NIDEC : Acquisition of the Emerson Electric Co.’s Motors & Drives and Electric Power Generation Businesses

NIDEC CORPORATION

Acquisition of the Emerson Electric Co.'s Motors & Drives and Electric Power Generation Businesses

Nidec Corporation August 2, 2016

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 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 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.

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• Appliance, Commercial and Industrial Motors (ACIM) group as one of the key

  growth areas

  Background

  • ACIM is the key driver of Nidec's business portfolio transformation in order to lower the company's dependence on small precision motors business

  • Nidec will grow ACIM group as one of the key growth areas for achieving our mid- term strategic goal "Vision2020"

• Growing customer demand for one-stop solution

  • Growing needs for products and services beyond regional differences in standards

    (North America: NEMA standards; Europe, Asia and other areas: IEC standards)

  • Growing needs for energy efficient technologies ranging from improving motor efficiency to optimizing motor-drive combination, responding to tighter regulations

    • Complementary product fit with full lineup in industrial products and geographic fit

      • Broaden the product lineup: Acquire low-voltage IEC-based design motors and low

        and medium-voltage generators of capacity below 10 megawatts

      • Strengthen market presence worldwide: Establish presence in European and Asian markets where Nidec does not currently have a strong presence

    • Enhancement of proposal to customers by combining drives with motors

      • Combination of the target companies' drive technology and Nidec's motor technology

    will deliver higher value to customers

    Purpose

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    Combined Business

    Fiscal Year Ended Sep. 2015 Sales: US$1,674mm

    Leroy-Somer ("LS") Control Techniques ("CT")

• Headquarters: Angoulême, France

• Year Established: 1919

EPG M&D

• Headquarters: Newtown Wales, UK

• Year Established: 1973

  Drives (+ servo motors)

  Sales

  US$780mm

  US$529mm US$374mm

  Key

  Products

  • Low and medium voltage alternators from 5kW to 25MW

1 Excluding intercompany transactions and elimination.

• AC and DC induction motors, variable frequency drives,

permanent magnet motors, machine control

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Total employees: 9,703

Motors & Drives Alternators Shared Services

Americas 1,408 Employees

EMEA

6,423 Employees

Asia Pacific 1,872 Employees

Eden Prairie

Mankato Andover

Lexington

Newtown

Salzbergen

Poznan

Olomouc

Noida Pune

Hubli

Xi'An Shenzen

Qingdao

Fuzhou

Reynosa

Le Mans Orleans Angouleme

Iklad

Cluj

Bangalore

Lyon

Oradea

Pau

Beaucourt

By Segment

Alternators (LS EPG)

• 3,559 employees

• 6 engineering & design facilities

• 10 manufacturing facilities

  Motors & Drives (LS M&D and CT)

• 5,689 employees

• 15 engineering & design facilities

• 22 manufacturing facilities

  Shared Services

• Shared Services： 455 employees

• Fuzhou (China) and Pune (India)

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Product Mix Geographic Mix Industry Mix

Revenue Breakdown

Drives & Solutions 22%

Low Voltage Alternators 31%

MEA 5%

China 11%

LAM 1%

US & Canada

26%

Data Centers/ Telecommunications 6%

Oil & Gas 13%

Others 6%

Commercial

/Industrial

31%

FA/Process

Motors

31%

E. Europe 3%

1. Europe

   45%

   Power

   Plant 14%

   Automation 21%

   Mid / High Voltage Alternators 15%

   Asia Pacific (excl. China) 8%

   Building & Construction 9%

   Customer

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   - Used in Building & Construction, Marine, Telecommunications, Commercial, Healthcare and others - 50-60Hz, 4-6 poles, 5kW-3.6MW

   - Used in Power plant (including nuclear power plants), Oil & Gas and Marine - 50-60Hz, 4-24 poles, 5-25MW

   • Industrial Range (Low and Medium Voltage)

   • Customized Range (Low, Medium and High Voltage)

   Product Overview Major Customers

   Revenue Breakdown (%)

   By Application By Geography

   Grid-

   connected

   17%

   Non-stationary

   12%

   Off-grid

   Asia

   20%

   Americas

   standby

   54%

   Off-grid remote power plants

   18%

   EMEA

   38%

   42%

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   Product Overview Major Customers

   • Induction Motors (up to 1,500kW), Gear

   • DC Motors (2-750kW)

   • Permanent Magnet Motors (0.75-500kW)

     Revenue Breakdown (%)

     By Product By Geography

     Drives 5%

     Service 8%

     China

     America 13%

   • Servo Motors, Torque Motors, Gears, Drives

Servo

Motors

Others 4%

4%MEA

5%

France

11%

Perm.

Magnet

Induction

44%

Asia

Pacific 8%

34%

Motors

Invertor-Fed

Europe

6% Induction Motors 21%

(excluding France) 36%

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Overview of LS M&D's Manufacturing Facilities

Product Overview Major Customers

Revenue Breakdown (%)

By Application By Geography

Wind Power

Generator

19%

Elevators

13%

Middle East 5%

Americas

15%

China

(0.11Nm-136Nm)

Process Automation 24%

Factory

Automation 44%

Europe

52%

22%

Asia Pacific 6%

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Synergies (1/2): Complimentary Product Fit with Full

Motors

Pre-Transaction (Nidec)

Post-Transaction (Nidec＋LS)

Nidec Strong Presence

Note: LV: Low-Voltage, MV: Medium-Voltage

Alternators

Nidec

Some Presence

LS

Strong Presence

LS

Some Presence

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Synergies (2/2): Combination of Drives and Motors

Products

Target Markets

Nidec's Expertise

Motors

Pre- Transaction

HVAC / Pump

Elevators

CT's

Expertise

Drives

Post-Transaction

FA / Robotics

Pre-

Transaction

Wind Power Generation

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ACIM Business, Post-Transaction

Pre-Transaction Post-Transaction

Sales (¥bn)

600

• Competitive in North America as a motor specialist company

• Room for further growth in low-voltage drives market and in areas outside North America

• Become one of the global major industrial companies with full lineup of products incl. drives

400

200

0

2011/3 2016/3 2018/3 (Target) 2021/3 (Target)

Existing business Additional sales to be gained by the Transaction

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Nidec will Continue to Accelerate its Growth

toward Vision 2020

FY2010

Net sales: ¥676.0 billion

FY2015

Net sales: ¥1.2 trillion

FY2020

Net sales: ¥2.0 trillion (target)

(Sales: Billions of Yen)

Small precision

motorsAutomotive

Appliance, commercial and industrial products

Other product groups

700.0

to

1.0 tr

billion M&As

94.2

69.2

348.4

Key Growth Areas

164.2

448.0

271.3283.4

Key Growth Areas

175.6

400.0

to 600.0

400.0

to 600.0

Key Growth Areas

200.0

to 300.0

IFRS

IFRS

U.S. GAAP

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-"7"" 11 for dreams