FOR IMMEDIATE RELEASE
Contact:
Masahiro Nagayasu General Manager Investor Relations
+81-75-935-6140
ir@nidec.com
UNAUDITED INTERIM FINANCIAL STATEMENTS (IFRS)
(English Translation) RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 FROM APRIL 1, 2017 TO SEPTEMBER 30, 2017 CONSOLIDATEDReleased on October 24, 2017
NIDEC CORPORATIONStock Listings: Tokyo Stock Exchange
Head Office: Kyoto, Japan
Date of Filing of Japanese Quarterly Report (Plan): November 13, 2017
Selected Consolidated Financial Performance Information for the Six Months Ended September 30, 2017 (IFRS) (unaudited)
Consolidated Results of Operations
(Yen in millions)
Six months ended September 30
2016
2017
Net sales
Ratio of change from the same period of previous fiscal year
564,030
(4.0)%
715,890
26.9%
Operating profit Ratio of change from the same period of previous fiscal year
68,985
15.7%
82,612
19.8%
Profit before income taxes
Ratio of change from the same period of previous fiscal year
66,274
6.6%
76,630
15.6%
Profit attributable to owners of the parent Ratio of change from the same period of previous fiscal year
50,094
6.9%
60,074
19.9%
Comprehensive income for the period
Ratio of change from the same period of previous fiscal year
(26,001)
-
89,674
-
(Yen)
Six months ended September 30
2016
2017
Earnings per share attributable to owners of the parent - Basic
168.89
202.90
Earnings per share attributable to owners of the parent - Diluted
-
-
Consolidated Financial Position
(Yen in millions)
March 31, 2017
September 30, 2017
Total assets
1,676,106
1,772,631
Total equity
855,837
926,984
Total equity attributable to owners of the parent
846,603
917,434
Ratio of total equity attributable to owners of the parent to total assets
50.5%
51.8%
Dividends (unaudited)
(Yen)
Year ended March 31, 2017 (actual)
Year ending March 31, 2018
Interim dividend per share
40.00
45.00 (actual)
Year-end dividend per share
45.00
50.00 (target)
Annual dividend per share
85.00
95.00 (target)
(Note) Revision of previously announced dividend targets during this reporting period: Yes
Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2018)
(Yen in millions)
Year ending March 31, 2018
Net sales
1,450,000
Operating profit
170,000
Profit before income taxes
163,000
Profit attributable to owners of the parent
128,000
Earnings per share attributable to owners of the parent - Basic (Yen)
432.32
(Note) Revision of the previously announced financial performance forecast during this reporting period: Yes
Others
Changes in significant subsidiaries (changes in "specified subsidiaries" (tokutei kogaisha) accompanying changes in the scope of consolidation) during this period:
None
Changes in accounting policies:
Changes due to revisions to accounting standards: None
Changes due to other reasons: None
Changes in accounting estimates: None
Number of shares issued (common stock)
Number of shares issued at the end of each period (including treasury stock): 298,142,234 shares at March 31, 2017
298,142,234 shares at September 30, 2017
Number of treasury stock at the end of each period: 1,544,634 shares at March 31, 2017
2,066,518 shares at September 30, 2017
Weighted-average number of shares issued at the beginning and end of each period: 296,600,339 shares for the six months ended September 30, 2016
296,076,556 shares for the six months ended September 30, 2017
NIDEC (Nidec Corporation and its consolidated subsidiaries) finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017. Condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
Investor presentation materials relating to our financial results for the six months ended September 30, 2017 are expected to be published on our corporate website on October 25, 2017.
1. Operating and Financial Review and ProspectsAnalysis of Operating Results
Overview of Business Environment for the Six Months Ended September 30, 2017
In the global economy during the six months ended September 30, 2017, the U.S. economy continued to expand moderately, and the country's Federal Reserve Board (FRB) decided to start reducing its assets, and embarked on a complete lifting of its quantitative easing policy. In the meantime, with the European economy on a recovery track, discussion started within the European Central Bank (ECB) on monetary easing and reduction. As the Japanese economy continued its moderate recovery, the Chinese economy grew more strongly than anticipated as well, making the basic interest rate likely to be raised by the end of this year.
It was under such an environment that NIDEC (Nidec Corporation and its consolidated subsidiaries) continued to pursue our targets for the fiscal year ending March 31, 2021 of consolidated net sales of ¥2 trillion and an operating profit ratio of 15% based on our mid-term strategic goal, "Vision 2020," and achieved in the six months ended September 30, 2017 the highest net sales, operating profit, profit before income taxes and profit attributable to owners of the parent for the period in our history.
Consolidated Operating Results
Consolidated Operating Results for the Six Months Ended September 30, 2017 ("this six-month period"), Compared to the Six Months Ended September 30, 2016 ("the same period of the prior year")
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales
564,030
715,890
151,860
26.9%
Operating profit
68,985
82,612
13,627
19.8%
Operating profit ratio
12.2%
11.5%
-
-
Profit before income taxes
66,274
76,630
10,356
15.6%
Profit attributable to owners of the parent
50,094
60,074
9,980
19.9%
Consolidated net sales increased 26.9% to ¥715,890 million for this six-month period compared to the same period of the prior year, recording the highest interim net sales in our history. Operating profit increased 19.8% to ¥82,612 million for this six-month period compared to the same period of the prior year, also recording the highest interim operating profit in our history. The average exchange rate between the Japanese yen and the U.S. dollar for this
six-month period was ¥111.06 to the U.S. dollar, which reflected an approximate 5% depreciation of the Japanese yen against the U.S. dollar, compared to the same period of the prior year. The average exchange rate between the Japanese yen and the Euro for this six-month period was ¥126.29 to the Euro, which reflected an approximate 7% depreciation of the Japanese yen against the Euro, compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales approximately
¥26,200 million and our operating profit approximately ¥4,500 million for this six-month period compared to the same period of the prior year.
Profit before income taxes increased 15.6% to ¥76,630 million for this six-month period compared to the same period of the prior year and profit attributable to owners of the parent increased 19.9% to ¥60,074 million for this six-month period compared to the same period of the prior year, achieving the highest interim profit in our history, respectively.
NIDEC finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017. NIDEC's condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
Operating Results by Product Category for this six-month period Compared to the same period of the prior year
Small precision motors
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of small precision motors
211,716
220,474
8,758
4.1%
Hard disk drives spindle motors
90,366
93,722
3,356
3.7%
Other small precision motors
121,350
126,752
5,402
4.5%
Operating profit of small precision motors
32,967
36,142
3,175
9.6%
Operating profit ratio
15.6%
16.4%
-
-
Net sales of small precision motors increased 4.1% to ¥220,474 million for this
six-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors approximately ¥9,200 million for this six-month period compared to the same period of the prior year.
Net sales of spindle motors for hard disk drives, or HDDs, for this six-month period increased 3.7% to ¥93,722 million compared to the same period of the prior year. Although the number of units sold of spindle motors for HDDs decreased approximately 5% compared to the same period of the prior year, there were increases in sales due to a positive effect of the foreign currency exchange rate fluctuations.
Net sales of other small precision motors for this six-month period increased 4.5% to
¥126,752 million compared to the same period of the prior year. This increase was mainly due to an increase in sales of brushless DC motors and fan motors.
Operating profit of small precision motors increased 9.6% to ¥36,142 million for this six-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of small precision motors approximately ¥1,900 million for this six-month period compared to the same period of the prior year.
Automotive, appliance, commercial and industrial products
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of automotive, appliance, commercial and industrial products
265,645
390,572
124,927
47.0%
Appliance, commercial and industrial products
141,581
250,073
108,492
76.6%
Automotive products
124,064
140,499
16,435
13.2%
Operating profit of automotive, appliance, commercial and industrial products
27,969
38,644
10,675
38.2%
Operating profit ratio
10.5%
9.9%
-
-
Net sales of automotive, appliance, commercial and industrial products increased 47.0% to ¥390,572 million for this six-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of automotive, appliance, commercial and industrial products approximately ¥14,200 million for this six-month period compared to the same period of the prior year.
Net sales of appliance, commercial and industrial products for this six-month period increased 76.6% compared to the same period of the prior year. This increase was primarily due to the newly consolidated subsidiaries acquired in the three months ended March 31, 2017 and
the three months ended September 30, 2017.
Net sales of automotive products for this six-month period increased 13.2% compared to the same period of the prior year due to increases in sales for automotive motors such as electric power steering motors and products of control valves at Nidec Tosok Corporation and positive effect of the foreign currency exchange rate fluctuations.
Operating profit of automotive, appliance, commercial and industrial products increased 38.2% to ¥38,644 million for this six-month period compared to the same period of the prior year mainly due to an increase in sales. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of automotive, appliance, commercial and industrial products approximately ¥2,100 million for this six-month period compared to the same period of the prior year.
Excluding sales of approximate ¥85,100 million and operating profit of approximate
¥3,300 million for this six-month period by Nidec Leroy-Somer Holding and Nidec Control Techniques Limited which were acquired in three month ended March 31, 2017, and Nidec Global Appliance Compressors which was acquired in three month ended September 30, 2017, operating profit ratio of automotive, appliance, commercial and industrial products would have been higher than 11.6% for this six-month period.
Machinery
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of machinery
53,884
67,849
13,965
25.9%
Operating profit of machinery
10,200
12,586
2,386
23.4%
Operating profit ratio
18.9%
18.6%
-
-
Net sales of machinery increased 25.9% to ¥67,849 million for this six-month period compared to the same period of the prior year due to the increase in sales of press machines and Nidec Sankyo Corporation's LCD panel handling robots.
Operating profit of machinery increased 23.4% to ¥12,586 million for this six-month period compared to the same period of the prior year due to the increase in sales.
Electronic and optical components
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of electronic and optical components
31,032
34,997
3,965
12.8%
Operating profit of electronic and optical components
4,878
5,531
653
13.4%
Operating profit ratio
15.7%
15.8%
-
-
Net sales of electronic and optical components increased 12.8% to ¥34,997 million this six-month period compared to the same period of the prior year. Operating profit of electronic and optical components increased 13.4% to ¥5,531 million for this six-month period compared to the same period of the prior year due to the increase in sales.
Other products
(Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of other products
1,753
1,998
245
14.0%
Operating profit of other products
287
281
(6)
(2.1)%
Operating profit ratio
16.4%
14.1%
-
-
Net sales of other products increased 14.0% to ¥1,998 million and operating profit of other products decreased 2.1% to ¥281 million for this six-month period compared to the same period of the prior year.
Consolidated Operating Results for the Three Months Ended September 30, 2017 ("this 2Q"), Compared to the Three Months Ended June 30, 2017 ("the previous 1Q")
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales
343,091
372,799
29,708
8.7%
Operating profit
39,022
43,590
4,568
11.7%
Operating profit ratio
11.4%
11.7%
-
-
Profit before income taxes
36,326
40,304
3,978
11.0%
Profit attributable to owners of the parent
28,194
31,880
3,686
13.1%
Consolidated net sales increased 8.7% to ¥372,799 million for this 2Q compared to the previous 1Q and operating profit increased 11.7% to ¥43,590 million for this 2Q compared to the previous 1Q, achieving the highest net sales and operating profit for quarterly period in our history.
The average exchange rate between the Japanese yen and the U.S. dollar for this 2Q was
¥111.03 to the U.S. dollar, which reflected a slight appreciation of the Japanese yen against the
U.S. dollar, compared to the previous 1Q. The average exchange rate between the Japanese yen and the Euro for this 2Q was ¥130.38 to the Euro, which reflected an approximate 7% depreciation of the Japanese yen against the Euro, compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales approximately ¥3,600 million as well as on our operating profit approximately ¥400 million for this 2Q compared to the previous 1Q.
Profit before income taxes increased 11.0% to ¥40,304 million for this 2Q compared to the previous 1Q and profit attributable to owners of the parent increased 13.1% to ¥31,880 million for this 2Q compared to the previous 1Q, achieving the highest profit attributable to owners of the parent for quarterly period in our history.
Operating Results by Product Category for this 2Q Compared to the Previous 1Q
Small precision motors
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of small precision motors
103,753
116,721
12,968
12.5%
Hard disk drives spindle motors
44,730
48,992
4,262
9.5%
Other small precision motors
59,023
67,729
8,706
14.8%
Operating profit of small precision motors
16,914
19,228
2,314
13.7%
Operating profit ratio
16.3%
16.5%
-
-
Net sales of small precision motors increased 12.5% to ¥116,721 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors approximately ¥4 million for this 2Q compared to the previous 1Q.
Net sales of spindle motors for HDDs increased 9.5% to ¥48,992 million for this 2Q compared to the previous 1Q. The number of units sold of spindle motors for HDDs for this 2Q increased approximately 9% compared to the previous 1Q.
Net sales of other small precision motors for this 2Q increased 14.8% to ¥67,729 million compared to the previous 1Q due to increase in sales in fan motors and other small precision motors.
Operating profit of small precision motors increased 13.7% to ¥19,228 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a negative effect on our operating profit of small precision motors approximately ¥300 million for this 2Q compared to the previous 1Q.
Automotive, appliance, commercial and industrial products
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of automotive, appliance, commercial and industrial products
188,893
201,679
12,786
6.8%
Appliance, commercial and industrial products
120,184
129,889
9,705
8.1%
Automotive products
68,709
71,790
3,081
4.5%
Operating profit of automotive, appliance, commercial and industrial products
17,435
21,209
3,774
21.6%
Operating profit ratio
9.2%
10.5%
-
-
Net sales of automotive, appliance, commercial and industrial products increased 6.8% to
¥201,679 million for this 2Q compared to the previous 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of automotive, appliance, commercial and industrial products approximately ¥3,100 million for this 2Q compared to the previous 1Q.
Net sales of appliance, commercial and industrial products for this 2Q increased 8.1% compared to the previous 1Q mainly due to increase in sales in each area and consolidation of Nidec Global Appliance Compressors which was acquired in this 2Q.
Net sales of automotive products for this 2Q increased 4.5% compared to the previous 1Q mainly due to positive effect of the foreign exchange fluctuations and increases in sales for automotive motors such as electric power steering motors.
Operating profit of automotive, appliance, commercial and industrial products increased 21.6% to ¥21,209 million for this 2Q compared to the previous 1Q mainly due to the increase in sales. The fluctuations of the foreign currency exchange rates had a positive effect on our operating profit of automotive, appliance, commercial and industrial products approximately
¥700 million for this 2Q compared to the previous 1Q.
Excluding sales of approximate ¥46,500 million and operating profit of approximate
¥2,100 million for this 2Q by Nidec Leroy-Somer Holding and Nidec Control Techniques Limited which were acquired in three month ended March 31, 2017, and Nidec Global Appliance Compressors which was acquired in this 2Q, operating profit ratio of automotive, appliance, commercial and industrial products would have been higher than 12.3% for this 2Q.
Machinery
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of machinery
32,583
35,266
2,683
8.2%
Operating profit of machinery
6,329
6,257
(72)
(1.1)%
Operating profit ratio
19.4%
17.7%
-
-
Net sales of machinery increased 8.2% to ¥35,266 million for this 2Q compared to the previous 1Q due to the increase in sales of press machines and Nidec Sankyo Corporation's LCD panel handling robots.
Operating profit of machinery decreased 1.1% to ¥6,257 million for this 2Q compared to the previous 1Q.
Electronic and optical components
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of electronic and optical components
16,939
18,058
1,119
6.6%
Operating profit optical components
of
electronic
and
3,062
2,469
(593)
(19.4)%
Operating profit ratio
18.1%
13.7%
-
-
Net sales of electronic and optical components increased 6.6% to ¥18,058 million for this 2Q compared to the previous 1Q.
Operating profit of electronic and optical components decreased 19.4% to ¥2,469 million for this 2Q compared to the previous 1Q due to changes in product mix.
Other products
(Yen in millions)
Three months ended
June 30, 2017
Three months ended September 30,
2017
Increase or decrease
Increase or decrease ratio
Net sales of other products
923
1,075
152
16.5%
Operating profit of other products
151
130
(21)
(13.9)%
Operating profit ratio
16.4%
12.1%
-
-
Net sales of other products increased 16.5% to ¥1,075 million for this 2Q compared to the previous 1Q.
Operating profit of other products decreased 13.9% to ¥130 million for this 2Q compared to the previous 1Q.
Financial Position
(Yen in millions)
As of March 31, 2017
As of September 30, 2017
Increase or decrease
Total assets
1,676,106
1,772,631
96,525
Total liabilities
820,269
845,647
25,378
Total equity attributable to owners of the parent
846,603
917,434
70,831
Interest-bearing debt *1
412,431
385,390
(27,041)
Net interest-bearing debt *2
90,851
98,218
7,367
Debt ratio (%)*3
24.6
21.7
(2.9)
Debt to equity ratio ("D/E ratio") (times) *4
0.49
0.42
(0.07)
Net D/E ratio (times) *5
0.11
0.11
(0.00)
Ratio of total equity attributable to owners of the parent to total assets (%)*6
50.5
51.8
1.3
(Notes) *1. The sum of "short term borrowings", "long term debt due within one year" and "long term debt" in our consolidated statement of financial position
*2. "Interest-bearing debt" less "cash and cash equivalents"
*3. "Interest-bearing debt" divided by "total assets"
*4. "Interest-bearing debt" divided by "total equity attributable to owners of the parent"
*5. "Net interest-bearing debt" divided by "total equity attributable to owners of the parent"
*6. "Total equity attributable to owners of the parent" divided by "total assets"
Total assets increased approximately ¥96,500 million to ¥1,772,631 million as of September 30, 2017 compared to March 31, 2017. This was mainly due to increase of approximate ¥44,700 million in trade and other receivables, approximate ¥30,900 million in property, plant, and equipment, approximate ¥29,300 million in inventories. On the other hand, there was a decrease of approximate ¥ 34,400 million in cash and cash equivalents.
Total liabilities increased approximately ¥25,400 million to ¥845,647 million as of September 30, 2017 compared to March 31, 2017. This was mainly due to increase of approximate ¥173,500 million in our long term debt and approximate ¥41,100 million in trade and other payable, while there were decreases in short term borrowings of approximate
¥147,900 million and in our long term debt due within one year of approximate ¥52,600 million. As a result, our interest-bearing debt decreased approximately ¥27,000 million. Specifically, our short term borrowings decreased approximately ¥147,900 million to approximate ¥18,700 million, our long term debt due within one year decreased approximately ¥52,600 million to approximate ¥31,500 million, and our long term debt increased approximately ¥173,500 million to approximate ¥335,300 million as of September 30, 2017 compared to March 31, 2017. The increase of approximate ¥173,500 million in our long term debt was mainly due to the loan of
$750 million as a portion of the funds necessary to acquire the motors, drives and electric power generation businesses of Emerson Electric Co. (currently, Nidec Leroy-Somer Holding and Nidec Control Techniques Limited, etc.) and the issuance of approximate ¥50,000 million sixth series unsecured bonds and approximate ¥65,000 million seventh series unsecured bonds. On the other hand, there was a decrease of approximate ¥65,000 million due to the redemption of first series of unsecured bonds. The decrease of approximate ¥147,900 million in our short term borrowings was mainly due to repayment of borrowings in a yen through portion of bonds issued and repayment of the borrowings in dollars.
As a result, our net interest-bearing debt increased to approximate ¥98,200 million as of September 30, 2017 from approximate ¥90,900 million as of March 31, 2017. Our debt ratio decreased to 21.7% as of September 30, 2017 from 24.6% as of March 31, 2017. Our D/E ratio
decreased to 0.42 as of September 30, 2017 from 0.49 as of March 31, 2017. Our net D/E ratio
remains unchanged as of September 30, 2017 from 0.11 as of March 31, 2017.
Total equity attributable to owners of the parent increased approximately ¥70,800 million to approximate ¥917,434 million as of September 30, 2017 compared to March 31, 2017. Ratio of total equity attributable to owners of the parent to total assets increased to 51.8% as of September 30, 2017 from 50.5% as of March 31, 2017. The increase of total equity attributable to owners of the parent to total assets was mainly due to an increase in retained earnings of approximate ¥48,800 million, and an increase in other components of equity of approximate
¥27,200 million caused mainly by foreign currency translation adjustments. On the other hand, there was a decrease of approximate ¥5,200 million of acquisition of treasury stock as of September 30, 2017 compared to March 31, 2017.
Assets totaled approximate ¥36,200 million mainly consisting of trade and other receivables of approximate ¥7,800 million and liabilities totaled ¥13,800 million consisting of trade and other payable of approximate ¥9,200 million brought by the acquisition of Secop Group (currently, Nidec Global Appliance Compressors, etc.) are included.
NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
Overview of Cash Flow
(Yen in millions)
Six months ended September 30
Increase or decrease
2016
2017
Net cash provided by operating activities
96,493
74,242
(22,251)
Net cash used in investing activities
(34,760)
(51,879)
(17,119)
Free cash flow *1
61,733
22,363
(39,370)
Net cash used in financing activities
(34,942)
(67,643)
(32,701)
(Note) *1. Free cash flow is the sum of "net cash provided by operating activities" and "net cash used in investing activities".
Cash flows from operating activities for the six months ended September 30, 2017 ("the six-month period") came to a net cash inflow of ¥74,242 million. Compared to the six months ended September 30, 2016 ("the same period of the previous year"), our cash inflow from operating activities for the six-month period decreased approximately ¥22,300 million. This decrease was mainly due to increases of approximate ¥15,900 million in inventories and approximate ¥12,200 million in accounts receivable and a decrease of approximate ¥11,200 million in accounts payable, although there was an increase of approximate ¥9,900 million of our profit for the period.
Cash flows from investing activities for the six-month period came to a net cash outflow of ¥51,879 million. Compared to the same period of the previous year, our net cash outflow from investing activities for the six-month period increased approximately ¥17,100 million mainly due to increases in additions to property, plant and equipment of approximate ¥11,400 million and in acquisitions of businesses of approximate ¥5,700 million.
As a result, we had a positive free cash flow of ¥22,363 million for the six-month period, a decrease of approximate ¥39,400 million compared to a positive free cash flow of ¥61,733 million for the same period of the previous year.
Cash flows from financing activities for the six-month period came to a net cash outflow of ¥67,643 million. Compared to the same period of the previous year, our net cash outflow from financing activities for the six-month period increased approximately ¥32,700 million mainly due to an increase in net cash outflow from short term borrowings of approximate
¥137,800 million and increases outflow from redemption of corporate bonds of approximate
¥65,000 million and repayments of long term debt of approximate ¥21,100 million. On the other hand, inflow from issuance of corporate bonds and long term debt increased approximately
¥115,000 million and ¥83,000 million, respectively.
As a result of the foregoing and the impact of foreign exchange fluctuations of approximate positive ¥10,900 million, the balance of cash and cash equivalents as of September 30, 2017 decreased approximately ¥34,400 million to ¥287,172 million from September 30, 2016.
Business Forecasts for the Fiscal Year ending March 31, 2018
The financial results for the six months ended September 30, 2017 exceeded our previous forecasts. In view of this favorable profit growth during the above financial period, we have revised our previously announced financial performance forecasts for the fiscal year ending March 31, 2018 as shown below. The exchange rates used for the preparation of the foregoing forecasts remain unchanged from those announced previously (i.e., US$1 = ¥105 and €1 = ¥110 respectively).
In addition, we have comprehensively considered our financial condition, profit levels, dividend payout ratio, etc., and revised our year-end dividend target upwards by ¥5 to ¥50 per share compared to the previous target of ¥45. As a result, our annual dividend target is ¥95 per share.
Forecast of consolidated results for the fiscal year ending March 31, 2018
Net sales ¥1,450,000 million (Up 120.9% from the previous fiscal year)
Operating profit ¥170,000 million (Up 121.9% from the previous fiscal year)
Profit before income taxes ¥163,000 million (Up 115.3% from the previous fiscal year)
Profit attributable to owners of
the parent ¥128,000 million (Up 115.3% from the previous fiscal year)
(Notes) 1. Consolidated results are based on IFRS.
2. The exchange rates used for the preparation of the foregoing forecasts are: US$1 = ¥105 and €1 = ¥110.
The exchange rates between the relevant Asian currencies and the Japanese yen used for the preparation of the foregoing forecasts were determined assuming these exchange rates.
.
Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements based on our current expectations, assumptions, estimates and projections in light of the information currently available. We cannot make any assurances for our expectations expressed in these forward-looking statements. Actual results could be materially different from our expectations depending on various factors.
2. Condensed Quarterly Consolidated Financial Statements and Other Information-
Condensed Quarterly Consolidated Statements of Financial Position
(Yen in millions)
March 31, 2017
September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Assets Current assets
Cash and cash equivalents Trade and other receivables Other financial assets Income tax receivables Inventories
Other current assets Total current assets
Non-current assets
Property, plant, and equipment Goodwill
Intangible assets
Investments accounted for using the equity method
Other investments Other financial assets Deferred tax assets Other non-current assets Total non-current assets
Total assets
321,580
287,172
(34,408)
348,897
393,612
44,715
2,951
2,320
(631)
1,676
1,533
(143)
196,629
225,944
29,315
28,342
31,862
3,520
900,075
53.7
942,443
53.2
42,368
394,051
424,959
30,908
260,042
275,354
15,312
77,215
78,214
999
1,125
1,103
(22)
19,583
22,449
2,866
3,764
4,455
691
15,526
17,689
2,163
4,725
5,965
1,240
776,031
46.3
830,188
46.8
54,157
1,676,106
100.0
1,772,631
100.0
96,525
(Yen in millions)
March 31, 2017
September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Liabilities
166,606
18,674
(147,932)
Current liabilities
Short term borrowings
Long term debt due within one year
84,040
31,455
(52,585)
Trade and other payables
251,236
292,350
41,114
Other financial liabilities
1,844
1,624
(220)
Income tax payables
6,690
7,027
337
Provisions
25,210
27,755
2,545
Other current liabilities
66,461
71,138
4,677
Total current liabilities
602,087
35.9
450,023
25.4
(152,064)
Non-current liabilities
Long term debt
161,785
335,261
173,476
Other financial liabilities
1,315
1,018
(297)
Retirement benefit liabilities
22,656
25,117
2,461
Provisions
3,614
3,874
260
Deferred tax liabilities
25,881
27,118
1,237
Other non-current liabilities
2,931
3,236
305
Total non-current liabilities
218,182
13.0
395,624
22.3
177,442
Total liabilities
820,269
48.9
845,647
47.7
25,378
Equity
Common stock
87,784
5.2
87,784
5.0
-
Additional paid-in capital
118,340
7.1
118,340
6.7
(0)
Retained earnings
715,940
42.7
764,781
43.1
48,841
Other components of equity
(63,318)
(3.8)
(36,167)
(2.0)
27,151
Treasury stock
(12,143)
(0.7)
(17,304)
(1.0)
(5,161)
Total equity attributable to owners of the parent
846,603
50.5
917,434
51.8
70,831
Non-controlling interests
9,234
0.6
9,550
0.5
316
Total equity
855,837
51.1
926,984
52.3
71,147
Total liabilities and equity
1,676,106
100.0
1,772,631
100.0
96,525
Condensed Quarterly Consolidated Statements of Income
and Condensed Quarterly Consolidated Statements of Comprehensive Income
Six months ended September 30
Increase or decrease
2016
2017
Amounts
%
Amounts
%
Amounts
%
Net sales Cost of sales
Gross profit
Selling, general and administrative expenses Research and development expenses
Operating profit
Financial income Financial expenses Derivative gain (loss)
Foreign exchange differences
Share of net profit (loss) from associate accounting using the equity method
Profit before income taxes Income tax expenses Profit for the period
Profit for the period attributable to: Owners of the parent
Non-controlling interests
Profit for the period
564,030
(428,562)
100.0
(76.0)
715,890
(541,189)
100.0
(75.6)
151,860
(112,627)
26.9
26.3
135,468
24.0
174,701
24.4
39,233
29.0
(40,881)
(25,602)
(7.3)
(4.5)
(65,300)
(26,789)
(9.1)
(3.8)
(24,419)
(1,187)
59.7
4.6
68,985
12.2
82,612
11.5
13,627
19.8
1,332
(1,158)
(2,695)
(173)
(17)
0.3
(0.2)
(0.5)
(0.0)
(0.0)
2,854
(3,367)
92
(5,581)
20
0.4
(0.4)
0.0
(0.8)
0.0
1,522
(2,209)
2,787
(5,408)
37
114.3
190.8
-
-
-
66,274
11.8
76,630
10.7
10,356
15.6
(15,774)
(2.8)
(16,246)
(2.3)
(472)
3.0
50,500
9.0
60,384
8.4
9,884
19.6
50,094
406
8.9
0.1
60,074
310
8.4
0.0
9,980
(96)
19.9
(23.6)
50,500
9.0
60,384
8.4
9,884
19.6
For the six months ended September 30, 2016 and 2017 Condensed Quarterly Consolidated Statements of Income
Condensed Quarterly Consolidated Statements of Comprehensive Income
(Yen in millions)
Year ended March 31, 2017
Amounts
%
1,199,311
100.0
(913,643)
(76.2)
285,668
23.8
(93,458)
(7.8)
(52,807)
(4.4)
139,403
11.6
3,368
0.3
(3,063)
(0.2)
405
0.0
1,771
0.1
(534)
(0.0)
141,350
11.8
(29,364)
(2.5)
111,986
9.3
111,036
9.2
950
0.1
111,986
9.3
(Yen in millions)
Six months ended September 30
Increase or decrease
2016
2017
Amounts
Amounts
Amounts
%
Profit for the period
Other comprehensive income, net of taxation
Items that will not be reclassified to net profit or loss:
Remeasurement of defined benefit plans
Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss:
Foreign currency translation adjustments
Effective portion of net changes in fair value of cash flow hedges
Fair value movements on FVTOCI debt financial assets Total other comprehensive income for the period, net of taxation Comprehensive income for the period
Comprehensive income for the period attributable to: Owners of the parent
Non-controlling interests
Comprehensive income for the period
50,500
60,384
9,884
19.6
(110)
(46)
64
-
345
2,137
1,792
519.4
(76,858)
26,699
103,557
-
121
502
381
314.9
1
(2)
(3)
-
(76,501)
29,290
105,791
-
(26,001)
89,674
115,675
-
(25,727)
89,339
115,066
-
(274)
335
609
-
(26,001)
89,674
115,675
-
Year ended March 31, 2017
Amounts
111,986
761
2,694
(8,316)
1,118
(0)
(3,743)
108,243
107,342
901
108,243
For the three months ended September 30, 2016 and 2017 Condensed Quarterly Consolidated Statements of Income
(Yen in millions)
Three months ended September 30
Increase or decrease
2016
2017
Amounts
%
Amounts
%
Amounts
%
Net sales Cost of sales
Gross profit
Selling, general and administrative expenses Research and development expenses
Operating profit
Financial income Financial expenses Derivative gain (loss)
Foreign exchange differences
Share of net profit from associate accounting using the equity method
Profit before income taxes Income tax expenses Profit for the period
Profit for the period attributable to: Owners of the parent
Non-controlling interests
Profit for the period
287,824
100.0
372,799
100.0
84,975
29.5
(216,297)
(75.1)
(282,418)
(75.8)
(66,121)
30.6
71,527
24.9
90,381
24.2
18,854
26.4
(21,124)
(7.4)
(33,246)
(8.9)
(12,122)
57.4
(12,942)
(4.5)
(13,545)
(3.6)
(603)
4.7
37,461
13.0
43,590
11.7
6,129
16.4
643
0.2
1,591
0.4
948
147.4
(626)
(0.2)
(1,944)
(0.5)
(1,318)
210.5
(278)
(0.1)
74
0.0
352
-
(21)
(0.0)
(3,012)
(0.8)
(2,991)
-
8
0.0
5
0.0
(3)
(37.5)
37,187
12.9
40,304
10.8
3,117
8.4
(8,938)
(3.1)
(8,218)
(2.2)
720
(8.1)
28,249
9.8
32,086
8.6
3,837
13.6
28,066
9.7
31,880
8.6
3,814
13.6
183
0.1
206
0.0
23
12.6
28,249
9.8
32,086
8.6
3,837
13.6
Condensed Quarterly Consolidated Statements of Comprehensive Income
(Yen in millions)
Three months ended September 30
Increase or decrease
2016
2017
Amounts
Amounts
Amounts
%
Profit for the period
Other comprehensive income, net of taxation
Items that will not be reclassified to net profit or loss:
Remeasurement of defined benefit plans
Fair value movements on FVTOCI equity financial assets Items that may be reclassified to net profit or loss:
Foreign currency translation adjustments
Effective portion of net changes in fair value of cash flow hedges
Fair value movements on FVTOCI debt financial assets Total other comprehensive income for the period, net of taxation Comprehensive income for the period
Comprehensive income for the period attributable to: Owners of the parent
Non-controlling interests
Comprehensive income for the period
28,249
32,086
3,837
13.6
3
0
(3)
(100.0)
1,307
821
(486)
(37.2)
(11,100)
17,938
29,038
-
(36)
37
73
-
0
(2)
(2)
-
(9,826)
18,794
28,620
-
18,423
50,880
32,457
176.2
18,202
50,553
32,351
177.7
221
327
106
48.0
18,423
50,880
32,457
176.2
Condensed Quarterly Consolidated Statements of Changes in Equity
Total equity attributable to owners of the parent
Non- controlling interests
Total equity
Common Stock
Additional paid-in capital
Retained earnings
Other components of equity
Treasury stock
Total
As of April 1, 2016
87,784
118,341
625,168
(56,159)
(12,111)
763,023
8,346
771,369
Comprehensive income
Profit for the period
50,094
50,094
406
50,500
Other comprehensive income
(75,821)
(75,821)
(680)
(76,501)
Total comprehensive income
(1)
(11,864)
(250)
(11)
(25,727)
(274)
(26,001)
Transactions with owners directly
(11)
-
(11)
recognized in equity:
Purchase of treasury stock
Dividends paid to the owners of the parent
(11,864)
-
(11,864)
Dividends paid to non-controlling interests
-
(18)
(18)
Transfer to retained earnings
250
-
-
-
Other
1
0
63
63
As of September 30, 2016
87,784
118,340
663,648
(132,230)
(12,121)
725,421
8,117
733,538
Six months ended September 30, 2016
Six months ended September 30, 2017
(Yen in millions)
(Yen in millions)
Total equity attributable to owners of the parent
Non- controlling interests
Total equity
Common Stock
Additional paid-in capital
Retained earnings
Other components of equity
Treasury stock
Total
As of April 1, 2017
87,784
118,340
715,940
(63,318)
(12,143)
846,603
9,234
855,837
Comprehensive income
Profit for the period
60,074
60,074
310
60,384
Other comprehensive income
29,265
29,265
25
29,290
Total comprehensive income
(0)
(13,347)
(2,113)
(5,161)
89,339
335
89,674
Transactions with owners directly
(5,161)
-
(5,161)
recognized in equity:
Purchase of treasury stock
Dividends paid to the owners of the parent
(13,347)
-
(13,347)
Dividends paid to non-controlling interests
-
(39)
(39)
Transfer to retained earnings
2,113
-
-
-
Other
1
(1)
(0)
20
20
As of September 30, 2017
87,784
118,340
764,781
(36,167)
(17,304)
917,434
9,550
926,984
Condensed Quarterly Consolidated Statements of Cash Flows
(Yen in millions)
Six months ended September 30
Increase or decrease
2016
2017
Cash flows from operating activities: Profit for the period
Adjustments to reconcile profit for the period to net cash provided by operating activities
Depreciation and amortization
(Gain) loss from sales, disposal or impairment of property, plant and equipment
Financial (income) expense
Share of net loss (profit) from associate accounting using the equity method
Deferred income taxes Current income taxes Foreign currency adjustments
Increase (decrease) in retirement benefit liability Increase in accounts receivable
Increase in inventories Increase in accounts payable Other, net
Interests and dividends received Interests paid
Income taxes paid
50,500
60,384
9,884
28,860
32,832
3,972
(1,289)
210
1,499
(149)
164
313
17
(20)
(37)
2,602
(1,869)
(4,471)
13,172
18,114
4,942
1,106
1,628
522
305
1,083
778
(16,408)
(28,565)
(12,157)
(1,765)
(17,707)
(15,942)
32,814
21,664
(11,150)
(921)
4,595
5,516
1,207
2,806
1,599
(1,651)
(3,166)
(1,515)
(11,907)
(17,911)
(6,004)
Net cash provided by operating activities
96,493
74,242
(22,251)
Cash flows from investing activities:
(30,483)
(41,841)
(11,358)
Additions to property, plant and equipment
Proceeds from sales of property, plant and equipment
642
2,185
1,543
Acquisitions of business, net of cash acquired
(2,242)
(7,919)
(5,677)
Other, net
(2,677)
(4,304)
(1,627)
Net cash used in investing activities
(34,760)
(51,879)
(17,119)
Cash flows from financing activities:
(21,425)
(159,188)
(137,763)
(Decrease) increase in short term borrowings
Proceeds from issuance of long term debt
237
83,220
82,983
Repayments of long term debt
(1,861)
(22,932)
(21,071)
Proceeds from issuance of corporate bonds
-
115,001
115,001
Redemption of corporate bonds
-
(65,000)
(65,000)
Purchase of treasury stock
(11)
(5,161)
(5,150)
Dividends paid to the owner of the parent
(11,864)
(13,347)
(1,483)
Other, net
(18)
(236)
(218)
Net cash (used in) provided by financing activities
(34,942)
(67,643)
(32,701)
Effect of exchange rate changes on cash and cash equivalents
(33,799)
10,872
44,671
Net (decrease) increase in cash and cash equivalents
(7,008)
(34,408)
(27,400)
Cash and cash equivalents at beginning of period
305,942
321,580
15,638
Cash and cash equivalents at end of period
298,934
287,172
(11,762)
Year ended March 31
2017
111,986
59,700
(1,224)
(163)
534
588
28,775
(6,636)
(94)
(65,582)
(5,942)
39,229
(6,465)
3,160
(3,052)
(24,961)
129,853
(68,718)
1,786
(139,862)
(4,682)
(211,476)
93,784
58,707
(32,782)
50,001
(50,000)
(33)
(23,728)
(101)
95,848
1,413
15,638
305,942
321,580
Notes of Condensed Quarterly Consolidated Financial Statements Notes Regarding Going Concern Assumption
Reporting entity
Nidec Corporation (the Company) is a corporation located in Japan, whose shares are listed on the Tokyo Stock Exchange. The registered address of headquarters and principal business offices are available on the Company's website (http://www.nidec.com/en-Global/).
Condensed Quarterly Consolidated Financial Statements as of September 30, 2017 consist of the Company and its consolidated subsidiaries (NIDEC), and shares of associates of NIDEC.
NIDEC mainly designs, develops, produces, and sells products as described below:
Small precision motors, which include spindle motors for hard disk drives, brushless motors, fan motors, vibration motors, brush motors and motor applications.
Automotive, appliance, commercial and industrial products, which include automotive motors and components, home appliance, commercial and industrial motors and related products.
Machinery, which includes industrial robots, card readers, test systems, press machines and power transmission drives.
Electronic and optical components, which include switches, trimmer potentiometers, lens units and camera shutters.
Others, which include services.
Basis of Preparation
Compliance with International Financial Reporting Standards (IFRS)
The condensed quarterly consolidated financial statements of NIDEC have been prepared in accordance with IAS 34 "Interim Financial Reporting" pursuant to the provision of article 93 of Regulations for Quarterly Consolidated Financial Statements, as the Company meets the criteria of a "Designated IFRS Specified Company" defined under article 1-2 of the regulations.
The condensed quarterly consolidated financial statements do not include all the information that must be disclosed in the annual consolidated financial statements, and therefore should be used in conjunction with the consolidated financial statements for the year ended March 31, 2017.
Basis of measurement
The condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for some assets and liabilities, including derivative and other financial instruments measured at fair value.
Presentation currency and level of rounding
The condensed quarterly consolidated financial statements are presented in Japanese Yen, which is also the Company's functional currency, and figures are rounded to the nearest million yen, unless otherwise indicated.
Significant accounting policies
Significant accounting policies adopted in preparation of the condensed quarterly consolidated financial statements are consistent with those used in the preparation of the NIDEC's annual consolidated financial statements for the year ended March 31, 2017.
Income taxes for six month ended September 30, 2017 are computed using the estimated annual effective tax rate.
Significant accounting estimates, judgments and assumptions
The preparation of the condensed quarterly consolidated financial statements requires management of NIDEC to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis, and the effects resulting from revisions of accounting estimates are recognized in the period in which the estimates are revised and in future periods affected by the revision.
Judgments and estimates accompanying significant risks that may cause material adjustments to the carrying amounts of assets and liabilities in the current and next fiscal years are the same as those for the condensed consolidated financial statements for the previous fiscal year ended March 31, 2017.
Business Combinations
Pursuant to IFRS 3 "Business Combinations", during the three months ended March 31, 2017, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of E.C.E. S.r.l. and ANA IMEP S.A. (currently, Nidec Motor Corporation Romania). NIDEC's condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflects the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. In addition, during the three months ended September 30, 2017, NIDEC partly completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of the motors, drives and electric power generation businesses of Emerson Electric Co. (currently, Nidec Leroy-Somer Holding and Nidec Control Techniques Limited, etc.). NIDEC's consolidated financial statement for the year ended March 31, 2017 reflects the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
NIDEC has been evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of companies in the fiscal year ended March 31, 2017 and six months ended September 30, 2017. The assets and liabilities which are currently under evaluation have been recorded on NIDEC's consolidated statement of financial position based on preliminary management estimation as of September 30, 2017.
Event after the Reporting Period
Completion of Business Succession from Tokyo Maruzen Industry Co., Ltd.
On October 1, 2017, Nidec Sankyo Corporation, the Company's subsidiary, completed succeeding the business of Tokyo Maruzen Industry Co., Ltd. ("Tokyo Maruzen") by way of an absorption type company split, through a new company formed to this effect (the "Transaction").
1. Purpose
Tokyo Maruzen develops, manufactures and sells products of electric contact materials, contact rivets and contact staking. The Transaction will help strengthen their capacity in material development, production engineering and manufacturing responsiveness, which will allow to introduce unparalleled sophistication in electric contacts both in terms of quality and reliability to automotive market.
2. Acquisition method
Funds for the Transaction are own funds.
Others (unaudited)
Quarterly Financial Data for the three months ended September 30, 2017 and June 30, 2017
(Yen in millions)
Three months ended
June 30, 2017
September 30, 2017
Amounts
%
Amounts
%
Net sales
343,091
100.0
372,799
100.0
Operating profit
39,022
11.4
43,590
11.7
Profit before income taxes
36,326
10.6
40,304
10.8
Profit for the period
28,298
8.2
32,086
8.6
Profit attributable to owners of the parent
28,194
8.2
31,880
8.6
Information by Product Category
Six months ended September 30, 2016 (Yen in millions)
Small precision motors
Automotive, appliance, commercial and industrial products
Machinery
Electronic and optical components
Others
Total
Eliminations/ Corporate
Consolidated
Net sales:
211,716
265,645
53,884
31,032
1,753
564,030
-
564,030
External sales
Intersegment
1,018
2,549
4,071
2,642
712
10,992
(10,992)
-
Total
212,734
268,194
57,955
33,674
2,465
575,022
(10,992)
564,030
Operating expenses
179,767
240,225
47,755
28,796
2,178
498,721
(3,676)
495,045
Operating profit
32,967
27,969
10,200
4,878
287
76,301
(7,316)
68,985
Six months ended September 30, 2017 (Yen in millions)
Small precision motors
Automotive, appliance, commercial and industrial products
Machinery
Electronic and optical components
Others
Total
Eliminations/ Corporate
Consolidated
Net sales:
220,474
390,572
67,849
34,997
1,998
715,890
-
715,890
External sales
Intersegment
1,321
3,131
7,316
3,836
912
16,516
(16,516)
-
Total
221,795
393,703
75,165
38,833
2,910
732,406
(16,516)
715,890
Operating expenses
185,653
355,059
62,579
33,302
2,629
639,222
(5,944)
633,278
Operating profit
36,142
38,644
12,586
5,531
281
93,184
(10,572)
82,612
Three months ended September 30, 2016 (Yen in millions)
Small precision motors
Automotive, appliance, commercial and industrial products
Machinery
Electronic and optical components
Others
Total
Eliminations/ Corporate
Consolidated
Net sales:
116,915
127,395
26,738
15,871
905
287,824
-
287,824
External sales
Intersegment
481
1,327
2,349
1,383
365
5,905
(5,905)
-
Total
117,396
128,722
29,087
17,254
1,270
293,729
(5,905)
287,824
Operating expenses
98,177
114,567
23,782
14,486
1,117
252,129
(1,766)
250,363
Operating profit
19,219
14,155
5,305
2,768
153
41,600
(4,139)
37,461
Three months ended September 30, 2017 (Yen in millions)
Small precision motors
Automotive, appliance, commercial and industrial products
Machinery
Electronic and optical components
Others
Total
Eliminations/ Corporate
Consolidated
Net sales:
116,721
201,679
35,266
18,058
1,075
372,799
-
372,799
External sales
Intersegment
658
1,773
3,929
2,008
504
8,872
(8,872)
-
Total
117,379
203,452
39,195
20,066
1,579
381,671
(8,872)
372,799
Operating expenses
98,151
182,243
32,938
17,597
1,449
332,378
(3,169)
329,209
Operating profit
19,228
21,209
6,257
2,469
130
49,293
(5,703)
43,590
(Notes) 1. Product categories are classified based on similarities in product type, product attributes, and production and sales methods.
Major products of each product category:
Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.
Automotive, appliance, commercial and industrial products: Automotive motors and components, home appliance, commercial and industrial motors and related products.
Machinery: Industrial robots, card readers, test systems, press machines and power transmission drives, etc.
Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.
Others: Services, etc.
Sales by Geographic Segment
(Yen in millions)
Six months ended September 30, 2016
Six months ended September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Amounts
%
Japan
136,517
24.2%
150,501
21.0%
13,984
10.2%
U.S.A.
94,145
16.7%
125,415
17.5%
31,270
33.2%
Singapore
28,103
5.0%
28,044
3.9%
(59)
(0.2)%
Thailand
48,591
8.6%
60,973
8.5%
12,382
25.5%
Germany
44,397
7.9%
58,812
8.2%
14,415
32.5%
China
138,037
24.5%
167,083
23.4%
29,046
21.0%
Others
74,240
13.1%
125,062
17.5%
50,822
68.5%
Total
564,030
100.0%
715,890
100.0%
151,860
26.9%
(Yen in millions)
Three months ended September 30, 2016
Three months ended September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Amounts
%
Japan
68,067
23.6%
76,714
20.6%
8,647
12.7%
U.S.A.
45,470
15.8%
63,179
16.9%
17,709
38.9%
Singapore
14,546
5.0%
15,329
4.1%
783
5.4%
Thailand
25,512
8.9%
32,127
8.6%
6,615
25.9%
Germany
21,222
7.4%
31,934
8.6%
10,712
50.5%
China
74,223
25.8%
87,959
23.6%
13,736
18.5%
Others
38,784
13.5%
65,557
17.6%
26,773
69.0%
Total
287,824
100.0%
372,799
100.0%
84,975
29.5%
(Note) The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.
Sales by Region
(Yen in millions)
Six months ended September 30, 2016
Six months ended September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Amounts
%
North America
114,792
20.4%
139,098
19.4%
24,306
21.2%
Asia
276,266
49.0%
333,869
46.7%
57,603
20.9%
Europe
72,969
12.9%
121,606
17.0%
48,637
66.7%
Others
9,269
1.6%
13,806
1.9%
4,537
48.9%
Overseas total
473,296
83.9%
608,379
85.0%
135,083
28.5%
Japan
90,734
16.1%
107,511
15.0%
16,777
18.5%
Total
564,030
100.0%
715,890
100.0%
151,860
26.9%
(Yen in millions)
Three months ended September 30, 2016
Three months ended September 30, 2017
Increase or decrease
Amounts
%
Amounts
%
Amounts
%
North America
57,074
19.8%
69,976
18.8%
12,902
22.6%
Asia
144,842
50.3%
177,433
47.6%
32,591
22.5%
Europe
35,519
12.4%
64,024
17.2%
28,505
80.3%
Others
4,653
1.6%
7,568
2.0%
2,915
62.6%
Overseas total
242,088
84.1%
319,001
85.6%
76,913
31.8%
Japan
45,736
15.9%
53,798
14.4%
8,062
17.6%
Total
287,824
100.0%
372,799
100.0%
84,975
29.5%
(Note) The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.
Overview of Consolidated Financial Results
24 October, 2017
Summary of Consolidated Financial Performance (Yen in millions)
Six months ended September 30,
2016
Six months ended September 30,
2017
Increase or decrease
Three months ended September 30, 2016
Three months ended September 30, 2017
Increase or decrease
Net Sales
564,030
715,890
26.9%
287,824
372,799
29.5%
Operating profit
68,985
12.2%
82,612
11.5%
19.8%
37,461
13.0%
43,590
11.7%
16.4%
Profit before income taxes
66,274
11.8%
76,630
10.7%
15.6%
37,187
12.9%
40,304
10.8%
8.4%
Profit attributable to owners of the parent
50,094
8.9%
60,074
8.4%
19.9%
28,066
9.7%
31,880
8.6%
13.6%
Earnings per share attributable to owners of the parent - Basic (Yen)
168.89
202.90
94.63
107.68
Earnings per share attributable to owners of the parent - Diluted (Yen)
-
-
-
-
Summary of Consolidated Financial Position and Cash Flows (Yen in millions)
September 30, 2016
September 30, 2017
March 31, 2017
Total assets
1,327,250
1,772,631
1,676,106
Total equity attributable to owners of the parent
725,421
917,434
846,603
Ratio of equity attributable to owners of the parent to total asset
54.7%
51.8%
50.5%
Six months ended September 30, 2016
Six months ended September 30, 2017
Year ended March 31, 2017
Net cash provided by operating activities
96,493
74,242
129,853
Net cash used in investing activities
(34,760)
(51,879)
(211,476)
Net cash (used in) provided by financing activities
(34,942)
(67,643)
95,848
Cash and cash equivalents at end of period
298,934
287,172
321,580
Dividends (Yen)
Interim dividend per share
Year-end dividend per share
Annual dividend per share
Year ended March 31, 2017 (actual)
40.00
45.00
85.00
Year ending March 31, 2018 (actual)
45.00
-
-
Year ending March 31, 2018 (target)
-
50.00
95.00
Scope of Consolidation and Application of the Equity Method
Number of consolidated subsidiaries
307
Number of associates accounted for under the equity method
5
Change from March 31, 2017
Change from September 30, 2016
Number of consolidated subsidiaries
(Increase)
13
83
(Decrease)
2
4
Number of associates accounted for under the equity method
(Increase)
-
1
(Decrease)
1
1
(Notes) 1. The amounts of percentage in "(1) Summary of Consolidated Financial Performance" represent percentage of sales.
NIDEC finalized the provisional accounting treatment for the business combination in the three months ended March 31, 2017.
Condensed quarterly consolidated financial statements for the six months ended September 30, 2016 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
NIDEC partly finalized the provisional accounting treatment for the business combination in the three months ended September 30, 2017. Consolidated financial statements for the year ended March 31, 2017 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
Not applicable.
Notes to Condensed Quarterly Consolidated Financial Statements
Nidec Corporation published this content on 24 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 October 2017 06:32:09 UTC.
Original documenthttp://www.nidec.com/en-Global/corporate/news/2017/news1024-01/
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