Nidec Corporation. First-half Results for the Fiscal Year 2006 < U.S. GAAP > October 30, 2006

Transcription

1 Nidec Corporation First-half Results for the Fiscal Year 26 < U.S. GAAP > October 3, 26 This presentation material and our statements made during the Meeting regarding the Nidec Groups financial results contain forward-looking statements including expectations, judgement, plans, and strategies. The forward-looking statements are based on management s assumptions and belief in in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to to differ materially from those discussed in in the forward-looking statements. Such factors include, but are not limited to: fluctuation of currency exchange rates, overall supply and customer demand in in the motor industry, product development and production capabilities, performance of affiliated companies, and other risks and uncertainties. Nidec undertakes no obligation to to update forward-looking statements to to reflect events or circumstances that occur after the date Summary of 1H/FY6 υ Record Sales, Operating Income, Income before Tax and Net Income υ Sales Up Y/Y in All Business Segments υ HDD Motors Up 21-22% Y/Y both in Sales and Shipment υ Interim Dividends Up 6% Y/Y to 2 Yen per Share 2 1

2 Others Pivot assemblies, Auto parts, Logistics, Services Etc., Musical products Electronic & Optical Components Camera shutters, Camera lends units, Encoders, Switches, Trimmer potentiometers Motor-driven actuator units, Optical pickup units, Processing, Precision plastic mold products Machinery Die bonders, Circuit board testers, Highspeed pressing machines, Chip mounters, Measuring machines, Power transmission equipment, Factory automation system Card Readers, Industrial Robots Sales by Product 22.9% (24.7%) 14.6% (13.2%) Motors 58.3% (57.9%) 4.3% 5.9% (5.9%) HDD Motors 299.8B yen 31.% (29.8%) 12.3% 6.4% 1.2% 7.4% Parenthetic percentage figures represent 1H/FY25 mix. Small Precision Motors Other DC Motors Optical disk drives High-Capacity FDD Polygon scanners Other brushless DC motors Fan Motors Game machine consoles MPU cooling fans PC/communication devices Home appliances Automobiles Other Small Motors Vibration motors Brush motors Stepping motors Mid-size Motors Motors for automobiles, home electronic appliances and industrial equipment 3 Profit/Loss (Yen in millions) Net Sales Operating Income OP Margin Income before Tax Net Income EPS FX (Yen/US$) Ave. Average--- Term-end--- 1H/FY5 256,174 25,78 9.8% 3,187 2, H/FY6 299,837 32,46 1.7% 32,661 2, Y/Y Impact of FX Rate Change: FX gain decreased by Change +17.% +27.8% +8.2% +1.8% +.6% +5.4% +4.2% 3.8 billion Yen FY6 Forecast 58, 65, 11.2% 65, 4,

3 Consolidated Net Sales 6 5 Full-year st-half FY2 FY3 FY4 FY5 FY6 5 Consolidated Operating Income Full-year 1st-half FY2 FY3 FY4 FY5 FY6 6 3

4 Consolidated Income Before Tax Full-year 1st-half FY2 FY3 FY4 FY5 FY6 7 Consolidated Net Income 5 Full-year 1st-half FY2 FY3 FY4 FY5 FY6 8 4

5 Sales Business Segment Results---1 <Small Precision Motors, Mid-size Motors> Small Precision Motors Other small motors (left) Fan motors (left) Other DC Motors (left) 25 HDD Motors (left) Operating income (right) H/5 1H/ Mid-size Motors Net sales (left) Operating income (right) H/5 1H/ Business Segment Results---2 <Machinery, Electronic & Optical Components, Others> Machinery Electronic/Optical Components Others 4.4 Net sales (left) Operating income (right) H/5 1H/ Net sales (left) Operating income (right) H/5 1H/ Net sales (left) Operating income (right) H/5 1H/

6 Consolidated Quarterly Results Net sales (left) Operating income (right) Q/5 2Q/5 3Q/5 4Q/5 1Q/6 2Q/6 11 Consolidated Cash Flow Operating Activities Investment Activities Free Cash Flow (Operating CF + Investment CF) H/4 2H/4 1H/5 2H/5 1H/6 12 6

7 Capex, Depreciation and R&D Capex Depreciation R&D FY5 FY6 FY5 FY6 FY5 FY6 Full-year 1st-half 13 FY26 Forecast (Yen in millions) 1H Forecast 1H Results Full-year Forecast Net Sales 28, 299,837 58, Operating Income 3, 32,46 65, Income before Tax 3, 32,661 65, Net Income 18,5 2,776 4, EPS FX (Yen/US$) Ave

8 Dividends and EPS (Yen/share) 4 Year-end (left) Mid-term (left) Full-year EPS (right) 4. (Yen) FY2 FY3 FY4 FY5 FY6 *Dividends per share for 1H/FY5 and before have been restated to retroactively reflect the effect of the two-for-one stock split effective November Consolidated Subsidiaries -Results and Forecasts- (Yen in millions) 1H/5 Results Net Sales 1H/6 Results Full-year Forecasts 1H/5 Results Operating Income 1H/6 Results Full-year Forecasts 1H/5 Results Net income 1H/6 Results Full-year Forecasts Nidec Sankyo 59,515 58,43 125, 5,913 6,61 13, 6,188 5,93 1, Nidec Copal 29,81 4,113 75, 2,235 2,679 5,6 1,31 1,823 3,3 Nidec Tosok 13,14 11,753 24,5 84 1,36 2, ,5 Nidec Copal Electronics 11,611 12,23 24,5 2,8 2,24 4,3 1,434 1,32 2,8 Nidec-Read 2,952 4,277 7, , Total 116, , ,5 11,441 12,585 26,7 9,368 1,213 18,4 *All numbers in the above table have been prepared under the generally accepted accounting standard in Japan 16 8

9 Business Segment Information Small Precision Motors HDD Motors Other DC Motors Fan Motors Mid-size Motors Machinery Electronic & Optical Components Others HDD Motors: Results ν Record Sales and Shipments Strong sub-2.5 demand Up 21-22% Y/Y both in sales and shipment (1H/4=1) H/4 2H/4 1H/5 2H/5 1H/6 Sales (left) Shipment index (right) 18 9

10 (Units in millions) HDD Motors:Strategy-1 HDD Market Up 29% Up 24% CY5 CY6 CY7 (Forecast) (Forecast) Enterprise 3.5" 2.5" Sub-1.8" (Source: TSR, October 25, 26) Consolidation of customers Sub-2.5 market expansion PMR in broader use Active investment for Production capacity increase In-house production increase Automatization Market Share Growth Vertical Integration Quality Enhancement 19 HDD Motors:Strategy-2 ν Large-scale Capacity Building 45 million units/month Rangsit factory, Thailand Production Capacity by Countries China Singapore 45M per Month Thailand Philippines New Factory ν New R&D Facility New Research Lab in Nagano Completion planned for Nov. 27 The world s largest, best-equipped HDD motor factory ramped up in Oct. 26 PMR HDD Motor Volume production at Rangsit factory Sintered-alloy-metal FDB Motor A broader lineup for multi-platter and enterprise HDD 2 1

11 3 2 1 Other DC Motors: Results ν Record Sales and Shipments Market share growth driven by new ODD motor lines Sales increase led by OA equipment motors and Standard-type motors (1H/4 = 1) H/4 2H/4 1H/5 2H/5 1H/ Net sales<parent>(left) Shipment index<parent>(right) Net sales<subsidiaries>(left) 21 Other DC Motors: Strategy 3-New Strategy (Customer, Product, Market) ODD Blu-Ray, HD-DVD, DVD, Car-navigation system, Camcorder, Game machine DC Motor Sales (Parent-alone) Up 45% OA Equipment New model 6% smaller and lighter New 42M model High-end home appliance OA/Industrial equipment Retail channel development Nidec & Nidec Copal Electronics 1H/FY5 1H/FY6 ODD OA Standard Type Current model Standard-type brushless motors 22 11

12 Fan Motors: Results ν Record Sales and Shipments Sales advanced in the digital AV market Extended reach to worldwide PC makers (1H/4 = 1) H/4 2H/4 1H/5 2H/5 1H/ Sales (left) Shipment index (right) 23 Fan Motors: Strategy New standard-type FANs New Product Rollouts 21 new models Mass production ramp-up at new factory in Vietnam Fan Motor Sales FY2 FY4 FY6 FY8 Sales Promotion -New U.S. customers -Target application (PC, Server, Amusement applications) 24 12

13 Mid-size Motors: Results Back to Profit Driven by Higher Sales and Lower Costs Record sales led by Nidec Shibaura s home electric appliance motors Successful production shift to China H/4 2H/4 1H/5 2H/5 1H/6 Nidec Shibaura sales(left) Nidec sales(left).2 Nidec Power Motor sales(left) Consolidated Operating Income(right) Machinery: Results ν Record Sales and Operating Income Sales Up 29% and Operating Income Up 95% Y/Y Strong demand for Nidec Sankyo LCD transfer robots and Nidec- Read semiconductor package testers H/4 2H/4 1H/5 2H/5 1H/ Nidec Sankyo sales(left) Nidec-Kyori sales(left) Nidec Tosok sales(left) Consolidated operating income(right) Nidec-Shimpo & Nidec-Read sales(left) Nidec Copal sales(left) Other subsidiary sales(left) 26 13

14 Mid-size Motors, Machinery: Strategy Mid-size Motors ν Sales Drive with VMA: Electric Power Steering Hybrid Car Motors ν Profit Improvement of Home Electric Appliance Motors and Industrial Equipment Motors Brushless motor sales expansion Production boost in China Machinery ν Production Increase of Industrial Robots Semiconductor Wafer Transfer Robot Nidec Sankyo s New factory launch in Japan ν Sales Drive in Semiconductor Manufacturing Equipment Nidec-Read s PCB Tester EPS/hybrid-car Motors Nidec Power Motor (Zhejiang) Semiconductor Wafer transfer Robot PCB Tester 27 Electronic & Optical Components: Results ν Sales Hit Record High. 2Q Operating Income Improved. Optical components for DSC and cellphone drove sales growth Yield improvement expected in the 2H/FY H/4 2H/4 1H/5 2H/5 1H/6 Nidec Sankyo sales (left) Nidec Copal Electronics sales (left) Consolitated operating income (right) Nidec Copal sales (left) Others subsidiary sales (left) 28 14

15 Others: Results ν Record Sales Steady demand for HDD pivot assemblies OPM improved to 12% from 9% of 1H/FY H/4 2H/4 1H/5 2H/5 1H/6 Nidec Tosok sales(left) Consolidated operating income(right) Nidec and other subsidiary sales(left) 29 Electronic & Optical Components, Others: Strategy Electronic & Optical Components ν Lens Units for DSC and Cellphone: Profit improved through production expansion ν New Product in Optical Pickups: Market share expansion in the halfheight combo drive market ν Industrial Switches Market share expansion via Nidec Copal Electronics acquisition of Fujisoku ν ν Others Automotive Parts Production expansion of CVT control valve Capacity expansion at Nidec Tosok (Vietnam) Corp. HDD Pivot Assemblies Expanding production capacity for 2.5, 3.5 DSC Lens Units H/H Combo Optical Pickup CVT Control Valve Pivot Assemblies 3 15

16 Mid-term Outlook Sales 1, Mid-term Target VMA and Fujisoku: 5B yen assumed Consolidated Net Sales (left) Consolidated Operating Income (right) Sales: One Trillion yen M&A: 15 billion yen Operating Income: 4 1B Yen Operating income FY FY2 FY4 FY6 FY8 FY1 (Forecast) (Forecast) (Forecast) 32 16

17 M&A Strategy 15B Yen Sales Growth by M&A thru FY21 New Edges Added In-house production expertise ECU design IC design Cost efficiency Technology Competitiveness New Product Portfolio Large-size motor Automotive motor Product development Sales increase Promoting Subsidiaries M&A Activity Consolidated Growth 33 Automotive Motor Business Acquisition of Valeo s Motors & Actuators (VMA) Business VMA Location :Europe, North America, China Sales :252M euros (38B yen) EBITDA : 26M euros (4B yen) Employees:1,8 Business :Production of automotive motors (Source: FY25 consolidated results, unaudited) Indicative Transaction Schedule Mid. Nov. 26 Definitive agreements Late Dec. 26 Closing of acquisition ν Automotive Motor Business Expansion Product portfolio enrichment Market reach extension ν Competitive advantage VMA s product design capability + Nidec s brushless motor technology ν Global Operations France Germany Poland Spain Mexico China 34 17

18 Automotive Business Outlook ν VMA Product Lineups Air-flow System Engine cooling fan, Fan system Seat Adjustment System Seat, Steering column Seat belt adjustment 12 9 Sales Outlook Auto Closure System Brake System 6 Sunroof, Sliding door, Electric window Drive Line/ Steering System Automated manual transmission, Electric torque management Electric power steering ABS, Brake by-wire, Electric parking brake Other Automotive Parts Compressor, Wiper, Brush holder FY5 FY6 FY7 FY8 FY9 FY1 Potential VMA growth Hybrid Car Motors and others for handling & riding use (Nidec) Electric Power Steering Motor (Nidec) Control Valve (Nidec Tosok) 35 Nidec Everywhere Nidec Corporation