NIDEC : Establishment of Joint Venture with PSA for EV Traction Motor Business

NIDEC CORPORATION

Establishment of Joint Venture with PSA for EV Traction Motor Business

Nidec Corporation

December 4th, 2017

•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 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.

1/10

•Outline of the Joint Venture

Company Name • To be determined

BusinessScope • Development, production and sales of automotive electric traction motors

Establishment • March - April2018 (Subject to antitrust filing approval)

• Head office : Carrieres sous Poissy, France (PSA location)

Location(Planned)

Number of Employees

• R&D facility : Carrieres sous Poissy, France (PSA location)

• Production facility : Tremery, France (PSA location)

• Approximately 60 people initially (Number of employees after mass production is to be determined )

Shareholders • Nidec Leroy-Somer Holding：50%

• PSA automobiles*：50% *PSA automobiles is a French company of Groupe PSA

Initial Share Capital • €15 million

Total Investment • €220 million

2/10

•Outline of Nidec Leroy-Somer Holding and Groupe PSA

Nidec Leroy-Somer Holding

Main Business

Head Office

Sales, Number of employees

（FY2016）

Joined Nidec Group from 2017

R&D, manufacturing and sale of alternators, motors & drives

Angouleme, France

Approx. US$ 1,000 million 7,200 employees

2nd largest

automobile manufacturer in Europe

R&D, manufacturing and sale of automobiles

Paris, France Approx. €55,000 million

200,000 employees

3/10

•Groupe PSA : European Champion , Worldwide OEM

200 000 employees

International Footprint with >40 plants and 10 R&D centers

#2 OEM in Europe, #9 OEM Worldwide

#1 / #2 Positions Across Key European Markets

Leader in CO2 Compliance, strongly in action for electrification

5 Complementary Brands （Peugeot, Citroen, DS Automobiles, OPEL, Vauxhall）

Vehicles

Auto Revenue

Auto EBITDA

4/10

•Nidec Leroy-Somer Holding Track Record in EV* Market

Good track record in R&D, manufacturing and sales for EV* traction motor

Car sharing Service

*The meaning of EV is BEV in this slide.

5/10

•Acceleration of global EV* shift

Leading countries announced sales ban of diesel cars in recent months

India France

U.K.

From 2030

From 2040

From 2040

China

Proposed regulation obliges OEMs to sell 10% of new car as "New Energy Vehicle" from 2019 in China.

PSA 20 or more BEV or 80% PHEV by 2021. 80% of the portfolio electrified by 2023.

V All vehicles sold 2019 onwards to be EV or HV.

G 20 or more EV and FCV models to be released by 2023.

V 50 or more EV models to be released by 2025. Target annual shipment of 3 million units.

D EV or HV model introduced to all categories by 2022.

T EV mass production by 2020.

6/10

*The meaning of EV is HEV & BEV in this slide.

•Expansion of Automotive Motor Market

Innovations and regulations accelerate automotive electrification

Air flow (800 billion

Chassis

yen)

Powertrain

(400 billion

yen)

2030

(3.9 trillion yen)

Air flow (600 billion yen)

Powertrain

Body (900 billion

yen)

6 trillion

yen

Chassis

(200 billion yen)

Body

2016

2.8

trillion yen

(1.5 trillion yen)

(500 billion yen)

Nidec's estimates based on various sources. This slide includes forward-looking statements. See Disclaimer on Page 1.

7/10

•Background Behind the Establishment of Joint Venture

Long term business relationship and business basis being in France lead to formation of joint venture

Nidec Leroy-Somer Holding

8/10

•Objective of Joint Venture

Accelerate evolution in EV* traction motor together

./ Collaborate to minimize cost and maximize time efficiency on product development

Joint Venture

EV* Traction Motor

./ Develop the right product by combining PSA knowledge and Nidec's technical capability to cater customer requirement

Nidec Leroy-Somer Holding

Motor

./ Manufacture the product in competitive plants.

./ Sell the electric motors to PSA

*The meaning of EV is HEV & BEV in this slide.

and other OEMs.

9/10

• Meaning of establishing Joint Venture

Direct supply to OEM Customers

JV to become No.1 in automotive traction motor market: JV to supply EV* traction motors to PSA group

Others 9%

(Billions of Yen)

1,000

TV

H 4%24%

6%

D

800

600

6%

F 7%

B 7%

F

7% N

14%

PSA 16%

400

200

0

Source: European share information calculated by PSA

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 10/10

*The meaning of EV is HEV & BEV in this slide.

This slide includes forward-looking statements. See Disclaimer on Page 1.

*Quote from Fiscal First-Half 2017 Financial Results

. IIfor dreams