NIDEC : Financial Results (April-September 2017)

FOR IMMEDIATE RELEASE

Contact:

Masahiro Nagayasu General Manager Investor Relations

+81-75-935-6140

ir@nidec.com

UNAUDITED INTERIM FINANCIAL STATEMENTS (IFRS)

Released on October 24, 2017

Stock Listings: Tokyo Stock Exchange

Head Office: Kyoto, Japan

Date of Filing of Japanese Quarterly Report (Plan): November 13, 2017

1. Selected Consolidated Financial Performance Information for the Six Months Ended September 30, 2017 (IFRS) (unaudited)

2. Consolidated Results of Operations

   (Yen in millions)

   Six months ended September 30
   2016	2017
   Net sales Ratio of change from the same period of previous fiscal year	564,030 (4.0)%	715,890 26.9%
   Operating profit Ratio of change from the same period of previous fiscal year	68,985 15.7%	82,612 19.8%
   Profit before income taxes Ratio of change from the same period of previous fiscal year	66,274 6.6%	76,630 15.6%
   Profit attributable to owners of the parent Ratio of change from the same period of previous fiscal year	50,094 6.9%	60,074 19.9%
   Comprehensive income for the period Ratio of change from the same period of previous fiscal year	(26,001) -	89,674 -

   (Yen)

   Six months ended September 30
   2016	2017
   Earnings per share attributable to owners of the parent - Basic	168.89	202.90
   Earnings per share attributable to owners of the parent - Diluted	-	-

3. Consolidated Financial Position

4. (Yen in millions)

   March 31, 2017	September 30, 2017
   Total assets	1,676,106	1,772,631
   Total equity	855,837	926,984
   Total equity attributable to owners of the parent	846,603	917,434
   Ratio of total equity attributable to owners of the parent to total assets	50.5%	51.8%

5. Dividends (unaudited)

   (Yen)

   Year ended March 31, 2017 (actual)	Year ending March 31, 2018
   Interim dividend per share	40.00	45.00 (actual)
   Year-end dividend per share	45.00	50.00 (target)
   Annual dividend per share	85.00	95.00 (target)

   (Note) Revision of previously announced dividend targets during this reporting period: Yes

6. Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2018)

   (Yen in millions)

   Year ending March 31, 2018
   Net sales	1,450,000
   Operating profit	170,000
   Profit before income taxes	163,000
   Profit attributable to owners of the parent	128,000
   Earnings per share attributable to owners of the parent - Basic (Yen)	432.32

   (Note) Revision of the previously announced financial performance forecast during this reporting period: Yes

7. Others

9. Changes in significant subsidiaries (changes in "specified subsidiaries" (tokutei kogaisha) accompanying changes in the scope of consolidation) during this period:

   None

10. Changes in accounting policies:

11. Changes due to revisions to accounting standards: None

12. Changes due to other reasons: None

13. Changes in accounting estimates: None

14. Number of shares issued (common stock)

15. Number of shares issued at the end of each period (including treasury stock): 298,142,234 shares at March 31, 2017

    298,142,234 shares at September 30, 2017

16. Number of treasury stock at the end of each period: 1,544,634 shares at March 31, 2017

    2,066,518 shares at September 30, 2017

17. Weighted-average number of shares issued at the beginning and end of each period: 296,600,339 shares for the six months ended September 30, 2016

18. 296,076,556 shares for the six months ended September 30, 2017

    NIDEC (Nidec Corporation and its consolidated subsidiaries) finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017. Condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    Investor presentation materials relating to our financial results for the six months ended September 30, 2017 are expected to be published on our corporate website on October 25, 2017.

    1. Operating and Financial Review and Prospects‌

19. Analysis of Operating Results

20. Overview of Business Environment for the Six Months Ended September 30, 2017

    In the global economy during the six months ended September 30, 2017, the U.S. economy continued to expand moderately, and the country's Federal Reserve Board (FRB) decided to start reducing its assets, and embarked on a complete lifting of its quantitative easing policy. In the meantime, with the European economy on a recovery track, discussion started within the European Central Bank (ECB) on monetary easing and reduction. As the Japanese economy continued its moderate recovery, the Chinese economy grew more strongly than anticipated as well, making the basic interest rate likely to be raised by the end of this year.

    It was under such an environment that NIDEC (Nidec Corporation and its consolidated subsidiaries) continued to pursue our targets for the fiscal year ending March 31, 2021 of consolidated net sales of ¥2 trillion and an operating profit ratio of 15% based on our mid-term strategic goal, "Vision 2020," and achieved in the six months ended September 30, 2017 the highest net sales, operating profit, profit before income taxes and profit attributable to owners of the parent for the period in our history.

21. Consolidated Operating Results

22. Consolidated Operating Results for the Six Months Ended September 30, 2017 ("this six-month period"), Compared to the Six Months Ended September 30, 2016 ("the same period of the prior year")

    (Yen in millions)

    Six months ended September 30, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales	564,030	715,890	151,860	26.9%
    Operating profit	68,985	82,612	13,627	19.8%
    Operating profit ratio	12.2%	11.5%	-	-
    Profit before income taxes	66,274	76,630	10,356	15.6%
    Profit attributable to owners of the parent	50,094	60,074	9,980	19.9%

    Consolidated net sales increased 26.9% to ¥715,890 million for this six-month period compared to the same period of the prior year, recording the highest interim net sales in our history. Operating profit increased 19.8% to ¥82,612 million for this six-month period compared to the same period of the prior year, also recording the highest interim operating profit in our history. The average exchange rate between the Japanese yen and the U.S. dollar for this

    six-month period was ¥111.06 to the U.S. dollar, which reflected an approximate 5% depreciation of the Japanese yen against the U.S. dollar, 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 ¥126.29 to the Euro, which reflected an approximate 7% depreciation of the Japanese yen against the Euro, 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 approximately

    ¥26,200 million and our operating profit approximately ¥4,500 million for this six-month period compared to the same period of the prior year.

    Profit before income taxes increased 15.6% to ¥76,630 million for this six-month period compared to the same period of the prior year and profit attributable to owners of the parent increased 19.9% to ¥60,074 million for this six-month period compared to the same period of the prior year, achieving the highest interim profit in our history, respectively.

    NIDEC finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017. NIDEC's condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    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, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of small precision motors		211,716	220,474	8,758	4.1%
    Hard disk drives spindle motors	90,366	93,722	3,356	3.7%
    Other small precision motors	121,350	126,752	5,402	4.5%
    Operating profit of small precision motors		32,967	36,142	3,175	9.6%
    Operating profit ratio		15.6%	16.4%	-	-

    Net sales of small precision motors increased 4.1% to ¥220,474 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 small precision motors approximately ¥9,200 million for this six-month period compared to the same period of the prior year.

    Net sales of spindle motors for hard disk drives, or HDDs, for this six-month period increased 3.7% to ¥93,722 million compared to the same period of the prior year. Although the number of units sold of spindle motors for HDDs decreased approximately 5% compared to the same period of the prior year, there were increases in sales due to a positive effect of the foreign currency exchange rate fluctuations.

    Net sales of other small precision motors for this six-month period increased 4.5% to

    ¥126,752 million compared to the same period of the prior year. This increase was mainly due to an increase in sales of brushless DC motors and fan motors.

    Operating profit of small precision motors increased 9.6% to ¥36,142 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 operating profit of small precision motors approximately ¥1,900 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, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of automotive, appliance, commercial and industrial products		265,645	390,572	124,927	47.0%
    Appliance, commercial and industrial products	141,581	250,073	108,492	76.6%
    Automotive products	124,064	140,499	16,435	13.2%
    Operating profit of automotive, appliance, commercial and industrial products		27,969	38,644	10,675	38.2%
    Operating profit ratio		10.5%	9.9%	-	-

    Net sales of automotive, appliance, commercial and industrial products increased 47.0% to ¥390,572 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 approximately ¥14,200 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 76.6% compared to the same period of the prior year. This increase was primarily due to the newly consolidated subsidiaries acquired in the three months ended March 31, 2017 and

    the three months ended September 30, 2017.

    Net sales of automotive products for this six-month period increased 13.2% compared to the same period of the prior year due to increases in sales for automotive motors such as electric power steering motors and products of control valves at Nidec Tosok Corporation and positive effect of the foreign currency exchange rate fluctuations.

    Operating profit of automotive, appliance, commercial and industrial products increased 38.2% to ¥38,644 million for this six-month period compared to the same period of the prior year mainly due to an increase in sales. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of automotive, appliance, commercial and industrial products approximately ¥2,100 million for this six-month period compared to the same period of the prior year.

    Excluding sales of approximate ¥85,100 million and operating profit of approximate

    ¥3,300 million for this six-month period by Nidec Leroy-Somer Holding and Nidec Control Techniques Limited which were acquired in three month ended March 31, 2017, and Nidec Global Appliance Compressors which was acquired in three month ended September 30, 2017, operating profit ratio of automotive, appliance, commercial and industrial products would have been higher than 11.6% for this six-month period.

    Machinery

    (Yen in millions)

    Six months ended September 30, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of machinery	53,884	67,849	13,965	25.9%
    Operating profit of machinery	10,200	12,586	2,386	23.4%
    Operating profit ratio	18.9%	18.6%	-	-

    Net sales of machinery increased 25.9% to ¥67,849 million for this six-month period compared to the same period of the prior year due to the increase in sales of press machines and Nidec Sankyo Corporation's LCD panel handling robots.

    Operating profit of machinery increased 23.4% to ¥12,586 million for this six-month period compared to the same period of the prior year due to the increase in sales.

    Electronic and optical components

    (Yen in millions)

    Six months ended September 30, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of electronic and optical components	31,032	34,997	3,965	12.8%
    Operating profit of electronic and optical components	4,878	5,531	653	13.4%
    Operating profit ratio	15.7%	15.8%	-	-

    Net sales of electronic and optical components increased 12.8% to ¥34,997 million this six-month period compared to the same period of the prior year. Operating profit of electronic and optical components increased 13.4% to ¥5,531 million for this six-month period compared to the same period of the prior year due to the increase in sales.

    Other products

    (Yen in millions)

    Six months ended September 30, 2016	Six months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of other products	1,753	1,998	245	14.0%
    Operating profit of other products	287	281	(6)	(2.1)%
    Operating profit ratio	16.4%	14.1%	-	-

    Net sales of other products increased 14.0% to ¥1,998 million and operating profit of other products decreased 2.1% to ¥281 million for this six-month period compared to the same period of the prior year.

    Consolidated Operating Results for the Three Months Ended September 30, 2017 ("this 2Q"), Compared to the Three Months Ended June 30, 2017 ("the previous 1Q")

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales	343,091	372,799	29,708	8.7%
    Operating profit	39,022	43,590	4,568	11.7%
    Operating profit ratio	11.4%	11.7%	-	-
    Profit before income taxes	36,326	40,304	3,978	11.0%
    Profit attributable to owners of the parent	28,194	31,880	3,686	13.1%

    Consolidated net sales increased 8.7% to ¥372,799 million for this 2Q compared to the previous 1Q and operating profit increased 11.7% to ¥43,590 million for this 2Q compared to the previous 1Q, achieving the highest net sales and operating profit for quarterly period in our history.

    The average exchange rate between the Japanese yen and the U.S. dollar for this 2Q was

    ¥111.03 to the U.S. dollar, which reflected a slight appreciation of the Japanese yen against the

    U.S. dollar, compared to the previous 1Q. The average exchange rate between the Japanese yen and the Euro for this 2Q was ¥130.38 to the Euro, which reflected an approximate 7% depreciation of the Japanese yen against the Euro, compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales approximately ¥3,600 million as well as on our operating profit approximately ¥400 million for this 2Q compared to the previous 1Q.

    Profit before income taxes increased 11.0% to ¥40,304 million for this 2Q compared to the previous 1Q and profit attributable to owners of the parent increased 13.1% to ¥31,880 million for this 2Q compared to the previous 1Q, achieving the highest profit attributable to owners of the parent for quarterly period in our history.

    Operating Results by Product Category for this 2Q Compared to the Previous 1Q

    Small precision motors

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of small precision motors		103,753	116,721	12,968	12.5%
    Hard disk drives spindle motors	44,730	48,992	4,262	9.5%
    Other small precision motors	59,023	67,729	8,706	14.8%
    Operating profit of small precision motors		16,914	19,228	2,314	13.7%
    Operating profit ratio		16.3%	16.5%	-	-

    Net sales of small precision motors increased 12.5% to ¥116,721 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors approximately ¥4 million for this 2Q compared to the previous 1Q.

    Net sales of spindle motors for HDDs increased 9.5% to ¥48,992 million for this 2Q compared to the previous 1Q. The number of units sold of spindle motors for HDDs for this 2Q increased approximately 9% compared to the previous 1Q.

    Net sales of other small precision motors for this 2Q increased 14.8% to ¥67,729 million compared to the previous 1Q due to increase in sales in fan motors and other small precision motors.

    Operating profit of small precision motors increased 13.7% to ¥19,228 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a negative effect on our operating profit of small precision motors approximately ¥300 million for this 2Q compared to the previous 1Q.

    Automotive, appliance, commercial and industrial products

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of automotive, appliance, commercial and industrial products		188,893	201,679	12,786	6.8%
    Appliance, commercial and industrial products	120,184	129,889	9,705	8.1%
    Automotive products	68,709	71,790	3,081	4.5%
    Operating profit of automotive, appliance, commercial and industrial products		17,435	21,209	3,774	21.6%
    Operating profit ratio		9.2%	10.5%	-	-

    Net sales of automotive, appliance, commercial and industrial products increased 6.8% to

    ¥201,679 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of automotive, appliance, commercial and industrial products approximately ¥3,100 million for this 2Q compared to the previous 1Q.

    Net sales of appliance, commercial and industrial products for this 2Q increased 8.1% compared to the previous 1Q mainly due to increase in sales in each area and consolidation of Nidec Global Appliance Compressors which was acquired in this 2Q.

    Net sales of automotive products for this 2Q increased 4.5% compared to the previous 1Q mainly due to positive effect of the foreign exchange fluctuations and increases in sales for automotive motors such as electric power steering motors.

    Operating profit of automotive, appliance, commercial and industrial products increased 21.6% to ¥21,209 million for this 2Q compared to the previous 1Q mainly due to the increase in sales. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of automotive, appliance, commercial and industrial products approximately

    ¥700 million for this 2Q compared to the previous 1Q.

    Excluding sales of approximate ¥46,500 million and operating profit of approximate

    ¥2,100 million for this 2Q by Nidec Leroy-Somer Holding and Nidec Control Techniques Limited which were acquired in three month ended March 31, 2017, and Nidec Global Appliance Compressors which was acquired in this 2Q, operating profit ratio of automotive, appliance, commercial and industrial products would have been higher than 12.3% for this 2Q.

    Machinery

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of machinery	32,583	35,266	2,683	8.2%
    Operating profit of machinery	6,329	6,257	(72)	(1.1)%
    Operating profit ratio	19.4%	17.7%	-	-

    Net sales of machinery increased 8.2% to ¥35,266 million for this 2Q compared to the previous 1Q due to the increase in sales of press machines and Nidec Sankyo Corporation's LCD panel handling robots.

    Operating profit of machinery decreased 1.1% to ¥6,257 million for this 2Q compared to the previous 1Q.

    Electronic and optical components

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of electronic and optical components				16,939	18,058	1,119	6.6%
    Operating profit optical components	of	electronic	and	3,062	2,469	(593)	(19.4)%
    Operating profit ratio				18.1%	13.7%	-	-

    Net sales of electronic and optical components increased 6.6% to ¥18,058 million for this 2Q compared to the previous 1Q.

    Operating profit of electronic and optical components decreased 19.4% to ¥2,469 million for this 2Q compared to the previous 1Q due to changes in product mix.

    Other products

    (Yen in millions)

    Three months ended June 30, 2017	Three months ended September 30, 2017	Increase or decrease	Increase or decrease ratio
    Net sales of other products	923	1,075	152	16.5%
    Operating profit of other products	151	130	(21)	(13.9)%
    Operating profit ratio	16.4%	12.1%	-	-

    Net sales of other products increased 16.5% to ¥1,075 million for this 2Q compared to the previous 1Q.

    Operating profit of other products decreased 13.9% to ¥130 million for this 2Q compared to the previous 1Q.

23. Financial Position

    (Yen in millions)

    As of March 31, 2017	As of September 30, 2017	Increase or decrease
    Total assets	1,676,106	1,772,631	96,525
    Total liabilities	820,269	845,647	25,378
    Total equity attributable to owners of the parent	846,603	917,434	70,831
    Interest-bearing debt *1	412,431	385,390	(27,041)
    Net interest-bearing debt *2	90,851	98,218	7,367
    Debt ratio (%)*3	24.6	21.7	(2.9)
    Debt to equity ratio ("D/E ratio") (times) *4	0.49	0.42	(0.07)
    Net D/E ratio (times) *5	0.11	0.11	(0.00)
    Ratio of total equity attributable to owners of the parent to total assets (%)*6	50.5	51.8	1.3

    (Notes) *1. The sum of "short term borrowings", "long term debt due within one year" and "long term debt" in our consolidated statement of financial position

    *2. "Interest-bearing debt" less "cash and cash equivalents"

    *3. "Interest-bearing debt" divided by "total assets"

    *4. "Interest-bearing debt" divided by "total equity attributable to owners of the parent"

    *5. "Net interest-bearing debt" divided by "total equity attributable to owners of the parent"

    *6. "Total equity attributable to owners of the parent" divided by "total assets"

    Total assets increased approximately ¥96,500 million to ¥1,772,631 million as of September 30, 2017 compared to March 31, 2017. This was mainly due to increase of approximate ¥44,700 million in trade and other receivables, approximate ¥30,900 million in property, plant, and equipment, approximate ¥29,300 million in inventories. On the other hand, there was a decrease of approximate ¥ 34,400 million in cash and cash equivalents.

    Total liabilities increased approximately ¥25,400 million to ¥845,647 million as of September 30, 2017 compared to March 31, 2017. This was mainly due to increase of approximate ¥173,500 million in our long term debt and approximate ¥41,100 million in trade and other payable, while there were decreases in short term borrowings of approximate

    ¥147,900 million and in our long term debt due within one year of approximate ¥52,600 million. As a result, our interest-bearing debt decreased approximately ¥27,000 million. Specifically, our short term borrowings decreased approximately ¥147,900 million to approximate ¥18,700 million, our long term debt due within one year decreased approximately ¥52,600 million to approximate ¥31,500 million, and our long term debt increased approximately ¥173,500 million to approximate ¥335,300 million as of September 30, 2017 compared to March 31, 2017. The increase of approximate ¥173,500 million in our long term debt was mainly due to the loan of

    $750 million as a portion of the funds necessary to acquire the motors, drives and electric power generation businesses of Emerson Electric Co. (currently, Nidec Leroy-Somer Holding and Nidec Control Techniques Limited, etc.) and the issuance of approximate ¥50,000 million sixth series unsecured bonds and approximate ¥65,000 million seventh series unsecured bonds. On the other hand, there was a decrease of approximate ¥65,000 million due to the redemption of first series of unsecured bonds. The decrease of approximate ¥147,900 million in our short term borrowings was mainly due to repayment of borrowings in a yen through portion of bonds issued and repayment of the borrowings in dollars.

    As a result, our net interest-bearing debt increased to approximate ¥98,200 million as of September 30, 2017 from approximate ¥90,900 million as of March 31, 2017. Our debt ratio decreased to 21.7% as of September 30, 2017 from 24.6% as of March 31, 2017. Our D/E ratio

    decreased to 0.42 as of September 30, 2017 from 0.49 as of March 31, 2017. Our net D/E ratio

    remains unchanged as of September 30, 2017 from 0.11 as of March 31, 2017.

    Total equity attributable to owners of the parent increased approximately ¥70,800 million to approximate ¥917,434 million as of September 30, 2017 compared to March 31, 2017. Ratio of total equity attributable to owners of the parent to total assets increased to 51.8% as of September 30, 2017 from 50.5% as of March 31, 2017. The increase of total equity attributable to owners of the parent to total assets was mainly due to an increase in retained earnings of approximate ¥48,800 million, and an increase in other components of equity of approximate

    ¥27,200 million caused mainly by foreign currency translation adjustments. On the other hand, there was a decrease of approximate ¥5,200 million of acquisition of treasury stock as of September 30, 2017 compared to March 31, 2017.

    Assets totaled approximate ¥36,200 million mainly consisting of trade and other receivables of approximate ¥7,800 million and liabilities totaled ¥13,800 million consisting of trade and other payable of approximate ¥9,200 million brought by the acquisition of Secop Group (currently, Nidec Global Appliance Compressors, etc.) are included.

    NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    Overview of Cash Flow

    (Yen in millions)

    Six months ended September 30		Increase or decrease
    2016	2017
    Net cash provided by operating activities	96,493	74,242	(22,251)
    Net cash used in investing activities	(34,760)	(51,879)	(17,119)
    Free cash flow *1	61,733	22,363	(39,370)
    Net cash used in financing activities	(34,942)	(67,643)	(32,701)

    (Note) *1. Free cash flow is the sum of "net cash provided by operating activities" and "net cash used in investing activities".

    Cash flows from operating activities for the six months ended September 30, 2017 ("the six-month period") came to a net cash inflow of ¥74,242 million. Compared to the six months ended September 30, 2016 ("the same period of the previous year"), our cash inflow from operating activities for the six-month period decreased approximately ¥22,300 million. This decrease was mainly due to increases of approximate ¥15,900 million in inventories and approximate ¥12,200 million in accounts receivable and a decrease of approximate ¥11,200 million in accounts payable, although there was an increase of approximate ¥9,900 million of our profit for the period.

    Cash flows from investing activities for the six-month period came to a net cash outflow of ¥51,879 million. Compared to the same period of the previous year, our net cash outflow from investing activities for the six-month period increased approximately ¥17,100 million mainly due to increases in additions to property, plant and equipment of approximate ¥11,400 million and in acquisitions of businesses of approximate ¥5,700 million.

    As a result, we had a positive free cash flow of ¥22,363 million for the six-month period, a decrease of approximate ¥39,400 million compared to a positive free cash flow of ¥61,733 million for the same period of the previous year.

    Cash flows from financing activities for the six-month period came to a net cash outflow of ¥67,643 million. Compared to the same period of the previous year, our net cash outflow from financing activities for the six-month period increased approximately ¥32,700 million mainly due to an increase in net cash outflow from short term borrowings of approximate

    ¥137,800 million and increases outflow from redemption of corporate bonds of approximate

    ¥65,000 million and repayments of long term debt of approximate ¥21,100 million. On the other hand, inflow from issuance of corporate bonds and long term debt increased approximately

    ¥115,000 million and ¥83,000 million, respectively.

    As a result of the foregoing and the impact of foreign exchange fluctuations of approximate positive ¥10,900 million, the balance of cash and cash equivalents as of September 30, 2017 decreased approximately ¥34,400 million to ¥287,172 million from September 30, 2016.

24. Business Forecasts for the Fiscal Year ending March 31, 2018

25. The financial results for the six months ended September 30, 2017 exceeded our previous forecasts. In view of this favorable profit growth during the above financial period, we have revised our previously announced financial performance forecasts for the fiscal year ending March 31, 2018 as shown below. The exchange rates used for the preparation of the foregoing forecasts remain unchanged from those announced previously (i.e., US$1 = ¥105 and €1 = ¥110 respectively).

    In addition, we have comprehensively considered our financial condition, profit levels, dividend payout ratio, etc., and revised our year-end dividend target upwards by ¥5 to ¥50 per share compared to the previous target of ¥45. As a result, our annual dividend target is ¥95 per share.

    Forecast of consolidated results for the fiscal year ending March 31, 2018

    Net sales ¥1,450,000 million (Up 120.9% from the previous fiscal year)

    Operating profit ¥170,000 million (Up 121.9% from the previous fiscal year)

    Profit before income taxes ¥163,000 million (Up 115.3% from the previous fiscal year)

    Profit attributable to owners of

    the parent ¥128,000 million (Up 115.3% from the previous fiscal year)

    (Notes) 1. Consolidated results are based on IFRS.

    2. The exchange rates used for the preparation of the foregoing forecasts are: US$1 = ¥105 and €1 = ¥110.

    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.

    .

    Cautionary Note Regarding Forward-Looking Statements

    This report contains forward-looking statements based on our current expectations, assumptions, estimates and projections in light of the information currently available. We cannot make any assurances for our expectations expressed in these forward-looking statements. Actual results could be materially different from our expectations depending on various factors.

    2. Condensed Quarterly Consolidated Financial Statements and Other Information‌
26. Condensed Quarterly Consolidated Statements of Financial Position

    (Yen in millions)

    March 31, 2017		September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%
    Assets Current assets Cash and cash equivalents Trade and other receivables Other financial assets Income tax receivables Inventories Other current assets Total current assets Non-current assets Property, plant, and equipment Goodwill Intangible assets Investments accounted for using the equity method Other investments Other financial assets Deferred tax assets Other non-current assets Total non-current assets Total assets	321,580	287,172	(34,408)
    	348,897	393,612	44,715
    	2,951	2,320	(631)
    	1,676	1,533	(143)
    	196,629	225,944	29,315
    	28,342	31,862	3,520
    	900,075	53.7	942,443	53.2	42,368
    	394,051		424,959		30,908
    	260,042		275,354		15,312
    	77,215		78,214		999
    	1,125		1,103		(22)
    	19,583		22,449		2,866
    	3,764		4,455		691
    	15,526		17,689		2,163
    	4,725		5,965		1,240
    	776,031	46.3	830,188	46.8	54,157
    	1,676,106	100.0	1,772,631	100.0	96,525

    (Yen in millions)

    March 31, 2017		September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%
    Liabilities	166,606	18,674	(147,932)
    Current liabilities
    Short term borrowings
    Long term debt due within one year	84,040	31,455	(52,585)
    Trade and other payables	251,236	292,350	41,114
    Other financial liabilities	1,844	1,624	(220)
    Income tax payables	6,690	7,027	337
    Provisions	25,210	27,755	2,545
    Other current liabilities	66,461	71,138	4,677
    Total current liabilities	602,087	35.9	450,023	25.4	(152,064)
    Non-current liabilities
    Long term debt	161,785		335,261		173,476
    Other financial liabilities	1,315		1,018		(297)
    Retirement benefit liabilities	22,656		25,117		2,461
    Provisions	3,614		3,874		260
    Deferred tax liabilities	25,881		27,118		1,237
    Other non-current liabilities	2,931		3,236		305
    Total non-current liabilities	218,182	13.0	395,624	22.3	177,442
    Total liabilities	820,269	48.9	845,647	47.7	25,378
    Equity
    Common stock	87,784	5.2	87,784	5.0	-
    Additional paid-in capital	118,340	7.1	118,340	6.7	(0)
    Retained earnings	715,940	42.7	764,781	43.1	48,841
    Other components of equity	(63,318)	(3.8)	(36,167)	(2.0)	27,151
    Treasury stock	(12,143)	(0.7)	(17,304)	(1.0)	(5,161)
    Total equity attributable to owners of the parent	846,603	50.5	917,434	51.8	70,831
    Non-controlling interests	9,234	0.6	9,550	0.5	316
    Total equity	855,837	51.1	926,984	52.3	71,147
    Total liabilities and equity	1,676,106	100.0	1,772,631	100.0	96,525

27. Condensed Quarterly Consolidated Statements of Income

    and Condensed Quarterly Consolidated Statements of Comprehensive Income

    Six months ended September 30				Increase or decrease
    2016		2017
    Amounts	%	Amounts	%	Amounts	%
    Net sales Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Operating profit Financial income Financial expenses Derivative gain (loss) Foreign exchange differences Share of net profit (loss) from associate accounting using the equity method Profit before income taxes Income tax expenses Profit for the period Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period	564,030 (428,562)	100.0 (76.0)	715,890 (541,189)	100.0 (75.6)	151,860 (112,627)	26.9 26.3
    	135,468	24.0	174,701	24.4	39,233	29.0
    	(40,881) (25,602)	(7.3) (4.5)	(65,300) (26,789)	(9.1) (3.8)	(24,419) (1,187)	59.7 4.6
    	68,985	12.2	82,612	11.5	13,627	19.8
    	1,332 (1,158) (2,695) (173) (17)	0.3 (0.2) (0.5) (0.0) (0.0)	2,854 (3,367) 92 (5,581) 20	0.4 (0.4) 0.0 (0.8) 0.0	1,522 (2,209) 2,787 (5,408) 37	114.3 190.8 - - -
    	66,274	11.8	76,630	10.7	10,356	15.6
    	(15,774)	(2.8)	(16,246)	(2.3)	(472)	3.0
    	50,500	9.0	60,384	8.4	9,884	19.6
    	50,094 406	8.9 0.1	60,074 310	8.4 0.0	9,980 (96)	19.9 (23.6)
    	50,500	9.0	60,384	8.4	9,884	19.6

    For the six months ended September 30, 2016 and 2017 Condensed Quarterly Consolidated Statements of Income

    Condensed Quarterly Consolidated Statements of Comprehensive Income

    (Yen in millions)

    Year ended March 31, 2017
    Amounts	%
    1,199,311	100.0
    (913,643)	(76.2)
    285,668	23.8
    (93,458)	(7.8)
    (52,807)	(4.4)
    139,403	11.6
    3,368	0.3
    (3,063)	(0.2)
    405	0.0
    1,771	0.1
    (534)	(0.0)
    141,350	11.8
    (29,364)	(2.5)
    111,986	9.3
    111,036	9.2
    950	0.1
    111,986	9.3

    (Yen in millions)

    Six months ended September 30		Increase or decrease
    2016	2017
    Amounts	Amounts	Amounts	%
    Profit for the period Other comprehensive income, net of taxation Items that will not be reclassified to net profit or loss: Remeasurement of defined benefit plans Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss: Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges Fair value movements on FVTOCI debt financial assets Total other comprehensive income for the period, net of taxation Comprehensive income for the period Comprehensive income for the period attributable to: Owners of the parent Non-controlling interests Comprehensive income for the period	50,500	60,384	9,884	19.6
    	(110)	(46)	64	-
    	345	2,137	1,792	519.4
    	(76,858)	26,699	103,557	-
    	121	502	381	314.9
    	1	(2)	(3)	-
    	(76,501)	29,290	105,791	-
    	(26,001)	89,674	115,675	-
    	(25,727)	89,339	115,066	-
    	(274)	335	609	-
    	(26,001)	89,674	115,675	-

    Year ended March 31, 2017
    Amounts
    111,986
    761 2,694 (8,316) 1,118 (0)
    (3,743)
    108,243
    107,342 901
    108,243

    For the three months ended September 30, 2016 and 2017 Condensed Quarterly Consolidated Statements of Income

    (Yen in millions)

    Three months ended September 30				Increase or decrease
    2016		2017
    Amounts	%	Amounts	%	Amounts	%
    Net sales Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Operating profit Financial income Financial expenses Derivative gain (loss) Foreign exchange differences Share of net profit from associate accounting using the equity method Profit before income taxes Income tax expenses Profit for the period Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period	287,824	100.0	372,799	100.0	84,975	29.5
    	(216,297)	(75.1)	(282,418)	(75.8)	(66,121)	30.6
    	71,527	24.9	90,381	24.2	18,854	26.4
    	(21,124)	(7.4)	(33,246)	(8.9)	(12,122)	57.4
    	(12,942)	(4.5)	(13,545)	(3.6)	(603)	4.7
    	37,461	13.0	43,590	11.7	6,129	16.4
    	643	0.2	1,591	0.4	948	147.4
    	(626)	(0.2)	(1,944)	(0.5)	(1,318)	210.5
    	(278)	(0.1)	74	0.0	352	-
    	(21)	(0.0)	(3,012)	(0.8)	(2,991)	-
    	8	0.0	5	0.0	(3)	(37.5)
    	37,187	12.9	40,304	10.8	3,117	8.4
    	(8,938)	(3.1)	(8,218)	(2.2)	720	(8.1)
    	28,249	9.8	32,086	8.6	3,837	13.6
    	28,066	9.7	31,880	8.6	3,814	13.6
    	183	0.1	206	0.0	23	12.6
    	28,249	9.8	32,086	8.6	3,837	13.6

    Condensed Quarterly Consolidated Statements of Comprehensive Income

    (Yen in millions)

    Three months ended September 30		Increase or decrease
    2016	2017
    Amounts	Amounts	Amounts	%
    Profit for the period Other comprehensive income, net of taxation Items that will not be reclassified to net profit or loss: Remeasurement of defined benefit plans Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss: Foreign currency translation adjustments Effective portion of net changes in fair value of cash flow hedges Fair value movements on FVTOCI debt financial assets Total other comprehensive income for the period, net of taxation Comprehensive income for the period Comprehensive income for the period attributable to: Owners of the parent Non-controlling interests Comprehensive income for the period	28,249	32,086	3,837	13.6
    	3	0	(3)	(100.0)
    	1,307	821	(486)	(37.2)
    	(11,100)	17,938	29,038	-
    	(36)	37	73	-
    	0	(2)	(2)	-
    	(9,826)	18,794	28,620	-
    	18,423	50,880	32,457	176.2
    	18,202	50,553	32,351	177.7
    	221	327	106	48.0
    	18,423	50,880	32,457	176.2

28. Condensed Quarterly Consolidated Statements of Changes in Equity

    Total equity attributable to owners of the parent						Non- controlling interests	Total equity
    Common Stock	Additional paid-in capital	Retained earnings	Other components of equity	Treasury stock	Total
    As of April 1, 2016	87,784	118,341	625,168	(56,159)	(12,111)	763,023	8,346	771,369
    Comprehensive income
    Profit for the period			50,094	50,094		406	50,500
    Other comprehensive income				(75,821)		(75,821)	(680)	(76,501)
    Total comprehensive income	(1)	(11,864)	(250)	(11)	(25,727)	(274)	(26,001)
    Transactions with owners directly					(11)	-	(11)
    recognized in equity:
    Purchase of treasury stock
    Dividends paid to the owners of the parent				(11,864)	-	(11,864)
    Dividends paid to non-controlling interests		-		(18)	(18)
    Transfer to retained earnings		250		-	-	-
    Other				1	0	63	63
    As of September 30, 2016	87,784	118,340	663,648	(132,230)	(12,121)	725,421	8,117	733,538

    Six months ended September 30, 2016

    Six months ended September 30, 2017

    (Yen in millions)

    (Yen in millions)

    Total equity attributable to owners of the parent						Non- controlling interests	Total equity
    Common Stock	Additional paid-in capital	Retained earnings	Other components of equity	Treasury stock	Total
    As of April 1, 2017	87,784	118,340	715,940	(63,318)	(12,143)	846,603	9,234	855,837
    Comprehensive income
    Profit for the period			60,074	60,074		310	60,384
    Other comprehensive income				29,265		29,265	25	29,290
    Total comprehensive income	(0)	(13,347)	(2,113)	(5,161)	89,339	335	89,674
    Transactions with owners directly					(5,161)	-	(5,161)
    recognized in equity:
    Purchase of treasury stock
    Dividends paid to the owners of the parent					(13,347)	-	(13,347)
    Dividends paid to non-controlling interests		-			(39)	(39)
    Transfer to retained earnings		2,113			-	-	-
    Other		1	(1)		(0)	20	20
    As of September 30, 2017	87,784	118,340	764,781	(36,167)	(17,304)	917,434	9,550	926,984

29. Condensed Quarterly Consolidated Statements of Cash Flows

    (Yen in millions)

    Six months ended September 30		Increase or decrease
    2016	2017
    Cash flows from operating activities: Profit for the period Adjustments to reconcile profit for the period to net cash provided by operating activities Depreciation and amortization (Gain) loss from sales, disposal or impairment of property, plant and equipment Financial (income) expense Share of net loss (profit) from associate accounting using the equity method Deferred income taxes Current income taxes Foreign currency adjustments Increase (decrease) in retirement benefit liability Increase in accounts receivable Increase in inventories Increase in accounts payable Other, net Interests and dividends received Interests paid Income taxes paid	50,500	60,384	9,884
    	28,860	32,832	3,972
    	(1,289)	210	1,499
    	(149)	164	313
    	17	(20)	(37)
    	2,602	(1,869)	(4,471)
    	13,172	18,114	4,942
    	1,106	1,628	522
    	305	1,083	778
    	(16,408)	(28,565)	(12,157)
    	(1,765)	(17,707)	(15,942)
    	32,814	21,664	(11,150)
    	(921)	4,595	5,516
    	1,207	2,806	1,599
    	(1,651)	(3,166)	(1,515)
    	(11,907)	(17,911)	(6,004)
    Net cash provided by operating activities	96,493	74,242	(22,251)
    Cash flows from investing activities:	(30,483)	(41,841)	(11,358)
    Additions to property, plant and equipment
    Proceeds from sales of property, plant and equipment	642	2,185	1,543
    Acquisitions of business, net of cash acquired	(2,242)	(7,919)	(5,677)
    Other, net	(2,677)	(4,304)	(1,627)
    Net cash used in investing activities	(34,760)	(51,879)	(17,119)
    Cash flows from financing activities:	(21,425)	(159,188)	(137,763)
    (Decrease) increase in short term borrowings
    Proceeds from issuance of long term debt	237	83,220	82,983
    Repayments of long term debt	(1,861)	(22,932)	(21,071)
    Proceeds from issuance of corporate bonds	-	115,001	115,001
    Redemption of corporate bonds	-	(65,000)	(65,000)
    Purchase of treasury stock	(11)	(5,161)	(5,150)
    Dividends paid to the owner of the parent	(11,864)	(13,347)	(1,483)
    Other, net	(18)	(236)	(218)
    Net cash (used in) provided by financing activities	(34,942)	(67,643)	(32,701)
    Effect of exchange rate changes on cash and cash equivalents	(33,799)	10,872	44,671
    Net (decrease) increase in cash and cash equivalents	(7,008)	(34,408)	(27,400)
    Cash and cash equivalents at beginning of period	305,942	321,580	15,638
    Cash and cash equivalents at end of period	298,934	287,172	(11,762)

    Year ended March 31
    2017
    111,986 59,700 (1,224) (163) 534 588 28,775 (6,636) (94) (65,582) (5,942) 39,229 (6,465) 3,160 (3,052) (24,961)
    129,853
    (68,718) 1,786 (139,862) (4,682)
    (211,476)
    93,784 58,707 (32,782) 50,001 (50,000) (33) (23,728) (101)
    95,848
    1,413
    15,638
    305,942
    321,580

30. Notes of Condensed Quarterly Consolidated Financial Statements Notes Regarding Going Concern Assumption

Not applicable.

Notes to Condensed Quarterly Consolidated Financial Statements

1. Reporting entity

   Nidec Corporation (the Company) is a corporation located in Japan, whose shares are listed on the Tokyo Stock Exchange. The registered address of headquarters and principal business offices are available on the Company's website (http://www.nidec.com/en-Global/).

   Condensed Quarterly Consolidated Financial Statements as of September 30, 2017 consist of the Company and its consolidated subsidiaries (NIDEC), and shares of associates of NIDEC.

   NIDEC mainly designs, develops, produces, and sells products as described below:

2. Small precision motors, which include spindle motors for hard disk drives, brushless motors, fan motors, vibration motors, brush motors and motor applications.

3. Automotive, appliance, commercial and industrial products, which include automotive motors and components, home appliance, commercial and industrial motors and related products.

4. Machinery, which includes industrial robots, card readers, test systems, press machines and power transmission drives.

5. Electronic and optical components, which include switches, trimmer potentiometers, lens units and camera shutters.

6. Others, which include services.

7. Basis of Preparation

8. Compliance with International Financial Reporting Standards (IFRS)

   The condensed quarterly consolidated financial statements of NIDEC have been prepared in accordance with IAS 34 "Interim Financial Reporting" pursuant to the provision of article 93 of Regulations for Quarterly Consolidated Financial Statements, as the Company meets the criteria of a "Designated IFRS Specified Company" defined under article 1-2 of the regulations.

   The condensed quarterly consolidated financial statements do not include all the information that must be disclosed in the annual consolidated financial statements, and therefore should be used in conjunction with the consolidated financial statements for the year ended March 31, 2017.

9. Basis of measurement

   The condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for some assets and liabilities, including derivative and other financial instruments measured at fair value.

10. Presentation currency and level of rounding

11. The condensed quarterly consolidated financial statements are presented in Japanese Yen, which is also the Company's functional currency, and figures are rounded to the nearest million yen, unless otherwise indicated.

12. Significant accounting policies

    Significant accounting policies adopted in preparation of the condensed quarterly consolidated financial statements are consistent with those used in the preparation of the NIDEC's annual consolidated financial statements for the year ended March 31, 2017.

    Income taxes for six month ended September 30, 2017 are computed using the estimated annual effective tax rate.

13. Significant accounting estimates, judgments and assumptions

    The preparation of the condensed quarterly consolidated financial statements requires management of NIDEC to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results may differ from those estimates.

    The estimates and underlying assumptions are reviewed on an ongoing basis, and the effects resulting from revisions of accounting estimates are recognized in the period in which the estimates are revised and in future periods affected by the revision.

    Judgments and estimates accompanying significant risks that may cause material adjustments to the carrying amounts of assets and liabilities in the current and next fiscal years are the same as those for the condensed consolidated financial statements for the previous fiscal year ended March 31, 2017.

14. Business Combinations

    Pursuant to IFRS 3 "Business Combinations", during the three months ended March 31, 2017, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of E.C.E. S.r.l. and ANA IMEP S.A. (currently, Nidec Motor Corporation Romania). NIDEC's condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflects the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. In addition, during the three months ended September 30, 2017, NIDEC partly completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of the motors, drives and electric power generation businesses of Emerson Electric Co. (currently, Nidec Leroy-Somer Holding and Nidec Control Techniques Limited, etc.). NIDEC's consolidated financial statement for the year ended March 31, 2017 reflects the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

    NIDEC has been evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of companies in the fiscal year ended March 31, 2017 and six months ended September 30, 2017. The assets and liabilities which are currently under evaluation have been recorded on NIDEC's consolidated statement of financial position based on preliminary management estimation as of September 30, 2017.

15. Event after the Reporting Period

16. Completion of Business Succession from Tokyo Maruzen Industry Co., Ltd.

    On October 1, 2017, Nidec Sankyo Corporation, the Company's subsidiary, completed succeeding the business of Tokyo Maruzen Industry Co., Ltd. ("Tokyo Maruzen") by way of an absorption type company split, through a new company formed to this effect (the "Transaction").

    1. Purpose	Tokyo Maruzen develops, manufactures and sells products of electric contact materials, contact rivets and contact staking. The Transaction will help strengthen their capacity in material development, production engineering and manufacturing responsiveness, which will allow to introduce unparalleled sophistication in electric contacts both in terms of quality and reliability to automotive market.
    2. Acquisition method	Funds for the Transaction are own funds.

17. Others (unaudited)

18. Quarterly Financial Data for the three months ended September 30, 2017 and June 30, 2017

    (Yen in millions)

    Three months ended
    June 30, 2017		September 30, 2017
    Amounts	%	Amounts	%
    Net sales	343,091	100.0	372,799	100.0
    Operating profit	39,022	11.4	43,590	11.7
    Profit before income taxes	36,326	10.6	40,304	10.8
    Profit for the period	28,298	8.2	32,086	8.6
    Profit attributable to owners of the parent	28,194	8.2	31,880	8.6

19. Information by Product Category

20. Six months ended September 30, 2016 (Yen in millions)

    Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
    Net sales:	211,716	265,645	53,884	31,032	1,753	564,030	-	564,030
    External sales
    Intersegment	1,018	2,549	4,071	2,642	712	10,992	(10,992)	-
    Total	212,734	268,194	57,955	33,674	2,465	575,022	(10,992)	564,030
    Operating expenses	179,767	240,225	47,755	28,796	2,178	498,721	(3,676)	495,045
    Operating profit	32,967	27,969	10,200	4,878	287	76,301	(7,316)	68,985

    Six months ended September 30, 2017 (Yen in millions)

    Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
    Net sales:	220,474	390,572	67,849	34,997	1,998	715,890	-	715,890
    External sales
    Intersegment	1,321	3,131	7,316	3,836	912	16,516	(16,516)	-
    Total	221,795	393,703	75,165	38,833	2,910	732,406	(16,516)	715,890
    Operating expenses	185,653	355,059	62,579	33,302	2,629	639,222	(5,944)	633,278
    Operating profit	36,142	38,644	12,586	5,531	281	93,184	(10,572)	82,612

    Three months ended September 30, 2016 (Yen in millions)

    Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
    Net sales:	116,915	127,395	26,738	15,871	905	287,824	-	287,824
    External sales
    Intersegment	481	1,327	2,349	1,383	365	5,905	(5,905)	-
    Total	117,396	128,722	29,087	17,254	1,270	293,729	(5,905)	287,824
    Operating expenses	98,177	114,567	23,782	14,486	1,117	252,129	(1,766)	250,363
    Operating profit	19,219	14,155	5,305	2,768	153	41,600	(4,139)	37,461

    Three months ended September 30, 2017 (Yen in millions)

    Small precision motors	Automotive, appliance, commercial and industrial products	Machinery	Electronic and optical components	Others	Total	Eliminations/ Corporate	Consolidated
    Net sales:	116,721	201,679	35,266	18,058	1,075	372,799	-	372,799
    External sales
    Intersegment	658	1,773	3,929	2,008	504	8,872	(8,872)	-
    Total	117,379	203,452	39,195	20,066	1,579	381,671	(8,872)	372,799
    Operating expenses	98,151	182,243	32,938	17,597	1,449	332,378	(3,169)	329,209
    Operating profit	19,228	21,209	6,257	2,469	130	49,293	(5,703)	43,590

    (Notes) 1. Product categories are classified based on similarities in product type, product attributes, and production and sales methods.

21. Major products of each product category:

22. Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.

23. Automotive, appliance, commercial and industrial products: Automotive motors and components, home appliance, commercial and industrial motors and related products.

24. Machinery: Industrial robots, card readers, test systems, press machines and power transmission drives, etc.

25. Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.

26. Others: Services, etc.

27. Sales by Geographic Segment

    (Yen in millions)

    Six months ended September 30, 2016		Six months ended September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    Japan	136,517	24.2%	150,501	21.0%	13,984	10.2%
    U.S.A.	94,145	16.7%	125,415	17.5%	31,270	33.2%
    Singapore	28,103	5.0%	28,044	3.9%	(59)	(0.2)%
    Thailand	48,591	8.6%	60,973	8.5%	12,382	25.5%
    Germany	44,397	7.9%	58,812	8.2%	14,415	32.5%
    China	138,037	24.5%	167,083	23.4%	29,046	21.0%
    Others	74,240	13.1%	125,062	17.5%	50,822	68.5%
    Total	564,030	100.0%	715,890	100.0%	151,860	26.9%

    (Yen in millions)

    Three months ended September 30, 2016		Three months ended September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    Japan	68,067	23.6%	76,714	20.6%	8,647	12.7%
    U.S.A.	45,470	15.8%	63,179	16.9%	17,709	38.9%
    Singapore	14,546	5.0%	15,329	4.1%	783	5.4%
    Thailand	25,512	8.9%	32,127	8.6%	6,615	25.9%
    Germany	21,222	7.4%	31,934	8.6%	10,712	50.5%
    China	74,223	25.8%	87,959	23.6%	13,736	18.5%
    Others	38,784	13.5%	65,557	17.6%	26,773	69.0%
    Total	287,824	100.0%	372,799	100.0%	84,975	29.5%

    (Note) The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.

28. Sales by Region

29. (Yen in millions)

    Six months ended September 30, 2016		Six months ended September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    North America	114,792	20.4%	139,098	19.4%	24,306	21.2%
    Asia	276,266	49.0%	333,869	46.7%	57,603	20.9%
    Europe	72,969	12.9%	121,606	17.0%	48,637	66.7%
    Others	9,269	1.6%	13,806	1.9%	4,537	48.9%
    Overseas total	473,296	83.9%	608,379	85.0%	135,083	28.5%
    Japan	90,734	16.1%	107,511	15.0%	16,777	18.5%
    Total	564,030	100.0%	715,890	100.0%	151,860	26.9%

    (Yen in millions)

    Three months ended September 30, 2016		Three months ended September 30, 2017		Increase or decrease
    Amounts	%	Amounts	%	Amounts	%
    North America	57,074	19.8%	69,976	18.8%	12,902	22.6%
    Asia	144,842	50.3%	177,433	47.6%	32,591	22.5%
    Europe	35,519	12.4%	64,024	17.2%	28,505	80.3%
    Others	4,653	1.6%	7,568	2.0%	2,915	62.6%
    Overseas total	242,088	84.1%	319,001	85.6%	76,913	31.8%
    Japan	45,736	15.9%	53,798	14.4%	8,062	17.6%
    Total	287,824	100.0%	372,799	100.0%	84,975	29.5%

    (Note) The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.

30. Overview of Consolidated Financial Results

    24 October, 2017

31. Summary of Consolidated Financial Performance (Yen in millions)

    	Six months ended September 30, 2016	Six months ended September 30, 2017	Increase or decrease	Three months ended September 30, 2016	Three months ended September 30, 2017	Increase or decrease
    Net Sales	564,030	715,890	26.9%	287,824	372,799	29.5%
    Operating profit	68,985 12.2%	82,612 11.5%	19.8%	37,461 13.0%	43,590 11.7%	16.4%
    Profit before income taxes	66,274 11.8%	76,630 10.7%	15.6%	37,187 12.9%	40,304 10.8%	8.4%
    Profit attributable to owners of the parent	50,094 8.9%	60,074 8.4%	19.9%	28,066 9.7%	31,880 8.6%	13.6%
    Earnings per share attributable to owners of the parent - Basic (Yen)	168.89	202.90	94.63	107.68
    Earnings per share attributable to owners of the parent - Diluted (Yen)	-	-	-	-

32. Summary of Consolidated Financial Position and Cash Flows (Yen in millions)

    September 30, 2016	September 30, 2017	March 31, 2017
    Total assets	1,327,250	1,772,631	1,676,106
    Total equity attributable to owners of the parent	725,421	917,434	846,603
    Ratio of equity attributable to owners of the parent to total asset	54.7%	51.8%	50.5%
    	Six months ended September 30, 2016	Six months ended September 30, 2017	Year ended March 31, 2017
    Net cash provided by operating activities	96,493	74,242	129,853
    Net cash used in investing activities	(34,760)	(51,879)	(211,476)
    Net cash (used in) provided by financing activities	(34,942)	(67,643)	95,848
    Cash and cash equivalents at end of period	298,934	287,172	321,580

33. Dividends (Yen)

    	Interim dividend per share	Year-end dividend per share	Annual dividend per share
    Year ended March 31, 2017 (actual)	40.00	45.00	85.00
    Year ending March 31, 2018 (actual)	45.00	-	-
    Year ending March 31, 2018 (target)	-	50.00	95.00

34. Scope of Consolidation and Application of the Equity Method

35. Number of consolidated subsidiaries	307
    Number of associates accounted for under the equity method	5

    		Change from March 31, 2017	Change from September 30, 2016
    Number of consolidated subsidiaries	(Increase)	13	83
    	(Decrease)	2	4
    Number of associates accounted for under the equity method	(Increase)	-	1
    	(Decrease)	1	1

    (Notes) 1. The amounts of percentage in "(1) Summary of Consolidated Financial Performance" represent percentage of sales.

36. NIDEC finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017.

    Condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

37. NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.