Nidec Corporation TSE: 6594 OTC US: NJDCY http://www.nidec.com/en-global/ Fiscal First-Half 217 Financial Results Six Months Ended September 3, 217 <IFRS> October 25, 217 Disclaimer Regarding Forward-looking Statements These 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 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. The first slide features E-Axle, a traction motor system that includes a traction motor, gear box and inverter. Nidec newly developed this traction motor system for electric and plug-in hybrid electric vehicles. 2
Consolidated Profit/Loss Millions of Yen, except for EPS, dividends and FX rates 1H/FY216 1H/FY217 Change FY217 Forecast Net sales 564,3 715,89 +26.9% 1,45, Operating profit 68,985 82,612 +19.8% 17, Operating profit ratio 12.2% 11.5% - 11.7% Profit before income taxes 66,274 76,63 +15.6% 163, Profit attributable to owners of the parent 5,94 6,74 +19.9% 128, EPS (Yen) 168.89 22.9 +2.1% 432.32 Dividends (Yen) 4. 45. - 95. FX rate (Yen/US$) Average: Term end: 15.29 11.12 111.6 112.73 +5.5% +11.5% 15. (Assumed for 3Q onward) Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY217 is estimated to have an annualized impact of 8.8 billion yen and 1.7 billion yen on net sales, respectively, and 1.1 billion yen and.4 billion yen on operating profit, respectively. 3 Summary of 1H/FY217 Record-high first-half net sales, operating profit, profit before income taxes and profit attributable to owners of the parent First-half operating profit of Automotive, Appliance, Commercial and Industrial Products finally exceeded that of Small Precision Motors Record-high quarterly net sales, operating profit and profit attributable to owners of the parent Upward revision to FY217 forecasts Year-end dividend projection raised 4
Year-on-Year Changes (Six Months Ended September 3, 217) <Net Sales> +26.2 +11.7 +12.6 +2.8 -.5 715.9 564. 1H/FY16 <Operating Profit> Exchange rate +4.5 Small Precision Motors +1.3 Automotive, Appliance, Commercial and Industrial +8.6 Products +2.1 Machinery +.4 Electronic and Optical Components and Others -3.3 1H/FY17 69. 82.6 1H/FY16 Exchange rate Small Precision Motors Automotive, Appliance, Commercial and Industrial Products Machinery Electronic and Optical Components and Others Eliminations/ corporate 1H/FY17 5 Quarter-on-Quarter Changes (Three Months Ended September 3, 217) <Net Sales> +3.6 +13. +9.7 +2.4 +1.1 343.1 372.8 Q1/FY17 <Operating Profit> Exchange rate Small Precision Motors +3.1 Automotive, Appliance, Commercial and Industrial Products Machinery Electronic and Optical Components and Others +2.7 -.4 -.6 +.3 -.8 Q2/FY17 39. 43.6 Q1/FY17 Exchange rate Small Precision Motors Automotive, Appliance, Commercial and Industrial Products Machinery Electronic and Optical Components and Others Eliminations/ corporate Q2/FY17 6
Consolidated Quarterly Net Sales and Operating Profit (Net Sales in Billions of Yen) 45 Net sales (LHS) Operating profit (RHS) 45 (Operating Profit in Billions of Yen) 4 4 35 35 3 3 25 25 2 2 15 1 5 Lehman crisis Japan earthquake Thai floods Structural reform 15 1 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2-5 FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 US GAAP IFRS -25.4-5 7 Quarterly Results of Automotive, Appliance, Commercial and Industrial Products Key Growth Areas 25 Appliance, Commercial and Industrial Automotive 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY13 FY14 FY15 FY16 FY17 U.S. GAAP Key Growth Areas Appliance, Commercial and Industrial Automotive Sales IFRS Operating Profit Q2 Sales: 21.7 billion yen Key Growth Areas on a stable growth trajectory Q2 Operating profit: 21.2 billion yen (Operating profit ratio: 1.5%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY13 FY14 FY15 FY16 FY17 U.S. GAAP IFRS 8
Cash Flow Operating CF Investment CF Free CF 2 96.5 1 69.6 78. 61.7 33.4 41.9 1.4-36.1-34.8-59.3-1 -143.4 74.2-51.9 22.4 FY217 cash flow to emerge stronger from M&A-induced shortfall in 2H/216 to bolster future growth driven by continued CCC* improvement -2-176.7 1H/215 2H/215 1H/216 2H/216 1H/217 * CCC: Cash Conversion Cycle 9 CAPEX, Depreciation, R&D CAPEX Depreciation R&D 12 1. (Full-Year Forecast) 68.7 6. 6. 59.7 (Full-Year Forecast) (Full-Year Forecast) 52.8 41.8 32.8 (1H Actual) 26.8 (1H Actual) (1H Actual) Continuing aggressive investments that support organic growth FY16 FY17 FY16 FY17 FY16 FY17 1
Revision to FY217 Forecast Millions of Yen, except for percentages, EPS, dividends and FX rates <Previous Forecast (July 26, 217)> 1H/FY217 Forecast Full-Year Forecast Net sales 65, 1,375, Operating profit 8, 165, Operating Profit Ratio 12.3% 12.% Profit before income taxes 77, 161, Profit attributable to owners of the parent 6, 127, EPS (Yen) 22.65 428.94 Dividends (Yen) 45. 9. FX Rate (Yen/US$) FX Rate (Yen/ ) 15 15 (Assumed for Q2 onward) 11 (Assumed for Q2 onward) 11 1H/FY217 Results <Revised> Full-Year Forecast 715,89 1,45, 82,612 17, 11.5% 11.7% 76,63 163, 6,74 128, 22.9 432.32 45. 95. 111.6 126.29 (Average) (Assumed for 3Q onward) 15 11 11 Mid-Term Strategic Goal Vision22 This section includes forward-looking statements. See Disclaimer on Page 2. 12
Vision22: Mid-Term Strategic Goal Continuous pursuit of profit & strong growth 1. Target for consolidated net sales: 2 trillion yen (including sales attributable to new M&A of approx. 5 billion yen) 2. Sales target for automotive: 7 billion to 1 trillion yen 3. Target for consolidated operating profit ratio: 15% 4. Target for ROE: 18% (Assuming shareholders equity ratio of 6%) 5. Five regional HQ management units 13 Three 6 Billion Yen Businesses Are Key to Achieving 2 Trillion Yen Net Sales FY21 Net sales: 676 billion yen FY216 Net sales: 1.199 trillion yen FY22 Net sales: 2 trillion yen (target) (Sales: Billions of Yen) Small Precision Motors Automotive Appliance, Commercial and Industrial Products Other Product Groups 1 T New M&A 437.1 6. <Organic growth> (Target) 6. <Organic growth> (Target) 6. <Organic growth> (Target) 348.4 Key Growth Areas 69.2 94.2 164.2 261.1 31.9 Key Growth Areas 19.1 Key Growth Areas 2. <Organic growth> (Target) 14
Vision22: Aiming for 15% Operating Profit Ratio (1) (Net Sales in Trillions of Yen) 2.5 2 1.5 1.5 571.6 B 13.9% 676. B 13.7% 1.7% 682.3 B 79.3 B 875.1 B 2.5% 9.7% 1.8% 1.3 T 1.% 1.18 T 11.6% 1.2 T 11.7% 1.45 T (Operating Profit Ratio, %) 15% 15 2 T 1 5 The main focus shifts to profit structure reform with stronger prospects for solid topline growth FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY2 (Forecast) (Target) US GAAP IFRS 15 Vision22: Aiming for 15% Operating Profit Ratio (2) Profit ratio (%) 4% 3% 2% 1% % Gross profit ratio Operating profit ratio 22.9% 23.5% 23.8% 22.8% 19.3% Gross profit ratio over 31% 24.5% Operating profit ratio over 15% 11.6% 11.7% 1.8% 9.7% 1.% 2.5% FY12 FY13 FY14 FY15 FY16 FY17 FY2 (Forecast) (Target) Aiming for substantial improvement of gross profit ratio <Main measures> 1. Cost reduction in outsourced materials and components 2. Cost reduction in direct labor US GAAP IFRS 16
Small Precision Motors: HDD Market Mid-Term Trend (Millions of Units) 6 5 4 3 2 1 552 564 32 35 73 1 122 289 32 37 124 271 PC External Consumer Electronics Data Center Enterprise (Near Line Drive) 469 33 37 9 12 27 424 25 43 84 1 172 '13 '14 '15 '16 '17 '18 '19 '2 (CY) 395 22 42 8 1 151 Nidec s estimates based on various sources. 371 19 46 8 1 126 Server Application 35 16 5 8 1 14 333 14 55 8 1 84 Revised downward from previous estimate (Millions of Units) <Previous> <Revised> (April 26, 217) CY17 412 395 CY18 394 371 CY19 382 35 CY2 375 333 17 Small Precision Motors: HDD Market Short-Term Trend HDD Shipments Nidec Motor Shipments (Millions of Units) 96 Previous FY217 Forecast (July 26, 217) 12 99 98 96 Revised FY217 Forecast (October 25, 217) 13 98 91 Revised forecast for FY217 HDD shipments (Millions of Units) FY217 Annual forecast Previous forecast Revised forecast 82 82 84 83 82 89 83 77 HDD shipments 395 388 Nidec motor shipments 331 331 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Actual) (Forecast) (Forecast) (Forecast) (Actual) (Actual) (Forecast) (Forecast) Nidec s estimates based on various sources. 18
Automotive: Global EV Shift Accelerating Some of the leading countries are set to ban sale of new gasoline/diesel cars India France T U.K. From 23 From 24 From 24 <Examples of moves by OEMs> V G V D All vehicles launched from 219 to be EV or HV. 22 launch of EV mass production in consideration. China A proposed regulation obliges OEMs to make 1% of their new cars sold in China New Energy Vehicle from 219. Over 2 models of EV and FCV to be released by 223. Over 5 new EV models to be brought to market by 225. Target annual shipment is 3 million units. Introducing EV or HV in all models by 222. Zero emission is the key to both solving global warming and controlling air quality. OEMs are accelerating its adoption of EV technologies. 19 Automotive: Expansion of Automotive Motor Market Innovations and regulations accelerating automotive electrification <Anticipated growth in automotive motors> Air flow (6 billion yen) Powertrain 216 Chassis (1.5 trillion yen) 2.8 trillion (2 billion yen) yen Body (5 billion yen) Air flow (8 billion Chassis yen) (4 billion yen) Body (9 billion yen) 23 6 trillion yen Powertrain (3.9 trillion yen) Automotive motor market is expected to more than double by 23, with acceleration in electrification Nidec s estimates based on various sources. 2
Automotive: Shipment Outlook for Automotive Motors (Key Applications) Orders building up steadily. Shipments expected to more than double in next four years. <Shipment outlook as of October 216> <Shipment outlook as of October 217> (Million Units) (Million Units) 12 Braking system 12 1 Sunroof Seat adjustment Engine cooling Oil pump *EPS: Electric Power Steering 1 8 Dual clutch EPS * 8 6 6 4 4 2 2 FY16 FY17 FY18 FY19 FY2 FY16 FY17 FY18 FY19 FY2 21 Automotive: Strategy for Traction Related Products Inquiries from OEMs / Tier 1s in China and Europe increasing Entry plan for traction related products 1 st Step 2 nd Step Target: OEMs in emerging markets E-Axle Target: Mega Tier 1s Motors, inverters and gears 3 rd Step Target: OEMs E-Axle <Sales Target of Traction Related Products> 1, 1 8 6 4 2 Traction Motor System (E-Axle) FY17 FY18 FY19 FY2 FY21 FY22 FY23 FY24 FY25 22
Appliance, Commercial and Industrial (ACI): Nidec Techno Motor in Full Utilization Responding to a surge in demand for brushless DC motors in China triggered by heightened efficiency standards for air conditioners 25 2 <Quarterly Net Sales of Nidec Techno Motor> Historical peak levels Expected to maintain the highest levels throughout the year Capacity constraints 15 1 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Forecast) (Forecast) FY14 FY15 FY16 FY17 23 ACI: Recently Acquired Businesses from Emerson (LS & CT) Stable order flow sustained and PMI accelerated since the completion of acquisition Nidec Leroy-Somer (LS), Power generator business Nidec Leroy-Somer (LS), Motor & Drive business Nidec Control Techniques (CT) Sales by application or product type Gridconnected 17% Nonstationary 12% Off-grid remote power plants 18% Off-grid standby 53% Others 4% Service 8% Drives 5% Servo motors 11% Perm. magnet motors 6% Inverter-fed induction motors 21% Induction motors 44% Wind power generator 19% Elevators 13% Process automation 24% Factory automa tion 44% Major customers (Excerpts from reference presentation material Acquisition of the Emerson Electric Co. s Motor & Drives and Electric Power Generation Business dated August 2, 216) 24
Machinery: Nidec-Shimpo s Growth Strategy Promoting synergies and driving fast topline growth through a series of acquisitions Past acquisitions April 212 August 215 March 217 1 8 Strong sales & service network in Americas and Europe. Medium- to large-sized highspeed and high-rigidity press machine line-ups. <Nidec-Shimpo s net sales> High-precision extra-large transfer presses, presses for progressive dies, and servo presses (press capacity 25-2,5 tons). Strong customer base consisting of European auto component manufacturers. Shimpo's products (excluding new products) New products Press machines Capacity constraints Servo feeding equipment with the highest speed and precision. Press machines 1. Net sales 6 4 2 New products FY14 FY15 FY16 FY17 FY18 FY19 FY2 (Forecast) (Target) (Target) (Target) 25 Strategy for Factory Automation (FA) and Robotics Price declines triggered by intense competition expand the compact robot market (payload: up to 1kg) 217 218 219 22 22 onward Nidec s action plan Applying FA/IoT to own factories FA solution Commercializing robot modules Japan, Asia Americas and Europe, etc. Project A Project B Project C Start marketing Roll out i611 robot arm module for newly entering robot manufacturers i611 Robot arm < Nidec s outlook for global robot market size, unit price and usage > Shipments Unit price (red line) 2 mil. 1 mil. (Nidec s estimates) Unit price Existing robot manufacturers F, M, Y A K and others Industrial Home appliance Logistics, food and service 4 mil. units 2 mil. units Shipments 2 21 Now 22 23 235 (CY) 26
Large Scale Investment in Hanoi, Vietnam (Hoa Lac Hi-tech Park) Launching new factories successively to overcome capacity constraints on the back of continued firm demand Company Expected products FY17 FY18 FY19 FY2 Group 1 Nidec Techno Motor Nidec-Shimpo Brushless DC motors for airconditioners ABLE reducers Incorporation Land development Incorporation Land development Factory construction Preparation for production Factory construction Preparation for production Start of mass production Start of mass production Nidec-Read Jigs for testing equipment Feasibility study (Investment schedule under consideration) Group 2 Nidec Elesys Nidec Copal Electronics Next generation ABS* for motorbikes Trimmers, switches, etc. Feasibility study Feasibility study Investment expected in FY22 (mass production starts in FY222) (Investment schedule under consideration) Nidec-Shimpo Phase 2 (25ha) Nidec Techno Motor Vietnam s Prime Minister Nguyen Xuan Phuc visited Nidec in June 217. Phase 1 (25ha) Conceptual drawing *ABS: Anti-lock Braking System Conceptual drawing 27 Nidec Center for Industrial Science -Driving R&D activities aimed for forward-looking development and profit contribution -Creating Advanced Production System <Three R&D activities> <Advanced Production System (concept)> 1. Mid- to long-term research catering to future demand 2. Support forward-looking development activities group wide 3. Support short-term profit enhancement New businesses Coordination technologies AI (artificial intelligence) Assembly inspection technologies Robotics Leading elemental technologies Large triplelayered atrium Large atrium Pilot production lines Unmanned factory-flexible production lines Processing pilot production lines, Precision inspection equipment First section (completion of construction scheduled for January 218) 28
M&A Tokyo Maruzen Industry Co., Ltd. Company Name Tokyo Maruzen Industry Co., Ltd. Headquarters Chiba, Japan Foundation August 17, 217 (succeeding company) Principal Business Development, manufacture, and sale of electric contact materials, contact rivets, and contact staking Net sales 3,745 million (fiscal year ended March 31, 217) Ownership Nidec Sankyo Corporation: 1% Company C (4%) <Expansion of Market Share> Others (13%) Company Name SV Probe Pte. Ltd. SV Probe Pte. Ltd. Headquarters Serangoon, Singapore Foundation 1994 Principal Business Manufacturing and sale of probe cards Net sales S$74.9 million (fiscal year ended June 3, 217) Closing Scheduled for the end of October 217 4 3 <Nidec-Read s Net Sales Outlook> 35. M&A driven Tokyo Maruzen Industry Co., Ltd. (8%) + Nidec Sankyo CMI Corporation (25%) Company T (5%) 2 1 Organic FY16 FY17 FY18 FY19 FY2 Nidec s estimates based on (Forecast) (Target) (Target) (Target) various sources. 29 CSR Vision 22 E (Environment) S (Society) G (Governance) Women s leadership: certification of Eruboshi & return-to-work program for employees in child rearing Priority issues Target KPI Environmental load reduction Environmental contribution through products Environmental conservation Diversity Globally competent talents Corporate ethics Internal control Risk management Consistent reduction in energy consumptions and environmental emissions attributable to operations Quantitative assessment of productspecific environmental performance Active participation in local environmental conservation efforts A diverse workforce and leadership Training programs in place on a groupwide basis Code of Conduct aligned with internationally accepted standards Consistent management soundness and transparency Highly viable risk management procedures implemented on a global basis 5% reduction (intensity) from FY215 benchmark Overall framework in place for measuring total CO 2 emissions reduced per year Specific action program in place at each business unit Specific action program in place at each business unit (Percentages of women in managerial positions: 8% for Nidec Corporation in Japan) <Two-stars (middle-rank) Eruboshi certification> Eruboshi certification is granted by the Minister of Health, Labour and Welfare Number of program participants or based on the following five criteria: workshops held 1) Employment 2) Employment continuity EICC*-based CSR management system 3) Workstyle including worktime covering 8% of operations worldwide 4) Percentage of women s management positions Strict compliance with internationally accepted corporate governance 5) Diverse career paths guidelines Middle-rank status was granted for the following reasons: Global risk management system adopted -fulfillment 4 out of 5 above requirements by all operations -performance boost in recent years in as-yet unmet criterion *EICC: Electronics Industry Code of Conduct 3
Nidec IR Contacts Japan Tel: +81-75-935-614 E-mail: ir@nidec.com U.K. Tel: +44-27-716-5884 E-mail: iwai.yuji@nidec.com U.S. Tel: +1-212-73-7988 E-mail: nagase.kiyoshi@nidec.com *Note: During the three months ended September 3, 217, Nidec Corporation partly completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of motors, drives and electric power generation businesses of Emerson Electric Co. (currently Nidec Leroy-Somer Holding, Nidec Control Techniques Limited, etc.) As a result, consolidated financial statements for the three months and the year ended March 31, 217 reflect the revision of the initially allocated amounts of acquisition price. 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. 31 Appendix Performance Trends & Product Group Overview 32
Sales by Product Group (Apr-Sep FY217) Electronic & Optical Components Camera shutters, switches, trimmer potentiometers, processing, precision plastic mold products Machinery Industrial robots, circuit board testers, high-speed pressing machines, chip mounters, measuring equipment, power transmission equipment, factory automation system, card readers Automotive, Appliance, Commercial and Industrial Products Others 54.6% (47.1%) 9.5% (9.6%) Appliance Commercial Industrial 34.9% (25.1%) 4.9% (5.5%) Parenthetic percentages represent FY216 mix.3% (.3%) Services, music box products 715.9B HDD Motors 13.1% (16.%) Auto 19.6% (22.%) 17.7% (21.5%) Small Precision Motors 3.8% (37.5%) 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 33 Financial Highlights *Please refer to Notes on page 31. <Consolidated Net Sales and Operating Profit> Net sales Operating profit Operating profit ratio (%) 372.8 331.1 343.1 34.2 43.6 276.2 287.8 37.5 37.2 33.2 39. 31.5 11.7% 13.% 11.4% 12.2% 11.4% 1.% 29.1 <Profit Before Income Taxes and Profit Attributable to Owners of the Parent> Profit before income taxes Profit attributable to owners of the parent 41.5 37.2 33.6 31.5 28.1 22. 4.3 36.3 31.9 29.4 28.2 Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 <Dividends and EPS> (Yen/share) Year-end Interim Consolidated EPS Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 <Consolidated Cash Flow> Operating activities Investment activities Free cash flow 33 4. 45. 374 432 (Forecast) 5. (Forecast) 44.2 25.3 3. -2.9 4. 4. 45. -18.9-32.9 FY15 FY16 FY17 Q1/FY17 Q2/FY17 34
Product Group Overview <Small Precision Motors> Sales Operating profit <Automotive, Appliance, Commercial and Industrial products> *Please refer to Notes on page 31. Sales Operating profit 94.8 13.7 19.2 19.2 116.9 119.2 15.8 16.2 13.8 16.9 116.7 19.2 21.2 17.4 13.8 14.2 14.2 15. 171.4 188.9 21.7 138.3 127.4 135.1 Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 <Machinery> Sales Operating profit 4.9 5.3 5.6 6. 6.3 6.3 32.7 35.7 32.6 35.3 27.1 26.7 Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 <Electronic and Optical Components> Sales Operating profit 2.8 2.9 3.1 2.5 2.1 2.1 15.2 15.9 16.3 16.8 16.9 18.1 Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 Q1/FY16 Q2 Q3 Q4 Q1/FY17 Q2 35 Vision 22: Pursuing Both Strong Growth with Profit and Financial Soundness Targeting operating profit ratio of 15% and ROE of 18% while sustaining and improving financial soundness Shareholders equity (LHS) ROE (RHS) (%) Shareholders equity ratio (RHS) Operating profit ratio (RHS) 1,5 65% 6% 6% 54.9% 55.4% 1,2 55% 5.5% 49.1% 47.5% 46.2% 5% 44.4% 9 42.3% 41.3% 846.6 45% 745. 763. Shareholders equity ratio The three elements for ROE improvement Net profit on sales Total asset turnover Financial leverage 6 3 Operating profit ratio ROE 16.3% 15.% 11.2% 415.7 18% 518. 13.8% 12.1% 12.% 11.9% 9.2% 13.9% 13.7% 15% 34.3 355.3 1.7% 2.5% 1.8% 11.6% 8.9% 9.7% 1.% 37.2 297.1 2.% FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 FY2 (Target) US GAAP IFRS 2% 15% 1% 5% % *Please refer to Notes on page 31. 36