NIDEC CORPORATION FOR IMMEDIATE RELEASE
Contact:
Masahiro Nagayasu General Manager Investor Relations
+81-75-935-6140
ir@nidec.com
UNAUDITED INTERIM FINANCIAL STATEMENTS (U.S. GAAP)
(English Translation)Released on October 21, 2015
NIDEC CORPORATION
Stock Listings: Tokyo Stock Exchange, New York Stock Exchange
Head Office: Kyoto, Japan
Date of Filing of Japanese Quarterly Securities Report (Plan): November 13, 2015
Date of Commencement of Dividend Payment (Plan): November 30, 2015
Selected Consolidated Financial Performance Information for the Six Months Ended September 30, 2015 (U.S. GAAP) (unaudited)
Consolidated Results of Operations
Yen in millions
(except for per share amounts) Six months ended September 30
2015 2014
Net sales ¥587,352 ¥489,511
Ratio of change from the same period of previous fiscal year 20.0% 13.9%
Operating income 61,850 51,923
Ratio of change from the same period of previous fiscal year 19.1% 32.0%
Income before income taxes 63,409 51,538
Ratio of change from the same period of previous fiscal year 23.0% 34.1%
Net income attributable to Nidec Corporation 47,622 36,713
Ratio of change from the same period of previous fiscal year 29.7% 35.5%
Net income attributable to Nidec Corporation per share-basic ¥160.75 ¥133.11 Net income attributable to Nidec Corporation per share-diluted ¥159.57 ¥124.85
Note:
Comprehensive income attributable to Nidec Corporation:
¥30,522 million of comprehensive income attributable to Nidec Corporation for the six months ended September 30, 2015 (55.8 % decrease compared to the six months ended September 30, 2014)
¥69,007 million of comprehensive income attributable to Nidec Corporation for the six months ended September 30, 2014 (51.4% increase compared to the six months ended September 30, 2013)
Consolidated Financial Position
Dividends (unaudited)
Year ending March 31, 2016
Yen
Year ended March 31, 2015
(target) (actual)
Interim dividend per share ¥40.00 ¥30.00
Year-end dividend per share 40.00 40.00
Annual dividend per share ¥80.00 ¥70.00
Note:
Revision of previously announced dividend targets during this reporting period: None
Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2016)
Inc./Dec. ratio of
Yen in millions
(except for per share amounts)
change from the previous fiscal
year
Net sales
¥1,150,000
11.8%
Operating income
130,000
17.2%
Income before income taxes
126,000
17.7%
Net income attributable to Nidec Corporation 90,000 18.4% Net income attributable to Nidec Corporation per share-basic ¥302.84
Note:
Revision of the previously announced financial performance forecast during this reporting period: None
Others
Changes in significant subsidiaries (changes in 'specified subsidiaries' (tokutei kogaisha) accompanying changes in the scope of consolidation) during this period: None
Adoption of simplified accounting methods and accounting methods used specifically for quarterly consolidated financial statements: Yes (See '2. Others' on page 16 for detailed information.)
Changes in accounting policies:
Changes due to revisions to accounting standards: Yes (See '2. Others' on page 16 for detailed information.)
Changes due to other reasons: None
Number of shares issued (common stock)
Number of shares issued at the end of each period (including treasury stock): 298,142,234 shares at September 30, 2015
294,108,416 shares at March 31, 2015
Number of treasury stock at the end of each period: 9,811 shares at September 30, 2015
9,636 shares at March 31, 2015
Weighted-average number of shares issued at the beginning and end of each period: 296,249,477 shares for the six months ended September 30, 2015
-
Analysis of Operating Results
Overview of Business Environment for Six months Ended September 30, 2015
Regarding the global economy during the six months ended September 30, 2015, uncertainty regarding China could not be fully eradicated in spite of various monetary policy and economic stimulus measures, and some concerns regarding the recovery trend in Japanese corporate earnings began to arise due to the effects of the Chinese economy on the Japanese economy. The United States, which continued its steady economic growth, continued to contemplate the timing of an increase in interest rates while considering the slowdown in employment growth and the negative effects that such increase may have on the global economy. While some signs of an economic recovery were observed in Europe, uncertainty lingered over some of its regions. As a result, the global economy as a whole showed only a mild recovery.
Under such a business environment, we continued to pursue our sales and profit growth strategies with a view to achieve our target for the fiscal year ending March 31, 2021 of consolidated net sales of ¥2 trillion based on our mid-term strategic goal 'Vision 2020,' and we achieved in the six months ended September 30, 2015 the highest first half consolidated net sales, operating income, income before income taxes and net income in our history. In addition, regarding the three months ended September 30, 2015, we achieved increases in consolidated net sales for the seventh consecutive quarter, exceeding ¥300 billion for the first time. We also achieved increases in operating income for the tenth consecutive quarter and achieved the highest quarterly operating income in our history.
Consolidated Operating Results
-
Financial Position
As of September
As of March
Increase or
30, 2015 31, 2015 decrease
Total assets (million)
¥1,421,653
¥1,357,340
¥64,313
Total liabilities (million)
628,478
604,241
24,237
Nidec Corporation shareholders' equity (million)
785,116
744,972
40,144
Interest-bearing debt (million) *1
288,140
282,498
5,642
Net interest-bearing debt (million) *2
1,534
12,596
(11,062)
Debt ratio (%) *3
20.3
20.8
(0.5)
Debt to equity ratio ('D/E ratio') (times) *4
0.37
0.38
(0.01)
Net D/E ratio (times) *5
0.00
0.02
(0.02)
Nidec Corporation shareholders' equity to total assets (%)
55.2
54.9
0.3
Notes:
*1: The sum of 'short-term borrowings,' 'current portion of long-term debt' and 'long-term debt' (including convertible bonds) in our consolidated balance sheet
*2: 'Interest-bearing debt' less 'cash and cash equivalents'
*3: 'Interest-bearing debt' divided by 'total assets'
*4: 'Interest-bearing debt' divided by 'Nidec Corporation shareholders' equity'
*5: 'Net interest-bearing debt' divided by 'Nidec Corporation shareholders' equity'
Total assets increased approximately ¥64,300 million to ¥1,421,653 million as of September 30, 2015 compared to March 31, 2015. This increase was mainly due to an increase of approximately ¥18,800 million in property, plant and equipment, an increase of approximately ¥16,700 million in cash and cash equivalents, an increase of approximately ¥13,000 million in inventories and an increase of approximately ¥11,300 million in trade accounts receivable.
Total liabilities increased approximately ¥24,200 million to ¥628,478 million as of September 30, 2015 compared to March 31, 2015. This increase was mainly due to an increase of approximately ¥8,200 million in trade notes and accounts payable and an increase of approximately ¥5,600 million in interest-bearing debt. Specifically, our short-term borrowings increased approximately ¥39,400 million to approximately ¥91,800 million as of September 30, 2015 compared to March 31, 2015, our current portion of long-term debt decreased approximately ¥32,800 million to approximately ¥12,700 million as of September 30, 2015 compared to March 31, 2015, and our long-term debt decreased approximately ¥1,000 million to approximately ¥183,600 million as of September 30, 2015 compared to March 31, 2015.
As a result, our net interest-bearing debt decreased approximately ¥11,100 million to approximately ¥1,500 million as of September 30, 2015 compared to March 31, 2015. Our debt ratio decreased to 20.3% as of September 30, 2015 from 20.8% as of March 31, 2015. Our D/E ratio was 0.37 as of September 30, 2015 compared to 0.38 as of
March 31, 2015. Our net D/E ratio was 0.00 as of September 30, 2015 compared to 0.02 as of March 31, 2015.
Nidec Corporation shareholders' equity increased approximately ¥40,100 million to ¥785,116 million as of September 30, 2015 compared to March 31, 2015. Nidec Corporation shareholders' equity to total assets increased to 55.2% as of September 30, 2015 from 54.9% as of March 31, 2015. This increase was mainly due to an increase in retained earnings of approximately ¥35,900 million as of September 30, 2015 compared to March 31, 2015.
Overview of Cash Flow-
(Yen in millions)
For the six months
Increase or
ended September 30 decrease
2015 2014
Net cash provided by operating activities
69,620
41,552
28,068
Net cash used in investing activities
(59,238)
(23,131)
(36,107)
Free cash flow *1
10,382
18,421
(8,039)
Net cash provided by (used in) financing activities
13,474
(3,487)
16,961
Note:
*1: To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flows generated from our operations. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Our free cash flow is the sum of 'net cash flow from operating activities' and 'net cash flow from investing activities.'
Cash flows from operating activities for the six months ended September 30, 2015 ('this six-month period') were a net cash inflow of ¥69,620 million. Compared to the six months ended September 30, 2014 ('the same period of the previous year'), our cash inflow from operating activities for this six-month period increased approximately ¥28,100 million. This increase was mainly due to an increase of approximately ¥9,800 million in consolidated net income and an increase of approximately ¥9,700 million of net changes in operating assets and liabilities which consisted of a decrease of approximately ¥4,600 million in operating assets and an increase of approximately ¥5,100 million in operating liabilities.
Cash flows from investing activities for this six-month period were a net cash outflow of ¥59,238 million. Compared to the same period of the previous year, our net cash outflow from investing activities for this six-month period increased approximately ¥36,100 million mainly due to an increase in additional purchases of property, plant and equipment of approximately ¥23,300 million and an increase in acquisitions of businesses, net of cash acquired, of approximately ¥9,700 million.
As a result, we had a positive free cash flow of ¥10,382 million for this six-month period compared to
¥18,421 million for the same period of the previous year.
Cash flows from financing activities for this six-month period were a net cash inflow of ¥13,474 million. Compared to the same period of the previous year, our net cash inflow from financing activities for this six-month period increased approximately ¥17,000 million. This increase was mainly due to an increase of net changes in short-term borrowings of approximately ¥15,200 million and a decrease of repayment of long-term debt of approximately ¥5,500 million, which was partially offset by an increase in dividends paid to shareholders of Nidec Corporation of approximately ¥4,200 million.
As a result of the foregoing and the impact of foreign exchange fluctuations, the balance of cash and cash equivalents as of September 30, 2015 was ¥286,606 million, an increase of approximately ¥16,700 million from March 31, 2015.
- Business Forecasts for the Fiscal Year ending March 31, 2016
The exchange rates used for the preparation of the foregoing forecasts are US$1 = ¥115 and €1 = ¥125. 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.
Pursuant to ASC 805 'Business Combinations,' the growth rates are calculated based on retrospectively adjusted previous period amounts.
Others
Changes in significant subsidiaries during this period
None.
Adoption of simplified accounting methods and accounting methods used specifically for quarterly consolidated financial statements
(Accounting method relating to corporate income taxes)
Corporate income taxes are recognized for the quarterly reporting period based on a worldwide estimated annual effective tax rate.
Changes in accounting method in this period
Consolidated Financial Statements (U.S. GAAP) (unaudited)
Consolidated Balance Sheets Assets
Yen in millions
Increase
September 30, 2015 March 31, 2015 or
Current assets:
decrease
Amount % Amount % Amount
Cash and cash equivalents ¥286,606 ¥269,902 ¥16,704
Trade notes receivable 19,226 15,221 4,005
Trade accounts receivable 233,661 222,396 11,265 Inventories:
Finished goods 82,028 75,398 6,630
Raw materials 56,254 51,182 5,072
Work in process 40,816 39,187 1,629
Supplies and other 4,770 5,107 (337)
Other current assets 49,869 50,622 (753)
Total current assets 773,230 54.4 729,015 53.7 44,215
Investments and advances:
Marketable securities and other securities
investments 18,003 21,516 (3,513) Investments in and advances to affiliated
companies
1,937
2,167
(230)
Total investments and advances
19,940
1.4 23,683
1.8 (3,743)
Property, plant and equipment:
Land
47,908
47,427 481
Buildings
193,455
189,742 3,713
Machinery and equipment
446,923
430,019 16,904
Construction in progress
40,863
33,831 7,032
Sub-total
729,149
51.3 701,019 51.6 28,130
Less - Accumulated depreciation
(368,263)
(25.9) (358,897) (26.4) (9,366)
Total property, plant and equipment
360,886
25.4 342,122 25.2 18,764
Goodwill
169,479
11.9 162,959 12.0 6,520
Other non-current assets
98,118
6.9 99,561 7.3 (1,443)
Total assets
¥1,421,653
100.0 ¥1,357,340 100.0 ¥64,313
Liabilities and Equity
Yen in millions
Increase
September 30, 2015 March 31, 2015 or
Current liabilities:
decrease
Amount % Amount % Amount
Short-term borrowings ¥91,830 ¥52,401 ¥39,429
Current portion of long-term debt 12,704 45,485 (32,781)
Trade notes and accounts payable 203,186 194,998 8,188
Accrued expenses 36,604 33,375 3,229 Other current liabilities 43,622 36,689 6,933
Total current liabilities 387,946 27.3 362,948 26.7 24,998
Long-term liabilities:
Long-term debt
183,606
184,612
(1,006)
Accrued pension and severance costs
19,501
19,576
(75)
Other long-term liabilities
37,425
37,105
320
Total long-term liabilities
240,532
16.9
241,293
17.8
(761)
Total liabilities 628,478 44.2 604,241 44.5 24,237
Equity:
Common stock
87,784
6.2
77,071
5.7
10,713
Additional paid-in capital
116,134
8.2
105,459
7.8
10,675
Retained earnings
463,499
32.6
427,641
31.5
35,858
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments
117,268
131,332
(14,064)
Net unrealized gains and losses on securities
5,028
7,412
(2,384)
Net gains and losses on derivative instruments
(1,713)
(1,072)
(641)
Pension liability adjustments
(2,855)
(2,844)
(11)
Total accumulated other comprehensive
income (loss) 117,728 8.2 134,828 9.9 (17,100)
Treasury stock, at cost
(29)
(0.0) (27)
(0.0) (2)
Total Nidec Corporation shareholders' equity
785,116
55.2 744,972
54.9 40,144
Noncontrolling interests
8,059
0.6 8,127
0.6 (68)
Total equity
793,175
55.8 753,099
55.5 40,076
Total liabilities and equity
¥1,421,653
100.0 ¥1,357,340
100.0 ¥64,313
-
Condensed Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Result for the six months ended September 30 Consolidated Statements of Income
Yen in millions
Six months ended September 30 Increase or
Year ended
2015 2014
decrease
March 31, 2015
Amount % Amount % Amount % Amount %
Net sales ¥587,352 100.0 ¥489,511 100.0 ¥97,841 20.0 ¥1,028,385 100.0
Cost of products sold 453,056 77.2 373,077 76.2 79,979 21.4 786,486 76.5
Selling, general and administrative expenses 47,025 8.0 42,334 8.7 4,691 11.1 85,781 8.3
Research and development expenses 25,421 4.3 22,177 4.5 3,244 14.6 45,179 4.4
Operating expenses 525,502 89.5 437,588 89.4 87,914 20.1 917,446 89.2
Operating income 61,850 10.5 51,923 10.6 9,927 19.1 110,939 10.8
Other income (expenses):
Interest and dividend income 896 1,120 (224) 2,359
Interest expenses (790) (741) (49) (1,487)
Foreign exchange gain (loss), net 2,422 435 1,987 804
Gain (loss) from marketable securities, net 920 6 914 70
Other, net (1,889) (1,205) (684) (5,593)
Total 1,559 0.3 (385) (0.1) 1,944 - (3,847) (0.4)
Income before income taxes 63,409 10.8 51,538 10.5 11,871 23.0 107,092 10.4
Income taxes (15,218) (2.6) (13,188) (2.7) (2,030) - (29,033) (2.8)
Equity in net income (loss) of affiliated
companies 5 0.0 17 0.0 (12) (70.6) 29 0.0
Consolidated net income
48,196
8.2
38,367
7.8
9,829
25.6
78,088
7.6
noncontrolling interests
(574)
(0.1)
(1,654)
(0.3)
1,080
-
(2,073)
(0.2)
Net income attributable to Nidec Corporation
¥47,622
8.1
¥36,713
7.5
¥10,909
29.7
¥76,015
7.4
Less: Net (income) loss attributable to
Consolidated Statements of Comprehensive Income
Yen in millions
Six months ended September 30 Increase or Year ended
2015 2014 decrease March 31, 2015
Amount Amount Amount % Amount Consolidated net income ¥48,196 ¥38,367 ¥9,829 25.6 ¥78,088 Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments (14,541) 31,461 (46,002) - 77,753
Net unrealized gains and losses on securities (2,384) 1,364 (3,748) - 3,243
Net gains and losses on derivative instruments (641) (191) (450) - (1,048) Pension liability adjustments (23) 109 (132) - (2,534) Total (17,589) 32,743 (50,332) - 77,414
Total comprehensive income (loss) 30,607 71,110 (40,503) (57.0) 155,502
Less: Comprehensive (income) loss
attributable to noncontrolling interests (85) (2,103) 2,018 - (3,037)
Comprehensive income (loss) attributable to
Nidec Corporation ¥30,522 ¥69,007 ¥(38,485) (55.8) ¥152,465
Result for the three months ended September 30 Consolidated Statements of Income
Yen in millions
Three months ended September 30 Increase or
2015 2014
decrease
Amount
%
Amount
%
Amount
%
Net sales
¥302,311
100.0
¥249,323
100.0
¥52,988
21.3
Cost of products sold
232,205
76.8
189,343
75.9
42,862
22.6
Selling, general and administrative expenses
25,234
8.3
21,690
8.7
3,544
16.3
Research and development expenses
13,767
4.6
11,402
4.6
2,365
20.7
Operating expenses
271,206
89.7
222,435
89.2
48,771
21.9
Operating income
31,105
10.3
26,888
10.8
4,217
15.7
Other income (expenses):
Interest and dividend income
411
559
(148)
Interest expenses
(445)
(344)
(101)
Foreign exchange gain (loss), net
865
761
104
Gain (loss) from marketable securities, net
184
6
178
Other, net
(1,066)
(786)
(280)
Total
(51)
(0.0)
196
0.1
(247)
-
Income before income taxes
31,054
10.3
27,084
10.9
3,970
14.7
Income taxes
(7,057)
(2.4)
(7,015)
(2.8)
(42)
-
Equity in net income (loss) of affiliated companies
(0)
(0.0)
13
0.0
(13)
-
Consolidated net income
23,997
7.9
20,082
8.1
3,915
19.5
Less: Net (income) loss attributable to noncontrolling interests
(170)
(0.0)
(942)
(0.4)
772
-
Net income attributable to Nidec Corporation
¥23,827
7.9
¥19,140
7.7
¥4,687
24.5
Consolidated Statements of Comprehensive Income
Yen in millions
Three months ended September 30 Increase or
2015 2014 decrease
Amount Amount Amount %
Consolidated net income ¥23,997 ¥20,082 ¥3,915 19.5
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments (25,957) 40,151 (66,108) -
Net unrealized gains and losses on securities (2,001) 683 (2,684) -
Net gains and losses on derivative instruments (642) (383) (259) - Pension liability adjustments 100 127 (27) (21.3)
Total (28,500) 40,578 (69,078) -
Total comprehensive income (loss) (4,503) 60,660 (65,163) -
Less: Comprehensive (income) loss attributable to
noncontrolling interests 293 (1,572) 1,865 -
Comprehensive income (loss) attributable to Nidec
Corporation ¥ (4,210) ¥59,088 ¥(63,298) -
-
Consolidated Statements of Cash Flows
Yen in millions
Six months ended
September 30
Increase or
Year ended March 31,
Cash flows from operating activities:
2015 2014 decrease 2015
Consolidated net income ¥48,196 ¥38,367 ¥9,829 ¥78,088 Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization
30,373
25,373
5,000
53,404
Gain from marketable securities, net
(920)
(6)
(914)
(70)
Gain from sales, disposal or impairment of property, plant
and equipment
(78)
(264)
186
(275)
Deferred income taxes
2,345
2,849
(504)
6,523
Equity in net income of affiliated companies
(5)
(17)
12
(29)
Foreign currency adjustments
(596)
441
(1,037)
1,634
Changes in operating assets and liabilities:
Increase in notes and accounts receivable
(13,367)
(13,213)
(154)
(20,109)
Increase in inventories
(11,859)
(16,649)
4,790
(29,565)
Increase in notes and accounts payable
9,960
5,963
3,997
10,054
Increase in accrued income taxes
1,895
837
1,058
220
Other 3,676 (2,129) 5,805 (8,000)
Net cash provided by operating activities 69,620 41,552 28,068 91,875
Cash flows from investing activities:
Additions to property, plant and equipment
(47,814)
(24,522)
(23,292)
(58,042)
Proceeds from sales of property, plant and equipment
805
1,644
(839)
3,110
Purchases of marketable securities
(504)
(3)
(501)
(6)
Proceeds from sales or redemption of marketable securities
1,276
14
1,262
68
Acquisitions of business, net of cash acquired
(9,721)
-
(9,721)
(27,343)
Other (3,280) (264) (3,016) 983
Net cash used in investing activities (59,238) (23,131) (36,107) (81,230)
Cash flows from financing activities:
Increase in short-term borrowings
38,324
23,126
15,198
29,592
Proceeds from issuance of long-term debt
258
73
185
78
Repayments of long-term debt
(12,977)
(18,510)
5,533
(30,104)
Purchases of treasury stock
(25)
(30)
5
(2,159)
Payments for additional investments in subsidiaries
(36)
(110)
74
(292)
Dividends paid to shareholders of Nidec Corporation
(11,764)
(7,585)
(4,179)
(15,859)
Other (306) (451) 145 (764) Net cash provided by (used in) financing activities 13,474 (3,487) 16,961 (19,508)
Effect of exchange rate changes on cash and cash
equivalents (7,152) 14,604 (21,756) 31,025
Net increase in cash and cash equivalents 16,704 29,538 (12,834) 22,162 Cash and cash equivalents at beginning of period 269,902 247,740 22,162 247,740 Cash and cash equivalents at end of period ¥286,606 ¥277,278 ¥9,328 ¥269,902
- Notes to our consolidated financial statements
- Supplementary Information (Six months ended September 30, 2015) (unaudited)
-
Quarterly Financial Data for the three months ended September 30, 2015 and June 30, 2015
Yen in millions
Three months ended
June 30, 2015 September 30, 2015
Amount % Amount %
Net sales
¥285,041
100.0
¥302,311
100.0
Operating income
30,745
10.8
31,105
10.3
Income before income taxes
32,355
11.4
31,054
10.3
Consolidated net income
24,199
8.5
23,997
7.9
Net income attributable to Nidec Corporation
¥23,795
8.3
¥23,827
7.9
Note: Pursuant to ASC 805 'Business Combinations,' the results of operations for the three months ended June 30, 2015 have been retrospectively adjusted.
-
Information by Product Category
Automotive, appliance,
Small precision
Yen in millions
Six months ended September 30, 2015
Electronic and
Eliminations/
motors
commercial
and industrial
Machinery
optical
components
Others Total
Corporate
Consolidated
Net sales:
products
Customers ¥222,513 ¥276,185 ¥53,582 ¥32,528 ¥2,544 ¥587,352 ¥- ¥587,352
Intersegment 1,256 2,378 7,076 2,514 960 14,184 (14,184) -
Total 223,769 278,563 60,658 35,042 3,504 601,536 (14,184) 587,352
Operating expenses 187,987 257,158 52,488 31,425 3,024 532,082 (6,580) 525,502
Operating income ¥35,782 ¥21,405 ¥8,170 ¥3,617 ¥480 ¥69,454 ¥(7,604) ¥61,850
Small precision
Automotive, appliance,
Yen in millions
Six months ended September 30, 2014
Electronic and
Eliminations/
motors
commercial
and industrial
Machinery
optical
components
Others Total
Corporate
Consolidated
Net sales:
products
Customers ¥190,308 ¥218,378 ¥45,022 ¥32,499 ¥3,304 ¥489,511 ¥- ¥489,511
Intersegment 500 186 2,538 221 3,495 6,940 (6,940) -
Total 190,808 218,564 47,560 32,720 6,799 496,451 (6,940) 489,511
Operating expenses 160,155 201,340 40,934 30,365 6,497 439,291 (1,703) 437,588
Operating income ¥30,653 ¥17,224 ¥6,626 ¥2,355 ¥302 ¥57,160 ¥(5,237) ¥51,923
Small precision
Automotive, appliance,
Yen in millions
Three months ended September 30, 2015
Electronic and
Eliminations/
motors
commercial
and industrial
Machinery
optical
components
Others Total
Corporate
Consolidated
Net sales:
products
Customers ¥118,455 ¥138,868 ¥26,930 ¥16,705 ¥1,353 ¥302,311 ¥- ¥302,311
Intersegment 592 2,242 3,894 1,226 475 8,429 (8,429) -
Total 119,047 141,110 30,824 17,931 1,828 310,740 (8,429) 302,311
Operating expenses 100,953 130,469 26,713 15,926 1,544 275,605 (4,399) 271,206
Operating income ¥18,094 ¥10,641 ¥4,111 ¥2,005 ¥284 ¥35,135 ¥(4,030) ¥31,105
Small precision
Automotive, appliance,
Yen in millions
Three months ended September 30, 2014
Electronic and
Eliminations/
motors
commercial
and industrial
Machinery
optical
components
Others Total
Corporate
Consolidated
Net sales:
products
Customers ¥100,419 ¥108,134 ¥22,743 ¥16,330 ¥1,697 ¥249,323 ¥- ¥249,323
Intersegment 173 54 1,481 102 1,770 3,580 (3,580) -
Total 100,592 108,188 24,224 16,432 3,467 252,903 (3,580) 249,323
Operating expenses 85,001 99,547 20,410 15,182 3,290 223,430 (995) 222,435
Operating income ¥15,591 ¥8,641 ¥3,814 ¥1,250 ¥177 ¥29,473 ¥(2,585) ¥26,888
Notes:
Product categories are classified based on similarities in product type, product attributes, and production and sales methods.
Major products of each product category:
Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.
Automotive, appliance, commercial and industrial products: Automotive motors and components, home appliance, commercial and industrial motors and related products.
Machinery: Industrial robots, card readers, test systems, pressing machines and power transmission drives, etc.
Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.
Others: Services, etc.
-
Sales by Geographic Segment
Yen in millions
Six months ended September 30 Increase or
2015 2014
decrease
Amount
%
Amount
%
Amount
%
Japan
¥140,069
23.9%
¥134,513
27.5%
¥5,556
4.1%
U.S.A
103,646
17.6%
82,506
16.9%
21,140
25.6%
Singapore
37,625
6.4%
32,292
6.6%
5,333
16.5%
Thailand
52,163
8.9%
39,785
8.1%
12,378
31.1%
Philippines
13,016
2.2%
13,183
2.7%
(167)
(1.3)%
China
139,713
23.8%
112,825
23.0%
26,888
23.8%
Others
101,120
17.2%
74,407
15.2%
26,713
35.9%
Total
¥587,352
100.0%
¥489,511
100.0%
¥97,841
20.0%
Yen in millions
Three months ended September 30 Increase or
2015 2014
decrease
Amount
%
Amount
%
Amount
%
Japan
¥70,461
23.3%
¥68,869
27.6%
¥1,592
2.3%
U.S.A
51,306
17.0%
41,766
16.8%
9,540
22.8%
Singapore
20,553
6.8%
16,085
6.5%
4,468
27.8%
Thailand
27,658
9.1%
20,296
8.1%
7,362
36.3%
Philippines
5,316
1.8%
6,660
2.7%
(1,344)
(20.2)%
China
74,072
24.5%
56,722
22.7%
17,350
30.6%
Others
52,945
17.5%
38,925
15.6%
14,020
36.0%
Total
¥302,311
100.0%
¥249,323
100.0%
¥52,988
21.3%
Note: The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.
- Sales by Region
-
Summary of Consolidated Financial Performance
Yen in millions
(except for per share amounts)
Six months ended September 30
2015 2014
Increase or decrease
Three months ended September 30
2015 2014
Increase or decrease
Year ended March 31,
2015
¥587,352
¥489,511
20.0%
¥302,311
¥249,323
21.3%
61,850
51,923
19.1%
31,105
26,888
15.7%
10.5%
10.6%
10.3%
10.8%
63,409
51,538
23.0%
31,054
27,084
14.7%
10.8%
10.5%
10.3%
10.9%
47,622
36,713
29.7%
23,827
19,140
24.5%
8.1%
7.5%
7.9%
7.7%
¥160.75
¥133.11
¥80.12
¥69.40
¥159.57
¥124.85
¥79.84
¥65.09
Net sales Operating income
Ratio of operating income to net sales Income before income taxes
Ratio of income before income taxes to net sales
Net income attributable to Nidec Corporation Ratio of net income attributable to Nidec Corporation to net sales
Net income attributable to Nidec Corporation per share-basic
Net income attributable to Nidec Corporation per share-diluted
¥1,421,653
¥1,249,209
¥1,357,340
785,116
579,156
744,972
55.2%
46.4%
54.9%
¥2,633.45
¥2,099.90
¥2,533.07
Total assets
Nidec Corporation shareholders' equity
Nidec Corporation shareholders' equity to total assets
Nidec Corporation shareholders' equity per share
¥69,620 ¥41,552
(59,238) (23,131)
13,474 (3,487)
¥91,875 (81,230)
(19,508)
¥286,606 ¥277,278
¥269,902
Net cash provided by operating activities Net cash used in investing activities
Net cash provided by (used in) financing activities Cash and cash equivalents at end of period
Notes:
Some items colored in the above table are omitted, because we also omit them in the report in Japanese language.
Pursuant to ASC 805 'Business Combinations,' previous period amounts have been retrospectively adjusted.
-
Scope of Consolidation and Application of the Equity Method
Number of consolidated subsidiaries: 239
Number of affiliated companies accounted for under the equity method: 4
- Change in Scope of Consolidation and Application of the Equity Method
Yen in millions
(except for per share amounts) September 30, 2015 March 31, 2015
Total assets ¥1,421,653 ¥1,357,340
Total equity 793,175 753,099
Nidec Corporation shareholders' equity 785,116 744,972
Nidec Corporation shareholders' equity to total assets 55.2% 54.9% Nidec Corporation shareholders' equity per share ¥2,633.45 ¥2,533.07
275,802,255 shares for the six months ended September 30, 2014
Note:
Pursuant to ASC 805 'Business Combinations,' previous year's consolidated financial statements have been retrospectively adjusted to reflect the 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, 2014, as well as the acquisitions of Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt (Currently, Nidec GPM GmbH) in the fiscal year ended March 31, 2015. Nidec completed its valuation of such assets and liabilities of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation during the three months ended December 31, 2014 and of Nidec GPM GmbH during the three months ended September 30, 2015.
Investor presentation materials relating to our financial results for the six months ended September 30, 2015 are expected to be published on our corporate website on October 22, 2015.
Consolidated Operating Results for the Six Months Ended September 30, 2015 ('this six-month period'), Compared to the Six Months Ended September 30, 2014 ('the same period of the prior year')
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales | 587,352 | 489,511 | 97,841 | 20.0% |
Operating income | 61,850 | 51,923 | 9,927 | 19.1% |
Operating income ratio | 10.5% | 10.6% | - | - |
Income before income taxes | 63,409 | 51,538 | 11,871 | 23.0% |
Net income attributable to Nidec Corporation | 47,622 | 36,713 | 10,909 | 29.7% |
Note: Pursuant to ASC 805 'Business Combinations,' previous period amounts have been retrospectively adjusted.
Consolidated net sales increased 20.0% to ¥587,352 million for this six-month period compared to the same period of the prior year, recording the highest net sales for any first half-year period in our history. Operating income increased 19.1% to ¥61,850 million for this six-month period compared to the same period of the prior year, recording the highest operating income for any first half-year period in our history. In all of our five product categories, operating income increased compared to the same period of the prior year. The average exchange rate between the Japanese yen and the U.S. dollar for this six-month period was ¥121.80 to the U.S. dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of approximately 18% compared to the same period of the prior year. The average exchange rate between the Japanese yen and the Euro for this six-month period was ¥135.07 to the Euro, which reflected an appreciation of the Japanese yen against the Euro of approximately 3% compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of approximately ¥61,300 million and our operating income of approximately ¥8,400 million for this six-month period compared to the same period of the prior year.
Income before income taxes increased 23.0% to ¥63,409 million for this six-month period compared to the same period of the prior year, and net income attributable to Nidec Corporation increased 29.7% to ¥47,622 million for this six-month period compared to the same period of the prior year, recording the highest income before income taxes and net income attributable to Nidec Corporation for any first half-year period in our history.
Operating Results by Product Category for This Six-Month Period Compared to the Same Period of the Prior Year
Small precision motors-
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 222,513 | 190,308 | 32,205 | 16.9% | |
Hard disk drives spindle motors | 106,806 | 93,433 | 13,373 | 14.3% | |
Other small precision motors | 115,707 | 96,875 | 18,832 | 19.4% | |
Operating income of small precision motors | 35,782 | 30,653 | 5,129 | 16.7% | |
Operating income ratio | 16.1% | 16.1% | - | - | |
Net sales of small precision motors increased 16.9% to ¥222,513 million for this six-month period compared to the same period of the prior year. The decrease in sales for spindle motors for hard disk drives (HDDs) resulting from the decrease in the number of units sold, excluding the effect of the foreign currency fluctuation, was more than offset by the increase in sales of other small precision motors. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors of approximately ¥30,300 million for this six-month period compared to the same period of the prior year.
Net sales of spindle motors for HDDs for this six-month period increased 14.3% to ¥106,806 million compared to the same period of the prior year, although the number of units sold of spindle motors for HDDs decreased approximately 6% compared to the same period of the prior year.
Net sales of other small precision motors for this six-month period increased 19.4% to ¥115,707 million compared to the same period of the prior year. This increase was mainly due to increases in sales of fan motors and other small motors.
Operating income of small precision motors increased 16.7% to ¥35,782 million for this six-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on operating income of small precision motors of approximately ¥8,000 million for this six-month period compared to the same period of the prior year.
Automotive, appliance, commercial and industrial products-
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 276,185 | 218,378 | 57,807 | 26.5% | |
Appliance, commercial and industrial products | 140,029 | 125,322 | 14,707 | 11.7% | |
Automotive products | 136,156 | 93,056 | 43,100 | 46.3% | |
Operating income of automotive, appliance, commercial and industrial products | 21,405 | 17,224 | 4,181 | 24.3% | |
Operating income ratio | 7.8% | 7.9% | - | - | |
Note: Starting from the three months ended December 31, 2014, basic research and development expenses that were previously included in 'Automotive, appliance, commercial and industrial products' category have been reclassified to 'Eliminations/ Corporate' category. Accordingly, previous period amounts have been retrospectively adjusted.
Net sales of automotive, appliance, commercial and industrial products increased 26.5% to ¥276,185 million for this six-month period compared to the same period of the prior year. 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 ¥23,400 million for this six-month period compared to the same period of the prior year.
Net sales of appliance, commercial and industrial products for this six-month period increased 11.7% 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) and the positive effect of the foreign currency exchange rate fluctuations.
Net sales of automotive products for this six-month period increased 46.3% compared to the same period of the prior year. This increase was primarily due to the contribution of Nidec GPM GmbH which was newly consolidated in February, 2015 and the positive effect of the foreign currency exchange rate fluctuations, in addition to the increase in sales for automotive motors such as electric power steering motors and products relating to advanced driver assistance systems (ADAS) at Nidec Elesys Corporation.
Operating income of automotive, appliance, commercial and industrial products increased 24.3% to
¥21,405 million for this six-month period compared to the same period of the prior year mainly due to the increase in sales and our efforts to reduce cost of products sold.
Machinery-
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of machinery | 53,582 | 45,022 | 8,560 | 19.0% |
Operating income of machinery | 8,170 | 6,626 | 1,544 | 23.3% |
Operating income ratio | 15.2% | 14.7% | - | - |
Net sales of machinery increased 19.0% to ¥53,582 million for this six-month period compared to the same period of the prior year mainly due to increases in sales of LCD panel handling robots at Nidec Sankyo Corporation.
Operating income of machinery increased 23.3% to ¥8,170 million for this six-month period compared to the same period of the prior year mainly due to the sales increase.
Electronic and optical components-
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 32,528 | 32,499 | 29 | 0.1% |
Operating income of electronic and optical components | 3,617 | 2,355 | 1,262 | 53.6% |
Operating income ratio | 11.1% | 7.2% | - | - |
Net sales of electronic and optical components slightly increased to ¥32,528 million for this six-month period compared to the same period of the prior year.
Operating income of electronic and optical components increased 53.6% to ¥3,617 million for this
six-month period mainly as a result of our efforts to improve manufacturing efficiency, reduce cost of products sold and lower fixed costs.
Other products-
Yen in millions
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of other products | 2,544 | 3,304 | (760) | (23.0)% |
Operating income of other products | 480 | 302 | 178 | 58.9% |
Operating income ratio | 18.9% | 9.1% | - | - |
Net sales of other products decreased 23.0% to ¥2,544 million, and operating income of other products increased 58.9% to ¥480 million, for this six-month period compared to the same period of the previous year.
Consolidated Operating Results for the Three Months Ended September 30, 2015 ('this 2Q'), Compared to
the Three Months Ended June 30, 2015 ('this 1Q')
Yen in millions
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales | 302,311 | 285,041 | 17,270 | 6.1% |
Operating income | 31,105 | 30,745 | 360 | 1.2% |
Operating income ratio | 10.3% | 10.8% | - | - |
Income before income taxes | 31,054 | 32,355 | (1,301) | (4.0)% |
Net income attributable to Nidec Corporation | 23,827 | 23,795 | 32 | 0.1% |
Note: Pursuant to ASC 805 'Business Combinations,' previous period amounts have been retrospectively adjusted.
Consolidated net sales increased 6.1% to ¥302,311 million for this 2Q compared to this 1Q, recording the highest three-month net sales in our history for the seventh consecutive quarter. Operating income increased for the tenth consecutive quarter to ¥31,105 million for this 2Q, up by 1.2% compared to this 1Q, recording the highest three-month operating income in our history for the fourth consecutive quarter. The average exchange rate between the Japanese yen and the U.S. dollar for this 2Q was ¥122.23 to the U.S. dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of approximately 1% compared to this 1Q. The average exchange rate between the Japanese yen and the Euro for this 2Q was ¥135.98 to the Euro, which reflected a depreciation of the Japanese yen against the Euro of approximately 1% compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of approximately ¥1,000 million as well as on our operating income of
approximately ¥400 million for this 2Q compared to this 1Q.
Income before income taxes decreased 4.0% to ¥31,054 million for this 2Q compared to this 1Q. Net income attributable to Nidec Corporation increased 0.1% to ¥23,827 million for this 2Q compared to this 1Q, recording the highest three-month net income attributable to Nidec Corporation in our history.
Operating Results by Product Category for This 2Q Compared to This 1Q
Small precision motors-
Yen in millions
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 118,455 | 104,058 | 14,397 | 13.8% | |
Hard disk drives spindle motors | 56,866 | 49,940 | 6,926 | 13.9% | |
Other small precision motors | 61,589 | 54,118 | 7,471 | 13.8% | |
Operating income of small precision motors | 18,094 | 17,688 | 406 | 2.3% | |
Operating income ratio | 15.3% | 17.0% | - | - | |
Net sales of small precision motors increased 13.8% to ¥118,455 million for this 2Q compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive impact of approximately ¥400 million on the net sales of small precision motors for this 2Q compared to this 1Q.
Net sales of spindle motors for HDDs for this 2Q increased 13.9% to ¥56,866 million, compared to this 1Q. The number of units sold of spindle motors for HDDs for this 2Q increased approximately 14% compared to this 1Q.
Net sales of other small precision motors for this 2Q increased 13.8% to ¥61,589 million compared to this 1Q. This increase was mainly due to increases in sales of brushless motors, fan motors and other small motors.
Operating income of small precision motors increased 2.3% to ¥18,094 million for this 2Q compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on operating income of small precision motors of ¥300 million for this 2Q compared to this 1Q.
Automotive, appliance, commercial and industrial products-
Yen in millions
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 138,868 | 137,317 | 1,551 | 1.1% | |
Appliance, commercial and industrial products | 68,729 | 71,300 | (2,571) | (3.6)% | |
Automotive products | 70,139 | 66,017 | 4,122 | 6.2% | |
Operating income of automotive, appliance, commercial and industrial products | 10,641 | 10,764 | (123) | (1.1)% | |
Operating income ratio | (7.7%) | (7.8%) | - | - | |
Net sales of automotive, appliance, commercial and industrial products increased 1.1% to ¥138,868 million for this 2Q compared to this 1Q.
Net sales of appliance, commercial and industrial products for this 2Q decreased 3.6% compared to this 1Q. This decrease was mainly due to the slowdown in China and seasonality effects.
Net sales of automotive products for this 2Q increased 6.2% compared to this 1Q. This increase was mainly due to the increase in sales for products relating to ADAS at Nidec Elesys Corporation as well as the positive effect of the foreign currency exchange rate fluctuations.
Operating income of automotive, appliance, commercial and industrial products decreased 1.1% to ¥10,641 million for this 2Q compared to this 1Q mainly due to the increase in market development costs.
Machinery-
Yen in millions
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales of machinery | 26,930 | 26,652 | 278 | 1.0% |
Operating income of machinery | 4,111 | 4,059 | 52 | 1.3% |
Operating income ratio | 15.3% | 15.2% | - | - |
Net sales of machinery increased 1.0% to ¥26,930 million for this 2Q compared to this 1Q mainly due to increases in sales of LCD panel handling robots at Nidec Sankyo Corporation.
Operating income of machinery increased 1.3% to ¥4,111 million for this 2Q compared to this 1Q mainly due to the increase in sales.
Electronic and optical components-
Yen in millions
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 16,705 | 15,823 | 882 | 5.6% |
Operating income of electronic and optical components | 2,005 | 1,612 | 393 | 24.4% |
Operating income ratio | 12.0% | 10.2% | - | - |
Net sales of electronic and optical components increased 5.6% to ¥16,705 million for this 2Q compared to
this 1Q.
Operating income of electronic and optical components increased 24.4% to ¥2,005 million for this 2Q. This mainly reflected an improvement in product mix.
Other products-
Yen in millions
Three months | Three months | Increase or | Increase | |
ended | ended | or | ||
September 30, | June 30, | decrease | decrease | |
2015 | 2015 | ratio | ||
Net sales of other products | 1,353 | 1,191 | 162 | 13.6% |
Operating income of other products | 284 | 196 | 88 | 44.9% |
Operating income ratio | 21.0% | 16.5% | - | - |
Net sales of other products increased 13.6% to ¥1,353 million and operating income of other products increased 44.9% to ¥284 million for this 2Q compared to this 1Q.
Regarding global economic trends, we expect that, while an economic recovery mainly in the United States is anticipated, uncertainties relating to the impact of a rise in U.S. interest rates on developing economies, the slowdown in Chinese economic growth and the uncertainty of the European economy will continue to require close monitoring.
Our business forecasts for the fiscal year ending March 31, 2016 remain unchanged as of the date of this report from those which were announced on April 22, 2015.
Forecast of consolidated results for the fiscal year ending March 31, 2016
Net sales ¥1,150,000 million (Up 11.8% from the previous fiscal year)
Operating income ¥130,000 million (Up 17.2% from the previous fiscal year)
Income before income taxes ¥126,000 million (Up 17.7% from the previous fiscal year) Net income attributable to Nidec
Corporation ¥90,000 million (Up 18.4% from the previous fiscal year)
Notes:
As of April 1, 2015, NIDEC adopted FASB Accounting Standards Codification™ (ASC) 205 'Presentation of Financial Statements' and ASC 360 'Property, Plant, and Equipment' updated by Accounting Standards Update (ASU) No. 2014-08 'Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.' ASU 2014-08 requires that a disposal of a component or a group of components of an entity should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. ASU 2014-08 also requires additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The adoption of this standard did not have any impact on NIDEC's consolidated financial position, results of operations or liquidity.
Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Nidec Corporation and its group companies (the 'Nidec Group'). These forward-looking statements are based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to it. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'may,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'intend,' 'plan,' 'forecast' or similar words. These statements discuss future expectations, identify strategies, contain projections of the results of operations or financial condition of the Nidec Group, or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. 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, including, but not limited to, (i) general economic conditions in the computer, information storage and communication technology, home appliance, industrial and commercial machinery and equipment, automobile and related product markets, particularly levels of consumer spending and capital expenditures by companies, (ii) the Nidec Group's ability to expand its business portfolio into new business areas in the highly competitive automotive, appliance, commercial and industrial product markets, (iii) the Nidec Group's ability to design, develop, mass produce and win acceptance of its products, (iv) alleged or actual product defects and malfunctions of any
end-product in which our products are incorporated, (v) the effectiveness of measures designed to reduce costs and improve profitability, (vi) the Nidec Group's ability to acquire and successfully integrate companies with complementary technologies, product lines and marketing and sales networks, (vii) the Nidec Group's ability to match production and inventory levels with actual demand, (viii) natural and human-caused disasters and other incidents, (ix) the ability to procure raw materials and attract and retain qualified personnel at satisfactory cost levels,
(x) exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar and other currencies in which the Nidec Group makes significant sales or in which the Nidec Group's assets and liabilities are denominated and (xi) adverse changes in laws, regulations or economic policies in any of the jurisdictions where the Nidec Group has manufacturing or other operations.
Business Combinations
Pursuant to ASC 805 'Business Combinations,' previous year's consolidated financial statements have been retrospectively adjusted to reflect its 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, 2014. During the three months ended December 31, 2014, NIDEC completed its valuation of such assets and liabilities of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation.
Consolidated financial statements for the previous year and the three months ended June 30, 2015 also have been retrospectively adjusted to reflect its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec GPM GmbH (formerly Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt) in the fiscal year ended March 31, 2015. During the three months ended September 30, 2015, NIDEC completed its valuation of such assets and liabilities of Nidec GPM GmbH.
In addition, NIDEC is currently evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of companies executed 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 September 30, 2015. These evaluations do not have material impacts on NIDEC's consolidated financial position, results of operations or liquidity.
Subsequent Events
Not applicable.
3. Pursuant to ASC 805 'Business Combinations,' previous period amounts have been retrospectively adjusted.
4. Basic research and development expenses that were previously included in 'Automotive, appliance, commercial and industrial products' category have been reclassified to 'Eliminations/ Corporate' category since the three months ended December 31, 2014. Accordingly, the basic research and development expenses for the six months ended September 30, 2014 have been retrospectively reclassified.
Yen in millions
Six months ended September 30 Increase or
2015 2014
decrease
Amount | % | Amount | % | Amount | % | |
North America | ¥117,726 | 20.1% | ¥92,862 | 19.0% | ¥24,864 | 26.8% |
Asia | 297,050 | 50.6% | 249,413 | 50.9% | 47,637 | 19.1% |
Europe | 74,149 | 12.6% | 49,798 | 10.2% | 24,351 | 48.9% |
Others | 6,067 | 1.0% | 4,683 | 1.0% | 1,384 | 29.6% |
Overseas sales total | 494,992 | 84.3% | 396,756 | 81.1% | 98,236 | 24.8% |
Japan | 92,360 | 15.7% | 92,755 | 18.9% | (395) | (0.4)% |
Consolidated total | ¥587,352 | 100.0% | ¥489,511 | 100.0% | ¥97,841 | 20.0% |
Yen in millions
Three months ended September 30 Increase or
2015 2014
decrease
Amount | % | Amount | % | Amount | % | |
North America | ¥59,687 | 19.7% | ¥47,325 | 19.0% | ¥12,362 | 26.1% |
Asia | 153,830 | 50.9% | 128,107 | 51.4% | 25,723 | 20.1% |
Europe | 38,974 | 12.9% | 24,370 | 9.7% | 14,604 | 59.9% |
Others | 3,107 | 1.0% | 2,231 | 0.9% | 876 | 39.3% |
Overseas sales total | 255,598 | 84.5% | 202,033 | 81.0% | 53,565 | 26.5% |
Japan | 46,713 | 15.5% | 47,290 | 19.0% | (577) | (1.2)% |
Consolidated total | ¥302,311 | 100.0% | ¥249,323 | 100.0% | ¥52,988 | 21.3% |
Note: The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.
Change from
Change from
March 31, 2015 September 30, 2014
Number of companies newly consolidated: | 10 | 14 |
Number of companies excluded from consolidation: | 3 | 6 |
Number of companies newly accounted for by the equity method: | 1 | 1 |
Number of companies excluded from accounting by the equity method: | 2 | 2 |
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distributed by
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