Summary of 1Q FY2011

Transcription

1 OSE, TSE: 6594 NYSE: NJ / Fiscal First Quarter 211 Results Three Months Ended June 3, 211 < U.S. GAAP > Nidec Corporation July 22, 211 Summary of 1Q FY211 up Q/Q and Y/Y, partly offsetting the impact of the earthquake-induced supply chain disruptions. Operating income ratio back to double digits, reflecting improved profitability for the Small Precision Motors and General Motors* businesses. Operating income up Q/Q. Upward revision on first-half and full-year guidance * The General Motors product group consists of electric motors for household, industrial and automotive applications. 2 1

2 Consolidated Profit/Loss Millions of Yen, except for EPS and FX Rates 1Q FY21 1Q FY211 Change FY211 Forecast Net 168, , % 76, ( Ratio) 27,115 (16.1%) 19,222 (1.7%) -29.1% 9, (11.8%) Income Before Tax 21,15 17, % 83,5 Net Income 13,783 12, % 55, EPS (Yen) % FX Rate (Yen/US$) Average: Term end: % -8.8% 8. 3 Upward Revision on FY211 Guidance Original Guidance Revised Guidance (Millions of Yen, except for EPS, dividend and FX rates) 1H Full-year 1H Full-year 35, 72, 36, 76, 32, 85, 37, 9, Ratio 1.5% 11.8% 1.3% 11.8% Income Before Tax 3, 81, 32,5 83,5 Net Income 18,5 52,5 21, 55, EPS (Yen) Dividend (Yen) Assumed FX Rate (Yen/US$)

3 Consolidated Quarterly Results Quarterly performance bottomed out in 4Q FY21 2 (LHS) (RHS) Ratio % 16.1% % 15.5% % 1.7% % 9.8% % Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY29 FY21 FY211 5 Listed Subsidiaries Profit Performance Millions of Yen Apr-June FY211 Results Apr-Sep FY211 Forecast Progress (%) Full-year FY211 Forecast Progress (%) Nidec Sankyo 2,23 4,3 47% 1, 2% Nidec Copal 1,16 2,7 41% 7,5 15% Nidec Tosok 37 1, (Revised upward) 31% 4, 8% Nidec Copal Electronics 1,421 2,25 (Revised upward) 63% 5, 28% Nidec-Read 577 1, 58% 2,6 22% Total 5,434 11,25 48% 29,1 19% *All figures are based on the generally accepted accounting standard in Japan. 6 3

4 HDD Motor Shipments Outlook (Millions of Units) HDD Demand Nidec Motor Shipments Upturn expected in 2Q FY21 FY21 FY21 FY21 FY211 FY211 FY211 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY211 (Source: Nidec IR Dept. estimates) 7 Growing Demand for High Volume Data Storage High Data Throughput Speed & Storage Costs Tier1 (FC/SAS) Enterprise 3.5inch / 2.5inch 15Krpm HDD (partly served by SSD) Tier2 (SAS) Enterprise 3.5inch / 2.5inch 1Krpm HDD Tier3 (SATA) Highend Drive 3.5inch 7.2Krpm HDD (Source: Nidec IR Dept. estimates) Tier4 (Tape) Magnetic Tape On-Line Near-Line Off-Line Read/Write Speed-oriented Capacity- and High capacityoriented Speed-oriented (Backup & Archiving) On-Line Storage Capacity & Unit Volume High HDD Shipments Outlook Near-Line CY21 CY211 Up 19% HDD Shipments Outlook Y/Y 31M units 37M units CY21 CY211 Up 25% Y/Y 2M units 25M units 8 4

5 Automotive Motor Unit Growth Driven by Tightening Fuel Economy Standards Mid-Term Outlook for Nidec Electric-Power-Steering Motor Shipments (Thousands of Units) 12, 8, Up 29% New EPS Customers 11, Existing EPS Customers Up 42% Up 38% 6, 8,5 4, 2,928 4,339 FY29 FY21 FY211 FY212 FY213 9 Two-Fold Growth in Motor Production for Asian White Goods Nidec Techno Motor Production Outlook China Thailand (Millions of Units) 5 4 targeted at Chinese domestic customers (Millions of Units) 2 Southeast Asian demand for energy-efficient air conditioners fold 1 2-fold 1 FY21 FY213 FY21 FY

6 IE3 Motors* Meeting Strict Energy-Saving Requirements Addressing mandatory/voluntary electricity restrictions in Japan is a pressing industry-wide issue, generating strong customer attention to Nidec IE3 (premium efficiency) motors. Nidec IE3 motors tapped into the Japanese market ahead of the competitors, eyeing global sales of 2 billion yen for FY215. Nidec IE3 (premium efficiency) motor series IEC (International Electrotechnical Commission) efficiency classification U.S.A.: December 21 Japan: 215 (tentative) IE4 IE3 IE2 IE1 Super premium efficiency Premium efficiency High efficiency Standard efficiency Application examples: Conveyer, general-purpose pump, dust collector, etc. * IE3 Motors: National Electrical Manufacturers Association (NEMA) premium-efficiency motors compliant with the Energy Independence and Security Act of 27 (EISA). 11 Responses to Rising Rare Earth Prices Leadership in Rare Earth-Free Motor Design Volume production and sale of switched-reluctance (SR) motors Moving up rare earth-free design rollout to automotive traction motors Active inquiries coming from agriculture and construction industries Replacing neodymium with ferrite as a magnetic material Ferrite magnet motors for electric power steering systems and office equipment Reducing the amount of motor magnets through the adoption of innovative structures and processing methods Unique rotor structure Superior design-change flexibility stemming from a semi-automated manufacturing environment 12 6

7 Proven Performance of SR Traction Motor SR motor Tommy Kaira ZZ EV Test-drive event (Dalian-Pingfu Factory Tour in May 211) 13 SR Drives Making Headway in Industrial Motor Market SR motors deliver high efficiency across broad speed ranges <System efficiency comparison> SR Motor Motor efficiency (%) SR motor AC motor Control unit Speed (rev/min) Application examples High-speed: Screw compressor, Pumps, etc. Low-speed: Extrusion molding, Conveyer, Feeder, etc. 14 7

8 Listed Subsidiaries Performance Highlights 4, 3, 2, 1, 3,23 23,52 1Q FY21 (LHS) 3,337 1Q FY211 Highlights (Millions of Yen) Operating income (RHS) 2,531 2,18 2,23 24,679 22,451 21,58 22,46 2Q 3Q 4Q 1Q FY211 4, 3, 2, 1, Millions of Yen, except for EPS Ratio Recurring Income Net Income EPS (Yen) 1H Forecast (A) 43,5 4,3 9.9% 3,8 2, Q Results (B) 22,46 2,23 9.% 1,714 1, Progress (B) / (A) 1Q operating income ratio down y/y. Cost improvements planned for 2Q onward. Structural revamp implemented through the liquidation of Nidec Pigeon. New product/market/customer exploration Large-volume orders for DSC stepping motors from new customers Full-fledged entry into the vacuum robot market in partnership with a U.S. venture company New orders for washing machine components from Chinese domestic manufacturers 51.5% 47.1% % 45.8% 45.8% 16 8

9 1, 5, 1,258 7,929 1Q FY21 (Millions of Yen) (LHS) (RHS) 1,354 7,867 1,151 1Q FY211 Highlights 1,24 1,421 7,348 7,434 7,782 2Q 3Q 4Q 1Q FY211 1,5 1, 5 Millions of Yen, except for EPS Ratio Recurring Income Net Income EPS (Yen) Initial 1H Forecast (A) 14,2 1, % 1,65 1, Q Results (B) 1, % 1, Progress (B) / (A) 54.8% 86.1% % 95.2% 95.2% Revised 1H Forecast 14,75 down 1.9% y/y; Operating income up 12.9% y/y. Cost improvement initiatives bringing operating income ratio to 18.3% Record quarterly highs in all income categories Broader, more stable operating foundations firming up, driven by enhanced customer and market responsiveness. Improved responsiveness and new product/market/customer exploration offsetting the adverse impact of the earthquake Upward revision on 1H FY211 financial forecast 17 7,782 2, % 2,25 1, , 2, 1, 19,219 2,316 1Q FY21 (LHS) 2,52 2,74 1Q FY211 Highlights (Millions of Yen) 2,6 17,244 (RHS) 1,289 15,927 1,16 15,227 2Q 3Q 4Q 1Q FY211 3, 2, 1, Millions of Yen, except for EPS Ratio Recurring Income Net Income EPS (Yen) 1H Forecast (A) 34, 2,7 7.9% 2,5 1, Q Results (B) 15,227 1,16 7.3% Progress (B) / (A) Core product sales affected by the earthquake-induced supply chain disruptions. 1Q sales down y/y, yet broadly consistent with the company s initial expectations. of single-reflex lens DSC marking record quarterly high (up approx. 3% y/y). Replacement lens units in high demand, partly driven by the expansion of the mirrorless singlelens reflex DSC market. Market leadership strategy accelerated by strong sales initiatives in the Asian and North American markets. Full-scale operation at the new factory in Vietnam Geographic advantages Localization of manufacturing processes ranging from product design to volume production Lead time and cost advantages % 41.% % 48.% 48.% 9

10 1Q FY211 Highlights 4, (LHS) (Millions of Yen) Operating income (RHS) 1, Millions of Yen, except for EPS 1H Forecast (A) 1Q Results (B) Progress (B) / (A) 3, 2, 1, 572 2,989 1Q FY ,211 3, ,161 3,113 2Q 3Q 4Q 1Q FY211 5 Operating Income Operating Income Ratio Recurring Income Net Income EPS (Yen) and operating income up y/y. Demand for inspection equipment continuing momentum in the smartphone market. 5,5 1, 18.2% 1, , % Next-generation inspection equipment geared toward products on new technology platforms (including thin package substrates). R&D continues to develop semiconductor inspection probes % 57.7% % 5.2% 5.2% 19 9, 8, 7, 6, 5, 4, 3, 2, 1, 7, Q FY21 (LHS) 97 7,292 1,19 7,854 1Q FY211 Highlights (Millions of Yen) Operating income (RHS) 887 7,455 6, ,69 2Q 3Q 4Q 1Q Q2 FY211 1,5 1, Millions of Yen, except for EPS Operating Income Operating Income Ratio Recurring Income Net Income EPS (Yen) Initial 1H Forecast (A) 1Q Results (B) Progress (B) / (A) Revised 1H Forecast 14, 6, % 14, % 1, 3.9% 4.4% - 6.9% % 1, % % down 6.2% y/y; Operating income down 68.1% y/y. April-May sales under downward pressure after the March earthquake. Production in sharp plunge following the abrupt customer inventory adjustments in the immediate post-quake weeks. upturn in June, despite lingering effects of the earthquake on manufacturing operations. A major recovery expected from mid-2q onward. Upward revision on the 1H FY211 financial forecast: (+5M Yen); Operating income (+45M Yen). Full-year forecast remains unchanged. 2 1

11 Notes Regarding Forward-looking Statements Disclaimer Regarding Forward-Looking Statements These presentation materials and the subsequent discussions regarding the Nidec Groups financial results contain forward-looking statements including expectations, judgment, 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 the forward-looking statements are made. 21 Nidec IR Contacts Japan Tel: ir@jp.nidec.com U.K. Tel: takagi.shinichi@jp.nidec.com U.S. Tel: shinji.yamada@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. 11

12 Appendix Performance Trend & Product Groups Overview by Product Group (1Q FY211) Others Auto parts, Logistics, Services Etc., Musical products Electronic & Optical Components Camera shutters, Camera lens units, Switches, Trimmer potentiometers, Actuator units, Processing, Precision plastic mold products Machinery Industrial Robots, Card Readers, Circuit board testers, High-speed pressing machines, Chip mounters, Measuring equipment, Power transmission equipment, Factory automation system 1.7% (1.2%) General Motors Motors for automobiles, home electronic appliances and industrial equipment 4.5% (5.2%) 15.2% (18.%) HDD Motors 179.1B Yen 27.2% (14.7%) 69.6% (66.6%) Parenthetic percentages represent 1Q FY21 mix. 42.4% (52.%) 26.% (31.1%) 9.9% (12.7%) 4.4% 2.1% Small Precision Motors Other DC Motors Optical disk drives, OA equipment motors, 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 Motors 24 12

13 Consolidated FY1 FY Q 2Q 3Q 4Q 25 Consolidated FY1 FY Q 2Q 3Q 4Q 26 13

14 Consolidated Income Before Tax & Net Income 25 <Consolidated Income Before Tax> FY1 Consolidated Income Before Tax FY11 Consolidated Income Before Tax 25 <Consolidated Net Income> FY1 Consolidated Net Income FY11 Consolidated Net Income Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 27 Small Precision Motors FY1/1Q 2Q 3Q 4Q FY11/1Q HDD motors sales (LHS) Other DC motors sales (LHS) Fan motors sales (LHS) Other small motors sales (LHS) (RHS) 28 14

15 HDD Motors (: Billions of Yen) (Shipment Index: FY1/1Q=1) FY1/1Q 2Q 3Q 4Q FY11/1Q (LHS) Shipment Index (RHS) 29 Other DC Motors (: Billions of Yen) (Shipment Index: FY1/1Q=1) FY1/1Q 2Q 3Q 4Q FY11/1Q (Subsidiaries, LHS) (Parent, LHS) Shipment Index (Parent, RHS) 3 15

16 Fan Motors (: Billions of Yen) (Shipment Index: FY1/1Q=1) FY1/1Q 2Q 3Q 4Q FY11/1Q (Subsidiaries, LHS) (Parent, LHS) Shipment Index (Parent, RHS) 31 General Motors FY1/1Q 2Q 3Q 4Q FY11/1Q Nidec sales (LHS) Nidec Sole Motor sales (LHS) * NMA sales (LHS) Nidec Techno Motor Holdings sales (LHS) Nidec Motor sales (LHS) (RHS) * Nidec Sole Motor Corporation became a subsidiary of a single intermediate holding company, Nidec Motor Holdings Corporation, in April

17 Machinery FY1/1Q 2Q 3Q 4Q FY11/1Q Nidec Sankyo sales (LHS) Nidec-Shimpo & Read sales (LHS) Nidec-Kyori sales (LHS) Nidec Copal sales (LHS) Nidec Tosok sales (LHS) Other Subsidiaries sales (LHS) (RHS) 33 Electronic & Optical Components FY1/1Q 2Q 3Q 4Q FY11/1Q Nidec Sankyo sales (LHS) Nidec Copal Electronics sales (LHS) Nidec Copal sales (LHS) (RHS) 34 17

18 Others FY1/1Q 2Q 3Q 4Q FY11/1Q Nidec Tosok sales (LHS) Nidec & Other Subsidiaries sales (LHS) (RHS) 35 18