NIDEC CORPORATION TSE: 6594 NYSE: NJ
http:// www.nidec.com/en-Global/
Nidec Corporation
Fiscal 2015 Financial ResultsFiscal Year Ended March 31, 2016
April 26, 2016
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 latest Form 20-F and 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.
2
Consolidated Profit/Loss
EPS, dividends and FX rate | Forecast | |||
Net Sales | 1,028,385 | 1,178,290 | +14.6% | 1,250,000 |
Operating Income | 110,939 | 124,538 | +12.3% | 130,000 |
Operating Income Ratio | 10.8% | 10.6% | - | 10.4% |
Income before Tax | 107,092 | 119,328 | +11.4% | 130,000 |
Net Income | 76,015 | 91,810 | +20.8% | 98,000 |
EPS (Yen) | 271.61 | 309.32 | +13.9% | 330.41 |
Dividends (Yen) | 70.00 | 80.00 | - | 80.00 |
FX Rate (Yen/US$) Average: | 109.93 | 120.14 | +9.3% | 110.00 |
Term end: | 120.17 | 112.68 | -6.2% | (Assumed) |
Millions of Yen, except for FY2014 FY2015 Change FY2016 *
3
Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY2016 is estimated to have an annualized impact of 7.00 billion yen and 1.10 billion yen on sales, respectively, and 1.10 billion yen and 0.30 billion yen on operating income, respectively.
*Numbers are based on U.S. GAAP. Please refer to Note on page 15 for details. This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
Summary of FY2015
Record-high net sales for four consecutive years. Operating income, income before
tax and net income increased for three consecutive years following the structural reform in FY2012.
Operating income ratio on automotive, appliance, commercial and industrial products exceeded 10% in 4Q, driving the company's business portfolio transformation.
Cash and cash equivalents exceeded interest-bearing debt for the first time in six years, resulting in approx. 5.2 billion yen net cash at end-March 2016. CCC* shortened by 7 days to 66 days; working capital saved by 11.2 billion yen compared to the same time of the previous year.
*Cash Conversion Cycle (in days): (Inventory + Account Receivable - Account Payable) / Per day sales amount
We use sales amount as a denominator to calculate Cash Conversion Cycle.
4
*Operating income ratio on
automotive, appliance, commercial and industrial products reached double digits for the first time at 10.4% in 4Q FY2015.
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
0
0
transformation
50
Successful
business portfolio
75
750
100
1,000
Lehman Crisis
50
Thai
Floods
500
100
1,000
Sales (LHS) Operating Income (RHS)
1,500 150
Extending record high
(Operating Income in
Billions of Yen)
Consolidated Annual Sales and Operating Income (FY2006-FY2015)
(Sales in Billions of Yen)
Record-high net sales for four
consecutive years. Operating income, income before tax and net income increased for three consecutive years following the structural reform in FY2012.
Structural Reform
0
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
(Forecast)*
*Numbers are based on U.S. GAAP. Please refer to Note on page 15 for details.
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
5
Sales and Operating Income per Product Group (FY2006-FY2015)
(Sales in Billions of Yen)
Small precision motors (LHS)
Operating income (RHS)
(Operating Income in
Billions of Yen)
1,250
Automotive, appliance, commercial and industrial products (LHS)
Machinery (LHS)
Electronic and optical components (LHS) Others (LHS)
125
500
Automotive, appliance, commercial
and industrial products*
250
25
6
Continuing
aggressive investments that support organic growth
45.2
55.0
52.0
51.4
58.0
62.0
64.7
R&D
Depreciation
Highest-ever CAPEX planned for "Nidec Center for Industrial Science", "Nidec Business School" and others.
81.9
150
Consolidated Cash Flow (FY2006-FY2015)
(Billions of Yen)
Operating CF Investment CF Free CF
147.6
Highest ever operating cash flow
0
-150
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Strengthening
cash flow generation that drives growth strategy
Areas highlighted in dark purple in investment CF indicates expenditure for business acquisitions
7
CAPEX, Depreciation, R&D
CAPEX
(Billions of Yen)
120
110.0
0
FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16
(Forecast)* (Forecast)* (Forecast)*
* Numbers are based on U.S. GAAP. Please refer to Note on page 15 for details.
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
8
30
27.5 30.0 32.5
22.5
50.0
42.5
42.5 45.0
80.0 80.0
70.0
99
148
142
138
187 188
207
Earnings per share (yen) Dividends (yen)
(Yen)
350 330
309
272
-400
Cash and Cash Equivalents, Interest-Bearing Debt (FY2006-FY2015)
Cash and cash equivalents Interest-bearing debt Net cash (debt)
(Billions of Yen)
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
400
0
Back to net cash* for
the first time
in six years allowing for further increase in investments
Cash flow focused management enables investments
for future growth
(Ready for large M&As)
*Cash and cash equivalents
exceeded interesting-bearing debt
9
Dividends and EPS (FY2006-FY2015)
Steady growth
in dividend payouts underpinned by healthy EPS increase
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
(Forecast)*
*Numbers are based on U.S. GAAP. Please refer to Note on page 15 for details.
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
10
12
(Actual)
corporate
motors
loss
-0.2
+0.5
+4.9
11
Structural Reform
4Q FY2015 quarterly
operating income firmly maintained above 30 billion yen, absorbing the impact of softened cash cow business and one-time expense
5
50
Lehman Crisis
10
Thai
Floods
100
15
Japan
Earthquake
150
20
200
Sales (LHS) Operating Income (RHS)
ー装 の 全 FY FY為替の影⼀過精密⼩型モ商業・産機器光学、そ消去⼜は
家電・ 電⼦・
及び
⾞載、
15響性 タ業 置他 社 16
-5
-50
Consolidated Quarterly Sales and Operating Income
(Sales in Billions of Yen)
350
(Operating Income in
Billions of Yen)
35
4Q: 30.5 bil. yen
300 30
250
25
0
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY08FY09 FY10 FY11 FY12 FY13 FY14 FY15
-254
Operating Income Changes (Q3/FY2015-Q4/FY2015)
(Billions of Yen)
+1.1
-2.5
-3.4
-2.0
32.2
30.5
3Q/FY15
(Actual)
Exchange
rate
One-time Small precision
Automotive, Machinery
appliance, commercial and industrial products
Electronic
and optical components and others
Eliminations/ 4Q/FY15
(Nidec estimates based on various sources)
whole expected to
continue to decline due to weak PC demand with server demand remaining firm
84
99
116
135
160
204
100
94
93
271
289
92
92
92
200
91
89
87
105
86
333
15
48
343
17
45
84
300
20
42
90
357
376
23
40
124
400
27
38
123
400
HDD market as a
469
33
37
100
553
32
500 36
73
600
FY2015 (Actual) FY2016 (Forecast)
(Nidec estimates based on various sources)
Expects a moderate 6%
decrease in Nidec motor shipments YoY in contrast to the forecasted 10%
decline in HDD market.
98
95
105
102
98
115
HDD Market Short-Term Trend
(Millions of Units)
HDD Shipments Nidec Motor Shipments
119
110
87
99
96
80
78
87
90
85
Increased market share
will serve as a buffer.
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 13
HDD Market Mid-Term Trend
(Millions of Units)
Server Application
564
32
37
PC External Consumer Electronics
Data Center
(Near Line Drive)
Enterprise
0
CY13
CY14
CY15
CY16
CY17
CY18
CY19
CY20
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 14
FY2016 Forecast *
Millions of Yen, except for
EPS, dividends and FX rate | |||
Net Sales | 600,000 | 650,000 | 1,250,000 |
Operating Income | 63,500 | 66,500 | 130,000 |
Operating Income Ratio | 10.6% | 10.2% | 10.4% |
Income before Tax | 63,500 | 66,500 | 130,000 |
Net Income | 48,000 | 50,000 | 98,000 |
EPS (Yen) | 161.83 | 168.58 | 330.41 |
Dividends (Yen) | 40.00 | 40.00 | 80.00 |
FX Rate (Yen/US$) | 110 | 110 | 110 |
FX Rate (Yen/Euro) | 120 | 120 | 120 |
1H/FY2016 2H/FY2016 Full-Year
*For convenience of reference, all numbers in the above table are projected based on U.S. GAAP.
From FY2016 onward, Nidec's financial statements will be prepared under International Financial Reporting Standards (IFRS). 15
* Numbers are based on U.S. GAAP.
Please refer to Note on page 15 for details.
+13.2
+5.9
+101.0
(Billions of Yen)
+13.7
+2.2
+0.1
motors
commercial and
and optical
(Forecast)
industrial products
components and others
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
Changes FY2015 to FY2016 (Forecast) *
(Billions of Yen)
+26.6
-75.0
1,178.3
1,250.0
FY15
(Actual)
Exchange
rate
Small precision
motors
Automotive, appliance,
commercial and industrial products
Machinery
Electronic,
optical components and others
FY16
(Forecast)
+5.1
-2.5
-13.0
124.5
130.0
FY15
(Actual)
Exchange
rate
Small precision Automotive, appliance, Machinery
Electronic Eliminations/ corporate FY16
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 16
Mid-Term Strategic Goal Vision2020This section includes forward-looking statements. See disclaimer on page 2 of this presentation.
17
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 income ratio: 15%
Target for ROE: 18%
(Assuming shareholders' equity ratio of 60%)
Five regional HQ management
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 18
Continuing Growth Strategy with a Focus on Key Growth Areas
FY2010
Net sales: 676 billion yen
(Sales: Billions of Yen)
FY2015
Net sales: 1.178 trillion yen
FY2020
Net sales: 2 trillion yen (target)
New M&A
500
200.0
to 300.0
Key Growth Areas 164.2
94.2
Key Growth Areas
175.6
Key Growth Areas
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation. 19
Small precision motors Automotive
Appliance, commercial and
industrial products
Other product groups
700.0
to 1 T
448.0
400.0
to 600.0
400.0
to 600.0
348.4
271.3
283.4
69.2
Quarterly Results of Automotive, Appliance, Commercial and Industrial Products over the Past Four Years
Key Growth Areas
150
Sales (Billions of Yen)
Record-high sales in 4Q
Appliance, Commercial and Industrial Products
Automotive
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Key Growth Areas
FY12 FY13 FY14 FY15
Operating Income (Billions of Yen)
Key Growth Areas on a stable growth trajectory
15 Appliance, Commercial and Industrial Products Automotive
Record-high operating income in 4Q
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY12 FY13 FY14 FY15
20
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
FY14 FY15 FY16 FY17 FY18 FY19 FY20
(Forecast) (Target) (Target) (Target) (Target)
Automotive
business expanding at a faster pace than originally expected
60
Organic sales
of over 500 billion yen for FY20 in sight
New M&A (LHS)
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
FY20
(Target)
(Target) (Target)
FY19
Appliance, Commercial and Industrial Products (LHS)
Organic Growth Outlook of Automotive, Appliance, Commercial and Industrial Products
(Sales in Billions of Yen)
1,000
(Operating Income
Ratio, %)
16%
Automotive (LHS) Operating Income (RHS)
500
8%
One trillion Yen
sales expected from organic growth alone in Key Growth Areas
0
0%
FY14 FY15 FY16
(Forecast)
FY17
(Target)
FY18
21
Organic Growth Outlook of Automotive
(Sales in Billions of Yen)
1,000
Operating Income (RHS)
(Operating Income in
Billions of Yen)
120
Other automotive components (LHS)
ECU & Sensor (LHS) Motor (LHS)
500
0
0
22
Organic Growth Outlook of Appliance, Commercial and Industrial
(Sales in Billions of Yen) (Operating Income in
Appliance (LHS) Commercial (LHS)
600 Industrial (LHS) Operating Income (RHS)
Billions of Yen)
120
Organic sales of over 400 billion yen
400 for FY20
in sight
ACI* growing
80 steadily in line with original expectations
200 40
0 0
FY14 FY15 FY16 FY17 FY18 FY19 FY20
(Forecast) (Target) (Target) (Target) (Target)
*ACI: Appliance, commercial and industrial
23
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
New Automotive Strategy: Expanding into Powertrain-related Products
Major shift from hydraulic to electric systems is under way Aiming for a full scale entry to the powertrain-related market
Traction motor (Rear)
Plug-in rear unit application
SR motor using SiC* based inverter
Transfer case
Electric actuator
Actuator market size
Differential
Electric actuator
Transmission
Electric actuator
Traction motor (Front)
Compact, light-weight and low power consumption motor materialized using SiC* based inverter
approx. 1.2 trillion yen
approx. 0.5 trillion yen
(Nidec estimates based on various sources)
EV main motor application
*SiC: silicon carbide
Collaboration
with customers in progress
24
New ACI Strategy: Low Speed Electric Vehicle in China
Orders received for major components of LSEV* traction system
(Thousands of Units)
Forecast of 4-wheeled LSEV* units in China LSEV* means:
1,000
500
0
(Nidec estimates based on various sources)
CY14 CY15 CY16 CY17 CY18
Electric vehicles for short distance (passenger/freight)
Typical specifications:
Less than 80km/h
Travel distance less than 100km
Weight less than 1,500kg
Focusing on 4-wheeled vehicles in China and
wheeled vehicles in India and South East Asia
Motor Transmission Controller Charger
*LSEV : Low Speed Electric Vehicle 25
New ACI Strategy: Focusing on Large Projects
Orders received from a major German utility company for energy management system
Energy storage system for German utility STEAG
(EPC business*)
Motor
Major products and business areas for Industrial Solutions businesses
Oil & Gas Irrigation &
Six units of 15
megawatts systems installed in 2 major states of Germany
Induction motor:
Automation,
Drive systems & other power electronics products
Energy
Agriculture
Synchronous motor:
Mining Water &
Sewerage
State of Nordrhein-Westfalen
Germany
Inverter & Drive
State of Saarland
Orders totaling EUR 70 million
Steel & Metal
General Industrial
Construction
& Agriculture
Ships
*EPC business: Business conducted by a main contractor who will coordinate and integrate Engineering, Procurement & Construction
26
Low voltage drive:
New ACI Strategy: Case Study of Solution Project
Nidec's Smart Micro Grid Management System
Mission Solution
Provide stable energy to a remote village in the Andes Mountains
Supply renewable energy with energy storage system to stabilize its output
Illustration of Smart Micro Grid Management System in Ollague, Chile
Power management system
Power generation system
Image of energy storage system
Wind power generation
Energy storage
system
Solar power generation
Whole system of energy storage system is set in a container, making it easy to transport and install
It is essential to stabilize power supply by using power management system in order to make the most of renewable energy.
Image of management system
Accumulation of our technical capabilities represented by this example and past achievements are helping to win a number of
new projects. 27
New Strategy for FDB Motors: Usage in Virtual Reality
Nidec's FDB motor is used inside HTC's Virtual Reality System
Emitting the accurate position detection laser Nidec's FDB motor inLighthouses
Headse
Lighthouse
Controller
Large opportunities in LIDAR* related business
*LIDAR: Laser Imaging Detection & Ranging
LIDAR system for autonomous cars, robots and drones
VR for gaming devices
Sensors for home appliance market
Today Future 28
Strategy: "Switch Everything to Brushless DC" Approach 1 Approach to Stepping Motor Market
Aiming to expand TAM by integrating next-generation control technology with brushless DC motors
Future global small precision motor market estimate> (% based on units)
BLDC (IT)
Fan and blower
Others Current TAM
Capturing Stepping Motor Market (9% of TAM)
OA equipment
ATM
AC motor 11%
13%
6%
17%
(covered in blue)
Stepping motors are used for feeding paper in printers or notes in ATM machines where accurate
Year 2020
Approx. 12 B units 9%
TAM to expand
(covered in red)
positioning is required. Replacing these by brushless DC motors with next-generation control technology to save energy and space.
Brushed DC motor
44%
Stepping motor
-Saves energy
-Smaller
-Lighter
-Low noise, etc.
Stepping motor Nidec's brushless DC motor
(Nidec estimates based on various sources)
with next generation control technology 29
Strategy: "Switch Everything to Brushless DC" Approach 2 Approach to Brushed DC Motor Market
Aiming to expand TAM by introducing brushless DC motors with microcomputer-controlled intelligent drive technology
Future global small precision motor market estimate>
(% based on units)
BLDC (IT)
Fan and blower
Others Current TAM
Capturing Brushed DC Motor Market (44% of TAM)
Automotive
OA equipment
Home Appliance
AC motor 11%
13%
6%
17%
(covered in blue)
Robots
Introduction of intelligent motors
Year 2020
Approx. 12 B units 9%
44%
TAM to expand
(covered in red) Stepping motor
Sensing of peripheral information by the motor itself
Gather and analyze information through IoT technology
Brushed DC motor
(Nidec estimates based on various sources)
Introducing intelligent brushless DC motors with compact high- performance microcomputers
Create new value-added
30
Robotic Products: Nidec's Technologies Play Key Roles in Many Areas
Social innovation engineered by robotics
Smart AGV
Reducers for robots
Future warehouse management
Warehouse
management Production lines
New logistic Everyday life solutions
Multiple joints robot arms
Future logistics
Drone
Robotic Cleaner
Various robotic appliances
31
IoT: Solar Pumps for Irrigation in India (IoT System)
Aiming to support emerging/developing countries' agriculture using IoT technology
Thermo sensor
Pyrheliometer
Cloud server
Indian telecommunication company
Operational data
Browser
Water gauge
Flow meter
3G/2.5G
Controller
DriverConverter
Operational data / Control
WiFi
Controlling apps on smartphone
Solar pump system
Motor
Pump
Battery
Solar panel
Test of pumping water Placement of solar panels
32
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 |
* Notes:
Pursuant to ASC 805 "Business Combinations," consolidated financial statements for the year ended March 31, 2015 and the three months ended June 30, 2015 have been retrospectively adjusted to reflect our valuation of the fair values of the acquired assets and the liabilities assumed upon the acquisitions of Gerate- and Pumpenbau GmbH Dr. Eugen Schmidt (currently Nidec GPM GmbH) in the fiscal year ended March 31, 2015. During the three months ended September 30, 2015, we completed our valuation of such assets and liabilities of Nidec GPM GmbH.
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.
33
Appendix
Performance Trends & Product Group Overview34
FY15
FY14
22.5
30.0
-95.3
40.0 (Target)
40.0
Operating Activities Investment Activities Free Cash Flow
147.6
91.9
52.3
(Target)
330
18.0
19.1
17.6
10.8%
10.4%
10.3%
10.8% 10.9% 11.0% 10.8%
10.4%
20.9
21.3
23.3 25.0
23.8 23.8
25.8
24.5
27.1
26.9
25.0
31.0 31.0
29.8
30.5
31.1
30.2 30.7
28.8
32.2
285.0 282.9
Operating Income Ratio (%)
302.3
35
Other Small Motors
Optical disk drive motors, OA equipment motors,
polygon scanners motors, MPU cooling fans, game machine fans, PC/communications, equipment fans, home appliance fans, automobile fans, vibration motors, brushed motors, stepping motors, actuator units
Auto
23.0% (19.1%)
47.1%
(44.7%)
Automotive,
Appliance, Commercial and Industrial Products
20.4%
(18.9%)
1,178.3 B
Appliance
Commercial Industrial
24.1%
(25.6%)
Small Precision Motors
5.4%
(6.3%)
(0.6%) Services,musical products
Parenthetic percentages represent FY2014 mix
0.4%
Sales by Product Group (FY2015)
Electronic & Optical
Components
Camera shutters, switches,
trimmer potentiometers, processing, precision plastic mold products
Others
Machinery
Industrial robots, circuit board testers, high-speed pressing machines, chip mounters, measuring equipment, power transmission equipment, factory automation system, card readers
9.0%
(9.6%)
HDD Motors
17.6%
(19.8%)
38.0%
(38.7%)
Financial Highlights
(Billions of Yen)
(Billions of Yen)
Sales
Operating Income
308.0
Consolidated Income Before Tax Consolidated Net Income
240.2
249.3
264.3
274.6
32.3
1Q/FY14 2Q 3Q 4Q 1Q/FY15 2Q 3Q 4Q
1Q/FY14 2Q
3Q
4Q 1Q/FY15 2Q
3Q 4Q
Year-end
(Yen/share)
Interim Consolidated EPS (Full-year)
309
272
(Billions of Yen)
207
(Target)
10.6
40.0
40.0
40.0
27.5
-81.2
FY13
FY14
FY15
FY16 *Please refer to Notes on page 33.36
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
Product Group Overview
(Billions of Yen) (Billions of Yen)
Sales Operating Income
19.1
FY14 FY15
18.1
16.7
15.7
15.6
17.7
Sales Operating Income
FY14 FY15
137.3 138.9 134.8143.7
126.7
15.1 110.2 108.1114.9
13.2
89.9100.4
104.8
102.9
104.1
118.5
129.6
95.9
8.6 8.6
9.3
10.0
10.8
10.6
11.3
15.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
(Billions of Yen) (Billions of Yen)
Sales Operating Income
Sales Operating Income
FY14 FY15
FY14 FY15
22.322.7
26.1
4.9
27.7
4.7
26.7
26.9
25.6
27.3
16.2
16.3
16.7
15.8
15.8
16.7
16.7
14.8
3.8
2.8
4.1 4.1
3.8
3.8
1.1
1.3
1.3
1.4
1.6
2.0
1.8
1.2
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 37
2.5
(Operating Income
15
Ratio, %)
13.7%
13.9%
Net Sales
2T
10.4%
10.6%
Net Sales 1.18T
1.03T
Net Sales
709.3B Net Sales
875.1B
676.0BNet Sales
Net Sales
571.6B
682.3B
5
FY20
(Target)
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
*Please refer to Notes on page 33.
Vision 2020: Targets for Net Sales and Operating Income Ratio
Aiming for both sales growth (organic + M&A) and profitability enhancement
(Net Sales in
Trillions of Yen)
15%
2
10.7%
10.8%
New M&A approx.500 B
10
1.5
9.7%
Net Sales Net Sales
1.25T
Net Sales
1
0.5
2.5%
0
0
FY09 FY10 FY11 FY12 FY13
Structural Reform
FY14 FY15 FY16
(Forecast)
38
Vision 2020: Pursuing Both Strong Growth with Profit and Financial Soundness
Targeting operating income ratio of 15% and ROE of 18% while sustaining and improving financial soundness
Shareholders' Equity (LHS)
ROE (RHS)
(Billions of Yen) (%)
1,500
Shareholders' Equity Ratio (RHS)
60%
Operating Income Ratio (RHS)
65%
47.5%
1,200
54.9%
55.2%
60%
55%
50%
The three elements for ROE improvement
Net profit on sales
Total asset turnover
Financial leverage
900
Shareholders' Equity Ratio
49.1%
46.2%
42.3%
41.3%
745.0764.2
44.4%
45%
600
ROE
300
Operating Income Ratio
0
9.2%
8.9%
297.1
16.3%
15.0%
13.9% 13.7%
340.3355.3
11.2%
10.7%
370.2
415.7
2.5%
2.0%
518.0
12.1% 12.0%
10.8%
9.7%
12.2%
18%
10.6%
15%
20%
15%
10%
5%
0%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY20
Lehman
Crisis
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.
Structural Reform
(Target)
39
Japan Credit Rating Agency, Ltd. (JCR) upgraded our long-term issuer rating by one notch from A+ to AA- as of Oct. 1, 2014.
Nidec Corporation issued this content on 26 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 April 2016 01:25:25 UTC
Original Document: http://www.nidec.com/en-Global/corporate/news/2016/news0426-01/
