TSE: 6594 OTC US: NJDCY https://www.nidec.com/en/

Nidec Corporation

Third Quarter Fiscal 2019 Results

Three and Nine Months Ended December 31, 2019

January 23, 2020

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 photo on the cover is a motion control product of Roboteq, a company acquired by Nidec Motor Corporation

2

Consolidated Profit/Loss

Millions of Yen, except

Q3/FY2018

Q3/FY2019

Change

FY2019

for percentages, EPS

(Apr-Dec)

(Apr-Dec)

Forecast

and FX rates

Net sales

1,122,413

1,159,608

+3.3%

1,550,000

Operating profit

124,522

94,754

-23.9%

140,000

Operating profit ratio

11.1%

8.2%

-

9.0%

Profit before

126,223

94,600

-25.1%

140,000

income taxes

Profit for the period

from continuing

99,370

71,044

-28.5%

-

operations

Profit attributable to

102,842

50,507

-50.9%

85,000

owners of the parent

EPS (Yen)

348.64

171.62

-50.8%

288.83

FX rate (Yen/US$)

Assumed for Q4:

Average:

111.14

108.67

-2.2%

Yen/US$: 105

Term end:

111.00

109.56

-1.3%

Yen/Euro: 125

Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and t he euro for FY2019 is estimated to have

an annualized impact of 9.0 billion yen and 1.7 billion yen on net sales, respectively, and 1.1 billion yen and 0.4 billion yen on operating profit, respectively.

3

This slide includes forward-looking statements. See Disclaimer on Page 2. *Please refer to Notes on Page 19.

Summary of Q3/FY2019

  • Nine months net sales stood at record high 1,159.6 billion yen, 3% higher Y/Y.
  • Q3 three months net sales stood at record high 408.3 billion yen, 5% higher Q/Q.
  • Nine months operating profit stood at 94.8 billion yen, 24% lower Y/Y, due to the additional R&D and start-up costs (approx. 12 billion yen) of traction motors which are in high demand, and to the additional acquisition related expenses (approx. 3 billion yen) .
  • The annual guidance has been revised down.

4

Year-on-Year Changes (Nine Months Ended Dec. 2019)

(Billions of Yen)

+56.7

+28.0

-7.1

-8.8

+1.1

1,122.4

-32.8

1,159.6

Apr-Dec/FY18

Exchange

Small Precision

Automotive

Appliance,

Machinery

Electronic

Apr-Dec/FY19

Rate

Motors

Products

Commercial

and Optical

and Industrial

Components

(Billions of Yen)

Products

and Others

+5.5

-7.9

-7.0

+2.0

-10.9

-3.1

-3.6

-4.8

124.5

94.8

Apr-Dec/FY18

Exchange

Structural

Small Precision

Automotive

Appliance,

Machinery

Electronic

Eliminations/ Apr-Dec/FY19

Rate

Reform

Motors

Products

Commercial

and Optical

Corporate

Expenses

and Industrial

Components

*Please refer to Notes on Page 19. 5

Products

and Others

Quarter-on-Quarter Changes (Three Months Ended Dec. 2019)

(Billions of Yen)

+16.3

+4.8

+1.7

-2.7

-1.0

-1.2

408.3

390.4

Jul-Sep/FY19

Exchange

Small Precision

Automotive

Appliance,

Machinery

Electronic

Oct-Dec/FY19

Rate

Motors

Products

Commercial

and Optical

and Industrial

Components

Products

and Others

(Billions of Yen)

+1.9

+0.3

+0.5

+0.1

+0.0

+0.1

-1.2

-3.3

34.4

32.7

Jul-Sep/FY19

Exchange

Structural

Small Precision

Automotive

Appliance,

Machinery

Electronic

Eliminations/ Oct-Dec/FY19

Reform

Commercial

and Optical

Corporate

Rate

Motors

Products

Expenses

and Industrial

Components

Products

and Others

*Please refer to Notes on Page 19.

6

Consolidated Quarterly Cash Flow

(billions of yen)

100

Operating CF

Investment CF

Free CF

58.4

50

44.7

51.6

41.2

41.1

32.7

32.7

0

-50

-100

-150

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

Operating CF remains strong

7

Downward Revision to FY2019 Forecast

Millions of Yen,

except for

April 23, 2019

October 23, 2019

percentages, EPS,

and FX rates

Net sales

1,650,000

1,650,000

Operating profit

175,000

150,000

Operating profit

10.6%

9.1%

ratio

Profit before

170,000

145,000

income taxes

Profit

attributable to

135,000

100,000

owners of the

parent

EPS (Yen)

456.14

339.80

FX Rate

105

105

(Yen/US$)

(Assumed for full-year

(Assumed for Q3 onward)

(1)

(2)

(1) - (2)

Revised forecast

Q3/FY2019

Q4/FY2019

(Accumulated from

(Jan.-Mar. 2020)

(January 23, 2020)

Apr. to Dec. 2019)

(Forecast)

1,550,000

1,159,608

390,392

140,000

94,754

45,246

9.0%

8.2%

11.6%

140,000

94,600

45,400

85,000

50,507

34,493

288.83

171.62

117.21

105

108.67

105

(Assumed for Q4)

(Actual average)

(Assumed for Q4)

This slide includes forward-looking statements. See Disclaimer on Page 2. 8

Mid-Term Strategic Goal

Vision2020

This section includes forward-looking statements. See Disclaimer on Page 2.

9

Vision2020: Mid-Term Strategic Goal (unchanged from April 2015)

Continuous pursuit of profit & strong growth

  1. Target for consolidated net sales: 2 trillion yen (including sales attributable to new M&A
    of approx. 500 billion yen)
  2. Sales target for Automotive: 700 billion to 1 trillion yen
  3. Target for consolidated operating profit ratio: 15%
  4. Target for ROE: 18%
    (assuming shareholders' equity ratio of 60%)
  5. Five regional HQ management units

This slide includes forward-looking statements. See Disclaimer on Page 2.

10

Small Precision Motor: Expansion in Sales of Thermal Solutions

New factory slated for construction in Vietnam to meet 5G-driven cooling demand

Auto

related

(Billions of Yen)

100

New sales

Communication/IT

Smart phone

Smart phone

80

Auto

related

Three folds

compared

60

to FY2020

40

Communication/

IT related

20

Two folds

compared

0

to FY2020

FY2018

FY2020

FY2022

(Target)

(Target)

This slide includes forward-looking statements. See Disclaimer on Page 2.

Auto electrification related

Heat solution in Auto such as heat control for batteries in EV

Expanding sales of heat transfer and heat dissipation products

Vapor chamber

Heat pipe

CPU / Communication base station / Gaming

Vapor chamber and heat pipe

Decided to build a new factory in Vietnam (Hanoi), in addition to existing one in China (Chongqing and Kunshan)

Hi-tech Park, Vietnam>

Production expected from April 2021

In operation

In operation11

Automotive: Electrification of Automotive Accelerates in Next 10 Years

Pure internal combustion engine vehicle production is expected to be cut back to half as electrification of automotive progresses and electric motor driven vehicles take over

(Millions of Units)

(%)

EV

ICE* Pure

We estimate that among electric vehicles, half (30 million) will be mild hybrids and rest are divided by EV/PHEV/HEV

(Nidec's estimates based on various sources.)

*ICE: Internal Combustion Engine

This slide includes forward-looking statements. See Disclaimer on Page 2.

12

Automotive: Strong Recent Shipment Growth of Nidec's E-Axel

The sales of Nidec's E-Axel embedded GAC Aion series rapidly increasing

despite market slowdown

Exceeding 33,000 units

(Units)

on an accumulated basis

E-Axle>

GAC NE's Aion S

(Source: MarkLines)

GAC NE's Aion LX

13

Automotive: Groupe PSA Starting the Operation of Production Lines for Electric Powertrains

PSA announces start of production at the Nidec-PSA joint venture Trémery plant in France

(press release dated 20 November)

The plant is expected to have a production capacity of 120,000 units in 2020, 180,000 in 2021, and

eventually aimed to have 900,000 annual production.

The EVs that PSA has released so far are the following 4 models: Peugeot e-208,e-2008, DS 3 Crossback E-

Tense, Opel Corsa-e.

(Source: Groupe PSA's press release) All Groupe PSA models will be available in an all-electricor plug-inhybrid version by 2025.

https://media.groupe-psa.com/en/tr%C3%A9mery-plant-france%E2%80%99s-grand-est-region-forefront-groupe-psa%E2%80%99s-energy-transition

14

This slide includes forward-looking statements. See Disclaimer on Page 2.

M&A Strategy (1): PMI* of Nidec Mobility Corporation in Steady Progress

Omron Automotive Electronics renamed and given fresh start as Nidec Mobility

Combining 4 product groups of Nidec Mobility with Nidec's automotive motors (drive/steer/stop) and Nidec Elesys's ADAS products

to create new businesses such as modularized products and system products

1. Active Safety

Driver monitoring sensor

3D-LiDAR

Traction motor

3. Power-supply Control

DC/DC converter for xEVs

DC/DC converter for start-stop system

*PMI: Post-Merger Integration

2. EPS

ISF*

Electric power steering unit

Next generation braking

system motor

4. Body Control

Electric power

steering motor

Body control module

Power window switch

Security entry products with anti-pinch

function

*ISF: Integrated Sensor Fusion

New company

NIDEC MOBILITY

name

CORPORATION

Headquarters

Komaki, Aichi, Japan

Member of the Board, Chairman

Shigenobu Nagamori

Principal directors

Member of the Board,

Representative Director,

President Katsuhiro Wada

Principal locations

Japan, China, Korea, US, Canada,

Brazil, Mexico, India, Thailand,

of operation

Germany, UK

Mr. Nagamori visits Nidec Mobility headquarters in Komaki in November 2019.

15

M&A Strategy (2): PMI for Embraco Making Steady Progress

Smooth and steady PMI for Embraco driven by Nidec Motor Corporation

since its acquisition in July 2019

New company

Nidec Global Appliance Compressores e

name

Soluções em Refrigeração Ltda.

Locations

Joinville, Brazil

Director Valter Taranzano

Principal directors

Director Marcio Luiz Schissatti

Director Jose Lainor Driessen

Director Adolpho Cyriaco Nunes de Souza Neto

Principal locations

Brazil, US, Mexico, Russia, Slovakia, Italy

of operation

Mr. Nagamori visits Nidec Global Appliance Compressores e

Soluções em Refrigeração in November 2019

16

M&A Strategy (3): Acquisition of Roboteq

Share transfer completed to acquire a 90% stake in U.S. Roboteq through Nidec Motor Corporation

New company

Roboteq, Inc.

name

Headquarters

Scottsdale, AZ, US

Foundation

2002

Founders

Cosma Pabouctsidis

Annibale Santoni

Principal

Design & Sales of Ultra Low Voltage Drives

business

Employees

20

US$ 7.1 million (fiscal year ended December 31, 2018)

Sales

US$ 9.4 million (estimated, fiscal year ended December

31, 2019)

Aiming to acquire technologies and products for Ultra Low Voltage drives for Automated Guided Products as well as its engineers

DC brushless / brushed / AC induction)

system>

17

Finance Strategy: Green Bonds Totaling 100 Billion Yen Issued

Use of Proceeds: Investment in R&D activities and capacity building associated with EV traction motors

Series

9th

10th

11th

Total amount of

JPY 50 billion

JPY 30 billion

JPY 20 billion

issue

Interest rate

0.020% per annum

0.090% per annum

0.150% per annum

Maturity

28 November 2022

28 November 2024

27 November 2026

Payment date

28 November 2019

Rating

AA- Rating and Investment Information, Inc.

Use of proceeds

Capital expenditure and R&D expense for the production

of traction motors for EVs

The company has obtained the Second Party Opinion

Eligibility of Green

for the criteria set forth by the International Capital Markets

Association (ICMA) in its "Green Bond Principles 2018 (GBP)

Bond Framework

and Japan's Green Bond Guidelines 2017 from Sustainalytics, a

leading international third-party verification provider

Green Bond

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Structuring Agent

This slide includes forward-looking statements. See Disclaimer on Page 2.

line-ups and development plans for the next generation>

April 2019

2023planned

Ni150 Ex Series (150kW/3900Nm)

Fully coupled

electromechanical model

2020 (planned)

Ni100 Ex Series (100kW/2400Nm)

2021 (planned)

Ni70 Ex Series (70kW/1600Nm)

2022 (planned)

Ni50 Ex Series (50kW/1600Nm)

2 new products

2023 (planned)

Ni200 Ex Series (200kW/4200Nm)

18

Nidec IR Contacts

Japan

Tel: +81-75-935-6140

E-mail: ir@nidec.com

U.K.

Tel: +44-207-716-5884

E-mail: iwai.yuji@nidec.com

U.S.

Tel: +1-212-703-7988

E-mail: nagase.kiyoshi@nidec.com

Notes:

Nidec Corporation adopts the provisions of IFRS 3 "Business Combinations."

During the three months ended September 30, 2019, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of Chaun-Choung Technology Corp., MS-Graessner GmbH & Co. KG, and its group companies in the previous fiscal year. Furthermore, during the three months ended December 31, 2019, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of Systeme + Steuerungen GmbH and its group companies (currently, Nidec SYS GmbH) in the previous fiscal year. NIDEC's consolidated financial statements for the year ended March 31, 2019 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

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. 19

Appendix

Performance Trends

&

Product Group Overview

20

Three 600 Billion Yen Businesses Are Key to Achieving 2 Trillion Yen Net Sales

FY2010

FY2018

FY2020

Net sales: 676 billion yen

Net sales: 1.475 trillion yen

Net sales: 2 trillion yen (target)

(Sales: Billions of Yen)

1 T

Small Precision Motors

Automotive

Appliance, Commercial and

Other Product Groups

Products

Industrial Products

New M&A

600.0

600.0

600.0

<>

495.4

growth>

growth>

growth>

441.5

(Target)

(Target)

(Target)

348.4

297.3

Key Growth Areas

200.0

Key Growth Areas

241.2

<>

164.2

growth>

(Target)

94.2

Key Growth Areas

69.2

This slide includes forward-looking statements. See Disclaimer on Page 2.

21

5G Communications: New Addition to Nidec's Future Growth Drivers

Biggest innovative waves Nidec has ever seen are coming in different areas

-automobiles, robots, home appliances, drones, etc.-

Automotive electrification, EV and PHEV

-From internal combustion engine to electric motor -Once-in-a-century technological revolution

Decarbonization

Next-gen technologies stemming from

5G communications

Hardware innovation coming with data rates 100 times faster

Expansion of robot applications

-Collaborative robots advance into food, logistics and service industries. -Rapid market growth

Robotization

Home appliances driven by brushless DC motors

-Cordless and high functionality

-Innovative evolution of home appliances

Data explosion

Manpower-saving

in agriculture & logistics

-Serious labor constraints

-Industry 4.0

Power saving

Automatization

22

Sales by Product Group (Apr-Dec FY2019)

*Please refer to Notes on Page 19.

Services, music box products

0.3%

Others

Parenthetic percentages represent FY2018 mix

(0.3%)

Electronic & Optical

Small Precision Motors

Components

3.9%

Camera shutters, switches, trimmer

(5.0%)

28.9%

(30.6%)

potentiometers, processing, precision plastic

mold products

9.9%

HDD Motors

(11.1%)

Other Small Motors

10.1%

Machinery

Optical disk drive motors,

(12.7%)

OA equipment motors,

Industrial robots, circuit board

18.8%

polygon scanners motors, MPU

cooling fans, game machine fans,

testers, high-speed pressing machines,

(17.9%)

PC/communications equipment fans,

chip mounters, measuring equipment,

1.1596T

home appliance fans,

power transmission equipment,

automobile fans, vibration motors,

factory automation system, card

brushed motors, stepping motors,

readers

36.0%

actuator units

(33.0%)

21.0%

(19.9%)

Appliance,

Commercial and

Automotive

Industrial Products

Products

23

Consolidated Quarterly Net Sales and Operating Profit

Continuing WPR3 cost restructuring and preparing for demand recovery

(Net Sales in

(Operating Profit in

Billions of Yen)

Billions of Yen)

WPR3

WPR1WPR2

Earthquake

Disaster

Lehman Crisis

Thai

Floods

-25.4

Structural Reform

24

Financial Highlights

*Please refer to Notes on Page 19.

(Billions of Yen)

(Billions of Yen)

Net sales

Operating profit

Operating profit ratio (%)

Profit before income taxes

Profit attributable to owners of the parent

372.2

383.2 50.5

390.4

408.3

49.9

367.0

360.9

45.9

353.0

41.1

45.7

37.3

13.2%

34.4

32.7

30.5

31.0

32.6

31.0

12.3%

28.4

27.7

24.1

24.4

23.0

7.7%

8.8%

8.0%

7.7%

1.5%

5.4

4.3

7.6

3.3

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

(Yen/share)

(Billions of Yen)

Year-end

Interim

Consolidated EPS

Operating activities

Investment activities

Free cash flow

132.2

137.5

442

55.0

60.0

(Forecast)

18.9

50.0

374

289

(Forecast)

-118.6

-169.4

45.0

50.0

55.0

-301.7

FY17

FY18

FY19

Apr-Dec/FY18

Apr-Dec/FY19

25

Product Group Overview

*Please refer to Notes on Page 19.

(Billions of Yen)

(Billions of Yen)

Sales

Operating profit

Sales

Operating profit

20.6

16.5

14.9

14.5

15.5

98.2

10.5

122.6

114.3

111.8

115.1

106.3

2.6

108.0

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

10.9

12.0

5.7

73.5

6.8

6.8

92.2

74.7

4.3

77.2

75.3

75.5

71.9

5.3

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

<Appliance, Commercial and Industrial Products>

(Billions of Yen)

Sales

Operating profit

13.2

13.1

10.1

8.7

120.9

8.7

147.6

147.0

127.0

123.0

124.6

123.0

4.8

3.0

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

(Billions of Yen)

Sales

Operating profit

8.2

7.7

5.5

5.4

6.0

6.1

1.6

42.6

42.8

39.5

39.0

38.1

38.9

38.2

Q1/FY18

Q2

Q3

Q4

Q1/FY19

Q2

Q3

26

*Please refer to Notes on Page 19.

Vision2020 : 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

(Billions of Yen)

Shareholders' equity (LHS)

(%)

1,500

65%

Shareholders' equity ratio (RHS)

60.0%

ROE (RHS)

54.9%

55.4%

60%

Operating profit ratio (RHS)

1200.0

1,200

52.6%

53.0%

55%

50.4%

49.1%

47.5%

997.2

50%

46.2%

932.5

44.4%

900

846.6

42.3%

41.3%

45%

763.0

745.0

Shareholders' equity ratio

600

518.0

18.0%

20%

16.3%

15.0%

14.7%

ROE

13.8%

415.7

12.1%

12.0%

11.2%

11.9%

11.4%

15%

9.2%

15.0%

300

13.9%

13.7%

11.6%

11.4%

10%

340.3

355.3

10.7%

2.5%

9.7%

10.8%

10.0%

8.9%

8.8%

Operating profit ratio

370.2

297.1

5%

2.0%

0

0%

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY20

(Target)

US GAAP

IFRS

This slide includes forward-looking statements. See Disclaimer on Page 2.

The three elements for

ROE improvement

  • Net profit on sales
  • Total asset turnover
  • Financial leverage

27

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Nidec Corporation published this content on 23 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 January 2020 08:33:06 UTC