Note Regarding gforward-looking Statements

Transcription

1 (TSE: 6594 NYSE: NJ) Nidec Corporation Fiscal 214 Financial Results Fiscal Year Ended d March 31, 215 <U.S.GAAP> April 23, 215 Note Regarding gforward-looking Statements These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management s targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group s ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the latest Form 2-F and Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required bylaw. The first slide features the transmission oil pump of Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt (currently, Nidec GPM GmbH) the company acquired on February 2,

2 Consolidated Profit/Loss Millions of Yen except for EPS and FX Rates FY213 FY214 Change FY215 Forecast Net 875,19 1,28, % 1,15, Operating Income 84, , % 1% 13, Operating Income Ratio 9.7% 1.8% % Income before Tax 84, , % 126, Net Income 56,272 76, % 9, EPS (Yen) % Dividends (Yen) FX Rate (Yen/US$) Average: Term end: % +16.8% 115. (Assumed) Adjusted based on the 2-for-1 split implemented as of April 1, 214. EPS and Dividends are expressed assuming that the stock split occurred at the beginning of FY Summary of FY214 Record-high net sales, operating income, income before taxes and net income Reached the 1 trillion yen mark in net sales and the 1 billion yen mark in operating income for the first time Total sales of Automotive, Appliance, Commercial and Industrial Products surpassed those of Small Precision Motors as a result of the strategic business portfolio transformation Total operating income for Automotive, Appliance, Commercial and Industrial lproducts crossed d1 billion Yen in 4Q CB conversion amounted to 74.3 billion Yen (78% of total). As a result, debt to equity ratio improved further as the year-end shareholders equity ratio rose to 55%, which surpassed the goal of 5% set originally for March 216 Calculated based on the remaining CB value of 95.75B Yen which is 1B (total issued CB value ) less 4.25B (early redemption put option) 4

3 FY215 Forecast Millions of Yen, except for EPS, dividends and FX rate 1H/FY215 2H/FY215 Full-Year Net 55, 6, 1,15, Operating Income 58, 72, 13, Operating Income Ratio 1.5% 12.% 11.3% Income before Tax 56, 7, 126, Net Income 4, 5, 9, EPS (Yen) Dividends (Yen) FX Rate (Yen/US$) FX Rate (Yen/Euro) Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY215 is estimated to have an annualized impact of 6.7 billion yen and.78 billion yen on sales, respectively, and.78 billion yen and.23 billion yen on operating income, respectively. 5 Consolidated Quarterly and Operating Income (LHS) Operating Income (RHS) Record-high (All figures in Billions of Yen) achieved Operating Japan Earthquake Income 1 Thai Floods 1 5 Lehman Crisis 5-5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY28 FY29 FY21 FY211 FY212 FY213 FY214 Structural Reform

4 Consolidated Cash Flow (Billions of Yen) Operating Activities Investing Activities Free Cash Flow (Operating CF + Investing CF) M&A Investment +5.2 billion Yen -15 M&A Investment billion Yen M&A Investment M&A Investment billion Yen billion Yen FY211 FY212 FY213 FY214 M&A investment: Acquisitions of business, net of cash acquired in Cash flows from investing activities Nidec Seimitsu Corp. (FY211), Nidec Minster Corp., Nidec ASI S.p.A., Nidec Avtron Automation Corp., Nidec Kinetek Corp., Nidec Kaiyu Auto Electric (Jiangsu) Ltd., SCD Co., Ltd. (FY212), Nidec Sankyo CMI Corp., Nidec Elesys Corp. (FY213) and Nidec GPM GmbH (FY214) 7 (Billions of Yen) 8 CAPEX, Depreciation and R&D CAPEX Depreciation R&D FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 (Forecast) (Forecast) (Forecast) 8

5 Dividends Dividend payments continue to increase with growing business results since the structural reform (Yen per share) (Yen) 12 Dividends (LHS) EPS (RHS) FY212 FY213 FY214 FY215 (Forecast) Adjusted based on the 2-for-1 stock split implemented as of April 1, 214. The figures for FY212 and FY213 are expressed assuming that the stock split occurred at the beginning of FY Mid-Term Strategic Goal Vision 22 This section includes forward-looking statements. See disclaimer on page 2 of this presentation. 1

6 FY22 New Mid-Term Strategic Target Continuous pursuit for profit & strong growth 1. Target for consolidated d net sales: 2 trillion Yen (including new M&A of approx. 5 billion Yen) 2. target for automotive: 7 billion to 1 trillion Yen 3. Target for consolidated operating income ratio: 15% 4. Target for ROE: 18% (Assuming shareholders equity ratio of 6%) 5. Five regional HQ management 11 Targets for Net and Operating Income Ratio Aiming for both sales growth (organic + M&A) and profitability enhancement ( in Trillions of Yen) (Operating Income Ratio, %) % % 13.7% 571.6B 676.B 682.3B 1.7% 1.8% 79.3B 875.1B 9.7% 1.3T 1.15T 11.3% Organic Growth + M&A (CAGR approx. 12%) Organic growth (CAGR approx. 7%) 2T New M&A Approx.5B % FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY2 Structural (Forecast) (Target) Reform 12

7 Pursuing Both Strong Growth with Profit and Financial Soundness Targeting operating income ratio of 15% and ROE of 18% while sustaining and improving financial soundness (The average ROE during the ten years through FY214 was 12.3%) (Billion yen) Net cash by March 216 in sight (%) 1,5 Shareholders Equity (LHS) ROE (RHS) 6.% 65% Shareholders Equity Ratio (RHS) Operating Income Ratio (RHS) Shareholders equity ratio 55.% 6% 1,2 surpassed 5% one year ahead of plan 49.1% Equity Ratio 55% 47.5% 46.2% 44.4% The three elements for 5% % ROE improvement 41.3% Net profit on sales 45% Total asset turnover Financial leverage % 8.9% % 15.% 13.9% 13.7% % 1.7% % 2.% % 9.7% 12.1% 1.8% ROE Operating Income Ratio FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY2 Lehman Crisis Structural Reform (Target) 18% 15% 2% 15% 1% Japan Credit Rating Agency, Ltd. (JCR) upgraded our long-term issuer rating by one notch from A+ to AA- as of Oct. 1, % % 13 Business Structure to Support Profitable Global Growth Matrix management structure with five regional HQ Strengthening bases for growth strategy Global organic growth Accelerating post merger integration of overseas acquisitions Management function by business Small Appliance, Other Automotive Precision Commercial Product Motors & Industrial Groups 2. China 1. Japan Regional HQ began operating in Jan 212 Roles of regional Headquarters 3. Asia 2. China 1. Improve management quality From individual management by (Governance, Compliance, Internal Control) country to regional integration 3. Asia 4. Americas 2. Improve management efficiency (TBD) Regional HQ began operating in (High quality & cost effective shared services) Oct 214 4A 4. Americas 3P 3. Proactive PMI support for 5. EMEA Reorganization registration filed in acquired companies Mar EMEA function by nction l corporate gion and fun Regional reg EMEA: Europe, the Middle East and Africa 14

8 Targets for Net in FY22 by Category Accelerate topline growth with focused allocation of management resources in fast growing areas di driven by technological linnovations (: Billions of Yen) FY22 : 2 Trillion Yen (Target) 7B to 1 T FY21 : 676. Billion Yen FY215 : 1.15 Trillion Yen (Target) New M&A 5 (: Billions of Yen) (: Billions of Yen) 4 to 6 4 to 6 4 Key Growth Areas Small Precision Motors 69.2 Automotive 94.2 Appliance, Commercial & Industrial Other Product Groups 3 28 Small Precision Motors Automotive Appliance, Commercial & Industrial 17 Other Product Groups Small Precision Motors Automotive Appliance, Commercial & Industrial 2 to 3 Other Product Groups 15 FY215 and Profitability Targets by Product Category Small Precision Motors ( in Billions of Yen) Appliance, Commercial & Industrial (Operating Income in Billions of Yen) 4 to 6 FY11 FY12 FY13 FY14 FY15 FY2 (Forecast) (Target) 12 ( in Billions of Yen) 1T 1.T 4 Yen Automotive 3. Operating Income to T FY11 FY12 FY13 FY14 FY15 FY2-2. (Forecast) (Target) (Operating Income in Billions of Yen) Other Product Groups (Operating Income in (Operating Income in ( in Billions of Yen) Billions of Yen) ( in Billions of Yen) Billions of Yen) to FY11 FY12 FY13 FY14 FY15 FY2 (Forecast) (Target) to 3 FY11 FY12 FY13 FY14 FY15 FY2 -.6 (Forecast) (Target)

9 Nidec HDD Motor Shipment Outlook While FY215 HDD shipments are expected to remain flat, Nidec s market share is estimated to increase (Millions of Units) 16 HDD Shipments Nidec Motor Shipments Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY214 (Actual) FY215 (Forecast) (Nidec estimates based on various sources) 17 HDD Market Trend (1) Demand for PC gradually falling while data center application increasing solidly (Millions of Units) 6 PC External Consumer Electronics Data Center Enterprise (Near Line Drive) CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY2 (Nidec estimates based on various sources) 18

10 HDD Market Trend (2) HDD playing a major role in data storage in the era of Big Data Comparison of data storage media Media Characteristics (Advantage / Disadvantage) Application Judgment HDD High capacity and cost performance / no major disadvantages Major role in data storage Good SSD Tape (Millions of Units) High speed access / less competitive in price, capacity and durability Data safely stored in the event of catastrophe / not suitable for network connection Frequently accessed data storage Off-line cold storage <HDD Shipment forecast for data center application> More than double 91 Fair Fair CY14 CY15 CY16 CY17 CY18 CY19 CY2 (Nidec estimates based on various sources) 19 Other Small Precision Motor Trend (1) Enhancing the Two Approaches Customer-Specific, Application-Specific, Cross-Application Approach Cross-Customer Approach De eepening e.g., Company X (global appliance manufacturer) Motor demand from major appliance Approx. US$3.5B (Nidec estimate) e.g., Cleaning robot application Widening Company A s Cleaning Robot Company B s Cleaning Robot Company C s Cleaning Robot Company D s Cleaning Robot Company E s Cleaning Robot manufacturers Adopted! Adopted! Adopted! Adopted! Adopted! Build up customer information thru App-Specific Approach Proposing Solutions Make proposals in advance, across industries Take proactive strategy by anticipating customer s demand e.g., Modularization of product using non- customized chips Driver 2

11 Other Small Precision Motor Trend (2) New Product, New Market and New Customer Challenge Example l 1: Vibration motor market Example 2: New Market Haptic Devices (Billion Units) <Outlook of vibration motor market> Gaming Console Strong growth in Smartphones 2.7 Feature Phones CY14 CY15 CY16 CY17 CY18 (Nidec estimates based on various sources) <Image of products using haptic technology> Smartphones Smaller devise Thin linear Vibration motor PC and Tablets Built-in vibration motor in touch panel Smartphones Automotive Wearables Vibration motors around the driver s seat Feedback when touching the device e.g., Watches 21 Quarterly Trends Automotive, Appliance, Commercial and Industrial Products Aiming to maintain the upward trend of sales and operating income beginning from the structural reform into FY215 (LHS) (Operating Income (RHS) ( in Billions of Yen) (Operating Income in Billions of Yen) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY211 FY FY213 FY214 FY (Actual) (Actual) (Actual) (Actual) (Forecast) Structural Reform Please refer to Notes on page

12 New Mid-Term Strategic Goal for Auto Targeting 1 trillion Yen sales by FY22, through focus on synergies and M&A ( in Billions of Yen) 1 Trillion 7B to 1 T Strategy 1 Speed up sales growth through modularization and electrification Integrating Nidec Group, differentiating 8 products through modularizing to accelerate speed of growth Initiate strategic in-house production Strategy 2 through process renewal Large-scale orders enable us to step up in- house production of parts. Aggressively pushing to enhance profitability Strategy 3 Realize large-scale M&A FY14 FY15 FY16 FY17 FY18 FY19 FY2 (Forecast) (Target) Well-timed large-scale cross border business acquisitions in the waves of market consolidation greater synergies among Nidec operations 23 Automotive Market Environment (1) Speeding up globalization process to take advantage of larger order flows OEMs are expanding adoption of common platforms to various models of cars Model A Model B Model C Model D Model E Tier 1 customers are expanding their operational size globally, and pushing themselves toward electrification Electrification Modularization Larger order flows Tier 1 customers are focusing more on local production for local consumption with larger order flows Increase in-house capability of parts 24

13 Automotive Market Environment (2) Increase in adoption of AEBS driving rapid expansion of ADAS market (Million cars) 2 Previous estimate (October 23, 214) ADAS-equipped car production estimates (Million cars) 2 Updated estimate 2 million 15.2 million Strong upward revision CY16 CY17 CY18 CY19 CY2 CY16 CY17 CY18 CY19 CY2 AEBS: Advanced Emergency Braking System 25 ADAS: Advanced Driver Assistance Systems (Nidec estimates based on various sources) Pursue Differentiation through Modularization Maximizing One Nidec synergies to enhance both sales and profit growth Examples p of Modularization of Auto Parts (1) EPS Power Pack (2) EOP Power Pack Nidec Nidec Elesys Nidec Nidec Elesys Nidec Tosok Nidec GPM ECU Inverter Motor Motor Pump EPS Power Pack Case EOP Power Pack Plan to introduce ultra-small power pack for EPS with highly reliable safety functions EPS: Electric Power Steering EOP: Electric Oil Pump 26

14 Global Network to Support Local Production for Local Consumption Driving full-fledged in-house production of components enhanced by large-scale orders NMA Poland NMA Germany NMA Spain Nidec (Dalian) Nidec (Zhejiang) Nidec GPM (Suzhou) Nidec Elesys Nidec Sankyo CMI Nidec GPM (Germany) Nidec Automobile Motor (Zhejiang) Nidec Elesys (Zhongshan) Examples of in-house products Pressed parts Production tools Nidec Automotive Motor (Juarez) Nidec Tosok (San Luis Potosi) Nidec Elesys Americas Nidec India Molded Parts Processed shafts Nidec Elesys (Thailand) Processed housings Die cast parts Nidec Tosok (Vietnam) (die casting) Nidec Tosok (Auto Parts) NMA: Nidec Motors & Actuators Nidec GPM (Brazil) Nidec India Private Limited: Starting production in July, 215 Nidec Tosok de Mexico, S.A. de C.V. : Starting production in May, Seeking Higher Market Shares in Global Auto Parts Aiming to become one of the leading global suppliers in the electrification age (Million Units) EPS market and Nidec s Target FY22 Aim for 5% 2 market share 67 7 (Million Units) DCT market and Nidec s Target FY22 Aim for 7% market share FY16 FY17 FY18 FY19 FY2 (Million Units) EOP market and Nidec starget Market FY16 FY17 FY18 FY19 FY2 Nidec Group (Million Units) EWP market and Nidec starget FY22 Aim for 3% market share 14 7 FY22 Aim for 2% market share FY16 FY17 FY18 FY19 FY2 FY16 FY17 FY18 FY19 FY2 DCT: Dual Clutch Transmission EWP: Electric Water Pump (Nidec estimates based on various sources) 28

15 New Mid-Term Strategic Targets for ACIM Adding value by evolving from discrete product to solution provider ( in Billions of Yen) to 6 Strategy 新中期戦略目標 1 5 Market Approaches Sharing best practices among acquired companies Strategy 2 Steady Organic Growth Maximizing sales & profitability on back of transition to BLDC and invertors 15 FY14 FY15 FY16 FY17 FY18 FY19 FY2 (Forecast) (Target) Strategy 3 Proposing Solutions Transforming the nature of business from discrete product to solution provider ACIM: Appliance, Commercial & Industrial Motor BLDC: Brushless Direct Current Motors 29 5 Markets of ACIM Serving markets with a globally integrated structure Nidec Techno Motor Nidec Sole Motor Nidec Motor Corporation Nidec Kinetek Nidec ASI Nidec Avtron Automation FY8 FY9 FY1 FY11 FY12 FY13 FY14 Sharing best practices in areas such as strategy planning, CFO function, HRM, R&D, intellectual property and purchasing Nidec Techno Motor Global Appliance Commercial & Residential Solutions Elevator & Drive Systems Industrial Solutions Air conditioning motors, high efficiency industrial motors Motors for washing machines, dryers, dishwashers and kitchen ventilators Commercial & residential air conditioner motors, pool & spa pumps, gear motors for kitchen appliances Elevator packages and related products, drives systems for autonomous electric devices Motors for industrial equipment and machines, power electronic products such as drives (invertors), automation 3

16 Evolution of ACIM Business Model Adding value by evolving from discrete product to solution provider Motors Generators Drives & Controls Gears & Gearboxes Service & Distribution Automation Platform Expand Customer r/market Depth Industrial Solutions Elevator & Drive Systems Commercial & Residential Solutions Global Appliance Nidec Techno Motor Renewable Energy Storage System Elevator packages Low speed electric vehicle China new energy vehicle Automated Guided Vehicle Integrated motordrive system Aftermarket South East Asia China Europe / Middle East Americas Japan Expan nd Geogra aphic Reac ch Discrete Product Module Sale Solution Sale Internet of Things 31 Long-Term Vision: Aiming for 1 Trillion Yen by FY23 Continuous growth for 42 years by turning big dreams into reality FY23 target 1T Yen sales FY225 target 5T Yen sales Initial Public Listed on NYSE It all started with just 4 Offering NewHQon 3 th anniversary FY 22 target 2T Yen sales & 15% operating income ratio Reached 1T Yen Production of spindle motors for 8 HDDs Expanded axial flow fans thru US acquisition Began R&D of auto motors Expanded Appliance & Commercial motors Set foot into solar & wind power generation Operating Income First growth phase (FY) Second growth phase 32

17 Business Structure Eyeing FY23 Facilities to promote in-house development of fundamental R&D capabilities, optimum production engineering methods and global talent Corporate university to transplant Nagamori-ism to prospective executives Nidec R&D Center, Japan (Opened in June 212) The Lab aims to realize optimum ti production d ti engineering methods suited for the age of Industry 4. Rendering Rendering Nidec Business School Production Engineering Laboratory (Scheduled to open in FY 216) (Scheduled to open in FY 216 or later) 33 Aiming to Create New Large Businesses for 1 Trillion Yen Adding values of Nidec Group products through Internet of Things Machine to machinemachine based IoT solution S Smart t Factory S Smart t AGV Control cloud server Application/solution Platform S Smart t Press S Smart t Energy Big data analysis IoT visualization engine tool Internet or Intranet N t Network k Factory access point Device Smart hub Build a system based on our expertise on devices Sensor Measuring equipment AGV Manufacturing equipment Power conditioner Connect to cloud servers using sensingg & communication terminals Production line Logistics AGV: Automated Guided Vehicle Photovoltaic Industries generation/irrigation 34 pump

18 Nidec IR Contacts Japan Tel: U.K. Tel: U.S. Tel: Notes: Pursuant to ASC 85 Business Combinations, consolidated financial statements for 4QFY213,1QFY214 and 2QFY214 have been retrospectively adjusted to reflect our valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation in the fiscal year ended March 31, 214. During 3QFY214, we completed our valuation of such assets and liabilities of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation. 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. 35 Appendix Performance Trends & Product Group Overview 36

19 by Product Group (FY214) Electronic & Optical Components Camera shutters, switches, trimmer potentiometers, processing, precision plastic mold products Machinery Industrial robots, circuit board testers, high-speed pressing machines, chip mounters, measuring equipment, power transmission equipment, factory automation system, card readers Automotive, Appliance, Commercial and Industrial 44.7% Products Others 9.6% (9.9%).6% (.9%) Appliance Commercial Industrial 25.6% (25.8%) Parenthetic percentages represent FY213 mix Logistics, services, musical products 6.3% 38.7% (8.3%) 1,28.4B HDD Motors 19.8% Auto 19.1% (13.6%) (21.2%) 18.9% (2.2%) Small Precision Motors (41.4%) Other Small Motors Optical disk drive motors OA equipment motors polygon scanners MPU cooling fans game machine fans PC/communications equipment fans, home appliance fans, automobile fans, vibration motors, brush motors, (39.5%) stepping motors, actuator units 37 Consolidated & Operating Income (Billions of Yen) (Billions of Yen) (LHS) Operating Income (RHS) Operating Income Ratio % 1.9% 1.8% % 98% 1% % 1.4% 1.1% % Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q Please refer to Notes on page

20 Consolidated Income Before Tax & Net Income (Billions of Yen) 35 Consolidated Income Before Tax Consolidated Net Income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q Please refer to Notes on page Small Precision Motors (Billions of Yen) Operating income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q for Other Small Precision Motors (LHS) for HDD Motors (LHS) Operating Income (RHS) 4

21 Automotive, Appliance, Commercial and Industrial Products (Billions of Yen) Operating income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q for Automotive (LHS) for Appliance, Commercial, Industrial (LHS) Operating Income (RHS) Please refer to Notes on page Machinery (Billions of Yen) Operating income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q (LHS) Operating Income (RHS) 42

22 Electronic & Optical Components (Billions of Yen) Operating income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q (LHS) Operating Income (RHS) 43 Others (Billions of Yen) Operating income Q/FY13 2Q 3Q 4Q 1Q/FY14 2Q 3Q 4Q 1.5 (LHS) Operating Income (RHS) 44