Nidec : Presentation Material (Fiscal Year Ended March 31, 2021)

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

Nidec Corporation

Fiscal 2020 Financial Results

Fiscal Year Ended March 31, 2021

April 22, 2021

Disclaimer Regarding Forward-looking Statements

These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.

The first slide features WALKCAR, a "portable car," which Cocoa Motors. Inc. develops, manufactures and sells, and an in -wheel motor

installed in the WALKCAR. The in-wheel motor is manufactured by Nidec Servo Corporation.

https://www.nidec.com/en/technology/casestudy/compact-in-wheel-motor/

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Consolidated Profit/Loss

*Adjusted based on the 2-for-1 split implemented as of April 1, 2020. "EPS" and "Dividends" are expressed assuming that the stock split occurred at the beginning of FY2019.

	Millions of Yen, except				FY2021
	for percentages, EPS,	FY2019	FY2020	Change
	Forecast
	dividends and FX rates
	Net sales	1,534,800	1,618,064	+5.4%	1,700,000
	Operating profit	108,558	160,011	+47.4%	180,000
	Operating profit ratio	7.1%	9.9%	-	10.6%
	Profit before	105,160	152,978	+45.5%	175,000
	income taxes
	Profit attributable to	58,459	121,977	+108.7%	140,000
	owners of the parent
	EPS (Yen)	99.37	208.25	+109.6%	239.02
	Dividends (Yen)	57.5	60.0	-	60.0
	FX rate (Yen/US$)
	Average:	108.74	106.06	-2.5%	Yen/US$: 105
	Term end:	108.83	110.71	+1.7%	Yen/Euro: 117
Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and t he euro	for FY2021 is estimated to have	3
an annualized impact of 10.0 billion yen and 1.9 billion yen on net sales, respectively, and 1.1 billion yen and 0.4 billion yen on operating profit, respectively.

Summary of FY2020

• Net sales stood at a record high of ¥1,618.1 billion, 5.4% higher Y/Y. Operating profit increased 47.4% Y/Y to ¥160.0 billion.
• Q4 quarterly operating profit ratio achieved 10.3% due to enhanced profitability through WPR4 program implemented since the start of FY20, and sales recovery. Double-digitoperating profit ratio was successfully maintained for three consecutive quarters.
• Profit attributable to owners of the parent increased 108.7% Y/Y to ¥122.0 billion.

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Year-on-Year Changes (Twelve Months Ended Mar. 31, 2021)

(Billions of Yen)

+24.4

+24.9

+50.7

+1.9

+0.1

1,618.1

1,534.8

-18.8

FY19

Exchange

Small Precision

Automotive

Appliance,

Machinery

Electronic

FY20

Rate

Motors

Products

Commercial

and Optical

and Industrial

Components

Products

and Others

+4.7

(Billions of Yen)

+3.2

+21.4

+5.5

+19.4

＋0.5

-1.4

160.0

-1.8

108.6

FY19

Exchange

Structural

Small Precision Automotive

Appliance,

Machinery

Electronic

Eliminations/ FY20

Rate

Reform

Motors

Products

Commercial

and Optical

Corporate

Expenses

and Industrial

Components

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Products

and Others

Quarter-on-Quarter Changes (Three Months Ended Mar. 31, 2021)

(Billions of Yen)

+7.4

+13.8

+1.7

-14.9

-1.3

-6.8

433.2

433.1

Q3/FY20

Exchange

Small Precision

Automotive

Appliance,

Machinery

Electronic

Q4/FY20

Rate

Motors

Products

Commercial

and Optical

and Industrial

Components

Products

+1.9

and Others

(Billions of Yen)

+1.0

+1.4

-4.3

-0.1

-0.6

-0.2

-0.9

46.4

44.5

Q3/FY20

Exchange

Structural

Small Precision

Automotive

Appliance,

Machinery

Electronic

Eliminations/

Q4/FY20

Commercial

and Optical

Rate

Reform

Motors

Products

Corporate

and Industrial

Components

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Expenses

Products

and Others

Consolidated Cash Flow

(Billions of Yen)
Operating CF	Investment CF （M&A）	Investment CF （Excluding M&A）	Free CF
300
		175.6	170.2		219.2
200		168.0
147.7	129.9				118.6
100
52.3		61.7
0			9.4
-100	-81.6
				-143.5
-200
-300
-400
FY15	FY16	FY17	FY18	FY19	FY20

Record high

operating CF and

free CF

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CAPEX, Depreciation, R&D

(Billions of Yen)	CAPEX	Depreciation		R&D
132.9		130.0
	88.9		87.7	96.8	95.0
						85.0
						78.6
							67.3
FY19	FY20	FY21	FY19	FY20	FY21	FY19	FY20	FY21
		(Forecast)			(Forecast)			(Forecast)

Continue to invest

actively in CAPEX and R&D to support long- term growth

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FY2021 Forecast

Millions of Yen, except for	1H/FY2021	2H/FY2021	Full-Year
EPS, dividends and FX rate
Net sales	800,000	900,000	1,700,000
Operating profit	80,000	100,000	180,000
Operating profit ratio	10.0%	11.1%	10.6%
Profit before income taxes	78,000	97,000	175,000
Profit attributable to	60,000	80,000	140,000
owners of the parent
EPS (Yen)	102.44	136.58	239.02
Dividends (Yen)	30.00	30.00	60.00
FX Rate (Yen/US$)	105	105	105
FX Rate (Yen/Euro)	117	117	117

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Mid-Term Strategic Goal

From Vision2020

to Vision2025

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