to meet global demand in a timely 
manner.

(cid:724) Mother plants in Japan launch plants overseas and 

provide assistance with problem solving.

(cid:724) More overseas plants are being operated under the 

supervision of local staff, and some overseas plants have 
advanced to the level of being able to support the launch 
of new plants overseas.

(cid:724) NSK is able to maintain proper inventory levels as a result 

of advanced PSI (production, sales and inventory) 
management.

(cid:724) The bedrock of the aftermarket business is NSK’s strong 
relationships with distributors and its extensive network.
(cid:724) NSK has advanced analysis capabilities and accumulated 
technologies from access to broad data fields, such as for 
defects and damage at customers and end users.
(cid:724) Feedback is used to improve products and propose 

solutions with new technologies.

Relation to Four Drivers

Relation to Four Drivers

Relation to Four Drivers

Relation to Four Drivers

(cid:724) Realizing operational excellence, mass production design 

(cid:724) Improving profitability by reducing procurement costs 

and preparation with the aim of achieving high quality and 

(cid:690)the Fifth Mid-Term Management Plan(cid:691)

cost competitiveness 

(cid:690)the Fifth Mid-Term Management Plan(cid:691)

(cid:724) Maintaining the strong technological base required for 

mass production design (cid:690)four core technologies(cid:691)

(cid:724) Playing a key role in the launch of global projects and 

overseas projects (cid:690)global business foundation(cid:691)

(cid:724) Building in quality in the mass production design and 

preparation stages as an essential requirement 

(cid:690)CSR/ESG management(cid:691)

(cid:724) Conducting joint development with suppliers in order to increase 

the quality of materials and parts (cid:690)four core technologies(cid:691)

(cid:724) Procuring from non-Japan sites of Group companies and suppliers, and 

supporting global business development (cid:690)global business foundation(cid:691)

(cid:724) Identifying and developing relationships with overseas 

suppliers (cid:690)global business foundation(cid:691)

(cid:724) Maintaining systems for CSR procurement, green procurement, 

avoiding conflict minerals and ensuring compliance with the UK 

Modern Slavery Act (cid:690)CSR/ESG management(cid:691)

(cid:724) Implementing initiatives to strengthen the production 

division and realizing operational excellence (e.g., F2 project) 
and next-generation manufacturing (NSK Smart Factories) 
(cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Accumulating data and technologies through manufacturing 
(cid:690)four core technologies(cid:691)
(cid:724) Promoting collaboration between plants in Japan and overseas 

on manufacturing tasks through the mother plant system 
(cid:690)global business foundation(cid:691)
(cid:724) Improving manufacturing activities, such as safe working conditions and 
reduced burden on the global environment (cid:690)CSR/ESG management(cid:691)

(cid:724) Realizing operational excellence through PSI management 
(cid:690)the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Utilizing feedback to advance core technologies, achieving 

Innovate and Challenge objectives 
(cid:690)four core technologies, the Fifth Mid-Term Management Plan(cid:691)
(cid:724) Strengthening the global sales foundation (overseas 

affiliates, distributor network) (cid:690)global business foundation(cid:691)

(cid:724) Considering the local community and areas near plants 

when products are shipped, considering the environment 
during transportation and delivery (e.g., modal shift) 
(cid:690)CSR/ESG management(cid:691)

12

NSK REPORT 2016

NSK REPORT 2016

13

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The Complete Picture of NSK
Financial and Non-Financial Highlights

Eleven-Year Summary

NSK Ltd. and Consolidated Subsidiaries

Years ended March 31

Financial 
Data

Net sales
[By segment] 

Industrial Machinery Business
Automotive Business
Others

[By region] 
(Based on 
customer location) 

Japan
The Americas
Europe 
Asia 
　China
　Other Asia

Operating income
Ordinary income
Net income attributable to shareholders of the parent
Capital expenditures
Depreciation and amortization
R&D expenditures
Cash flows from operating activities (A)
Cash flows from investing activities (B)
Free cash flows (A) + (B)
Dividends paid
Net assets
Total assets
Interest-bearing debt

Number of employees worldwide (persons)
　Number of overseas employees (persons)
　Number of employees: non-consolidated (persons)
Proportion of female employees (Japan) (%)
Total waste (1,000t)*1
CO2  emissions (1,000t-CO2)*1
Number of environmentally friendly products (cumulative)

Non-Financial 
Data

Per Share 
Data (Yen)

Net income
Net assets
Cash dividends

Financial
Indices

Operating income margin (%)
Return on average shareholders’ equity (ROE) (%)
Return on average assets (ROA) (%)
Ratio of net worth to total capital (%)
Net D/E ratio (times)
Shareholder return ratio (%)*2
Period-end share price (yen)

Price earnings ratio (PER) (times)
Price book-value ratio (PBR) (time)
Dividend yield (%)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2016 (IFRS)

Millions of yen (Financial data)

628,474
261,388
353,124
13,962

330,062
92,367
98,165
107,880
(cid:660)

(cid:660)

42,552
38,916
25,586
48,784
30,099
9,728
66,332
(62,386)
3,946
6,482
247,823
743,032
222,918

22,639
12,897
4,272
(cid:660)
83
304
64

47.28
436.48
12.0

6.8
12.1
3.7
31.7
0.73
25.4
1,022
21.6
2.3
1.2

717,225
294,058
397,863
25,303

364,395
105,111
121,698
126,021
(cid:660)

(cid:660)

62,383
57,595
34,853
37,689
35,316
10,100
64,153
(64,600)
(447)
8,650
276,727
815,788
255,557

23,413
13,285
4,519
5.6
91
437
75

64.53
485.62
16.0

8.7
14.0
4.5
32.2
0.69
24.8
1,124
17.4
2.3
1.4

772,036
307,243
435,705
29,087

388,929
107,321
133,853
141,933
(cid:660)

(cid:660)

69,343
64,854
42,613
53,905
38,380
10,240
69,236
(23,187)
46,049
10,277
283,775
828,580
264,413

25,069
14,374
4,888
5.5
100
451
96

78.84
495.61
19.0

9.0
16.1
5.2
32.3
0.56
24.1
755
9.6
1.5
2.5

647,593
267,021
352,453
28,118

323,375
78,754
111,866
133,596
(cid:660)

(cid:660)

22,106
16,964
4,561
44,138
39,729
10,691
11,785
(46,422)
(34,637)
7,574
248,787
744,229
323,165

24,050
12,895
5,274
5.5
85
384
110

8.44
431.74
14.0

3.4
1.8
0.6
31.4
0.85
165.9
377
44.7
0.9
3.7

(29,355)

(33,348)

(56,090)

(45,262)

587,572

201,963

366,463

19,145

289,540

70,609

98,504

128,918

(cid:660)

(cid:660)

11,305

7,598

4,765

21,818

37,149

8,794

51,108

21,753

4,327

264,688

789,624

304,937

24,633

13,204

5,932

6.6

87

378

124

8.82

458.65

8.0

1.9

2.0

0.6

31.4

0.73

90.7

738

83.7

1.6

1.1

710,431

259,095

424,157

27,178

354,542

85,466

102,176

168,246

82,587

85,658

43,524

38,572

26,110

41,294

34,943

10,515

64,973

31,625

5,950

275,269

788,626

274,585

26,334

15,039

6,306

6.5

176

865

140

48.30

475.45

11.0

6.1

10.3

3.3

32.6

0.60

22.8

717

14.8

1.5

1.5

733,192

255,835

444,585

32,772

363,754

86,267

107,958

175,213

89,068

86,143

44,417

42,004

28,514

54,619

35,807

10,373

57,158

1,068

6,491

299,066

845,073

296,750

27,444

16,181

6,203

6.7

180

877

157

52.75

518.56

12.0

6.1

10.6

3.5

33.2

0.58

22.7

637

12.1

1.2

1.9

732,842

216,142

490,545

26,154

333,348

103,352

102,667

193,473

91,442

102,030

32,361

30,310

15,739

48,025

34,598

10,432

53,797

8,534

5,943

340,812

882,547

305,102

28,487

17,267

6,398

6.5

182

871

173

29.14

591.36

11.0

4.4

5.2

1.8

36.2

0.51

37.7

715

24.5

1.2

1.5

105,273

(44,422)

60,850

18,425

473,560

1,038,218

278,152

108,622

(45,212)

63,410

18,425

478,871

1,032,374

278,152

382,155

1,000,932

315,532

481,859

1,129,164

326,400

871,742

242,969

590,545

38,226

329,136

134,482

124,590

283,532

167,239

116,293

68,049

66,785

31,167

45,448

35,086

9,919

70,342

(42,402)

27,940

8,650

30,454

19,231

6,310

6.6

192

939

190

57.70

664.74

16.0

7.8

9.2

3.3

35.9

0.41

27.7

1,062

18.4

1.6

1.5

974,885

276,361

656,998

41,525

328,837

164,821

133,752

347,475

210,237

137,238

97,327

91,002

61,962

49,197

38,568

10,660

67,709

(46,335)

21,374

15,161

31,088

20,052

6,294

6.9

201

968

202

114.56

842.69

28.0

10.0

15.3

5.8

40.4

0.31

24.4

1,758

15.3

2.1

1.6

975,319

259,784

689,122

26,411

318,434

183,652

131,830

341,403

204,361

137,042

94,726

93,964

67,169

54,364

41,611

11,155

31,587

20,296

6,278

7.0

206

991

211

124.06

828.33

34.0

9.7 

14.9

6.2

43.2

0.23

27.4

8.3

1.2

3.3

975,319

259,784

689,122

26,411

318,434

183,652

131,830

341,403

204,361

137,042

89,534

(cid:660)

65,719

54,996

43,048

11,155

31,587

20,296

6,278

7.0

206

991

211

121.38

839.56

34.0

9.2

14.3

6.1

44.0

0.23

28.0

8.5

1.2

3.3

1,030

1,030

Exchange 
Rate Data

US$1
€1

110.37 
137.39 

116.93 
150.35 

114.55 
162.22 

100.74 
144.47 

92.83 

130.89 

85.63 

112.92 

79.02

109.40

83.10

107.14

100.24

134.37

109.93

138.77

120.14

132.58

120.14

132.58

*1 Total waste and CO2 emissions data up to the year ended March 31, 2010, encompasses Japan only. Data from the year ended March 31, 2011 is presented on a global basis.
*2 Shareholder return ratio = Dividends paid (cid:696) Net income
  NSK did not acquire treasury stock over the 11-year period under review. The Company has acquired treasury stock during the year ending March 31, 2017.

14

NSK REPORT 2016

NSK REPORT 2016

15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Complete Picture of NSK

Financial and Non-Financial Highlights

Eleven-Year Summary

NSK Ltd. and Consolidated Subsidiaries

Years ended March 31

Financial 

Data

Net sales

[By segment] 

Industrial Machinery Business

Automotive Business

[By region] 

(Based on 

customer location) 

Europe 

Others

Japan

The Americas

Asia 

　China

　Other Asia

Operating income

Ordinary income

Net income attributable to shareholders of the parent

Capital expenditures

Depreciation and amortization

R&D expenditures

Cash flows from operating activities (A)

Cash flows from investing activities (B)

Free cash flows (A) + (B)

Dividends paid

Net assets

Total assets

Interest-bearing debt

Non-Financial 

Number of employees worldwide (persons)

Data

　Number of overseas employees (persons)

　Number of employees: non-consolidated (persons)

Proportion of female employees (Japan) (%)

Total waste (1,000t)*1

CO2  emissions (1,000t-CO2)*1

Number of environmentally friendly products (cumulative)

Per Share 

Data (Yen)

Net income

Net assets

Cash dividends

Financial

Indices

Operating income margin (%)

Return on average shareholders’ equity (ROE) (%)

Return on average assets (ROA) (%)

Ratio of net worth to total capital (%)

Net D/E ratio (times)

Shareholder return ratio (%)*2

Period-end share price (yen)

Price earnings ratio (PER) (times)

Price book-value ratio (PBR) (time)

Dividend yield (%)

628,474

261,388

353,124

13,962

330,062

92,367

98,165

107,880

(cid:660)

(cid:660)

42,552

38,916

25,586

48,784

30,099

9,728

66,332

(62,386)

3,946

6,482

247,823

743,032

222,918

22,639

12,897

4,272

(cid:660)

83

304

64

47.28

436.48

12.0

6.8

12.1

3.7

31.7

0.73

25.4

1,022

21.6

2.3

1.2

717,225

294,058

397,863

25,303

364,395

105,111

121,698

126,021

(cid:660)

(cid:660)

62,383

57,595

34,853

37,689

35,316

10,100

64,153

(64,600)

(447)

8,650

276,727

815,788

255,557

23,413

13,285

4,519

5.6

91

437

75

64.53

485.62

16.0

8.7

14.0

4.5

32.2

0.69

24.8

1,124

17.4

2.3

1.4

772,036

307,243

435,705

29,087

388,929

107,321

133,853

141,933

(cid:660)

(cid:660)

69,343

64,854

42,613

53,905

38,380

10,240

69,236

(23,187)

46,049

10,277

283,775

828,580

264,413

25,069

14,374

4,888

5.5

100

451

96

78.84

495.61

19.0

9.0

16.1

5.2

32.3

0.56

24.1

755

9.6

1.5

2.5

647,593

267,021

352,453

28,118

323,375

78,754

111,866

133,596

(cid:660)

(cid:660)

22,106

16,964

4,561

44,138

39,729

10,691

11,785

(46,422)

(34,637)

7,574

248,787

744,229

323,165

24,050

12,895

5,274

5.5

85

384

110

8.44

431.74

14.0

3.4

1.8

0.6

31.4

0.85

165.9

377

44.7

0.9

3.7

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2016 (IFRS)

Millions of yen (Financial data)

587,572
201,963
366,463
19,145

289,540
70,609
98,504
128,918
(cid:660)

(cid:660)

11,305
7,598
4,765
21,818
37,149
8,794
51,108
(29,355)
21,753
4,327
264,688
789,624
304,937

24,633
13,204
5,932
6.6
87
378
124

8.82
458.65
8.0

1.9
2.0
0.6
31.4
0.73
90.7
738
83.7
1.6
1.1

710,431
259,095
424,157
27,178

354,542
85,466
102,176
168,246
82,587
85,658

43,524
38,572
26,110
41,294
34,943
10,515
64,973
(33,348)
31,625
5,950
275,269
788,626
274,585

26,334
15,039
6,306
6.5
176
865
140

48.30
475.45
11.0

6.1
10.3
3.3
32.6
0.60
22.8
717
14.8
1.5
1.5

733,192
255,835
444,585
32,772

363,754
86,267
107,958
175,213
89,068
86,143

44,417
42,004
28,514
54,619
35,807
10,373
57,158
(56,090)
1,068
6,491
299,066
845,073
296,750

27,444
16,181
6,203
6.7
180
877
157

52.75
518.56
12.0

6.1
10.6
3.5
33.2
0.58
22.7
637
12.1
1.2
1.9

732,842
216,142
490,545
26,154

333,348
103,352
102,667
193,473
91,442
102,030

32,361
30,310
15,739
48,025
34,598
10,432
53,797
(45,262)
8,534
5,943
340,812
882,547
305,102

28,487
17,267
6,398
6.5
182
871
173

29.14
591.36
11.0

4.4
5.2
1.8
36.2
0.51
37.7
715
24.5
1.2
1.5

871,742
242,969
590,545
38,226

329,136
134,482
124,590
283,532
167,239
116,293

68,049
66,785
31,167
45,448
35,086
9,919
70,342
(42,402)
27,940
8,650
382,155
1,000,932
315,532

30,454
19,231
6,310
6.6
192
939
190

57.70
664.74
16.0

7.8
9.2
3.3
35.9
0.41
27.7
1,062
18.4
1.6
1.5

974,885
276,361
656,998
41,525

328,837
164,821
133,752
347,475
210,237
137,238

97,327
91,002
61,962
49,197
38,568
10,660
67,709
(46,335)
21,374
15,161
481,859
1,129,164
326,400

31,088
20,052
6,294
6.9
201
968
202

114.56
842.69
28.0

10.0
15.3
5.8
40.4
0.31
24.4
1,758
15.3
2.1
1.6

975,319
259,784
689,122
26,411

318,434
183,652
131,830
341,403
204,361
137,042

94,726
93,964
67,169
54,364
41,611
11,155
105,273
(44,422)
60,850
18,425
473,560
1,038,218
278,152

975,319
259,784
689,122
26,411

318,434
183,652
131,830
341,403
204,361
137,042

89,534
(cid:660)
65,719
54,996
43,048
11,155
108,622
(45,212)
63,410
18,425
478,871
1,032,374
278,152

31,587
20,296
6,278
7.0
206
991
211

124.06
828.33
34.0

9.7 
14.9
6.2
43.2
0.23
27.4
1,030
8.3
1.2
3.3

31,587
20,296
6,278
7.0
206
991
211

121.38
839.56
34.0

9.2
14.3
6.1
44.0
0.23
28.0
1,030
8.5
1.2
3.3

Exchange 

Rate Data

US$1

€1

110.37 

137.39 

116.93 

150.35 

114.55 

162.22 

100.74 

144.47 

92.83 
130.89 

85.63 
112.92 

79.02
109.40

83.10
107.14

100.24
134.37

109.93
138.77

120.14
132.58

120.14
132.58

*1 Total waste and CO2 emissions data up to the year ended March 31, 2010, encompasses Japan only. Data from the year ended March 31, 2011 is presented on a global basis.

*2 Shareholder return ratio = Dividends paid (cid:696) Net income

  NSK did not acquire treasury stock over the 11-year period under review. The Company has acquired treasury stock during the year ending March 31, 2017.

14

NSK REPORT 2016

NSK REPORT 2016

15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Complete Picture of NSK
Financial and Non-Financial Highlights

Trends in Major Indices Note: Figures in parentheses are presented in accordance with International Financial Reporting Standards (IFRS).

Net Sales

(¥ Billions)
1,000

800

600

400

200

0

974.9

975.3
(975.3)

871.7

733.2

732.8

12/3

13/3

14/3

15/3

16/3

Operating Income Margin / Gross Profit Margin

Number of New Product Releases (annual)

Lost-Worktime Injury Rate

(％)
25

20

15

10

5

0

23.1

23.0
(22.5)

10.0

9.7
(9.2)

21.3

7.8

20.2

18.6

6.1

4.4

0.80

0.70

25

21

22

24

0.34

0.34

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

Net Income Attributable to Shareholders of the Parent 
ROE
(¥ Billions)
80

(％)
16

14.9
(14.3)

15.3

62.0

10.6

28.5

5.2

15.7

9.2

31.2

12/3

13/3

14/3

15/3

16/3

67.2
(65.7)

12

8

4

0

- Operating Income Margin　- Gross Profit Margin

Net Income per Share 
Cash Dividends per Share, Dividend Payout Ratio 
(Yen)

124.1
(121.4)

120

90

60

30

0

37.7

114.6

22.7

52.8

27.7

57.7

24.4

29.1

28.0

12.0

11.0

16.0

27.4
(28.0)

34.0
(34.0)

12/3

13/3

14/3

15/3

16/3

(％)

40

30

20

10

0

(¥ Billions)
60

54.6

48.0

45.4

49.2

35.8

34.6

35.1

54.4
(55.0)

41.6
(43.0)

38.6

(¥ Billions)
500

400

300

200

100

0

33.2
296.8

36.2

305.1

35.9

315.5

40.4

326.4

43.2
(44.0)

278.2
(278.2)

12/3

13/3

14/3

15/3

16/3

(％)
50

40

30

20

10

0

60

40

20

0

50

40

30

20

10

0

(Products)

31

(Persons)

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

40

30

20

10

0

(%)

5

0

-5

-10

-15

-20

-25

-30

0.8

0.6

0.4

0.2

0

6

4

2

0

250

200

150

100

50

0

50

25

0

Note: Began collecting data for the NSK Group in Japan from the 

year ended March 31, 2013. Data from the year ended March 

31, 2015, are presented on a global basis.

Number of Employees Worldwide 

Ratio of Overseas Employees 

Ratio of Female Employees

(％)

100

(%)

8

6.7

6.5

6.6

6.9

8.2

＊

(Global)

7.0

(Japan)

27,444

28,487

59.0

61.2

30,454

31,088

31,587

63.1

64.5

75

64.3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

0

-0.3

-1.3

-1.1

1.0

-4.5

15/3

1.9

16/3

5.1

-10.2

-8.4

(Accumulated No. of products)

202

211

190

173

157

-16.3

-26.7

-27.0

 Manufacturing in Japan　  Manufacturing outside Japan　

  Distribution in Japan

Note: Rates of percentage increase and decrease are  

presented compared with the base date of the year ended 

March 31, 2012.

12/3

13/3

14/3

15/3

16/3

Note: Cumulative data from the year ended March 31, 2003.

■  Net Income Attributable to Shareholders of the Parent (left)
- ROE (right)

■ Net Income per Share (left)　 ■ Cash Dividends per Share (left)
- Dividend Payout Ratio (right)

■  Number of Employees Worldwide (left)

- Ratio of Overseas Employees (right)

*Data include certain estimates.

Capital Expenditures / Depreciation and Amortization

Interest-Bearing Debt / Ratio of Net Worth to Total Capital

CO2 Emissions per Production Unit

Number of Environmentally Friendly Products Developed

12/3

13/3

14/3

15/3

16/3

■ Capital Expenditures　■ Depreciation and Amortization

■ Interest-Bearing Debt (left) 
-Ratio of Net Worth to Total Capital (right)

16

NSK REPORT 2016

NSK REPORT 2016

17

The Complete Picture of NSK

Financial and Non-Financial Highlights

Trends in Major Indices Note: Figures in parentheses are presented in accordance with International Financial Reporting Standards (IFRS).

974.9

975.3

(975.3)

871.7

733.2

732.8

23.1

23.0

(22.5)

10.0

9.7

(9.2)

21.3

7.8

20.2

18.6

6.1

4.4

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

- Operating Income Margin　- Gross Profit Margin

Net Income Attributable to Shareholders of the Parent 

Net Income per Share 

15.3

62.0

14.9

(14.3)

67.2

(65.7)

10.6

28.5

5.2

15.7

9.2

31.2

Cash Dividends per Share, Dividend Payout Ratio 

124.1

(121.4)

37.7

114.6

22.7

52.8

27.7

57.7

24.4

27.4

(28.0)

34.0

(34.0)

29.1

28.0

12.0

11.0

16.0

(％)

16

12

8

4

0

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

(¥ Billions)

54.6

48.0

45.4

49.2

35.8

34.6

35.1

54.4

(55.0)

41.6

(43.0)

38.6

(¥ Billions)

33.2

296.8

36.2

305.1

35.9

315.5

40.4

326.4

43.2

(44.0)

278.2

(278.2)

Net Sales

(¥ Billions)

1,000

800

600

400

200

0

ROE

(¥ Billions)

80

60

40

20

0

60

50

40

30

20

10

0

(％)

25

20

15

10

5

0

(Yen)

120

90

60

30

0

500

400

300

200

100

0

(％)

40

30

20

10

0

(％)

50

40

30

20

10

0

Operating Income Margin / Gross Profit Margin

Number of New Product Releases (annual)

Lost-Worktime Injury Rate

(Products)
40

31

30

20

10

0

25

21

22

24

12/3

13/3

14/3

15/3

16/3

0.8

0.6

0.4

0.2

0

0.80

0.70

0.34

0.34

12/3

13/3

14/3

15/3

16/3

Note: Began collecting data for the NSK Group in Japan from the 

year ended March 31, 2013. Data from the year ended March 
31, 2015, are presented on a global basis.

■  Net Income Attributable to Shareholders of the Parent (left)

■ Net Income per Share (left)　 ■ Cash Dividends per Share (left)

- ROE (right)

- Dividend Payout Ratio (right)

■  Number of Employees Worldwide (left)
- Ratio of Overseas Employees (right)

30,000

25,000

20,000

15,000

10,000

5,000

0

27,444

28,487

59.0

61.2

30,454

31,088

31,587

63.1

64.5

75

64.3

50

25

0

12/3

13/3

14/3

15/3

16/3

6

4

2

0

12/3

13/3

14/3

15/3

16/3

*Data include certain estimates.

Number of Employees Worldwide 
Ratio of Overseas Employees 

(Persons)
35,000

Ratio of Female Employees

(％)
100

(%)
8

6.7

6.5

6.6

6.9

＊

8.2
(Global)

7.0
(Japan)

Capital Expenditures / Depreciation and Amortization

Interest-Bearing Debt / Ratio of Net Worth to Total Capital

CO2 Emissions per Production Unit

Number of Environmentally Friendly Products Developed

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

■ Capital Expenditures　■ Depreciation and Amortization

■ Interest-Bearing Debt (left) 

-Ratio of Net Worth to Total Capital (right)

 Manufacturing in Japan　  Manufacturing outside Japan　
  Distribution in Japan

Note: Rates of percentage increase and decrease are  

presented compared with the base date of the year ended 
March 31, 2012.

(%)
5

0

-5

-10

-15

-20

-25

-30

12/3

13/3

14/3

0

-0.3

-1.3

-1.1

1.0

-4.5

15/3

1.9

16/3

5.1

(Accumulated No. of products)
250

-10.2

-8.4

-16.3

-26.7

-27.0

200

150

100

50

0

202

211

190

173

157

12/3

13/3

14/3

15/3

16/3

Note: Cumulative data from the year ended March 31, 2003.

16

NSK REPORT 2016

NSK REPORT 2016

17

Creating Corporate Value (Growth Strategies)
To Our Stakeholders

Guided by Vision 2026, We Will Accelerate Steps to Set the 

Future in Motion and Reach the Next Phase of Growth.

Celebrating Our 100th Anniversary

Our centennial year is an important milestone in which we must address the issue of how we 

must adapt and evolve toward the future. To achieve this, I believe that we must foster a culture 

and mindset that allows us to take a bold, proactive approach to business.

NSK will celebrate its 100th anniversary in November 

significant role, we do expect applications and 

2016. Since its foundation as Japan’s first manufacturer 

customers’ needs to change over the next 50‒100 years. 

of bearings in 1916, the Company has continued to 

In the automotive sector, for example, we anticipate an 

support the advancement of society by developing and 

increasingly rapid shift from conventional internal 

manufacturing bearings and other automotive parts, as 

combustion engines to electric, plug-in hybrid and fuel 

well as machine components such as precision 

cell vehicles. This shift in power source is expected to 

machinery and parts. I would like to express my sincere 

alter the number of bearings used as well as the 

appreciation to all our stakeholders, including 

performance and quality levels required. Turning to 

shareholders, investors, customers, and partners, for 

steering products, by-wire technologies that control 

their support over the past century.

steering wheels electronically in a similar fashion to 

Looking back over the past 100 years, our customers 

aircraft have begun to emerge. Given these trends,      

have played a vital role in nurturing NSK. As Japan’s 

we must recognize the risk of relying solely on our 

industry grew in strength and the global status of 

traditional business areas, consider what will be 

Japanese iron and steel, electrical equipment, 

required for future growth, and realign our research 

automobile, machine tool and other manufacturers 

and development efforts accordingly.

rose, there became a constant need for new, 

At the same time, we must also look to the knowledge 

higher-performance products. By listening and 

of our predecessors, drawing on their experience in 

earnestly responding to the needs of our customers, 

responding to past changes in the economic 

NSK has constantly striven to deliver products that 

environment and technological innovations. NSK was 

exceed expectations.

quick to expand its business globally and was a pioneer 

In reaching this milestone in NSK’s long history, I 

in the development of electric power steering (EPS). 

believe we must consider how to further strengthen the 

Looking ahead, it is imperative that we remain one step 

Company as well as reconsidering whether our existing 

ahead of change and that we foster a culture and a 

business activities and products are sufficient. Bearing 

mindset that is conducive to action. In this regard, I 

models tend to retain the same basic design over a long 

would like to take the lead in ensuring that this 

period of time, and at first glance are a product type that 

mindset is shared among all employees.

undergoes little change. Although it is difficult to 

imagine a future world in which bearings do not play a 

The Fourth Mid-Term Management Plan and NSK Vision 2026

Despite achieving all of the quantitative targets set out under the Fourth Mid-Term Management Plan, 

we are aware of several areas in which we fell short of our goals. With a view to the next 100 years, we 

have positioned Setting the Future in Motion as our vision for the next decade. Under this vision, we will 

break free of our previous passive and reactive approach and adopt a more proactive stance in our 

mindset, behavior and decision-making criteria.

We take considerable pride in having achieved all of the 

substantial changes in economic conditions and the 

quantitative targets set out under the Fourth Mid-Term 

market environment driven by the appreciation of the 

Management Plan in the fiscal year ended March 31, 

Japanese yen. In contrast, the Company enjoyed 

2016, the final year of the plan. Despite coming close, 

relatively favorable currency and economic conditions 

the Company fell short of its objectives for the preceding 

during the Fourth Mid-Term Management Plan.

two management plans. Our performance during the 

Turning to specific measures, our success in 

period of the Second Mid-Term Management Plan was 

improving profitability in the Automotive Business was a 

affected by the financial crisis that followed the Global 

major positive result. Having confronted several 

Financial Crisis, while throughout the Third Mid-Term 

challenges that hindered our efforts in the past, I am 

Management Plan, our results were buffeted by 

confident that we have made a significant breakthrough. 

President and Chief Executive Officer

18

NSK REPORT 2016

NSK REPORT 2016

19

In addition, revenue in the steering business surpassed 

more proactive stance in our mindset, behavior and 

¥300 billion thanks largely to an increase in electric 

decision-making criteria. Although NSK has 

power steering system sales.

traditionally excelled in following its customers’ 

The substantial upswing in our business in emerging 

instructions to the finest detail, we have not been the 

markets over the past three years is also a source of 

best at proposing new ideas that our customers may not 

satisfaction―especially in China, where our operations 

have noticed.

have grown to more than ¥200 billion.

Because our products are not finished goods, our 

Meanwhile, the Industrial Machinery Business, which 

initial contact with society comes through an 

was positioned as a driver of earnings growth, was 

intermediary in the form of machinery and equipment 

unfortunately affected by the economic cycle from the 

makers and other finished goods manufacturers. To 

second half of the final fiscal year of the Mid-Term 

create new finished goods, products and services, we 

Management Plan.

must consider how finished goods are being used by end 

In line with our objective of establishing corporate 

users and identify any unmet user needs, in addition to 

fundamentals appropriate for a company with net sales 

addressing the demands of our direct customers and 

of ¥1 trillion, we have seen a certain level of results from 

the needs of markets. On this basis, it is vital that we are 

our initiatives, including evolution of the global 

always aware of the need to create new products and 

management structure. However, other tasks remain 

services. While maintaining our current strengths, we 

ongoing, such as standardizing operations and creating 

aim to hone our abilities further while extending our 

a structure that is strongly resilient to economic swings.

reach to the end users that our customers serve in 

As we take the first step on our journey into the next 

order to better understand their expectations and 

century, NSK Vision 2026 outlines where we want to be 

needs. This will help us increase the scope and quality 

in 10 years. The concept of Setting the Future in Motion 

of the finished goods and services we provide. We will 

expressed in this vision does not imply changing a 

adopt an increasingly forward-looking and proactive 

specific business but rather expresses our intention to 

mindset as we move forward.

move away from a passive and reactive approach to a 

Creating Corporate Value (Growth Strategies)

To Our Stakeholders

Guided by Vision 2026, We Will Accelerate Steps to Set the 
Future in Motion and Reach the Next Phase of Growth.

Celebrating Our 100th Anniversary

Our centennial year is an important milestone in which we must address the issue of how we 
must adapt and evolve toward the future. To achieve this, I believe that we must foster a culture 
and mindset that allows us to take a bold, proactive approach to business.

NSK will celebrate its 100th anniversary in November 
2016. Since its foundation as Japan’s first manufacturer 
of bearings in 1916, the Company has continued to 
support the advancement of society by developing and 
manufacturing bearings and other automotive parts, as 
well as machine components such as precision 
machinery and parts. I would like to express my sincere 
appreciation to all our stakeholders, including 
shareholders, investors, customers, and partners, for 
their support over the past century.

Looking back over the past 100 years, our customers 

have played a vital role in nurturing NSK. As Japan’s 
industry grew in strength and the global status of 
Japanese iron and steel, electrical equipment, 
automobile, machine tool and other manufacturers 
rose, there became a constant need for new, 
higher-performance products. By listening and 
earnestly responding to the needs of our customers, 
NSK has constantly striven to deliver products that 
exceed expectations.

In reaching this milestone in NSK’s long history, I 
believe we must consider how to further strengthen the 
Company as well as reconsidering whether our existing 
business activities and products are sufficient. Bearing 
models tend to retain the same basic design over a long 
period of time, and at first glance are a product type that 
undergoes little change. Although it is difficult to 
imagine a future world in which bearings do not play a 

significant role, we do expect applications and 
customers’ needs to change over the next 50‒100 years. 
In the automotive sector, for example, we anticipate an 
increasingly rapid shift from conventional internal 
combustion engines to electric, plug-in hybrid and fuel 
cell vehicles. This shift in power source is expected to 
alter the number of bearings used as well as the 
performance and quality levels required. Turning to 
steering products, by-wire technologies that control 
steering wheels electronically in a similar fashion to 
aircraft have begun to emerge. Given these trends,      
we must recognize the risk of relying solely on our 
traditional business areas, consider what will be 
required for future growth, and realign our research 
and development efforts accordingly.

At the same time, we must also look to the knowledge 

of our predecessors, drawing on their experience in 
responding to past changes in the economic 
environment and technological innovations. NSK was 
quick to expand its business globally and was a pioneer 
in the development of electric power steering (EPS). 
Looking ahead, it is imperative that we remain one step 
ahead of change and that we foster a culture and a 
mindset that is conducive to action. In this regard, I 
would like to take the lead in ensuring that this 
mindset is shared among all employees.

The Fourth Mid-Term Management Plan and NSK Vision 2026

Despite achieving all of the quantitative targets set out under the Fourth Mid-Term Management Plan, 
we are aware of several areas in which we fell short of our goals. With a view to the next 100 years, we 
have positioned Setting the Future in Motion as our vision for the next decade. Under this vision, we will 
break free of our previous passive and reactive approach and adopt a more proactive stance in our 
mindset, behavior and decision-making criteria.

We take considerable pride in having achieved all of the 
quantitative targets set out under the Fourth Mid-Term 
Management Plan in the fiscal year ended March 31, 
2016, the final year of the plan. Despite coming close, 
the Company fell short of its objectives for the preceding 
two management plans. Our performance during the 
period of the Second Mid-Term Management Plan was 
affected by the financial crisis that followed the Global 
Financial Crisis, while throughout the Third Mid-Term 
Management Plan, our results were buffeted by 

substantial changes in economic conditions and the 
market environment driven by the appreciation of the 
Japanese yen. In contrast, the Company enjoyed 
relatively favorable currency and economic conditions 
during the Fourth Mid-Term Management Plan.
Turning to specific measures, our success in 

improving profitability in the Automotive Business was a 
major positive result. Having confronted several 
challenges that hindered our efforts in the past, I am 
confident that we have made a significant breakthrough. 

President and Chief Executive Officer

18

NSK REPORT 2016

NSK REPORT 2016

19

In addition, revenue in the steering business surpassed 

more proactive stance in our mindset, behavior and 

¥300 billion thanks largely to an increase in electric 

decision-making criteria. Although NSK has 

power steering system sales.

traditionally excelled in following its customers’ 

The substantial upswing in our business in emerging 

instructions to the finest detail, we have not been the 

markets over the past three years is also a source of 

best at proposing new ideas that our customers may not 

satisfaction―especially in China, where our operations 

have noticed.

have grown to more than ¥200 billion.

Because our products are not finished goods, our 

Meanwhile, the Industrial Machinery Business, which 

initial contact with society comes through an 

was positioned as a driver of earnings growth, was 

intermediary in the form of machinery and equipment 

unfortunately affected by the economic cycle from the 

makers and other finished goods manufacturers. To 

second half of the final fiscal year of the Mid-Term 

create new finished goods, products and services, we 

Management Plan.

must consider how finished goods are being used by end 

In line with our objective of establishing corporate 

users and identify any unmet user needs, in addition to 

fundamentals appropriate for a company with net sales 

addressing the demands of our direct customers and 

of ¥1 trillion, we have seen a certain level of results from 

the needs of markets. On this basis, it is vital that we are 

our initiatives, including evolution of the global 

always aware of the need to create new products and 

management structure. However, other tasks remain 

services. While maintaining our current strengths, we 

ongoing, such as standardizing operations and creating 

aim to hone our abilities further while extending our 

a structure that is strongly resilient to economic swings.

reach to the end users that our customers serve in 

As we take the first step on our journey into the next 

order to better understand their expectations and 

century, NSK Vision 2026 outlines where we want to be 

needs. This will help us increase the scope and quality 

in 10 years. The concept of Setting the Future in Motion 

of the finished goods and services we provide. We will 

expressed in this vision does not imply changing a 

adopt an increasingly forward-looking and proactive 

specific business but rather expresses our intention to 

mindset as we move forward.

move away from a passive and reactive approach to a 

Creating Corporate Value (Growth Strategies)
To Our Stakeholders

In addition, revenue in the steering business surpassed 
¥300 billion thanks largely to an increase in electric 
power steering system sales.

The substantial upswing in our business in emerging 

markets over the past three years is also a source of 
satisfaction―especially in China, where our operations 
have grown to more than ¥200 billion.

Meanwhile, the Industrial Machinery Business, which 

was positioned as a driver of earnings growth, was 
unfortunately affected by the economic cycle from the 
second half of the final fiscal year of the Mid-Term 
Management Plan.

In line with our objective of establishing corporate 
fundamentals appropriate for a company with net sales 
of ¥1 trillion, we have seen a certain level of results from 
our initiatives, including evolution of the global 
management structure. However, other tasks remain 
ongoing, such as standardizing operations and creating 
a structure that is strongly resilient to economic swings.
As we take the first step on our journey into the next 
century, NSK Vision 2026 outlines where we want to be 
in 10 years. The concept of Setting the Future in Motion 
expressed in this vision does not imply changing a 
specific business but rather expresses our intention to 
move away from a passive and reactive approach to a 

NSK’s Stakeholders and Value

more proactive stance in our mindset, behavior and 
decision-making criteria. Although NSK has 
traditionally excelled in following its customers’ 
instructions to the finest detail, we have not been the 
best at proposing new ideas that our customers may not 
have noticed.

Because our products are not finished goods, our 

initial contact with society comes through an 
intermediary in the form of machinery and equipment 
makers and other finished goods manufacturers. To 
create new finished goods, products and services, we 
must consider how finished goods are being used by end 
users and identify any unmet user needs, in addition to 
addressing the demands of our direct customers and 
the needs of markets. On this basis, it is vital that we are 
always aware of the need to create new products and 
services. While maintaining our current strengths, we 
aim to hone our abilities further while extending our 
reach to the end users that our customers serve in 
order to better understand their expectations and 
needs. This will help us increase the scope and quality 
of the finished goods and services we provide. We will 
adopt an increasingly forward-looking and proactive 
mindset as we move forward.

We take considerable pride in having achieved all of the 

substantial changes in economic conditions and the 

quantitative targets set out under the Fourth Mid-Term 

market environment driven by the appreciation of the 

Management Plan in the fiscal year ended March 31, 

Japanese yen. In contrast, the Company enjoyed 

2016, the final year of the plan. Despite coming close, 

relatively favorable currency and economic conditions 

the Company fell short of its objectives for the preceding 

during the Fourth Mid-Term Management Plan.

two management plans. Our performance during the 

Turning to specific measures, our success in 

period of the Second Mid-Term Management Plan was 

improving profitability in the Automotive Business was a 

affected by the financial crisis that followed the Global 

major positive result. Having confronted several 

Financial Crisis, while throughout the Third Mid-Term 

challenges that hindered our efforts in the past, I am 

Management Plan, our results were buffeted by 

confident that we have made a significant breakthrough. 

NSK places emphasis on the stakeholders who represent the next generation and believes that
increasing value for its customers will ultimately lead to greater value for employees and shareholders.

NSK has identified six core stakeholders: customers, 
suppliers, employees, shareholders and investors, local 
communities and the next generation. Of these, the next 
generation of stakeholders includes the children and 
students who represent our future, and to whom we 
must pass on a bountiful environment and a stable 
society. What will NSK look like when today’s new 
graduates reach their 40s and 50s? Although the 
makeup of the company may have changed considerably 
by then, we hope to build NSK into a larger and better 
company than it is today.

To do so, NSK needs to provide greater value to its 
stakeholders. As a manufacturer, NSK must first and 
foremost provide value to its customers―in other words, 
deliver happiness and satisfaction to our customers 
through the products we make and the services we 
provide. In addition to the performance and functionality 
of the finished goods, we must clearly understand the 
requirements of our customers and design our products 
to deliver value accordingly. To this end, it is important to 

design value into our products and assure our 
customers that we are addressing their requirements to 
the fullest. Most of our products are used for a long 
period of time. Accordingly, after-sales services are 
integral to the value gained from using our products. In 
the unlikely event of a problem occurring, we are ready 
to provide solutions based on a thorough investigation 
and analysis of the root cause of the problem. The ability 
to provide this high level of reassurance is highly valued 
by our customers.

We aim to delight our customers with the value we 
provide, and from a broader perspective, enhance the 
value of the NSK brand. Doing so allows the managers 
and employees at NSK who support our design, 
manufacturing and sales operations, to find meaning in 
their work. The continuous expansion of this value will 
ultimately lead to greater value for NSK’s 
shareholders.

In the past, overseas operations at NSK were regarded 

We have produced bearings overseas for more than 

as somewhat special, and the company’s overall 

financials and results were reported primarily on a 

non-consolidated basis. As the company is now 

managed and financial reports compiled on a 

consolidated basis, even the bonuses of employees 

working at plants in Japan are determined by global 

performance metrics. Moreover, our plants in Japan 

fulfill the role of mother plants to the plants located 

overseas. This essentially means that any issues that 

arise at overseas plants can be accurately and swiftly 

addressed with assistance from the mother plants in 

performance worldwide.

Japan. As such, our international business connections 

In addition to expanding business outside Japan, NSK 

have strengthened to a point that would have been 

surprising in the past. Moreover, our sales team in 

also has further localized its operations. In order to 

raise the bar at our plants overseas and expanding 

Japan hear of customer needs for the same products 

operations, we must hire and train exceptional 

and services in China or the United States, for example, 

personnel. However, at some plants hiring outstanding 

during the course of their duties. In this sense, every 

personnel can prove a challenge due to the site location 

aspect of our operations is becoming globalized.

However, we see room for improvement in 

or regional characteristics. To further enhance group 

management, it is important to assign talented 

decision-making transparency, methods and procedures 

personnel to global management positions. Personnel 

in light of the global standards for these aspects of 

reassignments and placements must take these points 

20

NSK REPORT 2016

NSK REPORT 2016

21

into consideration. Globalization of our personnel is one 

area in which we can improve further. We need 

managers and upper-level managers with the ability to 

function not only in their own country but around the 

world, bringing their advanced expertise to the 

marketing, development and design, production 

technology, production management and procurement 

divisions. At NSK, we refer to these employees as 

global management resources. We have identified key 

global posts throughout the company and evaluated 

and categorized individual abilities in databases for use 

in career development and training.

Global Business Development for Future Growth

Globalization is set to progress further at NSK.

The development and utilization of global managers will be a key to strengthening production 

worldwide and enhancing the capabilities of the Group’s human resources.

management. The globalization of NSK to date has 

centered on transplanting Japanese culture overseas. 

More recently, however, production at our overseas 

plants has been managed at sophisticated levels on a 

par with general best practices. One such plant is 

located in Changwon, South Korea. Although it may be 

partly due to the local culture, employees at the plant 

have a proactive, competitive mindset, constantly seek 

improvement, and are passionate about their work. 

Plants in other countries could learn much from 

excellent plants such as this, and we have therefore 

started to dispatch staff from these outstanding plants 

to our other overseas plants, such as those in India and 

Mexico, to provide guidance.

Steering systems are a core product of the 

Automotive Business. With the proliferation of electric 

power steering systems over the past 10 years, 

production at our plants overseas has also expanded. 

Growth in the global business has made it vital that we 

increase production outside Japan and collaborate 

globally. As overseas expansion in steering systems has 

been relatively recent, this has allowed us to increase 

efficiency through the standardization of equipment, 

processes and quality assurance systems.

40 years, meaning that our plants are at different stages 

of modernization.  Our newest plants have the latest 

processes and equipment, but our plants built 40 years 

ago require investment to modernize and enhance their 

competitiveness. Although our overseas bearing plants 

started out with methodologies transferred from Japan, 

over many years of operations they have gradually 

localized their practices. We must reinforce the 

complementary relationships between our global plants 

and bring them up to a consistently high level of 

Creating Corporate Value (Growth Strategies)

To Our Stakeholders

In addition, revenue in the steering business surpassed 

more proactive stance in our mindset, behavior and 

¥300 billion thanks largely to an increase in electric 

decision-making criteria. Although NSK has 

power steering system sales.

traditionally excelled in following its customers’ 

The substantial upswing in our business in emerging 

instructions to the finest detail, we have not been the 

markets over the past three years is also a source of 

best at proposing new ideas that our customers may not 

satisfaction―especially in China, where our operations 

have noticed.

have grown to more than ¥200 billion.

Because our products are not finished goods, our 

Meanwhile, the Industrial Machinery Business, which 

initial contact with society comes through an 

was positioned as a driver of earnings growth, was 

intermediary in the form of machinery and equipment 

unfortunately affected by the economic cycle from the 

makers and other finished goods manufacturers. To 

second half of the final fiscal year of the Mid-Term 

create new finished goods, products and services, we 

Management Plan.

must consider how finished goods are being used by end 

In line with our objective of establishing corporate 

users and identify any unmet user needs, in addition to 

fundamentals appropriate for a company with net sales 

addressing the demands of our direct customers and 

of ¥1 trillion, we have seen a certain level of results from 

the needs of markets. On this basis, it is vital that we are 

our initiatives, including evolution of the global 

always aware of the need to create new products and 

management structure. However, other tasks remain 

services. While maintaining our current strengths, we 

ongoing, such as standardizing operations and creating 

aim to hone our abilities further while extending our 

a structure that is strongly resilient to economic swings.

reach to the end users that our customers serve in 

As we take the first step on our journey into the next 

order to better understand their expectations and 

century, NSK Vision 2026 outlines where we want to be 

needs. This will help us increase the scope and quality 

in 10 years. The concept of Setting the Future in Motion 

of the finished goods and services we provide. We will 

expressed in this vision does not imply changing a 

adopt an increasingly forward-looking and proactive 

specific business but rather expresses our intention to 

mindset as we move forward.

move away from a passive and reactive approach to a 

NSK’s Stakeholders and Value

NSK places emphasis on the stakeholders who represent the next generation and believes that

increasing value for its customers will ultimately lead to greater value for employees and shareholders.

NSK has identified six core stakeholders: customers, 

design value into our products and assure our 

suppliers, employees, shareholders and investors, local 

customers that we are addressing their requirements to 

communities and the next generation. Of these, the next 

the fullest. Most of our products are used for a long 

generation of stakeholders includes the children and 

period of time. Accordingly, after-sales services are 

students who represent our future, and to whom we 

integral to the value gained from using our products. In 

must pass on a bountiful environment and a stable 

the unlikely event of a problem occurring, we are ready 

society. What will NSK look like when today’s new 

to provide solutions based on a thorough investigation 

graduates reach their 40s and 50s? Although the 

and analysis of the root cause of the problem. The ability 

makeup of the company may have changed considerably 

to provide this high level of reassurance is highly valued 

by then, we hope to build NSK into a larger and better 

by our customers.

company than it is today.

We aim to delight our customers with the value we 

To do so, NSK needs to provide greater value to its 

provide, and from a broader perspective, enhance the 

stakeholders. As a manufacturer, NSK must first and 

value of the NSK brand. Doing so allows the managers 

foremost provide value to its customers―in other words, 

and employees at NSK who support our design, 

deliver happiness and satisfaction to our customers 

manufacturing and sales operations, to find meaning in 

through the products we make and the services we 

their work. The continuous expansion of this value will 

provide. In addition to the performance and functionality 

ultimately lead to greater value for NSK’s 

of the finished goods, we must clearly understand the 

shareholders.

requirements of our customers and design our products 

to deliver value accordingly. To this end, it is important to 

Global Business Development for Future Growth

Globalization is set to progress further at NSK.
The development and utilization of global managers will be a key to strengthening production 
worldwide and enhancing the capabilities of the Group’s human resources.

management. The globalization of NSK to date has 
centered on transplanting Japanese culture overseas. 
More recently, however, production at our overseas 
plants has been managed at sophisticated levels on a 
par with general best practices. One such plant is 
located in Changwon, South Korea. Although it may be 
partly due to the local culture, employees at the plant 
have a proactive, competitive mindset, constantly seek 
improvement, and are passionate about their work. 
Plants in other countries could learn much from 
excellent plants such as this, and we have therefore 
started to dispatch staff from these outstanding plants 
to our other overseas plants, such as those in India and 
Mexico, to provide guidance.

Steering systems are a core product of the 

Automotive Business. With the proliferation of electric 
power steering systems over the past 10 years, 
production at our plants overseas has also expanded. 
Growth in the global business has made it vital that we 
increase production outside Japan and collaborate 
globally. As overseas expansion in steering systems has 
been relatively recent, this has allowed us to increase 
efficiency through the standardization of equipment, 
processes and quality assurance systems.

We have produced bearings overseas for more than 
40 years, meaning that our plants are at different stages 
of modernization.  Our newest plants have the latest 
processes and equipment, but our plants built 40 years 
ago require investment to modernize and enhance their 
competitiveness. Although our overseas bearing plants 
started out with methodologies transferred from Japan, 
over many years of operations they have gradually 
localized their practices. We must reinforce the 
complementary relationships between our global plants 
and bring them up to a consistently high level of 
performance worldwide.

In addition to expanding business outside Japan, NSK 

also has further localized its operations. In order to 
raise the bar at our plants overseas and expanding 
operations, we must hire and train exceptional 
personnel. However, at some plants hiring outstanding 
personnel can prove a challenge due to the site location 
or regional characteristics. To further enhance group 
management, it is important to assign talented 
personnel to global management positions. Personnel 
reassignments and placements must take these points 

In the past, overseas operations at NSK were regarded 
as somewhat special, and the company’s overall 
financials and results were reported primarily on a 
non-consolidated basis. As the company is now 
managed and financial reports compiled on a 
consolidated basis, even the bonuses of employees 
working at plants in Japan are determined by global 
performance metrics. Moreover, our plants in Japan 
fulfill the role of mother plants to the plants located 
overseas. This essentially means that any issues that 
arise at overseas plants can be accurately and swiftly 
addressed with assistance from the mother plants in 
Japan. As such, our international business connections 
have strengthened to a point that would have been 
surprising in the past. Moreover, our sales team in 
Japan hear of customer needs for the same products 
and services in China or the United States, for example, 
during the course of their duties. In this sense, every 
aspect of our operations is becoming globalized.
However, we see room for improvement in 

decision-making transparency, methods and procedures 
in light of the global standards for these aspects of 

20

NSK REPORT 2016

NSK REPORT 2016

21

We take considerable pride in having achieved all of the 

substantial changes in economic conditions and the 

quantitative targets set out under the Fourth Mid-Term 

market environment driven by the appreciation of the 

Management Plan in the fiscal year ended March 31, 

Japanese yen. In contrast, the Company enjoyed 

2016, the final year of the plan. Despite coming close, 

relatively favorable currency and economic conditions 

the Company fell short of its objectives for the preceding 

during the Fourth Mid-Term Management Plan.

two management plans. Our performance during the 

Turning to specific measures, our success in 

period of the Second Mid-Term Management Plan was 

improving profitability in the Automotive Business was a 

affected by the financial crisis that followed the Global 

major positive result. Having confronted several 

Financial Crisis, while throughout the Third Mid-Term 

challenges that hindered our efforts in the past, I am 

Management Plan, our results were buffeted by 

confident that we have made a significant breakthrough. 

into consideration. Globalization of our personnel is one 

area in which we can improve further. We need 

managers and upper-level managers with the ability to 

function not only in their own country but around the 

world, bringing their advanced expertise to the 

marketing, development and design, production 

technology, production management and procurement 

divisions. At NSK, we refer to these employees as 

global management resources. We have identified key 

global posts throughout the company and evaluated 

and categorized individual abilities in databases for use 

in career development and training.

management. The globalization of NSK to date has 

centered on transplanting Japanese culture overseas. 

More recently, however, production at our overseas 

plants has been managed at sophisticated levels on a 

par with general best practices. One such plant is 

located in Changwon, South Korea. Although it may be 

partly due to the local culture, employees at the plant 

have a proactive, competitive mindset, constantly seek 

improvement, and are passionate about their work. 

Plants in other countries could learn much from 

excellent plants such as this, and we have therefore 

started to dispatch staff from these outstanding plants 

to our other overseas plants, such as those in India and 

Mexico, to provide guidance.

Steering systems are a core product of the 

Automotive Business. With the proliferation of electric 

power steering systems over the past 10 years, 

production at our plants overseas has also expanded. 

Growth in the global business has made it vital that we 

increase production outside Japan and collaborate 

globally. As overseas expansion in steering systems has 

been relatively recent, this has allowed us to increase 

efficiency through the standardization of equipment, 

processes and quality assurance systems.

40 years, meaning that our plants are at different stages 

of modernization.  Our newest plants have the latest 

processes and equipment, but our plants built 40 years 

ago require investment to modernize and enhance their 

competitiveness. Although our overseas bearing plants 

started out with methodologies transferred from Japan, 

over many years of operations they have gradually 

localized their practices. We must reinforce the 

complementary relationships between our global plants 

and bring them up to a consistently high level of 

In the past, overseas operations at NSK were regarded 

We have produced bearings overseas for more than 

as somewhat special, and the company’s overall 

financials and results were reported primarily on a 

non-consolidated basis. As the company is now 

managed and financial reports compiled on a 

consolidated basis, even the bonuses of employees 

working at plants in Japan are determined by global 

performance metrics. Moreover, our plants in Japan 

fulfill the role of mother plants to the plants located 

overseas. This essentially means that any issues that 

arise at overseas plants can be accurately and swiftly 

addressed with assistance from the mother plants in 

performance worldwide.

Japan. As such, our international business connections 

In addition to expanding business outside Japan, NSK 

have strengthened to a point that would have been 

surprising in the past. Moreover, our sales team in 

also has further localized its operations. In order to 

raise the bar at our plants overseas and expanding 

Japan hear of customer needs for the same products 

operations, we must hire and train exceptional 

and services in China or the United States, for example, 

personnel. However, at some plants hiring outstanding 

during the course of their duties. In this sense, every 

personnel can prove a challenge due to the site location 

aspect of our operations is becoming globalized.

However, we see room for improvement in 

or regional characteristics. To further enhance group 

management, it is important to assign talented 

decision-making transparency, methods and procedures 

personnel to global management positions. Personnel 

in light of the global standards for these aspects of 

reassignments and placements must take these points 

Creating Corporate Value (Growth Strategies)
To Our Stakeholders

into consideration. Globalization of our personnel is one 
area in which we can improve further. We need 
managers and upper-level managers with the ability to 
function not only in their own country but around the 
world, bringing their advanced expertise to the 
marketing, development and design, production 
technology, production management and procurement 
divisions. At NSK, we refer to these employees as 
global management resources. We have identified key 
global posts throughout the company and evaluated 
and categorized individual abilities in databases for use 
in career development and training.

Fifth Mid-Term Management Plan, Key Perspectives and Points for Future Management

Our Fifth Mid-Term Management Plan, positioned as our first step for the next 100 years, focuses on two 
topics: operational excellence and innovate and challenge. To realize sustained growth, we aim to 
strengthen our core businesses and create new technologies, products and businesses.
It is important that we take action now to plant the seeds of our major new businesses 10 years from today.

NSK has identified two key future management themes in 
the Fifth Mid-Term Management Plan that it unveiled in May: 
operational excellence and innovate and challenge. The three 
years of the Fifth Mid-Term Management Plan are positioned 
as a period in which we will embark on a new chapter in 
evolution towards next 100 years. We will seek greater 
efficiency across all functions of our current businesses, 
including production, sales, technology and administration, 
to achieve stronger corporate fundamentals. We then plan to 
use the proceeds of this increased profitability to invest in the 
creation of products and businesses for the next generation. 
Operational excellence means that we will increase the 
competitiveness of our core businesses. NSK has yet to 
establish corporate fundamentals appropriate for a company 
with net sales of ￥1 trillion―an objective of the Fourth 
Mid-Term Management Plan. NSK aims to create a strong 
structure able to endure changes in the economic 
environment while enhancing profitability. Globally, we must 
solidify the foundation of our operations, including the 
administrative divisions.

The other key theme, innovate and challenge, means 
that we will ensure profitability and allocate resources for 
forward-looking investments. To attain sustained growth, 
NSK is pursuing new technologies, products and businesses. 
Although we do not expect all new products and businesses 
to become major sales drivers over the next three years, now 
is the time to begin sowing the seeds for businesses that 
have the potential to develop into new pillars a decade ahead. 
We must maintain a sense of urgency and allocate resources 
to new products and businesses as appropriate.

Automotive technology has evolved rapidly and 

dramatically amid the diversification of automobile power 
sources and the advent of autonomous driving technology, 
while centering on the keywords of the environment, safety 

and IT. In the industrial machinery field, manufacturing has 
evolved to incorporate information technology, such as the 
“Internet of Things” (IoT) and smart factories, while needs 
related to infrastructure, energy, food, water and air have 
become increasingly important. NSK aims to hone its ability 
to contribute to these changes by fully leveraging its core 
technologies and its relationship with its customer base. It is 
vital that we quickly identify ideas for business seeds and 
nurture their growth.

Electric power steering systems have grown into a major 

sales driver for NSK over many long years of business 
development. It is not easy to create and nurture new 
products and businesses with sales in excess of ¥100 billion, 
a level that approaches the scale of the electric power 
steering business. We must first aim for ¥10 billion in sales. 
Although some businesses may fail to achieve that scale, 
if we plant many seeds of innovation now, a few will 
inevitably grow into viable businesses. However, if we 
limit our scope too narrowly from the outset by focusing 
overly on business potential, positive outcomes will be 
elusive. It is important that we give new ideas a try 
without fear of failure, starting with small steps. 
Approximately two-thirds of our employees are based outside 
Japan. These employees come from diverse backgrounds, 
and many have experience at other companies. Taking NSK’s 
100th anniversary as an opportunity, we hope to encourage 
our employees to identify themselves more with NSK and our 
brand, bringing the Group closely together as a unified 
whole. Under this common vision, we aim to evolve into a 
company that surprises and delights its customers by taking 
a more proactive and optimistic stance in order to Set the 
Future in Motion, rather than continuing with the passive and 
defensive mindset of the past.

What ESG Means at NSK

NSK aims to advance corporate governance while contributing to the environment through its 

mainstay activities. At the same time, the Company places the utmost importance on its 

connections to local communities and society as a whole.

Through this integrated report, NSK endeavors to disseminate information to all stakeholders.

I believe that the recent focus on the environment, society, 

obligation to explain the nature of our businesses, the 

and governance (ESG) by management at listed companies 

value they create, profit forecasts, business plans and our 

is important. Regarding corporate governance at NSK, the 

strategies for creating further value. IR activities 

company first appointed one independent director in the 

traditionally tend to focus on interactions with institutional 

fiscal year ended March 31, 2000, and established a 

investors and analysts. Although the annual general 

voluntary Compensation Committee. NSK subsequently 

meeting of shareholders is our main opportunity to reach 

adopted a company with committees structure and is now 

out to individual shareholders, this does not provide 

based on a company with three committees structure. 

sufficient time to engage with each individual shareholder. 

NSK also increased its number of independent directors to 

We will endeavor to disseminate information about NSK to 

four in June 2005. NSK has endeavored to improve 

all shareholders by expanding the scope of information 

external oversight, ensure transparency and better fulfill 

disclosed on our website and better managing the general 

its explanatory obligations. We believe this has resulted in 

meeting of shareholders.

a more sophisticated level of decision making. Corporate 

It is also essential that we consider our relationship with 

governance structures are often evaluated solely by their 

other stakeholders, such as our employees and local 

type. However, we believe greater importance should be 

communities. NSK contributes to the environment through 

placed on how corporate governance at NSK actually 

its core businesses in bearings and machine components 

functions in practice.

by reducing energy loss. To fulfill our responsibilities to 

At first, the responsibilities, positioning and reasons for  

society as a whole, we carefully consider our relationship 

including independent directors on our Board were not 

with local communities. Led primarily by our plants and 

fully understood in-house. However, we believe our 

business sites in each region, we have forged close 

independent directors have gradually had a positive 

relationships with the communities around us. One 

influence on our approach to management and how 

example is Japan’s Fujisawa Plant, which has worked to 

matters are decided internally, due to the supervision, 

maintain a positive relationship with the local community 

guidance, criticism, and differing viewpoints they provide. 

throughout its almost 80 years of operation.

In this sense, we believe the quality of management at 

Even in operations that have a long history, we take care 

NSK has been fortified by the presence of independent 

to mitigate their impact on local communities, especially 

directors.

those where homes have proliferated in surrounding 

Currently, the Board of Directors broadly delegates 

neighborhoods. We constantly monitor the level of noise 

authority for business execution and deliberates business 

and plan the delivery and shipment of goods to 

strategies and issues, such as major capital expenditure 

accommodate local communities. NSK has established 

proposals. On occasion, however, the Board of Directors 

ongoing initiatives to reduce CO2 emissions and waste 

discusses projects that are relatively detailed compared to 

from its business activities. We also believe it is important 

the scale of the company. Looking ahead, we aim to have 

to interact and forge connections with local communities 

the Board of Directors focus its deliberations more on the 

wherever we operate around the world in order to deepen 

bigger picture, including longer-term management 

mutual understanding and awareness. As an example, at 

issues, strategies and company-wide direction. We intend 

our plant in Thailand, all employees travel together by bus 

to further invigorate the Board of Directors by shaping it 

once a year to order to volunteer in initiatives to protect 

into an organization for lively deliberations based on 

mangrove trees.

individual opinions and judgments, rather than simply an 

Through this integrated report, we aim to convey to a 

assembly of non-independent directors representing each 

wide readership the value created by NSK’s business 

business division.

activities, as well as our ESG and social responsibility 

Regarding the environment (E) and society (S), NSK 

initiatives. Although our initial publication of this integrated 

should consider both with respect to its relationship with 

report has room for improvement, we hope that the 

the six types of stakeholders. NSK is a listed company, and 

financial and non-financial information disclosed in this 

its shareholders are naturally an important stakeholder. As 

report will further the understanding of NSK among all 

the value created by a company is essentially the value 

stakeholders. We appreciate your continued support as 

generated by its businesses, it is vital that we disclose 

we move forward.

business conditions to shareholders. We believe it is our 

22

NSK REPORT 2016

NSK REPORT 2016

23

management. The globalization of NSK to date has 

centered on transplanting Japanese culture overseas. 

More recently, however, production at our overseas 

plants has been managed at sophisticated levels on a 

par with general best practices. One such plant is 

located in Changwon, South Korea. Although it may be 

partly due to the local culture, employees at the plant 

have a proactive, competitive mindset, constantly seek 

improvement, and are passionate about their work. 

Plants in other countries could learn much from 

excellent plants such as this, and we have therefore 

started to dispatch staff from these outstanding plants 

to our other overseas plants, such as those in India and 

Mexico, to provide guidance.

Steering systems are a core product of the 

Automotive Business. With the proliferation of electric 

power steering systems over the past 10 years, 

production at our plants overseas has also expanded. 

Growth in the global business has made it vital that we 

increase production outside Japan and collaborate 

globally. As overseas expansion in steering systems has 

been relatively recent, this has allowed us to increase 

efficiency through the standardization of equipment, 

processes and quality assurance systems.

40 years, meaning that our plants are at different stages 

of modernization.  Our newest plants have the latest 

processes and equipment, but our plants built 40 years 

ago require investment to modernize and enhance their 

competitiveness. Although our overseas bearing plants 

started out with methodologies transferred from Japan, 

over many years of operations they have gradually 

localized their practices. We must reinforce the 

complementary relationships between our global plants 

and bring them up to a consistently high level of 

In the past, overseas operations at NSK were regarded 

We have produced bearings overseas for more than 

as somewhat special, and the company’s overall 

financials and results were reported primarily on a 

non-consolidated basis. As the company is now 

managed and financial reports compiled on a 

consolidated basis, even the bonuses of employees 

working at plants in Japan are determined by global 

performance metrics. Moreover, our plants in Japan 

fulfill the role of mother plants to the plants located 

overseas. This essentially means that any issues that 

arise at overseas plants can be accurately and swiftly 

addressed with assistance from the mother plants in 

performance worldwide.

Japan. As such, our international business connections 

In addition to expanding business outside Japan, NSK 

have strengthened to a point that would have been 

surprising in the past. Moreover, our sales team in 

also has further localized its operations. In order to 

raise the bar at our plants overseas and expanding 

Japan hear of customer needs for the same products 

operations, we must hire and train exceptional 

and services in China or the United States, for example, 

personnel. However, at some plants hiring outstanding 

during the course of their duties. In this sense, every 

personnel can prove a challenge due to the site location 

aspect of our operations is becoming globalized.

However, we see room for improvement in 

or regional characteristics. To further enhance group 

management, it is important to assign talented 

decision-making transparency, methods and procedures 

personnel to global management positions. Personnel 

in light of the global standards for these aspects of 

reassignments and placements must take these points 

Creating Corporate Value (Growth Strategies)

To Our Stakeholders

into consideration. Globalization of our personnel is one 

area in which we can improve further. We need 

managers and upper-level managers with the ability to 

function not only in their own country but around the 

world, bringing their advanced expertise to the 

marketing, development and design, production 

technology, production management and procurement 

divisions. At NSK, we refer to these employees as 

global management resources. We have identified key 

global posts throughout the company and evaluated 

and categorized individual abilities in databases for use 

in career development and training.

Fifth Mid-Term Management Plan, Key Perspectives and Points for Future Management

Our Fifth Mid-Term Management Plan, positioned as our first step for the next 100 years, focuses on two 

topics: operational excellence and innovate and challenge. To realize sustained growth, we aim to 

strengthen our core businesses and create new technologies, products and businesses.

It is important that we take action now to plant the seeds of our major new businesses 10 years from today.

NSK has identified two key future management themes in 

and IT. In the industrial machinery field, manufacturing has 

the Fifth Mid-Term Management Plan that it unveiled in May: 

evolved to incorporate information technology, such as the 

operational excellence and innovate and challenge. The three 

“Internet of Things” (IoT) and smart factories, while needs 

years of the Fifth Mid-Term Management Plan are positioned 

related to infrastructure, energy, food, water and air have 

as a period in which we will embark on a new chapter in 

become increasingly important. NSK aims to hone its ability 

evolution towards next 100 years. We will seek greater 

to contribute to these changes by fully leveraging its core 

efficiency across all functions of our current businesses, 

technologies and its relationship with its customer base. It is 

including production, sales, technology and administration, 

vital that we quickly identify ideas for business seeds and 

to achieve stronger corporate fundamentals. We then plan to 

nurture their growth.

use the proceeds of this increased profitability to invest in the 

Electric power steering systems have grown into a major 

creation of products and businesses for the next generation. 

sales driver for NSK over many long years of business 

Operational excellence means that we will increase the 

development. It is not easy to create and nurture new 

competitiveness of our core businesses. NSK has yet to 

products and businesses with sales in excess of ¥100 billion, 

establish corporate fundamentals appropriate for a company 

a level that approaches the scale of the electric power 

with net sales of ￥1 trillion―an objective of the Fourth 

steering business. We must first aim for ¥10 billion in sales. 

Mid-Term Management Plan. NSK aims to create a strong 

Although some businesses may fail to achieve that scale, 

structure able to endure changes in the economic 

if we plant many seeds of innovation now, a few will 

environment while enhancing profitability. Globally, we must 

inevitably grow into viable businesses. However, if we 

solidify the foundation of our operations, including the 

limit our scope too narrowly from the outset by focusing 

administrative divisions.

overly on business potential, positive outcomes will be 

The other key theme, innovate and challenge, means 

elusive. It is important that we give new ideas a try 

that we will ensure profitability and allocate resources for 

without fear of failure, starting with small steps. 

forward-looking investments. To attain sustained growth, 

NSK is pursuing new technologies, products and businesses. 

Although we do not expect all new products and businesses 

to become major sales drivers over the next three years, now 

is the time to begin sowing the seeds for businesses that 

have the potential to develop into new pillars a decade ahead. 

We must maintain a sense of urgency and allocate resources 

to new products and businesses as appropriate.

Automotive technology has evolved rapidly and 

dramatically amid the diversification of automobile power 

sources and the advent of autonomous driving technology, 

while centering on the keywords of the environment, safety 

Approximately two-thirds of our employees are based outside 

Japan. These employees come from diverse backgrounds, 

and many have experience at other companies. Taking NSK’s 

100th anniversary as an opportunity, we hope to encourage 

our employees to identify themselves more with NSK and our 

brand, bringing the Group closely together as a unified 

whole. Under this common vision, we aim to evolve into a 

company that surprises and delights its customers by taking 

a more proactive and optimistic stance in order to Set the 

Future in Motion, rather than continuing with the passive and 

defensive mindset of the past.

What ESG Means at NSK

NSK aims to advance corporate governance while contributing to the environment through its 
mainstay activities. At the same time, the Company places the utmost importance on its 
connections to local communities and society as a whole.
Through this integrated report, NSK endeavors to disseminate information to all stakeholders.

I believe that the recent focus on the environment, society, 
and governance (ESG) by management at listed companies 
is important. Regarding corporate governance at NSK, the 
company first appointed one independent director in the 
fiscal year ended March 31, 2000, and established a 
voluntary Compensation Committee. NSK subsequently 
adopted a company with committees structure and is now 
based on a company with three committees structure. 
NSK also increased its number of independent directors to 
four in June 2005. NSK has endeavored to improve 
external oversight, ensure transparency and better fulfill 
its explanatory obligations. We believe this has resulted in 
a more sophisticated level of decision making. Corporate 
governance structures are often evaluated solely by their 
type. However, we believe greater importance should be 
placed on how corporate governance at NSK actually 
functions in practice.

At first, the responsibilities, positioning and reasons for  

including independent directors on our Board were not 
fully understood in-house. However, we believe our 
independent directors have gradually had a positive 
influence on our approach to management and how 
matters are decided internally, due to the supervision, 
guidance, criticism, and differing viewpoints they provide. 
In this sense, we believe the quality of management at 
NSK has been fortified by the presence of independent 
directors.

Currently, the Board of Directors broadly delegates 
authority for business execution and deliberates business 
strategies and issues, such as major capital expenditure 
proposals. On occasion, however, the Board of Directors 
discusses projects that are relatively detailed compared to 
the scale of the company. Looking ahead, we aim to have 
the Board of Directors focus its deliberations more on the 
bigger picture, including longer-term management 
issues, strategies and company-wide direction. We intend 
to further invigorate the Board of Directors by shaping it 
into an organization for lively deliberations based on 
individual opinions and judgments, rather than simply an 
assembly of non-independent directors representing each 
business division.

Regarding the environment (E) and society (S), NSK 
should consider both with respect to its relationship with 
the six types of stakeholders. NSK is a listed company, and 
its shareholders are naturally an important stakeholder. As 
the value created by a company is essentially the value 
generated by its businesses, it is vital that we disclose 
business conditions to shareholders. We believe it is our 

obligation to explain the nature of our businesses, the 
value they create, profit forecasts, business plans and our 
strategies for creating further value. IR activities 
traditionally tend to focus on interactions with institutional 
investors and analysts. Although the annual general 
meeting of shareholders is our main opportunity to reach 
out to individual shareholders, this does not provide 
sufficient time to engage with each individual shareholder. 
We will endeavor to disseminate information about NSK to 
all shareholders by expanding the scope of information 
disclosed on our website and better managing the general 
meeting of shareholders.

It is also essential that we consider our relationship with 

other stakeholders, such as our employees and local 
communities. NSK contributes to the environment through 
its core businesses in bearings and machine components 
by reducing energy loss. To fulfill our responsibilities to 
society as a whole, we carefully consider our relationship 
with local communities. Led primarily by our plants and 
business sites in each region, we have forged close 
relationships with the communities around us. One 
example is Japan’s Fujisawa Plant, which has worked to 
maintain a positive relationship with the local community 
throughout its almost 80 years of operation.

Even in operations that have a long history, we take care 

to mitigate their impact on local communities, especially 
those where homes have proliferated in surrounding 
neighborhoods. We constantly monitor the level of noise 
and plan the delivery and shipment of goods to 
accommodate local communities. NSK has established 
ongoing initiatives to reduce CO2 emissions and waste 
from its business activities. We also believe it is important 
to interact and forge connections with local communities 
wherever we operate around the world in order to deepen 
mutual understanding and awareness. As an example, at 
our plant in Thailand, all employees travel together by bus 
once a year to order to volunteer in initiatives to protect 
mangrove trees.

Through this integrated report, we aim to convey to a 

wide readership the value created by NSK’s business 
activities, as well as our ESG and social responsibility 
initiatives. Although our initial publication of this integrated 
report has room for improvement, we hope that the 
financial and non-financial information disclosed in this 
report will further the understanding of NSK among all 
stakeholders. We appreciate your continued support as 
we move forward.

22

NSK REPORT 2016

NSK REPORT 2016

23

Creating Corporate Value (Growth Strategies)
Looking Back on Past Mid-Term Management Plans

Here we take a retrospective look at the past 10 years of mid-term management plans, from the second to the fourth.
(Note: Mid-Term Management Plan is abbreviated as MTP)

The Second MTP
Year to March 31, 2007(cid:114)Year to March 31, 2009

The Third MTP
Year to March 31, 2010(cid:114)Year to March 31, 2013

The Fourth MTP
Year to March 31, 2014(cid:114)Year to March 31, 2016

To become No. 1 
in total quality

Establish foundation for NEXT10 
(where NSK should be at 100th 
anniversary of establishment in 2016)
(cid:724)  Transition to growth strategy
(cid:724)  Improvement of profitability

Responding to paradigm shifts

Reorganizing business foundation
toward net sales of ¥1 trillion

(cid:724)  Period to establish and consolidate 

corporate fundamentals appropriate 
for a company with net sales of 
(cid:711)1 trillion
(cid:724)  Continue measures to become No. 1 

in total quality

Establishing corporate 
fundamentals appropriate 
for a company 
with net sales of ¥1 trillion
(cid:724)  Establish corporate fundamentals 

appropriate for a company with net sales 
of ¥1 trillion in 2016, the100th 
anniversary of NSK's foundation
(cid:724)  Implement measures to achieve 

mid-term targets

(cid:724)  Continue to implement basic strategies 

(focus on profitability, growth in emerging 
countries, global management)

Common Group Strategies

Our Three Core Management Strategies

Business Strategies

(cid:7555) Strengthen manufacturing capability
(cid:7556) Strengthen product development capability
(cid:7557) Strengthen overseas profitability
(cid:7558) Strengthen global management capability

Positioning of Each Business

Industrial machinery bearings: 

Profit growth driver
Automotive products: 

Stable profit foundation

Precision machinery and parts: 

Steady contribution to total profits

Foundation to Underpin Measures

Global hitozukuri (human resource 
development) supporting growth
Production innovation through thorough 
monozukuri awareness
Rebuilding of global IT systems

Until the second year of the Second MTP (the 
year ended March 2008), the Company steadily 
expanded its business due to factors that 
included favorable global economic conditions 
and the added impetus provided by high 
demand for infrastructure and 
resource-related business in emerging 
markets, as well as the weak yen. As a result, 
the Company achieved record-high sales, as 
well as operating and ordinary income, for four 
consecutive fiscal years.

However, Lehman Brothers filed for 

bankruptcy in the autumn of the third and final 
fiscal year, fiscal 2008, and the environments of 
all businesses and markets suffered significant 
deterioration due to the global economic crisis. 
As emergency revenue measures, the 
Company thus made adjustments to its 
production levels and reduced fixed costs, but 
business performance in the final year of the 
Second MTP (the year ended March 2009) fell 
short of targets.

(cid:7555) Enhancement of business-based 

management (sales & marketing, production 
and technological divisions brought under 
business headquarters management)

(cid:7556) Growth strategies
(cid:7557) Profitability improvement

Specific Measures

A. Enhancement of business-based management
Autonomous management by integrated 
business management and the clarification of 
divisional responsibilities
B. Growth strategies
(cid:7555) Increase presence in emerging markets
(cid:7556) Expand environmental, infrastructure and 

resource businesses

(cid:7557) Respond to technological innovation
C. Profitability improvement
(cid:7555) Proactive sales strategy (strengthen 
proposal-based sales capabilities)
(cid:7556) Reorganize global production sites
(cid:7557) Accelerate new product development

Amid the severe business conditions that followed 
the collapse of Lehman Brothers, the Company 
responded to the paradigm shift typified by the 
keywords (cid:672)emerging markets(cid:673) and (cid:672)technological 
innovation,(cid:673) worked on reorganizing its business 
structure toward net sales of (cid:711)1 trillion and 
achieved some measure of success. 
Nevertheless, the upheaval in the business 
environment, including a sharp appreciation of 
the yen and fluctuations in global demand, 
continued to intensify, and the numerical targets 
of the final year of the Third MTP (the year ended 
March 2013) were not achieved.

Furthermore, having been found guilty of 
violating the Antimonopoly Law in a 2013 case 
involving a bearing product cartel, the Company 
received a cease-and-desist order and was 
ordered to pay financial penalties. As a priority 
and urgent task, the Company undertook 
measures to strengthen its compliance system 
toward the early restoration of trust and to 
prevent any reoccurrence.

(cid:724)  Strengthened the industrial machinery 

(cid:724)  Strengthened its business foundation in China 

bearings business (improved roller bearing 
supply capacity, expanded aftermarket sales 
networks)

(established a production system for a full 
product lineup, built an autonomous 
management system within China)

(cid:724)  Expanded the global business and improved 

(cid:724)  Exceeded the MTP target for global expansion 

revenues in the automotive products business

of the EPS business

(cid:724)  Improved overseas profitability, primarily in 

(cid:724)  Enhanced profitability following the 

Europe and Asia

(cid:724)  Expanded business structures in China and 

India

(cid:724)  Rapid responses to changes in the demand 

environment (reflect on effects of the Lehman 
Brothers collapse, particularly in Japan)

(cid:724)  Quality improvements in the Precision 

Machinery and Parts Business are incomplete
(cid:724)  Even though measures to boost earnings have 

reorganization of the Precision Machinery and 
Parts Business

(cid:724)   Advanced local production and local 

procurement

(cid:724)  Declines in profitability levels due to the extremely 
high value of the yen and inadequate responses to 
changes in the business environment, including 
extreme fluctuations in demand

(cid:724)  Decrease in the Industrial Machinery Business 

sales ratio

been carried out, including partial plant 
shutdowns in the U.S. business, further 
improvement in profitability is needed

(cid:724)  Strengthening of the compliance system to 
restore trust and prevent any reoccurrence 
following the cartel incident

(cid:724) Growth with focus on profitability
(cid:7555) Growth in emerging countries
(cid:7556) Enhancement of customer and sector 

strategies

(cid:7557) Production and technological innovation 

capabilities

(cid:7558) Strategic alliances

Corporate Foundation

(cid:724) Develop management capability to handle 

¥1 trillion in sales volume

(cid:7555) Enhancement of corporate governance and 

compliance

(cid:7556) Reform of business structure
(cid:7557) Advancement of global management

Basics of MTP (Priority Issues)

Safety, quality and compliance

Against a backdrop of improvements in the 
profitability of the Automotive Business and 
assisted by an underlying weakness in yen 
exchange rates, the Company achieved all its 
numerical targets, including those for net 
sales and profit, a year ahead of schedule in 
the second year of the Fourth MTP. The 
Company also improved on the targets in the 
MTP’s final fiscal year. Significant growth was 
recorded in the Chinese business and in the 
EPS business in particular.

With regard to profitability, the Company 

achieved an operating income margin of 
10.0% in the fiscal year ended March 2015 and 
maintained a high level of 9.7% in the final 
fiscal year. In contrast, net sales and 
profitability in the Industrial Machinery 
Business were on a declining trend, buffeted 
by the slowdown in global economic growth, 
including the deceleration in China.

(cid:724)  Achieved all the MTP numerical targets
(cid:724)  Improved profitability on a consolidated basis
(cid:724)  Expanded business in China, increased EPS 

sales

(cid:724)  Made progress with the global management 

structure

(cid:724)  Strengthened and enhanced compliance

(cid:724)  Continue to build foundation as a company 

with (cid:711)1 trillion in net sales

(cid:724)  Establish profitability not greatly affected by 

business cycles or fluctuations in the 
amounts of raw materials or exchange rates
(cid:724)  Promote new products and development in 

new areas

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(Note: To show 11 years of trends, the actual figures for both the year ended March 2015 and the year ended March 2016 are to JP GAAP)

Business Trends

Net Sales

(¥ Billions)

1,000

772.0

740.0

717.2

710.4

733.2

780.0

732.8

628.5

647.6

587.6

■ Actual　■ Target

Operating Income

974.9

975.3

940.0

871.7

(¥ Billions)

100

■ Actual　■ Target

97.3

94.7

86.0

74.0

69.3

62.4

42.6

66.0

68.0

43.5

44.4

32.4

22.1

11.3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Operating Income Margin

(cid:660) Actual　　 Target

Ordinary Income

((cid:715))

10.0

10.0

8.7

9.0

10.0

9.7

9.1

8.5

7.8

(¥ Billions)

100

■ Actual　■ Target

91.0

94.0

80.0

6.8

6.1

6.1

4.4

3.4

1.9

71.5

64.9

57.6

38.9

66.8

62.0

42.0

38.6

30.3

17.0

7.6

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Net Income

(¥ Billions)

■ Actual　■ Target

(cid:660) Actual　　 Target

42.6

44.5

34.9

25.6

26.1

28.5

37.0

31.2

15.7

4.6

4.8

67.2

62.0

52.0

16.1

15.0

14.0

12.1

15.3

14.9

13.0

10.3

10.6

14.0

5.2

9.2

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

06/3

07/3

08/3

11/3

12/3

13/3

14/3

15/3

16/3

1.8

09/3

2.0

10/3

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Net D/E Ratio

(Times)

(cid:660) Actual　　 Target

Movements in Exchange Rates ((cid:711)/US$) ((cid:711)/Euro)

(cid:660) Actual ((cid:711)/US$)

(cid:660) Actual ((cid:711)/Euro)

　 Assumed

0.73

0.69

0.73

0.56

0.60

0.58

0.85

0.40

0.51

0.50

0.41

0.31

0.40

0.23

162.22

150.35

137.39

110.37

116.93

114.55

130.89

144.47

136.00 

100.74

108.00

112.92

109.40

120.00

92.83

85.63

79.02

83.10

134.37

138.77

132.58

120.14

107.14

90.00

100.24

120.00

109.93

90.00

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

Period of 

Second MTP

Period of 

Third MTP

Period of 

Fourth MTP

80

60

40

20

0

80

60

40

20

0

ROE

((cid:715))

20.0

15.0

10.0

5.0

0

150

100

50

0

(Yen)

200

800

600

400

200

0

8.0

6.0

4.0

2.0

0

100

80

60

40

20

0

1.0

0.8

0.6

0.4

0.2

0

24

NSK REPORT 2016

NSK REPORT 2016

25

 
 
 
 
 
 
Creating Corporate Value (Growth Strategies)

Looking Back on Past Mid-Term Management Plans

The Second MTP

The Third MTP

The Fourth MTP

Year to March 31, 2007(cid:114)Year to March 31, 2009

Year to March 31, 2010(cid:114)Year to March 31, 2013

Year to March 31, 2014(cid:114)Year to March 31, 2016

To become No. 1 

in total quality

Responding to paradigm shifts

Reorganizing business foundation

toward net sales of ¥1 trillion

Establish foundation for NEXT10 

(where NSK should be at 100th 

(cid:724)  Period to establish and consolidate 

corporate fundamentals appropriate 

anniversary of establishment in 2016)

for a company with net sales of 

(cid:724)  Transition to growth strategy

(cid:724)  Improvement of profitability

(cid:711)1 trillion

in total quality

(cid:724)  Continue measures to become No. 1 

Establishing corporate 

fundamentals appropriate 

for a company 

with net sales of ¥1 trillion

(cid:724)  Establish corporate fundamentals 

appropriate for a company with net sales 

of ¥1 trillion in 2016, the100th 

anniversary of NSK's foundation

(cid:724)  Implement measures to achieve 

mid-term targets

(cid:724)  Continue to implement basic strategies 

(focus on profitability, growth in emerging 

countries, global management)

Common Group Strategies

Our Three Core Management Strategies

Business Strategies

(cid:7555) Strengthen manufacturing capability

(cid:7556) Strengthen product development capability

(cid:7557) Strengthen overseas profitability

(cid:7558) Strengthen global management capability

(cid:7555) Enhancement of business-based 

management (sales & marketing, production 

and technological divisions brought under 

business headquarters management)

Positioning of Each Business

Industrial machinery bearings: 

Profit growth driver

Automotive products: 

Stable profit foundation

Precision machinery and parts: 

Steady contribution to total profits

Foundation to Underpin Measures

Global hitozukuri (human resource 

development) supporting growth

Production innovation through thorough 

monozukuri awareness

Rebuilding of global IT systems

(cid:7556) Growth strategies

(cid:7557) Profitability improvement

Specific Measures

A. Enhancement of business-based management

Autonomous management by integrated 

business management and the clarification of 

divisional responsibilities

B. Growth strategies

resource businesses

(cid:7557) Respond to technological innovation

C. Profitability improvement

(cid:7555) Proactive sales strategy (strengthen 

proposal-based sales capabilities)

(cid:7556) Reorganize global production sites

(cid:7557) Accelerate new product development

(cid:7555) Increase presence in emerging markets

(cid:7556) Expand environmental, infrastructure and 

compliance

(cid:724) Growth with focus on profitability

(cid:7555) Growth in emerging countries

(cid:7556) Enhancement of customer and sector 

strategies

(cid:7557) Production and technological innovation 

capabilities

(cid:7558) Strategic alliances

Corporate Foundation

(cid:724) Develop management capability to handle 

¥1 trillion in sales volume

(cid:7555) Enhancement of corporate governance and 

(cid:7556) Reform of business structure

(cid:7557) Advancement of global management

Basics of MTP (Priority Issues)

Safety, quality and compliance

Until the second year of the Second MTP (the 

Amid the severe business conditions that followed 

Against a backdrop of improvements in the 

year ended March 2008), the Company steadily 

the collapse of Lehman Brothers, the Company 

profitability of the Automotive Business and 

expanded its business due to factors that 

responded to the paradigm shift typified by the 

assisted by an underlying weakness in yen 

included favorable global economic conditions 

keywords (cid:672)emerging markets(cid:673) and (cid:672)technological 

exchange rates, the Company achieved all its 

and the added impetus provided by high 

innovation,(cid:673) worked on reorganizing its business 

numerical targets, including those for net 

demand for infrastructure and 

resource-related business in emerging 

structure toward net sales of (cid:711)1 trillion and 

achieved some measure of success. 

markets, as well as the weak yen. As a result, 

Nevertheless, the upheaval in the business 

the Company achieved record-high sales, as 

environment, including a sharp appreciation of 

well as operating and ordinary income, for four 

the yen and fluctuations in global demand, 

sales and profit, a year ahead of schedule in 

the second year of the Fourth MTP. The 

Company also improved on the targets in the 

MTP’s final fiscal year. Significant growth was 

recorded in the Chinese business and in the 

consecutive fiscal years.

continued to intensify, and the numerical targets 

EPS business in particular.

However, Lehman Brothers filed for 

of the final year of the Third MTP (the year ended 

With regard to profitability, the Company 

bankruptcy in the autumn of the third and final 

March 2013) were not achieved.

achieved an operating income margin of 

fiscal year, fiscal 2008, and the environments of 

Furthermore, having been found guilty of 

10.0% in the fiscal year ended March 2015 and 

all businesses and markets suffered significant 

violating the Antimonopoly Law in a 2013 case 

maintained a high level of 9.7% in the final 

deterioration due to the global economic crisis. 

involving a bearing product cartel, the Company 

fiscal year. In contrast, net sales and 

As emergency revenue measures, the 

Company thus made adjustments to its 

received a cease-and-desist order and was 

profitability in the Industrial Machinery 

ordered to pay financial penalties. As a priority 

Business were on a declining trend, buffeted 

production levels and reduced fixed costs, but 

and urgent task, the Company undertook 

by the slowdown in global economic growth, 

business performance in the final year of the 

measures to strengthen its compliance system 

including the deceleration in China.

Second MTP (the year ended March 2009) fell 

toward the early restoration of trust and to 

short of targets.

prevent any reoccurrence.

(cid:724)  Strengthened the industrial machinery 

(cid:724)  Strengthened its business foundation in China 

bearings business (improved roller bearing 

supply capacity, expanded aftermarket sales 

networks)

(established a production system for a full 

product lineup, built an autonomous 

management system within China)

(cid:724)  Expanded the global business and improved 

(cid:724)  Exceeded the MTP target for global expansion 

revenues in the automotive products business

of the EPS business

(cid:724)  Improved overseas profitability, primarily in 

(cid:724)  Enhanced profitability following the 

(cid:724)  Achieved all the MTP numerical targets

(cid:724)  Improved profitability on a consolidated basis

(cid:724)  Expanded business in China, increased EPS 

(cid:724)  Made progress with the global management 

sales

structure

reorganization of the Precision Machinery and 

(cid:724)  Strengthened and enhanced compliance

(cid:724)  Expanded business structures in China and 

Parts Business

Europe and Asia

India

(cid:724)   Advanced local production and local 

procurement

(cid:724)  Rapid responses to changes in the demand 

(cid:724)  Declines in profitability levels due to the extremely 

(cid:724)  Continue to build foundation as a company 

environment (reflect on effects of the Lehman 

high value of the yen and inadequate responses to 

with (cid:711)1 trillion in net sales

Brothers collapse, particularly in Japan)

(cid:724)  Quality improvements in the Precision 

changes in the business environment, including 

extreme fluctuations in demand

Machinery and Parts Business are incomplete

(cid:724)  Decrease in the Industrial Machinery Business 

(cid:724)  Even though measures to boost earnings have 

sales ratio

been carried out, including partial plant 

shutdowns in the U.S. business, further 

improvement in profitability is needed

(cid:724)  Strengthening of the compliance system to 

restore trust and prevent any reoccurrence 

following the cartel incident

(cid:724)  Establish profitability not greatly affected by 

business cycles or fluctuations in the 

amounts of raw materials or exchange rates

(cid:724)  Promote new products and development in 

new areas

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Here we take a retrospective look at the past 10 years of mid-term management plans, from the second to the fourth.

(Note: Mid-Term Management Plan is abbreviated as MTP)

Business Trends
(Note: To show 11 years of trends, the actual figures for both the year ended March 2015 and the year ended March 2016 are to JP GAAP)

Net Sales
(¥ Billions)
1,000

■ Actual　■ Target

974.9

975.3

940.0

871.7

800

600

400

200

0

772.0

740.0

717.2

628.5

647.6

587.6

710.4

733.2

780.0

732.8

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Operating Income
(¥ Billions)

■ Actual　■ Target

97.3

94.7

86.0

74.0

69.3

62.4

42.6

66.0

68.0

43.5

44.4

32.4

22.1

11.3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Operating Income Margin
((cid:715))
10.0

10.0

8.7

9.0

(cid:660) Actual　　 Target

10.0

9.7

9.1

8.5

7.8

Ordinary Income
(¥ Billions)

■ Actual　■ Target

91.0

94.0

80.0

6.8

6.1

6.1

4.4

3.4

1.9

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

71.5

64.9

57.6

38.9

66.8

62.0

42.0

38.6

30.3

17.0

7.6

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

100

80

60

40

20

0

100

80

60

40

20

0

Net Income
(¥ Billions)

■ Actual　■ Target

67.2

62.0

52.0

ROE
((cid:715))
20.0

15.0

10.0

5.0

0

16.1

15.0

14.0

12.1

(cid:660) Actual　　 Target

15.3

14.9

13.0

10.3

10.6

14.0

5.2

9.2

06/3

07/3

08/3

1.8

09/3

2.0

10/3

11/3

12/3

13/3

14/3

15/3

16/3

42.6

44.5

34.9

25.6

26.1

28.5

37.0

31.2

15.7

4.6

4.8

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

8.0

6.0

4.0

2.0

0

100

80

60

40

20

0

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Net D/E Ratio
(Times)
1.0

(cid:660) Actual　　 Target

Movements in Exchange Rates ((cid:711)/US$) ((cid:711)/Euro)
(Yen)
200

(cid:660) Actual ((cid:711)/US$)
(cid:660) Actual ((cid:711)/Euro)
　 Assumed

0.8

0.6

0.4

0.2

0

0.73

0.69

0.56

0.85

0.40

0.73

0.60

0.58

0.51

0.50

0.41

0.31

0.40

0.23

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

150

100

50

0

162.22

150.35

137.39

110.37

116.93

114.55

144.47

136.00 

130.89

108.00

112.92

109.40

100.74

92.83

85.63

134.37

138.77

120.00

107.14
90.00

109.93

100.24

132.58
120.14

120.00

90.00

79.02

83.10

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

24

NSK REPORT 2016

NSK REPORT 2016

25

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

Period of 
Second MTP

Period of 
Third MTP

Period of 
Fourth MTP

 
 
 
 
 
 
Creating Corporate Value (Growth Strategies)
The Fifth Mid-Term Management Plan

Outline of the Fifth Mid-Term Management Plan

Strategies by Business: Industrial Machinery

Under the banner of NSK Vision 2026, the NSK Group formulated its 
new Fifth MTP, which covers the three-year period from the current 
fiscal year (ending March 2017) to the fiscal year ending March 2019. 
Positioning the Fifth MTP period as the first three years for embarking 
on new chapter in evolution towards next 100 years, the Company will 
advance initiatives supported by two main policy pillars: operational 
excellence and innovate and challenge. The new MTP was launched in a 
harsh business environment brought about by changes in the economic 
situation. It is with this background that NSK aims to enhance 
profitability through the swift creation of a business structure resilient to 
economic changes, proactively reinvesting the profits gained into the 
development of new products and technologies targeting new fields of 
future growth.

Twin Pillars of the Fifth Mid-Term Management Plan

1. Operational Excellence

By going one step further in leveraging monozukuri, a key ingredient in 
our DNA, NSK aims to bring to fruition more robust front-line 
capabilities in each of its operations. The Company will pursue efficiency 
in all of its manufacturing, sales, technical and administrative functions; 
devise ways to enhance corporate fundamentals and profitability, and 
raise the competitiveness of its core businesses.

2. Innovate and Challenge

This pillar focuses on the creation of new value for the future through 
new technologies, products and businesses. By pursuing operational 
excellence, the Company will secure a level of profitability necessary
to reinvest in innovation for the next stage of development, thereby 
achieving further growth.

Aims and Implementation

1. Sustainable Growth

That NSK is targeting growth is obvious, but the Company will at 
the same time endeavor to work with its stakeholders to create 
value by giving back to the community and helping to solve 
societal issues. Through our focus on sustainable growth, NSK 
will contribute to the creation of a safe, convenient, comfortable 
and environmentally friendly society.

2. Reconstruct Profit Base

Having improved profitability under the Fourth MTP, the 
Company will work to reconstruct its business structure and 
profit base to make them resilient to changes in demand and 
economic conditions. In addition, NSK will keep to the basics; we 
will continue our traditional emphasis on monozukuri and quality, 
while taking care of our employees and valuing our customers 
and business partners.

3. Expand into New Growth Fields

In addition to growth through functional and elemental 
components that leverage NSK’s core technologies, the 
Company is broadening its focus to include the applications, 
machinery, equipment and systems which use NSK products. 
The Company will be more proactive in advancing technological 
developments and marketing designed to enhance these 
functions and raise their value.

Current Business Environment and Mid- to Long-Term Outlook

Measures Geared toward Initiatives

Against a backdrop of factors that include the slowdown of growth in 

emerging markets, a downturn in resource prices, and excess production 

capacity in part of the sector, the demand environment for the Industrial 

Machinery Business is in an adjustment phase and its future is still 

uncertain. Furthermore, the recovery during this Fifth MTP will likely be 

limited and lacking in strength due to the absence of either a regional 

powerhouse or a sector to drive development. And due to the entry of 

emerging market manufacturers, the competitive environment for 

bearing manufacturers at home and abroad is increasing in its intensity.

(cid:724)  Respond to changes in the business environment

In a business environment in which low growth is assumed, the Company 

will rework its competitive edge and improve profitability by reviewing costs 

and quality, working to further shorten lead times, and strengthening its 

product appeal. At the Industrial Machinery Business’s main plant located in 

Fujisawa, the Company will introduce new manufacturing methods and new 

technologies to improve productivity, expand the scope of automation, and 

perform reorganization of areas such as the plant’s product lineup.

(cid:724)  Measures for focus sectors

In contrast, it is likely that technological demands in the industrial 

The Company has cited several focus sectors expected to witness mid- to 

machinery field will evolve over the mid- to-long-term and that fields 

long-term growth in the years ahead: the infrastructure field, including 

involving the environment, infrastructure, and IT will become more 

wind turbines and railcars; capital goods, including the ever-evolving 

essential and more susceptible to change. After thoroughly assessing 

machine tools that are becoming more sophisticated from a technological 

the needs in priority fields where technological innovation and increased 

aspect; and the rapidly growing fields of robotics and medicine. NSK will 

demand are expected, NSK will aim to use its technological capabilities 

expand its market presence and share by utilizing technological innovation 

In the Industrial Machinery Business, we have decided to focus our efforts 

(cid:724)  Creation of new added value and demand

on responding to changes in the business environment and the expansion 

to further expand its market presence.

Key Initiatives and Measures

Key Initiatives

of target fields.

(cid:724)  As far as operational excellence is concerned, we are working 

to improve our response to shifts in the market, reinforce 

profitability, and enhance our product development capabilities.

(cid:724)  With regard to our innovate and challenge policy, in addition to 

concentrating our resources on focus sectors, NSK will focus on 

creating new added value and generating demand.

to provide solutions to its customers. The Company will also strengthen the 

management of its sales channels in the aftermarket field. Other measures 

that the Company will advance include strengthening the swiftness of 

delivery systems in developed countries and, in emerging markets, 

improving quality to leverage the features of the distributors.

In aiming for the creation and proposal of new added value, the Company 

will engage in the technological development of a condition monitoring 

system (CMS) and establish a business model for that system. Possessing 

two product lineups, bearings and linear motion components, NSK will 

focus on developing new products by harnessing the synergy created when 

combining these two technologies and on its capabilities for making 

further advances in the maintenance business in emerging markets.

NSK Vision 2026 Setting the Future in Motion

Key Initiatives in Industrial Machinery Business

Embark on New Chapter in Evolution towards Next 100 years

Respond to Changes in the Business Environment and Expand Target Fields

Operational
Excellence

Sustainable Growth

Deliver new value to society
Work together with stakeholders

Reconstruct Profit Base

Increase and stabilize profitability
Monozukuri, quality, personnel

Expand into New Growth Fields

Growth in core businesses
New products, new fields

Innovate and
Challenge

Industrial Machinery, Automotive

Safety, Quality, Compliance

Operational Excellence

Innovate and Challenge

(cid:724) Reinforce response capabilities and profitability

(cid:724) Enhance product capabilities

(cid:724) Concentrate resources on focus sectors

(cid:724) Create new added value and demand

Respond to Changes in

Business Environment

Initiatives for Focus Sectors

Rebuild competitiveness

Sustainable Growth

1

2

Respond to fierce competition

(cid:724) Reassess product capability

(cid:724) Shorten lead times

Improve cost competitiveness

(cid:724) F2 (Fujisawa) project

(cid:724) Introduce new manufacturing methods

1

2

Expand presence through 

solution-provision capability

(cid:724) Infrastructure (wind turbines, railcars)

(cid:724) Capital goods (machine tools)

(cid:724) Robots, medical

1

2

3

Create New Added

Value and Demand

Solution provider

Develop CMS technology

and establish business model 

Harness synergy effect between

bearing and linear-motion technologies

Channel management

(cid:724) Global aftermarket

Make advance in

maintenance business

26

NSK REPORT 2016

NSK REPORT 2016

27

 
Creating Corporate Value (Growth Strategies)

The Fifth Mid-Term Management Plan

Outline of the Fifth Mid-Term Management Plan

Under the banner of NSK Vision 2026, the NSK Group formulated its 

new Fifth MTP, which covers the three-year period from the current 

fiscal year (ending March 2017) to the fiscal year ending March 2019. 

Positioning the Fifth MTP period as the first three years for embarking 

Aims and Implementation

1. Sustainable Growth

on new chapter in evolution towards next 100 years, the Company will 

That NSK is targeting growth is obvious, but the Company will at 

advance initiatives supported by two main policy pillars: operational 

the same time endeavor to work with its stakeholders to create 

excellence and innovate and challenge. The new MTP was launched in a 

value by giving back to the community and helping to solve 

harsh business environment brought about by changes in the economic 

societal issues. Through our focus on sustainable growth, NSK 

situation. It is with this background that NSK aims to enhance 

will contribute to the creation of a safe, convenient, comfortable 

profitability through the swift creation of a business structure resilient to 

and environmentally friendly society.

economic changes, proactively reinvesting the profits gained into the 

development of new products and technologies targeting new fields of 

future growth.

Twin Pillars of the Fifth Mid-Term Management Plan

1. Operational Excellence

By going one step further in leveraging monozukuri, a key ingredient in 

our DNA, NSK aims to bring to fruition more robust front-line 

capabilities in each of its operations. The Company will pursue efficiency 

in all of its manufacturing, sales, technical and administrative functions; 

devise ways to enhance corporate fundamentals and profitability, and 

raise the competitiveness of its core businesses.

2. Innovate and Challenge

2. Reconstruct Profit Base

Having improved profitability under the Fourth MTP, the 

Company will work to reconstruct its business structure and 

profit base to make them resilient to changes in demand and 

economic conditions. In addition, NSK will keep to the basics; we 

will continue our traditional emphasis on monozukuri and quality, 

while taking care of our employees and valuing our customers 

and business partners.

3. Expand into New Growth Fields

In addition to growth through functional and elemental 

components that leverage NSK’s core technologies, the 

Company is broadening its focus to include the applications, 

This pillar focuses on the creation of new value for the future through 

machinery, equipment and systems which use NSK products. 

new technologies, products and businesses. By pursuing operational 

The Company will be more proactive in advancing technological 

excellence, the Company will secure a level of profitability necessary

developments and marketing designed to enhance these 

to reinvest in innovation for the next stage of development, thereby 

functions and raise their value.

achieving further growth.

Strategies by Business: Industrial Machinery

Current Business Environment and Mid- to Long-Term Outlook

Measures Geared toward Initiatives

Against a backdrop of factors that include the slowdown of growth in 
emerging markets, a downturn in resource prices, and excess production 
capacity in part of the sector, the demand environment for the Industrial 
Machinery Business is in an adjustment phase and its future is still 
uncertain. Furthermore, the recovery during this Fifth MTP will likely be 
limited and lacking in strength due to the absence of either a regional 
powerhouse or a sector to drive development. And due to the entry of 
emerging market manufacturers, the competitive environment for 
bearing manufacturers at home and abroad is increasing in its intensity.
In contrast, it is likely that technological demands in the industrial 

machinery field will evolve over the mid- to-long-term and that fields 
involving the environment, infrastructure, and IT will become more 
essential and more susceptible to change. After thoroughly assessing 
the needs in priority fields where technological innovation and increased 
demand are expected, NSK will aim to use its technological capabilities 
to further expand its market presence.

Key Initiatives and Measures

Key Initiatives
In the Industrial Machinery Business, we have decided to focus our efforts 
on responding to changes in the business environment and the expansion 
of target fields.
(cid:724)  As far as operational excellence is concerned, we are working 
to improve our response to shifts in the market, reinforce 
profitability, and enhance our product development capabilities.

(cid:724)  With regard to our innovate and challenge policy, in addition to 

concentrating our resources on focus sectors, NSK will focus on 
creating new added value and generating demand.

(cid:724)  Respond to changes in the business environment
In a business environment in which low growth is assumed, the Company 
will rework its competitive edge and improve profitability by reviewing costs 
and quality, working to further shorten lead times, and strengthening its 
product appeal. At the Industrial Machinery Business’s main plant located in 
Fujisawa, the Company will introduce new manufacturing methods and new 
technologies to improve productivity, expand the scope of automation, and 
perform reorganization of areas such as the plant’s product lineup.

(cid:724)  Measures for focus sectors

The Company has cited several focus sectors expected to witness mid- to 
long-term growth in the years ahead: the infrastructure field, including 
wind turbines and railcars; capital goods, including the ever-evolving 
machine tools that are becoming more sophisticated from a technological 
aspect; and the rapidly growing fields of robotics and medicine. NSK will 
expand its market presence and share by utilizing technological innovation 
to provide solutions to its customers. The Company will also strengthen the 
management of its sales channels in the aftermarket field. Other measures 
that the Company will advance include strengthening the swiftness of 
delivery systems in developed countries and, in emerging markets, 
improving quality to leverage the features of the distributors.

(cid:724)  Creation of new added value and demand

In aiming for the creation and proposal of new added value, the Company 
will engage in the technological development of a condition monitoring 
system (CMS) and establish a business model for that system. Possessing 
two product lineups, bearings and linear motion components, NSK will 
focus on developing new products by harnessing the synergy created when 
combining these two technologies and on its capabilities for making 
further advances in the maintenance business in emerging markets.

NSK Vision 2026 Setting the Future in Motion

Key Initiatives in Industrial Machinery Business

Embark on New Chapter in Evolution towards Next 100 years

Respond to Changes in the Business Environment and Expand Target Fields

Operational

Excellence

Innovate and

Challenge

Sustainable Growth

Deliver new value to society

Work together with stakeholders

Reconstruct Profit Base

Increase and stabilize profitability

Monozukuri, quality, personnel

Expand into New Growth Fields

Growth in core businesses

New products, new fields

Industrial Machinery, Automotive

Safety, Quality, Compliance

Operational Excellence

Innovate and Challenge

(cid:724) Reinforce response capabilities and profitability
(cid:724) Enhance product capabilities

(cid:724) Concentrate resources on focus sectors
(cid:724) Create new added value and demand

Respond to Changes in
Business Environment
Rebuild competitiveness

1

2

Respond to fierce competition
(cid:724) Reassess product capability
(cid:724) Shorten lead times

Improve cost competitiveness
(cid:724) F2 (Fujisawa) project
(cid:724) Introduce new manufacturing methods

Initiatives for Focus Sectors

Sustainable Growth

Expand presence through 
solution-provision capability
(cid:724) Infrastructure (wind turbines, railcars)
(cid:724) Capital goods (machine tools)
(cid:724) Robots, medical

Channel management
(cid:724) Global aftermarket

1

2

Create New Added
Value and Demand
Solution provider

1

2

3

Develop CMS technology
and establish business model 

Harness synergy effect between
bearing and linear-motion technologies

Make advance in
maintenance business

26

NSK REPORT 2016

NSK REPORT 2016

27

 
Creating Corporate Value (Growth Strategies)
The Fifth Mid-Term Management Plan

Strategies by Business: Automotive

Changes in the Automotive Business Environment

Key Initiatives in the Automotive Business

Diversification in Automotive Power Sources

Evolution in Vehicle Dynamics Control

Gasoline and diesel-engine vehicles

Internal combustion
engine + electric motor

Hybrid vehicles

Electric motor only
Electric cars

Plug-in hybrid vehicles

Fuel cell vehicles (FCVs)

Fields
requiring further 
technological 
innovation

Sensing and judgment

Operation

Vehicle response

Controlled by the driver
s ability)
(Limit to increase in the driver’s ability)

Improved safety through
greater sophistication

Vehicle integrated control
(Running, turning, stopping integrally controlled)

Powertrain

Improved efficiency

Electrification

Environment

IT

Safety

Improved vehicle safety

Autonomous driving

Vehicle
dynamics

Diversification in Automotive Power Sources

Evolution in Vehicle Dynamics Control

Over the next 10 to 20 years, we anticipate further progress in 
the diversification of automotive power sources from traditional 
internal combustion engines (gasoline- and diesel-engine 
vehicles) to hybrids, plug-in hybrids, electric cars, and FCVs. 
Against a backdrop of societal demand for improved 
environmental performance and seeing that this trend will 
create a need for increased efficiency even at the component 
level, NSK is linking these demands for improved performance 
to its products.

In vehicle dynamics control, significant changes are proceeding 
at a rapid pace. Technological innovation is moving away from 
driver-controlled automobiles to the integrated control of a 
vehicle’s dynamics by the vehicle itself. In association with the 
evolution of vehicle dynamics control, such as Advanced Driver 
Assistance Systems (ADAS) and autonomous driving, plans for 
bringing increased sophistication to automotive safety 
performance are under way. As a component manufacturer 
that handles system products, NSK will contribute to improving 
the safety aspects of these technologies.

Automotive Business: New Organization

Refine Elemental Technology

Powertrain products
(cid:724)Automatic transmission 
  multistep

Electrical components field
(cid:724)Traditional applications
(cid:633)Engines and electrical 
   accessories
(cid:724)New applications
(cid:633)Electric chargers, 
   in-vehicle motors

Chassis
(cid:724)Hub unit bearings

Automotive Powertrain
Division HQ
(Bearings + Components)

Automotive Steering & 
Actuator Division HQ 

Enhance responsiveness
toward system technology

Manufacturing plants

Manufacturing plants

Automotive Technology Development Center

Powertrain Bearing
Technology Center

Application
engineering

Steering
Technology Center

New technology and
product development

Powertrain/vehicle dynamics

R&D, Technology Development

Steering systems
(cid:724)Column-type EPS
(cid:724)Rack-type EPS

Actuators
(cid:724)Electric brakes 
   (regenerative brakes)

Aims and Structure of the New Organization

Amidst the current unprecedented technological innovation in the 
automotive industry, NSK has to further demonstrate its strengths, 
advance innovative technological developments, and link them to 
next-generation growth. With the structural reorganization of its 
Automotive Business Headquarters at the start of the Fifth MTP, NSK 
changed from its previous organization centered on product types to 
a structure centered on two division headquarters, one covering 

28

NSK REPORT 2016

powertrains and the other covering steering systems and actuators. 
At the same time, the Company established the Automotive 
Technology Development Center to oversee R&D and product design 
in the automotive field. Under this we incorporated the Powertrain 
bearing and Steering technology centers responsible for application 
engineering, as well as a cross-sector automotive technology 
organization in charge of new technology and product development. 
The Company will utilize the new organization to better respond to 
the drastic changes in its business environment.

Reinforce Profit Base and Establish Platform for Future Growth

Operational Excellence

Innovate and Challenge

(cid:724) Expand drivetrain business, achieve growth with

(cid:724) Respond to technology evolution 

   accompanying profitability

(cid:724) Expand customer portfolio for EPS

   (high-efficiency, electrification, autonomous driving)

(cid:724) Develop lower-assist EPS

Key Initiatives of the Automotive Business

The Automotive Business regards the reinforcement of its profit base 

and establishment of a platform for future growth as focus topics.

(cid:724)  With regard to operational excellence, the Company will 

promote growth through the profitability of its drivetrain 

business and expand its EPS customer portfolio.

(cid:724)  With regard to its innovate and challenge policy, NSK will 

focus on its response to automotive technological 

innovation, with an emphasis on high efficiency, 

electrification and autonomous driving. The Company will 

make headway toward completion of lower-assist EPS 

development to acquire volume production orders.

Powertrain Business Strategies

multistep and increased business for customers who handle unit 

products are providing an added impetus. In the hub unit bearings 

field, NSK will enhance its customer base overseas. In addition, 

against a backdrop of in-vehicle electrical components becoming 

more widespread, the Company is targeting growth by developing new 

products to add to existing products in the field, such as electric 

chargers and in-vehicle motors, the demand for which is expected to 

increase in the years to come.

Steering and Actuator Business Strategies

For the Steering and Actuator Business, the period covered by the Fifth 

MTP is positioned as a critical time for sowing the seeds for the next 

phase of growth. It is anticipated that column-type EPS systems, an NSK 

core product, will account for approximately 40% of total EPS demand and 

will take a priority role in the expansion of our customer base. In contrast, 

as a lower- assist EPS, the Company is advancing the development of the 

The Powertrain Business is the core business underpinning NSK’s 

rack-type EPS and aiming for expansion during the Sixth MTP period. 

mid- to long-term growth. The Company will further refine the 

elemental technologies that up until now have been centered on 

automotive bearings and automatic transmissions (AT). We are 

planning sales expansion in the transmission field, where the AT 

NSK will also make progress with the development of the new core 

products, including actuators for electric brakes, by leveraging the 

mechatronic technologies acquired by the EPS business and enhancing 

its capabilities to respond to automotive component systemization.

The Fifth Mid-Term Management Plan Numerical Targets

Net sales

Operating income

Net income 

(attributable to owners of the parent)

Operating income margin

ROE

(*Based on IFRS)

(*Based on IFRS)

FY2015 (Actual)

FY2018 (Plan)

¥975.3 billion

¥89.5 billion

¥1 trillion

¥100.0 billion

¥65.7 billion

¥70.0 billion

The Fifth Mid-Term Management Plan

Capital Expenditure/R&D Expenses

Fourth MTP

Fifth MTP

(Actual)

(Plan)

Capital expenditure (including intangible assets)

¥149.0 billion

¥180.0 billion

(*Based on IFRS)

Operational Excellence

Enhance profitability, reorganize plant 

network, improve operational efficiency

¥140.0 billion

9.2(cid:715)

14.3(cid:715)

10.0(cid:715)

Innovate and Challenge

10.0% or more

new products and fields

New manufacturing methods, smart factories, 

¥20.0 billion

Net D/E ratio

0.23 times

0.3 times

Exchange rate

US$1  = 

€1 

= 

¥120

¥133

1 RMB =  ¥18.9

US$1  = 

€1 

= 

¥105

¥120

1 RMB =  ¥16.7

Reinforce Business Base

Safety, security, environment, BCP

R&D expenses

¥20.0 billion

¥68.5 billion

¥80.0 billion

Depreciation and amortization

¥115.3 billion

¥130.0 billion

Numerical Targets

(cid:724)  NSK will strive to improve its capital efficiency and financial 

stability: As an indicator of capital efficiency, the Company plans 

to achieve an ROE of 10% or more and a net D/E ratio of 0.3 

(cid:724)  As mentioned above, we anticipate limited demand recovery in 

times as an indicator of its financial foundation.

the course of this MTP, particularly in the Industrial Machinery 

(cid:724)  As investment for growth, NSK plans to invest a total of ¥180.0 

Business. In spite of this, however, the Company has decided to 

billion and exceed depreciation and amortization by more than 

aim to achieve its previous targets: net sales of ¥1 trillion, an 

¥50.0 billion during the three years of the MTP.

operating income of ¥100 billion and an operating income 

(cid:724)  With regard to R&D expenses, the Company has decided on ¥80.0 

margin of 10%.

billion and has positioned areas of significant resource input to 

realize future growth from a mid- to long-term perspective.

NSK REPORT 2016

29

Creating Corporate Value (Growth Strategies)

The Fifth Mid-Term Management Plan

Strategies by Business: Automotive

Diversification in Automotive Power Sources

Evolution in Vehicle Dynamics Control

Gasoline and diesel-engine vehicles

Internal combustion

engine + electric motor

Hybrid vehicles

Electric motor only

Electric cars

Plug-in hybrid vehicles

Fuel cell vehicles (FCVs)

Fields

requiring further 

technological 

innovation

Sensing and judgment

Operation

Vehicle response

Controlled by the driver

(Limit to increase in the driver’s ability)

Improved safety through

greater sophistication

Vehicle integrated control

(Running, turning, stopping integrally controlled)

Powertrain

Improved efficiency

Electrification

Environment

IT

Safety

Improved vehicle safety

Autonomous driving

Vehicle

dynamics

Diversification in Automotive Power Sources

Evolution in Vehicle Dynamics Control

Over the next 10 to 20 years, we anticipate further progress in 

In vehicle dynamics control, significant changes are proceeding 

the diversification of automotive power sources from traditional 

at a rapid pace. Technological innovation is moving away from 

internal combustion engines (gasoline- and diesel-engine 

driver-controlled automobiles to the integrated control of a 

vehicles) to hybrids, plug-in hybrids, electric cars, and FCVs. 

vehicle’s dynamics by the vehicle itself. In association with the 

Against a backdrop of societal demand for improved 

evolution of vehicle dynamics control, such as Advanced Driver 

environmental performance and seeing that this trend will 

Assistance Systems (ADAS) and autonomous driving, plans for 

create a need for increased efficiency even at the component 

bringing increased sophistication to automotive safety 

level, NSK is linking these demands for improved performance 

performance are under way. As a component manufacturer 

to its products.

that handles system products, NSK will contribute to improving 

the safety aspects of these technologies.

Automotive Business: New Organization

Refine Elemental Technology

Powertrain products

(cid:724)Automatic transmission 

  multistep

Electrical components field

(cid:724)Traditional applications

(cid:633)Engines and electrical 

   accessories

(cid:724)New applications

(cid:633)Electric chargers, 

   in-vehicle motors

Chassis

(cid:724)Hub unit bearings

Automotive Powertrain

Division HQ

(Bearings + Components)

Automotive Steering & 

Actuator Division HQ 

Enhance responsiveness

toward system technology

Manufacturing plants

Manufacturing plants

Steering systems

(cid:724)Column-type EPS

(cid:724)Rack-type EPS

Actuators

(cid:724)Electric brakes 

   (regenerative brakes)

Automotive Technology Development Center

Powertrain Bearing

Technology Center

Application

engineering

Steering

Technology Center

New technology and

product development

Powertrain/vehicle dynamics

R&D, Technology Development

Aims and Structure of the New Organization

powertrains and the other covering steering systems and actuators. 

At the same time, the Company established the Automotive 

Technology Development Center to oversee R&D and product design 

Amidst the current unprecedented technological innovation in the 

in the automotive field. Under this we incorporated the Powertrain 

automotive industry, NSK has to further demonstrate its strengths, 

bearing and Steering technology centers responsible for application 

advance innovative technological developments, and link them to 

engineering, as well as a cross-sector automotive technology 

next-generation growth. With the structural reorganization of its 

organization in charge of new technology and product development. 

Automotive Business Headquarters at the start of the Fifth MTP, NSK 

The Company will utilize the new organization to better respond to 

changed from its previous organization centered on product types to 

the drastic changes in its business environment.

a structure centered on two division headquarters, one covering 

28

NSK REPORT 2016

Changes in the Automotive Business Environment

Key Initiatives in the Automotive Business

Reinforce Profit Base and Establish Platform for Future Growth

Operational Excellence
(cid:724) Expand drivetrain business, achieve growth with
   accompanying profitability
(cid:724) Expand customer portfolio for EPS

Innovate and Challenge

(cid:724) Respond to technology evolution 
   (high-efficiency, electrification, autonomous driving)
(cid:724) Develop lower-assist EPS

Key Initiatives of the Automotive Business

The Automotive Business regards the reinforcement of its profit base 
and establishment of a platform for future growth as focus topics.
(cid:724)  With regard to operational excellence, the Company will 
promote growth through the profitability of its drivetrain 
business and expand its EPS customer portfolio.

(cid:724)  With regard to its innovate and challenge policy, NSK will 

focus on its response to automotive technological 
innovation, with an emphasis on high efficiency, 
electrification and autonomous driving. The Company will 
make headway toward completion of lower-assist EPS 
development to acquire volume production orders.

Powertrain Business Strategies

The Powertrain Business is the core business underpinning NSK’s 
mid- to long-term growth. The Company will further refine the 
elemental technologies that up until now have been centered on 
automotive bearings and automatic transmissions (AT). We are 
planning sales expansion in the transmission field, where the AT 

multistep and increased business for customers who handle unit 
products are providing an added impetus. In the hub unit bearings 
field, NSK will enhance its customer base overseas. In addition, 
against a backdrop of in-vehicle electrical components becoming 
more widespread, the Company is targeting growth by developing new 
products to add to existing products in the field, such as electric 
chargers and in-vehicle motors, the demand for which is expected to 
increase in the years to come.

Steering and Actuator Business Strategies

For the Steering and Actuator Business, the period covered by the Fifth 
MTP is positioned as a critical time for sowing the seeds for the next 
phase of growth. It is anticipated that column-type EPS systems, an NSK 
core product, will account for approximately 40% of total EPS demand and 
will take a priority role in the expansion of our customer base. In contrast, 
as a lower- assist EPS, the Company is advancing the development of the 
rack-type EPS and aiming for expansion during the Sixth MTP period. 
NSK will also make progress with the development of the new core 
products, including actuators for electric brakes, by leveraging the 
mechatronic technologies acquired by the EPS business and enhancing 
its capabilities to respond to automotive component systemization.

The Fifth Mid-Term Management Plan Numerical Targets

(*Based on IFRS)

(*Based on IFRS)

FY2015 (Actual)

FY2018 (Plan)

¥975.3 billion

¥89.5 billion

¥1 trillion

¥100.0 billion

¥65.7 billion

¥70.0 billion

10.0(cid:715)

10.0% or more

0.3 times

¥105
US$1  = 
¥120
= 
€1 
1 RMB =  ¥16.7

Net sales

Operating income

Net income 
(attributable to owners of the parent)

Operating income margin

ROE

9.2(cid:715)

14.3(cid:715)

Net D/E ratio

0.23 times

Exchange rate

¥120
US$1  = 
¥133
= 
€1 
1 RMB =  ¥18.9

Numerical Targets

(cid:724)  As mentioned above, we anticipate limited demand recovery in 
the course of this MTP, particularly in the Industrial Machinery 
Business. In spite of this, however, the Company has decided to 
aim to achieve its previous targets: net sales of ¥1 trillion, an 
operating income of ¥100 billion and an operating income 
margin of 10%.

The Fifth Mid-Term Management Plan
Capital Expenditure/R&D Expenses

Fourth MTP
(Actual)

Fifth MTP
(Plan)

Capital expenditure (including intangible assets)

¥149.0 billion

¥180.0 billion

(*Based on IFRS)

Operational Excellence
Enhance profitability, reorganize plant 
network, improve operational efficiency

Innovate and Challenge
New manufacturing methods, smart factories, 
new products and fields

Reinforce Business Base
Safety, security, environment, BCP

R&D expenses
Depreciation and amortization

¥140.0 billion

¥20.0 billion

¥20.0 billion

¥68.5 billion

¥80.0 billion

¥115.3 billion

¥130.0 billion

(cid:724)  NSK will strive to improve its capital efficiency and financial 

stability: As an indicator of capital efficiency, the Company plans 
to achieve an ROE of 10% or more and a net D/E ratio of 0.3 
times as an indicator of its financial foundation.

(cid:724)  As investment for growth, NSK plans to invest a total of ¥180.0 
billion and exceed depreciation and amortization by more than 
¥50.0 billion during the three years of the MTP.

(cid:724)  With regard to R&D expenses, the Company has decided on ¥80.0 
billion and has positioned areas of significant resource input to 
realize future growth from a mid- to long-term perspective.

NSK REPORT 2016

29

Creating Corporate Value (Growth Strategies)
Financial Strategy / Policy on Shareholder Returns

1

Financial Position

As at March 31, 2016, NSK’s financial position (based on JP GAAP) 
stood at total assets of ¥1,038.2 billion, shareholders’ equity of 
¥448.6 billion, cash and cash equivalents of ¥175.5 billion and 
interest-bearing debt of ¥278.2 billion. The ratio of net worth to 
total capital was 43.2% with a net D/E ratio of 0.23 times, beyond 
the 0.4 times target set for the Fourth MTP.

A factor behind these results was that NSK’s ability to generate 
cash steadily increased. Net income of ¥67.2 billion for the fiscal year 
ended March 31, 2016, marked an all-time high. While net cash flow 
provided by operating activities amounted to ¥105.3 billion (a 
year-on-year increase of 55%), net cash flow used in investing 
activities totaled ¥44.4 billion (a year-on-year decrease of 4%) and 
free cash flow increased ¥60.9 billion. With regard to cash flow used 

in financial activities, interest-bearing debt decreased by ¥44.6 
billion and dividends paid of ¥17.9 billion were made, including a 
dividend increase. The Company increased its annual dividend by ¥6 
per share compared with the previous fiscal year to ¥34 per share, 
and the dividend payout ratio was 27.4% (an increase of 3 
percentage points over the previous fiscal year).

NSK’s financial structure has thus improved significantly over 

the past few years. The Company has received high evaluations 
from ratings agencies, including an upgrade to an A rating from 
Rating and Investment Information, Inc. (R&I) in August 2014 after 
being rated A- over a 15-year period from 1999, and maintaining 
an A+ rating from Japan Credit Rating Agency, Ltd. (JCR), since 
September 2006.

Credit Rating Information

Rating and Investment Information, Inc. (R&I)

Japan Credit Rating Agency, Ltd. (JCR)

A

 (Stable)

R&I issuer ratings represent an opinion on a 
company’s ability to fulfill its financial obligations 
with regard to all the financial obligations borne by 
the issuer. The third-highest rating, A, signifies (cid:672)high 
creditworthiness supported by a few excellent 
factors.(cid:673)

A(cid:692)

(Stable)

The JCR long-term issuer A rating is the 
third-highest evaluation, which denotes (cid:672)a high 
level of certainty to honor the financial 
obligations,(cid:673) while the plus sign indicates a 
relatively high standing within that same rating 
category.

2

Retrospective Look at the Financial Results

The following is a retrospective review and analysis of 11 years of business performance and financial results, from the fiscal year ended 
March 2006 to the fiscal year ended March 2016.

(Based on JP GAAP)

2006/3

2016/3

Evaluation/Comment

Total assets

Shareholders’ equity

¥743.0 billion

¥1,038.2 billion

Increased 1.4 times due to the expansion of the business scale

¥235.7 billion

¥448.6 billion

Increased 1.9 times  due to accumulating profit

Cash and cash equivalents

¥51.8 billion

¥175.5 billion

Increased 3.4 times in association due to the expansion of operations

Interest-bearing debt

Net income (cumulative)

Capital expenditures (tangible/cumulative)

Depreciation and amortization (cumulative)

FCF (cumulative)

Cash dividends (cumulative)

Dividend payout ratio (cumulative)

¥222.9 billion

¥278.2 billion

Contained to a +25% increase (+(cid:711)55.2 billion)

¥343.0 billion

¥468.5 billion

¥401.1 billion

Profits remained on a growth trend across entire 11-year period

Made cumulative capital investments exceeding
accumulated depreciation by ¥67.5 billion

¥188.1 billion

Lower than cumulative profit due to factors including
the expansion of business scale and growth investments

¥97.9 billion

Returned 52% of the FCF to shareholders

28.5%

Paid a consistent dividend, including immediately after the global financial crisis

Ratio of net worth to total capital

31.7%

43.2%

+11.5% increase 

Net D/E ratio

Net debt/EBITDA

Credit rating (R&I)

30

NSK REPORT 2016

0.73 times

0.23 times

Improved beyond the MTP target of 0.4 times

2.4 times

0.8 times

Improved by 1.6 points

A(cid:114)

A

Rating upgraded in August 2014

3

Financial Strategies for the Future / Policy on Shareholder Returns

Under the Fifth MTP, NSK has pressed ahead with (1) the 

alongside growth investment. With regard to dividends, we have 

stabilization of its financial base to underpin (2) growth with 

publicly stated for the first time our intention to achieve a 

profitability and (3) shareholder returns, and newly put forward its 

dividend payout ratio target of 30% on a consolidated basis. In 

policy to work for the sustainable growth of its corporate value.

addition, to commemorate the 100th anniversary of NSK’s 

With regard to (1), the Company plans to conduct growth 

establishment in the fiscal year ending March 2017, we plan to 

investment (¥180.0 billion over the three years) aimed at mid- to 

pay a commemorative interim (end of September) dividend of 

long-term increases in corporate value, and regards the 

¥10. As part of our plan to enhance shareholder returns, the 

stabilization of its financial base as paramount to the payment of 

Company also acquired ¥15 billion of treasury stock in May 2016, 

ongoing dividends to all shareholders. The Company recognizes 

marking the first such acquisition in around 12 years.

that maintaining an A credit rating and a net D/E ratio of around 

In addition to returning profits through dividends, the 

the 0.3 times are the minimum base requirements needed to 

Company recognizes share buybacks as one of the most 

ensure the Company’s financial stability.

important choices available in its financial and capital policy. 

With regard to (2), the Company has stated its intention to 

Taking into account its financial situation and stock market 

make growth investments of ¥180.0 billion over the three years 

trends, the Company would like to proceed with an appropriate 

of the MTP and set an ROE target of 10% or more. Achieving 

and flexible financial strategy in the years to come.

growth by constantly and actively investing profits and increasing 

With aims that included improvement of management 

ROE in excess of the investment return (the cost of capital) 

efficiency through the standardization of its financial reporting 

expected by shareholders and can be considered the (cid:672)mission(cid:673) 

and raising the international comparability of financial 

of a publicly listed company. We believe that achieving a 

information in the capital markets, NSK decided to adopt 

mid-term ROE that is 10% higher than the Company’s cost of 

International Financial Reporting Standards (IFRS) voluntarily 

capital(cid:693)estimated from past share trends, business 

from the fiscal year ended March 2016. The JP GAAP and IFRS 

characteristics and the current state of the stock market(cid:693)is 

financial data are shown side by side in the data section of this 

important for the further improvement of shareholder value.

report. However, the Company’s financial reports will be based 

With regard to (3), enhancing the returns provided to 

solely on IFRS from the current fiscal year onward.

shareholders is another important policy under the Fifth MTP, 

Stabilization of 

Financial Base

Credit rating: maintain level A

Net D/E ratio of around 0.3 times

Balance investment 

in future growth with 

shareholder returns under 

a stable financial 

structure

Growth 

with Profitability

ROE: 10% or more

Investment for future growth:

(cid:711)180.0 billion/3 years

Shareholder 

Returns

Dividend payout ratio of approximately 30%

Acquisition of treasury stock

NSK REPORT 2016

31

Creating Corporate Value (Growth Strategies)

Financial Strategy / Policy on Shareholder Returns

As at March 31, 2016, NSK’s financial position (based on JP GAAP) 

in financial activities, interest-bearing debt decreased by ¥44.6 

stood at total assets of ¥1,038.2 billion, shareholders’ equity of 

billion and dividends paid of ¥17.9 billion were made, including a 

¥448.6 billion, cash and cash equivalents of ¥175.5 billion and 

dividend increase. The Company increased its annual dividend by ¥6 

interest-bearing debt of ¥278.2 billion. The ratio of net worth to 

per share compared with the previous fiscal year to ¥34 per share, 

total capital was 43.2% with a net D/E ratio of 0.23 times, beyond 

and the dividend payout ratio was 27.4% (an increase of 3 

the 0.4 times target set for the Fourth MTP.

percentage points over the previous fiscal year).

A factor behind these results was that NSK’s ability to generate 

NSK’s financial structure has thus improved significantly over 

cash steadily increased. Net income of ¥67.2 billion for the fiscal year 

the past few years. The Company has received high evaluations 

ended March 31, 2016, marked an all-time high. While net cash flow 

from ratings agencies, including an upgrade to an A rating from 

provided by operating activities amounted to ¥105.3 billion (a 

Rating and Investment Information, Inc. (R&I) in August 2014 after 

year-on-year increase of 55%), net cash flow used in investing 

being rated A- over a 15-year period from 1999, and maintaining 

activities totaled ¥44.4 billion (a year-on-year decrease of 4%) and 

an A+ rating from Japan Credit Rating Agency, Ltd. (JCR), since 

free cash flow increased ¥60.9 billion. With regard to cash flow used 

September 2006.

Credit Rating Information

Rating and Investment Information, Inc. (R&I)

Japan Credit Rating Agency, Ltd. (JCR)

A

 (Stable)

R&I issuer ratings represent an opinion on a 

company’s ability to fulfill its financial obligations 

with regard to all the financial obligations borne by 

the issuer. The third-highest rating, A, signifies (cid:672)high 

creditworthiness supported by a few excellent 

A(cid:692)

(Stable)

The JCR long-term issuer A rating is the 

third-highest evaluation, which denotes (cid:672)a high 

level of certainty to honor the financial 

obligations,(cid:673) while the plus sign indicates a 

relatively high standing within that same rating 

factors.(cid:673)

category.

2

Retrospective Look at the Financial Results

The following is a retrospective review and analysis of 11 years of business performance and financial results, from the fiscal year ended 

March 2006 to the fiscal year ended March 2016.

(Based on JP GAAP)

2006/3

2016/3

Evaluation/Comment

¥743.0 billion

¥1,038.2 billion

Increased 1.4 times due to the expansion of the business scale

¥235.7 billion

¥448.6 billion

Increased 1.9 times  due to accumulating profit

Cash and cash equivalents

¥51.8 billion

¥175.5 billion

Increased 3.4 times in association due to the expansion of operations

¥222.9 billion

¥278.2 billion

Contained to a +25% increase (+(cid:711)55.2 billion)

¥343.0 billion

¥468.5 billion

¥401.1 billion

Profits remained on a growth trend across entire 11-year period

Made cumulative capital investments exceeding

accumulated depreciation by ¥67.5 billion

¥188.1 billion

Lower than cumulative profit due to factors including

the expansion of business scale and growth investments

¥97.9 billion

Returned 52% of the FCF to shareholders

28.5%

Paid a consistent dividend, including immediately after the global financial crisis

Total assets

Shareholders’ equity

Interest-bearing debt

Net income (cumulative)

Capital expenditures (tangible/cumulative)

Depreciation and amortization (cumulative)

FCF (cumulative)

Cash dividends (cumulative)

Dividend payout ratio (cumulative)

Ratio of net worth to total capital

31.7%

43.2%

+11.5% increase 

0.73 times

0.23 times

Improved beyond the MTP target of 0.4 times

2.4 times

0.8 times

Improved by 1.6 points

A(cid:114)

A

Rating upgraded in August 2014

Net D/E ratio

Net debt/EBITDA

Credit rating (R&I)

30

NSK REPORT 2016

1

Financial Position

3

Financial Strategies for the Future / Policy on Shareholder Returns

Under the Fifth MTP, NSK has pressed ahead with (1) the 
stabilization of its financial base to underpin (2) growth with 
profitability and (3) shareholder returns, and newly put forward its 
policy to work for the sustainable growth of its corporate value.
With regard to (1), the Company plans to conduct growth 
investment (¥180.0 billion over the three years) aimed at mid- to 
long-term increases in corporate value, and regards the 
stabilization of its financial base as paramount to the payment of 
ongoing dividends to all shareholders. The Company recognizes 
that maintaining an A credit rating and a net D/E ratio of around 
the 0.3 times are the minimum base requirements needed to 
ensure the Company’s financial stability.

With regard to (2), the Company has stated its intention to 
make growth investments of ¥180.0 billion over the three years 
of the MTP and set an ROE target of 10% or more. Achieving 
growth by constantly and actively investing profits and increasing 
ROE in excess of the investment return (the cost of capital) 
expected by shareholders and can be considered the (cid:672)mission(cid:673) 
of a publicly listed company. We believe that achieving a 
mid-term ROE that is 10% higher than the Company’s cost of 
capital(cid:693)estimated from past share trends, business 
characteristics and the current state of the stock market(cid:693)is 
important for the further improvement of shareholder value.
With regard to (3), enhancing the returns provided to 

shareholders is another important policy under the Fifth MTP, 

alongside growth investment. With regard to dividends, we have 
publicly stated for the first time our intention to achieve a 
dividend payout ratio target of 30% on a consolidated basis. In 
addition, to commemorate the 100th anniversary of NSK’s 
establishment in the fiscal year ending March 2017, we plan to 
pay a commemorative interim (end of September) dividend of 
¥10. As part of our plan to enhance shareholder returns, the 
Company also acquired ¥15 billion of treasury stock in May 2016, 
marking the first such acquisition in around 12 years.

In addition to returning profits through dividends, the 
Company recognizes share buybacks as one of the most 
important choices available in its financial and capital policy. 
Taking into account its financial situation and stock market 
trends, the Company would like to proceed with an appropriate 
and flexible financial strategy in the years to come.

With aims that included improvement of management 

efficiency through the standardization of its financial reporting 
and raising the international comparability of financial 
information in the capital markets, NSK decided to adopt 
International Financial Reporting Standards (IFRS) voluntarily 
from the fiscal year ended March 2016. The JP GAAP and IFRS 
financial data are shown side by side in the data section of this 
report. However, the Company’s financial reports will be based 
solely on IFRS from the current fiscal year onward.

Stabilization of 
Financial Base
Credit rating: maintain level A

Net D/E ratio of around 0.3 times

Balance investment 
in future growth with 
shareholder returns under 
a stable financial 
structure

Growth 
with Profitability

Shareholder 
Returns

ROE: 10% or more

Investment for future growth:
(cid:711)180.0 billion/3 years

Dividend payout ratio of approximately 30%

Acquisition of treasury stock

NSK REPORT 2016

31

Corporate Value Results
Review of Operations

Industrial Machinery
Business

Business Overview

The industrial machinery bearings business is comprised of three sub-segments: 
the general machinery sub-segment, which manufactures bearings for applications 
in a wide range of industries such as machine tools, steel plant facilities, railcars, 
construction machinery, chemical plants, industrial pumps and wind turbines; the 
electrical and IT equipment sub-segment, which includes home appliances, office 
equipment, hard disk drives (HDDs) and general-purpose motors; and the 
aftermarket business, which provides maintenance and repair services.

Industrial machinery bearings come in a range of sizes, from bearings with an 

outer diameter of approximately 2 mm that are incorporated into ultra-small 
motors, to bearings with an outer diameter of more than two meters that are 
utilized in wind turbines. The typical household contains around 150 bearings, 
which are used in general appliances like vacuum cleaners and washing machines.
On the other hand, the precision machinery and parts business manufactures  

linear motion products and mechatronics products that are utilized in machine 
tools, injection molding machines, transfer machines, and machines for producing 
semiconductors and LCD panels. Many NSK products are being put to work in 
machine tools in which precise positioning is paramount.

(Refer to page 4 of this report for information on our net sales and main 

products.)

Business Environment

The Industrial Machinery Business is influenced by a range of factors, including 
changes in business conditions, movements in customer demand, the status of 
competition and technological innovation. Due to changes in the global economic 
cycle, capital expenditure trends and demand for machine tools and electrical 
machinery are in an adjustment phase, and their future remains uncertain. There is 
also concern that the appreciation of what had been a weak yen until the previous 
fiscal year, combined with movements in unstable resource markets, will impact the 
Group’s net sales and profit. In addition, the competitive environment with rival 
bearing makers at home and abroad remains in a severe condition. Accordingly, in 
terms of demand, cost and price aspects, the business environment has become 
more severe than it has been over the past two years.

In this market environment, the NSK Group has targeted and will address two 

areas under its Fifth Mid-Term Management Plan: 1) Raising its share of 
infrastructure-related sectors projected to grow in the mid- to long-term, such as 
wind power generation and railways, and 2) Expanding its presence in new fields 
where high growth can be expected, such as robotics and medicine.

(Refer to page 27 of this report for information on the Mid-Term Management 

Plan.)

255.8

243.0

216.1

276.4

259.8(cid:718)

242.0(cid:718)

Net Sales

((cid:711) Billions)

300

200

100

0

Operating Income/Operating Income Margin

((cid:711) Billions)

12.4

10.0

9.8

8.9

34.4

25.7

23.7

6.0

13.0

23.1(cid:718)

5.4

13.0(cid:718)

50

40

30

20

10

0

(cid:674)(cid:715)(cid:675)

12

10

8

6

4

2

0

12/3

13/3

14/3

15/3

16/3

17/3

12/3

13/3

14/3

15/3

16/3

17/3

(Forecast)

■  Operating Income (left)

-  Operating Income Margin

(Forecast)

*16/3 and 17/3 (forecast) to IFRS standards

A Look Back at the Year Ended March 31, 2016, and the Forecast for the Year Ending March 31, 2017

A decrease in sales and profits caused by the economic slowdown of 

emerging markets

Demand in the industrial machinery business decreased due to the economic slowdown, primarily in emerging markets. 

Looking at the results by region, the decrease in sales in Japan and in the Americas was centered on the machine tool 

sector and the aftermarket sector respectively. In Europe, despite increased sales in the home appliance sector, sales 

also declined in the aftermarket sector. In China, sales decreased primarily in the electrical sector despite higher sales 

in the wind turbine sector. In other Asian countries, sales decreased due to weak demand on the whole.

As a result, net sales in the Industrial Machinery Business totaled (cid:711)259.8 billion. Also, due to the decrease in sales 

and deterioration in the product mix, operating income was ¥23.1 billion, and the operating income margin was 8.9%.

In the fiscal year ending March 31, 2017, it is expected that the global demand adjustment phase will continue due to 

the downturn in the Chinese economy. Uncertainty is also anticipated to surround recovery drivers. Under these 

conditions, the Company forecasts net sales of (cid:711)242.0 billion (a year-on-year decrease of 6.9%), in accordance with a 

decrease in sales volume. Also, due to the effects of intensified competition and the appreciation of the yen, we 

anticipate an operating income of (cid:711)13.0 billion (a year-on-year decrease of 43.7%) and an operating income margin of 

5.4% (a year-on-year decrease of 3.5 percentage points).

Risks and Opportunities, Future Policies

Aiming for business performance recovery by strengthening target fields and 

further growth in aftermarket sales

The slowdown of global economic growth, including in emerging markets, is a major external risk to the Industrial 

Machinery Business. However, even with the low growth of the macro economy, specific fields, such as those related to

infrastructure like wind turbines and railcars, can be expected to remain as global growth markets in the years to come. 

As the number of offshore wind turbine installations grows, performance requirements will extend to high output, 

countermeasures against damage, and predicting remaining service life. In the case of railcars, the extension of 

high-speed railways into the inland regions of the continent will lead to a demand in cold weather region specifications 

and longer service life. Faced with the increasing sophistication of such market needs, NSK aims to expand its market 

presence by utilizing its ability to deliver technological proposals.

Furthermore, changes in the market environment, such as the global expansion of our customers, and an 

increasingly tough competitive environment can also be said to present risks. For example, there is the possibility that 

the intensifying rivalry in emerging markets between manufacturers from developed countries and local manufacturers 

will exert an adverse influence on the NSK Group’s business performance and financial position. However, the Group will 

aim to maintain and expand its market share and ensure profitability by devising ways to bolster its competitiveness in 

areas other than on price, such as by the expansion of business in fields requiring high-quality bearings and technical 

service enhancements.

The Group’s Industrial Machinery Business is dependent on a wide variety of sectors, but there is an increasing trend 

for general economic cycles to have an effect on its business performance. In the precision machinery and parts 

business, as the semiconductor production equipment and machine tool industries make up a large amount of our 

sales, we consider the high rate of dependency on specific demand fields a significant risk. Accordingly, NSK is working 

to mitigate the impact from any fall in demand from fields in which the Company has a high dependence by raising the 

sales ratio in general machinery and the aftermarket, fields which broadly underpin demand. The Company will continue 

its business expansion efforts in the highly profitable aftermarket field in particular, as well as seek improvements in the 

added value provided to end-users and advance sales channel measures which enhance quality.

32

NSK REPORT 2016

NSK REPORT 2016

33

0

14/3

13/3

8

6

4

2

0

(cid:674)(cid:715)(cid:675)
12

10

15/3

16/3

17/3
(Forecast)

Operating Income/Operating Income Margin

12/3
■  Operating Income (left)
-  Operating Income Margin

((cid:711) Billions)

12.4

50

40

30

20

10

10.0

9.8

8.9

34.4

23.7

23.1(cid:718)

5.4
13.0(cid:718)

25.7

6.0

13.0

Net Sales

((cid:711) Billions)
300

255.8

243.0

216.1

276.4

259.8(cid:718)

242.0(cid:718)

200

100

0

12/3

13/3

14/3

15/3

16/3

17/3
(Forecast)

Corporate Value Results

Review of Operations

Industrial Machinery

Business

Business Overview

The industrial machinery bearings business is comprised of three sub-segments: 

the general machinery sub-segment, which manufactures bearings for applications 

in a wide range of industries such as machine tools, steel plant facilities, railcars, 

construction machinery, chemical plants, industrial pumps and wind turbines; the 

electrical and IT equipment sub-segment, which includes home appliances, office 

equipment, hard disk drives (HDDs) and general-purpose motors; and the 

aftermarket business, which provides maintenance and repair services.

Industrial machinery bearings come in a range of sizes, from bearings with an 

outer diameter of approximately 2 mm that are incorporated into ultra-small 

motors, to bearings with an outer diameter of more than two meters that are 

utilized in wind turbines. The typical household contains around 150 bearings, 

which are used in general appliances like vacuum cleaners and washing machines.

On the other hand, the precision machinery and parts business manufactures  

linear motion products and mechatronics products that are utilized in machine 

tools, injection molding machines, transfer machines, and machines for producing 

semiconductors and LCD panels. Many NSK products are being put to work in 

machine tools in which precise positioning is paramount.

(Refer to page 4 of this report for information on our net sales and main 

products.)

Business Environment

The Industrial Machinery Business is influenced by a range of factors, including 

changes in business conditions, movements in customer demand, the status of 

competition and technological innovation. Due to changes in the global economic 

cycle, capital expenditure trends and demand for machine tools and electrical 

machinery are in an adjustment phase, and their future remains uncertain. There is 

also concern that the appreciation of what had been a weak yen until the previous 

fiscal year, combined with movements in unstable resource markets, will impact the 

Group’s net sales and profit. In addition, the competitive environment with rival 

bearing makers at home and abroad remains in a severe condition. Accordingly, in 

terms of demand, cost and price aspects, the business environment has become 

more severe than it has been over the past two years.

In this market environment, the NSK Group has targeted and will address two 

areas under its Fifth Mid-Term Management Plan: 1) Raising its share of 

infrastructure-related sectors projected to grow in the mid- to long-term, such as 

wind power generation and railways, and 2) Expanding its presence in new fields 

where high growth can be expected, such as robotics and medicine.

(Refer to page 27 of this report for information on the Mid-Term Management 

Plan.)

*16/3 and 17/3 (forecast) to IFRS standards

A Look Back at the Year Ended March 31, 2016, and the Forecast for the Year Ending March 31, 2017
A decrease in sales and profits caused by the economic slowdown of 
emerging markets

Demand in the industrial machinery business decreased due to the economic slowdown, primarily in emerging markets. 
Looking at the results by region, the decrease in sales in Japan and in the Americas was centered on the machine tool 
sector and the aftermarket sector respectively. In Europe, despite increased sales in the home appliance sector, sales 
also declined in the aftermarket sector. In China, sales decreased primarily in the electrical sector despite higher sales 
in the wind turbine sector. In other Asian countries, sales decreased due to weak demand on the whole.

As a result, net sales in the Industrial Machinery Business totaled (cid:711)259.8 billion. Also, due to the decrease in sales 
and deterioration in the product mix, operating income was ¥23.1 billion, and the operating income margin was 8.9%.

In the fiscal year ending March 31, 2017, it is expected that the global demand adjustment phase will continue due to 

the downturn in the Chinese economy. Uncertainty is also anticipated to surround recovery drivers. Under these 
conditions, the Company forecasts net sales of (cid:711)242.0 billion (a year-on-year decrease of 6.9%), in accordance with a 
decrease in sales volume. Also, due to the effects of intensified competition and the appreciation of the yen, we 
anticipate an operating income of (cid:711)13.0 billion (a year-on-year decrease of 43.7%) and an operating income margin of 
5.4% (a year-on-year decrease of 3.5 percentage points).

Risks and Opportunities, Future Policies
Aiming for business performance recovery by strengthening target fields and 
further growth in aftermarket sales

The slowdown of global economic growth, including in emerging markets, is a major external risk to the Industrial 
Machinery Business. However, even with the low growth of the macro economy, specific fields, such as those related to
infrastructure like wind turbines and railcars, can be expected to remain as global growth markets in the years to come. 
As the number of offshore wind turbine installations grows, performance requirements will extend to high output, 
countermeasures against damage, and predicting remaining service life. In the case of railcars, the extension of 
high-speed railways into the inland regions of the continent will lead to a demand in cold weather region specifications 
and longer service life. Faced with the increasing sophistication of such market needs, NSK aims to expand its market 
presence by utilizing its ability to deliver technological proposals.

Furthermore, changes in the market environment, such as the global expansion of our customers, and an 

increasingly tough competitive environment can also be said to present risks. For example, there is the possibility that 
the intensifying rivalry in emerging markets between manufacturers from developed countries and local manufacturers 
will exert an adverse influence on the NSK Group’s business performance and financial position. However, the Group will 
aim to maintain and expand its market share and ensure profitability by devising ways to bolster its competitiveness in 
areas other than on price, such as by the expansion of business in fields requiring high-quality bearings and technical 
service enhancements.

The Group’s Industrial Machinery Business is dependent on a wide variety of sectors, but there is an increasing trend 

for general economic cycles to have an effect on its business performance. In the precision machinery and parts 
business, as the semiconductor production equipment and machine tool industries make up a large amount of our 
sales, we consider the high rate of dependency on specific demand fields a significant risk. Accordingly, NSK is working 
to mitigate the impact from any fall in demand from fields in which the Company has a high dependence by raising the 
sales ratio in general machinery and the aftermarket, fields which broadly underpin demand. The Company will continue 
its business expansion efforts in the highly profitable aftermarket field in particular, as well as seek improvements in the 
added value provided to end-users and advance sales channel measures which enhance quality.

32

NSK REPORT 2016

NSK REPORT 2016

33

Corporate Value Results
Review of Operations

Automotive
Business

Business Overview

NSK’s Automotive Business previously consisted of two categories that had formed 
the basis of its products: automotive bearings, such as hub unit bearings, and 
automotive components, including electric power steering (EPS) systems and 
automatic transmission components.

To respond to the trend for rapid changes in automobiles, however, from the fiscal 
year ending March 31, 2017, the Company has changed to a two-division HQ system: 
the Automotive Powertrain Division Headquarters, which supports the enhanced 
sophistication of automobiles via elemental components, and the Automotive Steering 
& Actuator Division Headquarters, which handles system components that serve an 
essential function in automobiles. Under the Automotive Technology Development 
Center, we incorporated the Powertrain bearing and Steering technology centers 
responsible for application engineering, as well as a cross-sector automotive 
technology organization in charge of new technology and product development.

Automotive technological innovation centered on the environment and safety is 
rapidly developing, and structural changes from technical standpoints, such as power 
source diversification and the evolution of vehicle dynamics controls geared toward 
autonomous driving is accelerating. Building off technologies the Company has 
accumulated up to now, NSK will contribute to improving the basic functions of the 
automobile(cid:693)running, turning and stopping(cid:693)through its components and system 
products.

(Refer to page 5 of this report for information on our net sales and main products.)

Business Environment

Directly affected by automotive sales around the world and production volumes of 
automakers, the Automotive Business is influenced by global economic trends. Over 
the mid- to-long term, global automotive production volume is forecast to serve as a 
growth driver in emerging markets and expand toward 100 million vehicles a year; 
automotive are thus considered a growth industry.

Against the backdrop of expansion in automotive production volume, the sales 

volumes in the automotive business are also expected to increase. As such, 
technological innovation in the automotive sector is becoming ever more imperative. 
Based on the business environment assumed in its Fifth Mid-Term Management 
Plan the Company is advancing business expansion and strengthening profitability by 
means of a new organizational structure. In more specific terms, the Company will 
expand its lineup of powertrain field-related products, evolve in electrical applications, 
develop lower-assist EPS, and introduce actuator products to the market.

(Refer to pages 28-29 for information on the Mid-Term Management Plan.)

689.1(cid:718)

657.0

656.0(cid:718)

590.5

490.5

444.6

Net Sales

((cid:711) Billions)

800

600

400

200

0

Operating Income/Operating Income Margin

((cid:711) Billions)

100

10.0

9.9

65.7

67.9(cid:718)

7.5

49.0(cid:718)

8.3

49.2

80

60

40

20

0

5.1

5.1

22.6

25.0

(cid:674)(cid:715)(cid:675)

12

10

8

6

4

2

0

12/3

13/3

14/3

15/3

16/3

17/3

12/3

13/3

14/3

15/3

16/3

17/3

(Forecast)

■  Operating Income (left)

-  Operating Income Margin

(Forecast)

*16/3 and 17/3 (forecast) to IFRS standards

A Look Back at the Year Ended March 31, 2016, and the Forecast for the Year Ending March 31, 2017

Gradual expansion continued in the year ended March 2016, new net sales and profit records set

During the year ended March 31, 2016, demand in the global automotive market continued its gradual expansion. In 

Japan, the Group’s sales declined due to sluggish sales of Japanese mini vehicles. In the Americas, however, EPS and 

automotive bearing sales rose due to robust demand in the North American market. In Europe, a continued gradual 

recovery in the automotive market led to higher sales. Despite slower growth in the automotive market, sales in China 

increased due to the impact of special tax incentives for compact cars. Although market conditions varied between 

countries, sales in other Asian countries also increased, primarily due to demand for EPS.

As a result, net sales in the Automotive Business totaled (cid:711)689.1 billion, and an increase in sales and the effects of 

cost reduction produced operating income of ¥68.0 billion and an operating income margin of 9.9%.

Although it is thought that automotive will continue to be a growth industry, it is expected that the pace of growth will 

slow during the next two to three years. It is forecast that global automotive production volumes will grow by 

approximately 3%, from 89.0 million units in the fiscal year ended March 31, 2016, to 92.0 million in the fiscal year ending 

March 31, 2017. It is expected that the number of vehicles produced by Japanese automakers will increase by about the 

same amount, approximately 3%.

Under these conditions and despite the expected increase in sales volume, the Company forecasts net sales in its 

Automotive Business of (cid:711)656.0 billion (a year-on-year decrease of 4.8%) due to the impact of the yen’s appreciation, 

operating income of (cid:711)49.0 billion (a year-on-year decrease of 27.8%) due to lower selling prices and increased 

development costs, and an operating income margin of 7.5% (a year-on-year decrease of 2.4 percentage points).

Risks, Opportunities, and Future Policies

Working toward the next stage of growth by responding to the increasing 

sophistication of automotive technologies and changes in the environment

In the automotive market, it is forecast that there will be a continuation in the diversification of power sources from the 

previous standard gasoline- and diesel-powered vehicles to hybrids, plug-in hybrids, electric cars and fuel cell vehicles. This 

will lead to increasing requirements for efficiency improvements in component performance, further performance 

improvements in environmental aspects, and enhanced safety aspects and IT developments associated with autonomous 

driving and the evolution of vehicle dynamics controls known as ADAS (Advanced Driver Assistance Systems). While there are 

risks in these kinds of environmental changes, they can also lead to opportunities to increase our market share. In response 

to the comfort, safety and environmental performance demanded in association with the increased sophistication of 

automotive technologies, NSK is adding to its 100 years of business development and accumulation of wide-ranging 

technologies by undertaking further research and development to achieve further growth in the Automotive Business.

In addition, in NSK’s strategic product field of EPS, demand for lower-assist products is gradually increasing. Although the 

number of vehicles equipped with column-type EPS system, a product in which we excel, continues to increase in accordance 

with the growth of the automotive market, the comparative slowing of the rate of growth can be considered a risk. Thus, 

although there are plans to stabilize and strengthen the profit foundation in the coming years by expanding the customer 

base with the column-type EPS systems, NSK will advance product development that leverages its technological edge so that 

rack-type EPS systems will become the growth drivers from the Sixth Mid-Term Management Plan onward.

NSK Group products are utilized in many industrial fields and end-products as well as in many automobiles that require 

high functionality. In the case of automobiles, should by any chance a product defect that leads to a large-scale product recall 

or product liability litigation arise, there is the risk that this could result in the incurrence of significant costs or in an erosion 

of society’s trust in the Company.

In recognition of the importance of quality, the NSK Group has established systems designed to ensure high quality and 

utilizes insurance that allows a certain level of risk cover. Continuing to redouble its efforts with regard to quality and safety in 

the years to come, the Company’s policy is to give these areas sufficient consideration. (Refer to pages 42–43 of this report for 

information on quality and safety management.)

34

NSK REPORT 2016

NSK REPORT 2016

35

0

14/3

13/3

8

6

4

2

0

(cid:674)(cid:715)(cid:675)
12

10

15/3

16/3

17/3
(Forecast)

Operating Income/Operating Income Margin

12/3
■  Operating Income (left)
-  Operating Income Margin

((cid:711) Billions)
100

80

60

40

20

5.1

5.1

22.6

25.0

10.0

9.9

65.7

67.9(cid:718)

7.5

49.0(cid:718)

8.3

49.2

Net Sales

((cid:711) Billions)
800

600

400

200

0

689.1(cid:718)

657.0

656.0(cid:718)

590.5

490.5

444.6

12/3

13/3

14/3

15/3

16/3

17/3
(Forecast)

Corporate Value Results

Review of Operations

Automotive

Business

Business Overview

NSK’s Automotive Business previously consisted of two categories that had formed 

the basis of its products: automotive bearings, such as hub unit bearings, and 

automotive components, including electric power steering (EPS) systems and 

automatic transmission components.

To respond to the trend for rapid changes in automobiles, however, from the fiscal 

year ending March 31, 2017, the Company has changed to a two-division HQ system: 

the Automotive Powertrain Division Headquarters, which supports the enhanced 

sophistication of automobiles via elemental components, and the Automotive Steering 

& Actuator Division Headquarters, which handles system components that serve an 

essential function in automobiles. Under the Automotive Technology Development 

Center, we incorporated the Powertrain bearing and Steering technology centers 

responsible for application engineering, as well as a cross-sector automotive 

technology organization in charge of new technology and product development.

Automotive technological innovation centered on the environment and safety is 

rapidly developing, and structural changes from technical standpoints, such as power 

source diversification and the evolution of vehicle dynamics controls geared toward 

autonomous driving is accelerating. Building off technologies the Company has 

accumulated up to now, NSK will contribute to improving the basic functions of the 

automobile(cid:693)running, turning and stopping(cid:693)through its components and system 

products.

(Refer to page 5 of this report for information on our net sales and main products.)

Business Environment

Directly affected by automotive sales around the world and production volumes of 

automakers, the Automotive Business is influenced by global economic trends. Over 

the mid- to-long term, global automotive production volume is forecast to serve as a 

growth driver in emerging markets and expand toward 100 million vehicles a year; 

automotive are thus considered a growth industry.

Against the backdrop of expansion in automotive production volume, the sales 

volumes in the automotive business are also expected to increase. As such, 

technological innovation in the automotive sector is becoming ever more imperative. 

Based on the business environment assumed in its Fifth Mid-Term Management 

Plan the Company is advancing business expansion and strengthening profitability by 

means of a new organizational structure. In more specific terms, the Company will 

expand its lineup of powertrain field-related products, evolve in electrical applications, 

develop lower-assist EPS, and introduce actuator products to the market.

(Refer to pages 28-29 for information on the Mid-Term Management Plan.)

*16/3 and 17/3 (forecast) to IFRS standards

A Look Back at the Year Ended March 31, 2016, and the Forecast for the Year Ending March 31, 2017
Gradual expansion continued in the year ended March 2016, new net sales and profit records set
During the year ended March 31, 2016, demand in the global automotive market continued its gradual expansion. In 
Japan, the Group’s sales declined due to sluggish sales of Japanese mini vehicles. In the Americas, however, EPS and 
automotive bearing sales rose due to robust demand in the North American market. In Europe, a continued gradual 
recovery in the automotive market led to higher sales. Despite slower growth in the automotive market, sales in China 
increased due to the impact of special tax incentives for compact cars. Although market conditions varied between 
countries, sales in other Asian countries also increased, primarily due to demand for EPS.

As a result, net sales in the Automotive Business totaled (cid:711)689.1 billion, and an increase in sales and the effects of 

cost reduction produced operating income of ¥68.0 billion and an operating income margin of 9.9%.

Although it is thought that automotive will continue to be a growth industry, it is expected that the pace of growth will 

slow during the next two to three years. It is forecast that global automotive production volumes will grow by 
approximately 3%, from 89.0 million units in the fiscal year ended March 31, 2016, to 92.0 million in the fiscal year ending 
March 31, 2017. It is expected that the number of vehicles produced by Japanese automakers will increase by about the 
same amount, approximately 3%.

Under these conditions and despite the expected increase in sales volume, the Company forecasts net sales in its 
Automotive Business of (cid:711)656.0 billion (a year-on-year decrease of 4.8%) due to the impact of the yen’s appreciation, 
operating income of (cid:711)49.0 billion (a year-on-year decrease of 27.8%) due to lower selling prices and increased 
development costs, and an operating income margin of 7.5% (a year-on-year decrease of 2.4 percentage points).

Risks, Opportunities, and Future Policies
Working toward the next stage of growth by responding to the increasing 
sophistication of automotive technologies and changes in the environment
In the automotive market, it is forecast that there will be a continuation in the diversification of power sources from the 
previous standard gasoline- and diesel-powered vehicles to hybrids, plug-in hybrids, electric cars and fuel cell vehicles. This 
will lead to increasing requirements for efficiency improvements in component performance, further performance 
improvements in environmental aspects, and enhanced safety aspects and IT developments associated with autonomous 
driving and the evolution of vehicle dynamics controls known as ADAS (Advanced Driver Assistance Systems). While there are 
risks in these kinds of environmental changes, they can also lead to opportunities to increase our market share. In response 
to the comfort, safety and environmental performance demanded in association with the increased sophistication of 
automotive technologies, NSK is adding to its 100 years of business development and accumulation of wide-ranging 
technologies by undertaking further research and development to achieve further growth in the Automotive Business.

In addition, in NSK’s strategic product field of EPS, demand for lower-assist products is gradually increasing. Although the 
number of vehicles equipped with column-type EPS system, a product in which we excel, continues to increase in accordance 
with the growth of the automotive market, the comparative slowing of the rate of growth can be considered a risk. Thus, 
although there are plans to stabilize and strengthen the profit foundation in the coming years by expanding the customer 
base with the column-type EPS systems, NSK will advance product development that leverages its technological edge so that 
rack-type EPS systems will become the growth drivers from the Sixth Mid-Term Management Plan onward.

NSK Group products are utilized in many industrial fields and end-products as well as in many automobiles that require 
high functionality. In the case of automobiles, should by any chance a product defect that leads to a large-scale product recall 
or product liability litigation arise, there is the risk that this could result in the incurrence of significant costs or in an erosion 
of society’s trust in the Company.

In recognition of the importance of quality, the NSK Group has established systems designed to ensure high quality and 
utilizes insurance that allows a certain level of risk cover. Continuing to redouble its efforts with regard to quality and safety in 
the years to come, the Company’s policy is to give these areas sufficient consideration. (Refer to pages 42–43 of this report for 
information on quality and safety management.)

34

NSK REPORT 2016

NSK REPORT 2016

35

The Underlying Strength of Corporate Value
NSK’s Four Core Technologies

Since its establishment, NSK has concentrated its efforts on the constant pursuit of new technologies and 
improvements in quality. NSK leads the world in each of its product fields: bearings, automotive components, and 
precision machinery and parts. The foundation that underpins those technologies consists of tribology, materials, 
numerical simulation and mechatronics, which are NSK’s core technologies. The technologies and products that have 
been created based on our four core technologies are contributing both to the development of industry across the 
world and to people’s abundant lifestyles. NSK will continue to engage in advanced technological development and 
provide highly functional, high-quality products that meet market needs in the years to come.

1

Tribology

Tribology is a technology that controls the friction and wear of 
sliding surfaces of materials that are in contact while in relative 
motion. This is the key technology for bearings that support the 
rotational or linear motion applications. The principle of 
bearings traces its origin to ancient Assyria, where the method 
used for transporting gigantic stones with relative ease involved 
placing logs underneath them. It can thus be said that the 
technology is based on human wisdom and ingenuity that date 
back to before the Christian era.

Referred to as the jewels of tribology technologies, bearings 
are used in the rotating parts in a variety of machines. Bearings 
contribute to reducing friction and friction-induced wear, 
preventing machine galling caused by frictional heat and 
energy-saving, long-serving and more reliable machines.

From a mural unearthed at Nineveh, the capital of ancient Assyria

2

Materials

Materials play a key role in enhancing the functionality and 
durability of bearings subjected to a harsh operating 
environment. If there are impurities contained in the bearing 
materials, even in extremely minute amounts, these will cause 
the bearing to break. For that reason, a special steel known as 
bearing steel is used in bearings that is practically free of 
impurities.

Aiming to develop products with even greater durability and 
reliability, NSK uses a wide variety of performance assessments 
and analytical technologies to develop new materials with 
optimal compositions and new heat treatment processes with 
optimal conditions. Moreover, the Company engages in 
technological developments in which new materials, such as 
ceramics and high polymeric materials, are utilized.

Ball (Steel Ball) Sphericity Comparison

(cid:724)Pachinko Ball (Japanese Pinball) Compared with a Bearing Ball

Fig. 1

Sphericity
12 microns

Sphericity
0.06 microns

Magnification:
2,000 times

Pachinko ball

Bearing ball

(cid:724)Standard Bearing Ball Compared with a Precision-Class Bearing Ball

Fig. 2

Sphericity
0.06 microns

Sphericity
0.02 microns

Magnification:
200,000 times

Standard bearing

Precision-class bearing

The performance of bearings are backed up by the high accuracy of 
the balls that are used. Even if you expanded a ball bearing 10 mm 
in diameter to match the size of Earth (12,000 km in diameter), the 
unevenness of its surface would still be less than the height of the 
Great Buddha statue at Kamakura in Japan (11.35 meters high).

The usual process by which a bearing breaks due to impurities

Impurities

Cracks appear where 
the ball passes

The cracks become larger, 
and the bearing breaks

Oil flow analysis of a tapered roller bearing

Modularization-compatible, high-performance EPS

3

Numerical Simulation

At a time when the demands made of products are increasingly 

sophisticated, the technologies that are indispensable in the 

optimal design of bearings and in product development are 

numerical simulation. For example, there could be a thousand 

ways for a parts combination to meet a certain condition. 

Determining which is the optimum combination would require 

the making of 1,000 types of trial products and innumerable 

experiments under the same matching test conditions. 

However, expending such an enormous amount of time and 

budgetary funds is impossible. What solves that kind of difficult 

problem is a computer simulation. It is precisely because of the 

enormous amount of accurate data that NSK has built up in its 

bearing R&D spanning 100 years that virtual performance and 

evaluation testing have become possible.

Taking advantage of NSK’s advanced numerical simulation 

also enables performance evaluations under which the testing 

of actual machinery is conducted under extremely difficult 

conditions. The diagram on the right is a simulation of the oil 

flow when a tapered roller bearing rotates. If the simulation can 

be conducted by a computer based on past data without testing 

on an actual machine, this brings about significant time and 

cost benefits.

4

Mechatronics

Mechatronics refers to technologies that combine mechanics 

and electronics. Placing part of the control of a machine onto 

electronic circuits and combining them with sensors and 

actuators achieves complex movements and enables the 

realization of difficult functions merely by combining machine 

elements.

Based on technologies in the mechanical field fostered 

through product development and at production sites, NSK has 

been honing its proprietary mechatronics technologies in 

combination with electronics and creating new products that 

exemplify MOTION & CONTROLTM.

A representative example is electric power steering (EPS). 

When a driver turns the steering wheel, a built-in motor 

amplifies the forces and reduces those from the driver’s 

steering inputs. In addition, when a tire is about to lose traction 

and skid, the electronic control system in an EPS will change the 

responses of the steering wheel and prompt the driver into the 

best handling to avoid a skid. When driving at high speed, the 

EPS cancels out the tire vibrations passed to the steering wheel 

by means of a motor and thus contributes greatly to safer and 

more comfortable driving.

36

NSK REPORT 2016

NSK REPORT 2016

37

The Underlying Strength of Corporate Value

NSK’s Four Core Technologies

Since its establishment, NSK has concentrated its efforts on the constant pursuit of new technologies and 

improvements in quality. NSK leads the world in each of its product fields: bearings, automotive components, and 

precision machinery and parts. The foundation that underpins those technologies consists of tribology, materials, 

numerical simulation and mechatronics, which are NSK’s core technologies. The technologies and products that have 

been created based on our four core technologies are contributing both to the development of industry across the 

world and to people’s abundant lifestyles. NSK will continue to engage in advanced technological development and 

provide highly functional, high-quality products that meet market needs in the years to come.

1

Tribology

Tribology is a technology that controls the friction and wear of 

sliding surfaces of materials that are in contact while in relative 

motion. This is the key technology for bearings that support the 

rotational or linear motion applications. The principle of 

bearings traces its origin to ancient Assyria, where the method 

used for transporting gigantic stones with relative ease involved 

placing logs underneath them. It can thus be said that the 

technology is based on human wisdom and ingenuity that date 

back to before the Christian era.

Referred to as the jewels of tribology technologies, bearings 

are used in the rotating parts in a variety of machines. Bearings 

contribute to reducing friction and friction-induced wear, 

preventing machine galling caused by frictional heat and 

energy-saving, long-serving and more reliable machines.

From a mural unearthed at Nineveh, the capital of ancient Assyria

2

Materials

Materials play a key role in enhancing the functionality and 

durability of bearings subjected to a harsh operating 

environment. If there are impurities contained in the bearing 

materials, even in extremely minute amounts, these will cause 

the bearing to break. For that reason, a special steel known as 

bearing steel is used in bearings that is practically free of 

impurities.

Aiming to develop products with even greater durability and 

reliability, NSK uses a wide variety of performance assessments 

and analytical technologies to develop new materials with 

optimal compositions and new heat treatment processes with 

optimal conditions. Moreover, the Company engages in 

technological developments in which new materials, such as 

ceramics and high polymeric materials, are utilized.

Ball (Steel Ball) Sphericity Comparison

(cid:724)Pachinko Ball (Japanese Pinball) Compared with a Bearing Ball

Fig. 1

Fig. 2

Sphericity

12 microns

Sphericity

0.06 microns

Magnification:

2,000 times

Pachinko ball

Bearing ball

(cid:724)Standard Bearing Ball Compared with a Precision-Class Bearing Ball

Sphericity

0.06 microns

Sphericity

0.02 microns

Magnification:

200,000 times

Standard bearing

Precision-class bearing

The performance of bearings are backed up by the high accuracy of 

the balls that are used. Even if you expanded a ball bearing 10 mm 

in diameter to match the size of Earth (12,000 km in diameter), the 

unevenness of its surface would still be less than the height of the 

Great Buddha statue at Kamakura in Japan (11.35 meters high).

The usual process by which a bearing breaks due to impurities

Impurities

Cracks appear where 

the ball passes

The cracks become larger, 

and the bearing breaks

Oil flow analysis of a tapered roller bearing

Modularization-compatible, high-performance EPS

3

Numerical Simulation

At a time when the demands made of products are increasingly 
sophisticated, the technologies that are indispensable in the 
optimal design of bearings and in product development are 
numerical simulation. For example, there could be a thousand 
ways for a parts combination to meet a certain condition. 
Determining which is the optimum combination would require 
the making of 1,000 types of trial products and innumerable 
experiments under the same matching test conditions. 
However, expending such an enormous amount of time and 
budgetary funds is impossible. What solves that kind of difficult 
problem is a computer simulation. It is precisely because of the 
enormous amount of accurate data that NSK has built up in its 
bearing R&D spanning 100 years that virtual performance and 
evaluation testing have become possible.

Taking advantage of NSK’s advanced numerical simulation 
also enables performance evaluations under which the testing 
of actual machinery is conducted under extremely difficult 
conditions. The diagram on the right is a simulation of the oil 
flow when a tapered roller bearing rotates. If the simulation can 
be conducted by a computer based on past data without testing 
on an actual machine, this brings about significant time and 
cost benefits.

4

Mechatronics

Mechatronics refers to technologies that combine mechanics 
and electronics. Placing part of the control of a machine onto 
electronic circuits and combining them with sensors and 
actuators achieves complex movements and enables the 
realization of difficult functions merely by combining machine 
elements.

Based on technologies in the mechanical field fostered 

through product development and at production sites, NSK has 
been honing its proprietary mechatronics technologies in 
combination with electronics and creating new products that 
exemplify MOTION & CONTROLTM.

A representative example is electric power steering (EPS). 

When a driver turns the steering wheel, a built-in motor 
amplifies the forces and reduces those from the driver’s 
steering inputs. In addition, when a tire is about to lose traction 
and skid, the electronic control system in an EPS will change the 
responses of the steering wheel and prompt the driver into the 
best handling to avoid a skid. When driving at high speed, the 
EPS cancels out the tire vibrations passed to the steering wheel 
by means of a motor and thus contributes greatly to safer and 
more comfortable driving.

36

NSK REPORT 2016

NSK REPORT 2016

37

The Underlying Strength of Corporate Value
Global Business Platform

In expanding business globally, NSK maintains the necessary sites, human resources and management structure as 
an essential foundation, and strives to expand business in each region while promoting global projects through 
collaboration between regions. While giving exhaustive consideration to being a good corporate citizen in each region, 
the Company is also endeavoring to further enhance and strengthen its global business foundation.

Global Sites

Global Management

Background to Globalization

Current Status of Global Sites

Advancement of Global Management

Organizations Supporting Global Management

As far as the Japanese manufacturing industry goes, NSK long has been 
advancing overseas expansion. Having continued its overseas exports that 
commenced in 1948 and started overseas production in Brazil, the United 
States and the United Kingdom in the 1970s, the Company has regarded 
these operations as the basis of its overseas business through their locally 
manufactured products. In addition to expanding its product lineup in 
association with the overseas relocations of its Japanese customers, 
primarily in the electrical sector and automobiles from the 1980s onward, the 
Company established production sites in China, Indonesia, Thailand, India 
and elsewhere against a backdrop of emerging market economic 
development at the start of the 1990s. Thereafter, the Company further 
increased its global expansion due to a number of factors, including business 
expansion in emerging markets, the globalization of automobile platforms 
and increased business with non-Japanese overseas customers. The 
overseas business currently accounts for nearly 70% of net sales.

Sales by Region (Based on Customer Location)

As of March 31, 2016, the Company had a total of 210 production, 
sales and technology sites in operation in 30 countries under six 
headquarters in six countries.

In addition to their responsibilities for developing business in 
each area, the respective sites are performing an important role 
in global project collaboration, which is currently on the 
increase. Group companies supply high-quality products in a 
stable manner by undertaking local production in response to 
customer demand, while the sales and technology centers in 
each area work to improve NSK’s brand power by offering rapid 
and detailed responses and services to customers’ various 
needs. Expanding into every area in the world, the network 
represents one of NSK’s essential business foundations.

United
Kingdom

(cid:61)131.8 billion
133.8

124.6

108.0 102.7

China

(cid:61)204.4 billion

210.2

167.2

Japan

(cid:61)318.4 billion

363.8

333.3

329.1

328.8

89.1

91.4

China

Japan

12/3

13/3

14/3

15/3

16/3

12/3
India

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

Singapore

Other Asia

(cid:61)137.0 billion
137.2

116.3

102.0

86.1

12/3

13/3

14/3

15/3

16/3

One of the themes under the Fourth MTP was the (cid:672)advancement of 

Regarding its Industrial Machinery Business and Automotive Business as 

global management.(cid:673) After gaining global consistency as the NSK 

its two business axes, NSK has adopted a matrix-type organization 

Group, this initiative aimed to build a system to enable the flexible 

underpinned by the regional headquarters in charge of business execution 

business management of the local entity in each region.*

in each region and a functional headquarters that supports 

The Company has taken steps to further enhance its both 

cross-organizational business from a functional standpoint.

business and functional integration capabilities by promoting the 

From the business execution standpoint, a regional headquarters is 

localization of regional management and strengthening 

positioned to oversee a region under each business headquarters, and 

collaboration between headquarters and regions through global 

each business site is positioned beneath each regional headquarters. In 

meetings.

*NSK establishes each site and divides the 

sites into Japan, the Americas, Europe, 

China, ASEAN, India and South Korea by 

the region in which they are located.

(cid:61)183.7 billion

164.8

The Americas

134.5

103.4

86.3

this way, directions and directives with regard to business planning and the 

execution of strategy are made to flow from the business headquarters to 

the regional headquarters and from there to the business sites. On the 

other hand, each functional headquarters located at headquarters in 

Japan is responsible for functions that are common throughout the entire 

Group, such as human resources, legal affairs and accounting, and 

oversees and supports from policy and standardization aspects.

The Company is aiming for two effects by having adopted this kind of 

organizational form: 1) to reduce the duplication of operations and costs 

under a policy that maintains consistency on a global basis with regard to 

common functions across the entire Company and, 2) from the business 

execution standpoint, to delegate decision making to lower-level 

organizations, based on outlines determined by higher-level organizations, 

and to enable faster responses.

Automotive Business 

(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)Division Headquarters

Industrial Machinery Business 

(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)Division Headquarters

Japan

The 

Americas

Europe 

China

ASEAN

India

South 

Korea

Functional Division 

Headquarters

Globally Minded Talent

Global Talent Management

Global Posts, Global Management Resources

Under its Management Principles, the NSK Group works (cid:672)to provide 

The NSK Group controls key management personnel posts as global posts. 

challenges and opportunities to its employees, while channeling their 

This includes the regional key management posts that have responsibilities 

skills and fostering their creativity and individuality.(cid:673) and (cid:672)to manage its 

for business and functions in each region and global business as well as key 

business from an international perspective and to develop a strong 

posts of the Japanese headquarters. In the case of the Asian region and 

presence throughout the world.(cid:673) In order to achieve business efficiency 

some of the posts, there are instances in which Japanese employees on 

from an optimal global viewpoint while promoting the localization of 

assignment fill the posts because of business features or differences in the 

operations that are spread across the world, management human 

expansion period, but as progress with global management is made, the rate 

resources, who possess global views regardless of their region of origin, 

at which local human resources are taking up posts is certainly on the rise. 

and the recruitment and training of local human resources to support 

In the years to come, amid ongoing responses to changes in the business 

them. are considered important. For that reason, NSK is aiming for the 

environment, it is believed that there will naturally be further advances made 

development of global talent management by introducing a training 

in the diversification of management personnel. The Company will embark 

program to select and educate human resources who have the potential 

on the streamlining of its systems to ensure excellent human resources and 

to become key executives as well as a common global succession plan.

smoothly progress with personnel changes between regions and posts.

NSK REPORT 2016

39

Headquarters ((cid:724))
6 locations in 6 countries

Production Sites
64 locations in 13 countries

Sales Sites
120 locations in 29 countries

Representative Offices
6 locations in 5 countries

R&D Centers
14 locations in 9 countries

38

NSK REPORT 2016

The Americas
U.S.A.
Canada
Mexico
Brazil
Peru
Argentina
Total
Europe/Middle 
East/Africa
U.K.
Germany
France
Italy
Netherlands
Spain
Poland
Russia
Turkey
UAE 
South Africa
Total

1

1

4
1

4

9

2
2
1
1
1
1
3
1
1
1
1
15

2

2

1
1

1

3

(cid:725) (cid:723) (cid:724) (cid:726) (cid:727)
1
6
32
18
1
1
3
2
2
2
6
4

(cid:725) (cid:723) (cid:724) (cid:726) (cid:727)
1
10
1
(cid:3191)
3
1
5
1
1
21

1

4

6

4

46

64

1
9
4
1
84

120

1
1

3

6

9

14

Asia/Oceania
Japan 
China
Taiwan
South Korea
Singapore
Indonesia
Thailand
Malaysia
Philippines
Vietnam
India
Australia
New Zealand
Total

Total

(cid:725)Headquarters
(cid:723)Production sites
(cid:724)Sales sites
(cid:726)Representative offices
(cid:727)R&D centers

21
12

3
2
2

1
1

2

1

9

1

1

7

1

2

1

1

1

1

 
The Underlying Strength of Corporate Value

Global Business Platform

In expanding business globally, NSK maintains the necessary sites, human resources and management structure as 

an essential foundation, and strives to expand business in each region while promoting global projects through 

collaboration between regions. While giving exhaustive consideration to being a good corporate citizen in each region, 

the Company is also endeavoring to further enhance and strengthen its global business foundation.

Global Sites

Global Management

Background to Globalization

Current Status of Global Sites

Advancement of Global Management

Organizations Supporting Global Management

As far as the Japanese manufacturing industry goes, NSK long has been 

As of March 31, 2016, the Company had a total of 210 production, 

advancing overseas expansion. Having continued its overseas exports that 

sales and technology sites in operation in 30 countries under six 

commenced in 1948 and started overseas production in Brazil, the United 

headquarters in six countries.

States and the United Kingdom in the 1970s, the Company has regarded 

In addition to their responsibilities for developing business in 

these operations as the basis of its overseas business through their locally 

each area, the respective sites are performing an important role 

manufactured products. In addition to expanding its product lineup in 

in global project collaboration, which is currently on the 

association with the overseas relocations of its Japanese customers, 

increase. Group companies supply high-quality products in a 

primarily in the electrical sector and automobiles from the 1980s onward, the 

stable manner by undertaking local production in response to 

Company established production sites in China, Indonesia, Thailand, India 

customer demand, while the sales and technology centers in 

and elsewhere against a backdrop of emerging market economic 

each area work to improve NSK’s brand power by offering rapid 

development at the start of the 1990s. Thereafter, the Company further 

and detailed responses and services to customers’ various 

increased its global expansion due to a number of factors, including business 

needs. Expanding into every area in the world, the network 

expansion in emerging markets, the globalization of automobile platforms 

represents one of NSK’s essential business foundations.

and increased business with non-Japanese overseas customers. The 

overseas business currently accounts for nearly 70% of net sales.

Sales by Region (Based on Customer Location)

United

Kingdom

133.8

124.6

108.0 102.7

(cid:61)131.8 billion

China

(cid:61)204.4 billion

210.2

167.2

Japan

(cid:61)318.4 billion

363.8

333.3

329.1

328.8

One of the themes under the Fourth MTP was the (cid:672)advancement of 
global management.(cid:673) After gaining global consistency as the NSK 
Group, this initiative aimed to build a system to enable the flexible 
business management of the local entity in each region.*

The Company has taken steps to further enhance its both 
business and functional integration capabilities by promoting the 
localization of regional management and strengthening 
collaboration between headquarters and regions through global 
meetings.

*NSK establishes each site and divides the 
sites into Japan, the Americas, Europe, 
China, ASEAN, India and South Korea by 
the region in which they are located.

The Americas

(cid:61)183.7 billion

164.8

The Americas

134.5

103.4

86.3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

12/3

13/3

14/3

15/3

16/3

89.1

91.4

China

Japan

India

Singapore

Other Asia

(cid:61)137.0 billion

137.2

116.3

102.0

86.1

12/3

13/3

14/3

15/3

16/3

Regarding its Industrial Machinery Business and Automotive Business as 
its two business axes, NSK has adopted a matrix-type organization 
underpinned by the regional headquarters in charge of business execution 
in each region and a functional headquarters that supports 
cross-organizational business from a functional standpoint.

From the business execution standpoint, a regional headquarters is 
positioned to oversee a region under each business headquarters, and 
each business site is positioned beneath each regional headquarters. In 
this way, directions and directives with regard to business planning and the 
execution of strategy are made to flow from the business headquarters to 
the regional headquarters and from there to the business sites. On the 
other hand, each functional headquarters located at headquarters in 
Japan is responsible for functions that are common throughout the entire 
Group, such as human resources, legal affairs and accounting, and 
oversees and supports from policy and standardization aspects.

The Company is aiming for two effects by having adopted this kind of 
organizational form: 1) to reduce the duplication of operations and costs 
under a policy that maintains consistency on a global basis with regard to 
common functions across the entire Company and, 2) from the business 
execution standpoint, to delegate decision making to lower-level 
organizations, based on outlines determined by higher-level organizations, 
and to enable faster responses.

Automotive Business 
(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)Division Headquarters

Industrial Machinery Business 
(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)(cid:633)Division Headquarters

Japan

The 
Americas

Europe 

China

ASEAN

India

South 
Korea

Functional Division 
Headquarters

The Americas

(cid:725) (cid:723) (cid:724) (cid:726) (cid:727)

Asia/Oceania

(cid:725) (cid:723) (cid:724) (cid:726) (cid:727)

Globally Minded Talent

Global Talent Management

Global Posts, Global Management Resources

Under its Management Principles, the NSK Group works (cid:672)to provide 
challenges and opportunities to its employees, while channeling their 
skills and fostering their creativity and individuality.(cid:673) and (cid:672)to manage its 
business from an international perspective and to develop a strong 
presence throughout the world.(cid:673) In order to achieve business efficiency 
from an optimal global viewpoint while promoting the localization of 
operations that are spread across the world, management human 
resources, who possess global views regardless of their region of origin, 
and the recruitment and training of local human resources to support 
them. are considered important. For that reason, NSK is aiming for the 
development of global talent management by introducing a training 
program to select and educate human resources who have the potential 
to become key executives as well as a common global succession plan.

The NSK Group controls key management personnel posts as global posts. 
This includes the regional key management posts that have responsibilities 
for business and functions in each region and global business as well as key 
posts of the Japanese headquarters. In the case of the Asian region and 
some of the posts, there are instances in which Japanese employees on 
assignment fill the posts because of business features or differences in the 
expansion period, but as progress with global management is made, the rate 
at which local human resources are taking up posts is certainly on the rise. 
In the years to come, amid ongoing responses to changes in the business 
environment, it is believed that there will naturally be further advances made 
in the diversification of management personnel. The Company will embark 
on the streamlining of its systems to ensure excellent human resources and 
smoothly progress with personnel changes between regions and posts.

NSK REPORT 2016

39

Headquarters ((cid:724))

6 locations in 6 countries

Production Sites

64 locations in 13 countries

Sales Sites

120 locations in 29 countries

Representative Offices

6 locations in 5 countries

R&D Centers

14 locations in 9 countries

38

NSK REPORT 2016

1

1

1

U.S.A.

Canada

Mexico

Brazil

Peru

Argentina

Total

Europe/Middle 

East/Africa

U.K.

Germany

France

Italy

Netherlands

Spain

Poland

Russia

Turkey

UAE 

South Africa

Total

1

1

2

7

1

1

9

4

1

4

10

21

3

1

5

1

1

2

2

1

1

1

1

3

1

1

1

1

1

9

15

2

1

(cid:3191)

1

2

1

1

1

3

Japan 

China

Taiwan

South Korea

Singapore

Indonesia

Thailand

Malaysia

Philippines

Vietnam

India

Australia

New Zealand

Total

Total

1

1

1

1

4

6

21

12

32

18

2

3

2

2

4

3

2

2

2

6

4

1

9

4

1

46

64

84

120

1

1

1

3

6

(cid:725)Headquarters

(cid:723)Production sites

(cid:724)Sales sites

(cid:726)Representative offices

(cid:727)R&D centers

6

1

1

1

9

14

 
The Underlying Strength of Corporate Value
CSR / ESG Management

Approach to CSR

NSK’s View of CSR
NSK’s Mission Statement makes clear NSK’s commitment to 
contributing to the development of society and to the protection 
of the global environment, and NSK’s Management Principles 
set the course to realizing these goals (see page 1). The NSK 
products have the special characteristic of aiding the smooth 
functioning of a wide range of machinery, and they support the 
reliability, safety and energy efficiency of the machines into 
which they are incorporated. NSK regards its fundamental 
corporate activity as contributing to smoothly running, safe 

societies, protection of the global environment and the 
realization of sustainable societies through the supply of those 
products(cid:693)that is, through the Company’s main business. NSK 
aims to achieve greater corporate value and sustainable growth 
by ensuring that all directors and employees are firmly 
committed to NSK’s purpose and by making sincere efforts to 
contribute to business growth and society by taking the 
perspective of customers and other stakeholders.

Improved
corporate 
value
of NSK

Sustainable
society

Goals for a sustainable 
society
NSK(cid:671)s Initiatives
(cid:724) Environment
(cid:724) Society
(cid:724) Governance

A   s o c iety of well-being and safety

Protection of the global environment

Shareholders 

and Investors

Local 

Communities

Elimination of
poverty
and hunger

A peaceful 
society

A safe and 
healthy 
society

A society free 
from 
discrimination

A just society

Social initiatives
(cid:724) Research and development
(cid:724) Creating quality to earn the confidence of society
(cid:724) Creating a dynamic work environment
(cid:724) Working with local communities

NSK

Governance initiatives
(cid:724) Corporate governance
(cid:724) Internal control and risk management
(cid:724) Compliance
(cid:724) Supply chain management

Environmental initiatives
(cid:724) Environmental management
(cid:724) Creating environmentally 

friendly products
(cid:724) Global warming 

countermeasures

Prevention of 
resource 
depletion

Mitigation of
climate change

(cid:724) Measures for resource 

conservation and recycling
(cid:724) Reducing the use of environmentally 

harmful substances

(cid:724) Biodiversity conservation

Shift to 
clean energy

Biodiversity 
conservation

NSK’s CSR Activities and Material Issues

Goals for a sustainable society

(cid:724) Elimination of poverty and hunger
(cid:724) A peaceful society
(cid:724) A safe and healthy society
(cid:724) A society free from discrimination
(cid:724) A just society
(cid:724) Prevention of resource depletion
(cid:724) Mitigation of climate change
(cid:724) Shift to clean energy
(cid:724) Biodiversity conservation

Reflecting the 
needs of 
stakeholders

The role played by NSK

(cid:724) Contribution to a society of well-being and safety
(cid:724) Protection of the global environment

Addressing 
material CSR issues in a bid 
to realize a sustainable society 
and improve NSK’s corporate value

Creating quality to earn the confidence of society

Safety Management (cid:700) P.43
Creating safe and healthy workplaces

1 Quality Management (cid:700) P.42
2
3
4

Human Resource Management (cid:700) P.46
Creating a dynamic work environment

Environmental Management (cid:700) P.44
Activities aimed at protecting the global environment

CSR/ESG Management Platform
Corporate Governance (cid:700) P.48
Compliance (cid:700) P.52

NSK’s Initiatives

See the NSK CSR Report for detailed information on the Company’s initiatives:
http://www.nsk.com/sustainability/csrReport/index.html

40

NSK REPORT 2016

NSK REPORT 2016

41

Relationships with Stakeholders

Customers

Suppliers

Employees

The NSK’s business is built on the 

trust of a variety of stakeholders. 

NSK believes that active 

communication is the key to building 

better relationships with its 

stakeholders. 

 The Company is also striving to 

build a corporate culture in which 

each site, each department, and 

each and every officer and employee 

recognizes the needs of 

stakeholders and the broader 

society and can reflect those needs 

in their own everyday work.

Future 

Generations

Customers

Employees

The NSK’s customers are companies that purchase NSK’s 

Employees, who create NSK’s superior technology, services, and 

products and also the end users of the devices and machines 

high-quality products and who support the NSK’s business 

that incorporate NSK’s products. The Company aims to develop 

success, are an important asset of the Company(cid:693)the foundation of 

and provide high-quality, safe, reliable products that meet 

its business success. NSK believes that the source of its business 

customer needs, and seeks customer input through technology 

growth is employees who engage enthusiastically in their work and 

exchanges and everyday sales contacts.

enjoy high job satisfaction. While fostering communication between 

all parties concerned, the Company aims to create workplaces that 

enable all employees to reach their full potential.

Suppliers

Local Communities

The NSK’s business is dependent upon numerous suppliers. The 

NSK has developed a global business with nearly 200 business 

Company aims to ensure mutual growth by communicating with 

sites around the world. The Company aims to be valued as a 

suppliers about the needs of customers and other stakeholders 

member of local communities by fostering good communication 

and by pursuing joint technical development, quality, CSR and 

with the members of the communities in which it does business, 

other activities.

understanding their needs, and contributing to their 

development.

Shareholders and Investors

Future Generations

Shareholders and investors are important stakeholders, and 

NSK sees children and students, the torchbearers of the future, 

they expect NSK to keep growing. NSK seeks to obtain their 

as important stakeholders. The Company is working to one day 

understanding by disclosing business and financial information 

hand over a rich environment and safe society to the next 

in a timely and appropriate manner to shareholders and 

generation and to help build a more sustainable society by 

investors. To ensure sustainable growth and increase corporate 

supporting the growth of future generations through programs 

value, the Company seeks to increase the transparency and 

such as science classes and internships.

soundness of management and to practice business that is 

well-balanced in terms of the society and environment.

The Underlying Strength of Corporate Value

CSR / ESG Management

Approach to CSR

NSK’s View of CSR

NSK’s Mission Statement makes clear NSK’s commitment to 

societies, protection of the global environment and the 

contributing to the development of society and to the protection 

realization of sustainable societies through the supply of those 

of the global environment, and NSK’s Management Principles 

products(cid:693)that is, through the Company’s main business. NSK 

set the course to realizing these goals (see page 1). The NSK 

aims to achieve greater corporate value and sustainable growth 

products have the special characteristic of aiding the smooth 

by ensuring that all directors and employees are firmly 

functioning of a wide range of machinery, and they support the 

committed to NSK’s purpose and by making sincere efforts to 

reliability, safety and energy efficiency of the machines into 

contribute to business growth and society by taking the 

which they are incorporated. NSK regards its fundamental 

perspective of customers and other stakeholders.

corporate activity as contributing to smoothly running, safe 

Improved

corporate 

value

of NSK

Sustainable

society

Goals for a sustainable 

society

NSK(cid:671)s Initiatives

(cid:724) Environment

(cid:724) Society

(cid:724) Governance

A   s o c iety of well-being and safety

Protection of the global environment

Elimination of

poverty

and hunger

A peaceful 

society

A safe and 

healthy 

society

A society free 

from 

discrimination

Social initiatives

(cid:724) Research and development

(cid:724) Creating quality to earn the confidence of society

(cid:724) Environmental management

(cid:724) Creating a dynamic work environment

(cid:724) Working with local communities

NSK

Environmental initiatives

(cid:724) Creating environmentally 

friendly products

(cid:724) Global warming 

countermeasures

Prevention of 

resource 

depletion

Mitigation of

climate change

(cid:724) Measures for resource 

conservation and recycling

(cid:724) Reducing the use of environmentally 

harmful substances

(cid:724) Biodiversity conservation

Shift to 

clean energy

Biodiversity 

conservation

Governance initiatives

(cid:724) Corporate governance

(cid:724) Internal control and risk management

(cid:724) Compliance

A just society

(cid:724) Supply chain management

NSK’s CSR Activities and Material Issues

Goals for a sustainable society

(cid:724) Elimination of poverty and hunger

(cid:724) A peaceful society

(cid:724) A safe and healthy society

(cid:724) A society free from discrimination

(cid:724) A just society

(cid:724) Prevention of resource depletion

(cid:724) Mitigation of climate change

(cid:724) Shift to clean energy

(cid:724) Biodiversity conservation

Reflecting the 

needs of 

stakeholders

The role played by NSK

(cid:724) Contribution to a society of well-being and safety

(cid:724) Protection of the global environment

Addressing 

material CSR issues in a bid 

to realize a sustainable society 

and improve NSK’s corporate value

1 Quality Management (cid:700) P.42

Creating quality to earn the confidence of society

2

3

4

Safety Management (cid:700) P.43

Creating safe and healthy workplaces

Environmental Management (cid:700) P.44

Activities aimed at protecting the global environment

Human Resource Management (cid:700) P.46

Creating a dynamic work environment

CSR/ESG Management Platform

Corporate Governance (cid:700) P.48

Compliance (cid:700) P.52

NSK’s Initiatives

See the NSK CSR Report for detailed information on the Company’s initiatives:

http://www.nsk.com/sustainability/csrReport/index.html

Relationships with Stakeholders
The NSK’s business is built on the 
trust of a variety of stakeholders. 
NSK believes that active 
communication is the key to building 
better relationships with its 
stakeholders. 

 The Company is also striving to 
build a corporate culture in which 
each site, each department, and 
each and every officer and employee 
recognizes the needs of 
stakeholders and the broader 
society and can reflect those needs 
in their own everyday work.

Customers

Suppliers

Employees

Shareholders 
and Investors

Local 
Communities

Future 
Generations

Customers

Employees

The NSK’s customers are companies that purchase NSK’s 
products and also the end users of the devices and machines 
that incorporate NSK’s products. The Company aims to develop 
and provide high-quality, safe, reliable products that meet 
customer needs, and seeks customer input through technology 
exchanges and everyday sales contacts.

Employees, who create NSK’s superior technology, services, and 
high-quality products and who support the NSK’s business 
success, are an important asset of the Company(cid:693)the foundation of 
its business success. NSK believes that the source of its business 
growth is employees who engage enthusiastically in their work and 
enjoy high job satisfaction. While fostering communication between 
all parties concerned, the Company aims to create workplaces that 
enable all employees to reach their full potential.

Suppliers

Local Communities

The NSK’s business is dependent upon numerous suppliers. The 
Company aims to ensure mutual growth by communicating with 
suppliers about the needs of customers and other stakeholders 
and by pursuing joint technical development, quality, CSR and 
other activities.

NSK has developed a global business with nearly 200 business 
sites around the world. The Company aims to be valued as a 
member of local communities by fostering good communication 
with the members of the communities in which it does business, 
understanding their needs, and contributing to their 
development.

Shareholders and Investors

Future Generations

Shareholders and investors are important stakeholders, and 
they expect NSK to keep growing. NSK seeks to obtain their 
understanding by disclosing business and financial information 
in a timely and appropriate manner to shareholders and 
investors. To ensure sustainable growth and increase corporate 
value, the Company seeks to increase the transparency and 
soundness of management and to practice business that is 
well-balanced in terms of the society and environment.

NSK sees children and students, the torchbearers of the future, 
as important stakeholders. The Company is working to one day 
hand over a rich environment and safe society to the next 
generation and to help build a more sustainable society by 
supporting the growth of future generations through programs 
such as science classes and internships.

40

NSK REPORT 2016

NSK REPORT 2016

41

The Underlying Strength of Corporate Value
CSR / ESG Management

Material CSR Issues

(cid:781)

Quality Management

Creating Quality to Earn the Confidence of Society

NSK’s Approach

NSK aims to become (cid:672)No. 1 in Total Quality.(cid:673) In other words, the 
Company is working to achieve the industry’s best quality in 
everything it delivers(cid:693)not only products and services but also 
information. NSK believes that this commitment to quality 
ensures that its products will satisfy customers all over the world.

Quality Assurance Vision 2026

To strengthen Group-wide initiatives, NSK’s management checks 
the status of quality control and directs all necessary measures in a 
top-down manner through meetings of the Quality Board, which is 
chaired by the president and composed of directors in charge of 
each business division headquarters. In March 2015, NSK put in 
place the Quality Assurance Vision 2026 as a part of efforts to 
identify specific targets through to 2026. As indicated at the right of 
the page, this vision also clarifies the ideal state to which the 
Company aspires. Guided by this vision, NSK will work diligently to 
achieve a level of (cid:672)NSK Quality(cid:673) that engenders trust and contributes 

to the safety and peace of mind of customers. In specific terms, the 
Company will endeavor to enhance the quality of its products, work 
and human resources, key elements that provide the underlying 
strength of its business activities, while at the same time 
incorporating the necessary quality to deliver attractive products 
that reflect the requirements of customers.

NSK Quality
Safety/Smartness/Confidence for customer

[Customer 1st] [100(cid:715) conforming article]

The ideal state to which the Company aspires

(cid:724)  Social contribution by product quality
(cid:724)  Quality constitution appraised by customers
(cid:724)  All employees think and act based on the quality 1st 

principle under high-quality ethics 

The Fifth Mid-Term Management Plan (FY2016 to FY2018)

1.  Fostering quality-first culture and human development
2.  Enhancing preventive measures for quality monitoring and audit 
3.  Establishing a field quality responsibility system
4.  Reasserting strict adherence to quality control basic matters　
5.  Enhancing site control ability based on 5 GEN-Principle*
*A set of Japanese principles that focus on (cid:672)GEN-ba,(cid:673) the ACTUAL frontline; (cid:672)GEN-butsu,(cid:673) the ACTUAL item or product; (cid:672)GEN-jitsu,(cid:673) the ACTUAL 
condition or situation; (cid:672)GEN-ri,(cid:673) the ACTUAL principle or theory; and (cid:672)GEN-soku,(cid:673) the ACTUAL rules or standards.

Initiatives to Achieve Higher Quality

NSK recognizes that quality can be classified into the field, design, 
manufacturing and supplier components. On this basis, the 
Company makes every effort to enhance quality in order to garner 
the high acclaim of customers.

Initiatives Aimed at Enhancing Field Quality

As a company that services the manufacturing sector, NSK works 
diligently to achieve a level of quality that meets the expectations 
of the market and end users. Looking beyond the level of quality 
that satisfies its direct customers in the manufacturing industry, 
the Company strives to accurately grasp the needs of end users 
while putting in place a structure that is capable of advancing 
manufacturing proposals.

Initiatives Aimed at Enhancing Design Quality

NSK is endeavoring to enhance the quality of its design 
capabilities by incorporating feedback from market customers. 
The Company makes every effort to design products with a 
superior level of quality by meeting its own unique level of quality 
targets over and above the basic quality that customers have come 
to expect.

42

NSK REPORT 2016

Field 
quality

Design 
quality

Initiatives aimed 
at enhancing quality

Supplier 
quality

Manufacturing 
quality

(cid:12195)Degree of Customer Satisfaction (with FY2012 as a base of 100)

110

100

90

80

70

0

100

99.8

104.8

105.6

2012
(Base FY)

2013

2014

2015

(FY)

NSK employs the lost-worktime injury rate (the number of persons 

absent from work due to occupational accidents (cid:696) total actual 

Global

working hours (cid:695) 1,000,000) as a key safety management 

performance indicator. In fiscal 2015, the global lost-worktime injury 

rate was 0.70, down 0.10 compared with the previous fiscal year.

Initiatives Aimed at Enhancing Manufacturing Quality

Initiatives Aimed at Enhancing Supplier Quality

NSK works diligently to deliver a consistent high level of product 

High-quality materials and parts, as well as other key inputs 

quality that meets customers’ requirements. In addition to 

including various types of oils and greases, are essential in the 

building manufacturing processes that focus on the 4Ms 

manufacture of high-quality products. NSK engages in a wide 

(manpower, machinery, materials and methods), the Company is 

range of activities aimed at enhancing quality based on strong ties 

looking to enhance the quality of its products.

of mutual trust with suppliers.

To build quality into each process, the Company is promoting the NSK Product Development System (NPDS). 

This system is used for new projects and is designed to achieve 

In fiscal 2015, energies were channeled toward ensuring that 

efficient mass production of high-quality products by solving 

Quick DRs were firmly entrenched within the Company’s 

problems at key points in each process before moving on to the 

manufacturing operations. Quick DRs entail efficient design 

next stage. Moving forward, NSK will deploy this innovative NPDS 

reviews that focus on the parts of the design that have been 

revised.

Development 

and design

Prototype 

manufacture

Pilot 

production

Pilot mass 

production

Mass 

production

globally.

(cid:12195)Outline of the NPDS

Process

Product 

planning

Specialists perform rigorous and 

objective checks to confirm these items

Confirmation items

Determination for transition to the 

next process

Can the product 

be designed to satisfy 

customer needs?

Can it be processed

and assembled

according to the design?

Can it be processed and 

assembled using the 

intended methods 

in mass production?

Can it be processed 

and assembled 

using the same methods 

in mass production?

Material CSR Issues

2

Safety Management

Creating Safe and Healthy Workplaces

Basic Approach

To protect the safety and health of each and every employee, NSK 

undertakes initiatives with the following basic philosophy: (cid:672)Safety is 

the first and foremost priority.(cid:673)

Striving to ensure workplace safety, the Company implements 

measures to address unsafe equipment and facilities while 

promoting a set of uniform global standards across the Group as a 

whole. At the same time, proactive measures are being taken to 

share information with employees and to ferment a culture in which 

workers openly caution each other through mutual education.

Occupational Safety and Health Management System

NSK realizes how important it is to be proactive about safety and 

health in the workplace, which forms the heart of manufacturing. 

This is the key to providing an environment in which employees can 

reach their full potential. Based on this conviction, NSK regularly 

convenes the NSK Central Occupational Health and Safety Council, 

which involves both labor and management, to set the course for 

labor issues for the entire company. Following the course 

determined by the council, NSK is building an occupational safety 

and health management system that complies with OHSAS 18001 

and other related regulations while striving to foster a (cid:672)safety first(cid:673) 

corporate culture that fully engages all employees at each site.

The Company is sharing information globally about 

occupational accidents that have occurred within the Group and is 

making every effort to prevent similar accidents from reoccurring. 

NSK analyzes the information globally and implements effective 

prevention measures.

Occupational Accidents

(cid:12195)Occupational Safety Structure

NSK Central Occupational Health and Safety Council

NSK Central Occupational Health and Safety 

Council Secretariat Liaison Committee

Health and safety committee at each site

Health and safety committee in each department (section)

Health and safety committee in each workplace (group)

Individual group members

(cid:12195)Occupational Safety and Health Management System

Announcement of safety and 

health policy by management

Act

Continuous 

improvement

Spiral up

Do

Plan

Check

Review

Basic elements 

of system

(cid:724) Reflect 

opinions of 

employees

(cid:724) Upgrade 

systems

(cid:724) Document 

procedures

(cid:724) Control 

records

(cid:12195)Lost-Worktime Injury Rate

FY2014

FY2015

In Japan

Outside Japan

0.44

1.00

0.80

1.06

0.32

0.91

0.70

1.06

Japan’s Manufacturing Industry (Average)

Lost-worktime injury rate = Number of persons absent from work due to occupational 

accidents (cid:696) Total actual working hours (cid:695) 1,000,000. Defined as occupational accidents 

involving one or more days of absence from work.

NSK REPORT 2016

43

The Underlying Strength of Corporate Value

CSR / ESG Management

Material CSR Issues

(cid:781)

Quality Management

Creating Quality to Earn the Confidence of Society

NSK’s Approach

NSK aims to become (cid:672)No. 1 in Total Quality.(cid:673) In other words, the 

to the safety and peace of mind of customers. In specific terms, the 

Company is working to achieve the industry’s best quality in 

Company will endeavor to enhance the quality of its products, work 

everything it delivers(cid:693)not only products and services but also 

and human resources, key elements that provide the underlying 

information. NSK believes that this commitment to quality 

strength of its business activities, while at the same time 

ensures that its products will satisfy customers all over the world.

incorporating the necessary quality to deliver attractive products 

that reflect the requirements of customers.

Quality Assurance Vision 2026

To strengthen Group-wide initiatives, NSK’s management checks 

the status of quality control and directs all necessary measures in a 

top-down manner through meetings of the Quality Board, which is 

chaired by the president and composed of directors in charge of 

each business division headquarters. In March 2015, NSK put in 

place the Quality Assurance Vision 2026 as a part of efforts to 

identify specific targets through to 2026. As indicated at the right of 

the page, this vision also clarifies the ideal state to which the 

Company aspires. Guided by this vision, NSK will work diligently to 

achieve a level of (cid:672)NSK Quality(cid:673) that engenders trust and contributes 

NSK Quality

Safety/Smartness/Confidence for customer

[Customer 1st] [100(cid:715) conforming article]

The ideal state to which the Company aspires

(cid:724)  Social contribution by product quality

(cid:724)  Quality constitution appraised by customers

(cid:724)  All employees think and act based on the quality 1st 

principle under high-quality ethics 

The Fifth Mid-Term Management Plan (FY2016 to FY2018)

1.  Fostering quality-first culture and human development

2.  Enhancing preventive measures for quality monitoring and audit 

3.  Establishing a field quality responsibility system

4.  Reasserting strict adherence to quality control basic matters　

5.  Enhancing site control ability based on 5 GEN-Principle*

*A set of Japanese principles that focus on (cid:672)GEN-ba,(cid:673) the ACTUAL frontline; (cid:672)GEN-butsu,(cid:673) the ACTUAL item or product; (cid:672)GEN-jitsu,(cid:673) the ACTUAL 

condition or situation; (cid:672)GEN-ri,(cid:673) the ACTUAL principle or theory; and (cid:672)GEN-soku,(cid:673) the ACTUAL rules or standards.

Initiatives to Achieve Higher Quality

NSK recognizes that quality can be classified into the field, design, 

manufacturing and supplier components. On this basis, the 

Company makes every effort to enhance quality in order to garner 

the high acclaim of customers.

Initiatives Aimed at Enhancing Field Quality

As a company that services the manufacturing sector, NSK works 

diligently to achieve a level of quality that meets the expectations 

of the market and end users. Looking beyond the level of quality 

that satisfies its direct customers in the manufacturing industry, 

the Company strives to accurately grasp the needs of end users 

while putting in place a structure that is capable of advancing 

manufacturing proposals.

Initiatives Aimed at Enhancing Design Quality

NSK is endeavoring to enhance the quality of its design 

capabilities by incorporating feedback from market customers. 

The Company makes every effort to design products with a 

superior level of quality by meeting its own unique level of quality 

targets over and above the basic quality that customers have come 

to expect.

42

NSK REPORT 2016

110

100

90

80

70

0

Field 

quality

Design 

quality

Initiatives aimed 

at enhancing quality

Supplier 

quality

Manufacturing 

quality

(cid:12195)Degree of Customer Satisfaction (with FY2012 as a base of 100)

100

99.8

104.8

105.6

2012

(Base FY)

2013

2014

2015

(FY)

Initiatives Aimed at Enhancing Manufacturing Quality

Initiatives Aimed at Enhancing Supplier Quality

NSK works diligently to deliver a consistent high level of product 
quality that meets customers’ requirements. In addition to 
building manufacturing processes that focus on the 4Ms 
(manpower, machinery, materials and methods), the Company is 
looking to enhance the quality of its products.

High-quality materials and parts, as well as other key inputs 
including various types of oils and greases, are essential in the 
manufacture of high-quality products. NSK engages in a wide 
range of activities aimed at enhancing quality based on strong ties 
of mutual trust with suppliers.

To build quality into each process, the Company is promoting the NSK Product Development System (NPDS). 

This system is used for new projects and is designed to achieve 
efficient mass production of high-quality products by solving 
problems at key points in each process before moving on to the 
next stage. Moving forward, NSK will deploy this innovative NPDS 
globally.

In fiscal 2015, energies were channeled toward ensuring that 

Quick DRs were firmly entrenched within the Company’s 
manufacturing operations. Quick DRs entail efficient design 
reviews that focus on the parts of the design that have been 
revised.

(cid:12195)Outline of the NPDS
Product 
planning

Process

Development 
and design

Prototype 
manufacture

Pilot 
production

Pilot mass 
production

Mass 
production

Specialists perform rigorous and 
objective checks to confirm these items

Confirmation items
Determination for transition to the 
next process

Can the product 
be designed to satisfy 
customer needs?

Can it be processed
and assembled
according to the design?

Can it be processed and 
assembled using the 
intended methods 
in mass production?

Can it be processed 
and assembled 
using the same methods 
in mass production?

Material CSR Issues

2

Safety Management

Creating Safe and Healthy Workplaces

Basic Approach

To protect the safety and health of each and every employee, NSK 
undertakes initiatives with the following basic philosophy: (cid:672)Safety is 
the first and foremost priority.(cid:673)

Striving to ensure workplace safety, the Company implements 

measures to address unsafe equipment and facilities while 
promoting a set of uniform global standards across the Group as a 
whole. At the same time, proactive measures are being taken to 
share information with employees and to ferment a culture in which 
workers openly caution each other through mutual education.

Occupational Safety and Health Management System

NSK realizes how important it is to be proactive about safety and 
health in the workplace, which forms the heart of manufacturing. 
This is the key to providing an environment in which employees can 
reach their full potential. Based on this conviction, NSK regularly 
convenes the NSK Central Occupational Health and Safety Council, 
which involves both labor and management, to set the course for 
labor issues for the entire company. Following the course 
determined by the council, NSK is building an occupational safety 
and health management system that complies with OHSAS 18001 
and other related regulations while striving to foster a (cid:672)safety first(cid:673) 
corporate culture that fully engages all employees at each site.

The Company is sharing information globally about 

occupational accidents that have occurred within the Group and is 
making every effort to prevent similar accidents from reoccurring. 
NSK analyzes the information globally and implements effective 
prevention measures.

Occupational Accidents

NSK employs the lost-worktime injury rate (the number of persons 
absent from work due to occupational accidents (cid:696) total actual 
working hours (cid:695) 1,000,000) as a key safety management 
performance indicator. In fiscal 2015, the global lost-worktime injury 
rate was 0.70, down 0.10 compared with the previous fiscal year.

(cid:12195)Occupational Safety Structure

NSK Central Occupational Health and Safety Council

NSK Central Occupational Health and Safety 
Council Secretariat Liaison Committee

Health and safety committee at each site

Health and safety committee in each department (section)

Health and safety committee in each workplace (group)

Individual group members

(cid:12195)Occupational Safety and Health Management System

Announcement of safety and 
health policy by management

Plan

Act

Continuous 
improvement

Spiral up

Do

Check

Review

Basic elements 
of system

(cid:724) Reflect 

opinions of 
employees

(cid:724) Upgrade 
systems
(cid:724) Document 
procedures

(cid:724) Control 
records

(cid:12195)Lost-Worktime Injury Rate

FY2014

FY2015

In Japan

Outside Japan

Global

Japan’s Manufacturing Industry (Average)

0.44

1.00

0.80

1.06

0.32

0.91

0.70

1.06

Lost-worktime injury rate = Number of persons absent from work due to occupational 
accidents (cid:696) Total actual working hours (cid:695) 1,000,000. Defined as occupational accidents 
involving one or more days of absence from work.

NSK REPORT 2016

43

The Underlying Strength of Corporate Value
CSR / ESG Management

Material CSR Issues

3

Environmental Management

Activities for Global Environmental Protection
NSK adheres to the principle that global environmental 
protection, as outlined in the Company’s mission statement, 
must be an ever-present concern in all its business activities. 
Accordingly, the Group states in its Environmental Policy that 
environmental management forms the basis of its existence and 

pursuits. While raising the awareness of each of its employees, 
NSK works to create environmentally friendly products, 
implement global warming countermeasures, enact measures 
to promote resource conservation and recycling, and reduce use 
of environmentally harmful substances.

(cid:12195)NSK Group’s Environmental Management

Mission Statement

Target-setting and planning

NSK Environmental Policy/Environmental Code of Conduct/Environmental Voluntary Action Plan

Organization

Environmental management system

ISO 14001 certification

Audits

Environmental education 

Equipment maintenance 
and management

Creation of mechanisms and corporate culture

Creating environmentally 
friendly products

Global warming
countermeasures

Measures for resource 
conservation and recycling

Reducing use of environmentally 
harmful substances

Biodiversity conservation

Individual activities

Material and Energy Balance

NSK works hard to continually reduce its environmental impact and use energy and resources in the most effective manner by 
quantifying the amount of resources input into its business activities and the amount of waste, CO2, and other emissions it outputs.

(cid:12195)Input and Output of Global Business Activities (FY2015)

INPUT (Global)

Materials and parts

Energy 

Water supply 

Steel  

654(cid:695)103 tons

Electricity 

1,368,232 MWh

Water 

4,752(cid:695)103 m3

Oils and greases

20(cid:695)103 tons

Fuel

2,342,032 GJ

  Groundwater 

1,803(cid:695)103 m3

  General water 

2,239(cid:695)103 m3

  Industrial water 

 710(cid:695)103 m3

Materials and parts (Japan)
(Environmentally harmful 
substances)

PRTR(cid:718)1-designated substances
 495 tons

NSK Group 

Development

Design

Procurement

Manufacturing

Distribution

OUTPUT (Global)

Atmospheric gases 

Waste

Water quantity

CO2*2

NOx 

SOx 

1,015,000 tons

Total waste 

205,539 tons

Wastewater 

 2,763(cid:695)103 m3

126 tons

  Recycled

188,977 tons

  Rivers 

 630(cid:695)103 m3

40 tons

  Landfill waste

 3,802 tons

  Sewage system 

 2,133(cid:695)103 m3

  Incinerated waste 
  and water treatment

12,759 tons

BOD*3

2.3 tons

Environmentally harmful 
substances (Japan)

Discharge/transfer of
PRTR-designated substances
 96 tons

*1 Act on Confirmation, etc., of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (Law Concerning Pollutant 
Release and Transfer Register/PRTR). This Japanese law is intended to facilitate the improvement of chemical substance management by ensuring that the amounts released into the 
environment are ascertained and reported to the authorities.

*2 CO2 emissions for Japan are calculated in conformity with data from Japan’s Ministry of the Environment. Also, different regional CO2 emission coefficients are used for regions outside Japan.
*3 An index indicating to what degree water has been polluted by organic materials, and the amount of oxygen required for the organic material to oxidize and decompose into microbes. The 

amount of the biochemical oxygen demand (BOD) load shown here is the BOD measurement value multiplied by the amount of the river water discharge.

Other related 
information

With regard to information on environmental management (policy, framework, targets/achievements, environmental accounting), global warming 
countermeasures, measures for resource conservation and recycling, reducing the use of environmentally harmful substances and biodiversity 
conservation, please refer to our CSR Report (NSK website: http://www.nsk.com/sustainability/csrReport/index.html).

Creating Environmentally Friendly Products

Harnessing NSK’s Four Core Technologies to Help 

Reduce the Environmental Impact of Human Societies

products and technologies which, in keeping with its basic policy, 

make the most of the Company’s four core technologies 

(tribology, materials, numerical simulation, and mechatronics). 

The products of the future must perform better than today’s in 

By delivering these products and technologies to all corners of 

order to help reduce the impact human societies have on the 

the globe, NSK aims to contribute to the sophistication of the 

natural environment. In an effort to contribute to the well-being 

machinery in which its products are incorporated and to the 

and safety of society and to protect the global environment, as 

development of environmentally friendly products as well as to 

spelled out by its corporate philosophy, NSK is working hard to 

the reduction of environmental impact throughout society.

accurately determine the needs of its customers and the 

broader society, as well as to develop environmentally friendly 

Basic Policy for the Development of Environmentally Friendly Products

NSK minimizes the environmental impact of its products at every stage(cid:693)from R&D and design, to production, usage, and 

disposal(cid:693)by upholding the following standards:

1. Each product should contribute toward the energy and resource conservation of the machine in which it is installed.

2. The amount of energy and resources required during product manufacturing should be minimal.

3. Environmentally harmful substances should not be used in products or manufacturing processes.

4. Products should contribute to the health and safety of end users by having low emissions of vibration, noise, and dust.

(cid:12195)FY2015 Activities

In fiscal 2015, NSK developed nine new environmentally friendly products that help customers conserve energy and resources. 

The total number of environmentally friendly products developed since 2002 comes to 211.

Environmentally Friendly Products Developed in FY2015

Neco

2.9

Neco

1.7

Neco

1.2

Neco

1.3

Spherical roller bearings featuring high 

Ball bearings for fan clutches with 

reliability and excellent sealing 

excellent sealing performance

Super-large ball screws with 

world-top-class load capacity

performance for conveyor pulleys in mines

The world’s lightest electric power 

steering (EPS) system

(As of January 2016, data compiled by NSK)

NSK Eco-Efficiency Indicators (Neco)

In fiscal 2008, the Company introduced the NSK eco-efficiency 

indicators (Neco) as a yardstick for quantitatively assessing the 

degree of environmental friendliness possessed by the products it 

develops. Since that time, the Company has utilized Neco to 

conduct assessments of products under development.

The Neco score is represented by a numerical value obtained 

by dividing product value V and environmental impact E. The 

numerator V represents, in numerical form, the degree of 

improvement of a product in development were an existing 

product assessed at 1 with regard to assessment parameters that 

need to be increased to improve product value, such as service 

life, performance and accuracy. By comparison with an existing 

product, the denominator E represents assessment parameters, 

such as product weight, power consumption and friction loss, that 

must be reduced to decrease the environmental impact.

To use bearings as an example, the longer a product’s service 

life is when compared with an existing product, the better able that 

250

200

150

100

50

0

product is at withstanding high-speed rotation, the lighter and 

more compact it is, and the less friction loss there is, the higher its 

Neco value will be. NSK is working to develop new products with a 

Neco score of 1.2 or higher.

(cid:12195)Number of Environmentally Friendly Products 

    Developed

Products (Cumulative)

211

202

190

106106

115115

9494

173

157

7777

6161

140

4444

124

2828

96

110

1414

75

64

43

26

15

Neco=

Product value V (product life, functions)

Environmental impact E

(product weight and power consumption)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(cid:674)FY(cid:675)

■ Newly developed products with a Neco score of 1.2 or higher Established in FY2008

■ Newly developed products consistent with the Basic Policy for Development of 

  Environmentally Friendly Products established in FY2001

44

NSK REPORT 2016

NSK REPORT 2016

45

The Underlying Strength of Corporate Value

CSR / ESG Management

Material CSR Issues

3

Environmental Management

Activities for Global Environmental Protection

NSK adheres to the principle that global environmental 

pursuits. While raising the awareness of each of its employees, 

protection, as outlined in the Company’s mission statement, 

NSK works to create environmentally friendly products, 

must be an ever-present concern in all its business activities. 

implement global warming countermeasures, enact measures 

Accordingly, the Group states in its Environmental Policy that 

to promote resource conservation and recycling, and reduce use 

environmental management forms the basis of its existence and 

of environmentally harmful substances.

(cid:12195)NSK Group’s Environmental Management

NSK Environmental Policy/Environmental Code of Conduct/Environmental Voluntary Action Plan

Mission Statement

Target-setting and planning

Organization

Environmental management system

ISO 14001 certification

Audits

Environmental education 

Equipment maintenance 

and management

Creation of mechanisms and corporate culture

Creating environmentally 

friendly products

Global warming

countermeasures

Measures for resource 

conservation and recycling

Reducing use of environmentally 

harmful substances

Biodiversity conservation

Individual activities

Material and Energy Balance

NSK works hard to continually reduce its environmental impact and use energy and resources in the most effective manner by 

quantifying the amount of resources input into its business activities and the amount of waste, CO2, and other emissions it outputs.

(cid:12195)Input and Output of Global Business Activities (FY2015)

INPUT (Global)

Materials and parts

Energy 

Water supply 

Steel  

654(cid:695)103 tons

Electricity 

1,368,232 MWh

Water 

4,752(cid:695)103 m3

Materials and parts (Japan)

(Environmentally harmful 

substances)

Oils and greases

20(cid:695)103 tons

Fuel

2,342,032 GJ

  Groundwater 

1,803(cid:695)103 m3

PRTR(cid:718)1-designated substances

  General water 

2,239(cid:695)103 m3

  Industrial water 

 710(cid:695)103 m3

NSK Group 

Development

Design

Procurement

Manufacturing

Distribution

OUTPUT (Global)

CO2*2

NOx 

SOx 

Atmospheric gases 

Waste

Water quantity

1,015,000 tons

Total waste 

205,539 tons

Wastewater 

 2,763(cid:695)103 m3

126 tons

  Recycled

188,977 tons

  Rivers 

 630(cid:695)103 m3

40 tons

  Landfill waste

 3,802 tons

  Sewage system 

 2,133(cid:695)103 m3

  Incinerated waste 

  and water treatment

12,759 tons

BOD*3

2.3 tons

Environmentally harmful 

substances (Japan)

Discharge/transfer of

PRTR-designated substances

 96 tons

*1 Act on Confirmation, etc., of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (Law Concerning Pollutant 

Release and Transfer Register/PRTR). This Japanese law is intended to facilitate the improvement of chemical substance management by ensuring that the amounts released into the 

environment are ascertained and reported to the authorities.

*2 CO2 emissions for Japan are calculated in conformity with data from Japan’s Ministry of the Environment. Also, different regional CO2 emission coefficients are used for regions outside Japan.

*3 An index indicating to what degree water has been polluted by organic materials, and the amount of oxygen required for the organic material to oxidize and decompose into microbes. The 

amount of the biochemical oxygen demand (BOD) load shown here is the BOD measurement value multiplied by the amount of the river water discharge.

Other related 

information

With regard to information on environmental management (policy, framework, targets/achievements, environmental accounting), global warming 

countermeasures, measures for resource conservation and recycling, reducing the use of environmentally harmful substances and biodiversity 

conservation, please refer to our CSR Report (NSK website: http://www.nsk.com/sustainability/csrReport/index.html).

Creating Environmentally Friendly Products

Harnessing NSK’s Four Core Technologies to Help 
Reduce the Environmental Impact of Human Societies

The products of the future must perform better than today’s in 
order to help reduce the impact human societies have on the 
natural environment. In an effort to contribute to the well-being 
and safety of society and to protect the global environment, as 
spelled out by its corporate philosophy, NSK is working hard to 
accurately determine the needs of its customers and the 
broader society, as well as to develop environmentally friendly 

products and technologies which, in keeping with its basic policy, 
make the most of the Company’s four core technologies 
(tribology, materials, numerical simulation, and mechatronics). 
By delivering these products and technologies to all corners of 
the globe, NSK aims to contribute to the sophistication of the 
machinery in which its products are incorporated and to the 
development of environmentally friendly products as well as to 
the reduction of environmental impact throughout society.

Basic Policy for the Development of Environmentally Friendly Products
NSK minimizes the environmental impact of its products at every stage(cid:693)from R&D and design, to production, usage, and 
disposal(cid:693)by upholding the following standards:
1. Each product should contribute toward the energy and resource conservation of the machine in which it is installed.
2. The amount of energy and resources required during product manufacturing should be minimal.
3. Environmentally harmful substances should not be used in products or manufacturing processes.
4. Products should contribute to the health and safety of end users by having low emissions of vibration, noise, and dust.

(cid:12195)FY2015 Activities

In fiscal 2015, NSK developed nine new environmentally friendly products that help customers conserve energy and resources. 
The total number of environmentally friendly products developed since 2002 comes to 211.

Environmentally Friendly Products Developed in FY2015

Neco

2.9

Neco

1.7

Neco

1.2

Neco

1.3

Spherical roller bearings featuring high 
reliability and excellent sealing 
performance for conveyor pulleys in mines

Ball bearings for fan clutches with 
excellent sealing performance

Super-large ball screws with 
world-top-class load capacity

The world’s lightest electric power 
steering (EPS) system
(As of January 2016, data compiled by NSK)

 495 tons

NSK Eco-Efficiency Indicators (Neco)

In fiscal 2008, the Company introduced the NSK eco-efficiency 
indicators (Neco) as a yardstick for quantitatively assessing the 
degree of environmental friendliness possessed by the products it 
develops. Since that time, the Company has utilized Neco to 
conduct assessments of products under development.

The Neco score is represented by a numerical value obtained 

by dividing product value V and environmental impact E. The 
numerator V represents, in numerical form, the degree of 
improvement of a product in development were an existing 
product assessed at 1 with regard to assessment parameters that 
need to be increased to improve product value, such as service 
life, performance and accuracy. By comparison with an existing 
product, the denominator E represents assessment parameters, 
such as product weight, power consumption and friction loss, that 
must be reduced to decrease the environmental impact.

To use bearings as an example, the longer a product’s service 
life is when compared with an existing product, the better able that 

product is at withstanding high-speed rotation, the lighter and 
more compact it is, and the less friction loss there is, the higher its 
Neco value will be. NSK is working to develop new products with a 
Neco score of 1.2 or higher.

(cid:12195)Number of Environmentally Friendly Products 
    Developed
Products (Cumulative)
250

211

202

190

106106

115115

9494

173

157

7777

6161

140

4444

124
2828

200

150

100

50

0

96

110

1414

75

64

43

26

15

Neco=

Product value V (product life, functions)

Environmental impact E
(product weight and power consumption)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(cid:674)FY(cid:675)

■ Newly developed products with a Neco score of 1.2 or higher Established in FY2008
■ Newly developed products consistent with the Basic Policy for Development of 
  Environmentally Friendly Products established in FY2001

44

NSK REPORT 2016

NSK REPORT 2016

45

The Underlying Strength of Corporate Value
(cid:1575)(cid:1728)(cid:1345)(cid:2955)(cid:923)(cid:2215)(cid:849)(cid:916)(cid:3991)
CSR / ESG Management

Material CSR Issues

4

Human Resource Management

Language Training

Making the most of 
diverse human 
resources

Realization of diversity

Facilitating 
a work-life balance

NSK uses English as its common language in order to conduct 

operations smoothly through active communication between 

employees around the world. At the headquarters divisions in 

Japan and at some plants, the Group offers English-language 

In fiscal 2015, training course participants who had shown 

considerable improvement in their language skills were sent to 

English-speaking countries and introduced to foreign-language 

training to learn English in more practical scenarios. At overseas 

training with external instructors. This provides employees with 

business sites, the Company is also conducting Japanese and 

the opportunity to learn practical English relevant to their work.

English courses for local employees.

Creating a Dynamic Work Environment
As business globalization advances, there are more and more opportunities for exchange 
among different peoples and nationalities. It has never been more important to work 
together to achieve harmony and mutual benefit for all countries and regions, and the 
basis of this must be deeper mutual understanding. Companies, for their part, must 
create workplaces where employees respect the diverse cultures and practices of 
different countries and regions, embrace diversity in the workforce, and can work safely, 
with vitality, and with sensitivity to the unique characteristics of the local area.

NSK’s Approach

In its Management Principles, NSK clearly states its aim (cid:672)to 
provide challenges and opportunities to our employees, channeling 
their skills and fostering their creativity and individuality.(cid:673) In 
accordance with the concept of making the best use of each and 
every individual employee, who represent corporate assets, the 
Company creates work environments where they can work 
enthusiastically and enjoy job satisfaction while aiming to develop 
the human resources who will lead NSK in the future.

Respect of Fundamental Rights at Work

Making the 
Best Use of Individuals 
in a Fair Manner
Dynamic Work 
Environment

Creating environments 
where employees 
can work with vitality

Providing opportunities and
workplaces that foster the growth
of self-motivated employees

Respect of fundamental 
rights at work

Creating secure, safe and 
comfortable workplaces

Realization of 
talent management
Providing both workplaces 
that foster self-development 
and training opportunities

Prohibiting Discrimination and 
Respecting Fundamental Rights at Work

Employment Policy to Preserve the Stability of 
Both Society and NSK

Respecting the Universal Declaration of Human Rights, NSK 
promotes activities based on the declaration’s ideas. Having 
clearly stated its aim (cid:672)to provide challenges and opportunities to 
our employees, channeling their skills and fostering their 
creativity and individuality (cid:673) in its Management Principles 
(please refer to page 1), the Company also defines the 
(cid:672)prohibition of unfair discrimination(cid:673) and (cid:672)respect for basic 
fundamental rights at work(cid:673) in the NSK Code of Corporate 
Ethics. Prohibiting discrimination(cid:693)on the basis of race, 
appearance, belief, gender, social status, lineage, ethnicity, 
nationality, age or disability(cid:693)as well as harassment, forced 
labor and child labor, the Company creates workplaces where 
diverse human resources can work enthusiastically while 
working hard to provide equal opportunity in recruitment, job 
assignment, evaluations and other employment issues.

In addition to making the concepts with regard to NSK human 

rights better known among its employees, the Company 
identifies acts to the contrary through internal audits and its 
internal reporting system and, when necessary, implements 
initiatives such as the taking of rapid appropriate action.

As a company that is committed to monozukuri, NSK is aiming for 
sustainable growth. For that reason, NSK takes a long-term 
perspective on employment and regards continually recruiting and 
developing the outstanding human resources who will lead 
businesses as essential. Having established a policy with regard to 
mass layoffs, the Company also engages in appropriate 
employment practices in accordance with the laws and ordinances 
of each country and region where a business site is located.

Labor-Management Relations Based on Dialogue

NSK regards sound labor-management relations as critical to the 
sustainable growth of the Company. One way in which the Company 
respects fundamental rights at work, as pledged in the NSK Code 
of Corporate Ethics, is by guaranteeing employees the right to 
communicate openly and directly with management without fear of 
retaliation, intimidation or harassment. Employees and managers 
are becoming better partners as they build trust by working to 
communicate more deeply, share views on the workplace 
environment and business conditions, and discuss and implement 
improvement measures. NSK is committed to creating workplaces 
where employees can work vigorously.

Developing Human Resources with a Global Mind-Set

As the globalization of business advances, NSK believes it is vital 
that employees draw on and make use of their abilities to the 
fullest extent in recognizing and solving common challenges 
that span national borders and cultural barriers.

Program for Human Resource Development

Having set up educational training programs in each region, the 
Company provides employees with the opportunities and forums 
that will contribute to their personal and professional development. 
While globally expanding its specialized training(cid:693)including training 
for candidates selected to become the next generation of 
executives, the NSK Manufacturing Education and Training Center 
that teaches and passes on technical skills, and the NSK Institute 
of Technology (NIT) that provides comprehensive technical training 
for engineers(cid:693)the Company undertakes the human resource 
development that will underpin its business.

(cid:12195)Number of Participants in Education and 
Training Programs in FY2015 (in Japan)

Programs

No. of participants

Training held at
 headquarters

New employee training/
Language training, etc.

Training held at  
technology divisions

NSK Institute of Technology (NIT)

Specialized training
(conducted by headquarters)

NSK Manufacturing Education and 
Training Center, sales training, etc.

Training held at plants
(conducted by plants)

Quality education, safety education, 
ISO-related education, etc.

Others

Retirement plan seminars, etc.

1,027

192

147

4,823

807

Note: The total number of participants who took training programs 

conducted by NSK Group companies in Japan.

Total  6,996

46

NSK REPORT 2016

Automotive Business Planning & Controller Department, 

Automotive Business Division Headquarters

Sayo Tanaka

I participated in an English-language training course in London. At 

first, I could not express my opinion in a positive manner, but 

under such circumstances I noticed that (cid:672)even if you speak 

English, you do not hold a conversation if you have no stories to 

tell, and speaking reveals a person.(cid:673) Receiving inspiration from 

colleagues of many nationalities, who spoke of their ambitions and 

their thoughts about their own and their countries’ futures, I 

acquired more knowledge and felt strongly that I wanted to have 

my own opinions. In the years to come, I would like to make use of 

my English skills, smoothly conduct business with NSK 

employees around the world and, without being satisfied with the 

way things are, continue to develop for the future.

Automotive Bearing Technology Center

NSK (China) Research and Development Co., Ltd.

Xu Yayun

When I joined NSK, I could not speak a word of Japanese, 

but thanks to the company’s Japanese-language classes, 

when I went to Japan for training I had reached the simple 

conversation stage. In Japan, I read Japanese books, 

watched dramas, memorized a lot of vocabulary and 

passed Level 2 of the Japanese Language Proficiency Test. 

Through learning Japanese, I have also come to know the 

way the Japanese people think, as well as about Japanese 

culture and customs. Since I came back to China, I have 

been cooperating well with people in Japan through e-mails 

and telephone meetings while making efficient progress 

with my work.

Respecting Diversity    Creating Organizations That Embrace Diversity

In addition to developing businesses worldwide, NSK believes 

conducting a review to expand the work options for women and 

that local communities and the Company can grow together by 

improving the ratio of women in employment.

implementing stable employment. Each and every one of our 

diverse, skilled personnel, who transcend contexts such as 

nationality, age or gender, is making maximum use of his or her 

abilities and characteristics and advancing the creation of a 

corporate culture and working environments where people can 

feel job satisfaction.

Making the Most of Diverse Human Resources

Diverse human resources play active roles in many areas of 

operations within the Company, not only in Japan. NSK aims to realize 

optimal human resource deployment, without regard to country of 

origin, at manufacturing and technical sites around the world.

In the years ahead, the Company plans to sequentially advance 

upgrades, such as in its common systems for assessing global posts, 

common remuneration systems, the handling of and guidelines for 

regional transfers, and the expansion of training programs for those in 

positions of responsibility.

Supporting Women’s Career (Japan)

At NSK, there are currently many workplaces where there are 

significantly fewer women than men, and the ratio of women in 

management positions is also less at 1.3% (fiscal 2015, NSK 

nonconsolidated). The Company has thus commenced efforts, 

such as training and exchanges of opinions, with the aim of 

Helping to Support an Aging Society (Japan)

Japan’s population is aging rapidly. In light of changes in the 

public pension system, it has become a social challenge to 

enable workers to have access to employment opportunities 

even after mandatory retirement. NSK recognizes that the 

knowledge and skills of experienced senior employees are 

beneficial in growing its business. The Company’s basic policy is 

to provide work opportunities to persons willing to work even 

after they have reached the retirement age of 60. The Company 

has had a reemployment program since April 2001.

(cid:12195)Number of Re-employed Persons (over 60 years of age)*

Seniors 

Others (part-time 

employees, etc.)

FY2011

FY2012

FY2013

FY2014

FY2015

325

383

441

470

505

34

29

29

28

25

* NSK and main group companies in Japan.

Total

359

412

470

498

530

Facilitating a Work-Life Balance

NSK believes that having employees enhance both their 

work and their private lives, and who are enthusiastic and 

active, has a beneficial effect on its business as a whole. 

For that reason, and in light of employees’ needs and social 

issues, the Company is placing an emphasis on developing 

ideal working environments for all employees, regardless of 

gender or age. In Japan, there are calls for social issues, 

including the low birthrate and the rapidly aging population, 

to be addressed. NSK has thus been making plans to 

enhance programs that support employees’ child care, 

such as child-care leave periods and extending the duration 

of the shorter working hours system for child care, in order 

to bring about a reduction in the number of employees who 

give up working on childbirth and child-rearing grounds.

In addition, the Company offers a re-employment 

registration system for employees who choose to resign in 

order to accompany a spouse transferred to another 

location.

(cid:12195)Childcare and Nursing Care Support System*1

NSK

Japan law

Childcare leave

Through the end of April when child 

Up to 18 months 

is 3 years old (the first five days paid)

(non-paid)

Shorter working 

hours for childcare

Through the end of March in the 

third year of elementary school

Up to 3 years old

Nursing care leave

Up to 1 year

Up to 93 days

Shorter working 

hours for nursing care

Up to 1 year

Up to 93 days

Elimination of half-day 

Usually, 12 times per year; but when providing 

holiday restriction

nursing care, unlimited

Re-employment 

registration system*2

System for employees that resign when their 

spouse is temporary transferred to another city,

but who want to eventually return to work at NSK

* 1 NSK and main group companies in Japan

* 2 Launched in fiscal 2014

NSK REPORT 2016

47

The Underlying Strength of Corporate Value

(cid:1575)(cid:1728)(cid:1345)(cid:2955)(cid:923)(cid:2215)(cid:849)(cid:916)(cid:3991)

CSR / ESG Management

Material CSR Issues

4

Human Resource Management

Language Training

Making the most of 

diverse human 

resources

Realization of diversity

Facilitating 

a work-life balance

Making the 

Best Use of Individuals 

in a Fair Manner

Dynamic Work 

Environment

Creating a Dynamic Work Environment

As business globalization advances, there are more and more opportunities for exchange 

among different peoples and nationalities. It has never been more important to work 

together to achieve harmony and mutual benefit for all countries and regions, and the 

basis of this must be deeper mutual understanding. Companies, for their part, must 

create workplaces where employees respect the diverse cultures and practices of 

different countries and regions, embrace diversity in the workforce, and can work safely, 

with vitality, and with sensitivity to the unique characteristics of the local area.

NSK’s Approach

In its Management Principles, NSK clearly states its aim (cid:672)to 

provide challenges and opportunities to our employees, channeling 

their skills and fostering their creativity and individuality.(cid:673) In 

accordance with the concept of making the best use of each and 

every individual employee, who represent corporate assets, the 

Company creates work environments where they can work 

enthusiastically and enjoy job satisfaction while aiming to develop 

the human resources who will lead NSK in the future.

Creating environments 

where employees 

can work with vitality

Respect of fundamental 

rights at work

Creating secure, safe and 

comfortable workplaces

Respect of Fundamental Rights at Work

Providing opportunities and

workplaces that foster the growth

of self-motivated employees

Realization of 

talent management

Providing both workplaces 

that foster self-development 

and training opportunities

Prohibiting Discrimination and 

Employment Policy to Preserve the Stability of 

Respecting Fundamental Rights at Work

Both Society and NSK

Respecting the Universal Declaration of Human Rights, NSK 

As a company that is committed to monozukuri, NSK is aiming for 

promotes activities based on the declaration’s ideas. Having 

sustainable growth. For that reason, NSK takes a long-term 

clearly stated its aim (cid:672)to provide challenges and opportunities to 

perspective on employment and regards continually recruiting and 

our employees, channeling their skills and fostering their 

creativity and individuality (cid:673) in its Management Principles 

(please refer to page 1), the Company also defines the 

developing the outstanding human resources who will lead 

businesses as essential. Having established a policy with regard to 

mass layoffs, the Company also engages in appropriate 

(cid:672)prohibition of unfair discrimination(cid:673) and (cid:672)respect for basic 

employment practices in accordance with the laws and ordinances 

fundamental rights at work(cid:673) in the NSK Code of Corporate 

Ethics. Prohibiting discrimination(cid:693)on the basis of race, 

appearance, belief, gender, social status, lineage, ethnicity, 

nationality, age or disability(cid:693)as well as harassment, forced 

labor and child labor, the Company creates workplaces where 

diverse human resources can work enthusiastically while 

working hard to provide equal opportunity in recruitment, job 

assignment, evaluations and other employment issues.

In addition to making the concepts with regard to NSK human 

rights better known among its employees, the Company 

identifies acts to the contrary through internal audits and its 

internal reporting system and, when necessary, implements 

initiatives such as the taking of rapid appropriate action.

of each country and region where a business site is located.

Labor-Management Relations Based on Dialogue

NSK regards sound labor-management relations as critical to the 

sustainable growth of the Company. One way in which the Company 

respects fundamental rights at work, as pledged in the NSK Code 

of Corporate Ethics, is by guaranteeing employees the right to 

communicate openly and directly with management without fear of 

retaliation, intimidation or harassment. Employees and managers 

are becoming better partners as they build trust by working to 

communicate more deeply, share views on the workplace 

environment and business conditions, and discuss and implement 

improvement measures. NSK is committed to creating workplaces 

where employees can work vigorously.

Developing Human Resources with a Global Mind-Set

As the globalization of business advances, NSK believes it is vital 

that employees draw on and make use of their abilities to the 

fullest extent in recognizing and solving common challenges 

that span national borders and cultural barriers.

Program for Human Resource Development

Having set up educational training programs in each region, the 

Company provides employees with the opportunities and forums 

that will contribute to their personal and professional development. 

While globally expanding its specialized training(cid:693)including training 

for candidates selected to become the next generation of 

executives, the NSK Manufacturing Education and Training Center 

that teaches and passes on technical skills, and the NSK Institute 

of Technology (NIT) that provides comprehensive technical training 

for engineers(cid:693)the Company undertakes the human resource 

development that will underpin its business.

(cid:12195)Number of Participants in Education and 

Training Programs in FY2015 (in Japan)

Programs

No. of participants

Training held at

 headquarters

New employee training/

Language training, etc.

Training held at  

technology divisions

NSK Institute of Technology (NIT)

Specialized training

(conducted by headquarters)

NSK Manufacturing Education and 

Training Center, sales training, etc.

Training held at plants

(conducted by plants)

Quality education, safety education, 

ISO-related education, etc.

Others

Retirement plan seminars, etc.

1,027

192

147

4,823

807

Note: The total number of participants who took training programs 

conducted by NSK Group companies in Japan.

Total  6,996

46

NSK REPORT 2016

NSK uses English as its common language in order to conduct 
operations smoothly through active communication between 
employees around the world. At the headquarters divisions in 
Japan and at some plants, the Group offers English-language 
training with external instructors. This provides employees with 
the opportunity to learn practical English relevant to their work.

In fiscal 2015, training course participants who had shown 
considerable improvement in their language skills were sent to 
English-speaking countries and introduced to foreign-language 
training to learn English in more practical scenarios. At overseas 
business sites, the Company is also conducting Japanese and 
English courses for local employees.

Automotive Business Planning & Controller Department, 
Automotive Business Division Headquarters
Sayo Tanaka
I participated in an English-language training course in London. At 
first, I could not express my opinion in a positive manner, but 
under such circumstances I noticed that (cid:672)even if you speak 
English, you do not hold a conversation if you have no stories to 
tell, and speaking reveals a person.(cid:673) Receiving inspiration from 
colleagues of many nationalities, who spoke of their ambitions and 
their thoughts about their own and their countries’ futures, I 
acquired more knowledge and felt strongly that I wanted to have 
my own opinions. In the years to come, I would like to make use of 
my English skills, smoothly conduct business with NSK 
employees around the world and, without being satisfied with the 
way things are, continue to develop for the future.

Automotive Bearing Technology Center
NSK (China) Research and Development Co., Ltd.
Xu Yayun
When I joined NSK, I could not speak a word of Japanese, 
but thanks to the company’s Japanese-language classes, 
when I went to Japan for training I had reached the simple 
conversation stage. In Japan, I read Japanese books, 
watched dramas, memorized a lot of vocabulary and 
passed Level 2 of the Japanese Language Proficiency Test. 
Through learning Japanese, I have also come to know the 
way the Japanese people think, as well as about Japanese 
culture and customs. Since I came back to China, I have 
been cooperating well with people in Japan through e-mails 
and telephone meetings while making efficient progress 
with my work.

Respecting Diversity    Creating Organizations That Embrace Diversity

In addition to developing businesses worldwide, NSK believes 
that local communities and the Company can grow together by 
implementing stable employment. Each and every one of our 
diverse, skilled personnel, who transcend contexts such as 
nationality, age or gender, is making maximum use of his or her 
abilities and characteristics and advancing the creation of a 
corporate culture and working environments where people can 
feel job satisfaction.

Making the Most of Diverse Human Resources

Diverse human resources play active roles in many areas of 
operations within the Company, not only in Japan. NSK aims to realize 
optimal human resource deployment, without regard to country of 
origin, at manufacturing and technical sites around the world.

In the years ahead, the Company plans to sequentially advance 
upgrades, such as in its common systems for assessing global posts, 
common remuneration systems, the handling of and guidelines for 
regional transfers, and the expansion of training programs for those in 
positions of responsibility.

Supporting Women’s Career (Japan)

At NSK, there are currently many workplaces where there are 
significantly fewer women than men, and the ratio of women in 
management positions is also less at 1.3% (fiscal 2015, NSK 
nonconsolidated). The Company has thus commenced efforts, 
such as training and exchanges of opinions, with the aim of 

conducting a review to expand the work options for women and 
improving the ratio of women in employment.

Helping to Support an Aging Society (Japan)

Japan’s population is aging rapidly. In light of changes in the 
public pension system, it has become a social challenge to 
enable workers to have access to employment opportunities 
even after mandatory retirement. NSK recognizes that the 
knowledge and skills of experienced senior employees are 
beneficial in growing its business. The Company’s basic policy is 
to provide work opportunities to persons willing to work even 
after they have reached the retirement age of 60. The Company 
has had a reemployment program since April 2001.

(cid:12195)Number of Re-employed Persons (over 60 years of age)*

Seniors 

Others (part-time 
employees, etc.)

FY2011

FY2012

FY2013

FY2014

FY2015

325

383

441

470

505

34

29

29

28

25

* NSK and main group companies in Japan.

Total

359

412

470

498

530

Facilitating a Work-Life Balance

NSK believes that having employees enhance both their 
work and their private lives, and who are enthusiastic and 
active, has a beneficial effect on its business as a whole. 
For that reason, and in light of employees’ needs and social 
issues, the Company is placing an emphasis on developing 
ideal working environments for all employees, regardless of 
gender or age. In Japan, there are calls for social issues, 
including the low birthrate and the rapidly aging population, 
to be addressed. NSK has thus been making plans to 
enhance programs that support employees’ child care, 
such as child-care leave periods and extending the duration 
of the shorter working hours system for child care, in order 
to bring about a reduction in the number of employees who 
give up working on childbirth and child-rearing grounds.
In addition, the Company offers a re-employment 

registration system for employees who choose to resign in 
order to accompany a spouse transferred to another 
location.

(cid:12195)Childcare and Nursing Care Support System*1

Childcare leave

NSK
Through the end of April when child 
is 3 years old (the first five days paid)

Japan law
Up to 18 months 
(non-paid)

Shorter working 
hours for childcare

Through the end of March in the 
third year of elementary school

Up to 3 years old

Nursing care leave

Up to 1 year

Up to 93 days

Shorter working 
hours for nursing care

Up to 1 year

Up to 93 days

Elimination of half-day 
holiday restriction

Usually, 12 times per year; but when providing 
nursing care, unlimited

Re-employment 
registration system*2

System for employees that resign when their 
spouse is temporary transferred to another city,
but who want to eventually return to work at NSK

* 1 NSK and main group companies in Japan
* 2 Launched in fiscal 2014

NSK REPORT 2016

47

The Underlying Strength of Corporate Value
CSR / ESG Management

Corporate Governance

Basic Philosophy

Corporate Governance Structure

NSK regards corporate governance as a structure that enables 
operational organizations to realize efficient and fair management 
under the supervision of the Board of Directors. The Company 
works diligently to strengthen this structure based on the following 
four policies:

① Improve management efficiency and flexibility 
by delegating more authority from the Board of 
Directors to operational organizations;

② Ensure the supervision of operational 

organizations by the supervisory organizations 
by separating the former from the latter;

③ Strengthen the supervision of operational 

organizations by the supervisory organizations 
through close cooperation between the former 
and the latter; and

④ Increase management fairness by 

strengthening the compliance system.

NSK has put in place a set of Corporate Governance Rules that 
encapsulate this basic philosophy and structure. Directors and 
executive officers manage the business from a Group-wide 
perspective in accordance with these rules.

Current Structure and Operating Status

NSK has adopted a company with three committees system under 
which executive and supervisory roles are clearly defined. The 
purpose of adopting this system is to maintain and enhance 
management soundness and transparency. In the case of executive 
functions, the CEO makes final management decisions, whereas 
specific operational functions are overseen by the executive officers 
in charge. From a supervisory function perspective, the Board of 
Directors makes decisions on such important matters as 
fundamental management policies, while supervising operational 
organizations. To reinforce supervisory functions, the Company also 
has established the Compensation Committee, the Nomination 
Committee and the Audit Committee (each consisting of two 
independent directors and one non-independent director).

For the year ended March 31, 2016, the Board of Directors and 
the Audit Committee met 10 and 14 times, respectively, whereas the 
Compensation Committee and the Nomination Committee each 
met five times.

Initiatives Geared toward Further Enhancements

To enhance its corporate governance, NSK has cited the further 
improvement of its Board of Directors’ functions as one of its 
highest priorities. The Company verifies whether the functions of the 
Board of Directors are being properly fulfilled and, for the purpose of 
further strengthening its effectiveness, has evaluations of the Board 
of Directors carried out by external experts. Based on the results of 
those evaluations, the Company carries out the effective operations 
of the Board of Directors and the enhancement of training.

In addition, directors have the opportunity to refresh their 
knowledge with regard not only to the content of proceedings but 
also to NSK’s status by briefings held prior to Board of Directors’ 
events and by visiting business sites on a regular basis. These 
enable intense deliberations and transparent and fair decision 
making at Board of Directors’ meetings. The Company will respect 
the meaning and spirit of the Corporate Governance Code and 
continue to work to improve its ongoing sustained growth and 
corporate value.

▶Strengthening NSK’s Corporate Governance Structure (As of July 1, 2016)
(Year to March 31)

2016

● Became a company with three committees in accordance with revisions to 

Japan’s Companies Act

2013

● Established 2013 the Compliance Committee

2011

2007

2006

2005

2004

2003

2000

● Submit ted a notification to the Tokyo Stock Exchange to confirm 

independence of all four independent directors

● Established independence criteria for the Company’s independent directors

● Became a company with committees pursuant to Japan’s Companies Act; 
restructured the Compensation, Nomination and Audit committees to each 
comprise two independent directors and one non-independent director

● Established the Internal Control Project Team (later merged into the 

current Internal Audit Office)

● Established the Information Disclosure Team (current Disclosure Committee)

● Established the Nomination Committee
● Adopted a company with committees system
● Established the Management Monitoring Office (current Internal Audit Department) 

to undertake auditing functions and monitor the operations of the Company

● Established the Voluntary Audit Committee

● Established the Crisis Management Committee

● Adopted an executive officer system and subsequently appointed 

independent directors to the Company’s Board of Directors

● Established the Compensation Committee

▶NSK’s Corporate Governance Structure

General Shareholders’ Meeting

Operating Organizations

President and Chief Executive Officer

Board of Directors

Election/

dismissal of directors

Proposal/

report

Supervisory

Organizations

Election/dismissal of

executive officers

Delegation of

authority supervision

Report

Report

Election/

dismissal of

committee

members

Report

Direction

Report

Report

Report

Corporate Strategy

Division Headquarters

Compliance Committee

CSR Division Headquarters

Compliance Enhancement Office

Disclosure Committee

Crisis Management

Committee

A

B

C

D

E

Decision-Making

Support Function

Operating

Committee

Inquiry

Executive

Direction

Officers Meeting

Direction

Monitoring Function

Internal Audit Department F

Information Sharing

Cooperation

Direction

Cooperation

Compensation

Committee

Nomination

Committee

Audit Committee

　 Corporate Strategy Division Headquarters

A

　 CSR Division Headquarters 

C

Coordinates with each business, functional and 

　 Compliance Enhancement Office

regional headquarters to support the CEO and 

This office is responsible for enacting 

　 Crisis Management Committee 

E

Responsible for preparing and strengthening 

response systems to major risks to the company, 

oversee and manage general risks related to 

compliance-strengthening measures based on the 

such as natural disasters, pandemics or major 

management of the NSK Group. Responsible for 

policies set by the Compliance Committee. In 

accidents, in order to prevent such risks from 

maintaining and enhancing the internal control 

addition to conducting educational initiatives to 

eventuating or to minimize damage. Also 

systems necessary for the operation of the NSK 

ensure that the company constantly acts as a good 

responsible for leading a swift and appropriate 

Group’s global business.

corporate citizen with a sense of social responsibility, 

response in the event of a disaster.

B

　 Compliance Committee

Creates policies designed to strengthen the 

compliance of the overall NSK Group, sets and 

promotes compliance enhancement measures to 

realize these policies, and monitors and 

supervises their implementation. Periodically 

the office plans, proposes, enacts and monitors 

measures to ensure compliance with laws, internal 

rules and corporate ethics. The office also reports 

periodically to the Compliance Committee on the 

status of the compliance-strengthening measures.

　 Disclosure Committee

D

　 Internal Audit Department

F

As the division responsible for internal auditing of 

operations, responsible for conducting audits to 

determine the legitimacy, adequacy and efficiency, 

etc., of operations, and monitoring the 

performance of operations. Also responsible for 

reports to the Board of Directors on the progress 

Responsible for ensuring appropriate and timely 

overseeing the evaluation of the effectiveness of 

of these activities.

disclosure of important corporate information that 

internal controls over financial reporting.

is likely to influence investors’ investment decisions, 

in line with relevant laws and regulations.

Independence of Independent Directors

Internal Control Systems

NSK believes that the participation of independent directors in 

NSK has clarified and documented a set of basic principles to 

meetings of the Board of Directors, as well as meetings of the 

ensure that its global Group management and internal control 

Compensation, Nomination and Audit committees, together with 

systems function efficiently, and is working to strengthen internal 

their role in determining important matters and supervising 

controls across the Group as a whole. In addition, the Internal 

operational organizations, contributes to increased management 

Audit Department, which serves as the Company’s internal 

soundness and transparency while helping to ensure that no 

auditing division, coordinates with the Audit Committee while 

conflicts of interest occur with general shareholders. NSK has set 

monitoring operating divisions in the execution of their duties from 

specific standards for independence, which are applied when 

a position independent of the operational organizations. The 

appointing independent directors. By applying these standards, 

Internal Audit Department also audits the development and 

NSK mitigates the risk that a candidate might have a special 

operational status of the Company’s internal control systems. As a 

relationship with the Company’s management or its principal 

part of efforts to put in place and strengthen the Group’s global 

shareholders, or a conflict of interest with general shareholders. 

internal audit platform, internal audit offices have been 

All four of NSK’s independent directors meet these standards of 

established in each regional headquarters, tasked with overseeing 

independence. To ensure that decisions made by the Board of 

the operations of local subsidiaries. Moreover, efforts are being 

Directors are proper, valid and relevant, the Company draws on 

channeled toward addressing the key issues of the Company’s 

the opinion of its independent directors, who possess a wide range 

mid-term management plan: 1) enhancing compliance, 2) 

of experience and expertise as senior executives or specialists and 

strengthening monitoring, 3) improving audit effectiveness and 4) 

offer their advice while supervising management from an 

promoting operational efficiency.

independent standpoint.

48

NSK REPORT 2016

NSK REPORT 2016

49

Cooperation

Board of Directors

Supervisory
Organizations

Inquiry

Direction

Direction

Report

Direction

Report

Report

Report

Report

Election/
dismissal of
committee
members

Report

Decision-Making
Support Function
Operating
Committee

Information Sharing
Executive
Officers Meeting

Corporate Strategy
Division Headquarters

Compliance Committee

CSR Division Headquarters
Compliance Enhancement Office

Disclosure Committee

Crisis Management
Committee

A

B

C

D

E

Operating Organizations

President and Chief Executive Officer

Election/dismissal of
executive officers

Delegation of
authority supervision

Basic Philosophy

Corporate Governance Structure

▶NSK’s Corporate Governance Structure

General Shareholders’ Meeting

Election/
dismissal of directors

Proposal/
report

The Underlying Strength of Corporate Value

CSR / ESG Management

Corporate Governance

NSK regards corporate governance as a structure that enables 

operational organizations to realize efficient and fair management 

under the supervision of the Board of Directors. The Company 

works diligently to strengthen this structure based on the following 

four policies:

① Improve management efficiency and flexibility 

by delegating more authority from the Board of 

Directors to operational organizations;

② Ensure the supervision of operational 

organizations by the supervisory organizations 

by separating the former from the latter;

③ Strengthen the supervision of operational 

organizations by the supervisory organizations 

through close cooperation between the former 

and the latter; and

④ Increase management fairness by 

strengthening the compliance system.

NSK has put in place a set of Corporate Governance Rules that 

encapsulate this basic philosophy and structure. Directors and 

executive officers manage the business from a Group-wide 

perspective in accordance with these rules.

Current Structure and Operating Status

NSK has adopted a company with three committees system under 

which executive and supervisory roles are clearly defined. The 

purpose of adopting this system is to maintain and enhance 

management soundness and transparency. In the case of executive 

functions, the CEO makes final management decisions, whereas 

specific operational functions are overseen by the executive officers 

in charge. From a supervisory function perspective, the Board of 

Directors makes decisions on such important matters as 

fundamental management policies, while supervising operational 

organizations. To reinforce supervisory functions, the Company also 

has established the Compensation Committee, the Nomination 

Committee and the Audit Committee (each consisting of two 

independent directors and one non-independent director).

For the year ended March 31, 2016, the Board of Directors and 

the Audit Committee met 10 and 14 times, respectively, whereas the 

Compensation Committee and the Nomination Committee each 

met five times.

Initiatives Geared toward Further Enhancements

To enhance its corporate governance, NSK has cited the further 

improvement of its Board of Directors’ functions as one of its 

highest priorities. The Company verifies whether the functions of the 

Board of Directors are being properly fulfilled and, for the purpose of 

further strengthening its effectiveness, has evaluations of the Board 

of Directors carried out by external experts. Based on the results of 

those evaluations, the Company carries out the effective operations 

of the Board of Directors and the enhancement of training.

In addition, directors have the opportunity to refresh their 

knowledge with regard not only to the content of proceedings but 

also to NSK’s status by briefings held prior to Board of Directors’ 

events and by visiting business sites on a regular basis. These 

enable intense deliberations and transparent and fair decision 

making at Board of Directors’ meetings. The Company will respect 

the meaning and spirit of the Corporate Governance Code and 

continue to work to improve its ongoing sustained growth and 

corporate value.

▶Strengthening NSK’s Corporate Governance Structure (As of July 1, 2016)

(Year to March 31)

● Became a company with three committees in accordance with revisions to 

2016

Japan’s Companies Act

2013

● Established 2013 the Compliance Committee

2011

● Submit ted a notification to the Tokyo Stock Exchange to confirm 

independence of all four independent directors

● Established independence criteria for the Company’s independent directors

2007

● Became a company with committees pursuant to Japan’s Companies Act; 

restructured the Compensation, Nomination and Audit committees to each 

comprise two independent directors and one non-independent director

● Established the Internal Control Project Team (later merged into the 

current Internal Audit Office)

● Established the Information Disclosure Team (current Disclosure Committee)

● Established the Nomination Committee

● Adopted a company with committees system

● Established the Management Monitoring Office (current Internal Audit Department) 

to undertake auditing functions and monitor the operations of the Company

● Established the Voluntary Audit Committee

● Established the Crisis Management Committee

● Adopted an executive officer system and subsequently appointed 

independent directors to the Company’s Board of Directors

● Established the Compensation Committee

2006

2005

2004

2003

2000

　 Corporate Strategy Division Headquarters
A
Coordinates with each business, functional and 
regional headquarters to support the CEO and 
oversee and manage general risks related to 
management of the NSK Group. Responsible for 
maintaining and enhancing the internal control 
systems necessary for the operation of the NSK 
Group’s global business.

　 Compliance Committee
B
Creates policies designed to strengthen the 
compliance of the overall NSK Group, sets and 
promotes compliance enhancement measures to 
realize these policies, and monitors and 
supervises their implementation. Periodically 
reports to the Board of Directors on the progress 
of these activities.

　 CSR Division Headquarters 
C
　 Compliance Enhancement Office
This office is responsible for enacting 
compliance-strengthening measures based on the 
policies set by the Compliance Committee. In 
addition to conducting educational initiatives to 
ensure that the company constantly acts as a good 
corporate citizen with a sense of social responsibility, 
the office plans, proposes, enacts and monitors 
measures to ensure compliance with laws, internal 
rules and corporate ethics. The office also reports 
periodically to the Compliance Committee on the 
status of the compliance-strengthening measures.

　 Disclosure Committee
D
Responsible for ensuring appropriate and timely 
disclosure of important corporate information that 
is likely to influence investors’ investment decisions, 
in line with relevant laws and regulations.

　 Crisis Management Committee 
E
Responsible for preparing and strengthening 
response systems to major risks to the company, 
such as natural disasters, pandemics or major 
accidents, in order to prevent such risks from 
eventuating or to minimize damage. Also 
responsible for leading a swift and appropriate 
response in the event of a disaster.

　 Internal Audit Department
F
As the division responsible for internal auditing of 
operations, responsible for conducting audits to 
determine the legitimacy, adequacy and efficiency, 
etc., of operations, and monitoring the 
performance of operations. Also responsible for 
overseeing the evaluation of the effectiveness of 
internal controls over financial reporting.

Independence of Independent Directors

Internal Control Systems

NSK believes that the participation of independent directors in 
meetings of the Board of Directors, as well as meetings of the 
Compensation, Nomination and Audit committees, together with 
their role in determining important matters and supervising 
operational organizations, contributes to increased management 
soundness and transparency while helping to ensure that no 
conflicts of interest occur with general shareholders. NSK has set 
specific standards for independence, which are applied when 
appointing independent directors. By applying these standards, 
NSK mitigates the risk that a candidate might have a special 
relationship with the Company’s management or its principal 
shareholders, or a conflict of interest with general shareholders. 
All four of NSK’s independent directors meet these standards of 
independence. To ensure that decisions made by the Board of 
Directors are proper, valid and relevant, the Company draws on 
the opinion of its independent directors, who possess a wide range 
of experience and expertise as senior executives or specialists and 
offer their advice while supervising management from an 
independent standpoint.

NSK has clarified and documented a set of basic principles to 
ensure that its global Group management and internal control 
systems function efficiently, and is working to strengthen internal 
controls across the Group as a whole. In addition, the Internal 
Audit Department, which serves as the Company’s internal 
auditing division, coordinates with the Audit Committee while 
monitoring operating divisions in the execution of their duties from 
a position independent of the operational organizations. The 
Internal Audit Department also audits the development and 
operational status of the Company’s internal control systems. As a 
part of efforts to put in place and strengthen the Group’s global 
internal audit platform, internal audit offices have been 
established in each regional headquarters, tasked with overseeing 
the operations of local subsidiaries. Moreover, efforts are being 
channeled toward addressing the key issues of the Company’s 
mid-term management plan: 1) enhancing compliance, 2) 
strengthening monitoring, 3) improving audit effectiveness and 4) 
promoting operational efficiency.

48

NSK REPORT 2016

NSK REPORT 2016

49

Monitoring Function

Direction

Internal Audit Department F

Cooperation

Compensation
Committee

Nomination
Committee

Audit Committee

The Underlying Strength of Corporate Value
CSR / ESG Management

Corporate Governance

Directors/Officers’ Compensation

１．Policy for Directors/Officers’ Compensation
The previous compensation package for Officers of NSK comprised fixed compensation, performance-based salary, a stock option program (share 
subscription rights) and retirement benefits. However, at the Compensation Committee meeting of NSK held on May 16, 2016, the introduction of a 
share-based compensation program and the ending of stock option programs and retirement benefits were decided.

The new compensation package for NSK’s Officers consists of basic compensation, which includes fixed compensation, a performance-based 

salary that fluctuates and share-based compensation, whereas (cid:672)directors’ compensation(cid:673) and (cid:672)executive officers’ compensation(cid:673) will be 
respectively determined. When a director also serves as an executive officer, the total of each respective compensation amount shall be paid.

Using the consolidated sales operating income margin and 

title of the executive officer. Moreover, an additional amount will be paid 
to executive officers with representation rights.

２．Decision-Making Process for Directors/Officers’ Compensation
[Directors’ Compensation]
The Directors’ compensation package consists of basic compensation 
and share-based compensation.

Basic compensation is determined based on whether the director is 

an independent director or a non-independent director in addition to 
the director’s role on committees to which the director belongs and the 
Board of Directors.

Moreover, for the purpose of further enhancing the commitment of 
directors to a sustainable increase in corporate value, NSK introduced 
a share-based compensation program using a Board Benefit Trust 
system. Under the program, NSK grants directors shares of NSK stock 
at retirement based on a point system whereby points are awarded 
depending on whether the director is independent or non-independent 
and according to the value of the stock. However, NSK will compensate 
directors with money acquired by converting a certain portion of NSK’s 
shares into cash. For directors who also serve as executive officers, 
performance shares as directors will not be provided.
[Executive Officer’s Compensation]
The executive officer compensation package consists of basic 
compensation, a performance-based salary and share-based 
compensation.

For basic compensation, the amount is determined according to the 

consolidated ROE targeted in the Company’s mid-term management 
plan and the operating income margin and cash flow as numerical 
targets for a single fiscal year and index to evaluate quality-contributing 
activity as criteria, the total amount of performance-based salary is 
calculated. For the compensation amount for the respective executive 
officers, the title and achievement level in the performance of job 
duties are evaluated for payment.

Moreover, for the purpose of further enhancing the commitment of 

executive officers to a sustainable increase in corporate value, NSK 
introduced a share-based compensation program using a Board 
Benefit Trust system. Under the program, NSK grants executive 
officers shares of NSK stock at retirement based on a point system 
whereby points are awarded depending on the title of executive officer 
and according to the value of the stock. However, NSK will compensate 
executive officers with money acquired by converting a certain portion 
of NSK’s shares into cash.

In addition, in the event a member of a management team of 

another company such as a subsidiary or an affiliate, etc., assumes an 
executive officer position, compensation will be determined separately.

３．Directors/Officers’ Compensation, etc.
The amount of compensation for directors and executive officers for the year ended March 31, 2016, was as follows.
■Compensation Total by Classification of Directors/Officers and Compensation Type and No. of Directors/Officers

Classification

Directors
(Non-independent)

Directors
(Independent)

Executive 
Officers

Compensation, 
etc., Total
((cid:711) Million)

Fixed Compensation
Amount
((cid:711) Millions)

No. of Directors/
Officers

Performance-Based Salary
No. of Directors/
Officers

Amount
((cid:711) Millions)

Stock Options

No. of Directors/
Officers

Amount
((cid:711) Millions)

Retirement Benefits
Amount
((cid:711) Millions)

No. of Directors/
Officers

132

54

9

6

113

42

1,990

38

801

(cid:660)

(cid:660)

33

(cid:660)

(cid:660)

9

6

17

12

643

39

187

2

(cid:660)

32

2

(cid:660)

357

Notes:1. Compensation for directors (non-independent) includes compensation for directors who also serve as executive officers.

2. The amount of performance-based salary is the payment amount as of July 1, 2016, based on the results for the year ended March 31, 2016. The payment 

amount of performance-based salary as of July 1, 2015, based on the results for the year ended March 31, 2015, was 794 million yen.

3. The amount of the retirement benefit is the accrued officers’ retirement benefits in the year ended March 31, 2016. Retirement benefits to three executive 

officers who retired in the year ended March 31, 2016, were 176 million yen.

4. Figures listed above are rounded down to one million yen.

■Directors/Officers Receiving a Total of 100 Million Yen or More in Consolidated Compensation

Name

Consolidated 
Compensation, 
etc., Total
((cid:711) Millions)

Title

Company

Amount for Each Item of Consolidated Compensation, etc.

Fixed Compensation
((cid:711) Millions)

Performance-Based 
Salary ((cid:711) Millions)

Stock Options
((cid:711) Millions)

Retirement Benefit
((cid:711) Millions)

Toshihiro
Uchiyama

Bernard
Lindsay

Adrian
Browne

Jürgen
Ackermann

122

Director

NSK Ltd.

Executive
Officer

NSK Ltd.

208

CEO

NSK Americas, Inc.

128

Executive
Officer

NSK Ltd.

100

CEO

NSK Europe Ltd.

6

38

68

78

58

(cid:660)

43

114

24

32

1

12

7

4

5

(cid:660)

20

17

20

3

50

NSK REPORT 2016

NSK REPORT 2016

51

Actions for Japan’s Corporate Governance Code

NSK shall adhere to each principle of the Code. In addition, NSK’s implementation status of the 11 items necessary for disclosure is as follows. For details, 

please refer to the following NSK websites. This page is a summary of the relevant sections of the "NSK Corporate Governance Report" (in Japanese only).

(cid:7555) http://www.nsk.com/company/governance/index.html (cid:7556) http://www.nsk.com/investors/events/

[Principle 1-4. Cross-Shareholdings] 

(1) Policy for Cross-Shareholdings

[Supplementary Principle 4-11-1. Composition of the Board of Directors]

Given the business and industry surroundings of the Company, NSK composes its 

From the perspective of improving corporate value over the medium to long term, 

BOD to enable it to be sufficiently familiar with business in order to supervise the 

NSK holds the shares of other listed companies as cross-shareholdings based on a 

management decisions regarding important executive matters. When composing the 

comprehensive consideration of the business stability, growth, partnership and 

board, the size of the board is limited to the extent that variety and balance of 

reliability. The Board of Directors receives periodic reporting for the objectives and 

careers such as expertise and experience are duly reflected.

i) Company objectives, business strategies and business plans, etc.

contribute to the further improvement of corporate value.

rationale behind the cross-shareholdings and supervises such cross-shareholdings.

(2) Criteria of Exercising Voting Rights as to Our Cross-Shareholdings

The exercising of voting rights as to our cross-shareholdings will be determined 

from the perspectives of whether the agenda leads to damaging shareholder value 

and whether there is a contribution to improving the corporate value of NSK and the 

companies in which NSK owns shares over the medium to long term.

 [Principle 1-7. Related Party Transactions] 

NSK’s Board of Directors approves transactions (related party transactions) between 

NSK and our executive officers/major shareholders in accordance with applicable 

laws and regulations including the Companies Act and internal regulations to ensure 

that such transactions do not harm the interests of the Company or the common 

interests of our shareholders and receives periodic reporting. Furthermore, the Audit  

Committee carries out audits on transactions based on necessity.

 [Principle 3-1. Enhanced Information Disclosure] 

NSK stipulated a mission statement, and based on the mission statement, the Board 

of Directors resolves medium- to long-term business strategies and business plans, 

etc. For our mission statement, please refer to page 1 of this NSK Report. For our 

business strategies and business plans, please refer to this NSK Report and NSK’s 

website (cid:7556) above.

ii) Basic Views and Guidelines on Corporate Governance 

Please refer to page 48 of this NSK Report.

Compensation of Executive Officers and Directors 

Please refer to page 50 of this NSK Report.

iv) Policies and Procedures in the Appointment of Executive Officers and the 

Nomination of Directors by the Nomination Committee 

For the selection of Directors, based on our expected composition of the Board of 

Directors and the qualifications according to NSK’s corporate governance system for 

Directors, candidates for Director are selected and discussed as part of the agenda 

of general shareholders’ meetings via discussion and approval by the Nomination 

Committee.

v) Explanation of Individual Appointment and Nomination When the Nomination 

Committee Selects Executive Officers and Appoints Candidates for Directors 

Reasons for the nomination of candidates for Director discussed in the Nomination 

Committee are described in the notice of ordinary general meeting of shareholders.

[Supplementary Principle 4-1-1. Roles and Responsibilities of the Board of Directors] 

NSK, as a company with three committees separates execution and supervision and 

actively delegates decision making in our business to execution divisions to improve 

the efficiency of management and increase mobility. At the same time, NSK values 

securing the appropriate checking and controlling and compliance with laws by 

allowing the Board of Directors to focus on supervising management.

[Principle 4-8. Effective Use of the Independent Directors]

[Supplementary Principle 4-11-2. Concurrent Positions of the Board of Directors]

The concurrency of outside directors is disclosed via the Notice of Calling, the 

Business Report, securities reports, etc. The Company has disclosed the major 

status of concurrency in addition to legally required items.

[Supplementary Principle 4-11-3. Evaluation of the Board of Directors Effectiveness]

NSK evaluated its Board of Directors for the purpose of verifying the appropriate 

fulfillment of functions of the Board of Directors for the sustainable improvement of 

corporate value and further enhancing the effectiveness of the Board of Directors. 

NSK outsourced evaluations to outside specialists, and self-evaluations with surveys 

and interviews and external evaluations were carried out.

The results confirmed that NSK’s Board of Directors effectively functions as a 

structure that makes transparent, fair and appropriate decisions on a timely basis. 

Based on the evaluation results, NSK clarifies challenges toward further 

improvement and strives to increase the effectiveness of the Board of Directors to 

[Supplementary Principle 4-14-2. Training of the Directors and Auditors]

The Company conducts trainings for directors upon their assumption and other 

opportunities as necessary on relevant laws such as the company code as well as 

finance, business and governance. For outside directors, the Company explains the 

BOD agenda in detail in advance for them to enrich their view of particular matters 

regarding NSK, which contributes to an eager discussion.

(1) Basic Views

(2) IR system

The Company believes that in disclosing its management information rapidly and 

fairly as well as seeking to steady return its profit, we are to be a company that 

continues to conform to the expectations of shareholders and investors.

The Company positions IR activities as the important initiatives of its management 

and implements dialogues with shareholders and investors and actively discloses 

its information. The Company organizes the IR Office as a dedicated division that is 

under direct control of the CEO and supervised by an executive officer who are 

responsible for IR. Moreover, we have an internal system where the IR Office 

discloses information on business and finance, in cooperation with relevant 

divisions, in a comprehensible, fair and appropriate manner.

(3) Measures for dialogue and activity status

The Company regularly holds meetings for institutional investors and analysts 

regarding, among other things, book closings, the mid-term management plan 

and business. Moreover, the Company actively communicates with stakeholders 

through CEO small meetings, conferences hosted by securities companies and 

overseas road shows in addition to individual press interviews. Furthermore, the 

Company conducts a wide range of IR activities such as conferences for individual 

investors.

(4) Relays

iii) Policies and Procedures of the Compensation Committee in Determining the 

[Principle 5-1. Policy for a Constructive Dialogue with the Shareholders]

NSK appointed four independent directors who have beneficial expertise for NSK, 

The Company relays opinions gathered from dialogue with shareholders and 

excellent personality and wide knowledge, as well as the ability to fulfill their roles 

investors to executive officers and relevant divisions in a timely manner.

and responsibilities with the aim of contributing to the sustainable growth of the 

(5) Administration of insider information

Company and increasing corporate value over the medium to long term.

 [Principle 4-9. Independence Standards and Qualification for the Independent Directors] 

NSK stipulated the Independence Standards of the Independent Directors in internal 

regulations and selects candidates for independent director according to that 

standard. In addition, we reported all four independent directors to the Tokyo Stock 

Exchange as independent officers. For our Independence Standards of the 

Independent Directors, please refer to our website (cid:7555) above.

The Company will not disclose or divulge insider information in dialogue with 

shareholders and investors. When disclosing important information regarding the 

Company that might influence investment decisions of investors in compliance 

with relevant laws and regulations, the Disclosure Committee confirms its 

timeliness and appropriateness. In addition, the Company internally regulates 

dialogues regarding book closings during one week before the disclosure of a book 

closing, which is referred to as the (cid:672)Silent Term.(cid:673)

Takeover Defense 

shareholders and investors is permitted.

left to the shareholders.

The Company introduced response measures to large-scale purchases of the Company shares ((cid:672)Takeover Defenses(cid:673)) at the annual general meeting of 

shareholders held in June 2008, and subsequently renewed it with the approval of the shareholders at the annual general meetings of shareholders held in 

June 2011 and June 2014. The Company is a stock company, the shares of which are traded on capital markets, and the free trading of its stock by all 

The Company believes that, in the case of a large-scale purchase of the Company shares, the decision whether to accept such a purchase should ultimately be 

However, taking into account recent capital market conditions in Japan, there is a possibility that a sudden and unsolicited large-scale purchase of a 

Company shares could occur without necessary and sufficient information being disclosed, and without an opportunity to consider the proposal being given to 

the shareholders and investors of the target company, or without the target company’s board of directors being provided with information and time to express 

its opinion and prepare an alternative proposal. Such large-scale purchases of shares could damage the Company’s corporate value and the common interests 

of its shareholders, such as cases in which the purchaser does not intend to manage the Company reasonably or in good faith.

Therefore, the Company decided to introduce and subsequently renew the Takeover Defenses for the purpose of (i) allowing the Company shareholders, 

who will make the final decision, to sufficiently understand the specifics of such a proposal by any person attempting a large-scale purchase of shares and to 

make an appropriate decision, and (ii) securing and increasing the Company’s corporate value or the common interests of the Company shareholders.

Details of the Company’s Takeover Defenses are published on our website. Please refer to (cid:672)Continuation of the Response Measures to Large-Scale 

Purchases of the Company Shares (Takeover Defenses)(cid:673) as of May 23, 2014.

http://www.nsk.com/company/governance/index.html# tab4

The Underlying Strength of Corporate Value

CSR / ESG Management

Corporate Governance

Directors/Officers’ Compensation

１．Policy for Directors/Officers’ Compensation

The previous compensation package for Officers of NSK comprised fixed compensation, performance-based salary, a stock option program (share 

subscription rights) and retirement benefits. However, at the Compensation Committee meeting of NSK held on May 16, 2016, the introduction of a 

share-based compensation program and the ending of stock option programs and retirement benefits were decided.

The new compensation package for NSK’s Officers consists of basic compensation, which includes fixed compensation, a performance-based 

salary that fluctuates and share-based compensation, whereas “directors’ compensation” and “executive officers’ compensation” will be 

respectively determined. When a director also serves as an executive officer, the total of each respective compensation amount shall be paid.

２．Decision-Making Process for Directors/Officers’ Compensation

[Directors’ Compensation]

and share-based compensation.

The Directors’ compensation package consists of basic compensation 

to executive officers with representation rights.

title of the executive officer. Moreover, an additional amount will be paid 

Using the consolidated sales operating income margin and 

Basic compensation is determined based on whether the director is 

consolidated ROE targeted in the Company’s mid-term management 

an independent director or a non-independent director in addition to 

plan and the operating income margin and cash flow as numerical 

the director’s role on committees to which the director belongs and the 

targets for a single fiscal year and index to evaluate quality-contributing 

Board of Directors.

activity as criteria, the total amount of performance-based salary is 

Moreover, for the purpose of further enhancing the commitment of 

calculated. For the compensation amount for the respective executive 

directors to a sustainable increase in corporate value, NSK introduced 

officers, the title and achievement level in the performance of job 

a share-based compensation program using a Board Benefit Trust 

duties are evaluated for payment.

system. Under the program, NSK grants directors shares of NSK stock 

Moreover, for the purpose of further enhancing the commitment of 

at retirement based on a point system whereby points are awarded 

executive officers to a sustainable increase in corporate value, NSK 

depending on whether the director is independent or non-independent 

introduced a share-based compensation program using a Board 

and according to the value of the stock. However, NSK will compensate 

Benefit Trust system. Under the program, NSK grants executive 

directors with money acquired by converting a certain portion of NSK’s 

officers shares of NSK stock at retirement based on a point system 

shares into cash. For directors who also serve as executive officers, 

whereby points are awarded depending on the title of executive officer 

performance shares as directors will not be provided.

[Executive Officer’s Compensation]

The executive officer compensation package consists of basic 

compensation, a performance-based salary and share-based 

compensation.

and according to the value of the stock. However, NSK will compensate 

executive officers with money acquired by converting a certain portion 

of NSK’s shares into cash.

In addition, in the event a member of a management team of 

another company such as a subsidiary or an affiliate, etc., assumes an 

For basic compensation, the amount is determined according to the 

executive officer position, compensation will be determined separately.

３．Directors/Officers’ Compensation, etc.

The amount of compensation for directors and executive officers for the year ended March 31, 2016, was as follows.

■Compensation Total by Classification of Directors/Officers and Compensation Type and No. of Directors/Officers

Classification

Compensation, 

etc., Total

(￥ Million)

Fixed Compensation

Performance-Based Salary

Stock Options

Retirement Benefits

No. of Directors/

Officers

Amount

(￥ Millions)

No. of Directors/

Officers

Amount

(￥ Millions)

No. of Directors/

Officers

Amount

(￥ Millions)

No. of Directors/

Officers

Amount

(￥ Millions)

Directors

(Non-independent)

Directors

(Independent)

Executive 

Officers

132

54

9

6

113

42

ー

ー

9

6

17

12

1,990

38

801

643

39

187

ー

ー

33

2

ー

32

2

ー

357

Notes:1. Compensation for directors (non-independent) includes compensation for directors who also serve as executive officers.

2. The amount of performance-based salary is the payment amount as of July 1, 2016, based on the results for the year ended March 31, 2016. The payment 

amount of performance-based salary as of July 1, 2015, based on the results for the year ended March 31, 2015, was 794 million yen.

3. The amount of the retirement benefit is the accrued officers’ retirement benefits in the year ended March 31, 2016. Retirement benefits to three executive 

officers who retired in the year ended March 31, 2016, were 176 million yen.

4. Figures listed above are rounded down to one million yen.

■Directors/Officers Receiving a Total of 100 Million Yen or More in Consolidated Compensation

Name

Title

Company

Consolidated 

Compensation, 

etc., Total

(￥ Millions)

Amount for Each Item of Consolidated Compensation, etc.

Fixed Compensation

Performance-Based 

(￥ Millions)

Salary (￥ Millions)

Stock Options

(￥ Millions)

Retirement Benefit

(￥ Millions)

Toshihiro

Uchiyama

Bernard

Lindsay

Adrian

Browne

Jürgen

Ackermann

122

Director

NSK Ltd.

Executive

Officer

NSK Ltd.

208

CEO

NSK Americas, Inc.

128

Executive

Officer

NSK Ltd.

100

CEO

NSK Europe Ltd.

6

38

68

78

58

ー

43

114

24

32

1

12

7

4

5

ー

20

17

20

3

Actions for Japan’s Corporate Governance Code
NSK shall adhere to each principle of the Code. In addition, NSK’s implementation status of the 11 items necessary for disclosure is as follows. For details, 
please refer to the following NSK websites. This page is a summary of the relevant sections of the "NSK Corporate Governance Report" (in Japanese only).
① http://www.nsk.com/company/governance/index.html ② http://www.nsk.com/investors/events/

[Principle 1-4. Cross-Shareholdings] 
(1) Policy for Cross-Shareholdings
From the perspective of improving corporate value over the medium to long term, 
NSK holds the shares of other listed companies as cross-shareholdings based on a 
comprehensive consideration of the business stability, growth, partnership and 
reliability. The Board of Directors receives periodic reporting for the objectives and 
rationale behind the cross-shareholdings and supervises such cross-shareholdings.
(2) Criteria of Exercising Voting Rights as to Our Cross-Shareholdings
The exercising of voting rights as to our cross-shareholdings will be determined 
from the perspectives of whether the agenda leads to damaging shareholder value 
and whether there is a contribution to improving the corporate value of NSK and the 
companies in which NSK owns shares over the medium to long term.

 [Principle 1-7. Related Party Transactions] 
NSK’s Board of Directors approves transactions (related party transactions) between 
NSK and our executive officers/major shareholders in accordance with applicable 
laws and regulations including the Companies Act and internal regulations to ensure 
that such transactions do not harm the interests of the Company or the common 
interests of our shareholders and receives periodic reporting. Furthermore, the Audit  
Committee carries out audits on transactions based on necessity.

 [Principle 3-1. Enhanced Information Disclosure] 
i) Company objectives, business strategies and business plans, etc.
NSK stipulated a mission statement, and based on the mission statement, the Board 
of Directors resolves medium- to long-term business strategies and business plans, 
etc. For our mission statement, please refer to page 1 of this NSK Report. For our 
business strategies and business plans, please refer to this NSK Report and NSK’s 
website ② above.
ii) Basic Views and Guidelines on Corporate Governance 
Please refer to page 48 of this NSK Report.
iii) Policies and Procedures of the Compensation Committee in Determining the 
Compensation of Executive Officers and Directors 
Please refer to page 50 of this NSK Report.
iv) Policies and Procedures in the Appointment of Executive Officers and the 
Nomination of Directors by the Nomination Committee 
For the selection of Directors, based on our expected composition of the Board of 
Directors and the qualifications according to NSK’s corporate governance system for 
Directors, candidates for Director are selected and discussed as part of the agenda 
of general shareholders’ meetings via discussion and approval by the Nomination 
Committee.
v) Explanation of Individual Appointment and Nomination When the Nomination 
Committee Selects Executive Officers and Appoints Candidates for Directors 
Reasons for the nomination of candidates for Director discussed in the Nomination 
Committee are described in the notice of ordinary general meeting of shareholders.

[Supplementary Principle 4-1-1. Roles and Responsibilities of the Board of Directors] 
NSK, as a company with three committees separates execution and supervision and 
actively delegates decision making in our business to execution divisions to improve 
the efficiency of management and increase mobility. At the same time, NSK values 
securing the appropriate checking and controlling and compliance with laws by 
allowing the Board of Directors to focus on supervising management.

[Principle 4-8. Effective Use of the Independent Directors]
NSK appointed four independent directors who have beneficial expertise for NSK, 
excellent personality and wide knowledge, as well as the ability to fulfill their roles 
and responsibilities with the aim of contributing to the sustainable growth of the 
Company and increasing corporate value over the medium to long term.

 [Principle 4-9. Independence Standards and Qualification for the Independent Directors] 
NSK stipulated the Independence Standards of the Independent Directors in internal 
regulations and selects candidates for independent director according to that 
standard. In addition, we reported all four independent directors to the Tokyo Stock 
Exchange as independent officers. For our Independence Standards of the 
Independent Directors, please refer to our website ① above.

[Supplementary Principle 4-11-1. Composition of the Board of Directors]
Given the business and industry surroundings of the Company, NSK composes its 
BOD to enable it to be sufficiently familiar with business in order to supervise the 
management decisions regarding important executive matters. When composing the 
board, the size of the board is limited to the extent that variety and balance of 
careers such as expertise and experience are duly reflected.

[Supplementary Principle 4-11-2. Concurrent Positions of the Board of Directors]
The concurrency of outside directors is disclosed via the Notice of Calling, the 
Business Report, securities reports, etc. The Company has disclosed the major 
status of concurrency in addition to legally required items.

[Supplementary Principle 4-11-3. Evaluation of the Board of Directors Effectiveness]
NSK evaluated its Board of Directors for the purpose of verifying the appropriate 
fulfillment of functions of the Board of Directors for the sustainable improvement of 
corporate value and further enhancing the effectiveness of the Board of Directors. 
NSK outsourced evaluations to outside specialists, and self-evaluations with surveys 
and interviews and external evaluations were carried out.

The results confirmed that NSK’s Board of Directors effectively functions as a 
structure that makes transparent, fair and appropriate decisions on a timely basis. 
Based on the evaluation results, NSK clarifies challenges toward further 
improvement and strives to increase the effectiveness of the Board of Directors to 
contribute to the further improvement of corporate value.

[Supplementary Principle 4-14-2. Training of the Directors and Auditors]
The Company conducts trainings for directors upon their assumption and other 
opportunities as necessary on relevant laws such as the company code as well as 
finance, business and governance. For outside directors, the Company explains the 
BOD agenda in detail in advance for them to enrich their view of particular matters 
regarding NSK, which contributes to an eager discussion.

[Principle 5-1. Policy for a Constructive Dialogue with the Shareholders]
(1) Basic Views
The Company believes that in disclosing its management information rapidly and 
fairly as well as seeking to steady return its profit, we are to be a company that 
continues to conform to the expectations of shareholders and investors.
(2) IR system
The Company positions IR activities as the important initiatives of its management 
and implements dialogues with shareholders and investors and actively discloses 
its information. The Company organizes the IR Office as a dedicated division that is 
under direct control of the CEO and supervised by an executive officer who are 
responsible for IR. Moreover, we have an internal system where the IR Office 
discloses information on business and finance, in cooperation with relevant 
divisions, in a comprehensible, fair and appropriate manner.
(3) Measures for dialogue and activity status
The Company regularly holds meetings for institutional investors and analysts 
regarding, among other things, book closings, the mid-term management plan 
and business. Moreover, the Company actively communicates with stakeholders 
through CEO small meetings, conferences hosted by securities companies and 
overseas road shows in addition to individual press interviews. Furthermore, the 
Company conducts a wide range of IR activities such as conferences for individual 
investors.
(4) Relays
The Company relays opinions gathered from dialogue with shareholders and 
investors to executive officers and relevant divisions in a timely manner.
(5) Administration of insider information
The Company will not disclose or divulge insider information in dialogue with 
shareholders and investors. When disclosing important information regarding the 
Company that might influence investment decisions of investors in compliance 
with relevant laws and regulations, the Disclosure Committee confirms its 
timeliness and appropriateness. In addition, the Company internally regulates 
dialogues regarding book closings during one week before the disclosure of a book 
closing, which is referred to as the “Silent Term.”

Takeover Defense 
The Company introduced response measures to large-scale purchases of the Company shares (“Takeover Defenses”) at the annual general meeting of 
shareholders held in June 2008, and subsequently renewed it with the approval of the shareholders at the annual general meetings of shareholders held in 
June 2011 and June 2014. The Company is a stock company, the shares of which are traded on capital markets, and the free trading of its stock by all 
shareholders and investors is permitted.
The Company believes that, in the case of a large-scale purchase of the Company shares, the decision whether to accept such a purchase should ultimately be 
left to the shareholders.

However, taking into account recent capital market conditions in Japan, there is a possibility that a sudden and unsolicited large-scale purchase of a 

Company shares could occur without necessary and sufficient information being disclosed, and without an opportunity to consider the proposal being given to 
the shareholders and investors of the target company, or without the target company’s board of directors being provided with information and time to express 
its opinion and prepare an alternative proposal. Such large-scale purchases of shares could damage the Company’s corporate value and the common interests 
of its shareholders, such as cases in which the purchaser does not intend to manage the Company reasonably or in good faith.

Therefore, the Company decided to introduce and subsequently renew the Takeover Defenses for the purpose of (i) allowing the Company shareholders, 
who will make the final decision, to sufficiently understand the specifics of such a proposal by any person attempting a large-scale purchase of shares and to 
make an appropriate decision, and (ii) securing and increasing the Company’s corporate value or the common interests of the Company shareholders.
Details of the Company’s Takeover Defenses are published on our website. Please refer to “Continuation of the Response Measures to Large-Scale 

Purchases of the Company Shares (Takeover Defenses)” as of May 23, 2014.
http://www.nsk.com/company/governance/index.html# tab4

50

NSK REPORT 2016

NSK REPORT 2016

51

The Underlying Strength of Corporate Value
CSR / ESG Management

Compliance

Basic Philosophy

To remain a company that is trusted by society, NSK believes that 
complying with laws and abiding by the highest ethical standards 
are some of the most important management tasks that the 
Company should undertake. The foundation of compliance at NSK 
is the NSK Code of Corporate Ethics, which outlines universal 
principles that must be followed by all officers and employees.

In light of the demands placed on the Company by society, NSK 

is working to ensure thorough awareness of the content of this 
Code by producing and distributing the NSK Compliance 
Guidebook, which contains detailed explanations of the Code.

NSK’s Efforts for the Enhancement of Compliance

NSK was investigated by the Japan Fair Trade Commission due to 
a suspected violation of the Japan Antimonopoly Act regarding 
sales of bearing products in July 2011. Later, the Company 
received a decision that it violated antimonopoly laws in multiple 
countries. For this sequence of events, we express our sincere 
regret for the concern this matter has caused our shareholders, 
customers and other stakeholders.

NSK regards the situation with the utmost seriousness, and we 

are devoting every effort to ensure strict compliance with all 
applicable laws and regulations in our corporate activities and the 
promotion of business activity based on our social responsibility.

Our main efforts include the continuous provision of mandatory 

compliance training and education for officers and employees. In 
addition, we had issued the “NSK Compliance Guidebook” in 
Japanese, English, Chinese, Korean, Polish, Indonesian and Thai 
by fiscal 2015 so that the content could be understood by 
employees in each country in their native language. Moreover, we 
continue to hold meetings to report and discuss compliance 
matters and carry out inspections and audits of compliance at 
each site. Furthermore, in 2016, we newly designated July 26, the 
date when NSK was investigated by the Japan Fair Trade 
Commission in 2011, as “NSK Corporate Philosophy Day ” in order 
to never forget the cartel incident and to prevent a reoccurrence. 
NSK uses this day as an opportunity to review and reconfirm our 
mission statement with a strong commitment to never cause any 
misdeeds. On this day, via a live broadcast to sites in Japan and 

▶NSK Group Compliance System

several other countries, the President gave a speech and invited 
outside lecturers to speak. Overseas sites are also respectively 
making efforts to comply.

NSK will continue to be united in our commitment to the 
enhancement of compliance by implementing various measures.

Key Policies Implemented for Strengthening Compliance

Compliance Committee Meetings

Compliance Committee Meetings were held 17 times between the 
committee’s establishment in March 2012 and February 2016. NSK 
continues to hold the meeting four times a year.

Global Legal and Compliance Meetings

In May and November 2015, the Global Compliance Meetings were held 
with personnel in charge of compliance from regional headquarters in 
attendance. NSK continues to hold the meeting twice a year.
Compliance Conferences

Compliance Conferences were held in July and December 2015, with 
personnel in charge of compliance attending from each division and 
Group Company in Japan. NSK continues to hold the meeting twice a 
year.

Compliance Education

NSK conducted the following compliance education and training for　
officers and employees of the NSK Group.
1. Antimonopoly Act training

Number of training sessions: 105 for the year ended March 31, 2016 
(74 in Japan, 31 outside Japan)

2. Compliance training (at plants, engineering sections and Group companies)
Topics: Subcontractor laws, information leaks, power harassment, 
internal reporting, etc.

3. E-learning

Topics: Antimonopoly Act of Japan, prevention of bribery, prevention 
of insider trading, etc.

Activities to Raise Awareness Toward Compliance

1. Issued the 2015 edition of the NSK Compliance Guidebook
2. Compliance slogan contest, creation of compliance posters

Of the 6,775 submissions received, two slogans were selected as 
winners and three slogans were selected as runners-up. Posters 
using the two winning slogans were created and put on display at 
all business sites.

3. Compliance newsletter

Since its inaugural edition in November 2012, a total of 37 editions 
have been published.

Audit Committee

President and Chief Executive Officer

Compliance Committee
Committee Chair: President and CEO
Committee Members: 14 executive officers

Direction Coordination

CSR Division Headquarters

Audit

Internal
Audit Department

International Trade 
Management Department

Legal Department

Compliance
Enhancement Office

General 
Affairs
 Department

Public Relations 
Department

Cooperation

Compliance representatives are selected for each division, Group company, and regional headquarters

Japan
Compliance Conference
NSK

Administrative
Divisions

Sales
Divisions

Production
Divisions

Technology
Divisions

NSK Group Companies

Overseas
Global Legal and Compliance Meeting

Regional Headquarters

The
Americas

Europe

China

ASEAN

India

South
Korea

All NSK Group Employees

Risk Management

NSK targets a wide variety of risks in our risk management. Overall risks that could affect business deployment, business performance and 

the financial situation, etc., of the NSK Group are listed in our "Securities Report" (in Japanese only). The particularly important risks are 

translated and listed below. For risks distinct to each business, the actions for such risks and compliance relations, please see the 

corresponding pages (pages 33, 35 and 52) of this NSK Report.

(1) Economic Conditions in Countries, Regions and Industries

(8) Overseas Expansion Risks 

The NSK Group manufactures and sells products to diversified industries including 

The NSK Group conducts businesses in regions worldwide. In the fiscal year under 

automobiles in countries that span the four corners of the globe. As a result, the 

review, overseas sales accounted for more than 60% of consolidated net sales. Our 

business performance and financial position of the Group could be adversely 

businesses in overseas markets share the following common risks related to 

affected by changes in the economic environments of those specific countries and 

expansion overseas.

regions in which it operates.

(2) Reliance on Specific Industries

There is a risk that the business performance and financial position of the NSK 

Group could be adversely affected by sudden declines in demand from the industries 

on which it is heavily reliant. Specifically, the NSK Group is particularly dependent on 

automotive bearings and automotive products for the automotive sector, which 

accounts for more than one-half of its sales. At the same time, the Group’s 

dependence on certain specific fields is increasing. This includes semiconductor 

production equipment in the precision equipment–related product field and the 

machine tool industry, where the sales ratio is high. For industrial machine bearings 

and precision equipment-related products, NSK strives to increase the relative sales 

1) Unforeseen changes in government laws and regulations

2) Changes in social, political and economic conditions, or deterioration in public 

safety

3) Transportation delays or damage to electrical power and other infrastructure 

4) Foreign exchange restrictions and foreign exchange rate fluctuations 

5) Unfavorable changes in tax systems or taxation 

6) Invocation of protective trade restrictions 

7) Credit risk at business partners due to different business practices 

8) Unfamiliar employment systems and social insurance systems 

9) Changes in labor conditions and difficulty in hiring personnel 

10) Outbreak of contagious diseases

ratio of the general machinery field and aftermarket with broad demand to mitigate 

(9) Disaster and Terrorist Risks 

the impact from downward fluctuations in fields upon which NSK is highly 

dependent.

(3) Reliance on Specific Suppliers

The NSK Group’s basic strategy is to avoid reliance on a single supplier by procuring 

components and materials from multiple sources. However, the Group could 

become unable to source necessary items due to the technical requirement that not 

all the suppliers could meet, and a supplier’s lack of production capacity, 

poor-quality products, natural disasters including fires and earthquakes, bankruptcy 

or other reasons, which in turn could impede the Group’s ability to supply products 

to customers. Such a contingency could adversely affect the business performance 

and financial position of the NSK Group.

(4) Rising Prices of Raw Materials

Fluctuations in the international economy, demand trends and a host of other factors 

might substantially affect the prices of such raw materials as iron ore, coking coal, 

scrap and crude oil. In turn, there are concerns that an increase in raw material 

prices could drive up the cost of materials and parts used in the products of the NSK 

Group. The Group is working to reduce costs by procuring items from overseas, 

conducting Value Analysis (VA) and Value Engineering (VE) campaigns, implementing 

a variety of other measures and passing on cost increases through higher product 

prices. However, there is a risk that the NSK Group might not be able to recover cost 

increases fully and that business performance could be adversely affected as a 

result.

(5) Quality Risks 

The NSK Group’s products are used in a broad range of industries and end-user 

products, and our parts are essential for high-precision functions. Our products are 

often used in products that are depended upon to protect human lives, such as 

automobiles, rolling stock and aircraft. The NSK Group has an established 

high-quality assurance system that recognizes the importance of quality. However, if 

a product defect leads to large-scale recalls or product liability lawsuits, the 

business performance and financial position of the Group could be adversely 

affected by the risk of substantial costs and reputational damage.

Although the NSK Group has obtained global product liability insurance and 

recall insurance for some products, there is a risk that this might not be sufficient to 

cover all compensation payments and other losses.

>> Related information on pages 42 and 43, Quality Management

(6) Product Development Risks

The purpose of product development is to bring new products to the market, which 

is an important priority from the viewpoint of income expansion. However, product 

development needs for the NSK Group's products are diversifying in the market 

while the pace of change in these needs has accelerated. Accordingly, there are 

risks that i) sales of newly developed products might be weaker than anticipated 

due to the Group misjudging market needs, ii) sales of products decreasing due to 

delays in product development and mass production, iii) our newly developed 

products inadvertently infringing on the intellectual property rights of a 

competitor’s products and technologies or that other companies might introduce 

new products or iv) new technologies that could be used as alternatives to those 

developed by the Group. If unavoidable, these risks could adversely affect the 

business performance and financial position of the NSK Group.

>>Related information on pages 10‒13, NSK’s Business Activities and Corporate 

Value Creation

(7) Intellectual Property Risks

The NSK Group believes in the importance of protecting its intellectual property 

rights, such as by filing patents on the technologies it develops. The NSK Group 

obtains intellectual property rights in Japan and abroad to sustain and improve the 

competitiveness of its businesses. However, risks relating to the increasing 

importance of intellectual property include i) the risk of invalidity claims concerning 

the intellectual property of the NSK Group, ii) the risk that royalty payments might 

arise regarding the use of the intellectual property rights of a third party for our 

business or the risk that the Group might not be able to obtain permission to use the 

intellectual property of other parties, iii) the risk of infringement of the intellectual 

property by third parties and iv) the risk that the NSK Group might not be able to 

eliminate counterfeit products effectively in certain countries or regions. These risks 

could adversely affect the business performance and financial position of the NSK 

Group.

The production and sales activities of the NSK Group could be adversely affected if its 

business sites or those of its suppliers and customers are hit by disasters, such as 

earthquakes, floods, fires, heavy snow, nuclear incidents or outbreaks of new infectious 

diseases; by terrorist attacks; or by physical and human damage resulting from social 

unrest caused by changes in the political situation. Furthermore, given that insurance 

does not completely cover all damage resulting from fire disasters and natural 

disasters, countermeasures for natural disasters and terrorism are one of the Group’s 

important management tasks, and the Group will do its utmost in this regard, including 

taking precautionary measures to minimize damage and ensure that the NSK Group 

can continue operations. However, the Group cannot completely eliminate such risks.

(10) Litigation Risks

The NSK Group engages in the manufacturing industry, and it could be said that NSK 

faces the risk of lawsuits for product liability, in particular. The NSK Group has 

product liability insurance that covers alleged claims in litigation for product liability. 

Although this insurance will work in some cases, it does not provide unlimited and 

unconditional coverage for claims against the NSK Group for product liability.

In the United States and Canada, plaintiffs, including representatives of 

purchasers of bearings or other products, have filed class actions and a parens 

patriae suit against certain parties, including NSK and some of its subsidiaries in the 

United States, Canada and Europe. The plaintiffs allege, among other things, that the 

defendants conspired with each other to restrict competition in sales of bearings and 

other products in these countries, and seek damages, injunctive relief, and other 

relief against the defendants. Furthermore, in the United Kingdom, plaintiffs, one of 

our customers, have filed a claim against defendants, including NSK and　some of its 

subsidiaries in Europe, in damages related to the past　violation of European 

competition law. NSK or its subsidiaries or its affiliated companies could face 

additional follow-on actions similar to these actions. The NSK Group will manage 

these actions appropriately. Furthermore, as the cases proceed, the NSK Group will 

consider whether it may be able to reach settlements with such plaintiffs and others.

As a result of the above litigation, financial losses, such as payment of monetary 

damages, might occur in the future; however, it is difficult to provide a reasonable 

estimate of the amount of such losses at this time. Their impact on NSK’s 

operational results, etc. is uncertain.

(11) Environmental Risks 

The NSK Group has identified environmental protection activities as an important 

aspect of its management policies and has worked to improve its environmental 

management systems. To date, there have been no major environmental problems. 

However, there is a risk that environmental problems could occur in the future, 

leading to costs relating to compensation payments, product recalls, the suspension 

of production and clean-up operations, as well as fines and other official penalties 

and reputational damage. It is also possible that the introduction of new regulations 

might result in substantial costs.

>>Related information on pages 44 and 45, Environmental Management 

(12) Recruitment Risks 

The NSK Group recognizes that to maintain its competitiveness it needs to 

continuously recruit, hire and train talented people. There is rising competition for 

skilled personnel in our business fields. If the NSK Group is unable to recruit and train 

personnel, it could impair business expansion and have adverse effects on operations.

>> Related information on pages 46 and 47, Human Resource Management 

(13) Labor Dispute Risks and the Labor Environment 

The NSK Group considers that there is little risk of deterioration in labor relations 

because it holds labor management council meetings regularly to discuss 

improvement of the labor environment and labor conditions. However, there is a risk 

that differences in labor practices in overseas, or unforeseeable contingencies, such 

as changes in the legal, economic or social environments, could cause labor 

relations to deteriorate, leading to labor disputes and other problems. In such cases, 

there is a possibility that the Group’s business operations might be curtailed.

The NSK Group is taking initiatives to provide a safe and ideal labor environment, 

but there is also a risk of industrial accidents caused by malfunctioning equipment 

or improper operation by workers. In particular, serious industrial accidents could 

adversely affect the Group’s operations.

>> Related information on page 43, Safety Management, and pages 46 and 47, 

Human Resource Management

52

NSK REPORT 2016

NSK REPORT 2016

53

The Underlying Strength of Corporate Value

CSR / ESG Management

Compliance

Basic Philosophy

To remain a company that is trusted by society, NSK believes that 

complying with laws and abiding by the highest ethical standards 

are some of the most important management tasks that the 

Company should undertake. The foundation of compliance at NSK 

is the NSK Code of Corporate Ethics, which outlines universal 

principles that must be followed by all officers and employees.

In light of the demands placed on the Company by society, NSK 

is working to ensure thorough awareness of the content of this 

Code by producing and distributing the NSK Compliance 

Guidebook, which contains detailed explanations of the Code.

NSK’s Efforts for the Enhancement of Compliance

NSK was investigated by the Japan Fair Trade Commission due to 

a suspected violation of the Japan Antimonopoly Act regarding 

sales of bearing products in July 2011. Later, the Company 

received a decision that it violated antimonopoly laws in multiple 

countries. For this sequence of events, we express our sincere 

regret for the concern this matter has caused our shareholders, 

customers and other stakeholders.

NSK regards the situation with the utmost seriousness, and we 

are devoting every effort to ensure strict compliance with all 

applicable laws and regulations in our corporate activities and the 

promotion of business activity based on our social responsibility.

Our main efforts include the continuous provision of mandatory 

compliance training and education for officers and employees. In 

addition, we had issued the “NSK Compliance Guidebook” in 

Japanese, English, Chinese, Korean, Polish, Indonesian and Thai 

by fiscal 2015 so that the content could be understood by 

employees in each country in their native language. Moreover, we 

continue to hold meetings to report and discuss compliance 

matters and carry out inspections and audits of compliance at 

each site. Furthermore, in 2016, we newly designated July 26, the 

date when NSK was investigated by the Japan Fair Trade 

Commission in 2011, as “NSK Corporate Philosophy Day ” in order 

to never forget the cartel incident and to prevent a reoccurrence. 

NSK uses this day as an opportunity to review and reconfirm our 

mission statement with a strong commitment to never cause any 

misdeeds. On this day, via a live broadcast to sites in Japan and 

▶NSK Group Compliance System

several other countries, the President gave a speech and invited 

outside lecturers to speak. Overseas sites are also respectively 

making efforts to comply.

NSK will continue to be united in our commitment to the 

enhancement of compliance by implementing various measures.

Key Policies Implemented for Strengthening Compliance

Compliance Committee Meetings

Compliance Committee Meetings were held 17 times between the 

committee’s establishment in March 2012 and February 2016. NSK 

continues to hold the meeting four times a year.

Global Legal and Compliance Meetings

In May and November 2015, the Global Compliance Meetings were held 

with personnel in charge of compliance from regional headquarters in 

attendance. NSK continues to hold the meeting twice a year.

Compliance Conferences

Compliance Conferences were held in July and December 2015, with 

personnel in charge of compliance attending from each division and 

Group Company in Japan. NSK continues to hold the meeting twice a 

year.

Compliance Education

NSK conducted the following compliance education and training for　

officers and employees of the NSK Group.

1. Antimonopoly Act training

Number of training sessions: 105 for the year ended March 31, 2016 

(74 in Japan, 31 outside Japan)

2. Compliance training (at plants, engineering sections and Group companies)

Topics: Subcontractor laws, information leaks, power harassment, 

internal reporting, etc.

3. E-learning

of insider trading, etc.

Topics: Antimonopoly Act of Japan, prevention of bribery, prevention 

Activities to Raise Awareness Toward Compliance

1. Issued the 2015 edition of the NSK Compliance Guidebook

2. Compliance slogan contest, creation of compliance posters

Of the 6,775 submissions received, two slogans were selected as 

winners and three slogans were selected as runners-up. Posters 

using the two winning slogans were created and put on display at 

all business sites.

3. Compliance newsletter

have been published.

Since its inaugural edition in November 2012, a total of 37 editions 

Audit Committee

President and Chief Executive Officer

Compliance Committee

Committee Chair: President and CEO

Committee Members: 14 executive officers

Direction Coordination

CSR Division Headquarters

Audit

Internal

Audit Department

International Trade 

Management Department

Legal Department

Compliance

Enhancement Office

General 

Affairs

 Department

Public Relations 

Department

Cooperation

Compliance representatives are selected for each division, Group company, and regional headquarters

Compliance Conference

Japan

NSK

Administrative

Divisions

Sales

Divisions

Production

Divisions

Technology

Divisions

NSK Group Companies

Overseas

Global Legal and Compliance Meeting

Regional Headquarters

The

Americas

Europe

China

ASEAN

India

South

Korea

All NSK Group Employees

Risk Management

NSK targets a wide variety of risks in our risk management. Overall risks that could affect business deployment, business performance and 
the financial situation, etc., of the NSK Group are listed in our "Securities Report" (in Japanese only). The particularly important risks are 
translated and listed below. For risks distinct to each business, the actions for such risks and compliance relations, please see the 
corresponding pages (pages 33, 35 and 52) of this NSK Report.

(1) Economic Conditions in Countries, Regions and Industries
The NSK Group manufactures and sells products to diversified industries including 
automobiles in countries that span the four corners of the globe. As a result, the 
business performance and financial position of the Group could be adversely 
affected by changes in the economic environments of those specific countries and 
regions in which it operates.

(2) Reliance on Specific Industries
There is a risk that the business performance and financial position of the NSK 
Group could be adversely affected by sudden declines in demand from the industries 
on which it is heavily reliant. Specifically, the NSK Group is particularly dependent on 
automotive bearings and automotive products for the automotive sector, which 
accounts for more than one-half of its sales. At the same time, the Group’s 
dependence on certain specific fields is increasing. This includes semiconductor 
production equipment in the precision equipment–related product field and the 
machine tool industry, where the sales ratio is high. For industrial machine bearings 
and precision equipment-related products, NSK strives to increase the relative sales 
ratio of the general machinery field and aftermarket with broad demand to mitigate 
the impact from downward fluctuations in fields upon which NSK is highly 
dependent.

(3) Reliance on Specific Suppliers
The NSK Group’s basic strategy is to avoid reliance on a single supplier by procuring 
components and materials from multiple sources. However, the Group could 
become unable to source necessary items due to the technical requirement that not 
all the suppliers could meet, and a supplier’s lack of production capacity, 
poor-quality products, natural disasters including fires and earthquakes, bankruptcy 
or other reasons, which in turn could impede the Group’s ability to supply products 
to customers. Such a contingency could adversely affect the business performance 
and financial position of the NSK Group.

(4) Rising Prices of Raw Materials
Fluctuations in the international economy, demand trends and a host of other factors 
might substantially affect the prices of such raw materials as iron ore, coking coal, 
scrap and crude oil. In turn, there are concerns that an increase in raw material 
prices could drive up the cost of materials and parts used in the products of the NSK 
Group. The Group is working to reduce costs by procuring items from overseas, 
conducting Value Analysis (VA) and Value Engineering (VE) campaigns, implementing 
a variety of other measures and passing on cost increases through higher product 
prices. However, there is a risk that the NSK Group might not be able to recover cost 
increases fully and that business performance could be adversely affected as a 
result.

(5) Quality Risks 
The NSK Group’s products are used in a broad range of industries and end-user 
products, and our parts are essential for high-precision functions. Our products are 
often used in products that are depended upon to protect human lives, such as 
automobiles, rolling stock and aircraft. The NSK Group has an established 
high-quality assurance system that recognizes the importance of quality. However, if 
a product defect leads to large-scale recalls or product liability lawsuits, the 
business performance and financial position of the Group could be adversely 
affected by the risk of substantial costs and reputational damage.

Although the NSK Group has obtained global product liability insurance and 
recall insurance for some products, there is a risk that this might not be sufficient to 
cover all compensation payments and other losses.
>> Related information on pages 42 and 43, Quality Management

(6) Product Development Risks
The purpose of product development is to bring new products to the market, which 
is an important priority from the viewpoint of income expansion. However, product 
development needs for the NSK Group's products are diversifying in the market 
while the pace of change in these needs has accelerated. Accordingly, there are 
risks that i) sales of newly developed products might be weaker than anticipated 
due to the Group misjudging market needs, ii) sales of products decreasing due to 
delays in product development and mass production, iii) our newly developed 
products inadvertently infringing on the intellectual property rights of a 
competitor’s products and technologies or that other companies might introduce 
new products or iv) new technologies that could be used as alternatives to those 
developed by the Group. If unavoidable, these risks could adversely affect the 
business performance and financial position of the NSK Group.
>>Related information on pages 10‒13, NSK’s Business Activities and Corporate 

Value Creation

(7) Intellectual Property Risks
The NSK Group believes in the importance of protecting its intellectual property 
rights, such as by filing patents on the technologies it develops. The NSK Group 
obtains intellectual property rights in Japan and abroad to sustain and improve the 
competitiveness of its businesses. However, risks relating to the increasing 
importance of intellectual property include i) the risk of invalidity claims concerning 
the intellectual property of the NSK Group, ii) the risk that royalty payments might 
arise regarding the use of the intellectual property rights of a third party for our 
business or the risk that the Group might not be able to obtain permission to use the 
intellectual property of other parties, iii) the risk of infringement of the intellectual 
property by third parties and iv) the risk that the NSK Group might not be able to 
eliminate counterfeit products effectively in certain countries or regions. These risks 
could adversely affect the business performance and financial position of the NSK 
Group.

(8) Overseas Expansion Risks 
The NSK Group conducts businesses in regions worldwide. In the fiscal year under 
review, overseas sales accounted for more than 60% of consolidated net sales. Our 
businesses in overseas markets share the following common risks related to 
expansion overseas.
1) Unforeseen changes in government laws and regulations
2) Changes in social, political and economic conditions, or deterioration in public 

safety

3) Transportation delays or damage to electrical power and other infrastructure 
4) Foreign exchange restrictions and foreign exchange rate fluctuations 
5) Unfavorable changes in tax systems or taxation 
6) Invocation of protective trade restrictions 
7) Credit risk at business partners due to different business practices 
8) Unfamiliar employment systems and social insurance systems 
9) Changes in labor conditions and difficulty in hiring personnel 
10) Outbreak of contagious diseases

(9) Disaster and Terrorist Risks 
The production and sales activities of the NSK Group could be adversely affected if its 
business sites or those of its suppliers and customers are hit by disasters, such as 
earthquakes, floods, fires, heavy snow, nuclear incidents or outbreaks of new infectious 
diseases; by terrorist attacks; or by physical and human damage resulting from social 
unrest caused by changes in the political situation. Furthermore, given that insurance 
does not completely cover all damage resulting from fire disasters and natural 
disasters, countermeasures for natural disasters and terrorism are one of the Group’s 
important management tasks, and the Group will do its utmost in this regard, including 
taking precautionary measures to minimize damage and ensure that the NSK Group 
can continue operations. However, the Group cannot completely eliminate such risks.

(10) Litigation Risks
The NSK Group engages in the manufacturing industry, and it could be said that NSK 
faces the risk of lawsuits for product liability, in particular. The NSK Group has 
product liability insurance that covers alleged claims in litigation for product liability. 
Although this insurance will work in some cases, it does not provide unlimited and 
unconditional coverage for claims against the NSK Group for product liability.
In the United States and Canada, plaintiffs, including representatives of 
purchasers of bearings or other products, have filed class actions and a parens 
patriae suit against certain parties, including NSK and some of its subsidiaries in the 
United States, Canada and Europe. The plaintiffs allege, among other things, that the 
defendants conspired with each other to restrict competition in sales of bearings and 
other products in these countries, and seek damages, injunctive relief, and other 
relief against the defendants. Furthermore, in the United Kingdom, plaintiffs, one of 
our customers, have filed a claim against defendants, including NSK and　some of its 
subsidiaries in Europe, in damages related to the past　violation of European 
competition law. NSK or its subsidiaries or its affiliated companies could face 
additional follow-on actions similar to these actions. The NSK Group will manage 
these actions appropriately. Furthermore, as the cases proceed, the NSK Group will 
consider whether it may be able to reach settlements with such plaintiffs and others.
As a result of the above litigation, financial losses, such as payment of monetary 

damages, might occur in the future; however, it is difficult to provide a reasonable 
estimate of the amount of such losses at this time. Their impact on NSK’s 
operational results, etc. is uncertain.

(11) Environmental Risks 
The NSK Group has identified environmental protection activities as an important 
aspect of its management policies and has worked to improve its environmental 
management systems. To date, there have been no major environmental problems. 
However, there is a risk that environmental problems could occur in the future, 
leading to costs relating to compensation payments, product recalls, the suspension 
of production and clean-up operations, as well as fines and other official penalties 
and reputational damage. It is also possible that the introduction of new regulations 
might result in substantial costs.
>>Related information on pages 44 and 45, Environmental Management 

(12) Recruitment Risks 
The NSK Group recognizes that to maintain its competitiveness it needs to 
continuously recruit, hire and train talented people. There is rising competition for 
skilled personnel in our business fields. If the NSK Group is unable to recruit and train 
personnel, it could impair business expansion and have adverse effects on operations.
>> Related information on pages 46 and 47, Human Resource Management 

(13) Labor Dispute Risks and the Labor Environment 
The NSK Group considers that there is little risk of deterioration in labor relations 
because it holds labor management council meetings regularly to discuss 
improvement of the labor environment and labor conditions. However, there is a risk 
that differences in labor practices in overseas, or unforeseeable contingencies, such 
as changes in the legal, economic or social environments, could cause labor 
relations to deteriorate, leading to labor disputes and other problems. In such cases, 
there is a possibility that the Group’s business operations might be curtailed.

The NSK Group is taking initiatives to provide a safe and ideal labor environment, 

but there is also a risk of industrial accidents caused by malfunctioning equipment 
or improper operation by workers. In particular, serious industrial accidents could 
adversely affect the Group’s operations.
>> Related information on page 43, Safety Management, and pages 46 and 47, 

Human Resource Management

52

NSK REPORT 2016

NSK REPORT 2016

53

The Underlying Strength of Corporate Value
Management

1 Norio Otsuka
Director, Chairman 
Chairperson of the Board of Directors
(Number of Shares Owned: 116,800)

2 Toshihiro Uchiyama

3 Saimon Nogami

4 Shigeyuki Suzuki

5 Yasuhiro Kamio

Executive Officers and Group Officers

Director, President and Chief Executive 
Officer,
Chairperson of the Nomination Committee 
(Number of Shares Owned: 76,000)

Director, Representative Executive Vice 
President,
Member of the Compensation Committee,
Responsible for Administrative Divisions,
Head of Corporate Strategy Division 
Headquarters
(Number of Shares Owned: 32,200)

Director, Representative Executive Vice President,
Head of the Automotive Business Division 
Headquarters,
Head of Automotive Business Division 
Headquarters(cid:138)Automotive Powertrain Division 
Headquarters
(Number of Shares Owned: 41,900)

Director, Representative Executive Vice President,

Head of Industrial Machinery Business Division Headquarters,

Head of Industrial Machinery Business Division 

Headquarters(cid:138)Japan Sales and Marketing Division Headquarters

(Number of Shares Owned: 69,600)

President and 

Chief Executive Officer 

Toshihiro Uchiyama

Vice Presidents

6 Hirotoshi Aramaki

7 Minoru Arai

8 Toshihiko Enomoto

9 Kazuaki Kama

Director, Executive Vice President,
Responsible for Technology Divisions,
Head of Technology Development Division 
Headquarters
(Number of Shares Owned: 48,300)

Director, Senior Vice President,
Responsible for Manufacturing Divisions,
Responsible for Quality Assurance Divisions,
Head of Manufacturing Strategy Division 
Headquarters,
Head of Procurement Division Headquarters
(Number of Shares Owned: 22,300)

Director,
Member of the Audit Committee
(Number of Shares Owned: 12,716)

Outside Director,
Independent Director,
Member of the Nomination Committee,
Executive Corporate Advisor of IHI Corporation,
Independent Director of Kyokuto Boeki Kaisha, 
LTD.,
Independent Director of Konica Minolta, Inc.,
Outside Director of Sumitomo Life Insurance 
Company
(Number of Shares Owned: 900)

11 Yasunobu Furukawa

12 Teruhiko Ikeda

Outside Director,
Independent Director,
Chairperson of the Audit Committee,
Member of the Compensation Committee,
Certified Public Accountant,
Independent Director of Keisei Electric Railway 
Co., Ltd.,
Outside Corporate Auditor of Saitama Resona 
Bank, Ltd.
(Number of Shares Owned: 500)

Outside Director,
Independent Director,
Chairperson of the Compensation 
Committee,
Advisor of Mizuho Trust & Banking Co., Ltd.,
Independent Director of Sapporo Holdings 
Limited,
Outside Corporate Auditor of TOKYO FM 
Broadcasting Co., Ltd.
(Number of Shares Owned: 0)

Notes: 1. For the career summary of each director, the independence of the independent directors  
and the reasons behind their appointments, please see the Notice of the 155th Ordinary 
General Meeting of Shareholders of NSK and Independent Directors/Auditors 
Notifications published on the following websites of the Tokyo Stock Exchange.
[Notice of the Ordinary General Meeting of Shareholders]
   http://www2.tse.or.jp/disc/64710/140120160530405538.pdf
[Independent Directors/Auditors Notifications] (Japanese only)
   http://www2.tse.or.jp/disc/64710/140120160530405543.pdf

            2. Number of the Company’s shares owned as of March 31, 2016

10 Ichiro Tai

Outside Director,

Independent Director,

Member of the Nomination Committee,

Member of the Audit Committee

(Number of Shares Owned: 3,400)

11

7

5

9

1

10

12

3

4

6

8

2

Hiroyuki Itou

Jürgen Ackermann

Masaru Takayama

Seiji Ijuin

Nobuaki Mitamura

Takashi Yamanouchi

Kazuya Fukuda

Kenichi Yamana

Akitoshi Ichii

Steven Beckman

Susumu Ishikawa

Tatsuya Atarashi

Tomoyuki Yoshikiyo

Guoping Yu

Seong-Il Jo

Yoshinori Sugimoto

Sakae Kuwashiro

Group Officers

Representative 

Executive Vice 

Presidents 

Executive Vice 

Presidents 

Senior Vice 

Presidents

Saimon Nogami

Shigeyuki Suzuki

Yasuhiro Kamio

Hirotoshi Aramaki

Masatada Fumoto

Yasutsugu Hada

Nobuo Goto

Naoki Sugimoto

Koji Inoue

Yukio Ikemura

Hiroshi Suzuki

Minoru Arai

Hiroya Miyazaki

Adrian Browne

Shin Ikeda

Katsumi Kobayashi

Issei Murata

Masami Shinomoto

Hiromasa Orito

Kazunori Iritani

54

NSK REPORT 2016

NSK REPORT 2016

55

The Underlying Strength of Corporate Value

Management

1 Norio Otsuka

Director, Chairman 

Chairperson of the Board of Directors

(Number of Shares Owned: 116,800)

2 Toshihiro Uchiyama

3 Saimon Nogami

4 Shigeyuki Suzuki

Director, President and Chief Executive 

Director, Representative Executive Vice 

Officer,

Chairperson of the Nomination Committee 

(Number of Shares Owned: 76,000)

President,

Member of the Compensation Committee,

Responsible for Administrative Divisions,

Head of Corporate Strategy Division 

Headquarters

Director, Representative Executive Vice President,

Head of the Automotive Business Division 

Headquarters,

Headquarters

Head of Automotive Business Division 

Headquarters(cid:138)Automotive Powertrain Division 

(Number of Shares Owned: 32,200)

(Number of Shares Owned: 41,900)

6 Hirotoshi Aramaki

7 Minoru Arai

8 Toshihiko Enomoto

9 Kazuaki Kama

Director, Executive Vice President,

Responsible for Technology Divisions,

Head of Technology Development Division 

Headquarters

Director, Senior Vice President,

Responsible for Manufacturing Divisions,

Responsible for Quality Assurance Divisions,

Head of Manufacturing Strategy Division 

(Number of Shares Owned: 48,300)

Headquarters,

Director,

Member of the Audit Committee

(Number of Shares Owned: 12,716)

Head of Procurement Division Headquarters

(Number of Shares Owned: 22,300)

Outside Director,

Independent Director,

Member of the Nomination Committee,

Executive Corporate Advisor of IHI Corporation,

Independent Director of Kyokuto Boeki Kaisha, 

LTD.,

Independent Director of Konica Minolta, Inc.,

Outside Director of Sumitomo Life Insurance 

Company

(Number of Shares Owned: 900)

11 Yasunobu Furukawa

12 Teruhiko Ikeda

Outside Director,

Independent Director,

Outside Director,

Independent Director,

Chairperson of the Audit Committee,

Chairperson of the Compensation 

Member of the Compensation Committee,

Committee,

Certified Public Accountant,

Advisor of Mizuho Trust & Banking Co., Ltd.,

Independent Director of Keisei Electric Railway 

Independent Director of Sapporo Holdings 

Outside Corporate Auditor of Saitama Resona 

Outside Corporate Auditor of TOKYO FM 

Co., Ltd.,

Bank, Ltd.

(Number of Shares Owned: 500)

Limited,

Broadcasting Co., Ltd.

(Number of Shares Owned: 0)

Notes: 1. For the career summary of each director, the independence of the independent directors  

and the reasons behind their appointments, please see the Notice of the 155th Ordinary 

General Meeting of Shareholders of NSK and Independent Directors/Auditors 

Notifications published on the following websites of the Tokyo Stock Exchange.

[Notice of the Ordinary General Meeting of Shareholders]

   http://www2.tse.or.jp/disc/64710/140120160530405538.pdf

[Independent Directors/Auditors Notifications] (Japanese only)

   http://www2.tse.or.jp/disc/64710/140120160530405543.pdf

            2. Number of the Company’s shares owned as of March 31, 2016

5 Yasuhiro Kamio

Executive Officers and Group Officers

Director, Representative Executive Vice President,
Head of Industrial Machinery Business Division Headquarters,
Head of Industrial Machinery Business Division 
Headquarters(cid:138)Japan Sales and Marketing Division Headquarters
(Number of Shares Owned: 69,600)

10 Ichiro Tai
Outside Director,
Independent Director,
Member of the Nomination Committee,
Member of the Audit Committee
(Number of Shares Owned: 3,400)

11

7

5

9

1

10

12

3

4

6

8

2

President and 
Chief Executive Officer 

Toshihiro Uchiyama

Vice Presidents

Representative 
Executive Vice 
Presidents 

Executive Vice 
Presidents 

Senior Vice 
Presidents

Saimon Nogami
Shigeyuki Suzuki
Yasuhiro Kamio

Hirotoshi Aramaki
Masatada Fumoto

Yasutsugu Hada
Nobuo Goto
Naoki Sugimoto
Koji Inoue
Yukio Ikemura
Hiroshi Suzuki
Minoru Arai
Hiroya Miyazaki
Adrian Browne
Shin Ikeda
Katsumi Kobayashi
Issei Murata
Masami Shinomoto
Hiromasa Orito
Kazunori Iritani

Group Officers

Hiroyuki Itou
Jürgen Ackermann
Masaru Takayama
Seiji Ijuin
Nobuaki Mitamura
Takashi Yamanouchi
Kazuya Fukuda
Kenichi Yamana
Akitoshi Ichii
Steven Beckman
Susumu Ishikawa
Tatsuya Atarashi
Tomoyuki Yoshikiyo
Guoping Yu

Seong-Il Jo
Yoshinori Sugimoto
Sakae Kuwashiro

54

NSK REPORT 2016

NSK REPORT 2016

55

Data Section 
Consolidated Balance Sheets (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Financial Position (IFRS)

NSK Ltd. and Consolidated Subsidiaries

As of March 31,

Assets

Current assets:

Non-current assets: Property, plant 
and equipment

Cash and deposits
Notes and accounts receivable
Short-term investment securities
Finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Others
Less allowance for doubtful accounts

Total current assets

Buildings and structures
Machinery, vehicles and equipment
Tools, furniture and fixtures
Land
Lease assets
Construction in progress
Accumulated depreciation

Total property, plant and equipment

Intangible fixed 
assets

Goodwill
Others

Investments 
and other assets

Total intangible fixed assets

Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Others
Less allowance for doubtful accounts
Total investments and other assets

Total non-current assets

Total assets

Liabilities

Current liabilities:

Non-current liabilities:

Total liabilities

Net Assets

Shareholders’ equity

Accumulated other 
comprehensive income

Share subscription rights
Non-controlling interests

Total net assets

Total liabilities and net assets

Notes and accounts payable
Short-term loans
Current portion of long-term loans payable
Current portion of corporate bonds
Accrued income taxes
Others

Total current liabilities

Corporate bonds
Long-term loans
Deferred tax liabilities
Accrued officers' retirement benefits
Reserves for environmental safety measures
Net defined benefit liability
Others

Total non-current liabilities

Common stock
Additional paid-in capital
Retained earnings
Treasury stock

Total shareholders' equity

Valuation difference on available-for-sale securities
Translation adjustments
Remeasurements of defined benefit plans

Total accumulated other comprehensive income

137,900
69,339
47,569
(cid:693)
5,804
78,823

339,436

60,000
149,491
48,088
1,674
179
40,059
8,375

307,867

127,176
61,080
18,168
20,000
5,047
75,804

307,277

40,000
138,903
32,798
1,762
1,751
34,072
8,091

257,381

647,304

564,658

67,176
78,938
252,667
(4,083)

394,699

44,438
7,592
9,316

61,347

252
25,560

67,176
79,127
301,411
(3,949)

443,765

33,649
(18,633)
(10,202)

4,812

476
24,505

481,859

473,560

1,129,164

1,038,218

 (Millions of Yen)

2015

2016

As of March 31,

 (Millions of Yen)

2015

2016

76,089
189,635
106,141
74,060
45,363
22,746
11,807
49,985
(2,674)

573,157

228,425
655,604
76,789
37,836
3,198
25,734
(692,693)

334,896

111
11,680

11,791

118,672
283
3,113
77,361
10,267
(380)
209,319

556,007

80,732
176,834
88,589
68,991
39,965
21,607
10,956
46,306
(2,237)

531,745

225,837
652,280
78,671
37,751
3,508
20,745
(691,763)

327,031

 (cid:693)
13,274

13,274

99,301
198
6,712
49,898
10,374
(318)
166,167

506,473

Assets

Current assets 

Cash and cash equivalents

Trade receivables and other receivables

Non-current assets 

Property, plant and equipment

Intangible assets 

Investments accounted for using equity method

Total assets

Liabilities and 

Liabilities 

Equity

  Current liabilities 

Trade payables and other payables

1,125,509

1,032,374

1,129,164

1,038,218

  Non-current liabilities 

Financial liabilities

Inventories 

Other financial assets 

Income tax receivables

Other current assets

Total current assets

Other financial assets 

Deferred tax assets

Net defined benefit assets

Other non-current assets

Total non-current assets

Other financial liabilities

Provisions

Income tax payables

Other current liabilities

Total current liabilities

Provisions

Deferred tax liabilities

Net defined benefit liabilities

Other non-current liabilities

Total non-current liabilities 

Issued capital

Capital surplus 

Retained earnings 

Treasury shares

Other components of equity

184,374

200,251

142,171

2,860

5,009

18,943

553,610

331,286

14,051

21,171

106,932

17,623

77,361

3,471

571,899

147,901

119,795

238

5,421

54,122

327,479

210,175

292

51,294

44,057

5,408

311,227

67,176

79,191

230,214

(4,083)

89,038

461,536

25,265

175,515

182,332

130,564

4,052

2,174

16,613

511,253

323,116

15,785

22,179

86,163

20,455

49,898

3,522

521,121

140,713

99,674

150

4,536

48,172

293,247

179,654

1,855

35,540

38,125

5,080

260,255

67,176

79,603

278,524

(3,949)

33,306

454,661

24,210

Total liabilities

Equity 

638,707

553,503

Total equity attributable to owners of the parent

Non-controlling interests

Total equity 

Total liabilities and equity 

486,801

478,871

1,125,509

1,032,374

56

NSK REPORT 2016

NSK REPORT 2016

57

 
 
 
　　　　　　
 
 
　　
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Data Section 

Consolidated Balance Sheets (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Financial Position (IFRS)

NSK Ltd. and Consolidated Subsidiaries

As of March 31,

Assets

Current assets:

 (Millions of Yen)

2015

2016

As of March 31,

Assets

Current assets 

Non-current assets 

Total assets

Liabilities and 
Equity

Liabilities 
  Current liabilities 

1,129,164

1,038,218

  Non-current liabilities 

Total liabilities

Equity 

Cash and cash equivalents
Trade receivables and other receivables
Inventories 
Other financial assets 
Income tax receivables
Other current assets

Total current assets

Property, plant and equipment
Intangible assets 
Investments accounted for using equity method
Other financial assets 
Deferred tax assets
Net defined benefit assets
Other non-current assets

Total non-current assets

Trade payables and other payables
Other financial liabilities
Provisions
Income tax payables
Other current liabilities

Total current liabilities

Financial liabilities
Provisions
Deferred tax liabilities
Net defined benefit liabilities
Other non-current liabilities

Total non-current liabilities 

Issued capital
Capital surplus 
Retained earnings 
Treasury shares
Other components of equity

647,304

564,658

Total equity attributable to owners of the parent
Non-controlling interests

Total equity 

Total liabilities and equity 

Non-current assets: Property, plant 

Buildings and structures

and equipment

Machinery, vehicles and equipment

Tools, furniture and fixtures

Cash and deposits

Notes and accounts receivable

Short-term investment securities

Finished goods

Work in process

Raw materials and supplies

Deferred tax assets

Others

Less allowance for doubtful accounts

Total current assets

Land

Lease assets

Construction in progress

Accumulated depreciation

Total property, plant and equipment

Intangible fixed 

Goodwill

assets

Others

Total intangible fixed assets

Investments 

Investment securities

and other assets

Long-term loans receivable

Deferred tax assets

Net defined benefit asset

Others

Less allowance for doubtful accounts

Total investments and other assets

Total non-current assets

Notes and accounts payable

Short-term loans

Current portion of long-term loans payable

Current portion of corporate bonds

Accrued income taxes

Others

Total current liabilities

Corporate bonds

Long-term loans

Deferred tax liabilities

Accrued officers' retirement benefits

Reserves for environmental safety measures

Net defined benefit liability

Others

Total non-current liabilities

Common stock

Additional paid-in capital

Retained earnings

Treasury stock

Total shareholders' equity

Valuation difference on available-for-sale securities

Translation adjustments

Remeasurements of defined benefit plans

Total accumulated other comprehensive income

Total assets

Liabilities

Current liabilities:

Non-current liabilities:

Total liabilities

Net Assets

Shareholders’ equity

Accumulated other 

comprehensive income

Share subscription rights

Non-controlling interests

Total net assets

Total liabilities and net assets

76,089

189,635

106,141

74,060

45,363

22,746

11,807

49,985

(2,674)

573,157

228,425

655,604

76,789

37,836

3,198

25,734

(692,693)

334,896

111

11,680

11,791

118,672

283

3,113

77,361

10,267

(380)

209,319

556,007

137,900

69,339

47,569

(cid:693)

5,804

78,823

339,436

60,000

149,491

48,088

1,674

179

40,059

8,375

307,867

67,176

78,938

252,667

(4,083)

394,699

44,438

7,592

9,316

61,347

252

25,560

80,732

176,834

88,589

68,991

39,965

21,607

10,956

46,306

(2,237)

531,745

225,837

652,280

78,671

37,751

3,508

20,745

(691,763)

327,031

 (cid:693)

13,274

13,274

99,301

198

6,712

49,898

10,374

(318)

166,167

506,473

127,176

61,080

18,168

20,000

5,047

75,804

307,277

40,000

138,903

32,798

1,762

1,751

34,072

8,091

257,381

67,176

79,127

301,411

(3,949)

443,765

33,649

(18,633)

(10,202)

4,812

476

24,505

481,859

473,560

1,129,164

1,038,218

 (Millions of Yen)

2015

2016

184,374
200,251
142,171
2,860
5,009
18,943

553,610

331,286
14,051
21,171
106,932
17,623
77,361
3,471

571,899

175,515
182,332
130,564
4,052
2,174
16,613

511,253

323,116
15,785
22,179
86,163
20,455
49,898
3,522

521,121

1,125,509

1,032,374

147,901
119,795
238
5,421
54,122

327,479

210,175
292
51,294
44,057
5,408

311,227

140,713
99,674
150
4,536
48,172

293,247

179,654
1,855
35,540
38,125
5,080

260,255

638,707

553,503

67,176
79,191
230,214
(4,083)
89,038

461,536
25,265

67,176
79,603
278,524
(3,949)
33,306

454,661
24,210

486,801

478,871

1,125,509

1,032,374

56

NSK REPORT 2016

NSK REPORT 2016

57

 
 
 
　　　　　　
 
 
　　
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Data Section
Consolidated Statements of Operations (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income (IFRS)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31,

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income (expenses):
  Interest and dividend income
  Interest expenses
  Equity in earnings of affiliated companies
  Product compensation
  Others, net

 (Millions of Yen)

2015

2016

Year ended March 31,

 (Millions of Yen)

2015

2016

974,885
749,374
225,511
128,183
97,327

2,748
(5,059)
2,659
(5,507)
(1,165)
(6,325)

975,319
751,093
224,225
129,498
94,726

2,378
 (4,728)
4,729
(2,234)
(908)
(762)

Ordinary income

91,002

93,964

Extraordinary income (loss)
  Gain on sales of investment securities
  Antimonopoly Act related loss
  Reserves for environmental safety measures
Income before tax expenses and minority interests

Income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income

Net income attributable to non-controlling interests
Net income attributable to shareholders of the parent

(cid:693)
3,025
(cid:693)
87,976

20,340
2,380
22,721
65,255

3,293
61,962

701
2,647
1,571
90,447

20,221
(555)
19,665
70,781

3,611
67,169

Consolidated Statements of Comprehensive Income (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31,

Net income
Other comprehensive income
  Valuation difference on available-for-sale securities
  Translation adjustments
  Remeasurement of defined benefit plans
  Share of other comprehensive income of associates accounted for using equity method
  Total other comprehensive income

Comprehensive income
  (Details)
  Comprehensive income attributable to parent company
  Comprehensive income attributable to non-controlling interests

 (Millions of Yen)

2015

2016

65,255

70,781

13,040
23,016
19,678
402
56,138

(10,722)
(27,317)
(19,195)
(990)
(58,226)

121,393

12,554

116,215
5,178

10,634
1,920

58

NSK REPORT 2016

Selling, general and administrative expenses 

Share of profits of investments accounted for using the equity method

Other operating expenses

Sales

Cost of sales

  Gross profit

  Operating income 

Financial income

Financial expenses

  Income before income taxes

Income tax expense

  Net income

Net income attributable to:

  Owners of the parent

  Non-controlling interests

(Earnings per share attributable to owners of the parent)

Basic earnings per share (yen)

Diluted earnings per share (yen)

974,885

750,725

224,160

131,857

2,670

8,014

86,958

2,777

5,108

84,626

21,916

62,710

59,383

3,326

109.79

109.66

975,319

755,663

219,655

130,130

4,740

4,731

89,534

2,388

4,714

87,208

17,904

69,303

65,719

3,584

121.38

121.30

Consolidated Statements of Comprehensive Income (IFRS)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31,

Net income

Other comprehensive income

2015

2016

Before tax effect

Tax effect

Amount (net)

Before tax effect

Tax effect

Amount (net)

 (Millions of Yen)

62,710

69,303

Items that will not be reclassified to profit or loss

  Net changes in financial assets measured at fair value 

  through other comprehensive income

  Remeasurements of net defined benefit liability (asset)

29,973

(10,739)

19,233

(28,337)

10,309

(18,028)

17,524

(3,716)

13,807

(17,263)

6,384

(10,879)

Total items that will not be reclassified to profit or loss

47,497

(14,456)

33,040

(45,601)

16,693

(28,907)

Items that may be reclassified to profit or loss

  Exchange differences on translating foreign operations

25,256

25,256

(28,276)

Total items that may be reclassified to profit or loss

25,256

25,256

(28,276)

Total other comprehensive income

72,753

(14,456)

58,297

(73,878)

16,693

(57,184)

(cid:693)

(cid:693)

121,008

115,834

5,173

(cid:693)

(cid:693)

(28,276)

(28,276)

12,119

10,198

1,920

NSK REPORT 2016

59

Total comprehensive income for the period

Total comprehensive income for the period attributable to:

  Owners of the parent

  Non-controlling interests 

Data Section

Consolidated Statements of Operations (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income (IFRS)

NSK Ltd. and Consolidated Subsidiaries

 (Millions of Yen)

2015

2016

Year ended March 31,

 (Millions of Yen)

2015

2016

Sales
Cost of sales

  Gross profit

Selling, general and administrative expenses 
Share of profits of investments accounted for using the equity method
Other operating expenses

  Operating income 

Financial income
Financial expenses

  Income before income taxes

Income tax expense

  Net income

Net income attributable to:
  Owners of the parent
  Non-controlling interests
(Earnings per share attributable to owners of the parent)
Basic earnings per share (yen)
Diluted earnings per share (yen)

974,885
750,725

224,160

131,857
2,670
8,014

86,958

2,777
5,108

84,626

21,916

62,710

59,383
3,326

109.79
109.66

975,319
755,663

219,655

130,130
4,740
4,731

89,534

2,388
4,714

87,208

17,904

69,303

65,719
3,584

121.38
121.30

Consolidated Statements of Comprehensive Income (IFRS)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31,

Net income

Other comprehensive income

Before tax effect

2015
Tax effect

Amount (net)

Before tax effect

62,710

2016
Tax effect

 (Millions of Yen)

Amount (net)

69,303

Items that will not be reclassified to profit or loss
  Remeasurements of net defined benefit liability (asset)
  Net changes in financial assets measured at fair value 
  through other comprehensive income

29,973

(10,739)

19,233

(28,337)

10,309

(18,028)

17,524

(3,716)

13,807

(17,263)

6,384

(10,879)

Total items that will not be reclassified to profit or loss

47,497

(14,456)

33,040

(45,601)

16,693

(28,907)

Items that may be reclassified to profit or loss
  Exchange differences on translating foreign operations

Total items that may be reclassified to profit or loss

25,256

25,256

(cid:693)

(cid:693)

25,256

(28,276)

25,256

(28,276)

(cid:693)

(cid:693)

(28,276)

(28,276)

Total other comprehensive income

72,753

(14,456)

58,297

(73,878)

16,693

(57,184)

Total comprehensive income for the period

Total comprehensive income for the period attributable to:
  Owners of the parent
  Non-controlling interests 

121,008

115,834
5,173

12,119

10,198
1,920

NSK REPORT 2016

59

Ordinary income

91,002

93,964

Year ended March 31,

Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Operating income

Non-operating income (expenses):

  Interest and dividend income

  Interest expenses

  Equity in earnings of affiliated companies

  Product compensation

  Others, net

Extraordinary income (loss)

  Gain on sales of investment securities

  Antimonopoly Act related loss

  Reserves for environmental safety measures

Income before tax expenses and minority interests

Income taxes

Current income taxes

Deferred income taxes

Total income taxes

Net income

Net income attributable to non-controlling interests

Net income attributable to shareholders of the parent

974,885

749,374

225,511

128,183

97,327

2,748

(5,059)

2,659

(5,507)

(1,165)

(6,325)

3,025

(cid:693)

(cid:693)

87,976

20,340

2,380

22,721

65,255

3,293

61,962

975,319

751,093

224,225

129,498

94,726

2,378

 (4,728)

4,729

(2,234)

(908)

(762)

701

2,647

1,571

90,447

20,221

(555)

19,665

70,781

3,611

67,169

Consolidated Statements of Comprehensive Income (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31,

Net income

Other comprehensive income

  Valuation difference on available-for-sale securities

  Translation adjustments

  Remeasurement of defined benefit plans

  Share of other comprehensive income of associates accounted for using equity method

  Total other comprehensive income

Comprehensive income

  (Details)

  Comprehensive income attributable to parent company

  Comprehensive income attributable to non-controlling interests

 (Millions of Yen)

2015

2016

65,255

70,781

13,040

23,016

19,678

402

56,138

(10,722)

(27,317)

(19,195)

(990)

(58,226)

121,393

12,554

116,215

5,178

10,634

1,920

58

NSK REPORT 2016

Data Section
Consolidated Statements of Changes in Net Assets (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Changes in Equity (IFRS)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31, 2015

Balance at the beginning of current period
  Cumulative effects of changes in accounting policies

Restated Balance 

Changes of items during the period
  Cash dividends
  Net income attributable to shareholders of the parent
  Purchase of treasury stock
  Disposal of treasury stock
  Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of current period

Shareholders' equity

 (Millions of Yen)

Common stock 

Additional paid-in capital 

Retained earnings 

Treasury stock 

Total shareholders(cid:671) equity

67,176
(cid:693)

67,176

(cid:693)
(cid:693)
(cid:693)
(cid:693)
(cid:693)

(cid:693)

78,560
(cid:693)

78,560

(cid:693)
(cid:693)
(cid:693)
378
(cid:693)

378

67,176

78,938

210,739
(4,872)

205,867

(15,161)
61,962
(cid:693)
(cid:693)
(cid:693)

46,800

252,667

(4,369)
(cid:693)

(4,369)

(cid:693)
(49)
335
(cid:693)

285

(4,083)

352,107
(4,872)

347,234

(15,161)
61,962
(49)
714
(cid:693)

47,464

394,699

Accumulated other comprehensive income

Valuation difference on
available-for-sale securities

Translation 
adjustments 

Remeasurements of 
defined benefit plans

Total other 
comprehensive income

Share subscription
rights 

Non-controlling 
interests 

Total net assets

Balance at the beginning of current period
  Cumulative effects of changes in 
  accounting policies

31,387

(14,067)

(10,225)

(cid:693)

(cid:693)

(cid:693)

Restated Balance 

31,387

(14,067)

(10,225)

Changes of items during the period
  Cash dividends
  Net income attributable to 
  shareholders of the parent
  Purchase of treasury stock
  Disposal of treasury stock
  Net changes of items other than 
  shareholders’ equity

Total changes of items during the period

Balance at the end of current period

(cid:693)

(cid:693)

(cid:693)
(cid:693)

13,050

13,050

44,438

(cid:693)

(cid:693)

(cid:693)
(cid:693)

21,659

21,659

7,592

(cid:693)

(cid:693)

(cid:693)
(cid:693)

19,542

19,542

9,316

7,094

(cid:693)

7,094

(cid:693)

(cid:693)

(cid:693)
(cid:693)

54,253

54,253

61,347

328

(cid:693)

328

(cid:693)

(cid:693)
(cid:693)

(75)

(75)

252

22,626

(cid:693)

22,626

(cid:693)

(cid:693)

(cid:693)
(cid:693)

2,934

2,934

25,560

382,155

(4,872)

377,283

(15,161)

61,962

(49)
714

57,112

104,576

481,859

Year ended March 31, 2016

Balance at the beginning of current period
  Cumulative effects of changes in accounting policies

Restated Balance 

Changes of items during the period
  Cash dividends
  Net income attributable to shareholders of the parent
  Purchase of treasury stock
  Disposal of treasury stock
  Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of current period

Shareholders' equity

 (Millions of Yen)

Common stock 

Additional paid-in capital 

Retained earnings 

Treasury stock 

Total shareholders(cid:671) equity

67,176
(cid:693)

67,176

(cid:693)
(cid:693)
(cid:693)
(cid:693)
(cid:693)

(cid:693)

78,938
(cid:693)

78,938

(cid:693)
(cid:693)
(cid:693)
188
(cid:693)

188

67,176

79,127

252,667
(cid:693)

252,667

(18,425)
67,169
(cid:693)
(cid:693)
(cid:693)

48,743

301,411

(4,083)
(cid:693)

(4,083)

(cid:693)
(cid:693)
(12)
146
(cid:693)

134

(3,949)

394,699
(cid:693)

394,699

(18,425)
67,169
(12)
335
(cid:693)

49,066

443,765

Accumulated other comprehensive income

Valuation difference on
available-for-sale securities

Translation 
adjustments 

Remeasurements of
defined benefit plans 

Total other 
comprehensive income

Share subscription
rights 

Non-controlling
interests 

Total net assets

Balance at the beginning of current period
  Cumulative effects of changes in 
  accounting policies

Restated Balance 

Changes of items during the period
  Cash dividends
  Net income attributable to 
  shareholders of the parent
  Purchase of treasury stock
  Disposal of treasury stock
  Net changes of items other than 
  shareholders’ equity

44,438

(cid:693)

44,438

(cid:693)

(cid:693)

(cid:693)
(cid:693)

7,592

(cid:693)

7,592

(cid:693)

(cid:693)

(cid:693)
(cid:693)

9,316

(cid:693)

9,316

(cid:693)

(cid:693)

(cid:693)
(cid:693)

61,347

(cid:693)

61,347

(cid:693)

(cid:693)

(cid:693)
(cid:693)

(10,789)

(26,226)

(19,519)

(56,535)

Total changes of items during the period

Balance at the end of current period

(10,789)

33,649

(26,226)

(18,633)

(19,519)

(10,202)

(56,535)

4,812

252

(cid:693)

252

(cid:693)

(cid:693)

(cid:693)
(cid:693)

223

223

476

25,560

481,859

(cid:693)

(cid:693)

25,560

481,859

(cid:693)

(cid:693)

(cid:693)
(cid:693)

(1,054)

(1,054)

24,505

(18,425)

67,169

(12)
335

(57,366)

(8,299)

473,560

Equity attributable to owners of  the parent

Other components of equity

Exchange differences 

on translating foreign 

operations 

Net changes in financial assets 

measured at fair value through 

other comprehensive income 

Remeasurements of 

net defined benefit 

liability (asset) 

Total

Total

Non-controlling

interests

Total equity

Opening balance

  Net income

  Other comprehensive income 

Total comprehensive income 

for the period

  Purchase of treasury shares

  Disposal of treasury shares

  Share-based payment 

  transactions

  Cash dividends

  Other

Total transactions with owners, etc.

23,451

23,451

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

32,742

(cid:693)

13,769

13,769

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(155)

(155)

46,356

19,230

19,230

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

Closing balance 

23,451

19,230

89,038

Year ended March 31, 2015

Opening balance

  Net income

  Other comprehensive income 

Total comprehensive income for the period

  Purchase of treasury shares

  Disposal of treasury shares

  Share-based payment transactions

  Cash dividends

  Other

Closing balance 

Total transactions with owners, etc.

Year ended March 31, 2016

Opening balance

  Net income

  Other comprehensive income 

Total comprehensive income for the period

  Purchase of treasury shares

  Disposal of treasury shares

  Share-based payment transactions

  Cash dividends

  Other

Closing balance 

Total transactions with owners, etc.

Equity attributable to owners of the parent

Issued capital

 Capital surplus  

Retained earnings 

Treasury shares

 (Millions of Yen)

67,176

78,888

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

67,176

32,742

(cid:693)

56,451

56,451

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(155)

(155)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

67,176

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

378

(75)

303

79,191

356,351

59,383

56,451

115,834

(49)

714

(75)

(11,362)

124

(10,649)

461,536

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

188

223

412

79,603

461,536

65,719

(55,520)

(12)

335

223

(17,877)

257

(17,074)

454,661

181,913

59,383

59,383

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(11,362)

280

(11,082)

230,214

22,335

3,326

1,846

5,173

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(2,244)

(2,244)

25,265

230,214

65,719

65,719

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(17,877)

468

(17,409)

278,524

25,265

3,584

(1,664)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(2,974)

(2,974)

24,210

(4,369)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(49)

335

285

(4,083)

378,686

62,710

58,297

121,008

(49)

714

(75)

(13,606)

124

(12,893)

486,801

(4,083)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(12)

146

134

(3,949)

486,801

69,303

(57,184)

(12)

335

223

(20,852)

257

(20,049)

478,871

Equity attributable to owners of the parent

Issued capital

 Capital surplus

Retained earnings  

Treasury shares

 (Millions of Yen)

67,176

79,191

Equity attributable to owners of the parent

Other components of equity

Exchange differences 

on translating foreign 

operations 

Net changes in financial assets 

measured at fair value through 

other comprehensive income 

Remeasurements of 

net defined benefit 

liability (asset) 

Total

Total

Non-controlling

interests

Total equity

Opening balance

  Net income

  Other comprehensive income 

Total comprehensive income 

for the period

  Purchase of treasury shares

  Disposal of treasury shares

  Share-based payment 

  transactions

  Cash dividends

  Other

Total transactions with owners, etc.

23,451

(cid:693)

(26,643)

(26,643)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

46,356

(cid:693)

(10,851)

(10,851)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(211)

(211)

35,292

19,230

(cid:693)

(18,025)

89,038

(cid:693)

(55,520)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(211)

(211)

Closing balance 

(3,191)

1,204

33,306

(18,025)

(55,520)

10,198

1,920

12,119

60

NSK REPORT 2016

NSK REPORT 2016

61

Data Section

Consolidated Statements of Changes in Net Assets (JP GAAP)

Consolidated Statements of Changes in Equity (IFRS)

NSK Ltd. and Consolidated Subsidiaries

NSK Ltd. and Consolidated Subsidiaries

Shareholders' equity

 (Millions of Yen)

Common stock 

Additional paid-in capital 

Retained earnings 

Treasury stock 

Total shareholders(cid:671) equity

Year ended March 31, 2015

Balance at the beginning of current period

  Cumulative effects of changes in accounting policies

Restated Balance 

Changes of items during the period

  Cash dividends

  Purchase of treasury stock

  Disposal of treasury stock

  Net income attributable to shareholders of the parent

  Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of current period

67,176

(cid:693)

67,176

78,560

(cid:693)

78,560

(cid:693)

(cid:693)

(cid:693)

(cid:693)

378

378

210,739

(4,872)

205,867

(15,161)

61,962

(cid:693)

(cid:693)

(cid:693)

46,800

252,667

67,176

78,938

Accumulated other comprehensive income

Valuation difference on

available-for-sale securities

Translation 

adjustments 

Remeasurements of 

Total other 

defined benefit plans

comprehensive income

Share subscription

Non-controlling 

rights 

interests 

Total net assets

31,387

(14,067)

(10,225)

7,094

Restated Balance 

31,387

(14,067)

(10,225)

7,094

Balance at the beginning of current period

  Cumulative effects of changes in 

  accounting policies

Changes of items during the period

  Cash dividends

  Net income attributable to 

  shareholders of the parent

  Purchase of treasury stock

  Disposal of treasury stock

  Net changes of items other than 

  shareholders’ equity

Total changes of items during the period

Balance at the end of current period

13,050

13,050

44,438

21,659

21,659

7,592

19,542

19,542

9,316

54,253

54,253

61,347

Shareholders' equity

 (Millions of Yen)

Common stock 

Additional paid-in capital 

Retained earnings 

Treasury stock 

Total shareholders(cid:671) equity

Year ended March 31, 2016

Balance at the beginning of current period

  Cumulative effects of changes in accounting policies

Restated Balance 

Changes of items during the period

  Cash dividends

  Purchase of treasury stock

  Disposal of treasury stock

  Net income attributable to shareholders of the parent

  Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of current period

67,176

(cid:693)

67,176

78,938

(cid:693)

78,938

(cid:693)

(cid:693)

(cid:693)

(cid:693)

188

188

252,667

(cid:693)

252,667

(18,425)

67,169

(cid:693)

(cid:693)

(cid:693)

48,743

301,411

67,176

79,127

Accumulated other comprehensive income

Valuation difference on

available-for-sale securities

Translation 

adjustments 

Remeasurements of

Total other 

defined benefit plans 

comprehensive income

Share subscription

Non-controlling

rights 

interests 

Total net assets

44,438

7,592

9,316

61,347

25,560

481,859

Restated Balance 

44,438

7,592

9,316

61,347

25,560

481,859

Balance at the beginning of current period

  Cumulative effects of changes in 

  accounting policies

Changes of items during the period

  Cash dividends

  Net income attributable to 

  shareholders of the parent

  Purchase of treasury stock

  Disposal of treasury stock

  Net changes of items other than 

  shareholders’ equity

Total changes of items during the period

Balance at the end of current period

(10,789)

33,649

(26,226)

(18,633)

(19,519)

(10,202)

(56,535)

4,812

(10,789)

(26,226)

(19,519)

(56,535)

60

NSK REPORT 2016

(4,369)

(cid:693)

(4,369)

(cid:693)

(49)

335

(cid:693)

285

(4,083)

22,626

22,626

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

2,934

2,934

25,560

(4,083)

(cid:693)

(4,083)

(cid:693)

(cid:693)

(12)

146

(cid:693)

134

(3,949)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(1,054)

(1,054)

24,505

352,107

(4,872)

347,234

(15,161)

61,962

(49)

714

(cid:693)

47,464

394,699

382,155

(4,872)

377,283

(15,161)

61,962

(49)

714

57,112

104,576

481,859

394,699

(cid:693)

394,699

(18,425)

67,169

(12)

335

(cid:693)

49,066

443,765

(cid:693)

(18,425)

67,169

(12)

335

(57,366)

(8,299)

473,560

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

328

(cid:693)

328

(cid:693)

(cid:693)

(cid:693)

(75)

(75)

252

252

(cid:693)

252

(cid:693)

(cid:693)

(cid:693)

(cid:693)

223

223

476

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

(cid:693)

Year ended March 31, 2015

Opening balance

  Net income
  Other comprehensive income 

Total comprehensive income for the period

  Purchase of treasury shares
  Disposal of treasury shares
  Share-based payment transactions
  Cash dividends
  Other

Total transactions with owners, etc.

Closing balance 

 (Millions of Yen)

Equity attributable to owners of the parent

Issued capital

 Capital surplus  

Retained earnings 

Treasury shares

67,176

78,888

181,913

(4,369)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)
(cid:693)
(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
378
(75)
(cid:693)
(cid:693)

303

59,383
(cid:693)

59,383

(cid:693)
(cid:693)
(cid:693)
(11,362)
280

(11,082)

(cid:693)
(cid:693)

(cid:693)

(49)
335
(cid:693)
(cid:693)
(cid:693)

285

67,176

79,191

230,214

(4,083)

Equity attributable to owners of  the parent

Other components of equity

Exchange differences 
on translating foreign 
operations 

Net changes in financial assets 
measured at fair value through 
other comprehensive income 

Remeasurements of 
net defined benefit 
liability (asset) 

Total

Total

Non-controlling
interests

Total equity

Opening balance

  Net income
  Other comprehensive income 

Total comprehensive income 
for the period

  Purchase of treasury shares
  Disposal of treasury shares
  Share-based payment 
  transactions
  Cash dividends
  Other

Total transactions with owners, etc.

(cid:693)

(cid:693)
23,451

23,451

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

Closing balance 

23,451

32,742

(cid:693)
13,769

13,769

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(155)

(155)

46,356

(cid:693)

(cid:693)
19,230

19,230

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

32,742

(cid:693)
56,451

56,451

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(155)

(155)

19,230

89,038

356,351

59,383
56,451

115,834

(49)
714

(75)

(11,362)
124

(10,649)

461,536

22,335

3,326
1,846

5,173

(cid:693)
(cid:693)

(cid:693)

(2,244)
(cid:693)

(2,244)

25,265

378,686

62,710
58,297

121,008

(49)
714

(75)

(13,606)
124

(12,893)

486,801

Year ended March 31, 2016

Opening balance

  Net income
  Other comprehensive income 

Total comprehensive income for the period

  Purchase of treasury shares
  Disposal of treasury shares
  Share-based payment transactions
  Cash dividends
  Other

Total transactions with owners, etc.

Closing balance 

 (Millions of Yen)

Equity attributable to owners of the parent

Issued capital

 Capital surplus

Retained earnings  

Treasury shares

67,176

79,191

230,214

(4,083)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)
(cid:693)
(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
188
223
(cid:693)
(cid:693)

412

65,719
(cid:693)

65,719

(cid:693)
(cid:693)
(cid:693)
(17,877)
468

(17,409)

(cid:693)
(cid:693)

(cid:693)

(12)
146
(cid:693)
(cid:693)
(cid:693)

134

67,176

79,603

278,524

(3,949)

Equity attributable to owners of the parent

Other components of equity

Exchange differences 
on translating foreign 
operations 

Net changes in financial assets 
measured at fair value through 
other comprehensive income 

Remeasurements of 
net defined benefit 
liability (asset) 

Total

Total

Non-controlling
interests

Total equity

Opening balance

  Net income
  Other comprehensive income 

Total comprehensive income 
for the period

  Purchase of treasury shares
  Disposal of treasury shares
  Share-based payment 
  transactions
  Cash dividends
  Other

Total transactions with owners, etc.

23,451

(cid:693)
(26,643)

(26,643)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

Closing balance 

(3,191)

46,356

(cid:693)
(10,851)

(10,851)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(211)

(211)

35,292

19,230

(cid:693)
(18,025)

89,038

(cid:693)
(55,520)

461,536

65,719
(55,520)

25,265

3,584
(1,664)

486,801

69,303
(57,184)

(18,025)

(55,520)

10,198

1,920

12,119

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(cid:693)

(cid:693)

(cid:693)
(211)

(211)

1,204

33,306

(12)
335

223

(17,877)
257

(17,074)

454,661

(cid:693)
(cid:693)

(cid:693)

(2,974)
(cid:693)

(2,974)

24,210

(12)
335

223

(20,852)
257

(20,049)

478,871

NSK REPORT 2016

61

Data Section
Consolidated Statements of Cash Flows (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Cash Flows (IFRS)

NSK Ltd. and Consolidated Subsidiaries

Year ended March 31, 

 (Millions of Yen)

2015

2016

Year ended March 31, 

 (Millions of Yen)

2015

2016

Operating 
activities

Investing 
activities

Financing 
activities

  Income before income taxes and minority interests
  Depreciation and amortization
  Amortization of goodwill
  Increase (decrease) in allowance for doubtful accounts
  Net defined benefit liabilities and net defined benefit assets
  Interest and dividend income
  Interest expenses
  Equity in losses (earnings) of affiliates
  Antimonopoly Act related loss
  Reserves for environmental safety measures
  Loss (gain) on investments in securities
  Decrease (increase) in notes and accounts receivable
  Decrease (increase) in inventories
  Increase (decrease) in notes and accounts payable
  Others

  Subtotal

  Interest and dividends received
  Interest paid
  Antimonopoly Act related loss paid
  Income taxes paid

87,976
38,453
114
907
(2,272)
(2,748)
5,059
(2,659)
3,025

(cid:693)

(cid:693)
(16,119)
(4,470)
3,404
3,807

90,447
41,500
111
(209)
(8,718)
(2,378)
4,728
(4,729)
2,647
1,571
(701)
(475)
519
(6,658)
5,105

114,478

122,759

7,917
(5,120)
(18,878)
(30,687)

5,126
(4,781)

(cid:693)
(17,831)

Net cash provided by operating activities

67,709

105,273

  Net decrease (increase) in time deposits
  Purchase of short-term investment securities
  Proceeds from sales of short-term investment securities
  Purchase of property, plant and equipment
  Proceeds from sales of property, plant and equipment
  Purchase of investment securities
  Proceeds from sales of investment securities
  Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation
  Payments for loans receivable
  Collection of loans receivable
  Others

(96)
(200)
540
(43,891)
1,008
(46)
227

(cid:693)
(755)
151
(3,271)

(1,381)

(cid:693)

(cid:693)
(45,897)
402
(49)
3,994
1,042
(3,058)
5,287
(4,762)

Net cash used in investing activities

(46,335)

(44,422)

  Net increase (decrease) in short-term loans
  Increase in long-term loans
  Repayments of long-term loans
  Proceeds from issuance of corporate bonds
  Payments for redemption of corporate bonds
  Acquisition of treasury stock
  Dividends paid
  Dividends paid to non-controlling interests
  Others

(4,527)
9,647
(25,123)
40,000
(15,000)
(44)
(11,353)
(2,244)
340

(6,507)
9,735
(47,793)

(cid:693)

(cid:693)
(5)
(17,861)
(2,974)
(106)

Net cash used in financing activities

(8,304)

(65,514)

Effect of exchange rate changes on cash and cash equivalents

2,364

(4,195)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year

15,434
168,940

(8,858)
184,374

Cash and cash equivalents at end of the period

184,374

175,515

  Net cash provided by operating activities

65,529

108,622

  Net cash used in investing activities 

(46,715)

(45,212)

  Increase (decrease) in net defined benefit liability and net defined benefit asset

  Share of profits of investments accounted for using the equity method

Operating activities

  Income before income taxes

  Depreciation and amortisation

  Interest and dividend income

  Interest expenses

  Decrease (increase) in trade receivables

  Decrease (increase) in inventories

  Increase (decrease) in trade payables

  Other

  Subtotal 

  Interest and dividend received

  Interest paid

  Antimonopoly Act related loss paid

  Income tax paid

Investing activities

  Purchases of property, plant and equipment

  Proceeds from sale of property, plant and equipment

　Purchases of other financial assets

　Proceeds from sale of other financial assets

　Other

Financial activities

  Proceeds from long-term loans

  Repayments of long-term loans 

  Proceeds from issuance of corporate bonds 

  Payments for redemption of corporate bonds

  Purchase of treasury shares  

  Dividends paid 

  Dividends paid to non-controlling interests

  Other

  Net cash used in financial activities 

Effect of exchange rate changes on cash and cash equivalents 

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

112,300

126,110

84,626

39,875

(2,483)

(2,748)

5,059

(2,670)

(18,696)

(4,470)

3,184

10,620

7,917

(5,121)

(18,878)

(30,687)

(43,891)

1,008

(246)

768

(4,353)

9,647

(25,123)

40,000

(15,000)

(44)

(11,353)

(2,244)

(1,627)

2,364

15,434

168,940

184,374

87,208

43,048

(5,374)

(2,378)

4,728

(4,740)

2,407

519

(5,902)

6,594

5,126

(4,783)

(cid:693)

(17,831)

(45,869)

272

(49)

3,994

(3,560)

9,735

(47,793)

(cid:693)

(cid:693)

(5)

(17,861)

(2,974)

(9,174)

(4,195)

(8,858)

184,374

175,515

(5,744)

(68,073)

62

NSK REPORT 2016

NSK REPORT 2016

63

　
 
 
 
　
 
Consolidated Statements of Cash Flows (JP GAAP)

NSK Ltd. and Consolidated Subsidiaries

Consolidated Statements of Cash Flows (IFRS)

NSK Ltd. and Consolidated Subsidiaries

 (Millions of Yen)

2015

2016

Year ended March 31, 

 (Millions of Yen)

2015

2016

114,478

122,759

87,976

38,453

114

907

(2,272)

(2,748)

5,059

(2,659)

3,025

(cid:693)

(cid:693)

(16,119)

(4,470)

3,404

3,807

7,917

(5,120)

(18,878)

(30,687)

(96)

(200)

540

(43,891)

1,008

(46)

227

(cid:693)

(755)

151

(3,271)

(4,527)

9,647

(25,123)

40,000

(15,000)

(44)

(11,353)

(2,244)

340

90,447

41,500

111

(209)

(8,718)

(2,378)

4,728

(4,729)

2,647

1,571

(701)

(475)

519

(6,658)

5,105

5,126

(4,781)

(cid:693)

(17,831)

(1,381)

(cid:693)

(cid:693)

(45,897)

402

(49)

3,994

1,042

(3,058)

5,287

(4,762)

(6,507)

9,735

(47,793)

(cid:693)

(cid:693)

(5)

(17,861)

(2,974)

(106)

Operating activities
  Income before income taxes
  Depreciation and amortisation
  Increase (decrease) in net defined benefit liability and net defined benefit asset
  Interest and dividend income
  Interest expenses
  Share of profits of investments accounted for using the equity method
  Decrease (increase) in trade receivables
  Decrease (increase) in inventories
  Increase (decrease) in trade payables
  Other

  Subtotal 

  Interest and dividend received
  Interest paid
  Antimonopoly Act related loss paid
  Income tax paid

  Net cash provided by operating activities

Investing activities
  Purchases of property, plant and equipment
  Proceeds from sale of property, plant and equipment
　Purchases of other financial assets
　Proceeds from sale of other financial assets
　Other

  Net cash used in investing activities 

Financial activities
  Proceeds from long-term loans
  Repayments of long-term loans 
  Proceeds from issuance of corporate bonds 
  Payments for redemption of corporate bonds
  Purchase of treasury shares  
  Dividends paid 
  Dividends paid to non-controlling interests
  Other

  Net cash used in financial activities 

Effect of exchange rate changes on cash and cash equivalents 

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

84,626
39,875
(2,483)
(2,748)
5,059
(2,670)
(18,696)
(4,470)
3,184
10,620

87,208
43,048
(5,374)
(2,378)
4,728
(4,740)
2,407
519
(5,902)
6,594

112,300

126,110

7,917
(5,121)
(18,878)
(30,687)

5,126
(4,783)
(cid:693)
(17,831)

65,529

108,622

(43,891)
1,008
(246)
768
(4,353)

(45,869)
272
(49)
3,994
(3,560)

(46,715)

(45,212)

9,647
(25,123)
40,000
(15,000)
(44)
(11,353)
(2,244)
(1,627)

9,735
(47,793)
(cid:693)
(cid:693)
(5)
(17,861)
(2,974)
(9,174)

(5,744)

(68,073)

2,364

15,434

168,940

184,374

(4,195)

(8,858)

184,374

175,515

Data Section

Year ended March 31, 

Operating 

activities

  Income before income taxes and minority interests

  Depreciation and amortization

  Amortization of goodwill

  Increase (decrease) in allowance for doubtful accounts

  Net defined benefit liabilities and net defined benefit assets

  Interest and dividend income

  Interest expenses

  Equity in losses (earnings) of affiliates

  Antimonopoly Act related loss

  Reserves for environmental safety measures

  Loss (gain) on investments in securities

  Decrease (increase) in notes and accounts receivable

  Decrease (increase) in inventories

  Increase (decrease) in notes and accounts payable

  Others

  Subtotal

  Interest and dividends received

  Interest paid

  Antimonopoly Act related loss paid

  Income taxes paid

Net cash provided by operating activities

67,709

105,273

Investing 

activities

  Net decrease (increase) in time deposits

  Purchase of short-term investment securities

  Proceeds from sales of short-term investment securities

  Purchase of property, plant and equipment

  Proceeds from sales of property, plant and equipment

  Purchase of investment securities

  Proceeds from sales of investment securities

  Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation

  Payments for loans receivable

  Collection of loans receivable

  Others

Net cash used in investing activities

(46,335)

(44,422)

Financing 

activities

  Net increase (decrease) in short-term loans

  Increase in long-term loans

  Repayments of long-term loans

  Proceeds from issuance of corporate bonds

  Payments for redemption of corporate bonds

  Acquisition of treasury stock

  Dividends paid

  Dividends paid to non-controlling interests

  Others

Net cash used in financing activities

(8,304)

(65,514)

Effect of exchange rate changes on cash and cash equivalents

2,364

(4,195)

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the year

15,434

168,940

(8,858)

184,374

Cash and cash equivalents at end of the period

184,374

175,515

62

NSK REPORT 2016

NSK REPORT 2016

63

　
 
 
 
　
 
Data Section
Analysis of Business Results for the Year Ended March 31, 2016

The NSK Group has adopted International Financial Reporting Standards (IFRS) as opposed to its previous use of 
generally accepted accounting principles in Japan (JP-GAAP) effective from the fiscal year under review (April 1, 2015 
to March 31, 2016). In providing a comparative analysis, consolidated financial statements for the previous fiscal year 
have been restated in accordance with IFRS.

1

Overview of the Year Ended March 31, 2016

3

Analysis of Financial Position

In the lead-up to the 100th anniversary of the Company's 
foundation in 2016, the NSK Group has worked to 
implement its Mid-Term Management Plan, spanning the 
three-year period beginning April 2013, with the objective 
of “establishing corporate fundamentals appropriate for a 
company with net sales of ¥1 trillion.” In order to enhance 
its corporate foundation, the NSK Group has adopted a 
business strategy of growth with a focus on profitability, 
and is implementing measures to develop the 
management capability required to handle ¥1 trillion in 
sales volume.

Looking at global economic conditions during the year 

ended March 31, 2016, uncertainty in the overall 
Japanese economy rose, partially due to the yen's 
appreciation from the beginning of the year, despite the 
positive impact of lower crude oil prices and various 

policies implemented by the Japanese government. The 
U.S. economy continued its steady growth, primarily due 
to strong consumer spending. The European economy 
continued on a path of moderate recovery, primarily in the 
Eurozone. The Chinese economy continued to slow. 
Despite signs of an upturn in some areas, conditions in 
other Asian countries remained stagnant.

Against the backdrop of this economic environment, 
consolidated net sales for the year ended March 31, 2016 
totaled ¥975,319 million, a year-on-year increase of 0.0%. 
From a profit perspective, operating income came to 
¥89,534 million, a year-on-year increase of 3.0%. Income 
before income taxes was ¥87,208 million, a year-on-year 
increase of 3.1% and net income attributable to owners of 
the parent was ¥65,719 million, a year-on-year increase 
of 10.7%.

Total assets as of the end of the fiscal year under review 

of the parent of ¥65,719 million. The major decrease was 

stood at ¥1,032,374 million, a decrease of ¥93,135 

in other components of equity due to such factors as 

million compared with total assets as of March 31, 2015. 

appreciation in the value of the yen of ¥55,731 million.

The main reasons for this decline were decreases of 

Total current assets decreased ¥42,357 million 

¥8,858 million in cash and cash equivalents, ¥17,918 

compared with the previous fiscal year-end to ¥511,253 

million in trade receivables and other receivables, 

million. Total current liabilities declined ¥34,232 million 

¥11,606 million in inventories, ¥8,169 million in property, 

to ¥293,247 million. As a result, the current ratio 

plant and equipment, ¥20,768 million in other financial 

increased from 1.69 times as of the previous fiscal 

assets (non-current assets), and ¥27,463 million in net 

year-end to 1.74 times. Gross interest-bearing debt 

defined benefit assets. Total liabilities were ¥553,503 

decreased ¥50,807 million compared with the end of the 

million, a decrease of ¥85,204 million compared with 

previous fiscal year to ¥278,152 million. Net 

total liabilities as of March 31, 2015. This was mainly due 

interest-bearing debt (interest-bearing debt net of cash 

to decreases of ¥7,188 million in trade payables and 

and cash equivalents) was down ¥41,948 million 

other payables, ¥20,120 million in other financial 

compared with the previous fiscal year-end to ¥102,636 

liabilities (current liabilities), ¥30,521 million in financial 

million. The net D/E ratio decreased from 0.31 in the 

liabilities (non-current liabilities), and ¥15,753 million in 

previous fiscal year to 0.23. Equity per share attributable 

deferred tax liabilities. Total equity stood at ¥478,871 

to owners of the parent decreased from ¥852.83 to 

million, down ¥7,930 million compared with total equity 

¥839.56. The equity ratio attributable to owners of the 

as of the end of the previous fiscal year. The principal 

parent increased from 41.0% as of the fiscal year-end to 

increase came from net income attributable to owners 

44.0%.

2

Business Segment Information

Details regarding the market environment and results by business segment are presented as follows.

Industrial Machinery Business

Automotive Business

4

Cash Flows

Demand in the Industrial Machinery Business 
decreased due to the economic slowdown, primarily in 
emerging markets. Looking at results by region, sales in 
Japan decreased, primarily in the machine tool sector. 
In the Americas, sales in the aftermarket sector 
decreased. In Europe, sales declined due to lower sales 
in the aftermarket sector, despite increased sales in the 
home appliance sector. Sales in China decreased, 
primarily in the electrical sector, despite higher sales in 
the wind turbine sector. In other Asian countries, sales 
decreased due to overall weak demand.

As a result, net sales in the Industrial Machinery 

Business totaled ¥259,784 million, a year-on-year 
decrease of 6.0%, and operating income came to 
¥23,090 million, a year-on-year decrease of 25.8%.

Looking at automobile demand, the global market 
continued its gradual expansion during the year under 
review. The NSK Group’s sales in Japan declined due to 
sluggish sales of mini vehicles. In the Americas, sales of 
both electric power systems (EPS) and automotive 
bearings rose due to robust demand in the North 
American market. In Europe, continued gradual recovery 
in the automotive market led to higher sales. In China, 
sales increased due to the impact of special tax 
incentives for compact cars, despite slower growth in the 
automotive market. Sales in other Asian countries also 
increased, primarily due to EPS demand, although 
market conditions varied between countries.

As a result, net sales in the Automotive Business 

totaled ¥689,122 million, a year-on-year increase of 4.9%. 
Operating income came to ¥67,909 million, a 
year-on-year increase of 12.3%.

Total cash and cash equivalents at the end of the period stood at ¥175,515 million, a year-on-year decrease of 

¥8,858 million. Cash flows for the fiscal year under review are presented as follows.

Cash Flows from Operating Activities

Cash Flows from Financial Activities

Net cash provided by operating activities totaled 

¥108,622 million, an increase of ¥43,092 million, 

Net cash used in financial activities totaled ¥68,073 

million, an increase of ¥62,329 million compared with 

compared with the previous fiscal year. Major cash 

the previous fiscal year. The principal cash inflow was 

inflows included ¥87,208 million in income before 

¥9,735 million representing proceeds from long-term 

income taxes and ¥43,048 million in depreciation and 

loans. The major cash outflows were ¥47,793 million for 

amortisation. The principal cash outflow was ¥17,831 

repayments of long-term loans, ¥17,861 million for 

million for income tax paid.

dividends paid, and ¥2,974 million for dividends paid to 

non-controlling interests.

Cash Flows from Investing Activities

Net cash used in investing activities totaled ¥45,212 

million, a decrease of ¥1,502 million compared with the 

previous fiscal year.

64

NSK REPORT 2016

NSK REPORT 2016

65

Data Section

Analysis of Business Results for the Year Ended March 31, 2016

The NSK Group has adopted International Financial Reporting Standards (IFRS) as opposed to its previous use of 

generally accepted accounting principles in Japan (JP-GAAP) effective from the fiscal year under review (April 1, 2015 

to March 31, 2016). In providing a comparative analysis, consolidated financial statements for the previous fiscal year 

have been restated in accordance with IFRS.

1

Overview of the Year Ended March 31, 2016

In the lead-up to the 100th anniversary of the Company's 

policies implemented by the Japanese government. The 

foundation in 2016, the NSK Group has worked to 

U.S. economy continued its steady growth, primarily due 

implement its Mid-Term Management Plan, spanning the 

to strong consumer spending. The European economy 

three-year period beginning April 2013, with the objective 

continued on a path of moderate recovery, primarily in the 

of “establishing corporate fundamentals appropriate for a 

Eurozone. The Chinese economy continued to slow. 

company with net sales of ¥1 trillion.” In order to enhance 

Despite signs of an upturn in some areas, conditions in 

its corporate foundation, the NSK Group has adopted a 

other Asian countries remained stagnant.

business strategy of growth with a focus on profitability, 

Against the backdrop of this economic environment, 

and is implementing measures to develop the 

consolidated net sales for the year ended March 31, 2016 

management capability required to handle ¥1 trillion in 

totaled ¥975,319 million, a year-on-year increase of 0.0%. 

sales volume.

From a profit perspective, operating income came to 

Looking at global economic conditions during the year 

¥89,534 million, a year-on-year increase of 3.0%. Income 

ended March 31, 2016, uncertainty in the overall 

before income taxes was ¥87,208 million, a year-on-year 

Japanese economy rose, partially due to the yen's 

increase of 3.1% and net income attributable to owners of 

appreciation from the beginning of the year, despite the 

the parent was ¥65,719 million, a year-on-year increase 

positive impact of lower crude oil prices and various 

of 10.7%.

3

Analysis of Financial Position

Total assets as of the end of the fiscal year under review 
stood at ¥1,032,374 million, a decrease of ¥93,135 
million compared with total assets as of March 31, 2015. 
The main reasons for this decline were decreases of 
¥8,858 million in cash and cash equivalents, ¥17,918 
million in trade receivables and other receivables, 
¥11,606 million in inventories, ¥8,169 million in property, 
plant and equipment, ¥20,768 million in other financial 
assets (non-current assets), and ¥27,463 million in net 
defined benefit assets. Total liabilities were ¥553,503 
million, a decrease of ¥85,204 million compared with 
total liabilities as of March 31, 2015. This was mainly due 
to decreases of ¥7,188 million in trade payables and 
other payables, ¥20,120 million in other financial 
liabilities (current liabilities), ¥30,521 million in financial 
liabilities (non-current liabilities), and ¥15,753 million in 
deferred tax liabilities. Total equity stood at ¥478,871 
million, down ¥7,930 million compared with total equity 
as of the end of the previous fiscal year. The principal 
increase came from net income attributable to owners 

of the parent of ¥65,719 million. The major decrease was 
in other components of equity due to such factors as 
appreciation in the value of the yen of ¥55,731 million.
Total current assets decreased ¥42,357 million 

compared with the previous fiscal year-end to ¥511,253 
million. Total current liabilities declined ¥34,232 million 
to ¥293,247 million. As a result, the current ratio 
increased from 1.69 times as of the previous fiscal 
year-end to 1.74 times. Gross interest-bearing debt 
decreased ¥50,807 million compared with the end of the 
previous fiscal year to ¥278,152 million. Net 
interest-bearing debt (interest-bearing debt net of cash 
and cash equivalents) was down ¥41,948 million 
compared with the previous fiscal year-end to ¥102,636 
million. The net D/E ratio decreased from 0.31 in the 
previous fiscal year to 0.23. Equity per share attributable 
to owners of the parent decreased from ¥852.83 to 
¥839.56. The equity ratio attributable to owners of the 
parent increased from 41.0% as of the fiscal year-end to 
44.0%.

2

Business Segment Information

Details regarding the market environment and results by business segment are presented as follows.

Industrial Machinery Business

Automotive Business

4

Cash Flows

Demand in the Industrial Machinery Business 

Looking at automobile demand, the global market 

decreased due to the economic slowdown, primarily in 

continued its gradual expansion during the year under 

emerging markets. Looking at results by region, sales in 

review. The NSK Group’s sales in Japan declined due to 

Japan decreased, primarily in the machine tool sector. 

sluggish sales of mini vehicles. In the Americas, sales of 

In the Americas, sales in the aftermarket sector 

both electric power systems (EPS) and automotive 

decreased. In Europe, sales declined due to lower sales 

bearings rose due to robust demand in the North 

in the aftermarket sector, despite increased sales in the 

American market. In Europe, continued gradual recovery 

home appliance sector. Sales in China decreased, 

in the automotive market led to higher sales. In China, 

primarily in the electrical sector, despite higher sales in 

sales increased due to the impact of special tax 

the wind turbine sector. In other Asian countries, sales 

incentives for compact cars, despite slower growth in the 

decreased due to overall weak demand.

automotive market. Sales in other Asian countries also 

As a result, net sales in the Industrial Machinery 

increased, primarily due to EPS demand, although 

Business totaled ¥259,784 million, a year-on-year 

market conditions varied between countries.

decrease of 6.0%, and operating income came to 

As a result, net sales in the Automotive Business 

¥23,090 million, a year-on-year decrease of 25.8%.

totaled ¥689,122 million, a year-on-year increase of 4.9%. 

Operating income came to ¥67,909 million, a 

year-on-year increase of 12.3%.

Total cash and cash equivalents at the end of the period stood at ¥175,515 million, a year-on-year decrease of 
¥8,858 million. Cash flows for the fiscal year under review are presented as follows.

Cash Flows from Operating Activities

Cash Flows from Financial Activities

Net cash provided by operating activities totaled 
¥108,622 million, an increase of ¥43,092 million, 
compared with the previous fiscal year. Major cash 
inflows included ¥87,208 million in income before 
income taxes and ¥43,048 million in depreciation and 
amortisation. The principal cash outflow was ¥17,831 
million for income tax paid.

Cash Flows from Investing Activities

Net cash used in investing activities totaled ¥45,212 
million, a decrease of ¥1,502 million compared with the 
previous fiscal year.

Net cash used in financial activities totaled ¥68,073 
million, an increase of ¥62,329 million compared with 
the previous fiscal year. The principal cash inflow was 
¥9,735 million representing proceeds from long-term 
loans. The major cash outflows were ¥47,793 million for 
repayments of long-term loans, ¥17,861 million for 
dividends paid, and ¥2,974 million for dividends paid to 
non-controlling interests.

64

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Data Section
Basic Knowledge of Bearings

Here, we provide basic information on bearings.

1

Structure and Function

Introduction

A surprisingly large number of bearings can be found all 
around us. Take automobiles, for example: There are 
100 to 150 bearings in a typical car. Without bearings, 
the wheels would rattle, the transmission gear teeth 
would not be able to mesh, and the car wouldn't run 
smoothly. Bearings are used not only in cars but in all 
kinds of machinery such as trains, airplanes, washing 
machines, refrigerators, air conditioners, vacuum 
cleaners, photocopy machines, computers and 

Structure

satellites. Bearings enhance the functionality of 
machinery and help to save energy. Bearings do their 
work silently, in tough environments, hidden in 
machinery where we cannot see them. Nevertheless, 
bearings are crucial for the stable operation of 
machinery and for ensuring top performance.

The term bearing incorporates the meaning of "to 

bear," in the sense of "to support," and "to carry a 
burden." This refers to the fact that bearings support 
and carry the burden of revolving axles.

The ball bearings and roller bearings pictured below represent two typical types of the most basic bearings, known as 
The ball bearings and roller bearings pictured below represent two typical types of the most basic bearings, known as 
The ball bearings and roller bearings pictured below represent two typical types of the most basic bearings, known as 
The ball bearings and roller bearings pictured below represent two typical types of the most basic bearings, known as 
rolling bearings. Rolling bearings are made up of four elements: an outer ring, an inner ring as well as rolling and 
rolling bearings. Rolling bearings are made up of four elements: an outer ring, an inner ring as well as rolling and 
rolling bearings. Rolling bearings are made up of four elements: an outer ring, an inner ring as well as rolling and 
rolling bearings. Rolling bearings are made up of four elements: an outer ring, an inner ring as well as rolling and 
cage elements and have an extremely simple basic structure.
cage elements and have an extremely simple basic structure.
cage elements and have an extremely simple basic structure.

Outer ring

Cage
Inner ring

Rolling 
elements 
(balls)

Outer ring

Cage
Inner ring

Rolling 
elements 
(rollers)

Ball Bearing
Ball Bearing

Roller Bearing

Outer ring

Cage

Rolling elements (balls)

Inner ring

Function

The basic function of bearings is principally to reduce mechanical friction. Reducing friction means:

t
i
f
e
n
e
B

1

Machinery will 
run more efficiently

t
i
f
e
n
e
B

2

There will be less 
frictional wear, extending 
the operating life of the 
machinery

t
i
f
e
n
e
B

3

Preventing abrasion 
burn and avoiding 
mechanical 
breakdown

Bearings also contribute to lower energy consumption by reducing friction and allowing the efficient transmission of 
power. This is just one way in which bearings are environmentally friendly.

2

Types of Bearings

A brief overview of typical bearings is presented as follows.

1

Deep groove ball bearing

2

Angular contact thrust ball bearing

3

Thrust ball bearing

4

Cylindrical roller bearing

This is the most widely used 

bearing in the world.

In this type, the rolling element 

meets the inner and outer ring 

raceways at a contact angle. 

This bearing can carry radial 

Thrust ball bearings are 

capable of handling loads in 

the axial direction (axial loads). 

They can support heavy loads.

and axial loads.

The rolling elements are the 

cylindrical roller type.

5

Tapered roller bearing

6

Self-aligning roller bearing

7

Thrust needle bearing

8

Cage and roller

The rolling elements are of the 

This bearing has an automatic 

This bearing is used in parts 

This is one of several kinds of 

tapered roller type. Because the 

aligning function to compensate 

such as compressors that 

rollers are tapered, this bearing 

for minute misalignments 

deliver the air in automobile 

is able to carry combined axial 

between the inner and outer 

air-conditioning units.

bearings used in vehicles' 

manual transmissions. It is 

required to be highly durable.

and radial loads.

rings during operation.

3

Future of Bearings

Here, we introduce some themes on the further evolution of bearings.

Theme 1: Energy savings

While bearings require a level of precision measured in 

nanometers, efforts continue to focus on securing 

further improvements in the reduction of friction. The 

smaller a machine becomes, the smaller its 

components. Moreover, no matter how small machines 

bearings are made from steel that does not contain any 

harmful chemical substances. This steel can be 

recycled into new steel materials. Bearings offer 

excellent potential as products for recycling and reuse.

Theme 3: Comfort

become, total energy consumption will be large when 

Machines must be agreeable for both people and the 

viewed on a global scale. In order to produce even 

environment. In the past, machines have supported 

greater energy savings, we should continue to seek out 

improved production; in the future, there will be 

even better ways of reducing friction using bearings.

demands that machines help society and individuals 

Theme 2: Cleaner

enjoy more fulfilling lives,. Also, the bearings that are 

used in those machines must be asked to fulfill 

functions and roles that differ from the old ones.

Improving bearing technology can have beneficial effects 

 NSK will continue to work on research and 

on the environment: a reduction in vehicle exhaust gas 

development "for people and the planet."

emissions, for example. in addition, the vast majority of 

For further information, please access our website:

http://www.nsk.com/company/introduction.html

66

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NSK REPORT 2016

67

Data Section

Basic Knowledge of Bearings

Here, we provide basic information on bearings.

1

Structure and Function

Introduction

A surprisingly large number of bearings can be found all 

around us. Take automobiles, for example: There are 

100 to 150 bearings in a typical car. Without bearings, 

the wheels would rattle, the transmission gear teeth 

would not be able to mesh, and the car wouldn't run 

smoothly. Bearings are used not only in cars but in all 

kinds of machinery such as trains, airplanes, washing 

machines, refrigerators, air conditioners, vacuum 

cleaners, photocopy machines, computers and 

Structure

satellites. Bearings enhance the functionality of 

machinery and help to save energy. Bearings do their 

work silently, in tough environments, hidden in 

machinery where we cannot see them. Nevertheless, 

bearings are crucial for the stable operation of 

machinery and for ensuring top performance.

The term bearing incorporates the meaning of "to 

bear," in the sense of "to support," and "to carry a 

burden." This refers to the fact that bearings support 

and carry the burden of revolving axles.

The ball bearings and roller bearings pictured below represent two typical types of the most basic bearings, known as 

rolling bearings. Rolling bearings are made up of four elements: an outer ring, an inner ring as well as rolling and 

cage elements and have an extremely simple basic structure.

Outer ring

Cage

Inner ring

Rolling 

elements 

(balls)

Outer ring

Cage

Inner ring

Rolling 

elements 

(rollers)

Ball Bearing

Roller Bearing

Outer ring

Cage

Rolling elements (balls)

Inner ring

Function

The basic function of bearings is principally to reduce mechanical friction. Reducing friction means:

t

i

f

e

n

e

B

1

Machinery will 

run more efficiently

t

i

f

e

n

e

B

2

There will be less 

frictional wear, extending 

the operating life of the 

machinery

t

i

f

e

n

e

B

3

Preventing abrasion 

burn and avoiding 

mechanical 

breakdown

Bearings also contribute to lower energy consumption by reducing friction and allowing the efficient transmission of 

power. This is just one way in which bearings are environmentally friendly.

2

Types of Bearings

A brief overview of typical bearings is presented as follows.

1

Deep groove ball bearing

2

Angular contact thrust ball bearing

3

Thrust ball bearing

4

Cylindrical roller bearing

This is the most widely used 
bearing in the world.

In this type, the rolling element 
meets the inner and outer ring 
raceways at a contact angle. 
This bearing can carry radial 
and axial loads.

Thrust ball bearings are 
capable of handling loads in 
the axial direction (axial loads). 
They can support heavy loads.

The rolling elements are the 
cylindrical roller type.

5

Tapered roller bearing

6

Self-aligning roller bearing

7

Thrust needle bearing

8

Cage and roller

The rolling elements are of the 
tapered roller type. Because the 
rollers are tapered, this bearing 
is able to carry combined axial 
and radial loads.

This bearing has an automatic 
aligning function to compensate 
for minute misalignments 
between the inner and outer 
rings during operation.

This bearing is used in parts 
such as compressors that 
deliver the air in automobile 
air-conditioning units.

This is one of several kinds of 
bearings used in vehicles' 
manual transmissions. It is 
required to be highly durable.

3

Future of Bearings

Here, we introduce some themes on the further evolution of bearings.

Theme 1: Energy savings

While bearings require a level of precision measured in 
nanometers, efforts continue to focus on securing 
further improvements in the reduction of friction. The 
smaller a machine becomes, the smaller its 
components. Moreover, no matter how small machines 
become, total energy consumption will be large when 
viewed on a global scale. In order to produce even 
greater energy savings, we should continue to seek out 
even better ways of reducing friction using bearings.

Theme 2: Cleaner

bearings are made from steel that does not contain any 
harmful chemical substances. This steel can be 
recycled into new steel materials. Bearings offer 
excellent potential as products for recycling and reuse.

Theme 3: Comfort

Machines must be agreeable for both people and the 
environment. In the past, machines have supported 
improved production; in the future, there will be 
demands that machines help society and individuals 
enjoy more fulfilling lives,. Also, the bearings that are 
used in those machines must be asked to fulfill 
functions and roles that differ from the old ones.

Improving bearing technology can have beneficial effects 
on the environment: a reduction in vehicle exhaust gas 
emissions, for example. in addition, the vast majority of 

 NSK will continue to work on research and 

development "for people and the planet."

For further information, please access our website:
http://www.nsk.com/company/introduction.html

66

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67

Data Section
Glossary

Term

Actuator

Aftermarket

Alternator

AT

Ball Screw

BCP

BtoB

CMS

Column-Type EPS

CSR

CSR Procurement

Design Quality

ECU

Meaning

Actuators refer to mechanical components that, for example, play a role in the actuation of brakes and 
gear shifting of automobiles.

Aftermarket refers to maintenance and repair demand. In NSK, aftermarket mainly means the 
demand and business for repair and replacement.

An alternator is an electric generator to use and change engine rotation to electricity. The term alternator 
derives from alternating current.

AT stands for Automatic Transmission. Automatic transmission is one type of transmission found in 
automobiles and motorcycles. ATs are equipped with a function that automatically changes the gear 
ratio in response to vehicle speed and the rotational velocity of the engine.

A ball screw is a machinery part consisting of a screw shaft, nut and ball, etc. Ball screws convert 
rotation into linear motion and enable accurate positioning. In ball screws, a rolling element (ball) like 
the ones used in bearings is incorporated in the section where the groove of the screw and screw head 
contact each other and, similar to a bearing, the ball screw moves smoothly and features minute levels 
of friction resistance.

BCP stands for Business Continuity Plan. In a BCP, companies determine activities in normal times 
and the methods and means for continuing business in times of emergency to minimize damage to 
business assets and to allow continuation or early recovery of the core business in the event of 
emergency situations such as natural disasters, large fires and terrorist attacks.

BtoB stands for Business to Business, which means transactions between companies.

CMS stands for Condition Monitoring System. One example of a CMS is a system for understanding/ 
analyzing the operational status of bearings (e.g., vibration, noise, rotational torque) based on various 
data by bearings with sensors installed.

Column-type EPS is a type of Electric Power Steering which has a power assist element of a motor located 
on the steering column. The steering column is a component that conveys the turning of the steering wheel 
of vehicles to the steering gear, and the steering column adjusts the steering wheel position and mitigates 
the impact during a collision. NSK has been strong at steering column production and boasts a top-class 
world market share of column-type EPS.

CSR stands for Corporate Social Responsibility. The NSK Group takes CSR to mean “ensuring that all 
of its corporate activities meet the expectations of its diverse stakeholders and, in so doing, ensure the 
sustainable development of both society and NSK.”

CSR procurement refers to the procurement of raw materials and parts in consideration of compliance 
with laws and regulations, environmental protection, human rights, safety and health.

Design quality is targeted quality and is quality set in the design phase and realized in order to satisfy the 
functions and performance of products.

ECU stands for Electronic Control Unit. By using electronic circuits, ECU is a device that controls the 
operation of a motor, etc. Among NSK’s products, ECU used for electric power steering is particularly 
important.

Electric Power Steering

Please refer to “EPS.”

Environmentally Friendly 
Products

EPS

ESG

EV

Environmentally friendly products refer to the products that perform better than existing products in 
order to help reduce the impact human societies have on the natural environment. The NSK Group 
works on product manufacturing that contributes to a reduction of the impact on the environment by 
upholding the following standards:
1. Each product should contribute toward the energy and resource conservation of the machine in which   

it is installed.

2. The amount of energy and resources required during product manufacturing should be minimal.
3. Environmentally harmful substances should not be used in products or manufacturing processes.
4. Products should contribute to the health and safety of end users by having low emissions of vibration, 
  noise and dust.
(Please also refer to page 45.)

EPS stands for Electric Power Steering. An EPS is a mechanism that supports the turning of automobile 
steering wheels (in other words, enabling the turning of steering wheels even with light force) by using an 
electric motor instead of hydraulic power. EPS can be divided into three types (column type, pinion type and 
rack type) depending on the location of the motor to which the power assist is provided.

ESG stands for Environment, Social and Governance, and generally ESG refers to the company’s efforts 
for the environment and society, as well as the structure and operating status of its corporate 
governance.

EV stands for Electric Vehicle. EVs are automobiles that drive the wheels by using electric motors as 
the power source.

Four Core Technologies

Four core technologies refer to NSK’s core technologies. For details, please refer to page 36.

F2 (Fujisawa) Project

GAM

Green Procurement

With the aim of more efficient production, the F2 (Fujisawa) Project targets the improvement of profitability by 
reforming product types produced at two plants in the Fujisawa area and by increasing the number of 
buildings, updating manufacturing equipment and introducing new engineering methods in the No. 2 plant. 
F refers to the No. 1 Fujisawa Plant and F2 refers to the No. 2 Fujisawa Plant.

GAM stands for Global Account Manager in NSK. GAMs coordinate the global platform projects of 
automobiles across regions.

Green procurement refers to the procurement of raw materials in consideration of the environment. The 
NSK Group has stipulated the NSK Group Green Procurement Standards 
(http://www.nsk.com/sustainability/csrReport/supplemental/greenps.html).

Term

Meaning

Hub Unit Bearings

IoT

KAM

KPI

Linear Guide

A hub for automobiles is the component where the wheels are screwed on. Hub unit bearings are used 

for the rotation part of the hub and are unit-type bearings integrated with coupling parts. Depending on 

the level of integration, there are various types of hub unit bearings.

IoT stands for the Internet of Things. IoT is a concept to generate new value by collecting data via the 

Internet from sensors embedded on various things such as automobiles, home appliances, 

industrial machines and public infrastructure, and analyzing such data. IoT leads to such 

technological innovation as efficiency increases in machine control in plants, advertising according 

to individual tastes, detailed adjustment of power supply and monitoring senior citizens through 

home appliances.

KAM stands for Key Account Manager in NSK. KAMs coordinate with Global Account Managers for key 

customers in each region and build close relationships with customers as the contact person in 

individual regions. By taking advantage of such close relationships with customers, KAMs have a role 

in regional sales activity and response in technological matters.

KPI stands for Key Performance Indicator. A KPI is an indicator to measure the achievement level of 

targets.

A linear guide is a machinery part that is used for the section to support the linear motion of machines. 

Linear guides are one of the linear motion products and are used for machine tools, transfer machines 

and platform screen doors at stations, etc.

Lower-Assist EPS

Lower-assist EPS refers to rack-type EPS and pinion-type EPS (single pinion, dual pinion) that provide 

power assist near the tires among the types of electric power steering. Column-type EPS provides assist 

Mother Plant

We position plants with outstanding capacity such as excellent technical ability and significant production 

capacity as Mother plants. In NSK, Mother plants have the role of transferring technology, etc., to the plants 

near the steering wheel.

located overseas.

NIT

NIT stands for NSK Institute of Technology, which is an internal educational institute for our engineers 

to master more advanced technology.

NSK Manufacturing Education 

and Training Center

The NSK Manufacturing Education and Training Center was established in 2005 for the purpose of 

passing on technical skills in the production section to the next generation and fostering production 

site leaders.

OHSAS 18001

OHSAS stands for Occupational Health and Safety Assessment Series. This standard was issued by the 

British Standards Institution (BSI) as OHSAS18001 in 1999 with support from 13 institutions such as 

standardization-related groups and certification institutions around the world. OHSAS18001 is a 

mechanism for managing occupational safety and health management risks that relate to workers 

such as health hazards and occupational accidents and for improving the performance.

Operational Excellence

In this report, operational excellence refers to “efforts to enhance front-line capability to increase the 

competitiveness of the NSK Group’s business.”

Per Production Unit

Per production unit refers to the standard amount of raw materials, workforce, power, etc., that are 

necessary to produce a certain amount of industrial products. “CO2 emission per production unit” means CO2 

(carbon dioxide) emissions discharged in the process of production of a certain amount of a product.

Planetary Gear

Planetary gear refers to a epicylic gearing mechanism consisting of three elements̶sun gear, planetary 

gear and ring gear.

automobiles.

Powertrain describes the main components that generate power and deliver to the drive wheel in 

Product quality is also called resulting quality, and it is the quality of products actually manufactured. 

Product quality is realized by control of the manufacturing phase.

The PSI of PSI Management stands for Production, Sales and Inventory. PSI Management refers to the 

appropriate management and operation of production, sales and inventory.

QCDDSM stands for Quality, Cost, Delivery, Development, Service and Management. The QCDDSM  

elements are generally focused on by the manufacturing industry including NSK.

Rack-Type EPS

Rack-type EPS is electric power steering that assists tire direction movement with a rack shaft in the 

steering gear section.

(Please also refer to “Lower-Assist EPS.”)

Sales channels mean sales routes. Distributors play a role in the product supply to end users as sales 

channels.

Smart Factory in this report refers to a new concept factory set up in the Fifth Mid-Term Management 

Plan. The status of equipment and processing in each process during manufacturing is understood with 

data in real time, which is utilized for quality control, equipment maintenance and product traceability. The 

understanding and management of big data are realized by advancements in Information Technology (IT). 

The evolution of the informatization of things such as IoT is the technology behind the Smart Factory.

UK Modern Slavery Act 2015

The Modern Slavery Act 2015 c.30 was established in 2015 in the United Kingdom to respond to crimes 

such as human trade, forced labor and sexual exploitation.

Vehicle Dynamics

Vehicle dynamics refers to the control of the dynamic performance of vehicle movement, in other words, 

the safe and smooth control of the change in posture and movement of vehicles for basic vehicle 

functions, namely, “running,” “stopping” and “turning.”

Powertrain

Product Quality

PSI Management

QCDDSM

Sales Channel

Smart Factory

68

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69

 
Data Section

Glossary

Term

Actuator

Aftermarket

Alternator

AT

Ball Screw

Column-Type EPS

BCP

BtoB

CMS

CSR

ECU

EPS

ESG

EV

Actuators refer to mechanical components that, for example, play a role in the actuation of brakes and 

gear shifting of automobiles.

Aftermarket refers to maintenance and repair demand. In NSK, aftermarket mainly means the 

demand and business for repair and replacement.

An alternator is an electric generator to use and change engine rotation to electricity. The term alternator 

derives from alternating current.

AT stands for Automatic Transmission. Automatic transmission is one type of transmission found in 

automobiles and motorcycles. ATs are equipped with a function that automatically changes the gear 

ratio in response to vehicle speed and the rotational velocity of the engine.

A ball screw is a machinery part consisting of a screw shaft, nut and ball, etc. Ball screws convert 

rotation into linear motion and enable accurate positioning. In ball screws, a rolling element (ball) like 

the ones used in bearings is incorporated in the section where the groove of the screw and screw head 

contact each other and, similar to a bearing, the ball screw moves smoothly and features minute levels 

of friction resistance.

BCP stands for Business Continuity Plan. In a BCP, companies determine activities in normal times 

and the methods and means for continuing business in times of emergency to minimize damage to 

business assets and to allow continuation or early recovery of the core business in the event of 

emergency situations such as natural disasters, large fires and terrorist attacks.

BtoB stands for Business to Business, which means transactions between companies.

CMS stands for Condition Monitoring System. One example of a CMS is a system for understanding/ 

analyzing the operational status of bearings (e.g., vibration, noise, rotational torque) based on various 

data by bearings with sensors installed.

Column-type EPS is a type of Electric Power Steering which has a power assist element of a motor located 

on the steering column. The steering column is a component that conveys the turning of the steering wheel 

of vehicles to the steering gear, and the steering column adjusts the steering wheel position and mitigates 

the impact during a collision. NSK has been strong at steering column production and boasts a top-class 

world market share of column-type EPS.

CSR stands for Corporate Social Responsibility. The NSK Group takes CSR to mean “ensuring that all 

of its corporate activities meet the expectations of its diverse stakeholders and, in so doing, ensure the 

sustainable development of both society and NSK.”

CSR Procurement

CSR procurement refers to the procurement of raw materials and parts in consideration of compliance 

with laws and regulations, environmental protection, human rights, safety and health.

Design Quality

Design quality is targeted quality and is quality set in the design phase and realized in order to satisfy the 

functions and performance of products.

ECU stands for Electronic Control Unit. By using electronic circuits, ECU is a device that controls the 

operation of a motor, etc. Among NSK’s products, ECU used for electric power steering is particularly 

important.

Electric Power Steering

Please refer to “EPS.”

Environmentally Friendly 

Products

Environmentally friendly products refer to the products that perform better than existing products in 

order to help reduce the impact human societies have on the natural environment. The NSK Group 

works on product manufacturing that contributes to a reduction of the impact on the environment by 

upholding the following standards:

it is installed.

1. Each product should contribute toward the energy and resource conservation of the machine in which   

2. The amount of energy and resources required during product manufacturing should be minimal.

3. Environmentally harmful substances should not be used in products or manufacturing processes.

4. Products should contribute to the health and safety of end users by having low emissions of vibration, 

  noise and dust.

(Please also refer to page 45.)

EPS stands for Electric Power Steering. An EPS is a mechanism that supports the turning of automobile 

steering wheels (in other words, enabling the turning of steering wheels even with light force) by using an 

electric motor instead of hydraulic power. EPS can be divided into three types (column type, pinion type and 

rack type) depending on the location of the motor to which the power assist is provided.

ESG stands for Environment, Social and Governance, and generally ESG refers to the company’s efforts 

for the environment and society, as well as the structure and operating status of its corporate 

EV stands for Electric Vehicle. EVs are automobiles that drive the wheels by using electric motors as 

governance.

the power source.

Four Core Technologies

Four core technologies refer to NSK’s core technologies. For details, please refer to page 36.

F2 (Fujisawa) Project

With the aim of more efficient production, the F2 (Fujisawa) Project targets the improvement of profitability by 

reforming product types produced at two plants in the Fujisawa area and by increasing the number of 

buildings, updating manufacturing equipment and introducing new engineering methods in the No. 2 plant. 

F refers to the No. 1 Fujisawa Plant and F2 refers to the No. 2 Fujisawa Plant.

GAM

GAM stands for Global Account Manager in NSK. GAMs coordinate the global platform projects of 

automobiles across regions.

Green Procurement

Green procurement refers to the procurement of raw materials in consideration of the environment. The 

NSK Group has stipulated the NSK Group Green Procurement Standards 

(http://www.nsk.com/sustainability/csrReport/supplemental/greenps.html).

Meaning

Term

Meaning

Hub Unit Bearings

A hub for automobiles is the component where the wheels are screwed on. Hub unit bearings are used 
for the rotation part of the hub and are unit-type bearings integrated with coupling parts. Depending on 
the level of integration, there are various types of hub unit bearings.

IoT

KAM

KPI

Linear Guide

Lower-Assist EPS

Mother Plant

NIT

IoT stands for the Internet of Things. IoT is a concept to generate new value by collecting data via the 
Internet from sensors embedded on various things such as automobiles, home appliances, 
industrial machines and public infrastructure, and analyzing such data. IoT leads to such 
technological innovation as efficiency increases in machine control in plants, advertising according 
to individual tastes, detailed adjustment of power supply and monitoring senior citizens through 
home appliances.

KAM stands for Key Account Manager in NSK. KAMs coordinate with Global Account Managers for key 
customers in each region and build close relationships with customers as the contact person in 
individual regions. By taking advantage of such close relationships with customers, KAMs have a role 
in regional sales activity and response in technological matters.

KPI stands for Key Performance Indicator. A KPI is an indicator to measure the achievement level of 
targets.

A linear guide is a machinery part that is used for the section to support the linear motion of machines. 
Linear guides are one of the linear motion products and are used for machine tools, transfer machines 
and platform screen doors at stations, etc.

Lower-assist EPS refers to rack-type EPS and pinion-type EPS (single pinion, dual pinion) that provide 
power assist near the tires among the types of electric power steering. Column-type EPS provides assist 
near the steering wheel.

We position plants with outstanding capacity such as excellent technical ability and significant production 
capacity as Mother plants. In NSK, Mother plants have the role of transferring technology, etc., to the plants 
located overseas.

NIT stands for NSK Institute of Technology, which is an internal educational institute for our engineers 
to master more advanced technology.

NSK Manufacturing Education 
and Training Center

The NSK Manufacturing Education and Training Center was established in 2005 for the purpose of 
passing on technical skills in the production section to the next generation and fostering production 
site leaders.

OHSAS 18001

Operational Excellence

Per Production Unit

Planetary Gear

Powertrain

Product Quality

PSI Management

QCDDSM

Rack-Type EPS

Sales Channel

Smart Factory

OHSAS stands for Occupational Health and Safety Assessment Series. This standard was issued by the 
British Standards Institution (BSI) as OHSAS18001 in 1999 with support from 13 institutions such as 
standardization-related groups and certification institutions around the world. OHSAS18001 is a 
mechanism for managing occupational safety and health management risks that relate to workers 
such as health hazards and occupational accidents and for improving the performance.

In this report, operational excellence refers to “efforts to enhance front-line capability to increase the 
competitiveness of the NSK Group’s business.”

Per production unit refers to the standard amount of raw materials, workforce, power, etc., that are 
necessary to produce a certain amount of industrial products. “CO2 emission per production unit” means CO2 
(carbon dioxide) emissions discharged in the process of production of a certain amount of a product.

Planetary gear refers to a epicylic gearing mechanism consisting of three elements̶sun gear, planetary 
gear and ring gear.

Powertrain describes the main components that generate power and deliver to the drive wheel in 
automobiles.

Product quality is also called resulting quality, and it is the quality of products actually manufactured. 
Product quality is realized by control of the manufacturing phase.

The PSI of PSI Management stands for Production, Sales and Inventory. PSI Management refers to the 
appropriate management and operation of production, sales and inventory.

QCDDSM stands for Quality, Cost, Delivery, Development, Service and Management. The QCDDSM  
elements are generally focused on by the manufacturing industry including NSK.

Rack-type EPS is electric power steering that assists tire direction movement with a rack shaft in the 
steering gear section.
(Please also refer to “Lower-Assist EPS.”)

Sales channels mean sales routes. Distributors play a role in the product supply to end users as sales 
channels.

Smart Factory in this report refers to a new concept factory set up in the Fifth Mid-Term Management 
Plan. The status of equipment and processing in each process during manufacturing is understood with 
data in real time, which is utilized for quality control, equipment maintenance and product traceability. The 
understanding and management of big data are realized by advancements in Information Technology (IT). 
The evolution of the informatization of things such as IoT is the technology behind the Smart Factory.

UK Modern Slavery Act 2015

The Modern Slavery Act 2015 c.30 was established in 2015 in the United Kingdom to respond to crimes 
such as human trade, forced labor and sexual exploitation.

Vehicle Dynamics

Vehicle dynamics refers to the control of the dynamic performance of vehicle movement, in other words, 
the safe and smooth control of the change in posture and movement of vehicles for basic vehicle 
functions, namely, “running,” “stopping” and “turning.”

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Data Section
NSK Group

As of March 31, 2016

Region

Company name

Consolidated
equity

Outline of business

Region

Company name

Consolidated

Outline of business

equity

Japan

NSK STEERING SYSTEMS CO., LTD. 

100.0%

Manufacture of automotive components

Netherlands

NSK EUROPEAN DISTRIBUTION CENTRE B.V.

100.0%

Distribution service

NSK MICRO PRECISION CO., LTD.

55.0%

Manufacture and sales of industrial machinery bearings

Poland

NSK BEARINGS POLSKA S.A.

95.5%

Manufacture of industrial machinery bearings, etc.

NSK MICRO PRECISION CO., LTD. (NAGANO) 

100.0%

Manufacture of industrial machinery bearings

NSK NEEDLE BEARING LTD. 

98.1%

Manufacture of automotive bearings

AMATSUJI STEEL BALL MFG. CO., LTD.         

100.0%

Manufacture and sales of steel balls

AKS EAST JAPAN CO., LTD. 

NSK KYUSHU CO., LTD.

ASAHI SEIKI CO., LTD.      

NSK TOYAMA CO., LTD. 

SHINWA SEIKO CO., LTD.    

100.0%

Manufacture of steel balls

100.0%

Manufacture of precision machinery & parts

73.8%

Manufacture of bearing, parts

100.0%

Manufacture of industrial machinery bearing parts

82.4%

Manufacture of automotive bearing parts, etc.

KURIBAYASHI SEISAKUSHO CO., LTD.

73.5%

Manufacture and sales of automotive bearing parts

NSK MACHINERY CO., LTD. 

NSK REAL ESTATE CO., LTD. 

100.0%

Manufacture of machine tools, etc. 

100.0%

Real estate management and rental, etc.

NISSEI BLDG. MANAGEMENT LTD.  

70.0%

Management of Nissei Building

NSK POLSKA SP. Z O.O.

100.0%

Sales of industrial machinery bearings, etc.

NSK STEERING SYSTEMS EUROPE (POLSKA) SP. Z O.O.                                                                

Manufacture of automotive components

100.0%

NSK NEEDLE BEARING POLAND SP. Z O.O.

100.0%

Manufacture of automotive bearings

AKS PRECISION BALL POLSKA SP. Z O.O.

100.0%

Manufacture and sales of steel balls

Turkey

NSK RULMANLARI ORTA DOGU TIC. LTD. STI 

(NSK BEARINGS MIDDLE EAST TRADING CO., LTD.)

100.0%

Sales of industrial machinery bearings, etc.

South Africa

NSK SOUTH AFRICA (PTY) LTD.

100.0%

Sales of industrial machinery bearings, etc.

ASIA

Singapore

NSK INTERNATIONAL (SINGAPORE) PTE LTD. 

100.0%

Sales of industrial machinery bearings, etc.

NSK SINGAPORE (PRIVATE) LTD.

70.0%

Sales of industrial machinery bearings, etc.

Indonesia

PT. NSK BEARINGS MANUFACTURING INDONESIA

Manufacture of industrial machinery bearings, etc.

NSK-CHUGAI, LTD.  

65.0%

Insurance agent and sales of electrical components, etc. 

PT. NSK INDONESIA

Sales of industrial machinery bearings, etc.

NSK HUMAN RESOURCE SERVICES LTD.       

100.0%

Consignment services for salary and welfare, education and recruitment

PT. AKS PRECISION BALL INDONESIA

100.0%

Manufacture and sales of steel balls

NSK LOGISTICS CO., LTD. 

100.0%

Distribution service

Thailand

NSK BEARINGS MANUFACTURING (THAILAND) CO., LTD.

Manufacture and sales of automotive bearings

NSK NETWORK AND SYSTEMS CO., LTD.  

100.0%

Design and development for computer systems, etc.

SIAM NSK STEERING SYSTEMS CO., LTD.

Manufacture and sales of automotive components

ADTECH CORPORATION

51.0%

Research and development of automotive components

NSK ASIA PACIFIC TECHNOLOGY CENTRE (THAILAND) CO., LTD.

100.0%

Development of products, etc.              

NSK OVERSEAS HOLDINGS CO., LTD.

100.0%

Holding company of subsidiaries

NSK-WARNER K.K.    

CHITOSE SANGYO CO., LTD.

INOUE JIKUUKE KOGYO CO., LTD. 

50.0%

50.0%

40.0%

Manufacture and sales of automotive related products

Manufacture of automotive related products

Manufacture and sales of industrial machinery  bearings

THE AMERICAS
U.S.A.

NSK AMERICAS, INC.

NSK CORPORATION

100.0%

Control of American subsidiaries and affiliates

100.0%

Manufacture and sales of automotive bearings, etc.

NSK PRECISION AMERICA, INC.

100.0%

Manufacture and sales of precision machinery & parts

ZHANGJIAGANG NSK PRECISION MACHINERY  CO., LTD.

Manufacture of automotive bearing parts, etc.

Canada
Mexico

Brazil
Argentina
Peru

EUROPE
U.K.

NSK LATIN AMERICA, INC.

100.0%

Sales of industrial machinery bearings, etc.

NSK STEERING SYSTEMS AMERICA, INC.

100.0%

Manufacture and sales of automotive components

NSK-AKS PRECISION BALL COMPANY

100.0%

Manufacture and sales of steel balls

NSK CANADA INC.

100.0%

Sales of industrial machinery bearings, etc.

NSK RODAMIENTOS MEXICANA, S.A. DE C.V.

100.0%

Sales of industrial machinery bearings, etc.

NSK BEARINGS MANUFACTURING, MEXICO, S.A. DE C.V.

100.0%

Manufacture of automotive bearings, etc.

NSK BRASIL LTDA.

NSK ARGENTINA S.R.L.

NSK PERU S.A.C.

100.0%

Manufacture and sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales support of industrial machinery bearings, etc.

NSK EUROPE LTD.

NSK UK LTD.

100.0%

Control of European subsidiaries and affiliates

100.0%

Sales of industrial machinery bearings, etc.

NSK BEARINGS EUROPE LTD.

100.0%

Manufacture of automotive bearings, etc.

NSK STEERING SYSTEMS EUROPE LTD.

100.0%

Manufacture of automotive components

NSK PRECISION UK LTD.

100.0%

Manufacture of precision machinery & parts

AKS PRECISION BALL EUROPE LTD.

100.0%

Manufacture and sales of steel balls

Germany

NSK EUROPA HOLDING GMBH

100.0%

Holding company of subsidiaries in Germany

NSK DEUTSCHLAND GMBH

NEUWEG FERTIGUNG GMBH

NSK FRANCE S.A.S.

NSK ITALIA S.P.A.

NSK SPAIN S.A.

France
Italy
Spain

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Manufacture of industrial machinery bearings

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

NSK BEARINGS (THAILAND) CO., LTD.

Malaysia

NSK BEARINGS (MALAYSIA) SDN. BHD.

China

NSK MICRO PRECISION (M) SDN. BHD.

ISC MICRO PRECISION SDN. BHD.

NSK (CHINA) INVESTMENT CO., LTD.

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Manufacture of industrial machinery bearings

Manufacture of industrial machinery bearings

Holding company of Chinese subsidiaries and affiliates, 

sales of bearings, etc.

KUNSHAN NSK CO., LTD.

85.0%

Manufacture of automotive bearings, etc.

CHANGSHU NSK NEEDLE BEARING CO., LTD.

100.0%

Manufacture of automotive bearings

NSK STEERING SYSTEMS DONGGUAN CO., LTD.

Manufacture of automotive components

SUZHOU NSK BEARINGS CO., LTD.

100.0%

Manufacture of automotive bearings

AKS PRECISION BALL (HANGZHOU) CO., LTD.

100.0%

Manufacture and sales of steel balls

NSK (CHINA) RESEARCH AND DEVELOPMENT  CO., LTD.

100.0%

Research and development of bearings, etc.

90.0%

Manufacture of automotive components

NSK-YAGI PRECISION FORGING (ZHANGJIAGANG) CO., LTD.

82.0%

Manufacture of automotive bearing parts, etc.

NSK-WANDA ELECTRIC POWER ASSISTED 

STEERING SYSTEMS CO., LTD.

SHENYANG NSK PRECISION CO., LTD.

SHENYANG NSK CO., LTD.

HEFEI NSK CO., LTD.

South Korea

NSK KOREA CO., LTD.

100.0%

Manufacture and sales of industrial machinery bearings, etc.

NSK NEEDLE BEARING KOREA CO., LTD.

100.0%

Manufacture of automotive bearings

Manufacture of precision machinery & parts

Manufacture of industrial machinery bearings

Manufacture of automotive bearings, etc.

Sales of industrial machinery bearings, etc.

Sales of precision machinery & parts

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Manufacture and sales of automotive bearings

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Hong Kong

NSK HONG KONG LTD.

Taiwan

TAIWAN NSK PRECISION CO., LTD.

Vietnam

India

NSK VIETNAM CO., LTD.

NSK INDIA SALES CO. PVT. LTD.

NSK-ABC BEARINGS LTD.

Australia

NSK AUSTRALIA PTY. LTD.

New Zealand

NSK NEW ZEALAND LTD.

RANE NSK STEERING SYSTEMS LTD.

Manufacture and sales of automotive components

100.0%

100.0%

74.9%

74.9%

49.0%

51.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

70.0%

70.0%

100.0%

100.0%

97.5%

51.0%

100.0%

100.0%

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71

Data Section

NSK Group

As of March 31, 2016

Japan

NSK STEERING SYSTEMS CO., LTD. 

100.0%

Manufacture of automotive components

NSK MICRO PRECISION CO., LTD.

55.0%

Manufacture and sales of industrial machinery bearings

NSK MICRO PRECISION CO., LTD. (NAGANO) 

100.0%

Manufacture of industrial machinery bearings

NSK NEEDLE BEARING LTD. 

98.1%

Manufacture of automotive bearings

AMATSUJI STEEL BALL MFG. CO., LTD.         

100.0%

Manufacture and sales of steel balls

AKS EAST JAPAN CO., LTD. 

NSK KYUSHU CO., LTD.

ASAHI SEIKI CO., LTD.      

NSK TOYAMA CO., LTD. 

SHINWA SEIKO CO., LTD.    

100.0%

Manufacture of steel balls

100.0%

Manufacture of precision machinery & parts

73.8%

Manufacture of bearing, parts

100.0%

Manufacture of industrial machinery bearing parts

82.4%

Manufacture of automotive bearing parts, etc.

KURIBAYASHI SEISAKUSHO CO., LTD.

73.5%

Manufacture and sales of automotive bearing parts

NSK MACHINERY CO., LTD. 

NSK REAL ESTATE CO., LTD. 

100.0%

Manufacture of machine tools, etc. 

100.0%

Real estate management and rental, etc.

NISSEI BLDG. MANAGEMENT LTD.  

70.0%

Management of Nissei Building

NSK OVERSEAS HOLDINGS CO., LTD.

100.0%

Holding company of subsidiaries

NSK-WARNER K.K.    

CHITOSE SANGYO CO., LTD.

Manufacture and sales of automotive related products

Manufacture of automotive related products

INOUE JIKUUKE KOGYO CO., LTD. 

Manufacture and sales of industrial machinery  bearings

50.0%

50.0%

40.0%

THE AMERICAS

U.S.A.

NSK AMERICAS, INC.

NSK CORPORATION

100.0%

Control of American subsidiaries and affiliates

100.0%

Manufacture and sales of automotive bearings, etc.

NSK PRECISION AMERICA, INC.

100.0%

Manufacture and sales of precision machinery & parts

NSK LATIN AMERICA, INC.

100.0%

Sales of industrial machinery bearings, etc.

NSK STEERING SYSTEMS AMERICA, INC.

100.0%

Manufacture and sales of automotive components

NSK-AKS PRECISION BALL COMPANY

100.0%

Manufacture and sales of steel balls

NSK CANADA INC.

100.0%

Sales of industrial machinery bearings, etc.

NSK RODAMIENTOS MEXICANA, S.A. DE C.V.

100.0%

Sales of industrial machinery bearings, etc.

NSK BEARINGS MANUFACTURING, MEXICO, S.A. DE C.V.

100.0%

Manufacture of automotive bearings, etc.

NSK BRASIL LTDA.

NSK ARGENTINA S.R.L.

NSK PERU S.A.C.

100.0%

Manufacture and sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales support of industrial machinery bearings, etc.

Canada

Mexico

Brazil

Argentina

Peru

EUROPE

U.K.

NSK EUROPE LTD.

NSK UK LTD.

100.0%

Control of European subsidiaries and affiliates

100.0%

Sales of industrial machinery bearings, etc.

NSK BEARINGS EUROPE LTD.

100.0%

Manufacture of automotive bearings, etc.

NSK STEERING SYSTEMS EUROPE LTD.

100.0%

Manufacture of automotive components

NSK PRECISION UK LTD.

100.0%

Manufacture of precision machinery & parts

AKS PRECISION BALL EUROPE LTD.

100.0%

Manufacture and sales of steel balls

Germany

NSK EUROPA HOLDING GMBH

100.0%

Holding company of subsidiaries in Germany

NSK DEUTSCHLAND GMBH

NEUWEG FERTIGUNG GMBH

NSK FRANCE S.A.S.

NSK ITALIA S.P.A.

NSK SPAIN S.A.

France

Italy

Spain

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Manufacture of industrial machinery bearings

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

Region

Company name

Consolidated

Outline of business

equity

Region

Company name

Consolidated
equity

Outline of business

Netherlands
Poland

NSK EUROPEAN DISTRIBUTION CENTRE B.V.

100.0%

Distribution service

NSK BEARINGS POLSKA S.A.

NSK POLSKA SP. Z O.O.

95.5%

Manufacture of industrial machinery bearings, etc.

100.0%

Sales of industrial machinery bearings, etc.

NSK STEERING SYSTEMS EUROPE (POLSKA) SP. Z O.O.                                                                

Manufacture of automotive components

100.0%

NSK NEEDLE BEARING POLAND SP. Z O.O.

100.0%

Manufacture of automotive bearings

AKS PRECISION BALL POLSKA SP. Z O.O.

100.0%

Manufacture and sales of steel balls

Turkey

NSK RULMANLARI ORTA DOGU TIC. LTD. STI 
(NSK BEARINGS MIDDLE EAST TRADING CO., LTD.)

100.0%

Sales of industrial machinery bearings, etc.

South Africa

NSK SOUTH AFRICA (PTY) LTD.

100.0%

Sales of industrial machinery bearings, etc.

ASIA
Singapore

NSK INTERNATIONAL (SINGAPORE) PTE LTD. 

100.0%

Sales of industrial machinery bearings, etc.

NSK SINGAPORE (PRIVATE) LTD.

70.0%

Sales of industrial machinery bearings, etc.

NSK-CHUGAI, LTD.  

65.0%

Insurance agent and sales of electrical components, etc. 

PT. NSK INDONESIA

Indonesia

PT. NSK BEARINGS MANUFACTURING INDONESIA

100.0%

100.0%

Manufacture of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

NSK HUMAN RESOURCE SERVICES LTD.       

100.0%

Consignment services for salary and welfare, education and recruitment

PT. AKS PRECISION BALL INDONESIA

100.0%

Manufacture and sales of steel balls

NSK LOGISTICS CO., LTD. 

100.0%

Distribution service

NSK NETWORK AND SYSTEMS CO., LTD.  

100.0%

Design and development for computer systems, etc.

Thailand

NSK BEARINGS MANUFACTURING (THAILAND) CO., LTD.

SIAM NSK STEERING SYSTEMS CO., LTD.

74.9%

74.9%

Manufacture and sales of automotive bearings

Manufacture and sales of automotive components

ADTECH CORPORATION

51.0%

Research and development of automotive components

NSK ASIA PACIFIC TECHNOLOGY CENTRE (THAILAND) CO., LTD.

100.0%

Development of products, etc.              

NSK BEARINGS (THAILAND) CO., LTD.

Malaysia

NSK BEARINGS (MALAYSIA) SDN. BHD.

China

NSK MICRO PRECISION (M) SDN. BHD.

ISC MICRO PRECISION SDN. BHD.

NSK (CHINA) INVESTMENT CO., LTD.

49.0%

51.0%

100.0%

100.0%

100.0%

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Manufacture of industrial machinery bearings

Manufacture of industrial machinery bearings

Holding company of Chinese subsidiaries and affiliates, 
sales of bearings, etc.

KUNSHAN NSK CO., LTD.

85.0%

Manufacture of automotive bearings, etc.

CHANGSHU NSK NEEDLE BEARING CO., LTD.

100.0%

Manufacture of automotive bearings

NSK STEERING SYSTEMS DONGGUAN CO., LTD.

ZHANGJIAGANG NSK PRECISION MACHINERY  CO., LTD.

100.0%

100.0%

Manufacture of automotive components

Manufacture of automotive bearing parts, etc.

SUZHOU NSK BEARINGS CO., LTD.

100.0%

Manufacture of automotive bearings

AKS PRECISION BALL (HANGZHOU) CO., LTD.

100.0%

Manufacture and sales of steel balls

NSK (CHINA) RESEARCH AND DEVELOPMENT  CO., LTD.

100.0%

Research and development of bearings, etc.

NSK-WANDA ELECTRIC POWER ASSISTED 
STEERING SYSTEMS CO., LTD.

90.0%

Manufacture of automotive components

NSK-YAGI PRECISION FORGING (ZHANGJIAGANG) CO., LTD.

82.0%

Manufacture of automotive bearing parts, etc.

SHENYANG NSK PRECISION CO., LTD.

SHENYANG NSK CO., LTD.

HEFEI NSK CO., LTD.

NSK HONG KONG LTD.

TAIWAN NSK PRECISION CO., LTD.

NSK KOREA CO., LTD.

100.0%

100.0%

100.0%

70.0%

70.0%

Manufacture of precision machinery & parts

Manufacture of industrial machinery bearings

Manufacture of automotive bearings, etc.

Sales of industrial machinery bearings, etc.

Sales of precision machinery & parts

100.0%

Manufacture and sales of industrial machinery bearings, etc.

NSK NEEDLE BEARING KOREA CO., LTD.

100.0%

Manufacture of automotive bearings

NSK VIETNAM CO., LTD.

NSK INDIA SALES CO. PVT. LTD.

NSK-ABC BEARINGS LTD.

RANE NSK STEERING SYSTEMS LTD.

Australia
New Zealand

NSK AUSTRALIA PTY. LTD.

NSK NEW ZEALAND LTD.

100.0%

100.0%

97.5%

51.0%

100.0%

100.0%

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Manufacture and sales of automotive bearings

Manufacture and sales of automotive components

Sales of industrial machinery bearings, etc.

Sales of industrial machinery bearings, etc.

Hong Kong
Taiwan
South Korea

Vietnam
India

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71

Data Section
Information for Investors / Company Data

As of March 31, 2016

Corporate Address
NSK Ltd.
Nissei Bldg., 1-6-3 Ohsaki, Shinagawa-ku, 
Tokyo 141-8560, Japan
Tel: +81-3-3779-7111
Fax: +81-3-3779-7431

Contact Information
For questions or additional information, please contact:
IR Office, NSK Ltd.

Nissei Bldg., 1-6-3 Ohsaki, Shinagawa-ku,
Tokyo 141-8560, Japan
Tel: +81-3-5487-2564  Fax: +81-3-3779-7442
E-mail: ir@nsk.com

NSK’s Website
NSK provides a wealth of data including both financial and non-financial 
information on its website.
▶ http://www.nsk.com

Annual Meeting of Shareholders
The Annual Meeting of Shareholders was held on June 24, 2016.

Common Stock
Authorized: 1,700,000,000 shares
Issued: 551,268,104 shares (Treasury stock: 9,286,771)

Number of Shareholders
28,467

Transfer Agent
Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo 103-8670, Japan

Listing
Tokyo

Security Code
6471

Breakdown of Shareholders

Number of Shares (thousand shares)
■ Financial Institutions .. 284,304
■ Securities Companies... 18,093
■ Other Japanese Corporations... 50,413

■ Foreign Investors........ 133,204
■ Individuals / Others....... 55,965

10.32%

24.58%

Total
541,981
thousand shares
(excluding treasury stocks )

52.46%

9.30%

3.34%

Share Price Fiscal Year Trends 
(High・Low・Fiscal Year-End・Volatility)

High (Yen) Low (Yen) Fiscal year-
end (Yen)
1,124
755
377
738
717
637
715
1,062
1,758
1,030

28.2%
42.4%
74.3%
47.6%
37.4%
36.7%
36.5%
45.7%
32.6%
39.0%
Note: Volatility refers to the standard deviation annualized 

1,187
1,349
1,077
750
836
815
758
1,360
1,815
2,120

792
745
282
366
495
458
414
646
1,023
910

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

rate based on the daily closing price.

NSK’s Share Price Trends (10-Year Period including Dividends)

Share Price Trend (TSR*)
Investment
Period

1 Year

3-Year

5-Year

10-Year

Fiscal Year

Cumulative/
annual rate Cumulative
55.0%
-39.5%
38.2%
-10.8%
27.5%
-18.2%

NSK
TOPIX
TOPIX Machinery

Annual rate

Cumulative

Annual rate

Cumulative

Annual rate

15.7%
11.4%
8.4%

57.7%
72.1%
46.9%

9.5%
11.5%
8.0%

17.3%
-5.6%
3.9%

1.6%
-0.6%
0.4%

* TSR (Total Shareholders’ Return): Total return on investment including capital gains and dividends

(Index)
250

200

150

100

50

0

expected to provide, and the issues to be addressed.

realize our Vision.

Volatility

2006/3

2007/3

2008/3

2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/3

- NSK　- TOPIX　- TOPIX Machinery
Note: Share price index trends including dividends (March 31, 2006 = 100).

72

NSK REPORT 2016

About NSK Vision 2026

Please refer to the designated 100th Anniversary site for details.

▶ http://www.nsk.com/100th/index.html

NSK Vision 2026

NSK will mark its 100th anniversary on November 8, 2016. NSK 

Vision 2026 is a statement that outlines what the NSK Group will 

strive for and accomplish over the 10 years after its 100th 

anniversary, with the ultimate aim of becoming a company that 

continues to contribute to society while achieving sustainable growth.

Background behind Formulating the Vision

As society and markets undergo substantial change, it is important 

that we consistently create the distinct value that only NSK can 

deliver. Only in this manner can we expect to be a leading global 

company that continuously delivers higher levels of value to 

customers and society. As our products, services, and human 

resources diversify, it is important to set a specific future vision that 

each and every employee of the NSK Group can share and work 

towards in order to create new value. For this reason, we identified 

objectives for the NSK Group to aim for and accomplish and put in 

place NSK Vision 2026.

Steps Leading to Formulation

In formulating the vision, we gathered large numbers of direct 

comments, conducted global surveys completed by the Group’s 

employees worldwide as well as group discussions and held meetings 

with management. We worked to analyze our current weaknesses and 

strengths and to clarify our mission, the value that NSK should be 

Corporate

Philosophy

Mission

Statement

Management 

Principles

Action Guidelines

NSK Vision 2026

NSK Vision 2026 provides the direction for 

achieving the Company's Mission Statement. The 

Action Guidelines provide details of the behavior 

required of each and every employee if we are to 

Other Information Concerning the Company

Further Financial Information

Other IR-Related Information

CSR-Related Information

Please refer to the Company’s financial 

Please refer to the Company’s IR 

report and other IR-related materials 

website for a wider range of investor 

for more detailed information on NSK’s 

information including financial 

financial results for the fiscal year 

highlights, business segment 

ended March 31, 2016.

information, stock & bond information, 

▶ http://www.nsk.com/investors/documents/

IR calendar, etc.

▶ http://www.nsk.com/investors/

Please refer to the Company’s CSR website  

and CSR Report for more details on CSR 

activities and other related information.

▶ http://www.nsk.com/sustainability/

CSR Report 2016

CSR Report 2016

NSK REPORT 2016

73

Information for Investors / Company Data

Nissei Bldg., 1-6-3 Ohsaki, Shinagawa-ku, 

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

1-2-1 Yaesu, Chuo-ku, Tokyo 103-8670, Japan

Data Section

As of March 31, 2016

Corporate Address

NSK Ltd.

Tokyo 141-8560, Japan

Tel: +81-3-3779-7111

Fax: +81-3-3779-7431

Contact Information

Listing

Tokyo

Security Code

6471

For questions or additional information, please contact:

IR Office, NSK Ltd.

Nissei Bldg., 1-6-3 Ohsaki, Shinagawa-ku,

Tokyo 141-8560, Japan

Tel: +81-3-5487-2564  Fax: +81-3-3779-7442

E-mail: ir@nsk.com

NSK provides a wealth of data including both financial and non-financial 

NSK’s Website

information on its website.

▶ http://www.nsk.com

Annual Meeting of Shareholders

The Annual Meeting of Shareholders was held on June 24, 2016.

Common Stock

Authorized: 1,700,000,000 shares

Issued: 551,268,104 shares (Treasury stock: 9,286,771)

Number of Shareholders

28,467

Breakdown of Shareholders

Number of Shares (thousand shares)

■ Financial Institutions .. 284,304

■ Foreign Investors........ 133,204

■ Securities Companies... 18,093

■ Individuals / Others....... 55,965

■ Other Japanese Corporations... 50,413

24.58%

52.46%

10.32%

Total

541,981

thousand shares

(excluding treasury stocks )

9.30%

3.34%

NSK’s Share Price Trends (10-Year Period including Dividends)

Share Price Trend (TSR*)

Investment

Period

Cumulative/

annual rate Cumulative

1 Year

3-Year

5-Year

10-Year

Annual rate

Cumulative

Annual rate

Cumulative

Annual rate

NSK

TOPIX

-39.5%

-10.8%

TOPIX Machinery

-18.2%

55.0%

38.2%

27.5%

15.7%

11.4%

8.4%

57.7%

72.1%

46.9%

9.5%

11.5%

8.0%

17.3%

-5.6%

3.9%

1.6%

-0.6%

0.4%

* TSR (Total Shareholders’ Return): Total return on investment including capital gains and dividends

Share Price Fiscal Year Trends 

(High・Low・Fiscal Year-End・Volatility)

Fiscal Year

High (Yen) Low (Yen) Fiscal year-

Volatility

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1,187

1,349

1,077

750

836

815

758

1,360

1,815

2,120

end (Yen)

1,124

755

377

738

717

637

715

1,062

1,758

1,030

792

745

282

366

495

458

414

646

1,023

910

28.2%

42.4%

74.3%

47.6%

37.4%

36.7%

36.5%

45.7%

32.6%

39.0%

Note: Volatility refers to the standard deviation annualized 

rate based on the daily closing price.

(Index)

250

200

150

100

50

0

2006/3

2007/3

2008/3

2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/3

- NSK　- TOPIX　- TOPIX Machinery

Note: Share price index trends including dividends (March 31, 2006 = 100).

72

NSK REPORT 2016

About NSK Vision 2026

Please refer to the designated 100th Anniversary site for details.
▶ http://www.nsk.com/100th/index.html

NSK Vision 2026
NSK will mark its 100th anniversary on November 8, 2016. NSK 
Vision 2026 is a statement that outlines what the NSK Group will 
strive for and accomplish over the 10 years after its 100th 
anniversary, with the ultimate aim of becoming a company that 
continues to contribute to society while achieving sustainable growth.

Background behind Formulating the Vision
As society and markets undergo substantial change, it is important 
that we consistently create the distinct value that only NSK can 
deliver. Only in this manner can we expect to be a leading global 
company that continuously delivers higher levels of value to 
customers and society. As our products, services, and human 
resources diversify, it is important to set a specific future vision that 
each and every employee of the NSK Group can share and work 
towards in order to create new value. For this reason, we identified 
objectives for the NSK Group to aim for and accomplish and put in 
place NSK Vision 2026.

Steps Leading to Formulation
In formulating the vision, we gathered large numbers of direct 
comments, conducted global surveys completed by the Group’s 
employees worldwide as well as group discussions and held meetings 
with management. We worked to analyze our current weaknesses and 
strengths and to clarify our mission, the value that NSK should be 
expected to provide, and the issues to be addressed.

Corporate
Philosophy

Mission
Statement

Management 
Principles

Action Guidelines

NSK Vision 2026

NSK Vision 2026 provides the direction for 
achieving the Company's Mission Statement. The 
Action Guidelines provide details of the behavior 
required of each and every employee if we are to 
realize our Vision.

Other Information Concerning the Company

Further Financial Information

Other IR-Related Information

CSR-Related Information

Please refer to the Company’s financial 
report and other IR-related materials 
for more detailed information on NSK’s 
financial results for the fiscal year 
ended March 31, 2016.

▶ http://www.nsk.com/investors/documents/

Please refer to the Company’s IR 
website for a wider range of investor 
information including financial 
highlights, business segment 
information, stock & bond information, 
IR calendar, etc.

▶ http://www.nsk.com/investors/

Please refer to the Company’s CSR website  
and CSR Report for more details on CSR 
activities and other related information.

▶ http://www.nsk.com/sustainability/

CSR Report 2016

CSR Report 2016

NSK REPORT 2016

73

NSK REP ORT 2016

Year ended March 31, 2016 

Integrated Report

N

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R

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P

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2

0

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NSK used environmentally friendly paper and printing methods for this publication.

CAT. No. E8409 2016 AX-10 Printed in Japan ©NSK Ltd. 2016