NIDEC : Financial Results (April-December 2016)

NEWS RELEASE NIDEC CORPORATION

FOR IMMEDIATE RELEASE

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Masahiro Nagayasu General Manager Investor Relations

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UNAUDITED INTERIM FINANCIAL STATEMENTS (IFRS)

(English Translation)

RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2016 FROM APRIL 1, 2016 TO DECEMBER 31, 2016

CONSOLIDATED

Released on January 24, 2017

NIDEC CORPORATION

Stock Listings: Tokyo Stock Exchange

Head Office: Kyoto, Japan

Date of Filing of Japanese Quarterly Securities Report (Plan): February 13, 2017

1. Selected Consolidated Financial Performance Information for the Nine months Ended December 31, 2016 (IFRS) (unaudited)

2. Consolidated Results of Operations

   Yen in millions

   Nine months ended December 31 2016 2015

   Net sales 868,228 895,353

   Ratio of change from the same period of previous fiscal year (3.0)% -

   Operating profit 106,197 90,286

   Ratio of change from the same period of previous fiscal year 17.6% -

   Profit before income taxes 107,771 92,467

   Ratio of change from the same period of previous fiscal year 16.6% -

   Profit attributable to owners of the parent 81,638 69,526

   Ratio of change from the same period of previous fiscal year 17.4% -

   Comprehensive income for the period 94,610 54,178

   Ratio of change from the same period of previous fiscal year 74.6% -

   Yen

   Nine months ended December 31

   2016	2015
   Earnings per share attributable to owners of the parent -Basic	275.25	234.19
   Earnings per share attributable to owners of the parent -Diluted	275.25	233.05

   Note:

   Earnings per share attributable to owners of the parent -Basic and earnings per share attributable to owners of the parent -Diluted are calculated based on profit attributable to owners of the parent.

3. Consolidated Financial Position

4. Yen in millions

   December 31, 2016 March 31, 2016

   Total assets 1,491,335 1,376,636

   Total equity 842,314 771,369

   Total equity attributable to owners of the parent 833,337 763,023 Ratio of total equity attributable to owners of the parent to total assets 55.9% 55.4%

5. Dividends (unaudited)

   Year ending March 31, 2017 (target)

   Yen

   Year ended March 31, 2016 (actual)

   Interim dividend per share	40.00	40.00
   Year-end dividend per share	45.00	40.00
   Annual dividend per share	85.00	80.00

   Note: Revision of previously announced dividend targets during this reporting period: No

6. Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2017)

   Yen in millions

   Inc./Dec. ratio of change from the previous fiscal

   year

   Net sales 1,200,000 1.8%

   Operating profit 140,000 19.0%

   Profit before income taxes 140,000 19.5%

   Profit attributable to owners of the parent 105,000 16.7%

   Earnings per share attributable to owners of the parent -Basic (Yen) 354.01

   Note:

   Revision of the previously announced financial performance forecast during this reporting period: Yes

7. Others

8. Changes in significant subsidiaries (changes in "specified subsidiaries" (tokutei kogaisha) accompanying changes in the scope of consolidation) during this period: None

9. Changes in accounting policies:

10. Changes due to revisions to accounting standards: None

11. Changes due to other reasons: None

12. Changes in accounting estimates: None

13. Number of shares issued (common stock)

14. Number of shares issued at the end of each period (including treasury stock): 298,142,234 shares at December 31, 2016

    298,142,234 shares at March 31, 2016

15. Number of treasury stock at the end of each period: 1,543,676 shares at December 31, 2016

    1,541,210 shares at March 31, 2016

16. Weighted-average number of shares issued at the beginning and end of each period: 296,599,932 shares for the nine months ended December 31, 2016

17. 296,876,935 shares for the nine months ended December 31, 2015

    NIDEC adopts International Financial Reporting Standards ("IFRS") for its consolidated financial statements from the first quarter of the fiscal year ending March 31, 2017. Accordingly, the consolidated financial statements for the previous fiscal year and condensed quarterly consolidated financial statements for the nine months ended December 31, 2015 are also presented in accordance with IFRS.

    NIDEC finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2016. Consolidated financial statements for the previous fiscal year and condensed quarterly consolidated financial statements for the nine months ended December 31, 2015 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    Investor presentation materials relating to our financial results for the nine months ended December 31, 2016 are expected to be published on our corporate website on January 24, 2017.

    1. Operating and Financial Review and Prospects

    (1) Analysis of Operating Results

18. Overview of Business Environment for the Nine months ended December 31, 2016

    The U.S. economy continued to expand moderately for the nine months ended December 31, 2016, and Donald J. Trump's electoral win to be the next President of the United States in November raised expectations for a fiscal stimulus package by the Trump Administration and for the future of the American economy. In addition,

    a concurrent global stock market rally known as the "Trump rally" in major developed nations led to a slow economic recovery in Japan and Europe. On the other hand, close monitoring is required for the economic prospect of China and other emerging economies, which may be affected by the United States' trade policy, as well as for national elections slated for 2017 in Europe and Italian financial institutions' financial crisis, both of which may trigger a financial unrest in the continent.

    Under such a business environment, NIDEC (Nidec Corporation and its consolidated subsidiaries) continued to pursue our targets for the fiscal year ending March 31, 2021 of consolidated net sales of ¥2 trillion and an operating profit ratio of 15% based on our mid-term strategic goal, "Vision 2020," and achieved in the nine months ended December 31, 2016 the highest nine-month operating profit, profit before income taxes and profit for the period in our history.

19. Consolidated Operating Results

NIDEC adopts International Financial Reporting Standards ("IFRS") for its consolidated financial statements instead of U.S. GAAP from the first quarter of the fiscal year ending March 31, 2017. Accordingly, the consolidated financial statements for the fiscal year ended March 31, 2016 are presented in accordance with IFRS for comparative analysis.

Consolidated Operating Results for the nine months ended December 31, 2016 ("this nine-month period")

Yen in millions

Nine months ended December 31, 2015	Nine months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales	895,353	868,228	(27,125)	(3.0)%
Operating profit	90,286	106,197	15,911	17.6%
Operating profit ratio	10.1%	12.2%	-	-
Profit before income taxes	92,467	107,771	15,304	16.6%
Profit attributable to owners of the parent	69,526	81,638	12,112	17.4%

Consolidated net sales decreased 3.0% to ¥868,228 million for this nine-month period compared to the same period of the prior year due to a rapid appreciation of the Japanese yen. On the other hand, operating profit increased 17.6% to ¥106,197 million for this nine-month period compared to the same period of the prior year, achieving the highest operating profit for nine-month period in our history. The average exchange rate between the Japanese yen and the U.S. dollar for this nine-month period was ¥106.63 to the U.S. dollar, which reflected an appreciation of the Japanese yen against the U.S. dollar of approximately 12%, compared to the same period of the prior year. The average exchange rate between the Japanese yen and the Euro for this nine-month period was ¥118.02 to the Euro, which reflected an appreciation of the Japanese yen against the Euro of approximately 12% compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on our

net sales of approximately ¥101,000 million and our operating profit of approximately ¥15,700 million for this nine-month period compared to the same period of the prior year.

Profit before income taxes increased16.6% to ¥107,771 million for this nine-month period compared to the same period of the prior year and profit attributable to owners of the parent increased 17.4% to ¥81,638 million for this nine-month period compared to the same period of the prior year, respectively achieving the highest profit for nine-month period in our history.

Operating Results by Product Category for this nine-month period Compared to the same period of the prior year

Small precision motors-

Yen in millions

Nine months	Nine months	Increase or	Increase
ended	ended		or
December 31,	December 31,	decrease	decrease
2015	2016		ratio
Net sales of small precision motors		352,077	330,866	(21,211)	(6.0)%
Hard disk drives spindle motors	162,454	144,040	(18,414)	(11.3)%
Other small precision motors	189,623	186,826	(2,797)	(1.5)%
Operating profit of small precision motors		53,149	52,136	(1,013)	(1.9)%
Operating profit ratio		15.1%	15.8%	-	-

Net sales of small precision motors decreased 6.0% to ¥330,866 million for this nine-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on our net sales of small precision motors of approximately ¥37,900 million for this nine-month period compared to the same period of the prior year.

Net sales of spindle motors for hard disk drives, or HDDs, for this nine-month period decreased 11.3% to

¥144,040 million compared to the same period of the prior year. Although the number of units sold of spindle motors for HDDs remained unchanged compared to the same period of the prior year, there were decreases in sales due to a negative effect of the foreign currency exchange rate fluctuations.

Net sales of other small precision motors for this nine-month period decreased 1.5% to ¥186,826 million compared to the same period of the prior year. This decrease was mainly due to decreases in sales of brushless DC motors and fan motors.

Operating profit of small precision motors decreased 1.9% to ¥52,136 million for this nine-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on our operating profit of small precision motors of approximately ¥9,000 million for this nine-month period compared to the same period of the prior year.

Automotive, appliance, commercial and industrial products-

Yen in millions

Nine months ended December 31, 2015	Nine months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of automotive, appliance, commercial and industrial products		411,031	400,709	(10,322)	(2.5)%
Appliance, commercial and industrial products	208,082	209,904	1,822	0.9%
Automotive products	202,949	190,805	(12,144)	(6.0)%
Operating profit of automotive, appliance, commercial and industrial products		31,607	42,173	10,566	33.4%
Operating profit ratio		7.7%	10.5%	-	-

Net sales of automotive, appliance, commercial and industrial products decreased 2.5% to ¥400,709 million for this nine-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on our net sales of automotive, appliance, commercial and industrial products of approximately ¥52,100 million for this nine-month period compared to the same period of the prior year.

Net sales of appliance, commercial and industrial products for this nine-month period increased 0.9% compared to the same period of the prior year. This increase was primarily due to the increase in sales through our "Three-new Strategy" (new products, new markets and new clients), although there was a negative effect of the foreign currency exchange rate fluctuations.

Net sales of automotive products for this nine-month period decreased 6.0% compared to the same period of the prior year due to a negative effect of the foreign currency exchange rate fluctuations, although there were increases in sales for automotive motors such as electric power steering motors and products of control valves at Nidec Tosok Corporation.

Operating profit of automotive, appliance, commercial and industrial products increased 33.4% to ¥42,173 million for this nine-month period compared to the same period of the prior year mainly due to cost reduction and changes in product mix. The fluctuations of the foreign currency exchange rates had a negative effect on our operating profit of automotive, appliance, commercial and industrial products of approximately ¥6,200 million for this nine-month period compared to the same period of the prior year.

Machinery-

Yen in millions

Nine months ended December 31, 2015	Nine months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of machinery	80,245	86,610	6,365	7.9%
Operating profit of machinery	11,817	15,802	3,985	33.7%
Operating profit ratio	14.7%	18.2%	-	-

Net sales of machinery increased 7.9% to ¥86,610 million for this nine-month period compared to the same period of the prior year due to the contribution of the newly consolidated companies and the increases in sales of LCD panel or Organic EL handling robots at Nidec Sankyo Corporation, although there was a negative effect of the foreign currency exchange rate fluctuations.

Operating profit of machinery increased 33.7% to ¥15,802 million for this nine-month period compared to the same period of the prior year due to the contributions of the newly consolidated companies and the increase in sales of LCD panel or Organic EL handling robots.

Electronic and optical components-

Yen in millions

Nine months ended December 31, 2015	Nine months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of electronic and optical components	49,264	47,307	(1,957)	(4.0)%
Operating profit of electronic and optical components	4,545	7,782	3,237	71.2%
Operating profit ratio	9.2%	16.4%	-	-

Net sales of electronic and optical components decreased 4.0% to ¥47,307 million and operating profit of electronic and optical components increased 71.2% to ¥7,782 million for this nine-month period compared to the same period of the prior year.

Other products-

Yen in millions

Nine months ended December 31, 2015	Nine months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of other products	2,736	2,736	(0)	(0.0)%
Operating profit of other products	390	443	53	13.6%
Operating profit ratio	14.3%	16.2%	-	-

Net sales of other products was ¥2,736 million and operating profit of other products increased 13.6% to

¥443 million for this nine-month period compared to the same period of the prior year.

Consolidated Operating Results for the Three Months Ended December 31, 2016 ("this 3Q"), Compared to the Three Months Ended September 30, 2016 ("the previous 2Q")

Yen in millions

Three months ended September 30, 2016	Three months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales	287,824	304,198	16,374	5.7%
Operating profit	37,464	37,193	(271)	(0.7)%
Operating profit ratio	13.0%	12.2%	-	-
Profit before income taxes	37,190	41,478	4,288	11.5%
Profit attributable to owners of the parent	28,069	31,528	3,459	12.3%

Consolidated net sales increased 5.7% to ¥304,198 million for this 3Q compared to the previous 2Q. Operating profit decreased 0.7% to ¥37,193 million for this 3Q compared to the previous 2Q.

The average exchange rate between the Japanese yen and the U.S. dollar for this 3Q was ¥109.30 to the U.S.

dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of approximately 7%, compared to the previous 2Q. The average exchange rate between the Japanese yen and the Euro for this 3Q was ¥117.78 to the

Euro, which reflected a depreciation of the Japanese yen against the Euro of approximately 3%, compared to the previous 2Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of approximately ¥12,400 million as well as on our operating profit of approximately ¥2,400 million for this 3Q compared to the previous 2Q.

Profit before income taxes increased 11.5% to ¥41,478 million for this 3Q compared to the previous 2Q and profit attributable to owners of the parent increased 12.3% to ¥31,528 million for this 3Q compared to the previous 2Q, respectively achieving the highest quarterly profit in our history.

Operating Results by Product Category for This 3Q Compared to The previous 2Q

Small precision motors-

Yen in millions

Three months	Three months	Increase or	Increase
ended	ended		or
September 30,	December 31,	decrease	decrease
2016	2016		ratio
Net sales of small precision motors		116,915	119,150	2,235	1.9%
Hard disk drives spindle motors	47,567	53,674	6,107	12.8%
Other small precision motors	69,348	65,476	(3,872)	(5.6)%
Operating profit of small precision motors		19,219	19,169	(50)	(0.3)%
Operating profit ratio		16.4%	16.1%	-	-

Net sales of small precision motors increased 1.9% to ¥119,150 million for this 3Q compared to the previous 2Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors of approximately ¥5,300 million for this 3Q compared to the previous 2Q.

Net sales of spindle motors for HDDs increased 12.8% to ¥53,674 million for this 3Q compared to the previous 2Q. The number of units sold of spindle motors for HDDs for this 3Q increased approximately 4.5% compared to the previous 2Q.

Net sales of other small precision motors for this 3Q decreased 5.6% to ¥65,476 million compared to the previous 2Q. This decrease was due to decreases in sales of other small motors.

Operating profit of small precision motors slightly decreased to ¥19,169 million for this 3Q compared to the previous 2Q. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of small precision motors of approximately ¥1,700 million for this 3Q compared to the previous 2Q.

Automotive, appliance, commercial and industrial products-

Yen in millions

Three months ended September 30, 2016	Three months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of automotive, appliance, commercial and industrial products		127,395	135,064	7,669	6.0%
Appliance, commercial and industrial products	67,324	68,323	999	1.5%
Automotive products	60,071	66,741	6,670	11.1%
Operating profit of automotive, appliance, commercial and industrial products		14,158	14,185	27	0.2%
Operating profit ratio		11.1%	10.5%	-	-

Net sales of automotive, appliance, commercial and industrial products increased 6.0% to ¥135,064 million for this 3Q compared to the previous 2Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of automotive, appliance, commercial and industrial products of approximately ¥5,700 million for this 3Q compared to the previous 2Q.

Net sales of appliance, commercial and industrial products for this 3Q increased 1.5% compared to the previous 2Q mainly due to the positive effect of the foreign currency exchange rate fluctuations.

Net sales of automotive products for this 3Q increased 11.1% compared to the previous 2Q. This increase was due to the positive effect of the foreign currency exchange rate fluctuations and increases in sales for automotive motors such as electric power steering motors.

Operating profit of automotive, appliance, commercial and industrial products increased 0.2% to ¥14,185 million for this 3Q compared to the previous 2Q mainly due to the increase in sales. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of automotive, appliance, commercial and industrial products of approximately ¥500 million for this 3Q compared to the previous 2Q.

Machinery-

Yen in millions

Three months ended September 30, 2016	Three months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of machinery	26,738	32,726	5,988	22.4%
Operating profit of machinery	5,305	5,602	297	5.6%
Operating profit ratio	19.8%	17.1%	-	-

Net sales of machinery increased 22.4% to ¥32,726 million for this 3Q compared to the previous 2Q due to the increase in sales of LCD panel handling robots at Nidec Sankyo Corporation.

Operating profit of machinery increased 5.6% to ¥5,602 million for this 3Q compared to the previous 2Q mainly due to increases in sales, despite a negative effect of changes in product mix.

Electronic and optical components-

Yen in millions

Three months ended September 30, 2016	Three months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of electronic and optical components	15,871	16,275	404	2.5%
Operating profit of electronic and optical components	2,768	2,904	136	4.9%
Operating profit ratio	17.4%	17.8%	-	-

Net sales of electronic and optical components increased 2.5% to ¥16,275 million for this 3Q compared to the previous 2Q.

Operating profit of electronic and optical components increased 4.9% to ¥2,904 million for this 3Q compared to the previous 2Q.

Other products-

Yen in millions

Three months ended September 30, 2016	Three months ended December 31, 2016	Increase or decrease	Increase or decrease ratio
Net sales of other products	905	983	78	8.6%
Operating profit of other products	153	156	3	2.0%
Operating profit ratio	16.9%	15.9%	-	-

Net sales of other products increased 8.6% to ¥983 million for this 3Q compared to the previous 2Q. Operating profit of other products increased 2.0% to ¥156 million for this 3Q compared to the previous 2Q.

(2) Financial Position

Yen in millions

As of March 31, 2016	As of December 31, 2016	Increase or decrease
Total assets	1,376,636	1,491,335	114,699
Total liabilities	605,267	649,021	43,754
Total equity attributable to owners of the parent	763,023	833,337	70,314
Interest-bearing debt *1	300,667	280,994	(19,673)
Net interest-bearing debt *2	(5,275)	(33,819)	(28,544)
Debt ratio *3	21.8%	18.8%	(3.0)%
Debt to equity ratio ("D/E ratio") (times) *4	0.39	0.34	(0.05)
Net D/E ratio (times) *5	(0.01)	(0.04)	(0.03)
Ratio of total equity attributable to owners of the parent to	55.4%	55.9%	0.5%
total assets *6

Notes:

*1: The sum of "short term borrowings," "long term debt due within one year" and "long term debt" in our consolidated statement of financial position

*2: "Interest-bearing debt" less "cash and cash equivalents"

*3: "Interest-bearing debt" divided by "total assets"

*4: "Interest-bearing debt" divided by "total equity attributable to owners of the parent"

*5: "Net interest-bearing debt" divided by "total equity attributable to owners of the parent"

*6: "Total equity attributable to owners of the parent" divided by "total assets"

Total assets increased approximately ¥114,700 million to ¥1,491,335 million as of December 31, 2016 compared to March 31, 2016. This increase was mainly due to an increase of approximately ¥64,200 million in trade and other receivables, an increase of approximately ¥17,100 million in property, plant, and equipment and an increase of approximately ¥14,000 million in inventories.

Total liabilities increased approximately ¥43,800 million to ¥649,021 million as of December 31, 2016 compared to March 31, 2016. Our trade and other payables increased approximately ¥51,500 million. On the other hand, our interest-bearing debt decreased approximately ¥19,700 million. Specifically, our short term borrowings decreased approximately ¥19,200 million to approximately ¥61,900 million, our long term debt due within one year increased approximately ¥19,800 million to approximately ¥102,600 million, and our long term debt decreased approximately ¥20,300 million to approximately ¥116,500 million as of December 31, 2016 compared to March 31, 2016. The increase of ¥19,800 million in our long term debt due within one year was mainly attributable to a reclassification of approximately ¥65,000 million aggregate principal amount of first series unsecured bonds (ranking pari passu with the other series of unsecured straight bonds) (hereafter referred to as first series unsecured bonds) issued in November 2012 from non-current liability to current liability as the bonds matured within one year, despite a decrease of approximately ¥50,000 million due to the redemption of fourth series unsecured bonds (ranking pari passu with the other series of unsecured straight bonds) issued in December 2013. The decrease of ¥20,300 million in our long-term debt was mainly attributable to the reclassification of approximately ¥65,000 million aggregate principal amount of first series unsecured bonds from non-current liability to current liability, despite an increase of approximately ¥50,000 million due to the issue of fifth series unsecured bonds (ranking pari passu with the other series of unsecured straight bonds) in November 2016.

As a result, our net interest-bearing debt decreased to approximately negative ¥33,800 million as of December 31, 2016 from approximately negative ¥5,300 million as of March 31, 2016. Our debt ratio decreased to 18.8% as of December 31, 2016 from 21.8% as of March 31, 2016. Our D/E ratio decreased to 0.34 as of December

31, 2016 from 0.39 as of March 31, 2016. Our net D/E ratio improved to negative 0.04 as of December 31, 2016

compared to negative 0.01 as of March 31, 2016.

Total equity attributable to owners of the parent increased approximately ¥70,300 million to ¥833,337 million as of December 31, 2016 compared to March 31, 2016. Ratio of total equity attributable to owners of the parent to total assets increased to 55.9% as of December 31, 2016 from 55.4% as of March 31, 2016. The increase of ratio of total equity attributable to owners of the parent to total assets was mainly due to an increase in retained earnings of approximately ¥60,100 million as of December 31, 2016 compared to March 31, 2016, and an increase in other components of equity of approximately ¥10,200 million caused by exchange differences related to foreign operations.

Overview of Cash Flow-

Nine months ended December 31

2015 2016

Yen in millions Increase or decrease

Net cash provided by operating activities	113,480	102,996	(10,484)
Net cash used in investing activities	(79,337)	(56,929)	22,408
Free cash flow *1	34,143	46,067	11,924
Net cash provided by (used in) financing activities	27,773	(40,975)	(68,748)

Note:

*1: Free cash flow is the sum of "net cash provided by operating activities" and "net cash used in investing activities."

Cash flows from operating activities for the nine months ended December 31, 2016 ("this nine-month period") were a net cash inflow of ¥102,996 million. Compared to the nine months ended December 31, 2015 ("the same period of the previous year"), our cash inflow from operating activities for this nine-month period decreased approximately ¥10,500 million. This decrease was mainly due to an increase of approximately ¥41,700 million in accounts receivable, although there were increases of approximately ¥31,300 million in account payable and approximately ¥11,800 million of profit for the period.

Cash flows from investing activities for this nine-month period were a net cash outflow of ¥56,929 million. Compared to the same period of the previous year, our net cash outflow from investing activities for this nine-month period decreased approximately ¥22,400 million mainly due to decreases in additions to property, plant and equipment of approximately ¥19,400 million.

As a result, we had a positive free cash flow of ¥46,067 million for this nine-month period, an increase of approximately ¥11,900 million compared to a positive free cash flow of ¥34,143 million for the same period of the previous year.

Cash flows from financing activities for this nine-month period were a net cash outflow of ¥40,975 million. Compared to the same period of the previous year, our net cash outflow from financing activities for this nine-month period increased approximately ¥68,700 million mainly due to an increase in net cash outflow from short term borrowings of approximately ¥84,300 million and outflow from redemption of corporate bonds of approximately

¥50,000 million. On the other hand, inflow from proceeds from issuance of corporate bonds increased of approximately ¥50,000 million and outflow form repayments of long term debt decreased approximately ¥21,400 million.

As a result of the foregoing and the impact of foreign exchange fluctuations of approximately positive

¥3,800 million, the balance of cash and cash equivalents as of December 31, 2016 was ¥314,813 million, an increase of approximately ¥8,900 million from March 31, 2016.

(3) Business Forecasts for the Fiscal Year ending March 31, 2017

Regarding global economic trends, we expect that, while a continuous economic recovery driven by fiscal policy of the United States is anticipated, close monitoring is required for the economic prospect of China and other emerging economies, which may be affected by the United States' trade policy, as well as for national elections slated for 2017 in Europe and Italian financial institutions' financial crisis, both of which may trigger a financial unrest in the continent.

We are revising our business performance forecast as follows since our sales and profits for the nine months ended December 31, 2016 are more than our expectations underlying our previous forecast. Also, in light of the recent depreciation of the Japanese yen, the average exchange rates used for the below forecasts are reset at ¥110 from previous ¥100 for US$1 and ¥117 from previous ¥110 for €1.

Forecast of consolidated results for the fiscal year ending March 31, 2017

Net sales Operating profit	¥1,200,000 million ¥140,000 million	(Up 1.8% from the previous fiscal year) (Up 19.0% from the previous fiscal year)
Profit before income taxes Profit attributable to owners of the parent	¥140,000 million ¥105,000 million	(Up 19.5% from the previous fiscal year) (Up 16.7% from the previous fiscal year)

Note:

1. Consolidated results are based on IFRS.

2. The exchange rates used for the preparation of the foregoing forecasts are US$1 = ¥110 and €1 = ¥117. The exchange rates between the relevant Asian currencies and the Japanese yen used for the preparation of the foregoing forecasts were determined assuming these exchange rates.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to it. The Nidec Group cannot make any assurances that the expectations expressed in these forward-looking statements will prove to be correct. Actual results could be materially different from and worse than the Nidec Group's expectations as a result of various factors.

Percentage changes from the previous fiscal year are calculated by the previous year amounts which have been reflected the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2016.

2. Others

1. Changes in significant subsidiaries during this period

   None

2. Changes in accounting policy or estimate

None

3. Condensed Quarterly Consolidated Financial Statements

1. Condensed Quarterly Consolidated Statements of Financial Position

   The date of transition to IFRS (April 1, 2015)		March 31, 2016		December 31, 2016		Increase or decrease
   Amounts	%	Amounts	%	Amounts	%
   Assets	Yen in millions	Yen in millions	Yen in millions	Yen in millions
   Current assets
   Cash and cash equivalents	269,902	305,942	314,813	8,871
   Trade and other receivables	255,470	251,310	315,523	64,213
   Other financial assets	262	2,010	5,241	3,231
   Income tax receivables	1,551	2,063	2,756	693
   Inventories	170,880	170,874	184,901	14,027
   Other current assets	20,018	22,892	25,966	3,074
   Total current assets	718,083	53.2	755,091	54.9	849,200	56.9	94,109
   Non-current assets
   Property, plant, and equipment	342,556		346,932		364,074		17,142
   Goodwill	162,959		162,043		164,300		2,257
   Intangible assets	83,931		77,049		74,811		(2,238)
   Investments accounted for using the equity method	2,167		1,896		1,137		(759)
   Other investments	21,507		15,998		19,276		3,278
   Other financial assets	2,274		1,804		3,030		1,226
   Deferred tax assets	10,749		11,545		10,718		(827)
   Other non-current assets	5,646		4,278		4,789		511
   Total non-current assets	631,789	46.8	621,545	45.1	642,135	43.1	20,590
   Total assets	1,349,872	100.0	1,376,636	100.0	1,491,335	100.0	114,699

   The date of transition to IFRS (April 1, 2015)		March 31, 2016		December 31, 2016		Increase or decrease
   Amounts	%	Amounts	%	Amounts	%
   Liabilities	Yen in millions	Yen in millions	Yen in millions	Yen in millions
   Current liabilities
   Short term borrowings	52,401	81,092	61,919	(19,173)
   Long term debt due within one year	45,432	82,777	102,618	19,841
   Trade and other payables	204,372	186,990	238,486	51,496
   Other financial liabilities	2,941	3,192	4,436	1,244
   Income tax payables	5,913	5,831	6,109	278
   Provisions	18,583	18,886	16,448	(2,438)
   Other current liabilities	31,151	40,891	45,531	4,640
   Total current liabilities	360,793	26.7	419,659	30.5	475,547	31.9	55,888
   Non-current liabilities
   Long term debt	184,432		136,798		116,457		(20,341)
   Other financial liabilities	569		1,029		931		(98)
   Retirement benefit liabilities	19,834		19,488		19,665		177
   Provisions	2,904		3,337		3,355		18
   Deferred tax liabilities	23,467		22,641		30,963		8,322
   Other non-current liabilities	3,126		2,315		2,103		(212)
   Total non-current liabilities	234,332	17.4	185,608	13.5	173,474	11.6	(12,134)
   Total liabilities	595,125	44.1	605,267	44.0	649,021	43.5	43,754
   Equity
   Common stock	77,071	5.7	87,784	6.4	87,784	5.9	-
   Additional paid-in capital	107,732	8.0	118,341	8.6	118,336	7.9	(5)
   Retained earnings	562,787	41.7	625,168	45.4	685,272	46.0	60,104
   Other components of equity	(1,072)	(0.1)	(56,159)	(4.1)	(45,921)	(3.1)	10,238
   Treasury stock	(27)	(0.0)	(12,111)	(0.9)	(12,134)	(0.8)	(23)
   Total equity attributable to owners of the parent	746,491	55.3	763,023	55.4	833,337	55.9	70,314
   Non-controlling interests	8,256	0.6	8,346	0.6	8,977	0.6	631
   Total equity	754,747	55.9	771,369	56.0	842,314	56.5	70,945
   Total liabilities and equity	1,349,872	100.0	1,376,636	100.0	1,491,335	100.0	114,699

2. Condensed Quarterly Consolidated Statements of Income

   and Condensed Quarterly Consolidated Statements of Comprehensive Income

   For the nine months ended December 31, 2015 and 2016 Condensed Quarterly Consolidated Statements of Income

   Nine months ended December 31				Increase or decrease
   2015		2016
   Amounts	%	Amounts	%	Amounts	%
   Net sales Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Operating profit Financial income Financial expenses Derivative gain Foreign exchange differences Equity in net income (loss) of associates Profit before income taxes Income tax expenses Profit for the period Profit attributable to: Owners of the parent Non-controlling interests Profit for the period	Yen in millions 895,353 (691,924)	100.0 (77.3)	Yen in millions 868,228 (658,992)	100.0 (75.9)	Yen in millions (27,125) 32,932	(3.0) (4.8)
   	203,429	22.7	209,236	24.1	5,807	2.9
   	(73,436) (39,707)	(8.2) (4.4)	(64,279) (38,760)	(7.4) (4.5)	9,157 947	(12.5) (2.4)
   	90,286	10.1	106,197	12.2	15,911	17.6
   	1,307 (1,301) 161 2,010 4	0.1 (0.1) 0.0 0.2 0.0	2,276 (1,811) 1,246 405 (542)	0.3 (0.2) 0.1 0.1 (0.1)	969 (510) 1,085 (1,605) (546)	74.1 39.2 673.9 (79.9) -
   	92,467	10.3	107,771	12.4	15,304	16.6
   	(21,904)	(2.4)	(25,434)	(2.9)	(3,530)	16.1
   	70,563	7.9	82,337	9.5	11,774	16.7
   	69,526 1,037	7.8 0.1	81,638 699	9.4 0.1	12,112 (338)	17.4 (32.6)
   	70,563	7.9	82,337	9.5	11,774	16.7

   Year ended March 31, 2016
   Amounts	%
   Yen in millions 1,178,290 (909,953)	100.0 (77.2)
   268,337	22.8
   (98,697) (51,978)	(8.4) (4.4)
   117,662	10.0
   1,913 (2,410) 151 (153) 1	0.2 (0.3) 0.0 (0.0) 0.0
   117,164	9.9
   (26,166)	(2.2)
   90,998	7.7
   89,945 1,053	7.6 0.1
   90,998	7.7
   Year ended March 31, 2016
   Amounts
   Yen in millions 90,998
   (941) (2,909) (56,190) 326 (6)
   (59,720)
   31,278
   30,983 295
   31,278

   Condensed Quarterly Consolidated Statements of Comprehensive Income

   Nine months ended December 31		Increase or decrease
   2015	2016
   Amounts	Amounts	Amounts	%
   Profit for the period Other comprehensive income, net of taxation Items that will not be reclassified to net profit or loss: Remeasurement of defined benefit plans Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss: Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges Fair value movements on FVTOCI debt financial assets Other comprehensive income for the period, net of taxation Comprehensive income for the period Comprehensive income attributable to: Owners of the parent Non-controlling interests Comprehensive income for the period	Yen in millions 70,563	Yen in millions 82,337	Yen in millions 11,774	16.7
   	8	(182)	(190)	-
   	(1,161)	2,367	3,528	-
   	(14,645)	9,896	24,541	-
   	(579)	194	773	-
   	(8)	(2)	6	-
   	(16,385)	12,273	28,658	-
   	54,178	94,610	40,432	74.6
   	53,513	94,069	40,556	75.8
   	665	541	(124)	(18.6)
   	54,178	94,610	40,432	74.6

   For the three months ended December 31, 2015 and 2016

   Condensed Quarterly Consolidated Statements of Income

   Three months ended December 31				Increase or decrease
   2015		2016
   Amounts	%	Amounts	%	Amounts	%
   Net sales Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Operating profit Financial income Financial expenses Derivative gain Foreign exchange differences Equity in net loss of associates Profit before income taxes Income tax expenses Profit for the period Profit attributable to: Owners of the parent Non-controlling interests Profit for the period	Yen in millions 308,001 (238,560)	100.0 (77.5)	Yen in millions 304,198 (230,445)	100.0 (75.8)	Yen in millions (3,803) 8,115	(1.2) (3.4)
   	69,441	22.5	73,753	24.2	4,312	6.2
   	(24,472) (14,286)	(7.9) (4.6)	(23,402) (13,158)	(7.7) (4.3)	1,070 1,128	(4.4) (7.9)
   	30,683	10.0	37,193	12.2	6,510	21.2
   	410 (406) 46 (412) (1)	0.1 (0.1) 0.0 (0.2) (0.0)	944 (653) 3,941 578 (525)	0.3 (0.2) 1.3 0.2 (0.2)	534 (247) 3,895 990 (524)	130.2 60.8 - - -
   	30,320	9.8	41,478	13.6	11,158	36.8
   	(7,176)	(2.3)	(9,657)	(3.1)	(2,481)	34.6
   	23,144	7.5	31,821	10.5	8,677	37.5
   	22,669 475	7.4 0.1	31,528 293	10.4 0.1	8,859 (182)	39.1 (38.3)
   	23,144	7.5	31,821	10.5	8,677	37.5

   Condensed Quarterly Consolidated Statements of Comprehensive Income

   Three months ended December 31		Increase or decrease
   2015	2016
   Amounts	Amounts	Amounts	%
   Profit for the period Other comprehensive income, net of taxation Items that will not be reclassified to net profit or loss: Remeasurement of defined benefit plans Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss: Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges Fair value movements on FVTOCI debt financial assets Other comprehensive income for the period, net of taxation Comprehensive income for the period Comprehensive income attributable to: Owners of the parent Non-controlling interests Comprehensive income for the period	Yen in millions 23,144	Yen in millions 31,821	Yen in millions 8,677	37.5
   	80	(72)	(152)	-
   	675	2,022	1,347	199.6
   	140	86,754	86,614	-
   	62	73	11	17.7
   	4	(3)	(7)	-
   	961	88,774	87,813	-
   	24,105	120,595	96,490	400.3
   	23,513	119,780	96,267	409.4
   	592	815	223	37.7
   	24,105	120,595	96,490	400.3

3. Condensed Quarterly Consolidated Statements of Changes in Equity

Nine months ended December 31, 2015

Total equity attributable to owners of the parent						Non- controlling interests	Total equity
Common Stock	Additional paid-in capital	Retained earnings	Other components of equity	Treasury stock	Total
As of April 1, 2015	Yen in millions 77,071	Yen in millions 107,732	Yen in millions 562,787 69,526	Yen in millions	Yen in millions	Yen in millions	Yen in millions 8,256 1,037 (372)	Yen in millions
				(1,072)	(27)	746,491		754,747
Comprehensive income
Profit for the period				69,526		70,563
Other comprehensive income				(16,013)		(16,013)		(16,385)
Total comprehensive income	10,713	10,620	(23,690)	1,179	(34)	53,513	665	54,178
Transactions with owners directly						(34)	-	(34)
recognized in equity:
Purchase of treasury stock
Conversion of convertible bonds					23	21,356	-	21,356
Dividends paid to the owners of the parent		(23,690)			-	(23,690)
Dividends paid to non-controlling interests		-	(67)		(67)
Transfer to retained earnings		(1,179)	-		-	-
Other			39	(1)	(1)	37	(151)	(114)
As of December 31, 2015	87,784	118,391	607,444	(15,907)	(39)	797,673	8,703	806,376

Nine months ended December 31, 2016

Total equity attributable to owners of the parent						Non- controlling interests	Total equity
Common Stock	Additional paid-in capital	Retained earnings	Other components of equity	Treasury stock	Total
As of April 1, 2016	Yen in millions 87,784	Yen in millions 118,341	Yen in millions 625,168 81,638	Yen in millions (56,159) 12,431	Yen in millions	Yen in millions	Yen in millions 8,346 699 (158)	Yen in millions
					(12,111)	763,023		771,369
Comprehensive income
Profit for the period						81,638		82,337
Other comprehensive income						12,431		12,273
Total comprehensive income	(5)	(23,728)	(2,194)	(23)	94,069	541	94,610
Transactions with owners directly					(23)	-	(23)
recognized in equity:
Purchase of treasury stock
Dividends paid to the owners of the parent					(23,728)	-	(23,728)
Dividends paid to non-controlling interests		-			(18)	(18)
Transfer to retained earnings		2,194			-	-	-
Other			1		(4)	108	104
As of December 31, 2016	87,784	118,336	685,272	(45,921)	(12,134)	833,337	8,977	842,314

(4) Condensed Quarterly Consolidated Statements of Cash Flows

Yen in millions
Nine months ended December 31		Increase or decrease
2015	2016
Cash flows from operating activities: Profit for the period Adjustments to reconcile profit for the period to net cash provided by operating activities Depreciation and amortization Gain from sales, disposal or impairment of property, plant and equipment Financial (income) loss Equity in net (income) loss of associates Deferred income taxes Current income taxes Foreign currency adjustments (Decrease) increase in retirement benefit liability Increase in accounts receivable Increase in inventories Increase (decrease) in accounts payable Other, net Interests and dividends received Interests paid Income taxes paid	70,563	82,337	11,774
	50,651	44,368	(6,283)
	(355)	(1,263)	(908)
	(50)	(504)	(454)
	(4)	542	546
	3,850	5,933	2,083
	18,054	19,501	1,447
	983	(346)	(1,329)
	(111)	283	394
	(12,710)	(54,456)	(41,746)
	(13,971)	(11,834)	2,137
	10,837	42,103	31,266
	4,625	(3,904)	(8,529)
	1,333	2,064	731
	(1,196)	(1,846)	(650)
	(19,019)	(19,982)	(963)
Net cash provided by operating activities	113,480	102,996	(10,484)
Cash flows from investing activities:	(66,856)	(47,505)	19,351
Additions to property, plant and equipment
Proceeds from sales of property, plant and equipment	1,184	1,423	239
Proceeds from sales or redemption of marketable securities	1,313	224	(1,089)
Acquisitions of business, net of cash acquired	(9,711)	(5,703)	4,008
Other, net	(5,267)	(5,368)	(101)
Net cash used in investing activities	(79,337)	(56,929)	22,408
Cash flows from financing activities:	69,182	(15,148)	(84,330)
Increase (decrease) in short term borrowings
Repayments of long term debt	(23,818)	(2,404)	21,414
Proceeds from issuance of corporate bonds	-	50,001	50,001
Redemption of corporate bonds	-	(50,000)	(50,000)
Purchase of treasury stock	(34)	(23)	11
Dividends paid to the owner of the parent	(23,690)	(23,728)	(38)
Other, net	6,133	327	(5,806)
Net cash provided by (used in) financing activities	27,773	(40,975)	(68,748)
Effect of exchange rate changes on cash and cash equivalents	(6,887)	3,779	10,666
Net increase in cash and cash equivalents	55,029	8,871	(46,158)
Cash and cash equivalents at beginning of period	269,902	305,942	36,040
Cash and cash equivalents at end of period	324,931	314,813	(10,118)

Yen in millions
Year ended March 31
2016
90,998 64,950 (155) 420 (1) 2,148 24,019 (368) 217 (5,163) (6,176) (6,897) 8,028 1,904 (1,797) (24,468)
147,659
(81,898) 1,417 1,319 (9,665) (6,550)
(95,377)
32,412 (26,210) - - (12,133) (23,690) 37,396
7,775
(24,017)
36,040
269,902
305,942

(5) Notes to Condensed Quarterly Consolidated Financial Statements

Notes Regarding Going Concern Assumption

Not applicable.

Notes to Condensed Quarterly Consolidated Financial Statements

1. Reporting entity

   Nidec Corporation (the Company) is a corporation located in Japan, whose shares are listed on the Tokyo Stock Exchange. The registered address of headquarters and principal business offices are available on the Company's website (http://www.nidec.com/en-Global/).

   Condensed Quarterly Consolidated Financial Statements as of December 31, 2016 consist of the Company and its consolidated subsidiaries (NIDEC), and shares of associates of NIDEC.

   NIDEC mainly designs, develops, produces, and sells products as described below:

2. Small precision motors, which include spindle motors for hard disk drives, brushless motors, fan motors, vibration motors, brush motors and motor applications.

3. Automotive, appliance, commercial and industrial products, which includes automotive motors and components, home appliance, commercial and industrial motors and related products.

4. Machinery, which includes industrial robots, card readers, test systems, pressing machines and power transmission drives.

5. Electronic and optical components, which include switches, trimmer potentiometers, lens units and camera shutters.

6. Others, which include services.

7. Basis of Preparation

8. Compliance with International Financial Reporting Standards (IFRS)

   The condensed quarterly consolidated financial statements of NIDEC have been prepared in accordance with IAS 34 "Interim Financial Reporting" pursuant to the provision of article 93 of Regulations for Quarterly Consolidated Financial Statements, as the Company meets the criteria of a "Designated IFRS Specified Company" defined under article 1-2 of the regulations.

   NIDEC adopts IFRS for the first time this financial year (commencing on April 1, 2016 and ending on March 31, 2017), and so the annual consolidated financial statements for the year are the first ones prepared in conformity with IFRS. The date of transition of NIDEC to IFRS is April 1, 2015. Explanations of how the first time adoption of, and the transition to, IFRS have affected NIDEC's financial position, business results and cash flows are provided in "Note 6. First-Time Adoption of IFRS".

9. Basis of measurement

   The condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for some assets and liabilities, including derivative and other financial instruments measured at fair value.

10. Presentation currency and level of rounding

    The condensed quarterly consolidated financial statements are presented in Japanese Yen, which is also the Company's functional currency, and figures are rounded to the nearest million yen, except as otherwise indicated.

11. Early adoption of new IFRS standards

12. NIDEC has early adopted IFRS 9 "Financial instruments" (amended in July 2014).

13. Significant accounting policies

    Significant accounting policies are applied to all periods mentioned in the condensed quarterly consolidated financial statements, including the consolidated statement of financial position on the transition date of IFRS.

    Significant accounting policies are stated in notes to NIDEC's condensed quarterly consolidated financial statements for the three months ended June 30, 2016.

14. Significant accounting estimates, judgments and assumptions

    The preparation of the condensed quarterly consolidated financial statements requires management of NIDEC to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results may differ from those estimates.

    The estimates and underlying assumptions are reviewed on an ongoing basis, and the effects resulting from revisions of accounting estimates are recognized in the period in which the estimates are revised and in future periods affected by the revision.

    Judgments and estimates accompanying significant risks that may cause material adjustments to the carrying amounts of assets and liabilities in the current and next fiscal years are the same as those for the condensed consolidated financial statements for the first quarter of the current fiscal year, covering the period from April 1, 2016 to June 30, 2016.

15. Business Combinations

16. Pursuant to IFRS 3 "Business Combinations," during the three months ended September 30, 2016, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of KB Electronics, Inc. (merged into Nidec Motor Corporation in March 2016) Consolidated financial statements for the previous fiscal year and condensed quarterly consolidated financial statements for the nine months ended December 31, 2015 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. NIDEC has been evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of companies in the nine months ended December 31, 2016. The assets and liabilities which are currently under evaluation have been recorded on NIDEC's consolidated statement of financial position based on preliminary management estimation as of December 31, 2016. These evaluations do not have material impacts on NIDEC's consolidated financial position, results of operations or liquidity.

    6. First-Time Adoption of IFRS

    NIDEC discloses the consolidated financial statements under IFRS for the first time for the fiscal year ending March 31, 2017. The latest consolidated financial statements under accounting principles generally accepted in the United States ("U.S. GAAP") were prepared for the fiscal year ended March 31, 2016 and the date of transition to IFRS is April 1, 2015.

17. Exemptions to retrospective application of IFRS

    IFRS 1 stipulates that an entity adopting IFRS for the first time shall apply IFRS retrospectively to prior periods. However, IFRS 1 allows certain exemptions from the retrospective application of certain aspects of IFRS, and accordingly NIDEC has applied the following exemptions:

    Business combinations:

    IFRS 1 permits an entity not to apply IFRS 3 "Business Combinations" retrospectively to business combinations that occurred prior to the date of transition to IFRS. NIDEC elected to apply this exemption and did not apply IFRS 3 retrospectively to business combinations that occurred before the date of transition to IFRS. As a result, the goodwill recognized prior to the transition date is recorded based on the U.S. GAAP book value of the transition date. NIDEC performed an impairment test on goodwill at the date of transition to IFRS regardless of whether there was any indication that the goodwill may be impaired.

    Use of fair value as deemed cost:

    IFRS 1 permits an entity to measure items of property, plant and equipment, investment property or intangible assets at the date of transition to IFRS at its fair value and use that fair value as deemed cost at that date. NIDEC elected to use the fair value at the date of transition to IFRS as deemed cost at the date of transition to IFRS for certain items of property, plant and equipment. Further, NIDEC elected to use the cost model for items of property, plant and equipment and intangible assets under IFRS, thus the revaluation model is not applied.

    Exchange differences on translating foreign operations:

    IFRS 1 permits the cumulative amount of exchange differences on translating foreign operations to be deemed to be zero at the date of transition to IFRS. NIDEC elected to apply this exemption and deemed all cumulative exchange differences on translating foreign operations as zero at the date of transition to IFRS.

18. Reconciliations

The reconciliations required to be disclosed in the first IFRS financial statements are described in the reconciliations below.

"Re-classification" includes items that do not affect retained earnings and comprehensive income, while "Recognition and measurement, etc." includes items that affect retained earnings and comprehensive income.

1. Reconciliation of equity as of the date of transition to IFRS (April 1, 2015)

   Recognition and

   Yen in millions

   U.S. GAAP U.S. GAAP Re-classification

   measurement differences, etc.

   IFRS Note IFRS

   Assets Current assets Cash and cash equivalents	269,902	-	-	269,902	Assets Current assets Cash and cash equivalents
   -	255,470	-	255,470	Trade and other receivables
   Trade note receivable	15,221	(15,221)	-	-
   Trade accounts receivable	222,396	(222,396)	-	-
   -	262	-	262	D	Other financial assets
   -	1,551	-	1,551	Income tax receivables
   Inventories	170,874	-	6	170,880	Inventories
   Other current assets	50,622	(30,180)	(424)	20,018	Other current assets
   Total current assets	729,015	(10,514)	(418)	718,083	Total current assets
   Non-current assets
   -	342,122	434	342,556	Property, plant, and equipment
   Land	47,427	(47,427)	-	-
   Buildings	189,742	(189,742)	-	-
   Machinery and equipment	430,019	(430,019)	-	-
   Construction in progress	33,831	(33,831)	-	-
   Accumulated depreciation	(358,897)	358,897	-	-
   Goodwill	162,959	-	-	162,959	Goodwill
   -	83,931	-	83,931	Intangible assets
   -	2,167	-	2,167	Investments accounted for using the equity method
   -		21,507	-	21,507	Other investments
   Marketable securities and other securities investments 21,516		(21,516)	-	-
   Investments in and advances to affiliated 2,167 companies		(2,167)	-	-
   -		2,274	-	2,274	D	Other financial assets
   -		13,869	(3,120)	10,749	B	Deferred tax assets
   -		10,010	(4,364)	5,646	Other non-current assets
   Other tangible assets 99,561		(99,561)	-	-
   Total non-current assets 628,325		10,514	(7,050)	631,789	Total non-current assets

   Total assets 1,357,340 - (7,468) 1,349,872 Total assets

   U.S. GAAP U.S. GAAP Re-classification

   Recognition and measurement

   Yen in millions

   IFRS Note IFRS

   differences, etc.

   Liabilities and equity Liabilities and equity

   Liabilities Liabilities

   Current liabilities Current liabilities

   Short-term borrowings 52,401 - - 52,401 Short term borrowings

   Current portion of

   long-term debt 45,485 - (53) 45,432

   Long term debt due within one year

   Trade notes and

   - 204,328 44 204,372 Trade and other payables

   accounts payable	-	2,941	-	2,941	Other financial liabilities
   -	5,855	58	5,913	Income tax payables
   -	18,583	-	18,583	Provisions
   Accrued expenses	33,375	(33,375)	-	-
   Other current liabilities	36,689	(5,538)	-	31,151	Other current liabilities
   Total current liabilities	362,948	(2,204)	49	360,793	Total current liabilities

   194,998 (194,998) - -

   Long term liabilities Non-current liabilities

   Long-term debt	184,612	-	(180)	184,432	Long term debt
   -	569	-	569	Other financial liabilities
   -	19,565	269	19,834	A	Retirement benefit liabilities
   Accrued pension and severance costs	19,576	(19,576)	-	-
   -	2,904	-	2,904	Provisions
   -	32,721	(9,254)	23,467	B	Deferred tax liabilities
   -	3,126	-	3,126	Other non-current liabilities
   Other long term liabilities	37,105	(37,105)	-	-
   Total long term liabilities	241,293	2,204	(9,165)	234,332	Total non-current liabilities
   Total liabilities	604,241	-	(9,116)	595,125	Total liabilities
   Equity	Equity
   Common stock	77,071	-	-	77,071	Common stock
   Additional paid-in capital	105,459	-	2,273	107,732	Additional paid-in capital
   Retained earnings	427,641	-	135,146	562,787	C	Retained earnings
   -	134,828	(135,900)	(1,072)	A	Other components of equity

   Accumulated other

   comprehensive income 134,828 (134,828) - -C

   Treasury stock (27) - - (27) Treasury stock

   Total Nidec Corporation

   shareholders' equity Noncontrolling interests	8,127	- 129	8,256	owners of the parent Non-controlling interests
   Total equity	753,099	- 1,648	754,747	Total equity
   Total liabilities and equity	1,357,340	- (7,468)	1,349,872	Total liabilities and equity

   744,972 - 1,519 746,491

   Total equity attributable to

   Notes to reconciliation of equity as of the date of transition to IFRS (April 1, 2015)

   The major items of the reconciliation of equity as of the date of transition to IFRS are as follows:

2. Retirement benefit liabilities

   Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

   Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

   As a result of the factors described above, the amount that was reclassified from accumulated other comprehensive income (loss) to a decrease in "Retained earnings" at the IFRS transition date was ¥2,844 million.

3. Deferred tax

4. Under U.S. GAAP, when taxes on intercompany profits arising from transfer of assets between entities within NIDEC were paid by sellers, the taxes were deferred as prepaid expenses (¥4,185 million). Under IFRS, however, these temporary differences are recognized as deferred tax assets using the purchasers' tax rates.

5. Temporary differences resulting from the transition to IFRS are recognized as additional deferred tax assets and liabilities.

6. Deferred tax assets and liabilities are offset if a legally enforceable right exists to offset current tax assets with current tax liabilities and the deferred taxes relate to income taxes levied by the same taxation authority on the same taxable entity.

7. As a result, deferred tax assets and liabilities (net) decreased by ¥6,134 million at the date of transition to IFRS.

8. Translation adjustment of foreign operations

   As noted in (1) above, IFRS 1 permits the cumulative amount of exchange differences on translating foreign operations to be deemed to be zero at the date of transition to IFRS. NIDEC elected to apply this exemption and deemed all cumulative exchange differences on translating foreign operations as zero at the date of transition to IFRS. As a result, translation adjustments reclassified from accumulated other comprehensive income to "Retained earnings" was ¥131,332 million at the date of transition to IFRS.

9. Reclassification on the consolidated statement of financial position

10. Certain reclassifications have been made to consolidated statement of financial position to conform to provisions under IFRS. The major reclassifications on consolidated statement of financial position are as follows:

11. Under U.S. GAAP, deferred tax assets and deferred tax liabilities are presented as current assets/non-current assets and current liabilities/non-current liabilities. Under IFRS, as deferred tax assets and deferred tax liabilities are not allowed to be presented as current assets/current liabilities, all of them are reclassified to non-current assets/non-current liabilities.

12. Financial assets and financial liabilities are disclosed separately based on a provision for presentation under IFRS.

13. Reconciliation of equity as of December 31, 2015

    U.S. GAAP U.S. GAAP Re-classification

    Recognition and measurement differences, etc.

    Yen in millions

    IFRS Note IFRS

    Assets Current assets Cash and cash equivalents	324,931	-	-	324,931	Assets Current assets Cash and cash equivalents
    -	269,303	104	269,407	Trade and other receivables
    Trade note receivable	21,827	(21,827)	-	-
    Trade accounts receivable	230,017	(230,017)	-	-
    -	336	-	336	D	Other financial assets
    -	2,827	-	2,827	Income tax receivables
    Inventories	186,360	-	165	186,525	Inventories
    Other current assets	51,972	(32,195)	178	19,955	Other current assets
    Total current assets	815,107	(11,573)	447	803,981	Total current assets
    Non-current assets
    -	358,822	599	359,421	Property, plant, and equipment
    Land	47,903	(47,903)	-	-
    Buildings	194,286	(194,286)	-	-
    Machinery and equipment	464,419	(464,419)	-	-
    Construction in progress	34,154	(34,154)	-	-
    Accumulated depreciation	(381,940)	381,940	-	-
    Goodwill	168,483	-	(985)	167,498	E	Goodwill
    -	81,073	211	81,284	E	Intangible assets
    -	1,937	-	1,937	Investments accounted for using the equity method
    -		18,721	-	18,721	Other investments
    Marketable securities and 18,727 other securities investments		(18,727)	-	-
    Investments in and advances to affiliated 1,937 companies		(1,937)	-	-
    -		1,736	-	1,736	D	Other financial assets
    -		14,694	(3,488)	11,206	B	Deferred tax assets
    -		10,973	(4,446)	6,527	Other non-current assets
    Other tangible assets 96,897		(96,897)	-	-
    Total non-current assets 644,866		11,573	(8,109)	648,330	Total non-current assets

    Total assets 1,459,973 - (7,662) 1,452,311 Total assets

    U.S. GAAP U.S. GAAP Re-classification

    Recognition and measurement differences, etc.

    Yen in millions

    IFRS Note IFRS

    Liabilities and equity Liabilities and equity

    Liabilities Liabilities

    Current liabilities Current liabilities

    Short-term borrowings 121,937 - - 121,937 Short term borrowings

    Current portion of long-term debt

    52,495 - (24) 52,471

    Long term debt due within one year

    Trade notes and

    - 214,638 45 214,683 Trade and other payables

    accounts payable	-	5,477	-	5,477	Other financial liabilities
    -	6,243	-	6,243	Income tax payable
    -	15,614	15	15,629	Provisions
    Accrued expenses	32,652	(32,652)	-	-
    Other current liabilities	46,149	(8,714)	376	37,811	Other current liabilities
    Total current liabilities	456,423	(2,584)	412	454,251	Total current liabilities

    203,190 (203,190) - -

    Long term liabilities Non-current liabilities

    Long-term debt	139,328	-	(105)	139,223	Long term debt
    -	890	-	890	Other financial liabilities
    -	19,140	653	19,793	A	Retirement benefit liabilities
    Accrued pension and severance costs	19,151	(19,151)	-	-
    -	2,920	68	2,988	Provisions
    -	35,002	(9,333)	25,669	B	Deferred tax liabilities
    -	3,121	-	3,121	Other non-current liabilities
    Other long term liabilities	39,338	(39,338)	-	-
    Total long term liabilities	197,817	2,584	(8,717)	191,684	Total non-current liabilities
    Total liabilities	654,240	-	(8,305)	645,935	Total liabilities
    Equity	Equity
    Common stock	87,784	-	-	87,784	Common stock
    Additional paid-in capital	116,108	-	2,283	118,391	Additional paid-in capital
    Retained earnings	474,879	-	132,565	607,444	C	Retained earnings
    -	118,407	(134,314)	(15,907)	A	Other components of equity

    Accumulated other comprehensive income

    118,407 (118,407) - - C

    Treasury stock (39) - - (39) Treasury stock

    Total Nidec Corporation

    shareholders' equity Noncontrolling interests	8,594	- 109	8,703	owners of the parent Non-controlling interests
    Total equity	805,733	- 643	806,376	Total equity
    Total liabilities and equity	1,459,973	- (7,662)	1,452,311	Total liabilities and equity

    797,139 - 534 797,673

    Total equity attributable to

    Notes to reconciliation of equity as of December 31, 2015

    The major items of the reconciliation of equity as of December 31, 2015 are as follows:

14. Retirement benefit liabilities

    Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

    Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

    As a result of the factors described above, the amount that was reclassified from accumulated other comprehensive income (loss) to a decrease in "Retained earnings" as of December 31, 2015 was ¥2,791 million.

15. Deferred tax

16. Under U.S. GAAP, when taxes on intercompany profits arising from transfer of assets between entities within NIDEC were paid by sellers, the taxes were deferred as prepaid expenses (¥4,264 million). Under IFRS, however, these temporary differences are recognized as deferred tax assets using the purchasers' tax rates.

17. Temporary differences resulting from the transition to IFRS are recognized as additional deferred tax assets and liabilities.

18. Deferred tax assets and liabilities are offset if a legally enforceable right exists to offset current tax assets with current tax liabilities and the deferred taxes relate to income taxes levied by the same taxation authority on the same taxable entity.

19. As a result, deferred tax assets and liabilities (net) decreased by ¥5,845 million as of December 31, 2015.

20. Translation adjustment of foreign operations

    As noted in (1) above, IFRS 1 permits the cumulative amount of exchange differences on translating foreign operations to be deemed to be zero at the date of transition to IFRS. NIDEC elected to apply this exemption and deemed all cumulative exchange differences on translating foreign operations as zero at the date of transition to IFRS. As a result, translation adjustments reclassified from accumulated other comprehensive income to "Retained earnings" was ¥131,332 million at the date of transition to IFRS.

21. Reclassification on the consolidated statement of financial position

    Certain reclassifications have been made to consolidated statement of financial position to conform to provisions under IFRS. The major reclassifications on consolidated statement of financial position are as follows:

22. Under U.S. GAAP, deferred tax assets and deferred tax liabilities are presented as current assets/non-current assets and current liabilities/non-current liabilities. Under IFRS, as deferred tax assets and deferred tax liabilities are not allowed to be presented as current assets/current liabilities, all of them are reclassified to non-current assets/non-current liabilities.

23. Financial assets and financial liabilities are disclosed separately based on a provision for presentation under IFRS.

25. Retrospective adjustment on business combinations

26. During the six months ended September 30, 2016, NIDEC completed some of its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition in the previous years. Accordingly, retrospective adjustments are included in "Recognition and measurement differences, etc."

27. Reconciliation of equity as of March 31, 2016

    U.S. GAAP U.S. GAAP Re-classification

    Recognition and measurement differences, etc.

    IFRS Note IFRS

    Yen in millions

    Assets Current assets Cash and cash equivalents	305,942	-	-	305,942	Assets Current assets Cash and cash equivalents
    -	251,209	101	251,310	Trade and other receivables
    Trade note receivable	16,589	(16,589)	-	-
    Trade accounts receivables	218,680	(218,680)	-	-
    -	2,010	-	2,010	D	Other financial assets
    -	2,063	-	2,063	Income tax receivables
    Inventories	170,951	-	(77)	170,874	Inventories
    Other current assets	53,150	(30,380)	122	22,892	Other current assets
    Total current assets	765,312	(10,367)	146	755,091	Total current assets
    Non-current assets
    -	347,729	(797)	346,932	Property, plant, and equipment
    Land	47,477	(47,477)	-	-
    Buildings	190,362	(190,362)	-	-
    Machinery and equipment	450,860	(450,860)	-	-
    Construction in progress	33,340	(33,340)	-	-
    Accumulated depreciation	(374,310)	374,310	-	-
    Goodwill	162,963	-	(920)	162,043	E	Goodwill
    -	76,859	190	77,049	E	Intangible assets
    -	1,896	-	1,896	Investments accounted for using the equity method
    -		15,998	-	15,998	Other investments
    Marketable securities and 16,004 other securities investments		(16,004)	-	-
    Investments in and advances to affiliated 1,896 companies		(1,896)	-	-
    -		1,804	-	1,804	D	Other financial assets
    -		13,554	(2,009)	11,545	B	Deferred tax assets
    -		8,724	(4,446)	4,278	Other non-current assets
    Other tangible assets 90,568		(90,568)	-	-
    Total non-current assets 619,160		10,367	(7,982)	621,545	Total non-current assets

    Total assets 1,384,472 - (7,836) 1,376,636 Total assets

    U.S. GAAP U.S. GAAP Re-classification

    Recognition and measurement differences, etc.

    IFRS Note IFRS

    Yen in millions

    Liabilities and equity Liabilities and equity

    Liabilities Liabilities

    Current liabilities Current liabilities

    Short-term borrowings 81,092 - - 81,092 Short term borrowings

    Current portion of long-term debt

    82,796 - (19) 82,777

    Long term debt due within one year

    Trade notes and

    - 186,946 44 186,990 Trade and other payables

    accounts payable	-	3,192	-	3,192	Other financial liabilities
    -	5,831	-	5,831	Income tax payable
    -	18,886	-	18,886	Provisions
    Accrued expenses	34,948	(34,948)	-	-
    Other current liabilities	44,388	(3,832)	335	40,891	Other current liabilities
    Total current liabilities	420,478	(1,179)	360	419,659	Total current liabilities

    177,254 (177,254) - -

    Long term liabilities Non-current liabilities

    Long-term debt	136,894	-	(96)	136,798	Long term debt
    -	1,029	-	1,029	Other financial liabilities
    -	19,158	330	19,488	A	Retirement benefit liabilities
    Accrued pension and severance costs	19,169	(19,169)	-	-
    -	3,283	54	3,337	Provisions
    -	29,989	(7,348)	22,641	B	Deferred tax liabilities
    -	2,315	-	2,315	Other non-current liabilities
    Other long term liabilities	35,426	(35,426)	-	-
    Total long term liabilities	191,489	1,179	(7,060)	185,608	Total non-current liabilities
    Total liabilities	611,967	-	(6,700)	605,267	Total liabilities
    Equity	Equity
    Common stock	87,784	-	-	87,784	Common stock
    Additional paid-in capital	116,058	-	2,283	118,341	Additional paid-in capital
    Retained earnings	495,761	-	129,407	625,168	C	Retained earnings
    -	76,729	(132,888)	(56,159)	A	Other components of equity

    Accumulated other comprehensive income

    76,729 (76,729) - - C

    Treasury stock (12,111) - - (12,111) Treasury stock

    Total Nidec Corporation shareholders' equity Noncontrolling interests	764,221 8,284	- (1,198) - 62	763,023 8,346	Total equity attributable to owners of the parent Non-controlling interests
    Total equity	772,505	- (1,136)	771,369	Total equity
    Total liabilities and equity	1,384,472	- (7,836)	1,376,636	Total liabilities and equity

    Notes to reconciliation of equity as of March 31, 2016

    The major items of the reconciliation of equity as of March 31,2016 are as follows:

28. Retirement benefit liabilities

    Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

    Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

    As a result of the factors described above, the amount that was reclassified from accumulated other comprehensive income (loss) to a decrease in "Retained earnings" as of March 31, 2016 was ¥3,847 million.

29. Deferred tax

30. Under U.S. GAAP, when taxes on intercompany profits arising from transfer of assets between entities within NIDEC were paid by sellers, the taxes were deferred as prepaid expenses (¥4,111 million). Under IFRS, however, these temporary differences are recognized as deferred tax assets using the purchasers' tax rates.

31. Temporary differences resulting from the transition to IFRS are recognized as additional deferred tax assets and liabilities.

32. Deferred tax assets and liabilities are offset if a legally enforceable right exists to offset current tax assets with current tax liabilities and the deferred taxes relate to income taxes levied by the same taxation authority on the same taxable entity.

33. As a result, deferred tax assets and liabilities (net) decreased by ¥5,635 million as of March 31, 2016.

34. Translation adjustment of foreign operations

    As noted in (1) above, IFRS 1 permits the cumulative amount of exchange differences on translating foreign operations to be deemed to be zero at the date of transition to IFRS. NIDEC elected to apply this exemption and deemed all cumulative exchange differences on translating foreign operations as zero at the date of transition to IFRS. As a result, translation adjustments reclassified from accumulated other comprehensive income to "retained earnings" was ¥131,332 million at the date of transition to IFRS.

35. Reclassification on the consolidated statement of financial position

    Certain reclassifications have been made to consolidated statement of financial position to conform to provisions under IFRS. The major reclassifications on consolidated statement of financial position are as follows:

36. Under U.S. GAAP, deferred tax assets and deferred tax liabilities are presented as current assets/non-current assets and current liabilities/non-current liabilities. Under IFRS, as deferred tax assets and deferred tax liabilities are not allowed to be presented as current assets/current liabilities, all of them are reclassified to non-current assets/non-current liabilities.

37. Financial assets and financial liabilities are disclosed separately based on a provision for presentation under IFRS.

39. Retrospective adjustment on business combinations

40. During the six months ended September 30, 2016, NIDEC completed some of its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition in the previous years. Accordingly, retrospective adjustments are included in "Recognition and measurement differences, etc."

41. Reconciliation of income and comprehensive income for the nine months ended December 31, 2015

    Recognition and

    Yen in millions

    U.S. GAAP U.S. GAAP Re-classification

    measurement differences, etc.

    IFRS Note IFRS

    Condensed quarterly

    Quarterly consolidated

    Net sales	895,353	-	-	895,353	income Net sales
    Cost of products sold	(690,915)	(13)	(996)	(691,924)	A,D	Cost of sales
    Gross profit	204,438	(13)	(996)	203,429	Gross profit

    statement of income

    consolidated statement of

    Selling, general and administrative expenses Research and development

    (70,741) (2,782) 87 (73,436) A

    expenses	expenses
    Operating income	93,990 (2,795)	(909)	90,286	Operating profit
    - 2,253	(946)	1,307	C	Financial income
    - (1,262)	(39)	(1,301)	C	Financial expenses
    - 161	-	161	Derivative gain
    - 2,010	-	2,010	Foreign exchange differences
    - 4	-	4	Equity in net income (loss)
    of associates
    Interest and dividend income	1,303	(1,303)	- -
    Interest expense	(1,164)	1,164	- -

    (39,707) - - (39,707)

    Selling, general and administrative expenses Research and development

    Foreign exchange (loss) gain, net

    Gain on marketable securities, net

    2,010 (2,010) - -

    946 (946) - - B

    Other, net (2,728) 2,728 - -

    Income before income tax	94,357	4	(1,894)	92,467	Profit before income taxes
    Income taxes	(22,458)	-	554	(21,904)	Income tax expenses
    Equity in net income of	4	(4)	-	-
    affiliated companies
    Consolidated net income	71,903	- (1,340)		70,563	Profit for the period
    Net income attributable to:	Profit attributable to:
    Nidec Corporation	70,928	- (1,402)		69,526	Owners of the parent
    Noncontrolling interests	975	- 62		1,037	Non-controlling interests

    U.S. GAAP U.S. GAAP Quarterly consolidated

    statement of comprehensive income

    Consolidated net income

    Pension liability adjustments

    Net unrealized gains and losses on securities

    Foreign currency translation adjustments

    Net gains and losses on derivative instruments

    Re- classification

    Recognition and measurement differences, etc.

    Yen in millions

    IFRS Note IFRS

    Condensed quarterly consolidated statement of comprehensive income

    71,903	-	(1,340)	70,563
    78	-	(70)	8	A
    (1,874)	8	705	(1,161)	B
    (14,426)	-	(219)	(14,645)
    (579)	-	-	(579)
    -	(8)	-	(8)
    	(16,801)	-	416	(16,385)
    	55,102	-	(924)	54,178
    54,507	-	(994)	53,513
    595	-	70	665

    Profit for the period

    Remeasurement of defined benefit plans

    Fair value movements on FVTOCI equity financial assets

    Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges

    Fair value movements on FVTOCI debt financial assets

    Total other comprehensive income

    Total comprehensive income

    (Breakdown)

    Comprehensive income (loss) attributable to Nidec Corporation Comprehensive income (loss) attributable to noncontrolling interests

    Other comprehensive income for the period, net of taxation Comprehensive income for the period

    Comprehensive income attributable to:

    Owners of the parent

    Non-controlling interests

    Notes to reconciliation of income and comprehensive income for the nine months ended December 31, 2015

    The major items of the reconciliation of income and comprehensive income for the nine months ended December 31, 2015 are as follows:

42. Retirement benefit liabilities

    Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

    Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

    As a result of the factors described above, retirement benefit costs have increased by ¥303 million on the condensed quarterly consolidated statement of income for the nine months ended December 31, 2015.

43. Equity financial assets

    Under U.S. GAAP, gains and losses from the sales of investment securities and impairment of the securities are recognized through profit or loss. Under IFRS, however, NIDEC adopts IFRS 9 and accordingly any gain or loss arising from a difference between the carrying value and fair value of equity financial assets designated as measured at fair value through other comprehensive income ("FVTOCI equity financial assets") are recognized in other comprehensive income without reclassification.

44. Reclassifications on the consolidated statement of income

    Certain reclassifications are made on the consolidated statement of income in order to comply with the IFRS provisions. The major reclassification on the condensed quarterly consolidated statement of income is as follows:

    (a) Based on an IFRS provision concerning presentations, the financial income and financial expenses are presented separately.

45. Retrospective adjustment on business combinations

46. During the six months ended September 30, 2016, NIDEC completed some of its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition in the previous years. Accordingly, retrospective adjustments are included in "Recognition and measurement differences, etc."

47. Reconciliation of income and comprehensive income for the three months ended December 31, 2015

    Recognition and

    Yen in millions

    U.S. GAAP U.S. GAAP Re-classification

    measurement differences, etc.

    IFRS Note IFRS

    Condensed quarterly

    Quarterly consolidated

    Net sales	308,001	-	-	308,001	income Net sales
    Cost of products sold	(237,857)	(7)	(696)	(238,560)	A,D	Cost of sales
    Gross profit	70,144	(7)	(696)	69,441	Gross profit

    statement of income

    consolidated statement of

    Selling, general and administrative expenses Research and development

    (23,698) (847) 73 (24,472) A

    expenses	expenses
    Operating income	32,160 (854)		(623)	30,683	Operating profit
    - 436		(26)	410	C	Financial income
    - (408)		2	(406)	C	Financial expenses
    - 46		-	46	Derivative gain
    Foreign exchange
    -	(412)	-	(412)

    (14,286) - - (14,286)

    Selling, general and administrative expenses Research and development

    407	(407)	of associates - -
    (374)	374	- -
    (412)	412	- -

    - (1) - (1)

    differences

    Equity in net income (loss)

    Interest and dividend income

    Interest expense

    Foreign exchange (loss) gain, net

    Gain on marketable securities, net

    26 (26) - - B

    Other, net (839) 839 - -

    Income before income tax	30,968	(1)	(647)	30,320	Profit before income taxes
    Income taxes	(7,246)	-	70	(7,176)	Income tax expenses
    Equity in net income of	(1)	1	-	-
    affiliated companies
    Consolidated net income	23,721	- (577)		23,144	Profit for the period
    Net income attributable to:	Profit attributable to:
    Nidec Corporation	23,320	- (651)		22,669	Owners of the parent
    Noncontrolling interests	401	- 74		475	Non-controlling interests

    U.S. GAAP U.S. GAAP Quarterly consolidated

    statement of comprehensive income

    Consolidated net income

    Pension liability adjustments

    Net unrealized gains and losses on securities

    Foreign currency translation adjustments

    Net gains and losses on derivative instruments

    Re- classification

    Recognition and measurement differences, etc.

    Yen in millions

    IFRS Note IFRS

    Condensed quarterly consolidated statement of comprehensive income

    23,721	-	(577)	23,144
    101	-	(21)	80	A
    510	(4)	169	675	B
    115	-	25	140
    62	-	-	62
    -	4	-	4
    	788	-	173	961
    	24,509	-	(404)	24,105
    23,999	-	(486)	23,513
    510	-	82	592

    Profit for the period

    Remeasurement of defined benefit plans

    Fair value movements on FVTOCI equity financial assets

    Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges

    Fair value movements on FVTOCI debt financial assets

    Total other comprehensive income

    Total comprehensive income

    (Breakdown)

    Comprehensive income (loss) attributable to Nidec Corporation Comprehensive income (loss) attributable to noncontrolling interests

    Other comprehensive income for the period, net of taxation Comprehensive income for the period

    Comprehensive income attributable to:

    Owners of the parent

    Non-controlling interests

    Notes to reconciliation of income and comprehensive income for the three months ended December 31, 2015

    The major items of the reconciliation of income and comprehensive income for the three months ended December 31, 2015 are as follows:

48. Retirement benefit liabilities

    Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

    Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

    As a result of the factors described above, retirement benefit costs have increased by ¥92 million on the condensed quarterly consolidated statement of income for the three months ended December 31, 2015.

49. Equity financial assets

    Under U.S. GAAP, gains and losses from the sales of investment securities and impairment of the securities are recognized through profit or loss. Under IFRS, however, NIDEC adopts IFRS 9 and accordingly any gain or loss arising from a difference between the carrying value and fair value of equity financial assets designated as measured at fair value through other comprehensive income ("FVTOCI equity financial assets") are recognized in other comprehensive income without reclassification.

50. Reclassifications on the consolidated statement of income

    Certain reclassifications are made on the consolidated statement of income in order to comply with the IFRS provisions. The major reclassification on the condensed quarterly consolidated statement of income is as follows:

    (a) Based on an IFRS provision concerning presentations, the financial income and financial expenses are presented separately.

51. Retrospective adjustment on business combinations

52. During the six months ended September 30, 2016, NIDEC completed some of its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition in the previous years. Accordingly, retrospective adjustments are included in "Recognition and measurement differences, etc."

53. Reconciliation of income and comprehensive income for the year ended March 31, 2016

    Yen in millions

    Recognition and U.S. GAAP U.S. GAAP Re- measurement IFRS Note IFRS
    differences, etc.
    Consolidated statement of	Consolidated statement of
    income	income
    Net sales	1,178,290	-	-	1,178,290	Net sales
    Cost of products sold	(908,311)	(131)	(1,511)	(909,953)	A,D	Cost of sales
    Gross profit	269,979	(131)	(1,511)	268,337	Gross profit
    Selling, general and administrative expenses	(93,463)	(5,580)	346	(98,697)	A	Selling, general and administrative expenses
    Research and development	(51,978)	-	-	(51,978)	Research and development
    expenses	expenses
    Operating income	124,538 (5,711)		(1,165)	117,662	Operating profit
    - 2,859		(946)	1,913	C	Financial income
    - (2,356)		(54)	(2,410)	C	Financial expenses
    - 151		-	151	Derivative gain
    - -	(153) 1	- -	(153) 1	Foreign exchange differences Equity in net income (loss)

    classification

    Interest and dividend income

    1,913 (1,913) - -

    of associates

    Interest expense (2,228) 2,228 - -

    Foreign exchange (loss)

    gain, net

    Gain on marketable securities, net

    (153) 153 - -

    946 (946) - - B

    Other, net (5,688) 5,688 - -

    Income before income tax	119,328	1	(2,165)	117,164	Profit before income taxes
    Income taxes	(26,466)	-	300	(26,166)	Income tax expenses
    Equity in net income of	1	(1)	-	-
    affiliated companies
    Consolidated net income	92,863	- (1,865)		90,998	Profit for the period
    Net income attributable to:	Profit attributable to:
    Nidec Corporation	91,810	- (1,865)		89,945	Owners of the parent
    Noncontrolling interests	1,053	- -		1,053	Non-controlling interests

    U.S. GAAP U.S. GAAP Consolidated statement of

    comprehensive income Consolidated net income

    Pension liability adjustments

    Net unrealized gains and losses on securities

    Foreign currency translation adjustments

    Net gains and losses on derivative instruments

    Total other comprehensive income

    Total comprehensive income

    (Breakdown) Comprehensive income

    Re- classification

    Recognition and measurement differences, etc.

    Yen in millions

    IFRS Note IFRS

    Consolidated statement of comprehensive income

    92,863	-	(1,865)	90,998
    (981)	-	40	(941)	A
    (3,714)	-	805	(2,909)	B
    (54,491)	-	(1,699)	(56,190)
    326	-	-	326
    -	-	(6)	(6)
    	(58,860)	-	(860)	(59,720)
    	34,003	-	(2,725)	31,278

    Profit for the period

    Remeasurement of defined benefit plans

    Fair value movements on FVTOCI equity financial assets

    Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges

    Fair value movements on FVTOCI debt financial assets

    Other comprehensive income for the period, net of taxation Comprehensive income for the period

    Comprehensive income attributable to:

    (loss) attributable to Nidec Corporation Comprehensive income (loss) attributable to noncontrolling interests

    33,711 - (2,728) 30,983 Owners of the parent

    292 - 3 295 Non-controlling interests

    Notes to reconciliation of income and comprehensive income for the year ended March 31, 2016

    The major items of the reconciliation of income and comprehensive income for the year ended March 31, 2016 are as follows:

54. Retirement benefit liabilities

    Under U.S. GAAP, the actuarial gain and loss, and prior service costs resulted from defined benefit plan or lump-sum indemnities which incurred during the fiscal year but not recognized as the same periodic pension cost are recognized as accumulated other comprehensive income (loss) by the amount after tax. The amount recognized as accumulated other comprehensive income (loss) is amortized into net periodic pension costs over the certain future periods.

    Under IFRS, actuarial gain and loss are recognized in other comprehensive income by the amount after tax and the prior service costs are expensed as incurred. The actuarial gain and loss are transferred from other components of equity to retained earnings directly without going through net profit or loss.

    As a result of the factors described above, retirement benefit costs have increased by ¥378 million on the consolidated statement of income for the year ended March 31, 2016.

55. Equity financial assets

    Under U.S. GAAP, gains and losses from the sales of investment securities and impairment of the securities are recognized through profit or loss. Under IFRS, however, NIDEC adopts IFRS 9 and accordingly any gain or loss arising from a difference between the carrying value and fair value of equity financial assets designated as measured at fair value through other comprehensive income ("FVTOCI equity financial assets") are recognized in other comprehensive income without reclassification.

56. Reclassifications on the consolidated statement of income

    Certain reclassifications are made on the consolidated statement of income in order to comply with the IFRS provisions. The major reclassification on the consolidated statement of income is as follows:

57. Based on an IFRS provision concerning presentations, the financial income and financial expenses are presented separately.

58. Retrospective adjustment on business combinations

59. During the six months ended September 30, 2016, NIDEC completed some of its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition in the previous years. Accordingly, retrospective adjustments are included in "Recognition and measurement differences, etc."

60. Disclosure of material items of reconciliation of the consolidated statements of cash flows for the nine months ended December 31, 2015 and the year ended March 31, 2016

61. There are no material differences between the consolidated statement of cash flows presented under IFRS and the consolidated statement of cash flows presented under U.S. GAAP.

    4. Supplementary Information

62. Quarterly Financial Data for the three months ended December 31, 2016, September 30, 2016 and June 30, 2016

    Three months ended
    June 30, 2016		September 30, 2016		December 31, 2016
    Amounts	%	Amounts	%	Amounts	%
    Net sales Operating profit Profit before income taxes Profit for the period Profit attributable to owners of the parent	Yen in millions	Yen in millions	Yen in millions
    	276,206 31,540 29,103 22,264 22,041	100.0 11.4 10.5 8.1 8.0	287,824 37,464 37,190 28,252 28,069	100.0 13.0 12.9 9.8 9.7	304,198 37,193 41,478 31,821 31,528	100.0 12.2 13.6 10.5 10.4

63. Information by Product Category

Nine months ended December 31, 2015 Yen in millions

Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
Net sales:	352,077	411,031	80,245	49,264	2,736	895,353	-	895,353
Exteral sales
Intersegment	1,896	3,879	9,815	3,697	1,268	20,555	(20,555)	-
Total	353,973	414,910	90,060	52,961	4,004	915,908	(20,555)	895,353
Operating expenses	300,824	383,303	78,243	48,416	3,614	814,400	(9,333)	805,067
Operating profit	53,149	31,607	11,817	4,545	390	101,508	(11,222)	90,286

Nine months ended December 31, 2016 Yen in millions

Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
Net sales:	330,866	400,709	86,610	47,307	2,736	868,228	-	868,228
Exteral sales
Intersegment	1,754	4,302	6,419	4,296	1,095	17,866	(17,866)	-
Total	332,620	405,011	93,029	51,603	3,831	886,094	(17,866)	868,228
Operating expenses	280,484	362,838	77,227	43,821	3,388	767,758	(5,727)	762,031
Operating profit	52,136	42,173	15,802	7,782	443	118,336	(12,139)	106,197

Three months ended December 31, 2015 Yen in millions

Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
Net sales:	129,564	134,846	25,886	16,736	969	308,001	-	308,001
Exteral sales
Intersegment	640	1,501	2,739	1,183	396	6,459	(6,459)	-
Total	130,204	136,347	28,625	17,919	1,365	314,460	(6,459)	308,001
Operating expenses	111,653	125,559	25,020	16,424	1,219	279,875	(2,557)	277,318
Operating profit	18,551	10,788	3,605	1,495	146	34,585	(3,902)	30,683

Three months ended December 31, 2016 Yen in millions

Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
Net sales:	119,150	135,064	32,726	16,275	983	304,198	-	304,198
Exteral sales
Intersegment	736	1,753	2,348	1,654	383	6,874	(6,874)	-
Total	119,886	136,817	35,074	17,929	1,366	311,072	(6,874)	304,198
Operating expenses	100,717	122,632	29,472	15,025	1,210	269,056	(2,051)	267,005
Operating profit	19,169	14,185	5,602	2,904	156	42,016	(4,823)	37,193

Notes:

1. Product categories are classified based on similarities in product type, product attributes, and production and sales methods.

2. Major products of each product category:

3. Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.

4. Automotive, appliance, commercial and industrial products: Automotive motors and components, home appliance, commercial and industrial motors and related products.

5. Machinery: Industrial robots, card readers, test systems, pressing machines and power transmission drives, etc.

6. Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.

7. Others: Services, etc.

8. NIDEC adopts IFRS for its consolidated financial statements from the fiscal year ending March 31, 2017 and previous period amounts are also presented in accordance with IFRS.

10. Sales by Geographic Segment

    Yen in millions

    Nine months ended December 31, 2015		Nine months ended December 31, 2016		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    Japan	205,210	22.9%	208,669	24.0%	3,459	1.7%
    U.S.A.	147,586	16.5%	138,065	15.9%	(9,521)	(6.5)%
    Singapore	58,054	6.5%	44,612	5.2%	(13,442)	(23.2)%
    Thailand	80,149	9.0%	77,489	8.9%	(2,660)	(3.3)%
    Germany	64,485	7.2%	63,900	7.4%	(585)	(0.9)%
    China	230,402	25.7%	219,043	25.2%	(11,359)	(4.9)%
    Others	109,467	12.2%	116,450	13.4%	6,983	6.4%
    Total	895,353	100.0%	868,228	100.0%	(27,125)	(3.0)%

    Yen in millions

    Three months ended December 31, 2015		Three months ended December 31, 2016		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    Japan	65,141	21.1%	72,152	23.7%	7,011	10.8%
    U.S.A.	43,940	14.3%	43,920	14.5%	(20)	0.0%
    Singapore	20,429	6.6%	16,509	5.4%	(3,920)	(19.2)%
    Thailand	27,986	9.1%	28,898	9.5%	912	3.3%
    Germany	19,994	6.5%	19,503	6.4%	(491)	(2.5)%
    China	90,689	29.4%	81,006	26.6%	(9,683)	(10.7)%
    Others	39,822	13.0%	42,210	13.9%	2,388	6.0%
    Total	308,001	100.0%	304,198	100.0%	(3,803)	(1.2)%

    Note:

11. The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.

12. From the three months ended March 31, 2016, the sales by the Germany segment are separated from the Others segment as an individual segment whilst the sales by the Philippines segment are combined into the Others segment. Accordingly, previous period amounts have been reclassified.

14. Sales by Region

15. Yen in millions

    Nine months ended December 31, 2015		Nine months ended December 31, 2016		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    North America	171,020	19.1%	167,110	19.2%	(3,910)	(2.3)%
    Asia	465,229	52.0%	437,907	50.4%	(27,322)	(5.9)%
    Europe	112,438	12.5%	109,219	12.6%	(3,219)	(2.9)%
    Others	9,717	1.1%	14,476	1.7%	4,759	49.0%
    Overseas total	758,404	84.7%	728,712	83.9%	(29,692)	(3.9)%
    Japan	136,949	15.3%	139,516	16.1%	2,567	1.9%
    Total	895,353	100.0%	868,228	100.0%	(27,125)	(3.0)%

    Yen in millions

    Three months ended December 31, 2015		Three months ended December 31, 2016		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    North America	53,294	17.3%	52,318	17.2%	(976)	(1.8)%
    Asia	168,179	54.6%	161,641	53.2%	(6,538)	(3.9)%
    Europe	38,289	12.4%	36,250	11.9%	(2,039)	(5.3)%
    Others	3,650	1.2%	5,207	1.7%	1,557	42.7%
    Overseas total	263,412	85.5%	255,416	84.0%	(7,996)	(3.0)%
    Japan	44,589	14.5%	48,782	16.0%	4,193	9.4%
    Total	308,001	100.0%	304,198	100.0%	(3,803)	(1.2)%

    Note: The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.

    5. Other information (unaudited)

16. Summary of Consolidated Financial Performance

    24 January, 2017

    	Nine months ended December 31, 2015	Increase or decrease	Nine months ended December 31, 2016	Three months ended December 31, 2015	Increase or decrease	Three months ended December 31, 2016
    Net Sales	Yen in millions 895,353	％ (3.0)	Yen in millions 868,228	Yen in millions 308,001	％ (1.2)	Yen in millions 304,198
    Operating profit	90,286 10.1%	17.6	106,197 12.2%	30,683 10.0%	21.2	37,193 12.2%
    Profit before income taxes	92,467 10.3%	16.6	107,771 12.4%	30,320 9.8%	36.8	41,478 13.6%
    Profit attributable to owners of the parent	69,526 7.8%	17.4	81,638 9.4%	22,669 7.4%	39.1	31,528 10.4%
    Earnings per share attributable to owners of the parent -Basic	Yen 234.19	Yen 275.25	Yen 76.04	Yen 106.30
    Earnings per share attributable to owners of the parent -Diluted	233.05	275.25	76.04	106.30

17. Summary of Consolidated Financial Position and Cash Flows

    December 31, 2015	December 31, 2016	March 31, 2016
    Total assets	Yen in millions 1,452,311	Yen in millions 1,491,335	Yen in millions 1,376,636
    Total equity attributable to owners of the parent	797,673	833,337	763,023
    Ratio of equity attributable to owners of the parent to total asset	％ 54.9	％ 55.9	％ 55.4
    Nine months ended December 31, 2015	Nine months ended December 31, 2016	Year ended March 31, 2016
    Net cash provided by operating activities	Yen in millions 113,480	Yen in millions 102,996	Yen in millions 147,659
    Net cash used in investing activities	(79,337)	(56,929)	(95,377)
    Net cash provided by (used in) financing activities	27,773	(40,975)	7,775
    Cash and cash equivalents at end of period	324,931	314,813	305,942

18. Dividends

    	Interim dividend per share	Year-end dividend per share	Annual dividend per share
    Year ended March 31, 2016 (actual)	Yen 40.00	Yen 40.00	Yen 80.00
    Year ending March 31, 2017 (actual)	40.00	-	-
    Year ending March 31, 2017 (target)	-	45.00	85.00

19. Scope of Consolidation and Application of the Equity Method

Number of consolidated subsidiaries	234
Number of associates accounted for under the equity method	6

		Change from March 31, 2016	Change from December 31, 2015
Number of consolidated subsidiaries	(Increase)	11	12
	(Decrease)	2	15
Number of associates accounted for under the equity method	(Increase)	2	2
	(Decrease)	-	-

Note:

1. NIDEC adopts IFRS for its consolidated financial statements from the first quarter of the fiscal year ending March 31, 2017. Accordingly, the consolidated financial statements for the previous fiscal year and condensed quarterly consolidated financial statements for the nine months ended December 31, 2015 are also in accordance with IFRS.

2. The amounts of percentage in "(1) Summary of Consolidated Financial Performance" represent percentage of sales.

3. Earnings per share attributable to owners of the parent - Basic and - Diluted are calculated based on profit attributable to owners of the parent.

4. NIDEC finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2016.

Consolidated financial statements for the previous fiscal year and condensed quarterly consolidated financial statements for the nine months ended December 31, 2015 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.