NIDEC CORPORATION TSE: 6594 OTC US: NJDCY
http://www.nidec.com/en-Global/
Nidec Corporation
First Quarter Fiscal 2017 ResultsThree Months Ended June 30, 2017
July 26, 2017 Note Regarding Forward-looking StatementsThese presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the 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.
The first slide features a pool pump and a high-speed pump manufactured by LGB Elettropompe S.r.l. acquired in July 2017.
2
Consolidated Profit/Loss
Millions of Yen, except for percentages, EPS, and FX rates
Q1/FY2016 Q1/FY2017 Change
FY2017
Forecast
Net sales 276,206 343,091 +24.2% 1,375,000
Operating profit 31,524 39,022 +23.8% 165,000
Operating profit ratio 11.4% 11.4% - 12.0%
Profit before
income taxes 29,087 36,326 +24.9% 161,000
Profit attributable to
owners of the parent 22,028 28,194 +28.0% 127,000
EPS (Yen) 74.27 95.22 +28.2% 428.94
FX rate (Yen/US$)
Average: | 108.14 | 111.09 | +2.7% |
Term end: | 102.91 | 112.00 | +8.8% |
Assumed for Q2 onward: Yen/US$: 105
Yen/Euro: 110
Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY2017 is estimated to have an annualized impact of 8.8 billion yen and 1.70 billion yen on net sales, respectively, and 1.10 billion yen and 0.4 billion yen on operating profit, respectively.
This slide includes forward-looking statements. See Disclaimer on Page 2. 3
Summary of Q1 FY2017
Quarterly net sales and operating profit increased 24% Y/Y to record highs.
Quarterly operating profit ratios for Small Precision Motors, Machinery, Electronic & Optical Components and Other Products reached the 15% target under Vision2020.
Profit attributable to owners of the parent improved by a significant 28% Y/Y.
Upward revision to FY2017 financial forecasts.
4
+3.4
+0.9
Products +1.4
5
This slide includes forward-looking statements. See Disclaimer on Page 2.
90.00
105
110
(Assumed for Q2 onward)
45.00
105
110
(Assumed for Q2 onward)
421.44
90.00
105
110
195.55
45.00
105
110
127,000
428.94
60,000
202.65
125,000
58,000
12.0%
12.3%
165,000
80,000
1,375,000
650,000
1,350,000
160,000
11.9%
625,000
75,000
12.0%
Revision to FY2017 Forecast
(April 25, 2017)>
Millions of Yen, except for
percentages, EPS, dividends and FX rates
Net sales Operating profit
Operating Profit Ratio
1H/FY2017
Full-Year
1H/FY2017
Full-Year
Profit before
income taxes
Profit attributable to owners of the parent
EPS (Yen)
Dividends (Yen)
FX Rate (Yen/US$) FX Rate (Yen/€)
74,000
158,000
77,000
161,000
Year-on-Year Changes (Three Months Ended June 30, 2017)
(Billions of Yen)
+48.8
+5.3
+1.6
+4.5
+6.7
343.1
276.2
Q1/FY16
(Billions of Yen)
ExchangeSmall Precision
rateMotors
Automotive,
Appliance, Commercial and Industrial
Machinery
Electronic
and Optical Components and Others
Q1/FY17
+3.0
-1.7
+0.5
39.0
31.5
Q1/FY16
Exchange Small Precision
rate Motors
Automotive,
Appliance, Commercial and Industrial Products
Machinery
Electronic
and Optical Components and Others
Eliminations/ Q1/FY17
corporate
6
+1.9
+0.3
+1.3
Q1/FY17
Electronic
and Optical Components and Others
+0.9
+1.0
Machinery
Automotive,
Appliance, Commercial and Industrial Products
(Billions of Yen)
Quarter-on-Quarter Changes (Three Months Ended June 30, 2017)
(Billions of Yen)
+19.7
+0.3
-3.0
-4.5
-0.6
331.1
343.1
Q4/FY16
ExchangeSmall Precision
rateMotors
-0.6
39.0
34.2
Q4/FY16
Exchange Small Precision
rate Motors
Automotive,
Appliance, Commercial and Industrial Products
Machinery
Electronic
and Optical Components and Others
Eliminations/ Q1/FY17
corporate
7
Mid-Term Strategic Goal Vision2020This section includes forward-looking statements. See Disclaimer on page 2 of this presentation.
8
Vision2020: Mid-Term Strategic Goal
Continuous pursuit of profit & strong growth
Target for consolidated net sales: 2 trillion yen (including sales attributable to new M&A
of approx. 500 billion yen)
Sales target for Automotive: 700 billion to 1 trillion yen
Target for consolidated operating profit ratio: 15%
Target for ROE: 18%
(assuming shareholders' equity ratio of 60%)
Five regional HQ management units
Motors
Automotive
Appliance, Commercial and
Industrial Products
Other Product Groups
New M&A 600.0 600.0 600.0
growth> growth>growth>
Key Growth Areas
164.2
190.1
94.2 Key Growth Areas
200.0
(Target)69.2
This slide includes forward-looking statements. See Disclaimer on Page 2. 9
Three 600 Billion Yen Businesses Are Key to Achieving 2 Trillion Yen Net Sales
FY2010
Net sales: 676 billion yen
(Sales: Billions of Yen)
Small Precision
FY2016
Net sales: 1.199 trillion yen
FY2020
Net sales: 2 trillion yen (target)
1 T
437.1
(Target)
(Target) (Target)
348.4
261.1
310.9
Key Growth Areas
This slide includes forward-looking statements. See Disclaimer on Page 2.
10
Small Precision Motors: HDD Market Short-Term Trend
HDD Shipments Nidec Motor Shipments (Millions of Units)
Previous FY2017 Forecast (April 26, 2017)
Revised FY2017 Forecast (July 26, 2017)
Revised forecast for FY2017
108
100
102 100
96 102 9998
HDD shipments
(Millions of Units)
84 91 85 84
Q1 Q2 Q3 Q4
FY2017 Annual forecast | Previous forecast |
HDD shipments | 410 |
Nidec motor shipments | 344 |
Revised forecast |
395 |
331 |
82 82 8483
Q1 Q2 Q3 Q4
(Forecast) (Forecast) (Forecast) (Forecast) (Actual) (Forecast) (Forecast) (Forecast)
1,000
500
0
Sales (LHS)
2,500
US dollar-denominated sales (million dollars)
1,855
1,911
1,851 1,857
1,731
1,763
1,500 1,654
Operating profit ratio (RHS)
30%
Structural reform
underway against a backdrop of
declining demand
Nidec estimates based on various sources. This slide includes forward-looking statements. See Disclaimer on Page 2.11
Small Precision Motors: Improvement in Profitability of HDD Motors
Cost reduction
Low cost automation
Production process optimization
In-house production of base plates
Overseas transfer of R&D activities
Direct labor cost halved, productivity doubled
Aiming for operating
profit ratio of 30% or more
1,991
2,041
2,080
Yen-denominated sales (hundred million yen)
2,000
20%
10%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
This slide includes forward-looking statements. See Disclaimer on Page 2.
12
Subsidiaries: Aiming for Both Sales Increase and Profitability Improvement
Sales of two subsidiaries expected to reach 200 bil. yen, three to 100 bil. yen in FY2020
Net sales (LHS)
Operating profit ratio (RHS)
Sankyo Techno Motor Tosok Shimpo Elesys
250 | 200.0 bil. yen | 15% | 250 | 200.0 bil. yen | 15% | 250 | 15% | 250 | 15% | 250 | 15% |
200 | 14% | 200 | 14% | 200 | 14% | 200 | 14% | 200 | 14% | ||
150 | 13% | 150 | 13% | 150 | 13% | 150 | 13% | 150 | 13% | ||
100.0 bil. yen | 100.0 bil. yen | 100.0 bil.yen | |||||||||
100 | 12% | 100 | 12% | 100 | 12% | 100 | 12% | 100 | 12% | ||
50 | 11% | 50 | 11% | 50 | 11% | 50 | 11% | 50 | 11% | ||
0 | 10% | 0 | 10% | 0 | 10% | 0 | 10% | 0 | 10% |
FY16 FY20
FY16 FY20
FY16 FY20
FY16 FY20
FY16 FY20
(Target) (Target) (Target) (Target) (Target)
This slide includes forward-looking statements. See Disclaimer on Page 2. 13
Subsidiaries: Successful Examples of Business Portfolio Transformation (Nidec Sankyo)
Continuous Three New Strategy (new products, new markets and new customers) quickening the pace of sales growth
(Sales in
Billions of Yen)
Sankyo's mid-term net sales target
200
New businesses
Existing businesses
Three-fold thematic market approaches
Automation
Environment
Sensing
150
100
・Wafer handling
robot
・Collaborative robot
・Dispenser (Fintech)
・Energy- and water-
saving
・Energy-saving,
high-efficiency circulation
・Regulatory compliance
・Autonomous
driving
・Inspection robot
・Drone
50
0
Competitiveness enhancement for existing products with
focus on ODD* motors, OA** equipment motors, card readers, LCD*** panel handling robots
FY16 FY17 FY18 FY19 FY20
(Forecast)
(Target)(Target) (Target) *ODD: Optical Disk Drive **OA: Office Automation ***LCD: Liquid Crystal Display
This slide includes forward-looking statements. See Disclaimer on Page 2.
14
("Smarctory" is a brand that Nidec launched to promote production innovation through IoT solutions.)
Smart manufacturing gaining pace at Nidec factories, with future commercialization in view
Smart AGV Industrial robot module (i611)
Vision system
Modular automation line (Modularization of assembly and inspection)
15
Product Lineups for Robotics (e.g., service robot, drone)
Nidec products finding ways into just about every aspect of robotics
Drive motor
and camera
Wide angle cam
Vision sensor
Coreless motor
Wheel-in motor
Wide angle optical image stabilizer camera module (TiltAC)
module
era
Reducer and motor for joint modules and drones
Stepping motor
Brushed motor
Reducer Ultra-flat geared actuator
Servo module Drone motor
Tactile device and electronic component
Brushless motor
Pressure
Tactile device Encoder sensor Potentiometer Slip ring
Switch
16
Acquisition of Italy-Based LGB Elettropompe S.r.l. *
*Nidec acquired a 100% ownership interest in LGB Elettropompe S.r.l. on July 3rd, 2017.
M&A that strengthens Nidec's position in the European appliance, commercial and industrial market
Company
name LGB Elettropompe S.r.l.
Headquarters Padua (Italy) Foundation 1991
13%
10%
77%
Pump for dishwasher Motor for oven Others
(pool pump, etc.)
Principal business
Designs, manufactures and sells pumps for
commercial dishwashers and motors for convection ovens
Sales €9.8 million (fiscal year ended December 31,2016)
Synergy effects
■New customer base to increase Nidec's presence in the European commercial equipment market
■Procurement efficiency and cost reduction capability
High-speed pump
High-pressure pump
Motor for oven
17
New Large-Scale Manufacturing Base Planned in Hanoi, Vietnam
Hoa Lac
Hi-Tech Park
Hanoi City
New investment in northern Hanoi
Designing facility layouts for production launch scheduled for summer 2018.
●Strengthening production of motors for appliances
including air conditioners (Nidec Techno Motor)
●Preparing for growing demand for robot parts
(Nidec-Shimpo)
Gearing up for growing demand for high- quality energy efficient motors and components used for high- performance equipment including robots
Socialist Republic of Vietnam
Saigon Hi- Tech Park
Ho Chi Minh City
Nidec
Nidec Sankyo Nidec Seimitsu Nidec Servo Nidec Copal Nidec Tosok
■80 bil. yen has been invested since 1997
■Approx. 20,000 employees in total
■100 bil. yen annual sales
A stepping stone toward achieving consolidated net sales of two trillion yen in FY2020
18
Work Style Reform in Steady Progress in Japan
Adopted three personnel systems (e.g., telecommuting, staggered working hours and hourly-paid time off) and established Diversity Promotion Office
Work Style Reform Committee
■Pursuit of labor efficiency
■Effective use of limited time
Diversity Promotion Office
*
Seven sectional committees Percentage of women in managerial positions targeted at 8% in FY2020
English proficiency improvement
Management skills improvement
HR development & training
Institutionalization
IT infrastructure
Work-life management- diverse work environment that
ensures equal career development opportunities
Institutional improvement,
Systematization
Work efficiency improvement
●Telecommuting work)
●Staggered working (quality work)
●Hourly-paid life)
employee enlightenment and revamp of corporate culture
*Applied to Nidec Corporation
This slide includes forward-looking statements. See Disclaimer on Page 2. 19
Nidec IR Contacts
Japan Tel: +81-75-935-6140 E-mail: ir@nidec.com
U.K. Tel: +44-870-351-7388 E-mail: iwai.yuji@nidec.com
U.S. Tel: +1-212-703-7988 E-mail: nagase.kiyoshi@nidec.com
Nidec logo is a registered trademark or a trademark of Nidec Corporation in Japan, the United States and/or certain other countries.
"All for dreams" logo is a registered trademark of Nidec Corporation in Japan, and a trademark in the United States and/or certain other countries.
20
Appendix
Performance Trends & Product Group Overview21
Sales by Product Group (Apr-Jun FY2017)
Electronic & Optical
Others
0.3%
Parenthetic percentages represent FY2016 mix
Components
(0.3%) Services, music box products
Camera shutters, switches,
trimmer potentiometers, processing, precision plastic mold products
Machinery
Industrial robots, circuit board testers, high-speed pressing machines, chip
9.5%
(9.8%)
Appliance
4.9%
(5.5%)
HDD Motors
13.0%
(15.5%)
17.2%
(18.8%)
Small Precision Motors
30.2%
(34.3%)
Other Small Motors Optical disk drive motors,
mounters, measuring equipment,
power transmission equipment, factory automation system, card readers
Automotive,
Commercial
Industrial
35.0%
(26.9%)
343.1B
Auto
20.0%
(23.2%)
OA equipment motors,
polygon scanners motors, MPU cooling fans, game machine fans, PC/communications equipment fans, home appliance fans,
Appliance, Commercial and Industrial Products
55.1%
(50.1%)
automobile fans, vibration
motors,
brushed motors, stepping motors, actuator units
22
2.1
2.1
26.7
32.7
27.1
16.3
15.9
15.2
32.6
16.9
Operating profit
Sales
Operating profit
Q3
(Billions of Yen)
14.2
14.2
188.9
Operating profit
171.4
135.1
127.4
138.3
103.8
106.2
94.8
116.9 119.2
23
This slide includes forward-looking statements. See Disclaimer on Page 2.
Q1/FY17
Q1/FY16
FY17
FY16
40.0
40.0
45.0
45.0
37.2
11.4%
10.3%
12.2%
22.0
11.4%
28.2
30.1
28.1
34.2
31.5
31.5
29.1
39.0
37.2
36.3
34.5
287.8
37.5
13.0%
343.1
331.1
304.2
Operating profit ratio (%)
Operating profit
Financial Highlights
(Billions of Yen)
Net sales
and Profit Attributable to Owners of the Parent>
(Billions of Yen)
Profit before income taxes Profit attributable to owners of the parent
41.5
37.2
276.2
Q1/FY16
Q2
Q3
Q4
Q1/FY17
Q1/FY16
Q2
Q3
Q4
Q1/FY17
(Yen/share)
(Billions of Yen)
Year-end Interim Consolidated EPS Operating activities Investment activities Free cash flow
44.2
429 (Forecast)
25.3
303
377
(Forecast)
18.1
40.0
45.0
FY15
(Forecast)
-19.1
-18.9
Product Group Overview
(Billions of Yen)
(Billions of Yen)
Sales Operating profit
Sales
19.2
19.2
15.8
16.9
13.7
13.8
15.9
17.4
Q1/FY16 Q2
Q4 Q1/FY17
Q1/FY16 Q2
Q3
Q4 Q1/FY17
(Billions of Yen)
Sales
16.8
35.7
4.9
5.3
5.6
6.0
6.3
2.8
2.9
3.1
Q1/FY16 Q2
Q3
Q4 Q1/FY17
Q1/FY16 Q2
Q3
Q4 Q1/FY17
24
Consolidated Quarterly Net Sales and Operating Profit
(Net Sales in Billions of Yen)
(Operating Profit in
Billions of Yen)
350
35
300
30
250
25
200
20
150
Japan
earthquake
15
100
Thai
floods
10
50 Lehman crisis
Structural reform
5
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
0
-25.4
US GAAP
IFRS
25
-50
-5
400 Net Sales (LHS) Operating profit (RHS)40
Vision 2020: Pursuing Both Strong Growth with Profit and Financial Soundness
Targeting operating profit ratio of 15% and ROE of 18% while sustaining and improving financial soundness
(Billions of Yen)
1,500
49.1%
1,200
42.3%
900
Shareholders' equity ratio
Shareholders' equity (LHS) Shareholders' equity ratio (RHS)
ROE (RHS)
Operating profit ratio (RHS)
60%
54.9%
55.4%
50.5%
847.3
745.0763.0
(%)
65%
60%
55%
50%
45%
The three elements for ROE improvement
Net profit on sales
Total asset turnover
41.3%
Financial leverage
600
300
Operating profit ratio
0
15.0%
16.3%
ROE
9.2%
13.9%13.7%
340.3355.3
8.9%
297.1
11.2%
10.7%
370.2
415.7
2.5%
518.0
12.1% 12.0% 11.9%
9.7% 10.8% 10.0%
2.0%
13.9%
11.7%
47.5%
46.2%
44.4%
18%
20%
15%
15%
10%
5%
0%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20
(Target)
US GAAP IFRS
This slide includes forward-looking statements. See Disclaimer on Page 2. 26
Nidec Corporation published this content on 26 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 July 2017 08:10:04 UTC.
Original documenthttp://www.nidec.com/en-Global/corporate/news/2017/news0726-01/
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