TSE: 6594 NYSE: NJ
http:// www.nidec.com/en-Global/
Three and Nine Months Ended December 31, 2015
January 21, 2016
Note Regarding Forward-looking Statements
These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the latest Form 20-F and Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.
The photograph on the first slide features wearable cameras equipped with Nidec Sankyo's newly developed image stabilization system. Nidec Sankyo's new image stabilizer effectively suppresses blurring associated with motion and/or shaking caused by the wearer's body movements, or high-frequency vibrations generated by robots and drones, capturing clearer and sharper images.
2
Consolidated Profit/Loss
3Q FY2014 (Apr-Dec) | 3Q FY2015 (Apr-Dec) | Change (%) | FY2015 Forecast | |
Net Sales | 753,766 | 895,353 | +18.8% | 1,150,000 |
Operating Income | 80,727 | 93,990 | +16.4% | 130,000 |
Operating Income Ratio | 10.7% | 10.5% | - | 11.3% |
Income Before Tax | 81,309 | 94,357 | +16.0% | 126,000 |
Net Income | 58,031 | 70,928 | +22.2% | 90,000 |
EPS (Yen) | 209.27 | 238.91 | +14.2% | 302.84 |
FXRate Average: (Yen/US$) Term end: | 106.87 120.55 | 121.70 120.61 | +13.9% +0.0% | 115.00 (Assumed) |
Millions of Yen, except for percentages, EPS and FX Rates
Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY2015 is estimated to have an annualized impact of 6.80 billion yen and 1.00 billion yen on sales, respectively, and
0.90 billion yen and 0.25 billion yen on operating income, respectively.
3
Summary of 3Q FY2015
Record-high nine months nets sales, operating
income,
income before taxes and net income
Net sales and operating income increased for eight and eleven consecutive quarters, respectively, marking the highest-ever levels.
Cash and cash equivalents exceeded interest-bearing debt for the first time in 23 quarters, which was
achieved three months ahead of plan.
Financial base
and financial discipline were strengthened eyeing
Vision 2020.
4
Consolidated Quarterly Net Sales and Operating Income
Eight consecutive quarters of net sales increase
and eleven consecutive quarters of operating income increase
350 Net Sales (LHS) Operating Income (RHS) 35
(All figures in Billions of Yen)
300 30
250 25
Operating Income
Net Sales
200 20
150 Japan 15
Earthquake
Thai
100 Floods 10
50 5
Lehman Crisis Structural Reform
0 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-50
FY2008
FY2009
-5
FY2010 FY2011 FY2012 FY2013 FY2014 -25.4
5
HDD Market Trend
Nidec's market position edged up while total HDD demand remained weak
Previous FY2015 Forecast (Oct. 22, 2015)
HDD Shipments
Nidec Motor Shipments
Revised FY2015 Forecast (Jan. 21, 2016)
(Millions of Units)
160
(Millions of Units)
160
120 110 116 117113
120
119
110113
100
80 80
40 87 99 95 94
40 87 99 9683
0
FY15/1Q
2Q
3Q
4Q
0
FY15/1Q
2Q
3Q
4Q
(Actual)
(Actual)
(Forecast)
(Forecast)
(Actual)
(Actual)
(Actual)
(Forecast)
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
(Nidec estimates based on various sources) 6
Groundbreaking Technologies Reshaping Social Landscape
New business opportunities surging toward 2020 and beyond
HMI
Stricter power efficiency
driving
EV/PHEV
requirements Autonomous
(Human Machine
Interface)
Falling birthrate and aging society in developed countries
Electronic control of road transport
Resource saving, recycling,
IoT AI* Smartfactory
eco-conscious design/production
(Ecology)
Sophistication of communications infrastructure
Robotics
Drone
Power assist suit
Wearable VR Renewable
Data analysis and processing (AI*) device
*AI: Artificial Intelligence
(Virtual reality)
energy
7
Human-Machine Interface (HMI)
Nidec's technologies contribute to connecting humans and machines
pportiI>
ee interlocked technologies su
Sensors
Software
Motors
(Input)
(AI and CPU)
(Output)
ADAS (Advanced Driver Assistance Systems ) Display Display
Example (2)
IT
Lane keep
Millimeter
Camera
Surround view Rearview Occupant
Head-up display (HUD) motor
assist system wave radar module for camera lens
camera
detection
Tactile device
Tactile device
(LKAS) unit unit
sensing
camera
unit
module system
(ODS) unit
Seat tactile motor
Switch
Example (1) Automotive
8
Robotics Products
Penetrating applied fields with Nidec's core driving technology
AC servo motor
Brushed DC motor
Camera and Sensor
Communication robot
Wide-angle image stabilizing system (TiltAC)
Wide angle camera module
Brushless DC motor
Drone
Wheel-in motor
Interface Capability
KINETEK Robot
cleaner
Stepping motor
KINETEK
Customized keypad and HMI assembly
Custom-engineered touchscreen and front panel integration
Smart AGV
Reducer
Tactile device
Seimitsu Battery charger
KINETEK Speed reducer (ABLE) Ultra-small/flatreducer
for robots
Motor contained actuator 9
Examples of Subsidiaries Back on Growth Platform
Fresh flow of new products refreshing business portfolio
(Sales in Billions of Yen) (Sales in Billions of Yen)
100% ownership
100% ownership
200 acquisition
(Oct. 2012)
100
acquisition (Oct. 2013)
100 50
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY20
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY20
(Forecast) (Target) (Target) (Target) (Forecast) (Target) (Target) (Target)
Automotive
Energy conservation
Labor saving
Automotive lenses/cockpit
Pump related products/housing and automation
Automation of back-end process of LCD panels/
semiconductor EFEM* robots
Mobile Automotive
Industrial, medical,
nursing care and services
Image stabilization, auto- focus/tactile devices
View cameras, sensor cameras/tactile devices
Laser marker/
ultra-small geared motors
*EFEM: Equipment Front End Module 10
Nidec Center for Industrial Science
Aiming to Be a Representative Manufacturer of 21st Century
Manufacturing capability is the key to achieve 10 trillion yen sales in FY2030
Conceptual drawing: Nidec Center for Industrial Science
(Scheduled construction period: October 2016 to December 2017)
Addresses technological challenges in product creation reflecting future needs
Plays a pivotal role in optimizing production technology on a group-wide basis
Fosters a world-class manufacturing engineering talent pool
11
Nidec Brands Debut at CES*
Many business opportunities obtained through first participation in CES
Robotics
Intelligent drive motors (motor control technology), camera modules
Tactile devices
Tactile modules, oscillatory actuators, virtual reality system components, interface products (human-machine interface)
Commercial robotics
Smart automatic guided vehicles, commercial drones, vertical six-axis robots
*CES (Consumer Electronics Show): The world's largest appliance trade show held in Las Vegas, Nevada, U.S.A. CES 2016 was held from Jan. 6 to 9, 2016. 12
Nidec IR Contacts
Japan | Tel: +81-75-935-6140 | E-mail: ir@nidec.com |
U.K. | Tel: +44-870-351-7388 | E-mail: iwai.yuji@nidec.com |
U.S. | Tel: +1-212-703-7988 | E-mail: nagase.kiyoshi@nidec.com |
*Notes:
Pursuant to FASB Accounting Standards Codification (ASC) 805 "Business Combinations," Nidec is currently evaluating the assets and liabilities acquired in the fiscal year ending March 31, 2016. These assets and liabilities have been recorded on its consolidated balance sheet based on preliminary management estimation as of December 31, 2015. Consolidated financial statements for the six months ended September 30, 2015 have been retrospectively adjusted to reflect the assets and liabilities of which fair value evaluation is completed.
Nidec logo is a registered trademark or a trademark of Nidec Corporation in Japan, the United States and/or certain other countries. "All for dreams" logo is a registered trademark of Nidec Corporation in Japan, and a trademark in the United States and/or certain other countries.
13
Appendix
14
Sales by Product Group (Apr-Dec FY2015)
Electronic & Optical Components
Camera shutters, switches, trimmer potentiometers, processing, precision plastic mold products
Machinery
Industrial robots, circuit board testers, high-speed
Others
0.4%
(0.7%)
5.5%
(6.5%)
8.8%
(9.4%)
Parenthetic percentages represent FY2014 mix
Services,
musical products
Small Precision Motors
39.3%
(39.1%)
HDD Motors
18.1%
pressing machines, chip mounters, measuring equipment,
power transmission equipment, factory automation system, card readers
Automotive, Appliance, Commercial and Industrial
45.9%
Appliance Commercial Industrial
23.2%
(25.4%)
895.4B
Auto 22.7%
(18.8%)
(19.7%)
21.2%
(19.4%)
Other Small Motors
Optical disk drive motors, OA equipment motors, polygon scanner motors, MPU cooling fans,
game machine fans, PC/communications equipment fans, home appliance fans, automobile fans, vibration motors, brushed motors,
Products
(44.2%) stepping motors,
actuator units
15
Financial Highlights
(Billions of Yen) (Billions of Yen)
Sales Operating Income Operating Income Ratio (%)
240.2249.3
264.3
274.6
285.0
302.3308.0
Consolidated Income Before Tax Consolidated Net Income
26.9
25.0
28.8
30.2
30.7
31.1
32.2
24.5
32.3
29.8
27.1 25.8
23.8
31.0 31.0
23.8 23.3
10.4%
10.8% 10.9% 11.0%
10.8%
10.3%
10.4%
17.6
19.1
21.3
18.0
1Q/FY14 2Q 3Q 4Q 1Q/FY15 2Q 3Q
1Q/FY14 2Q 3Q 4Q 1Q/FY15 2Q 3Q
(Yen/share) (Billions of Yen)
Operating Activities Investment Activities Free Cash Flow
Year-end Interim Consolidated EPS (Full-year)
303 (Target)
113.4
272
207
40.0
40.0 (Target)
56.1
15.7
34.1
27.5
22.530.0
40.0
-40.3
-79.3
FY13 FY14 FY15
3Q/FY14 (Apr-Dec) 3Q/FY15 (Apr-Dec)
*Please refer to Notes on page 13. 16
Product Group Overview
(Billions of Yen) (Billions of Yen)
Sales Operating Income
*Please refer to Notes on page 13.
Sales Operating Income
15.6
15.1
16.7
15.7
17.7
18.1
19.1
110.2
108.1
114.9
126.7
137.3
138.9
134.8
89.9100.4
104.8
102.9
104.1
118.5
129.6
8.6
8.6
9.3
10.0
10.8 * 10.6 *
11.3
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q
(Billions of Yen) (Billions of Yen)
Sales Operating Income
Sales Operating Income
22.322.7
26.1
27.7
4.7
26.7
26.9
25.6
16.2
16.3
16.7
15.8
15.8
16.7
16.7
3.8
2.8
4.9
4.1 4.1
3.8
1.1
1.3
1.3
1.4
1.6
2.0
1.8
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 17
This section includes forward-looking statements. See disclaimer on page 2 of this presentation.
18
FY2020 New Mid-Term Strategic Target
Target for consolidated net sales: 2 trillion yen (including new M&A of approx. 500 billion yen)
Sales target for automotive: 700 billion to 1 trillion yen
Target for consolidated operating income ratio: 15%
Target for ROE: 18%
(Assuming shareholders' equity ratio of 60%)
Five regional HQ management
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
19
Targets for Net Sales and Operating Income Ratio
Aiming for both sales growth (organic + M&A) and profitability enhancement
(Net Sales in Trillions of Yen) (Operating Income Ratio,%)
2.5 15% 15
2
1.5
13.9%
13.7%
10.7% 10.8%
9.7%
11.3%
Organic Growth + M&A (CAGR approx. 12%)
Net Sales
2T
New M&A Approx.500B
10
Net Sales
Net Sales
1.15T
Organic growth
1
0.5
Net Sales
571.6B
Net Sales
676.0B Net Sales
682.3B
Net Sales
709.3B
Net Sales
875.1B
T (CAGR approx. 7%)
5
2.5%
0 0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY20
Structural
(Forecast)
(Target)
Reform This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 20
Pursuing Both Strong Growth with Profit and Financial Soundness
Targeting operating income ratio of 15% and ROE of 18% while sustaining and improving financial soundness
(The average ROE during the ten years through FY2014 was 12.2%)
(Billions of Yen)
1,500
Shareholders' Equity (LHS)
ROE (RHS)
Positive net cash by March 2016 in sight
60.0%
(%)
65%
Shareholders' Equity Ratio (RHS)
Operating Income Ratio (RHS)
60%
1,200
49.1%
47.5%
Shareholders' equity ratio
surpassed 50% one year ahead of plan
54.9%
Equity Ratio
55%
900 42.3%
46.2%
41.3%
44.4%
745.0
The three elements for ROE improvement
Net profit on sales
Total asset turnover
Financial leverage
50%
45%
600
300
9.2%
16.3%
15.0%
13.9% 13.7%
11.2%
415.7
518.0
12.1%
12.0%
ROE
Operating Income Ratio
18%
15%
20%
15%
10%
8.9%
297.1
0
340.3
355.3
10.7%
370.2
2.5%
2.0%
10.8%
9.7%
5%
0%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY20
Lehman Crisis
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
Structural Reform
(Target)
21
Japan Credit Rating Agency, Ltd. (JCR) upgraded our long-term issuer rating by one notch from A+ to AA- as of Oct. 1, 2014.
Business Structure to Support Profitable Global Growth
Matrix management structure with five regional HQ
Strengthening bases for growth strategy
Global organic growth
Accelerating post merger integration of
Small
Management function by business
Appliance,
Other
Precision Auto-
Commercial
Product
overseas acquisitions
Motors motive & Industrial Groups
China
Regional HQ began operating in Jan 2012
Asia
From individual management by country to regional integration
Americas
Regional HQ began operating in Oct 2014
EMEA*
Reorganization registration filed in Mar 2015
Regional corporate function by region and function
Japan
China
Asia
(TBD)
Americas
EMEA
Improve management quality
(Governance, Compliance, Internal Control)
Improve management efficiency
(High quality & cost effective shared services)
Proactive PMI support for acquired companies
Roles of regional Headquarters
* EMEA: Europe, the Middle East and Africa
22
Targets for Net Sales in FY2020 by Category
Accelerate topline growth with focused allocation of management resources
in fast growing areas driven by technological innovations
(Sales: Billions of Yen)
FY2020
Net Sales: 2 Trillion Yen (Target)
700B
to 1 T
FY2010
Net Sales: 676.0 Billion Yen
(Sales: Billions of Yen)
FY2015
Net Sales: 1.15 Trillion Yen (Forecast)
(Sales: Billions of Yen)
400
to 600
New M&A 500
400
to 600
400 Key Growth Areas
348.4
Small Precision
94.2
164.2
Small Precision
300 280
170
Small Precision
Automotive
200
to 300
MotorsAppliance,
Commercial
& Industrial Other
Motors AutomotiveAppliance,
Commercial
Motors
Appliance, Commercial
69.2
Automotive
Product
Groups
& Industrial Other
Product Groups
& Industrial
Other
Product Groups
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 23
FY2015 Sales and Profitability Targets by Product Category
Small Precision Motors Automotive
(Sales in Billions of Yen)
(Operating Income in Billions of Yen)
(Sales in Billions of Yen) (Operating Income in Billions of Yen)
600 120
400
1.0T
Yen
300.0
120
331.4
319.7
300
54.2
362.5
56.7
398.0
63.1
400.0
400
to 60
600
200
0
84.3 86.7
3.3
119.2
6.7
197.0
16.4
700 60
to
1 T
0
FY11 FY12 FY13 FY14 FY15 FY20
0 22.6 0
FY11 FY12 FY13 FY14 FY15 FY20
(Forecast) (Target)
-200
-2.0
(Forecast) (Target)
-60
Other
P
r
oduct
G
r
oups
Appliance, Commercial & Industrial Other ProductGroups
(Operating Income in (Operating Income in
(Sales in Billions of Yen) Billions of Yen) (Sales in Billions of Yen) Billions ofYen)
600 60
300 40
300
124.2
161.8
4.6
15.5
20.1
263.0280.0
400 30
to
600
150
0
142.4
14.9
141.1
167.4170.4
21.9
13.9
170.0
200
to 20
300
0
6.1
0
226.1
FY11 FY12 FY13 FY14 FY15 FY20
-20
-150
0 -0.6 (Forecast) (Target)
FY11 | FY12 | FY13 | FY14 | FY15 | FY20 |
(Forecast) | (Target) |
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 24
Nidec Corporation issued this content on 2016-01-21 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-21 08:09:05 UTC
Original Document: http://www.nidec.com/en-Global/corporate/news/2016/news0121-01/