Note Regarding gforward-looking Statements

Transcription

1 (TSE: 6594 NYSE: NJ) Nidec Corporation First Quarter Fiscal 215 Results Three Months Ended June 3, 215 <U.S.GAAP> July 22, 215 Note Regarding gforward-looking Statements These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management s targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group s ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the latest Form 2-F and Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required bylaw. The photograph on the first slide features the FLEXWAVE manufactured by Nidec-Shimpo Corporation, a compact and high-precision strain wave gear used for end products including industrial robots. 2

2 Consolidated Profit/Loss Millions of Yen except for EPS and FX Rates 1Q FY214 1Q FY215 Change FY215 Forecast 24, , % 1,15, Operating Income 25,35 31,61 (Operating Income Ratio) (1.4%) (1.9%) +24.1% 13, (11.3%) Income Before Tax 24,454 32, % 126, Net Income 17,573 24, % 9, EPS (Yen) % FX Rates (Yen/US$) Average: Term end: % +2.8% 115. (Assumed) Note: Based on the current forecast of sales volume, every one yen appreciation i or depreciation i against the U.S. dollar and the euro for FY215 is estimated to have an annualized impact of 6.8 billion yen and 1. billion yen on sales, respectively, and.8 billion yen and.25 billion yen on operating income, respectively. This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 3 Summary of 1Q FY215 Record-high quarterly net sales, operating income, income before taxes and net income Nine consecutive quarters of operating income increase following the structural reform in FY212 Nine consecutive quarters of operating income increase for Automotive, Appliance, Commercial and Industrial Products, a driving force for Nidec group s ongoing business portfolio transformation ti 4

3 Consolidated Quarterly and Operating Income 35 Record-high 35 achieved (LHS) Operating Income (RHS) (All figures in Billions of Yen) 3 3 Net Sale es Japan 15 Earthquake 25 Operating Income 1 Thai Floods 1 5 Lehman Crisis 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q -5 FY28 FY29 FY21 FY211 FY212 FY213 FY Structural Reform 5 Accelerating Regrowth by Utilizing Core Technology Exploring new markets using precision machining expertise based on FDB technology HDD Target markets High market Pi i share and profitability Core technology FDB * HDD market FDB technology HDD Motor Current core business Automotive market New market FDB technology FDB Fan (UltraFlo FDB) New markets High added-value Pioneering new markets with unique technologies Expanding deep into other markets Applied technology Automotive market applied technology Modularization of automotive components (ADAS, power-pack, etc.) Application and development of technology New market applied technology Haptics (Linear resonant actuator) Innovation and growth potential Core businesses for the future *FDB: Fluid Dynamic Bearing 6

4 Nidec HDD Motor Shipment Outlook While HDD shipments are weakening, Nidec s market share is estimated to increase HDD Shipments Nidec Motor Shipments Previous FY215 Forecast (April 23, 215) Revised FY215 Forecast (July 22, 215) (Millions of Units) (Millions of Units) FY15/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q (Actual) This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. (Nidec estimates based on various sources) 7 HDD Motor Market Consolidated to Two Suppliers Improving profitability by enhancing productivity in stable market New map of global HDD motor market Company S Company S Two suppliers in market Company M Company M Company M <FY215 1Q> <2Q> <3Q> (Nidec estimates based on various sources) 8

5 Evolving Market for Small Precision Motors Haptic Devices Smartphones PCs and Tablets Automobiles Linear resonant actuator Built-in linear resonant actuator mounted under the touch pad Wearables (e.g., watches) Vibration motors around the driver s seat and controllers Linear resonant actuators for various wearables 9 Expansion Strategy for UltraFlo FDB Tap into the high-end, then spread down into the middle-range Obtained approx. 3% market share in high-end models. Aiming i for further growth. High-end Around US$1,25 Approx 3% Market Share Approx. 1 mil. units UltraFlo FDB Middle-Range Around US$1, Approx. 4 mil. units Launching next generation models Low-end Approx. 12 mil. units Notebook PC Market Tablet Market (17 mil. units per year) (2 mil. units per year) (Nidec estimates based on various sources) 1

6 2 Quarterly Trends Automotive, Appliance, Commercial and Industrial Products Taking steps to keep the upward momentum of nine consecutive operating income growth throughout FY215 ( in Billions of Yen) (LHS) Operating Income (RHS) (Operating Income in Billions of Yen) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -3. FY211 FY212 FY213 FY214 (Actual) (Actual) (Actual) This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. (Actual) (A) (F) (F) FY215 (F) *Please refer to Notes on page Completion of Italy-based Motortecnica Acquisition * Strengthening Nidec ASI s service business and expanding into power generation market Company Name: Motortecnica s.r.l. Headquarters: City of Salerno, Italy y( (suburb of Naples) Foundation: 1989 Principal Businesses: Designing, manufacturing, repairing, maintenance & servicing of electrical rotating machinery, with focus areas of remanufacturing & refurbishment Sales: 11 million (fiscal year ended December 31, 214) Oil, Gas Business Areas of Industrial Solutions Motortecnica's capabilities and experience in designing, manufacturing, repairing and remanufacturing of electric generators and components, together with Nidec ASI's worldwide sales network, are expected to help enhance and expand Nidec ASI s service business. Energy * Transaction closed on May 15, 215 Irrigation, Agriculture Mining Water and sewerage Industrial Vessels Construction machinery Steel, Metals 12

7 Eyeing Global Target of 1 Trillion Yen in FY23 Creating New Large-Scale Large Scale Businesses Machines, Equipment Trains Vessels Digital home appliances Industrial IoT I T Robots Social infrastructure Logistics Home Elevators, Escalators Photo oltaic power po er Photovoltaic generation Automobiles Automation systems Pumps (Irrigation, Filtration) Construction machines Airplanes Factories Connected World through Internet of Things 13 Nidec s IoT Strategy <Emerging business opportunities> Real world IT Digital appliances Smart Car Automobiles Logistics Feedback Collecting data with sensors Everything that spins and moves Factories Smart Press Feedback Machines, Equipment Big Data Tie-up with IBM Japan Photovoltaic power generation Collecting data with ith sensors Everything that spins and moves Pumps Agriculture Feedback Robotics Various robots? AI Collecting data with sensors V Vessels l Medical care Construction machines Airplanes Everything that spins and moves *AI: Artificial Intelligence Trains 14

8 Joint Project with IBM Japan Announced in the Field of Smart Press Machine Adding value to Nidec group products through Internet of Things Machine to machine- Smart Smart Smart Smart based IoT solution Factory * AGV Press Energy Application/solution Platform Nt Network Device Control cloud Big data analysis server engine Internet or Intranet IoT visualization tool Factory access point Smart hub Build a system based on our expertise on devices Sensor Measuring equipment AGV * Manufacturing equipment Power conditioner Connect to cloud servers using sensors & communication terminals Production line Logistics Industries Photovoltaic generation/irrigation *AGV: Automatic Guided Vehicle pump 15 Aiming Full-Scale Entry into Service Robot Market Nursing support robot Robotic cleaner (professional -use) Power assist suits Drone Automatic guided vehicle Robotic cleaner (home use) Personal mobility Appli- cations Telepresence robot Communication robot (Trillions of Yen) Communication robots estimated to account for over 4% of entire robot market 7 <Service robot market forecast> Communication robot 6 Tele-presence robot Rapid expansion Personal mobility Robotic cleaner (home use) Automatic guided vehicle Drone 2 Power-assist suits Robotic cleaner (professional-use) Nursing support robot (Nidec estimates based on various sources) 16

9 Nidec IR Contacts Japan Tel: U.K. Tel: U.S. Tel: *Notes: Pursuant to ASC 85 Business Combinations under U.S. GAAP, we are currently evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec GPM GmbH (formerly Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt) and Motortecnica s.r.l. These assets and liabilities have been recorded on our consolidated d balance sheet based on preliminary i management estimation as of June 3, 215. Nidec logo is a registered trademark or a trademark of Nidec Corporation in Japan, the United States and/or certain other countries. All for dreams logo is a registered trademark of Nidec Corporation in Japan, and a trademark in the United States and/or certain other countries. 17 Appendix Performance Trends & Product Group Overview 18

10 by Product Group (Apr-Jun FY215) Electronic & Optical Components Camera shutters, switches, trimmer potentiometers, processing, precision plastic mold products Machinery Industrial robots, circuit board testers, high-speed pressing machines, chip mounters, measuring equipment, power transmission equipment, factory automation system, card readers Automotive, Appliance, Commercial and Industrial 48.2% Products Others 9.4% (9.3%).4% (.7%) Appliance Commercial Industrial 25.% (26.4%) Parenthetic percentages represent FY214 mix Services, musical products 5.6% 36.5% (6.7%) 285.B HDD Motors 17.5% Auto 23.2% (19.5%) (19.1%) 19.% (18.3%) Small Precision Motors (37.4%) Other Small Motors Optical disk drive motors, OA equipment motors, polygon scanners, MPU cooling fans, game machine fans, PC/communications equipment fans, home appliance fans, automobile fans, vibration motors, brush motors, (45.9%) stepping motors, actuator units 19 Consolidated & Operating Income (Billions of Yen) (Billions of Yen) (LHS) Operating Income (RHS) Operating Income Ratio % 1.8% 1.9% % % 1Q/FY14 2Q 3Q 4Q 1Q/FY15 2

11 Consolidated Income Before Tax & Net Income (Billions of Yen) Consolidated Income Before Tax Consolidated Net Income Q/FY14 2Q 3Q 4Q 1Q/FY15 21 Small Precision Motors (Billions of Yen) Operating income Q/FY14 2Q 3Q 4Q 1Q/FY15 for HDD Motors (LHS) for Other Small Precision Motors (LHS) Operating Income (RHS) 22

12 Automotive, Appliance, Commercial and Industrial Products (Billions of Yen) Operating income Q/FY14 2Q 3Q 4Q 1Q/FY15 for Appliance, Commercial, Industrial (LHS) for Automotive (LHS) Operating Income (RHS) *Please refer to Notes on page Machinery (Billions of Yen) Operating income Q/FY14 2Q 3Q 4Q 1Q/FY15 (LHS) Operating Income (RHS) 24

13 Electronic & Optical Components (Billions of Yen) Operating income Q/FY14 2Q 3Q 4Q 1Q/FY15 (LHS) Operating Income (RHS) 25 Others (Billions of Yen) Operating income Q/FY14 2Q 3Q 4Q 1Q/FY15 (LHS) Operating Income (RHS) 26

14 Mid-Term Strategic Goal Vision 22 This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 27 FY22 New Mid-Term Strategic Target Continuous pursuit for profit & strong growth 1. Target for consolidated d net sales: 2 trillion Yen (including new M&A of approx. 5 billion Yen) 2. Sales target for automotive: 7 billion to 1 trillion Yen 3. Target for consolidated operating income ratio: 15% 4. Target for ROE: 18% (Assuming shareholders equity ratio of 6%) 5. Five regional HQ management This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 28

15 Targets for and Operating Income Ratio Aiming for both sales growth (organic + M&A) and profitability enhancement ( in Trillions of Yen) (Operating Income Ratio, %) % % 13.7% 571.6B Net Sales 676.B 682.3B 1.7% 1.8% 9.7% 79.3B 875.1B 1.3T 1.15T 11.3% Organic Growth + M&A (CAGR approx. 12%) Organic growth (CAGR approx. 7%) 2T New M&A Approx.5B % FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY2 Structural (Target) Reform This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 29 Pursuing Both Strong Growth with Profit and Financial Soundness Targeting operating income ratio of 15% and ROE of 18% while sustaining and improving financial soundness (The average ROE during the ten years through FY214 was 12.3%) (Billion yen) Positive net cash by March 216 in sight (%) 1,5 Shareholders Equity (LHS) ROE (RHS) 6.% 65% Shareholders Equity Ratio (RHS) Operating Income Ratio (RHS) Shareholders equity ratio 55.% 6% 1,2 surpassed 5% one year ahead of plan 49.1% Equity Ratio 55% 47.5% 46.2% 44.4% The three elements for 5% % ROE improvement 41.3% Net profit on sales 45% Total asset turnover Financial leverage % 8.9% % 15.% 13.9% 13.7% % 1.7% % 2.% % 9.7% 12.1% 1.8% ROE Operating Income Ratio FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY2 Lehman Crisis Structural Reform (Target) 18% 15% 2% 15% 1% Japan Credit Rating Agency, Ltd. (JCR) upgraded our long-term issuer rating by one notch from A+ to AA- as of Oct. 1, 214. This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 5% % 3

16 Business Structure to Support Profitable Global Growth Matrix management structure with five regional HQ Strengthening bases for growth strategy Global organic growth Accelerating post merger integration of overseas acquisitions Small Precision Motors Management function by business Automotive Appliance, Commercial & Industrial Other Product Groups 2. China 1. Japan Regional HQ began operating in Jan 212 Roles of regional Headquarters 3. Asia 2. China 1. Improve management quality From individual management by (Governance, Compliance, Internal Control) country to regional integration 3. Asia 4. Americas 2. Improve management efficiency (TBD) Regional HQ began operating in (High quality & cost effective shared services) Oct 214 4A 4. Americas 3P 3. Proactive PMI support for 5. EMEA Reorganization registration filed in acquired companies Mar EMEA * function by nction l corporate gion and fun Regional reg * EMEA: Europe, the Middle East and Africa 31 Targets for in FY22 by Category Accelerate topline growth with focused allocation of management resources in fast growing areas di driven by technological linnovations (Sales: Billions of Yen) FY22 : 2 Trillion Yen (Target) 7B to 1 T FY21 : 676. Billion Yen FY215 : 1.15 Trillion Yen (Target) New M&A 5 (Sales: Billions of Yen) (Sales: Billions of Yen) 4 to 6 4 to 6 4 Key Growth Areas Small Precision Motors 69.2 Automotive 94.2 Appliance, Commercial & Industrial Other Product Groups 3 28 Small Precision Motors Automotive Appliance, Commercial & Industrial 17 Other Product Groups Small Precision Motors Automotive Appliance, Commercial & Industrial 2 to 3 Other Product Groups This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 32

17 FY215 Sales and Profitability Targets by Product Category Small Precision Motors ( in Billions of Yen) Appliance, Commercial & Industrial (Operating Income in Billions of Yen) 4 to 6 FY11 FY12 FY13 FY14 FY15 FY2 (Target) 12 ( in Billions of Yen) 1T 1.T 4 Yen Automotive 3. Net sales Operating Income to T FY11 FY12 FY13 FY14 FY15 FY2-2. (Target) (Operating Income in Billions of Yen) Other Product Groups (Operating Income in (Operating Income in ( in Billions of Yen) Billions of Yen) ( in Billions of Yen) Billions of Yen) to FY11 FY12 FY13 FY14 FY15 FY2 (Target) to 3 FY11 FY12 FY13 FY14 FY15 FY2 -.6 This section includes forward-looking statements. See disclaimer on page 2 of this presentation. (Target)