Fiscal First-half 2008 Results. Six Months Ended September 30, < U.S. GAAP > October 28, Nidec Corporation

Transcription

1 Fiscal First-half 28 Results Six Months Ended September 3, 28 < U.S. GAAP > October 28, 28 Nidec Corporation 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 the forward-looking statements are made. Summary of 1H/FY8 Record 1H Sales & Operating Income Double-digit Y/Y Operating Income Growth in All Business Segments Net Income up 37% Y/Y to Record High Interim Dividend: 3 yen per Share (up 5 yen) 2 1

2 Machinery Sales by Business Segment (April-September 28) 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 Die bonders, Circuit board testers, High-speed pressing machines, Chip mounters, Measuring machines, Power transmission equipment, Factory automation system Card Readers, Industrial Robots 21.% (21.8%) 1.9% (9.6%) 12.8% (13.1%) Motors 63.9% (65.1%) 4.2% (3.5%) JPY 371.7B 51.1% (51.9%) HDD Motors 29.6% (29.8%) 12.2% (12.6%) 6.% 3.3% Parenthetic percentage figures represent 1H/FY27 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 Consolidated Profit/Loss (Yen in millions) 1H/FY7 1H/FY8 Change (%) FY8 Forecast Net Sales Operating Income Operating Income Ratio Income before Tax Net Income EPS 362,71 34,76 9.4% 31,56 2, ,658 4, % *43,57 27, % +18.% +36.7% +36.8% +36.7% 8, 9, 11.3% 9, 58, 4.3 FX (Yen/US$) Ave. Average--- Term-end % -1.3% *FX Impact (Y/Y): +4,635 million yen 4 2

3 Consolidated Net Sales 8 Full-year 1st-half FY4 FY5 FY6 FY7 FY8 5 Consolidated Operating Income Full-year 1st-half FY4 FY5 FY6 FY7 FY8 6 3

4 Consolidated Income Before Tax Full-year 1st-half FY4 FY5 FY6 FY7 FY8 7 Consolidated Net Income 6 Full-year 1st-half FY4 FY5 FY6 FY7 FY8 8 4

5 Business Segment Results---1 Small Precision Motors Mid-size Motors Other Small Motors (left axis) Fan Motors (left axis) Net Sales (left axis) Net Sales Other DC Motors (left axis) HDD Motors(left axis) Operating Income (right axis) Operating Income (right axis) H/7 1H/8 1H/7 1H/8. 9 Business Segment Results---2 Machinery Electronic/Optical Components Others Net Sales (left axis) Net Sales (left axis) Net Sales(left axis) Operating Income (right axis) Operating Income (right axis) Operating Income (right axis) H/7 1H/8 1H/7 1H/8 1H/7 1H/8 1 5

6 Consolidated Quarterly Results Net Sales(left axis) Operating Income(right axis) Q/7 2Q 3Q 4Q 1Q/8 2Q 11 Consolidated Cash Flow Operating Activities Investment Activities Free Cash Flow H/6 2H/6 1H/7 2H/7 1H/8 12 6

7 Capex, Depreciation and R&D 5 Capex Depreciation R&D FY7 FY8 FY7 FY8 FY7 FY8 Full-year 1st-half 13 FY28 Forecast (Yen in millions) 1H Forecast 1H Actual Full-year Forecast Net Sales 375, 371,658 8, Operating Income Income before Tax Net Income EPS (Yen) FX (Yen/US$) 4, 4, 26, ,218 43,57 27, , 9, 58,

8 (Yen/share) Dividends and EPS Full-year Interim Consolidated EPS (Full-year, right axis) FY4 FY5 FY6 FY7 FY8 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 25. (Yen) Listed Subsidiaries -Results & Forecasts- (Yen in millions) 1H/27 Actual Net Sales 1H/28 Actual FY28 Forecast 1H/27 Actual Operating Income 1H/28 Actual FY28 Forecast 1H/27 Actual Net Income 1H/28 Actual FY28 Forecast Nidec Sankyo 53,38 58, , 4,139 5,37 1, 3,261 4,92 6, Nidec Copal 43,67 45,11 9, 3,472 4,8 8,2 2,644 2,774 5,35 Nidec Tosok 12,346 13,477 27, 88 1,191 2, ,4 Nidec Copal Electronics 16,375 15,667 33,4 1,772 1,887 4,5 1,74 1,63 2,6 Nidec Servo 17,491 15,474 28, 425 1,225 2, ,7 1,7 Nidec-Read 4,57 5,557 1, 812 1,17 2, ,25 Total 146, ,321 31,4 11,428 14,518 29,3 8,31 11,173 18,3 Financial data 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 Shipments up 17% y/y; Sales up 2% y/y Sales growth unimpeded by a 11% yen appreciation Shipments up > 4% in the 2.5 form factor (1H/6=1) H/6 2H/6 1H/7 2H/7 1H/ Sales (left axis) Shipment Index (right axis) 18 9

10 HDD Motors: Strategy-1 Double-digit Sales Growth Driven by Netbook HDD market maintaining a 13% annual growth on the strength of Netbook PCs and external drives Netbook 2.5 HDD Motors pushing up Nidec market share growth and product mix improvement Unrivaled market position built on decisive technical advantages <HDD Demand by Form Factor> (Units in millions) (Source: TSR, as of October 28) FY6 FY7 FY8 (F) FY9 (F) FY1 (F) FY11 (F) FY12 (F) 3.5"HE 3.5"DT 2.5" Sub1.8" 19 HDD Motors: Strategy-2 In-house Production & Competitive R&D Cost Improvements Falling metal prices Purchasing cost reductions In-house Manufacturing Capacity buildup in base plate machining and die casting Standardization & Automatization Model standardization Parts commonallization R&D focused on highly cost competitive models Nidec Brilliant (Suzhou) ( Integrated base-plate manufacturing) Oct. 28: Groundbreaking Jun. 29: Volume production Nidec Nagano Technical Center (New laboratory) Completion: March

11 Other DC Motors: Results Sales down y/y due to yen s appreciation Record Nidec (parent) shipments Shipments up 2% y/y; Sales down 4% y/y (1H/6=1) Sales H/6 2H/6 1H/7 2H/7 1H/8 Sales(Parent) Sales(Subsidiaries) Sales Index(Parent, right axis) Other DC Motors: Strategy Technical Lead & Patent Strength Optical Disk Drive Motors Patent-backed competitive strength New models directed to DVD-W/Blu-ray format OA Equipment Motor Market share gains and mix shift toward high-value added models Module Assemblies Standard-type Motors Home appliances: -Steam oven -Induction heating cooker OA Equipment: -Toner stirrer -Paper feed unit Industrial/hobby-related <Optical Disk Motor Demand> (Units in millions) Combo, etc DVD-W Blu-ray FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Source: TSR) ECU-equipped Optical Disk Drive Motor (Slim-type) 22 11

12 Fan Motors: Results Sales down 7% y/y due to yen s appreciation Record Nidec (parent) shipments Mix shift toward standard-type fan and high-value lines (1H/6=1) Sales H/6 2H/6 1H/7 2H/7 1H/ Sales(Parent) Sales (subsidiaries) Shipment Index (Parent, right) 23 Fan Motors: Strategy Mix Shift towards High-value Products < Nidec Sales Product Mix Shift > Standard-type Fan & high-value fan 5 Game machine fan CPU cooling fan 4 Router fan Tray Cell Tower Sirocco Fan 3 2 Notebook Cooling Fan 1 Blade Server Fan FY7 FY8 (F) FY9 (F) FY1 (F) (Source: Nidec Corporation) 24 12

13 Sales Mid-size Motors: Results Sales down slightly y/y; Operating income up 1% y/y EPS (Electric Power Steering) motor sales up 3% y/y NMA (Nidec Motors & Actuators) sales pulled down by weakness in the E.U. market. Sales up in home appliances and industrial equipment H/6 2H/6 1H/7 2H/7 1H/ Nidec Shibaura Nidec Power Motor Nidec Nidec Motors & Actuators Operating Income(right axis) 25 Mid-size Motors: Strategy-1 Automotive Brushless Motors EPS Motors Customer adoption picking up across car brands Anti-cog technology Industry-leading compactness and lightness New Applications Dual-clutch Transmission (DCT) motor extending reach beyond the existing 2 backlog customers Need for better fuel-economies and eco-friendliness turning auto components makers Brushless motors seeking new drive solutions R&D Center (Shiga, Japan) increasing engineers to 1,5 by FY212 <Nidec EPS Motor Demand Outlook> (Units in millions) (Units in millions) 1 Nidec EPS Shipment Outlook (Left) 4 Global EPS Demand Outlook (Right) FY7 FY8(F) FY9(F) FY1(F) FY11(F) FY12(F) (Source: Nidec) Hybrid-Car Oil Pump Motors DCT Motor Biofuel Pump Motors 26 13

14 Mid-size Motors: Strategy-2 Nidec Motors & Actuators ( NMA ) New product rollouts leveraging Nidec expertise Lighter, smaller magnetic circuit using own design In-house parts production driving profitability Competitive molding/process technology (Nidec Dalian, China) Pressed/plastic-molded/machined parts supplied to NMA s manufacturing plants Anti-lock Braking Engine-cooling Motor System (ABS) Motor Seat Adjustment Motor Laminar Cores Brush Card Automotive motor parts being manufactured in-house Motor Shafts Plastic Housings 27 Mid-size Motors: Strategy-3 Home Appliance/Industrial Motors Home Appliance Motors Air-conditioning motor driving deeper into the overseas markets All-seasons models extending sales reach Air-conditioning/Drying DC Motor High-efficient Washing Machine Drum Drive DC Motor Industrial Motors Gaining a firm foothold in the green products market Standard-type motor targeted at overseas customers Dishwasher, Water Heater DC Pump Electric Tool High-efficient DC Motor Wind-power System Nacelle Drive Motor Disposer DC Motor General-purpose Industrial Motor 28 14

15 Machinery: Results Sales up 16% y/y; Operating Income up 12% y/y Nidec Sankyo industrial robots spearheading sales increase Nidec Copal industrial equipment sales up 3% y/y Sales H/6 2H/6 1H/7 2H/7 1H/ Nidec Sankyo Nidec-Kyori Nidec Tosok Operating Income(right axis) Nidec-Shimpo & Nidec-Read Nidec Copal Other subsidiaries 29 Machinery: Strategy Industrial Robots Large-size LCD Panel Handling & Clean-room Operations New order intake starting on the >1G platform Own design for operations in a vacuum environment Inspection Equipment New Markets, New Customers Testers and jigs targeted at the Chinese and ASEAN markets Entry into the market for optical testing equipment and solar cellassociated products 11G-adaptable LCD Panel Handling Robot Print Circuit Board Tester Semiconductor wafer handling robot Thin-film solar panel handling robot Solar Cell Tester 3 15

16 Electronic & Optical Components: Results Sales down 2% y/y; Operating Income up 15% y/y Sales Precision press parts marking double-digit sales growth; Optical components sales slow down. Improved yield of camera shutter production pushing profitability H/6 2H/6 1H/7 2H/7 1H/8 4 2 Nidec Sankyo Nidec Copal Nidec Copal Electronics Other subsidiaries Operating income (right axis) 31 Sales Others: Results Record Sales Auto parts and pivot assemblies up 2% y/y in sales Improved productivity of auto parts H/6 2H/6 1H/7 2H/7 1H/8 Nidec Tosok Nidec and other subsidiaries Operating income (right axis) 32 16

17 Electronic/Optical Components & Others: Strategy Electronic/Optical Components DSC Shutters/Lens Unit & Cellphone Lens Unit Technical differentiation High-value added applications Home Appliance Unit Production capacity increase R&D shift to high-value added products Overseas sales expansion & profit growth Others CVT control valve Volume boost for compact car use Continued drive for the auto parts business HDD pivot assembly Aggressive cost-cutting Productivity improvement Profit growth Camera Shutter (with Image Stabilizer) Air-conditioner Filter Cleaning Unit Drum-type Washing Machine Water Pump Unit CVT Control Valve HDD Pivot Assemblies 33 Mid-term Outlook 34 17

18 Mid-term Target M&A Driving Top-line Growth Further Forward Consolidated Sales Automotive Motor Sales Consolidated Operating Income Consolidated Sales 1,B yen 629.7B 742.1B 8.B Automotive Motor Sales 35B yen Consolidated Operating Income 9B yen FY6 FY7 FY8 FY9 FY1 FY12 35 M&A Proposals Fuji Electric Holdings ( FHC ) Memorandum of Understanding signed on October 1, 28 Capital Alliance Agreement Middle of December 28 Joint Venture Company Nidec Fuji Motor (formerly Fuji Electric Motor Group) Date of Establishment January 1, 29 Ownership Ratio Nidec: 6% Fuji Electric Systems: 4% (FHC Subsidiary) Toyo Denki Seizo K.K. ( TDS ) Capital Alliance Proposal sent to TDS in September 28 TDS Profile (as of May 31, 28) Establishment June 2, 1918 Paid-in Capital 4,483 million yen Number of Shares Outstanding 46,575 thousand shares Number of Shareholders 8,222 Number of Employees

19 New Edge for Industrial Motor Business Launching into Global Market with Added Strength Home Appliances Motors & Industrial Motors FY21 Combined Target Sales :1B Yen Fuji Electric Motor Group 64 year-long, time-honored company Annual Sales: Approx. 23B yen Employees: 811 Products: Industrial electric motors and associated applications Ring Blower Nidec Fuji Motor (Tentative) 1. Blended technical expertise 2. Enhanced economies of scale 3. Added competitive power Meeting rising demand for brushless motors Expanding global sales reach Geared Motor Home Appliance Motors Nidec Group Global-scale business resources Annual Sales: 5B yen (Nidec Power Motor and Nidec Shibaura combined) Products: Industrial motors Home appliances motors Industrial Motors 3-phase Standard Motor High-efficient Induction Motor 37 Prospective Synergy with TDS Environmental Necessity Railcar Market Challenges facing TDS Rising environmental awareness Global shift to eco-/cost-efficient transportation means Need for innovative electric motors Well-developed, large-scale markets High-growth markets: Japanese market nearing maturity Lagging profitability Limited overseas sales exposure TDS Nidec Strong technical background in the railcar equipment industry Profound insight into the railroad industry Well-established business network Proven management knowhow Worldwide management resources Industry-leading expertise in electric motor and related technologies. A marriage between companies sharing a common electric motor background but with specialization in different applications World s No.1 Electric Motor Manufacturer in the Railcar and Automobile Markets 38 19

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