Results for the Fiscal Year 2007

Transcription

1 Nidec Corporation Results for the Fiscal Year 27 < U.S. GAAP > April 24, 28 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 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 factors include, but are not limited to: fluctuation of currency exchange rates, overall supply and customer demand in the motor industry, product development and production capabilities, performance of affiliated companies, and other risks and uncertainties. Nidec undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date Summary of FY27 Sales: Record High (Up 18% Y/Y) Operating income: Record High (Up 2% Y/Y) Small Precision Motor: Up over 2% Both in Sales and Operating Income Mid-size Motors: Sales Up 7%, Operating Income Up 5-fold Income Before Tax Down, Net Income Up Y/Y --- FOREX fluctuation devaluating the foreign-currencydenominated receivables and assets (14.1B yen) Term-end dividend: 3 yen per share Annual dividends: 55 yen per share Dividend ratio: 19.4% 2 1

2 Machinery Others Pivot assemblies, Auto parts, Logistics, Services Etc., Musical products Electronic & Optical Components Camera shutters, Camera lens units, Encoders, Switches, Trimmer potentiometers Motor-driven actuator units, Optical pickup units, Processing, Precision plastic mold products Die bonders, Circuit board testers, Highspeed pressing machines, Chip mounters, Measuring equipment, Power transmission equipment, Factory automation system Card Readers, Industrial Robots Sales by Product 21.5% (23.%) 9.9% (13.2%) Motors 13.% (9.1%) 65.% (59.6%) 3.7% (4.2%) HDD Motors 742.1B 6.3% 3.2% Parenthetic percentage figures represent FY26 mix. 3.% (31.5%) 12.5% (11.8%) 52.% (5.5%) 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) FY6 FY7 Change FY8 Forecast Net Sales Operating Income Operating Income Ratio Income before Tax Net Income EPS FX (Yen/US$) Average--- Term-end ,667 64,9 1.2% 65,595 39, yen 117.2yen 118.5yen 742,126 76, % * 62,683 41, yen yen 1.19yen +17.9% +2.% -4.4% +3.1% +2.9% -2.3% -15.1% 8, 9, 11.3% 9, 58, 4.17 yen *FX impact: -15.9B Y/Y 4 2

3 9 7 Consolidated Net Sales 67.1B (1.7%) Nidec Motors & Actuators (NMA) Nidec Brilliant Japan Servo (Y/Y change) (+17.9%) 8. (+7.8%) 1-1 FY4 FY5 FY6 FY7 FY8 5 Consolidated Operating Income 1 (Y/Y change) (+2.%) 9. (+17.1%) FY4 FY5 FY6 FY7 FY8 6 3

4 Consolidated Income Before Tax 1 (Y/Y change) B FX impact (-4.4%) 9. (+43.6%) FY4 FY5 FY6 FY7 FY8 7 Consolidated Net Income (Y/Y change) (+3.1%) 58. (+4.9%) 1 FY4 FY5 FY6 FY7 FY8 8 4

5 Business Segment Results---1 <Small Precision Motors, Mid-size Motors> Sales Small Precision Motors 35.6 Other small motors (left) Fan motors (left) Other DC motors (left) HDD motors (left) Operating income (right) FY5 FY6 FY Mid-size Motors Net sales (left) Operating income (right) NMA sales: 36.3B 96.4 NMA sales: 9.1B FY5 FY6 FY Business Segment Results---2 <Machinery, Electronic & Optical Components, Others> Machinery Electronic/Optical Components Others Net sales (left) Operating income (right) Net sales (left) Operating income (right) Net sales (left) Operating income (right) FY5 FY6 FY7 FY5 FY6 FY7 FY5 FY6 FY7. 1 5

6 Consolidated Quarterly Results 2 18 Net sales (left) Operating income (right) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY26 FY Consolidated Cash Flow Operating Activities Investment Activities Free Cash Flow (Operating CF + Investment CF) FY4 FY5 FY6 FY7 12 6

7 Capex, Depreciation and R&D Capex Depreciation R&D FY6 FY7 FY8 FY6 FY7 FY8 FY6 FY7 FY8 13 FY28 Forecast (Yen in millions) 1H Forecast 2H Forecast Full-year Forecast Net Sales Operating Income Operating Income Ratio Income before Tax Net Income EPS FX (Yen/US$) Ave. 37,5 4, 1.7% 4, 26, yen 1.yen 425, 5, 11.8% 5, 32, 22.78yen 1.yen 8, 9, 11.3% 9, 58, 4.17yen 1.yen 14 7

8 Dividends and EPS (Yen/share) 6 Annual Dividends (left) Consolidated EPS (right) (Yen) 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 Consolidated Subsidiaries -Results and Forecasts- (Yen in millions) FY6 Net Sales FY7 FY8 FY6 Operating Income FY7 FY8 FY6 Net Income FY7 FY8 Nidec Sankyo 112,628 18, , 9,439 9,544 1, 1,287 5,41 6, Nidec Copal 84,12 87,957 9, 5,827 7,443 8,2 4,34 4,993 5,35 Nidec Tosok 23,43 26,213 27, 1,89 2,174 2,5 1,182 1,634 1,4 Nidec Copal Elcs 26,759 33,88 33,4 3,473 4,36 4,5 2,28 2,547 2,6 Japan Servo 32,177 35,46 36, -56 2,53 2,7-1,451 1,654 2, Nidec-Read 7,716 8,992 1, 1,549 1,83 2, 938 1,116 1,25 Total 286,722 31,75 39,4 21,537 27,323 29,9 17,54 16,985 18,6 All numbers in the above table have been prepared under the generally accepted accounting standard in Japan. Japan Servo became a consolidated subsidiary of Nidec on April 27,

9 Business Segment Information Small Precision Motors HDD Motors Other DC Motors Fan Motors Mid-size Motors Machinery Electronic & Optical Components Others HDD Motors: FY27 Results Double-digit increase in sales and shipments Sales and shipments up 13% y/y and 16% y/y, respectively U.S. dollar-based ASP remaining stable FY5 FY6 FY7 (FY5=1) Sales (left) Shipment index (right) 18 9

10 HDD Motors: Strategy-1 <HDD Demand Trend> (Million units) Uptrend continuing into CY6 CY7 CY8(F) CY9(F) CY1(F) CY11(F) CY12(F) 3.5"HE 3.5"DT 2.5" Sub1.8" Source:TSR, April 28 Robust PC demand in BRICs Digital content explosion PMR-led HDD capacity boost Global storage capacity demand Million TB FY4 FY5 FY6 Source: TSR FY7 FY8 19 HDD Motors: Strategy-2 Full-fledged improvement in profitability In-house manufacturing Base plates and other HDD motor parts Investment efficiency Production expansion through full utilization of existing capacity Strategy building SPM Strategy Planning Office set up to lead organized profitability improvements Nidec (Zhejiang) Corp. (Production boost: Dec. 27) Nidec Precision (Thailand) (Production boost: Oct. 27) Production Customer satisfaction Standardization Top cover SPM Strategy Planning Office Sales R&D Technical edge HDD base plate HDD bracket 2 1

11 Other DC Motors: FY27 Results Record sales and shipments Sales up 24% y/y, reflecting the expanded scope of consolidation. ODD (Optical Disk Drive) motor gaining market share FY5 FY6 FY7 (FY5=1) Net sales<parent>(left) Shipment index<parent>(right) Net sales<subsidiaries>(left) 21 Other DC Motors: Strategy Profitability Driven by Optical Disk Drive Motors (slim-type) (Million units) Slim 4 ODD Motor Market HH (Source: TSR) CY6 CY7 CY8 (F) CY9(F) CY1(F) CY11(F) CY12(F) ODD motors in brisk demand backed by strong laptop PC market Three Asia-based factories operating in close cooperation High-end type in brisk demand Small & Powerful OA motors ODD motor ODD slim ODD half-height Printer Blu-ray Disk Nidec (Dalian) Ltd. Nidec (Dongguan) Ltd. Nidec Vietnam Corp

12 Fan Motors: FY27 Results Record sales and shipments Sales up 2% y/y, reflecting the expanded scope of consolidation. Mix shifting towards higher-margin products (FY5=1) FY5 FY6 FY7 Sales(Parent, Left) Sales (Subsidiaries, Left) Shipment Index(Parent, Right) 23 Fan Motors: Strategy Entering into New/High-end Market New market exploitation with Series Penetration into Laptop PCs Share growth in Servers, communication devices 6 5 Fan Motor Sales Series Laptop PC Market Server, Communication Device Market Blade Server 4 High Airflow Fan 3 Fan Tray 2 1 FY5 FY6 FY7 FY8 Blower Large, High Reliability Fan Motorized Impeller Fan 24 Communications Device 12

13 Mid-size Motors: FY27 Results Sales up 7% y/y; OP up five-fold to a record high. Full consolidation of NMA EPS motor sales up 6% y/y Profit increase driven by improved profitability of home appliances motors and increased sales of EPS motors Sales FY5 FY6 FY7 Nidec Shibaura sales (left) Nidec sales(left) Consolidated Operating Income(right) 96.4 Nidec Power Motor sales(left) NMA sales(left) Operating Income 25 Mid-size Motors: Strategy-1 Growing environmental concerns accelerating the shift towards brushless motors. Automotive motors EPS motor order intake gaining momentum New features geared toward nextgeneration vehicle drive train systems (CO2 emission control, bio-ethanol fuel compatible, etc.) H-EPS EPS Motor Order Growth EPS FY7 FY8 FY9 FY1 FY11 FY12 Gas Hydraulic/Electric Fuel Cell Water Pump Oil Pump Twin clutch Shiga Technical Center New Plant (Completion: Aug. 29) R&D Resource enrichment Nidec Automobile Motor (Zhejiang) Corp. 212 Capacity up 3-fold Rear-wheel Control 26 13

14 NMA Mid-size Motors: Strategy-2 Global production system New Poland plant breaking ground Mass-production in Dalian Home appliance/industrial motors Global expansion of the airconditioning market New motor demand arising from the high-end home appliance and electric tool markets New NMA Poland Factory (Start-up: Nov. 28) Production Plan FY7 2-fold Seat Adjustment Engine Cooling FY9 Nidec (Dalian) Ltd. The 2 nd Factory Production Lines Wash Machine Motor Electric Tool ABS Air-conditioning Motors 27 Sales Machinery: FY27 Results Sluggish demand for LCD panel transfer robot Weak capital spending affecting Sankyo, Copal and Kyori Continued uptrend for Shimpo, Read and Tosok FY5 FY6 FY7 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) 28 14

15 Machinery: Strategy Industrial robots Korean and Taiwanese LCD market Semiconductor-wafer, solar panel Card reader Factory automation Power transmission drive Inspection jigs, etc. 8G LCD Panel Transfer Robot Card Readers Semiconductor Wafer Transfer Robot power transmission drives Optical Appearance Inspection Equipment High-speed Four-terminal Jig 29 Electronic & Optical Components: FY27 Results Record sales and a 6% y/y increase in operating income Strong optical components sales backed by robust digital camera and cell-phone market Higher demand for actuators and switches Sales FY5 FY6 FY7 Nidec Sankyo sales (left) Nidec Copal Electronics sales (left) Consolitated operating income (right) Nidec Copal sales (left) Others subsidiary sales (left) 3 15

16 Sales slightly up y/y Others : FY27 Results Double-digit increase in Nidec Tosok s auto parts sales Slowdown in pivot assembly business Sales FY5 FY6 FY7 Nidec Tosok sales(left) Consolidated operating income(right) Nidec and other subsidiary sales(left) 31 Electronic & Optical Components and Others: Strategy Electronic & Optical Components Camera shutter/lens Market share supremacy Technical differentiation Industrial switch Full-fledged growth Profit contribution from Fujisoku Others CVT control valve Profit improvement Production in Vietnam HDD pivot assembly Profit improvement Productivity increase in Singapore Cell-phone Camera Shutters Industrial Switches CVT Control Valve HDD Pivot Assemblies 32 16

17 Mid-term Outlook Mid-term Target Sales FY21 Sales: 1 Trillion yen FY212 Automotive Motor Sales 35B yen FY28 Operating Income 1B yen Automotive Motor Sakes 1B M&A: 15B yen 2 1 Trillion B 4 Operating Income FY2 FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (F) (F) (F) (F) (F) Consolidated Sales (Left) Automotive Motor Sales Consolidated Operating Income (Right) 34 17

18 Product Mix Shift towards FY21 Yen in billions 1 High Profit Machinery + Electronic/Optical Components + Others High Growth Certain Small Precision Motors + Automotive + Home Appliances 8 Stable Growth HDD Motors Motor Applications Non-HDD Motors HDD Motors Motors: Over 7% FY6 FY7 FY8 FY9 FY1 (F) (F) (F) 35 Steps toward a Trillion-yen Company Executive Officer System Agility to match changing business environment Split between decision-making and action-execution Corporate Social Responsibility (CSR) Job growth driven by business growth Pursuit of universally desired products Managerial Competence Recruit of high-caliber executives Promotion of able young managers 36 18

19 Nidec Corporation 19