Nidec : 1st Quarter Ended June 30, 2021

English translation

Financial Statements Summary for the Three Months Ended June 30, 2021 [IFRS](Consolidated)

Company name:	NIDEC CORPORATION	URL https://www.nidec.com/en/			July 21, 2021
Stock listing:	Tokyo Stock Exchange - First Section
Code number:	6594
Representative:	Jun Seki, Representative Director, President and CEO
Information on contact:	Masahiro Nagayasu, General Manager of the Investor Relations & CSR Promotion
	Department Tel: [phone] [e-mail]
Scheduled date of filing of Japanese quarterly report:	August 6, 2021
Scheduled date of dividend payable:				-
Supplemental materials for quarterly results:			Yes
Quarterly earning presentation held:				Yes	(Amount Unit: Yen in Millions, unless otherwise indicated)
												(Amounts are rounded to nearest million yen)
1. Consolidated Financial Results for the Three Months ended June 30, 2021 (April 1, 2021 to June 30, 2021)
(1) Consolidated Operating Results									(Percentage represents year-on-year changes)
		Net sales		Operating profit		Profit before		Profit attributable to		Comprehensive
				income taxes		owners of the parent	income for the period
For the three months ended			%			%				%			%			%
447,470		32.8	44,555	60.3		43,752		59.6		33,451	66.8		38,698	89.5
June 30, 2021
For the three months ended	336,876		-	27,793	-		27,410		-		20,058	-		20,422	-
June 30, 2020
						Earnings per share attributable to		Earnings per share attributable to
						owners of the parent-basic (Yen)		owners of the parent-diluted (Yen)
For the three months ended June 30, 2021								57.14						-
For the three months ended June 30, 2020								34.24						-

(Notes) 1. "Earnings per share attributable to owners of the parent-basic" and "Earnings per share attributable to owners of the parent-diluted" have been calculated based on figures of "Profit attributable to owners of the parent".

1. 2. NIDEC finalized the provisional accounting treatment for the business combination in the three months ended June 30, 2021. Consolidated financial statements for the year ended March 31, 2021 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

2. Consolidated Financial Position

	Total assets	Total equity	Total equity attributable to	Ratio of total equity attributable to
	owners of the parent	owners of the parent to total assets
				%
As of June 30, 2021	2,281,013	1,127,656	1,110,766	48.7
As of March 31, 2021	2,256,024	1,113,935	1,096,020	48.6

2. Dividends

			Dividends per share (Yen)
		1st quarter end	2nd quarter end	3rd quarter end	Fiscal year end	Total
Year ended March 31, 2021	-	30.00	-	30.00	60.00
Year ending March 31,	2022	-
Year ending March 31,	2022 (Forecast)		30.00	-	30.00	60.00

(Note) Revision of previously announced dividend targets during this reporting period: None.

3. Forecast of Consolidated Financial Performance for the Year ending March 31, 2022 (April 1, 2021 to March 31, 2022) (Percentage represents year-on-year changes)

		Net sales		Operating profit	Profit before	Profit attributable to	Earnings per share
			attributable to owners
							income taxes	owners of the parent	of the parent-basic
				%		%		%		%	(Yen)
	2nd Quarter end	800,000		6.4	80,000	15.7	78,000	18.2	60,000	23.0	102.44
	Fiscal year end	1,700,000		5.1	180,000	12.5	175,000	14.4	140,000	14.8	239.02
	(Note) Revision of the previously announced financial performance forecast during this reporting period: None

Notes
(1)	Changes in Significant Subsidiaries during This Period (changes in "specified subsidiaries" (tokutei kogaisha)
	resulting in the change in scope of consolidation)	: None
(2)	Changes in Accounting Policies and Changes in Accounting Estimates:
1.	Changes in accounting policies required by IFRS	: None
2.	Changes in accounting policies due to other reasons	: None
3.	Changes in accounting estimates	: None

1. Number of Shares Issued (Ordinary Shares)

1. Number of shares issued at the end of the period (including treasury stock):

	As of June 30, 2021:	596,284,468	As of March 31, 2021: 596,284,468
2.	Number of treasury stock at the end of the period:
	As of June 30, 2021:	10,948,354	As of March 31, 2021: 10,552,192
3.	Weighted-average number of shares outstanding during the period:
	For the three months ended June 30, 2021: 585,465,018	For the three months ended June 30, 2020: 585,733,720

*This quarterly report is not subject to quarterly review procedures by certified public accountants or an auditing firm. *Explanation for appropriate use of forecast and other notes

Forward-looking statements, such as forecast of consolidated financial performance, stated in this document are based on information currently possessed by NIDEC or certain assumptions that NIDEC has deemed as rational. NIDEC cannot make any assurances that the contents mentioned in these forward-looking statements will ever materialize. Actual financial performance could be significantly different from NIDEC's expectations as a result of various factors. For the assumptions used and other notes, please refer to "1. Overview of Operating Results, Etc. (3). Explanation Regarding Future Forecast Information of Consolidated Financial Results" on page 12.

In this document, the terms "we", "us", "our" and "NIDEC" refer to Nidec Corporation and consolidated subsidiaries or, as the context may require, Nidec Corporation on a non-consolidated basis.

NIDEC finalized the provisional accounting treatment for the business combination in the three months ended June 30, 2021. Consolidated financial statements for the year ended March 31, 2021 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 three months ended June 30, 2021 are expected to be published on our corporate website on July 21, 2021.

1. Overview of Operating Results, Etc.

(1) Overview of Operating Results for the Three Months Ended June 30, 2021

1. Overview of Business Environment for the Three Months Ended June 30, 2021

The World Bank forecasts the global economic growth rate for the calendar year 2021 to be + 5.6% as of June 2021, which is 1.5

points higher than the previous announcement in January 2021, reflecting the faster vaccination pace in many developed countries and additional financial support in the United States. The business environment is expected to remain uncertain due to emerging risk factors such as the COVID-19 spreading again, soaring raw material prices, and shortages of semiconductors and other components. Under these circumstances, we have set a new medium-term strategic target for fiscal year 2025 (Vision2025) and aim to be a growing company that is strongly adapted to changes in the environment.

The outline is as follows.

FY2021 to FY2022

1. Target for consolidated net sales : ¥2 trillion
2. Productivity improvement : To increase sales and profit per employee by 30%
3. ROIC (Return On Invested Capital) : over 10%
4. To be a top-rated ESG company

FY2023 to FY2025

1. Target for consolidated net sales : ¥4 trillion
2. Productivity improvement : To double sales and profit per employee
3. ROIC (Return On Invested Capital) : over 15%
4. To be a top-rated ESG company

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2. Consolidated Operating Results

Consolidated Operating Results for the Three Months Ended June 30, 2021 ("this three-month period"), Compared to the Three Months Ended June 30, 2020 ("the same period of the previous year")

(Yen in millions)

	For the three months ended June 30,	Increase or	Ratio of change
			decrease
	2020	2021
Net sales	336,876	447,470	110,594	32.8%
Operating profit	27,793	44,555	16,762	60.3%
Operating profit ratio	8.3 %	10.0%	-	-
Profit before income taxes	27,410	43,752	16,342	59.6%
Profit for the period from continuing operations	20,461	33,384	12,923	63.2%
Loss for the period from discontinued operations	(74)	(39)	35	-
Profit attributable to owners of the parent	20,058	33,451	13,393	66.8%

Consolidated net sales from continuing operations increased 32.8% to ¥447,470 million for this three-month period compared to the same period of the previous year, renewing the highest record of the quarterly consolidated accounting period. Operating profit increased 60.3% to ¥44,555 million for this three-month period compared to the same period of the previous year mainly due to thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 Project in addition to increased sales of appliance, commercial and industrial products and automotive products.

Profit before income taxes increased 59.6% to ¥43,752 million and profit for the period from continuing operations increased 63.2% to ¥33,384 million compared to the same period of the previous year, respectively.

Profit attributable to owners of the parent increased 66.8% to ¥33,451 million for this three-month period compared to the same period of the previous year.

The average exchange rate between the Japanese yen and the U.S. dollar for this three-month period was ¥109.49 to the U.S. dollar, which reflected an approximately 2% depreciation of the Japanese yen against the U.S. dollar, compared to the same period of the previous year. The average exchange rate between the Japanese yen and the Euro for this three-month period was ¥131.96 to the Euro, which reflected an approximately 11% depreciation of the Japanese yen against the Euro, compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had positive effects on net sales by approximately ¥17,000 million and on operating profit by approximately ¥1,000 million for this three-month period compared to the same period of the previous year.

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Operating Results by Product Category for This Three-Month Period Compared to the Same Period of the Previous Year

Small precision motors

					(Yen in millions)
		For the three months ended June 30,	Increase or decrease	Ratio of change
		2020	2021
Net sales to external customers	104,418	101,306	(3,112)	(3.0)%
	Spindle motors for hard disk	37,043	23,037	(14,006)	(37.8)%
	drives (HDDs)
	Other small precision motors	67,375	78,269	10,894	16.2%
Operating profit	14,283	12,305	(1,978)	(13.8)%
Operating profit ratio	13.7%	12.1%	-	-

Net sales of this category decreased 3.0% to ¥101,306 million for this three-month period compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had a positive effect on net sales of this category by approximately ¥4,400 million for this three-month period compared to the same period of the previous year.

Net sales of spindle motors for HDDs decreased 37.8% to ¥23,037 million for this three-month period compared to the same period of the previous year, mainly due to a decrease in the number of units sold. On the other hand, net sales of other small precision motors increased 16.2% to ¥78,269 million for this three-month period compared to the same period of the previous year by engaging in new demands one after another by launching a number of new products such as IT fan motors, high-efficiency motors for home appliance, and thermal solution products for game consoles and other products.

Although NIDEC made thorough manufacturing cost improvement and others by in-house production of parts, operating profit of this category decreased 13.8% to ¥12,305 million for this three-month period compared to the same period of the previous year as a result of advanced investments for launching new products, which are customer-based. The fluctuations of the foreign currency exchange rates had a positive effect on operating profit of this category by approximately ¥1,400 million for this three-month period compared to the same period of the previous year.

Automotive products

				(Yen in millions)
	For the three months ended June 30,	Increase or decrease	Ratio of change
	2020	2021
Net sales to external customers	56,797	97,747	40,950	72.1%
Operating profit (loss)	(258)	4,892	5,150	-
Operating profit ratio	(0.5)%	5.0%	-	-

Net sales of this category increased 72.1% to ¥97,747 million for this three-month period compared to the same period of the previous year under the recovery trend from a decrease in global demand for the same period of the previous year. The fluctuations of the foreign currency exchange rates had a positive effect on net sales of this category by approximately ¥5,200 million for this three- month period compared to the same period of the previous year.

As a result of improvement of profitability through WPR4 project with our total efforts, operating profit of this category increased ¥5,150 million to ¥4,892 million for this three-month period compared to the same period of the previous year mainly due to the recovery in sales, although NIDEC continued to record advanced development costs for the traction motor system (E-Axle), which is experiencing rapid growth in demand. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥200 million for this three-month period compared to the same period of the previous year.

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