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MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Nidec Corporation    6594   JP3734800000

NIDEC CORPORATION

(6594)
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Nidec : Half-year Ended September 30, 2020

10/26/2020 | 01:25am EST

English translation

Financial Statements Summary for the Six Months Ended September 30, 2020 [IFRS](Consolidated)

Company name:

NIDEC CORPORATION

URL https://www.nidec.com/en/

October 26, 2020

Stock listing:

Tokyo Stock Exchange - First Section

Code number:

6594

Representative:

Shigenobu Nagamori, Representative Director, Chairman and CEO

Information on contact:

Masahiro Nagayasu, General Manager of the Investor Relations & CSR Promotion

Department Tel: +81-75-935-6140 ir@nidec.com

Scheduled date of filing of Japanese quarterly report:

November 12, 2020

Scheduled date of dividend payable:

December 1, 2020

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 six months ended September 30, 2020 (April 1, 2020 to September 30, 2020)

(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 six months ended

%

%

%

%

%

751,794

0.1

69,180

12.0

66,005

4.2

48,783

79.2

40,554

-

September 30, 2020

For the six months ended

751,277

-

61,787

-

63,330

-

27,227

-

(23,098)

-

September 30, 2019

Earnings per share attributable to

Earnings per share attributable to

owners of the parent-basic (Yen)

owners of the parent-diluted (Yen)

For the six months ended September 30, 2020

83.28

-

For the six months ended September 30, 2019

46.26

-

(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. NIDEC finalized a part or all of the provisional accounting treatment for the business combination in the six months ended September 30, 2020. Condensed quarterly consolidated financial statements and consolidated financial statements for the year ended March 31, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. From the three months ended June 30, 2019, the business of compressor for refrigerator of Secop has been classified as discontinued operations. As a result, the amounts of net sales, operating profit and profit before income taxes no longer include discontinued operations, presenting only the amounts for continuing operations.
    2. NIDEC implemented a two-for-one common stock split, effective April 1, 2020. Earnings per share attributable to owners of the parent-basic and Earnings per share attributable to owners of the parent-diluted were calculated on the assumption that the relevant stock split had been implemented at the beginning of the year ended March 31, 2020.
  1. 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 September 30, 2020

2,078,544

985,577

966,604

46.5

As of March 31, 2020

2,122,493

967,633

947,290

44.6

2. Dividends

Dividends per share (Yen)

1st quarter end

2nd quarter end

3rd quarter end

Fiscal year end

Total

Year ended March 31, 2020

-

55.00

-

60.00

115.00

Year ending March 31,

2021

-

30.00

Year ending March 31,

2021 (Forecast)

-

30.00

60.00

(Notes) 1. Revision of previously announced dividend targets during this reporting period: None

2. NIDEC implemented a two-for-one common stock split, effective April 1, 2020. However, the actual amounts of dividends for the year ended March 31, 2020 have not been retroactively adjusted and are shown on a pre-stock split basis.

3. Forecast of Consolidated Financial Performance for the Year ending March 31, 2021 (April 1, 2020 to March 31, 2021) (Percentage represents year-on-year changes)

Profit before

Profit attributable to

Earnings per share

Net sales

Operating profit

attributable to owners

income taxes

owners of the parent

of the parent-basic

%

%

%

%

(Yen)

Fiscal year end

1,550,000

1.0

140,000

29.0

136,000

29.3

105,000

79.6

179.26

(Note) Revision of the previously announced financial performance forecast during this reporting period: Yes

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 September 30, 2020:

596,284,468

As of March 31, 2020: 596,284,468

2.

Number of treasury stock at the end of the period:

As of September 30, 2020:

10,551,320

As of March 31, 2020: 10,530,534

3.

Weighted-average number of shares outstanding during the period:

For the six months ended September 30, 2020: 585,733,592

For the six months ended September 30, 2019: 588,587,131

(Note) NIDEC implemented a two-for-one common stock split, effective April 1, 2020. Number of shares issued (ordinary shares) was calculated on the assumption that the relevant stock split had been implemented at the beginning of the year ended March 31, 2020.

*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 six months ended September 30, 2020. Condensed quarterly consolidated financial statements and consolidated financial statements for the year ended March 31, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

From the three months ended June 30, 2019, the business of compressor for refrigerator of Secop has been classified as discontinued operations. As a result, the amounts of net sales, operating profit and profit before income taxes no longer include discontinued operations, presenting only the amounts for continuing operations.

Investor presentation materials relating to our financial results for the six months ended September 30, 2020 are expected to be published on our corporate website on October 26, 2020.

1. Overview of Operating Results, Etc.

(1) Overview of Operating Results for the Six Months Ended September 30, 2020

1. Overview of Business Environment for the Six Months Ended September 30, 2020

During the six months ended September 30, 2020, the global economy saw the International Monetary Fund (IMF)'s World

Economic Outlook (WEO) forecasting a negative growth of 4.4% in 2020 due to the spread of the new coronavirus (COVID-19) infection, an upward revision of 0.8 points from June. Although the extent of deterioration has narrowed due to a huge financial stimulus, it is significantly worse than in 2009 (down 0.1%) during the global financial crisis. Major countries have launched huge fiscal stimulus measures of 12 trillion dollars in total, and the global economy is returning to a recovery trajectory from the July- September period, but the recovery process is expected to be slow as huge public and private debt constrains economic growth. According to WEO, the U.S. hastened to restart its economy, so the number of infected people is the largest in the world, but the economy is expected to recover faster than expected. Meanwhile China is expected to grow by 1.9%, the only country expected to witness a positive growth in 2020. In Japan, an increase in the number of infected people is relatively restrained, and the growth rate in 2020 is -5.3%, which is revised upward by 0.5 points from the forecast as of June, but it is still expected to grow at the same level as in 2009 (down 5.4%) immediately after the global financial crisis.

1

2. Consolidated Operating Results

Consolidated Operating Results for the Six Months Ended September 30, 2020 ("this six-month period"), Compared to the Six Months Ended September 30, 2019 ("the same period of the prior year")

(Yen in millions)

For the six months ended September 30,

Increase or

Ratio of change

decrease

2019

2020

Net sales

751,277

751,794

517

0.1%

Operating profit

61,787

69,180

7,393

12.0%

Operating profit ratio

8.2 %

9.2%

-

-

Profit before income taxes

63,330

66,005

2,675

4.2%

Profit for the period from continuing operations

48,371

49,438

1,067

2.2%

Loss for the period from discontinued operations

(19,955)

(99)

19,856

-

Profit attributable to owners of the parent

27,227

48,783

21,556

79.2%

Consolidated net sales from continuing operations increased 0.1% to ¥751,794 million for this six-month period compared to the same period of the prior year. Operating profit increased 12.0% to ¥69,180 million for this six-month period compared to the same period of the prior year mainly due to thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 Project.

Profit before income taxes increased 4.2% to ¥66,005 million and profit for the period from continuing operations increased 2.2% to ¥49,438 million compared to the same period of the prior year, respectively.

Profit attributable to owners of the parent, including loss for the period from discontinued operations, increased 79.2% to ¥48,783 million, due to the loss related to sales of the business of compressor for refrigerator of Secop and others of the prior year.

The average exchange rate between the Japanese yen and the U.S. dollar for this six-month period was ¥106.92 to the U.S. dollar, which reflected an approximately 2% appreciation 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 ¥121.30 to the Euro, which reflected a slight appreciation 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 negative effect on net sales by approximately ¥9,300 million and on operating profit by approximately ¥400 million for this six-month period compared to the same period of the prior year.

NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2020. Condensed quarterly consolidated financial statements for the six months ended September 30, 2019 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. From the three months ended June 30, 2019, the business of compressor for refrigerator of Secop has been classified as discontinued operations. As a result, the amounts of net sales, operating profit and profit before income taxes no longer include discontinued operations, presenting only the amounts for continuing operations.

2

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

Small precision motors

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

219,810

223,462

3,652

1.7%

Spindle motors for hard disk

77,614

84,206

6,592

8.5%

drives (HDDs)

Other small precision motors

142,196

139,256

(2,940)

(2.1)%

Operating profit

24,989

33,099

8,110

32.5%

Operating profit ratio

11.4%

14.8%

-

-

Net sales of this category increased 1.7% to ¥223,462 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 negative effect on net sales of this category by approximately ¥2,500 million for this six-month period compared to the same period of the prior year.

Net sales of spindle motors for HDDs increased 8.5% to ¥84,206 million for this six-month period compared to the same period of the prior year. The number of units sold of spindle motors for HDDs decreased approximately 10.2% compared to the same period of the prior year, but the sales increased due to strong sales of HDD motors for data centers and others. Net sales of other small precision motors decreased 2.1% to ¥139,256 million for this six-month period compared to the same period of the prior year.

Operating profit of this category increased 32.5% to ¥33,099 million for this six-month period compared to the same period of the prior year, mainly due to thorough manufacturing cost improvement and others. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥300 million for this six-month period compared to the same period of the prior year.

Automotive products

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

150,832

149,135

(1,697)

(1.1)%

Operating profit

13,582

4,397

(9,185)

(67.6)%

Operating profit ratio

9.0%

2.9%

-

-

Net sales of this category decreased 1.1% to ¥149,135 million for this six-month period compared to the same period of the previous year. This decrease was due to significant decrease in sales of actuator products of Nidec Motors & Actuators and control valves of Nidec Tosok Corporation and others, while the impact of the acquisition of OMRON Automotive Electronics Co. Ltd. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥1,100 million for this six-month period compared to the same period of the previous year.

Operating profit of this category decreased 67.6% to ¥4,397 million for this six-month period compared to the same period of the previous year, due to the continued inclusion of development costs for traction motor systems (E-Axle) and others, whose demand is expanding rapidly, while improving all manufacturing costs through WPR4 Project with our total efforts. The fluctuations of the foreign currency exchange rates had a positive effect on operating profit of this category by approximately ¥200 million for this six- month period compared to the same period of the previous year.

3

Appliance, commercial and industrial products

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

270,580

273,334

2,754

1.0%

Operating profit

18,615

22,022

3,407

18.3%

Operating profit ratio

6.9%

8.1%

-

-

Net sales of this category increased 1.0% to ¥273,334 million for this six-month period compared to the same period of the prior year, primarily due to the impact of the acquisition of Embraco. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥4,200 million for this six-month period compared to the same period of the previous year.

Operating profit of this category increased 18.3% to ¥22,022 million for this six-month period compared to the same period of the previous year, mainly due to manufacturing cost improvement and fixed cost rationalization. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by ¥300 million for this six-month period compared to the same period of the previous year.

Machinery

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

76,980

74,650

(2,330)

(3.0)%

Operating profit

11,189

12,329

1,140

10.2%

Operating profit ratio

14.5%

16.5%

-

-

Net sales of this category decreased 3.0% to ¥74,650 million for this six-month period compared to the same period of the previous year, due to lower sales in card readers and speed reducers and other factors.

Operating profit of this category increased 10.2% to ¥12,329 million for this six-month period compared to the same period of the previous year, due to the effect of manufacturing cost improvement and fixed cost rationalization, despite a decrease in profit due to the decrease in sales.

Electronic and optical components

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

30,805

29,607

(1,198)

(3.9)%

Operating profit

2,388

3,317

929

38.9%

Operating profit ratio

7.8%

11.2%

-

-

Net sales of this category decreased 3.9% to ¥29,607 million for this six-month period compared to the same period of the previous year.

Operating profit of this category increased 38.9% to ¥3,317 million for this six-month period compared to the same period of the previous year, due to manufacturing cost improvement.

4

Other products

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

2,270

1,606

(664)

(29.3)%

Operating profit

332

181

(151)

(45.5)%

Operating profit ratio

14.6%

11.3%

-

-

Net sales of this category decreased 29.3% to ¥1,606 million and operating profit of this category decreased 45.5% to ¥181 million for this six-month period compared to the same period of the prior year.

5

Consolidated Operating Results for the Three Months Ended September 30, 2020 ("2Q"), Compared to the Previous Three Months Ended June 30, 2020 ("1Q")

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales

336,876

414,918

78,042

23.2%

Operating profit

27,793

41,387

13,594

48.9%

Operating profit ratio

8.3%

10.0%

-

-

Profit before income taxes

27,410

38,595

11,185

40.8%

Profit for the period from continuing

20,461

28,977

8,516

41.6%

operations

Loss for the period from discontinued

(74)

(25)

49

-

operations

Profit attributable to owners of the parent

20,058

28,725

8,667

43.2%

Consolidated net sales from continuing operations increased 23.2% to ¥414,918 million for 2Q compared to 1Q, renewing the highest record of the quarterly consolidated accounting period. Operating profit increased 48.9% to ¥41,387 million for 2Q compared to 1Q due to thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 Project. The operating profit ratio recovered to double digits at 10.0%. Profit before income taxes increased 40.8% to ¥38,595 million and profit for the period from continuing operations increased 41.6% to ¥28,977 million for 2Q compared to 1Q.

Profit attributable to owners of the parent, including loss for the period from discontinued operations, increased 43.2% to ¥28,725 million for 2Q compared to 1Q.

The average exchange rate between the Japanese yen and the U.S. dollar for 2Q was ¥106.22 to the U.S. dollar, which reflected an approximately 1% appreciation of the Japanese yen against the U.S. dollar, compared to 1Q. The average exchange rate between the Japanese yen and the Euro for 2Q was ¥124.11 to the Euro, which reflected an approximately 5% depreciation of the Japanese yen against the Euro, compared to 1Q. The fluctuations of the foreign currency exchange rates had a negative effect on net sales by approximately ¥1,000 million and a negative effect on operating profit by approximately ¥500 million for 2Q compared to 1Q.

NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2020. Condensed quarterly consolidated financial statements for the three months ended June 30, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination. From the three months ended June 30, 2019, the business of compressor for refrigerator of Secop has been classified as discontinued operations. As a result, the amounts of net sales, operating profit and profit before income taxes no longer include discontinued operations, presenting only the amounts for continuing operations.

6

Operating Results by Product Category for 2Q Compared to 1Q

Small precision motors

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

104,418

119,044

14,626

14.0%

Spindle motors for hard disk

37,043

47,163

10,120

27.3%

drives (HDDs)

Other small precision motors

67,375

71,881

4,506

6.7%

Operating profit

14,283

18,816

4,533

31.7%

Operating profit ratio

13.7%

15.8%

-

-

Net sales of this category increased 14.0% to ¥119,044 million and the impact of foreign exchange rates decreased sales by approximately ¥700 million for 2Q compared to 1Q.

Net sales of spindle motors for HDDs increased 27.3% to ¥47,163 million for 2Q compared to 1Q. The number of units sold of spindle motors for HDDs increased approximately 25.4% for 2Q compared to 1Q. Net sales of other small precision motors increased 6.7% to ¥71,881 million for 2Q compared to 1Q.

Operating profit of this category increased 31.7% to ¥18,816 million for 2Q compared to 1Q, due to the increase in sales and others. The impact of foreign exchange rates decreased operating profit by approximately ¥200 million for 2Q compared to 1Q.

Automotive products

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

56,797

92,338

35,541

62.6%

Operating profit (loss)

(258)

4,655

4,913

-

Operating profit ratio

(0.5)%

5.0%

-

-

Net sales of this category increased 62.6% to ¥92,338 million for 2Q compared to 1Q, mainly due to an increase in sales of automotive electronics components and actuator products. The fluctuations of the foreign currency exchange rates had a positive effect on net sales of this category by approximately ¥900 million for 2Q compared to 1Q.

Operating profit of this category increased ¥4,913 million to ¥4,655 million for 2Q compared to 1Q due to the improvement of all manufacturing costs through WPR4 project with our total efforts, while continually including development costs for traction motor system (E-Axle) and others, whose demand is expanding rapidly. Operating profit ratio of existing products other than traction motors recovered to double digits due to the increase in sales and manufacturing cost improvements through the WPR4 project. The fluctuations of the foreign exchange rates had a positive effect on operating profit of this category by approximately ¥200 million for 2Q compared to 1Q.

7

Appliance, commercial and industrial products

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

125,096

148,238

23,142

18.5%

Operating profit

8,967

13,055

4,088

45.6%

Operating profit ratio

7.2%

8.8%

-

-

Net sales of this category increased 18.5% to ¥148,238 million for 2Q compared to 1Q, mainly due to the recovery of global demand. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥1,000 million for 2Q compared to 1Q.

Operating profit of this category increased 45.6% to ¥13,055 million for 2Q compared to 1Q, mainly due to an increasing sales, manufacturing cost improvement and fixed cost rationalization. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥200 million for 2Q compared to 1Q.

Machinery

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

35,729

38,921

3,192

8.9%

Operating profit

6,181

6,148

(33)

(0.5)%

Operating profit ratio

17.3%

15.8%

-

-

Net sales of this category increased 8.9% to ¥38,921 million for 2Q compared to 1Q, mainly due to an increase in sales of LCD panel handling robots and others. Operating profit of this category decreased 0.5% to ¥6,148 million for 2Q compared to 1Q due to a deterioration in the product mix and other factors, despite an increase in profit due to the increase in sales.

Electronic and optical components

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

14,086

15,521

1,435

10.2%

Operating profit

1,496

1,821

325

21.7%

Operating profit ratio

10.6%

11.7%

-

-

Net sales of this category increased 10.2% to ¥15,521 million for 2Q compared to 1Q and operating profit of this category increased 21.7% to ¥1,821 million for 2Q compared to 1Q, mainly due to an increasing sales.

8

Other products

(Yen in millions)

For the three months ended

Increase or decrease

Ratio of change

June 30, 2020

September 30, 2020

Net sales to external customers

750

856

106

14.1%

Operating profit

84

97

13

15.5%

Operating profit ratio

11.2%

11.3%

-

-

Net sales of this category increased 14.1% to ¥856 million for 2Q compared to 1Q and operating profit of this category increased 15.5% to ¥97 million for 2Q compared to 1Q.

9

(2) Financial Position

(Yen in millions)

As of March 31, 2020

As of September 30,

Increase or

2020

decrease

Total assets

2,122,493

2,078,544

(43,949)

Total liabilities

1,154,860

1,092,967

(61,893)

Total equity attributable to owners of the parent

947,290

966,604

19,314

Interest-bearing debt *1

599,951

577,944

(22,007)

Net interest-bearing debt *2

392,965

402,090

9,125

Debt ratio (%) *3

28.3

27.8

(0.5)

Debt to equity ratio ("D/E ratio") (times) *4

0.63

0.60

(0.03)

Net D/E ratio (times) *5

0.41

0.42

0.01

Ratio of total equity attributable to owners of the parent to total

44.6

46.5

1.9

assets (%) *6

(Notes) *1. Interest-bearing debt: The sum of "short term borrowings", "long term debt due within one year" and "long term debt" on the consolidated statements of financial position

*2. Net interest-bearing debt: Interest-bearing debt less "cash and cash equivalents"

*3. Debt ratio: Interest-bearing debt divided by total assets

*4. D/E ratio: Interest-bearing debt divided by total equity attributable to owners of the parent

*5. Net D/E ratio: Net interest-bearing debt divided by total equity attributable to owners of the parent

*6. Ratio of total equity attributable to owners of the parent to total assets: Total equity attributable to owners of the parent divided by total assets

Total assets decreased ¥43,949 million to ¥2,078,544 million as of September 30, 2020 compared to March 31, 2020. This was mainly due to decreases of ¥31,132 million in cash and cash equivalents, and ¥9,751 million in inventories.

Total liabilities decreased ¥61,893 million to ¥1,092,967 million as of September 30, 2020 compared to March 31, 2020. This was mainly due to decreases of ¥31,827 million in trade and other payables, and ¥22,007 million in interest-bearing debt. Specifically, short term borrowings decreased ¥11,242 million to ¥105,712 million, long term debt due within one year decreased ¥13,267 million to ¥98,607 million and long term debt increased ¥2,502 million to ¥373,625 million as of September 30, 2020 compared to March 31, 2020.

As a result, net interest-bearing debt increased to ¥402,090 million as of September 30, 2020 from ¥392,965 million as of March 31, 2020. The debt ratio that includes lease liabilities decreased to 27.8% as of September 30, 2020 from 28.3% as of March 31, 2020. The D/E ratio decreased to 0.60 times as of September 30, 2020 from 0.63 times as of March 31, 2020. The net D/E ratio increased to 0.42 times as of September 30, 2020 from 0.41 times as of March 31, 2020.

Total equity attributable to owners of the parent increased ¥19,314 million to ¥966,604 million as of September 30, 2020 compared to March 31, 2020. Ratio of total equity attributable to owners of the parent to total assets increased to 46.5% as of September 30, 2020 from 44.6% as of March 31, 2020. This was mainly due to an increase in retained earnings of ¥32,507 million, though there was a decrease in other components of equity of ¥9,419 million caused mainly by foreign currency translation adjustments.

NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2020. Consolidated financial statements for the year ended March 31, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

10

Overview of Cash Flow

(Yen in millions)

For the six months ended September 30,

Increase or decrease

2019

2020

Net cash provided by operating activities

73,848

76,114

2,266

Net cash used in investing activities

(180,360)

(52,287)

128,073

Free cash flow *1

(106,512)

23,827

130,339

Net cash (used in) provided by financing activities

74,157

(53,062)

(127,219)

(Note) *1. Free cash flow: The sum of "net cash provided by operating activities" and "net cash used in investing activities".

Cash flows from operating activities for this six-month period came to a net cash inflow of ¥76,114 million. Compared to the same period of the prior year, the cash inflow from operating activities for this six-month period increased ¥2,266 million. This increase was mainly due to increases in profit for the period of ¥20,923 million and in inventories net changes year on year of

¥7,052 million. On the other hand, there was a decrease in loss from sales of discontinued operations of ¥18,282 million, and an increase in accounts receivable net changes year on year of ¥8,260 million.

Cash flows from investing activities for this six-month period came to a net cash outflow of ¥52,287 million. Compared to the same period of the prior year, the net cash outflow from investing activities for this six-month period decreased ¥128,073 million mainly due to decreases in acquisitions of business, net of cash acquired of ¥106,740 million, and in additions to property, plant and equipment of ¥24,203 million.

As a result, we had a positive free cash flow of ¥23,827 million for this six-month period, an increase of ¥130,339 million compared to a negative free cash flow of ¥106,512 million for the same period of the prior year.

Cash flows from financing activities for this six-month period came to a net cash outflow of ¥53,062 million. Compared to the same period of the prior year, the net cash outflow from financing activities for this six-month period increased ¥127,219 million mainly due to a decrease in proceeds from issuance of bonds of ¥50,000 million, an increase of redemption of bonds of ¥35,000 million, and a decrease of short term borrowings net changes year on year of ¥35,906 million.

As a result of the foregoing factors and the impact of foreign exchange fluctuations, the balance of cash and cash equivalents as of September 30, 2020 decreased ¥31,132 million to ¥175,854 million from March 31, 2020. All the above amounts include discontinued operations.

11

(3) Explanation Regarding Future Forecast Information of Consolidated Financial Results

Though the trend of the world economy is returning to a recovery trajectory by large-scale fiscal stimulus mainly in developed countries, it is expected that the unpredictable situation will continue due to the risk factors such as the spread of COVID-19 infection in the Americas, South Asia, Africa and others, the arrival of the second wave in Europe, deterioration of corporate performance, the U.S.-China tension, and the prospect of the U.S. presidential election.

Under such an environment, as the business forecasts in the six months ended September 30, 2020 was stronger than our expectations underlying our previous forecasts announced on July 21, 2020, we are revising our business forecasts for the year ending March 31, 2021.

The forecasts for the year ending March 31, 2021 described below are prepared based on an assumption that exchange rates are US$1 = ¥105 and €1 = ¥117.

Forecast of Consolidated Financial Performance for the Year Ending March 31, 2021

Net sales

¥1,550,000

million

(101.0% compared to the previous fiscal year)

Operating profit

¥140,000

million

(129.0% compared to the previous fiscal year)

Profit before income taxes

¥136,000

million

(129.3% compared to the previous fiscal year)

Profit attributable to owners of the parent

¥105,000

million

(179.6% compared to the previous fiscal year)

(Notes) 1. Consolidated performance is based on IFRS.

2. The calculations for the conversion of Asian currencies into Japanese yen also used the exchange rates, US$1 = ¥105 and €1 = ¥117.

Cautionary Note Regarding Forward-Looking Statements

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.

12

2. Condensed Quarterly Consolidated Financial Statements and Other Information

(1) Condensed Quarterly Consolidated Statements of Financial Position

(Yen in millions)

As of March 31, 2020

As of September 30, 2020

Assets

Current assets

Cash and cash equivalents

206,986

175,854

Trade and other receivables

394,259

402,872

Other financial assets

913

2,619

Income tax receivables

12,885

9,231

Inventories

278,185

268,434

Other current assets

40,309

40,269

Total current assets

933,537

899,279

Non-current assets

Property, plant and equipment

633,604

634,371

Goodwill

310,487

307,248

Intangible assets

191,653

189,327

Investments accounted for using the equity method

3,294

3,065

Other investments

14,479

15,071

Other financial assets

6,888

6,672

Deferred tax assets

18,274

13,624

Other non-current assets

10,277

9,887

Total non-current assets

1,188,956

1,179,265

Total assets

2,122,493

2,078,544

13

(Yen in millions)

As of March 31, 2020

As of September 30, 2020

Liabilities

Current liabilities

Short term borrowings

116,954

105,712

Long term debt due within one year

111,874

98,607

Trade and other payables

345,193

313,366

Other financial liabilities

9,109

4,938

Income tax payables

18,726

17,572

Provisions

30,430

31,288

Other current liabilities

64,884

64,175

Total current liabilities

697,170

635,658

Non-current liabilities

Long term debt

371,123

373,625

Other financial liabilities

4,085

1,948

Retirement benefit liabilities

31,077

31,514

Provisions

942

724

Deferred tax liabilities

45,830

44,530

Other non-current liabilities

4,633

4,968

Total non-current liabilities

457,690

457,309

Total liabilities

1,154,860

1,092,967

Equity

Common stock

87,784

87,784

Additional paid-in capital

114,754

111,086

Retained earnings

924,293

956,800

Other components of equity

(115,791)

(125,210)

Treasury stock

(63,750)

(63,856)

Total equity attributable to owners of the parent

947,290

966,604

Non-controlling interests

20,343

18,973

Total equity

967,633

985,577

Total liabilities and equity

2,122,493

2,078,544

14

  1. Condensed Quarterly Consolidated Statements of Income
    and Condensed Quarterly Consolidated Statements of Comprehensive Income
    For the six month ended September 30, 2019 and 2020

Condensed Quarterly Consolidated Statements of Income

(Yen in millions)

For the six months ended September 30,

2019

2020

Continuing operations

Net Sales

751,277

751,794

Cost of sales

(582,773)

(585,079)

Gross profit

168,504

166,715

Selling, general and administrative expenses

(69,664)

(66,293)

Research and development expenses

(37,053)

(31,242)

Operating profit

61,787

69,180

Financial income

6,050

2,230

Financial expenses

(5,514)

(3,202)

Derivative gain (loss)

(1,730)

(620)

Foreign exchange differences

3,530

(1,303)

Share of net profit (loss) from associate accounting using the

(793)

(280)

equity method

Profit before income taxes

63,330

66,005

Income tax expenses

(14,959)

(16,567)

Profit for the period from continuing operations

48,371

49,438

Discontinued operations

Loss for the period from discontinued operations

(19,955)

(99)

Profit for the period

28,416

49,339

Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period

27,22748,783

1,189556

28,41649,339

15

Condensed Quarterly Consolidated Statements of Comprehensive Income

(Yen in millions)

For the six months ended September 30,

2019

2020

Profit for the period

28,416

49,339

Other comprehensive income, net of taxation

Items that will not be reclassified to net profit or loss:

Remeasurement of defined benefit plans

(972)

(21)

Fair value movements on FVTOCI equity financial assets

(8)

478

Items that may be reclassified to net profit or loss:

Foreign currency translation adjustments

(49,423)

(13,363)

Effective portion of net changes in fair value of cash flow hedges

(1,115)

4,096

Fair value movements on FVTOCI debt financial assets

4

25

Total other comprehensive income for the period, net of taxation

(51,514)

(8,785)

Comprehensive income for the period

(23,098)

40,554

Comprehensive income for the period attributable to:

Owners of the parent

(22,868)

39,814

Non-controlling interests

(230)

740

Comprehensive income for the period

(23,098)

40,554

16

For the three months ended September 30, 2019 and 2020

Condensed Quarterly Consolidated Statements of Income

(Yen in millions)

For the three months ended September 30,

2019

2020

Continuing operations

Net Sales

390,403

414,918

Cost of sales

(301,628)

(321,369)

Gross profit

88,775

93,549

Selling, general and administrative expenses

(36,221)

(36,015)

Research and development expenses

(18,399)

(16,147)

Operating profit

34,155

41,387

Financial income

3,059

806

Financial expenses

(3,213)

(1,523)

Derivative gain (loss)

(676)

(455)

Foreign exchange differences

(432)

(1,511)

Share of net profit (loss) from associate accounting

(498)

(109)

using the equity method

Profit before income taxes

32,395

38,595

Income tax expenses

(7,701)

(9,618)

Profit for the period from continuing operations

24,694

28,977

Discontinued operations

Loss for the period from discontinued operations

(174)

(25)

Profit for the period

24,520

28,952

Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period

23,94328,725

577227

24,52028,952

17

Condensed Quarterly Consolidated Statements of Comprehensive Income

(Yen in millions)

For the three months ended September 30,

2019

2020

Profit for the period

24,520

28,952

Other comprehensive income, net of taxation

Items that will not be reclassified to net profit or loss:

Remeasurement of defined benefit plans

11

27

Fair value movements on FVTOCI equity financial assets

307

(38)

Items that may be reclassified to net profit or loss:

Foreign currency translation adjustments

(15,625)

(10,211)

Effective portion of net changes in fair value of cash flow hedges

(995)

1,394

Fair value movements on FVTOCI debt financial assets

3

8

Total other comprehensive income for the period, net of taxation

(16,299)

(8,820)

Comprehensive income for the period

8,221

20,132

Comprehensive income for the period attributable to:

Owners of the parent

8,330

19,771

Non-controlling interests

(109)

361

Comprehensive income for the period

8,221

20,132

18

(3) Condensed Quarterly Consolidated Statements of Changes in Equity

For the six months ended September 30, 2019

(Yen in millions)

Total equity attributable to owners of the parent

Non-

Common

Additional

Retained

Other

Treasury

controlling

Total equity

paid-in

components

Total

interests

Stock

earnings

stock

capital

of equity

Balance at April 1, 2019

87,784

118,314

900,768

(64,775)

(45,296)

996,795

22,834

1,019,629

Changes in accounting policies

(407)

(407)

(407)

Balance after restatement

87,784

118,314

900,361

(64,775)

(45,296)

996,388

22,834

1,019,222

Comprehensive income

Profit for the period

27,227

27,227

1,189

28,416

Other comprehensive income

(50,095)

(50,095)

(1,419)

(51,514)

Total comprehensive income

(22,868)

(230)

(23,098)

Transactions with owners directly recognized in

equity:

Purchase of treasury stock

(10)

(10)

-

(10)

Dividends paid to the owners of the parent

(16,186)

(16,186)

-

(16,186)

Dividends paid to non-controlling interests

-

(744)

(744)

Share-based payment transactions

135

135

-

135

Transfer to retained earnings

(980)

980

-

-

-

Changes in equity by purchase of shares

of

(1,449)

(1,449)

(564)

(2,013)

consolidated subsidiaries

Other

8

66

(1)

4

77

101

178

Balance at September 30, 2019

87,784

117,008

910,488

(113,891)

(45,302)

956,087

21,397

977,484

For the six months ended September 30, 2020

(Yen in millions)

Total equity attributable to owners of the parent

Non-

Common

Additional

Retained

Other

Treasury

controlling

Total equity

paid-in

components

Total

interests

Stock

earnings

stock

capital

of equity

Balance at April 1, 2020

87,784

114,754

924,293

(115,791)

(63,750)

947,290

20,343

967,633

Comprehensive income

Profit for the period

48,783

48,783

556

49,339

Other comprehensive income

(8,969)

(8,969)

184

(8,785)

Total comprehensive income

39,814

740

40,554

Transactions with owners directly recognized in

equity:

Purchase of treasury stock

(110)

(110)

-

(110)

Dividends paid to the owners of the parent

(17,573)

(17,573)

-

(17,573)

Dividends paid to non-controlling interests

-

(645)

(645)

Share-based payment transactions

81

81

-

81

Transfer to retained earnings

450

(450)

-

-

-

Changes in equity by purchase of shares

of

(3,748)

(3,748)

(1,506)

(5,254)

consolidated subsidiaries

Other

(1)

847

4

850

41

891

Balance at September 30, 2020

87,784

111,086

956,800

(125,210)

(63,856)

966,604

18,973

985,577

19

(4) Condensed Quarterly Consolidated Statements of Cash Flows

(Yen in millions)

For the six months ended September 30,

2019

2020

Cash flows from operating activities:

Profit for the period from continuing operations

48,371

49,438

Profit (loss) for the period from discontinued operations

(19,955)

(99)

Profit for the period

28,416

49,339

Adjustments to reconcile profit for the period to net cash

provided by operating activities

Depreciation and amortization

40,127

47,990

Loss (gain) from sales, disposal or impairment of property,

958

1,578

plant and equipment

Loss from sales of discontinued operations

18,381

99

Financial expenses (income)

(716)

1,135

Share of net loss (profit) from associate accounting using the

793

280

equity method

Deferred income taxes

2,253

1,315

Current income taxes

14,347

15,252

Foreign currency adjustments

(2,205)

(4,704)

Increase (decrease) in retirement benefit liability

1,249

524

Decrease (increase) in accounts receivable

(8,464)

(16,724)

Decrease (increase) in inventories

747

7,799

Increase (decrease) in accounts payable

1,920

(1,979)

Other, net

(13,781)

(12,054)

Interests and dividends received

5,834

1,911

Interests paid

(5,361)

(2,944)

Income taxes paid

(10,650)

(12,703)

Net cash provided by operating activities

73,848

76,114

20

(Yen in millions)

For the six months ended September 30,

2019

2020

Cash flows from investing activities:

Additions to property, plant and equipment

(71,732)

(47,529)

Proceeds from sales of property, plant and

1,005

1,513

equipment

Additions to intangible assets

(5,477)

(6,829)

Proceeds from sales of discontinued operations

5,771

2,650

Acquisitions of business, net of cash acquired

(109,597)

(2,857)

Other, net

(330)

765

Net cash used in investing activities

(180,360)

(52,287)

Cash flows from financing activities:

Increase (decrease) in short term borrowings

24,232

(11,674)

Proceeds from issuance of long term debt

2,746

-

Repayments of long term debt

(18,663)

(17,679)

Proceeds from issuance of bonds

100,000

50,000

Redemption of bonds

(15,000)

(50,000)

Payments for acquisition of interests in subsidiaries

(2,035)

(5,310)

from noncontrolling interests

Purchase of treasury stock

(10)

(110)

Dividends paid to the owners of the parent

(16,186)

(17,573)

Other, net

(927)

(716)

Net cash (used in) provided by financing activities

74,157

(53,062)

Effect of exchange rate changes on cash and

(16,628)

(1,897)

cash equivalents

Net increase (decrease) in cash and cash equivalents

(48,983)

(31,132)

Cash and cash equivalents at beginning of period

242,267

206,986

Cash and cash equivalents at end of period

193,284

175,854

21

  1. Notes to Condensed Quarterly Consolidated Financial Statements Notes Regarding Going Concern Assumption
    Not applicable.

Notes to Condensed Quarterly Consolidated Financial Statements

1. Reporting entity

Nidec Corporation (the "Company") is a corporation located in Japan, whose shares are listed on the Tokyo Stock Exchange. The registered addresses of headquarters and principal business offices are available on the Company's website

(https://www.nidec.com/en/).

Condensed quarterly consolidated financial statements as of September 30, 2020 and for the six months then ended consist of the Company and its consolidated subsidiaries ("NIDEC") and interests in associates of NIDEC.

NIDEC mainly designs, develops, produces, and sells products as described below:

  1. Small precision motors, which include spindle motors for hard disk drives, brushless motors, fan motors, vibration motors, brush motors and motor applications.
  2. Automotive products, which include automotive motors and components.
  3. Appliance, commercial and industrial products, which include home appliance, commercial and industrial motors and related products.
  4. Machinery, which includes industrial robots, card readers, test systems, press machines and power transmission drives.
  5. Electronic and optical components, which include switches, trimmer potentiometers, lens units and camera shutters.
  6. Others, which include services.

2. Basis of preparation

  1. 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 in 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, 2020.

(2) 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.

(3) 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.

22

3. 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, 2020. Income taxes for the six months ended September 30, 2020 are computed using the estimated annual effective tax rate.

4. Significant accounting estimates, judgments and assumptions

The preparation of the condensed quarterly consolidated financial statements requires management to make estimates, judgments

and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the end of the reporting period and the reported amounts of income and expenses during the reporting period. Actual results may differ from those estimates.

The estimates and the assumptions are reviewed on an ongoing basis, and the effects resulting from the revisions of accounting estimates are recognized in the period in which the estimates are revised and in future periods.

Significant accounting estimates and judgments that accompany estimates for the condensed quarterly consolidated financial statements as of September 30, 2020 are same as those estimates and judgments for the consolidated financial statements for the year ended March 31, 2020.

5. Business combinations

NIDEC adopts the provisions of IFRS 3 "Business Combinations".

During the three months ended June 30, 2020, NIDEC completed its valuation of the assets acquired and the liabilities assumed

upon the acquisition of the compressor business ("Embraco") and Roboteq, Inc. in the previous fiscal year. In addition, during the three months ended September 30, 2020, NIDEC completed its valuation of the assets acquired and the liabilities assumed upon the acquisition of OMRON Automotive Electronics Co. Ltd. (currently, Nidec Mobility Corporation) in the previous fiscal year. NIDEC's consolidated financial statements for the year ended March 31, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

Of the assets acquired and the liabilities assumed upon the acquisitions of companies in the six months ended September 30, 2020, the assets and liabilities which are currently under evaluation have been recorded on NIDEC's consolidated statements of financial position based on provisional management estimation as of September 30, 2020.

23

3. Others

  1. Quarterly Financial Data for the three months ended September 30, 2020 and June 30, 2020
    (Yen in millions)

For the three months ended

June 30, 2020

September 30, 2020

Net sales

336,876

414,918

Operating profit

27,793

41,387

Profit before income taxes

27,410

38,595

Profit for the period

20,387

28,952

Profit attributable to owners of the parent

20,058

28,725

(2) Information by Product Category

For the six months ended September 30, 2019

(Yen in millions)

Small

Appliance,

Electronic

Automotive

commercial

and

Eliminations/

precision

Machinery

Others

Total

Consolidated

Products

and industrial

optical

Corporate

motors

products

components

Net sales:

External sales

219,810

150,832

270,580

76,980

30,805

2,270

751,277

-

751,277

Intersegment

3,262

805

2,608

7,561

3,133

968

18,337

(18,337)

-

Total

223,072

151,637

273,188

84,541

33,938

3,238

769,614

(18,337)

751,277

Operating expenses

198,083

138,055

254,573

73,352

31,550

2,906

698,519

(9,029)

689,490

Operating profit

24,989

13,582

18,615

11,189

2,388

332

71,095

(9,308)

61,787

For the six months ended September 30, 2020

(Yen in millions)

Small

Appliance,

Electronic

Automotive

commercial

and

Eliminations/

precision

Machinery

Others

Total

Consolidated

Products

and industrial

optical

Corporate

motors

products

components

Net sales:

External sales

223,462

149,135

273,334

74,650

29,607

1,606

751,794

-

751,794

Intersegment

1,577

594

2,699

4,353

1,813

418

11,454

(11,454)

-

Total

225,039

149,729

276,033

79,003

31,420

2,024

763,248

(11,454)

751,794

Operating expenses

191,940

145,332

254,011

66,674

28,103

1,843

687,903

(5,289)

682,614

Operating profit

33,099

4,397

22,022

12,329

3,317

181

75,345

(6,165)

69,180

.

24

For the three months ended September 30, 2019

(Yen in millions)

Small

Appliance,

Electronic

Automotive

commercial

and

Eliminations/

precision

Machinery

Others

Total

Consolidated

Products

and industrial

optical

Corporate

motors

products

components

Net sales:

External sales

111,804

75,344

147,571

38,894

15,635

1,155

390,403

-

390,403

Intersegment

1,347

344

1,331

3,425

1,810

465

8,722

(8,722)

-

Total

113,151

75,688

148,902

42,319

17,445

1,620

399,125

(8,722)

390,403

Operating expenses

98,656

68,873

138,962

36,437

16,348

1,476

360,752

(4,504)

356,248

Operating profit

14,495

6,815

9,940

5,882

1,097

144

38,373

(4,218)

34,155

For the three months ended September 30, 2020

(Yen in millions)

Small

Appliance,

Electronic

Automotive

commercial

and

Eliminations/

precision

Machinery

Others

Total

Consolidated

Products

and industrial

optical

Corporate

motors

products

components

Net sales:

External sales

119,044

92,338

148,238

38,921

15,521

856

414,918

-

414,918

Intersegment

876

312

1,559

2,198

1,072

196

6,213

(6,213)

-

Total

119,920

92,650

149,797

41,119

16,593

1,052

421,131

(6,213)

414,918

Operating expenses

101,104

87,995

136,742

34,971

14,772

955

376,539

(3,008)

373,531

Operating profit

18,816

4,655

13,055

6,148

1,821

97

44,592

(3,205)

41,387

(Notes) 1. Product categories are classified based on similarities in product type, product attributes, and production and sales methods.

2. Major products of each product category:

  1. Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.
  2. Automotive products: Automotive motors and components.
  3. Appliance, commercial and industrial products: Home appliance, commercial and industrial motors and related products.
  4. Machinery: Industrial robots, card readers, test systems, press machines and power transmission drives, etc.
  5. Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.
  6. Others: Services, etc.

25

(3) Sales by Geographic Segment

(Yen in millions)

For the six months ended September 30,

Increase or decrease

2019

2020

Amounts

%

Amounts

%

Amounts

%

Japan

136,739

18.2

125,031

16.6

(11,708)

(8.6)

U.S.A.

144,768

19.3

151,922

20.2

7,154

4.9

Singapore

17,891

2.4

20,192

2.7

2,301

12.9

Thailand

59,683

7.9

68,468

9.1

8,785

14.7

Germany

62,914

8.4

44,808

6.0

(18,106)

(28.8)

China

174,781

23.2

196,306

26.1

21,525

12.3

Others

154,501

20.6

145,067

19.3

(9,434)

(6.1)

Total

751,277

100.0

751,794

100.0

517

0.1

(Yen in millions)

For the three months ended September 30,

Increase or decrease

2019

2020

Amounts

%

Amounts

%

Amounts

%

Japan

67,721

17.3

64,795

15.6

(2,926)

(4.3)

U.S.A.

76,194

19.5

88,243

21.2

12,049

15.8

Singapore

9,415

2.4

10,665

2.6

1,250

13.3

Thailand

30,297

7.8

38,507

9.3

8,210

27.1

Germany

31,258

8.0

26,439

6.4

(4,819)

(15.4)

China

91,787

23.5

105,262

25.4

13,475

14.7

Others

83,731

21.5

81,007

19.5

(2,724)

(3.3)

Total

390,403

100.0

414,918

100.0

24,515

6.3

(Note) The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.

26

(4) Sales by Region

(Yen in millions)

For the six months ended September 30,

Increase or decrease

2019

2020

Amounts

%

Amounts

%

Amounts

%

North America

162,262

21.6

162,834

21.7

572

0.4

Asia

346,384

46.1

370,613

49.3

24,229

7.0

Europe

128,958

17.2

113,855

15.1

(15,103)

(11.7)

Others

17,722

2.3

17,425

2.3

(297)

(1.7)

Overseas total

655,326

87.2

664,727

88.4

9,401

1.4

Japan

95,951

12.8

87,067

11.6

(8,884)

(9.3)

Total

751,277

100.0

751,794

100.0

517

0.1

(Yen in millions)

For the three months ended September 30,

Increase or decrease

2019

2020

Amounts

%

Amounts

%

Amounts

%

North America

80,327

20.6

94,305

22.7

13,978

17.4

Asia

183,847

47.1

196,580

47.4

12,733

6.9

Europe

65,464

16.8

66,122

16.0

658

1.0

Others

12,579

3.2

10,828

2.6

(1,751)

(13.9)

Overseas total

342,217

87.7

367,835

88.7

25,618

7.5

Japan

48,186

12.3

47,083

11.3

(1,103)

(2.3)

Total

390,403

100.0

414,918

100.0

24,515

6.3

(Note) The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.

27

4. Overview of Consolidated Financial Results

October 26, 2020

(1) Summary of Consolidated Financial Performance

(Yen in millions)

For the six

For the six

Increase or

For the three

For the three

Increase or

months ended

months ended

months ended

months ended

September 30,

September 30,

decrease

September 30,

September 30,

decrease

2019

2020

2019

2020

Net Sales

751,277

751,794

0.1

%

390,403

414,918

6.3

%

Operating profit

61,787

69,180

12.0

%

34,155

41,387

21.2

%

8.2

%

9.2 %

8.7

%

10.0

%

Profit before income taxes

63,330

66,005

4.2

%

32,395

38,595

19.1

%

8.4

%

8.8 %

8.3

%

9.3

%

Profit attributable to owners of the parent

27,227

48,783

79.2

%

23,943

28,725

20.0

%

3.6

%

6.5 %

6.1

%

6.9 %

Earnings per share attributable to owners

46.26

83.28

40.67

49.04

of the parent - basic (Yen)

Earnings per share attributable to owners

-

-

-

-

of the parent - diluted (Yen)

(2) Summary of Consolidated Financial Position and Cash Flows

(Yen in millions)

As of September 30, 2019

As of September 30, 2020

As of March 31, 2020

Total assets

1,989,191

2,078,544

2,122,493

Total equity attributable to owners of the parent

956,087

966,604

947,290

Ratio of total equity attributable to owners of the

48.1%

46.5%

44.6%

parent to total asset

For the six months ended

For the six months ended

For the year ended

September 30, 2019

September 30, 2020

March 31, 2020

Net cash provided by operating activities

73,848

76,114

168,049

Net cash used in investing activities

(180,360)

(52,287)

(311,513)

Net cash (used in) provided by financing activities

74,157

(53,062)

128,546

Cash and cash equivalents at end of period

193,284

175,854

206,986

(3) Dividends

(Yen)

2nd quarter end

Fiscal year end

Total

Year ended March 31, 2020 (actual)

55.00

60.00

115.00

Year ending March 31, 2021 (actual)

30.00

-

-

Year ending March 31, 2021 (forecast)

-

30.00

60.00

(4) Scope of Consolidation and Application of the Equity Method

Number of consolidated subsidiaries

334

Number of associates accounted for under the equity method

4

Change from March 31, 2020

Change from September 30, 2019

Number of companies newly consolidated

5

26

Number of companies excluded from consolidation

3

6

Number of companies newly accounted for by the equity method

-

-

Number of companies excluded from accounting by the equity method

-

-

(Notes) 1. The amounts of percentage in "(1) Summary of Consolidated Financial Performance" represent percentage of sales.

  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".
  2. NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2020. Condensed quarterly consolidated financial statements and consolidated financial statements for the year ended March 31, 2020 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.
  3. From the three months ended June 30, 2019, the business of compressor for refrigerator of Secop has been classified as discontinued operations. As a result, the amounts of net sales, operating profit and profit before income taxes no longer include discontinued operations, presenting only the amounts for continuing operations.
  4. NIDEC implemented a two-for-one stock split on our common stock effective April 1, 2020. Earnings per share attributable to owners of the parent-basic and earnings per share attributable to owners of the parent-diluted were calculated on the assumption that the relevant stock split had been implemented at the beginning of the previous fiscal year ended March 31, 2020. On the other hand, we described actual amount of dividends before the stock split for the year ended March 31, 2020.

28

Disclaimer

Nidec Corporation published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 06:24:03 UTC


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