Financial Information

Annual Report 2003

Corporate Section:

Corporate Philosophy and Corporate Profile

Financial Highlights

Industry Trends and NSK’s Global Alliances

Letter from the CEO: To Our Shareholders and lnvestors

Special Feature 1: Progress in the 2nd Phase of the NSK Business Restructuring Program and Mid-term Business Strategy

Special Feature 2:Hub Unit Bearings and China; Mid to Long–term Driving Forces

Special Feature 3: Establishment of a Global Production Network

Review of Operations: Overview

Review of Operations: Bearings

Review of Operations: Automotive Components

Review of Operations: Precision Machinery and Parts

Research and Development Strategy Targeting Mid to Long–term Growth

Our Environmental Initiatives

Corporate Governance

Management

Financial Section:

Ten-Year Summary

Six-Year Segment Information

Consolidated Financial Review

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Shareholders' Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Summary of Significant Accounting Policies U.S. Dollar Amounts Securities Inventories Depreciation Short-Term Debt Income Taxes Accrued Expenses and Other Current Liabilities Long-Term Debt Retirement Benefit Plans Shareholders' Equity Research and Development Costs Commitments and Contingencies Leases Derivative Transactions Amounts Per Share Supplementary Cash Flow Information Segment Information

Report of Independent Auditors

NSK Group PARENT COMPANY MAJOR GROUP COMPANIES - Japan MAJOR GROUP COMPANIES - Americas MAJOR GROUP COMPANIES - Europe MAJOR GROUP COMPANIES - Africa MAJOR GROUP COMPANIES - Asia MAJOR GROUP COMPANIES - Oceania Information for Investors

Cautionary Statements with Respect to Forward-Looking Statements

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 the forward–looking statements.