Nidec Corporation Fiscal 2013 Financial Results

Transcription

1 (TSE: 694 NYSE: NJ) Nidec Corporation Fiscal 213 Financial Results Fiscal Year Ended March 31, 214 <U.S.GAAP> April 23, Note 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 latest Form 2-F and Japanese securities report, for additional information regarding such risks and uncertainties. titi Nidec undertakes tk no obligation to update dt the forward-looking dl statements unless required by law. The photograph on the first slide features a fan motor for air conditioners sold in Japan, which is included in the Automotive, Appliance, Commercial and Industrial product category. As the appliance and home equipment market increases its focus on energy efficiency, the demand for Nidec Group s motors which deliver enhanced efficiency, quietness and durability is growing rapidly in the US and Europe as well as in emerging countries. 2 1

2 Consolidated Profit/Loss Millions of Yen except for EPS and FX Rates FY212 FY213 Change FY214 Forecast Net 79,27 87, % 9, Operating Income 17,98 8, % 1, Operating Income Ratio 2.% 9.7% - 1.% Income before Tax 13,398 84, % 98, Net Income 7,986 6, % 6, EPS (Yen) * % Dividends (Yen) * FX Rate (Yen/US$) Average: Term end: % +9.4% 1. (Assumed) *Adjusted based on the 2-for-1 split implemented as of April 1, 214. EPS and Dividends are expressed assuming that the stock split occurred at the beginning of FY Summary of FY213 Record-high 87.1 billion Yen sales 8.1 billion Yen operating income, exceeding 7 billion Yen original forecast while achieving record-high 84.7 billion Yen income before tax and 6.4 billion Yen net income Record-high 22.4 billion Yen (7.6 billion Yen for 4Q) operating income for Automotive, Appliance, Commercial and Industrial Products, the driver of business portfolio transformation Board decision to make two subsidiaries (Nidec Copal Electronics and Nidec-Read) wholly owned by Nidec Corp. through share exchange, as part of efforts to drive the Group s organizational integration 4 2

3 FY214 Forecast Millions of Yen, except for EPS, dividends and FX rate 1H/FY214 2H/FY214 Full-Year Net 4,, 9, Operating Income 4,, 1, Operating Income Ratio 1.% 11.% 1.% Income before Tax 44, 4, 98, Net Income 29, 3, 6, EPS (Yen) Dividends (Yen) FX Rate (Yen/US$) FX Rate (Yen/ ) Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY214 is estimated to have an annualized impact of 6.6 billion yen and.8 billion yen on sales, respectively, and.82 billion yen and.24 billion yen on operating income, respectively. Growth Acceleration Strategy via Business Portfolio Transformation ( in Trillions of Yen) Returning to Growth Path 1. M&A Others Electronic & Optical Components Machinery Automotive, Appliance, Commercial & Industrial Target 1.2 Trillion Second Growth Phase 1 Small Precision First Growth Phase Business Portfolio Transformation (Fiscal Year) (Forecast) (Target) 6 3

4 Consolidated Quarterly and Operating Income (LHS) Operating Income (RHS) 3 (All figures in Billions of Yen) 3 2 V-shaped recovery achieved Japan Earthquake Thai Floods Operating Income Lehman Crisis 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q - FY28 FY29 FY21 FY211 FY212 Structural Reform FY Quarterly Operating Income for FY213 Operating Income exceeded initial forecast for 4 quarters in a row Operating Income (Billions of Yen) 2 2 Up 18 Initial Forecast Up Actual Up UP FY13/1Q 2Q 3Q 4Q 8 4

5 Nidec HDD Motor Shipment Outlook (Millions of Units) Flat shipments expected throughout FY214 HDD Shipments Nidec Motor Shipments Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY213 (Actual) FY214 (Forecast) (Nidec Estimates) 9 Quarterly Trend Automotive, Appliance, Commercial and Industrial Products Aiming to achieve steady quarterly profit increase for FY214 (LHS) Operating Income (RHS) Operating Income (All figures in Billions of Yen) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q - FY211 (Actual) FY FY213 FY214 (Actual) (Actual) (Forecast) - 1

6 Consolidated Cash Flow (Billions of Yen) Operating Activities Investing Activities Free Cash Flow (Operating CF + Investing CF) M&A Investment* +.2 billion Yen M&A Investment * billion Yen M&A Investment* billion Yen FY211 FY212 FY213 *M&A investment: Acquisitions of business, net of cash acquired in Cash flows from investing activities Nidec Seimitsu (FY211), Nidec Minster, Nidec ASI, Nidec Avtron Automation, Nidec Kinetek, Nidec Kaiyu Auto Electric(Jiangsu), SCD (FY212), Nidec Sankyo CMI, Nidec Elesys (FY213) 11 CAPEX, Depreciation and R&D (Billions of Yen) 8 CAPEX Depreciation R&D Reduction from original plan ( billion yen) by leveraging Group synergies FY212 FY213 FY214 FY212 FY213 FY214 FY212 FY213 FY214 (Forecast) (Forecast) (Forecast) 12 6

7 Dividends 2-for-1 stock split as of April 1, 214 (Yen per share) 8 * Divdends (LHS) * EPS (RHS) (Yen) FY212 FY213 FY214 (Forecast) *Adjusted based on the 2-for-1 stock split implemented as of April 1, 214. The figures for FY212 and FY213 are expressed assuming that the stock split occurred at the beginning of FY Mid-Term Strategic Goal 14 7

8 Mid-Term Strategic Goal - Laying the foundation for Sustainable Growth for the Next 1 Years - Aiming to achieve profitable growth by striking balance between expansion and financial soundness ( in Trillions of Yen) (Operating Income Ratio, %) 1% % 13.7% 1 1.7% 1.2T * % M&A. 71.6B 676.B 682.3B 79.3B 87.1B Organic 2.% FY29 FY21 FY211 FY212 FY213 FY214 FY21 (Forecast) (Target) * targets of Nidec Sankyo CMI and Nidec Elesys 1 Accelerating Business Portfolio Transformation and Expansion FY211 : B Yen Single Pillar ( in Billions of Yen) FY213 : 87.1 B Yen Our confidence to transform and expand our business portfolio became stronger in FY213 ( in Billions of Yen) 362. Key Growth Areas FY21 : 1.2 Trillion Yen (Target) Four Pillars ( in Billions of Yen) 4 Key Growth Areas 3 3 Key Growth Areas Small Precision Motor Automotive Appliance, Commercial and Industrial Other Products Group Small Precision Motor Automotive Appliance, Commercial and Industrial Other Products Group Small Precision Motor Automotive Appliance, Commercial and Industrial Other Products Group 16 8

9 and Profitability Targets by Product Category Small Precision Automotive ( in Billions of Yen) (Operating Income (Operating Income Ratio) ( in Billions of Yen) Ratio) 4 2% 3 1 % M&A 2 Structural Reform FY211 FY212 FY213 FY214 FY21 (Target) Appliance, Commercial & Industrial FY211 FY212 FY213 FY214 FY21 (Target) Structural Reform Other Product Groups (Operating Income (Operating Income ( in Billions of Yen) ( in Billions of Yen) Ratio) Ratio) 3 1 % 2 1 % - 1 Structural Reform 1 Structural Reform FY211 FY212 FY213 FY214 FY21 (Target) FY211 FY212 FY213 FY214 FY21 (Target) 17 Accelerating Business Portfolio Transformation () Percentage of Key Growth Areas in, from 3% to % Electronic and Optical Components Machinery 1% FY B Appliance Commercial and Industrial (18%) Auto (12%) 3% 1% 1% Electronic and Optical Components Others Machinery HDD (26%) Other Small (23%) 49% 1% Others 8% Appliance Commercial and Industrial (26%) Small Precision Auto, Appliance, Commercial and Industrial 4% 1% FY B At Auto (13%) Electronic and Optical Components Machinery Small Precision HDD (21%) 41% Other Small (2%) Auto, Appliance, Commercial and Industrial Others 8% Appliance Commercial and Industrial (2%) % 1% 8% FY T (Target) Small Precision HDD (1%) 33% Auto (2%) Auto, Appliance, 1% Commercial and Industrial Other Small (18%) 18 9

10 Accelerating Business Portfolio Transformation (Operating Income) Weight of Small Precision Motor decreasing to less than half Ratio of Key Growth Areas expanding three fold Electronic and Optical Components Machinery 9% 9% Appliance, Commercial and Industrial 12% Auto Other Small 1% FY B Electronic and Optical Components Others HDD Machinery 69% Others Appliance Commercial and Industrial % 2% 13% FY B Auto Oh Other Small 24% Small Precision Electronic and Optical Components Machinery Small Precision HDD 61% Auto, Appliance, Commercial and Industrial Others 1% % Small Precision 9% HDD 46% Appliance FY21 Commercial 18. B and Industrial (Target) Other Small Auto 38% Auto, Appliance, Commercial and Industrial 1% Auto, Appliance, Commercial and Industrial 19 Automotive Products Automotive Automotive Parts Electric Control Units Nidec Nidec Automotive Americas Nidec & Actuators Nidec Tosok Nidec Sankyo CMI Nidec Elesys <Advanced Safety> Electric power steering motor Dual clutch transmission motor Seat adjustment motor Control valve for CVT Adaptive Cruise Control / Collision Mitigation System Seatbelt Pretensioner Occupant Detection System Engine cooling fan ESP/ABS motor Window lift motor Solenoid valves Spool valves Camera for Lane Keeping Assist Millimeter Wave Radar <Electronic Control Units> Module products (Electric oil pump) Electric Power Steering Antilock Brake System Door lock motor Hatch/Tailgate motor Sunroof motor Electric contact Stepping motors Stepping motors Electronic Stability Control Electric Servo Brake 2 1

11 Automotive Products Mid-Term Business Plan ( in Billions of Yen) M&A (LHS) Nidec Elesys (LHS) Target for FY21 : 3 Billion Yen (Including M&A 8 Billion Yen) Operating Income Ratio: 11% 33. Billion Yen 3 Nidec Sankyo CMI (LHS) 3 2 Nidec Tosok (LHS) Nidec, NMA and NAMA (LHS) * Operating Income (RHS) Current Forecast (28 B) 2 (Operating Income in Billions of Yen) FY21 FY211 FY212 FY213 FY214 FY21 (Forecast) (Target) -1 * NMA: Nidec & Actuators *NAMA: Nidec Automotive Motor Americas Macro Trends Creating Various Needs Keywords: (1) Environment, (2) Safety, (3) Value-added Needs Triggers Applications Regions Opportunities for Nidec mid-term growth Environment (Electrification) EU CO 2 emissions regulations (9 grams/km by 22) U.S. CAFE regulations (4. miles/gallon by 22) Downsizing Integrated Starter Generator/Hybrid Vehicle Electric Vehicle Fuel Cell Vehicle Europe Japan North America Electric Power Steering Traction applications (motors and inverters) Powertrain Actuators and pumps Safety (Autonomous) Traffic accident prevention More elderly drivers Intelligent Transport Systems infrastructure development E-NCAP Self-driving cars Emergency Brake Assist Advanced Driver Assistance System Europe Japan North America Sensors & cameras Radars & lasers Electronic controls Steering (turning) Brakes (stopping) Artificial Intelligence (judging) Valueadded Common vehicle platforms Modular components Function & safety standards (ISO26262) Systemization Convenient features Developed & Emerging markets Modularization ECUs, pumps, fans, gears Brush compact motors 22 11

12 Completion of Honda Elesys * Acquisition Accelerating mid-term growth through electrification & modularization - Expanding module business by combining automotive motors with Elesys ECU >>Effective differentiation - Expanding business by combining automotive related products within Nidec Group [Examples] (1) Sensor cameras (Nidec Copal) (2) Electric oil pump units (Nidec Tosok) (3) Head-up display motors (Nidec Sankyo) Advanced Safety Camera Millimeter Wave Radar EPS Electric Power Steering Lane Keeping Assist ACC / CMS Adaptive Cruise Control / Collision Mitigation System ABS Antilock Brake System EPT Seatbelt Pretensioner ESC Electronic Stability Control ODS Occupant Detection System ESB Electric Servo Brake ECU (Electronic Control Unit) *Renamed Nidec Elesys Corporation as of April 1, Appliance, Commercial and Industrial Products Appliance Commercial Industrial Washing machines, Dryers, Dishwashers, etc. HVAC, Pools & Spas, Elevators, Escalators, Commercial fridge, Floor care, Aerial lifts, etc. Pumps, Compressors, Vessels, Conveyers, Automation, Steel plants, Generators, Mining, etc. Washing machine motor Dryer motor Dishwasher pump Air conditioner motors Low voltage drive Elevator machine Elevator controls Dishwasher motors & pumps Industrial motors Medium voltage drive 24 12

13 Appliance, Commercial and Industrial Products Mid-Term Business Plan FY1 Targets : 3 billion Yen Nidec (LHS) Operating Income Ratio: 13% (Operating Income Nidec Avtron Automation (LHS) Nidec Kinetek (LHS) in Billions of Yen) 3 4 Nidec ASI (LHS) ( in Billions of Yen) Nidec Sole Motor (LHS) Nidec Motor Corp. (LHS) Nidec Techno Motor (LHS) Operating Income (RHS) Current Forecast (3 B) FY21 FY211 FY212 FY213 FY214 FY21 (Forecast) (Target) 2 Expansion into Compressor Motor Market Accelerating global air conditioner strategy targeting 7 B Yen compressor market Worldwide motor market for air conditioners and refrigerators (CY212) Air conditioner compressors Refridgerator compressors Air conditioner fans Approx. 3 bil Yen Approx. 2 bil Yen Approx. 4 bil Yen AC DC (Billions of Yen) ( in Billions of Yen) (Nidec Estimates) Nidec Techno Motor sales forecast for compressor motors 1 Other customers 1 Chinese customers Japanese customers FY14 FY1 FY

14 Small Precision Motor Products HDD Nidec Nidec Nidec Sankyo Nidec Copal Nidec Copal Electronics Other Small Nidec Servo Nidec Seimitsu Nidec Component Technology For IT & AV equipment For office equipment Small brushless DC motors Fans HDD Actuator units for air conditioners Actuator units for washing machines Actuator units for sanitary products & water supply facilities Hot water supply actuators Vibration motors Actuator units for refrigerators Medical tube pump 27 Small Precision Mid-Term Business Plan ( in Billions of Yen) Targets for FY21 : 4 Billion Yen Other Small (LHS) (Operating Income Operating Income Ratio: 22% in Billions of Yen) HDD (LHS) Operating Income (RHS) Current Forecast (84 B) FY21 FY211 FY212 FY213 FY214 FY21 (Forecast) (Target) 28 14

15 HDD Market Mid-Term Outlook and Strategy (Million of Units) 7 HDD shipment trend by application Others Enterprise Near Line Personal Video Recorder Enterprise Game Console Automotive External PC Near Line External Pursue technological advantage Dual Approach 1 PC Focus on cost reduction CY12 CY13 CY14 CY1 CY16 CY17 CY18 CY19 CY2 (Nidec Estimates) 29 Market Trend & Nidec Strategy for Other Small Examples of value added proposals Cordless vacuum cleaner Hair dryer Ceiling fan Creating differentiation Ultra-high speed motor Motor + Power source + Circuit + Impeller Evolving from motor-only only business to complete set ODM Complete set ODM Car seat fan High quality / High reliability Conveying System Telecom Base Station New application of existing motors Attacking rapidly expanding market Adding value through h modularization Nidec Group collaboration Lawn mower Printer Server Replacement of engines with BLDC(*) motors Riding the wave of shift to DC motors Replacement of stepping motors with BLDC(*) Adding higher value Full use of super computers (*)BLDC: Brushless direct current 3 1

16 Emerging Market Strategy Setting up joint production plant for Group companies in India Total production site for the 2 key growth areas (Automotive and Appliance, Commercial & Industrial Products) and Other Small to serve South Asia and the Middle East markets New Delhi Neemrana Industrial Park in Rajasthan, 1km south of New Delhi India Mumbai Completion scheduled for March Completion of Nidec Motor Research and Development Center, Japan 21 st Century-style Convergence Research with 3 R&D Centers [Goal] Research motor related tasks in order to develop demand-matching technologies [Tasks] Make motors smaller & lighter / Save power & materials / Minimize noise, vibration & heat Eventually increasing staff to 6 through global recruiting Japan (Kawasaki) Governmental Organizations (Gov t Orgs) Universities Other Companies Industry-Government-Academia (IGA) Cluster network Universities Other Companies Singapore Nidec NdecMotor oo R&D Center, e,japan Taiwan Other Companies Gov t Orgs Gov t Orgs Universities IGA Cluster network IGA Cluster network R&D Center, Singapore R&D Center, Taiwan 32 16

17 Nidec IR Contacts Japan Tel: U.K. Tel: U.S. Tel: Nidec logo is a registered trademark or a trademark of Nidec Corporation in Japan, the United States and/or certain other countries. All for dreams logo is a registered trademark of Nidec Corporation in Japan, and a trademark in the United States and/or certain other countries. 33 Appendix Performance Trend & Product Group Overview 34 17

18 by Product Group (FY213) Electronic & Optical Components Camera shutters, Switches, Trimmer potentiometers, Processing, Precision plastic mold products Machinery Industrial Robots, Card Readers, Circuit board testers, High-speed pressing machines, Chip mounters, Measuring equipment, Power transmission equipment, Factory automation system Automotive, Appliance, Commercial and Industrial Products 39.% (3.%) 9.9 % (9.%) Others.9% (1.2%) 8.3% (9.7%) Appliance Commercial Industrial 26.3% (22.8%) 87.1B Parenthetic percentages represent FY212 mix. Logistics and Services, Musical products HDD 21.2% (23.3%) Auto 13.2% (12.2%) 2.2% (21.8%) Small Precision 41.4% (4.1%) Other Small Optical disk drive motors OA equipment motors Polygon scanners MPU cooling fans Game machine fans PC/Communications fans Home appliance fans Automobile fans Vibration motors Brush motors Stepping motors Actuator units 3 Consolidated & Operating Income (Billions of Yen) (Billions of Yen) (LHS) Operating Income (RHS) Operating Income Ratio % 11.2% 1.4% 1.2% 9.8% 8.% % 1.3 FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q %

19 Consolidated Income Before Tax & Net Income (Billions of Yen) Consolidated Income Before Tax Consolidated Net Income FY12/1Q 2Q 3Q Q FY13/1Q 2Q 3Q 4Q 37 Small Precision (Billions of Yen) Operating income FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q HDD (LHS) Operating Income (RHS) Other Small Precision (LHS)

20 Automotive, Appliance, Commercial and Industrial Products Operating income FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q Nidec (LHS) Nidec & Actuators (LHS) Nidec Tosok (LHS) Nidec Sankyo CMI (LHS) Nidec Techno Motor (LHS) Nidec Motor (LHS) Nidec Sole Motor (LHS) Nidec ASI (LHS) Nidec Kinetek (LHS) Nidec Avtron Automation (LHS) Operating Income (RHS) 39 Machinery (Billions of Yen) Operating income FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q Nidec Sankyo (LHS) Nidec Minster (LHS) Nidec Copal (LHS) Operating Income (RHS) Nidec-Shimpo (LHS) Nidec-Read (LHS) Other Subsidiaries (LHS) 4 2

21 Electronic & Optical Components (Billions of Yen) Operating income FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q Nidec Sankyo (LHS) Nidec Copal Electronics (LHS) Nidec Copal (LHS) Operating Income (RHS) 41 Others (Billions of Yen) Operating income FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q.2 (LHS) Operating Income (RHS) 42 21