Nidec : 3rd Quarter Ended December 31, 2020
English translation
Financial Statements Summary for the Nine Months Ended December 31, 2020 [IFRS](Consolidated)
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Company name: |
NIDEC CORPORATION |
January 25, 2021 |
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Stock listing: |
Tokyo Stock Exchange – First Section |
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Code number: |
6594 |
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Representative: |
Jun Seki, Representative Director, President and COO |
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Information on contact: |
Masahiro Nagayasu, General Manager of the Investor Relations & CSR Promotion |
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Department Tel: +81-75-935-6140 [email protected] |
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Scheduled date of filing of Japanese quarterly report: |
February 12, 2021 |
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Scheduled date of dividend payable: |
– |
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Supplemental materials for quarterly results: |
Yes |
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Quarterly earning presentation held: |
Yes |
(Amount Unit: Yen in Millions, unless otherwise indicated) |
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(Amounts are rounded to nearest million yen) |
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1. Consolidated Financial Results for the nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020) |
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(1) Consolidated Operating Results |
(Percentage represents year-on-year changes) |
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Net sales |
Operating profit |
Profit before |
Profit attributable to |
Comprehensive |
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income taxes |
owners of the parent |
income for the period |
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For the nine months ended |
% |
% |
% |
% |
% |
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1,184,991 |
2.2 |
115,535 |
24.0 |
109,340 |
17.5 |
83,636 |
69.6 |
76,125 |
– |
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December 31, 2020 |
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For the nine months ended |
1,159,608 |
– |
93,204 |
– |
93,050 |
– |
49,326 |
– |
33,096 |
– |
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December 31, 2019 |
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Earnings per share attributable to |
Earnings per share attributable to |
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owners of the parent-basic (Yen) |
owners of the parent-diluted (Yen) |
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For the nine months ended December 31, 2020 |
142.79 |
– |
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For the nine months ended December 31, 2019 |
83.80 |
– |
(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”.
-
- NIDEC finalized the provisional accounting treatment for the business combination in the nine months ended December 31, 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.
- 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.
- Consolidated Financial Position
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Total assets |
Total equity |
Total equity attributable to |
Ratio of total equity attributable to |
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owners of the parent |
owners of the parent to total assets |
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% |
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As of December 31, 2020 |
2,113,427 |
1,002,441 |
982,396 |
46.5 |
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As of March 31, 2020 |
2,122,493 |
967,633 |
947,290 |
44.6 |
2. Dividends
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Dividends per share (Yen) |
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1st quarter end |
2nd quarter end |
3rd quarter end |
Fiscal year end |
Total |
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Year ended March 31, 2020 |
– |
55.00 |
– |
60.00 |
115.00 |
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Year ending March 31, |
2021 |
– |
30.00 |
– |
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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)
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Profit before |
Profit attributable to |
Earnings per share |
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Net sales |
Operating profit |
attributable to owners |
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income taxes |
owners of the parent |
of the parent-basic |
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% |
% |
% |
% |
(Yen) |
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Fiscal year end |
1,550,000 |
1.0 |
155,000 |
42.8 |
150,000 |
42.6 |
120,000 |
105.3 |
204.87 |
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(Note) Revision of the previously announced financial performance forecast during this reporting period: Yes |
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Notes |
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(1) |
Changes in Significant Subsidiaries during This Period (changes in “specified subsidiaries” (tokutei kogaisha) |
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resulting in the change in scope of consolidation) |
: None |
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(2) |
Changes in Accounting Policies and Changes in Accounting Estimates: |
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1. |
Changes in accounting policies required by IFRS |
: None |
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2. |
Changes in accounting policies due to other reasons |
: None |
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3. |
Changes in accounting estimates |
: None |
- Number of Shares Issued (Ordinary Shares)
1. Number of shares issued at the end of the period (including treasury stock):
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As of December 31, 2020: |
596,284,468 |
As of March 31, 2020: 596,284,468 |
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2. |
Number of treasury stock at the end of the period: |
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As of December 31, 2020: |
10,551,496 |
As of March 31, 2020: 10,530,534 |
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3. |
Weighted-average number of shares outstanding during the period: |
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For the nine months ended December 31, 2020: 585,733,349 |
For the nine months ended December 31, 2019: 588,586,748 |
(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 nine months ended December 31, 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 nine months ended December 31, 2020 are expected to be published on our corporate website on January 25, 2021.
1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Nine Months Ended December 31, 2020
1. Overview of Business Environment for the Nine Months Ended December 31, 2020
The World Bank estimates that the growth rate of the global economy will settle at -4.3% in calendar year 2020 and will be 4.0% in
calendar year 2021. In 2021, the World Bank expects a recovery from the impact of the COVID-19 infections, but the growth rate is lower than it had been before the outbreak of COVID-19. During the nine months ended December 31, 2020 was a period of recovery from the economic slowdown caused by the spread of the COVID-19 in various regions of the world and the lockdown of cities. Although there are growing expectations for the end of the COVID-19 pandemic through the vaccine rollout becoming widespread, as stated in the World Bank’s Global Economic Prospects, risks such as further spread of COVID-19, delays in the supply of vaccines, continued adverse effects of COVID-19 on the economy, and financial pressure on countries remain. In addition, the accelerating conflict between the United States and China and the impact of the new U.S. government policy have left a strong sense of uncertainty.
2. Consolidated Operating Results
Consolidated Operating Results for the Nine Months Ended December 31, 2020 (“this nine-month period”), Compared to the Nine Months Ended December 31, 2019 (“the same period of the prior year”)
(Yen in millions)
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For the nine months ended December 31, |
Increase or |
Ratio of change |
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decrease |
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2019 |
2020 |
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Net sales |
1,159,608 |
1,184,991 |
25,383 |
2.2% |
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Operating profit |
93,204 |
115,535 |
22,331 |
24.0% |
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Operating profit ratio |
8.0 % |
9.7% |
– |
– |
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Profit before income taxes |
93,050 |
109,340 |
16,290 |
17.5% |
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Profit for the period from continuing operations |
69,860 |
84,520 |
14,660 |
21.0% |
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Loss for the period from discontinued operations |
(19,131) |
(132) |
18,999 |
– |
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Profit attributable to owners of the parent |
49,326 |
83,636 |
34,310 |
69.6% |
Consolidated net sales from continuing operations increased 2.2% to ¥1,184,991 million for this nine-month period compared to the same period of the prior year, renewing the highest record of the quarterly consolidated accounting period by engaging in new demands one after another in the areas of home appliances, IT, game consoles and so on. Operating profit increased 24.0% to ¥115,535 million for this nine-month period compared to the same period of the prior year mainly due to the increase in sales by engaging in new demands as mentioned, thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 Project. Profit before income taxes increased 17.5% to ¥109,340 million and profit for the period from continuing operations increased 21.0% to ¥84,520 million compared to the same period of the prior year, respectively.
Profit attributable to owners of the parent increased 69.6% to ¥83,636 million due to significant increase from continuing operations and decrease in net loss from discontinued operations related to the business transfer in the previous fiscal year.
The average exchange rate between the Japanese yen and the U.S. dollar for this nine-month period was ¥106.11 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 nine-month period was ¥122.38 to the Euro, which reflected an approximately 1% depreciation of the Japanese yen against the Euro, compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on net sales by approximately ¥16,200 million and on operating profit by approximately ¥500 million for this nine-month period compared to the same period of the prior year.
NIDEC finalized the provisional accounting treatment for the business combination in the nine months ended December 31, 2020. Condensed quarterly consolidated financial statements for the nine months ended December 31, 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.
Operating Results by Product Category for This Nine-Month Period Compared to the Same Period of the Previous Year
Small precision motors
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(Yen in millions) |
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For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
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2019 |
2020 |
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Net sales to external customers |
334,932 |
339,952 |
5,020 |
1.5% |
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Spindle motors for hard disk |
117,185 |
116,417 |
(768) |
(0.7)% |
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drives (HDDs) |
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Other small precision motors |
217,747 |
223,535 |
5,788 |
2.7% |
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Operating profit |
40,537 |
51,220 |
10,683 |
26.4% |
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Operating profit ratio |
12.1% |
15.1% |
– |
– |
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Net sales of this category increased 1.5% to ¥339,952 million for this nine-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 ¥4,400 million for this nine-month period compared to the same period of the prior year.
Although the number of units sold of spindle motors for HDDs decreased approximately 17.7% compared to the same period of the prior year, net sales of spindle motors for HDDs slightly decreased 0.7% to ¥116,417 million for this nine-month period compared to the same period of the prior year due to improvements in product mix and others. On the other hand, net sales of small precision motors increased 1.5% to ¥339,952 million for this nine-month period compared to the same period of the prior year by engaging in new demands one after another by launching a number of new products in the areas of home appliances, IT, game consoles and other products in other small precision motors.
Operating profit of this category increased 26.4% to ¥51,220 million for this nine-month period compared to the same period of the prior year, mainly due to improved product mix of spindle motors for HDDs and increased sales of high value-added new products including IT fan motors in other small precision motors, as well as thorough manufacturing cost improvement and others. 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 nine-month period compared to the same period of the prior year.
Automotive products
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(Yen in millions) |
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For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
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2019 |
2020 |
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Net sales to external customers |
243,021 |
256,008 |
12,987 |
5.3% |
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Operating profit |
17,918 |
12,074 |
(5,844) |
(32.6)% |
|
Operating profit ratio |
7.4% |
4.7% |
– |
– |
Net sales of this category increased 5.3% to ¥256,008 million for this nine-month period compared to the same period of the previous year. This increase was due to rapid recovery of net sales that bottomed out in the three months ended June 30, 2020, and 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 ¥1,400 million for this nine-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 existing products excluding traction motors recovered rapidly after bottoming out in the three months ended June 30, 2020, and continued to improve to double digits. However, NIDEC continued to record advanced development costs for the traction motor system (E-Axle), which is
experiencing rapid growth in demand. Consequently operating profit decreased 32.6% to ¥12,074 million for this nine-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥500 million for this nine-month period compared to the same period of the previous year.
Appliance, commercial and industrial products
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(Yen in millions) |
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For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
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2019 |
2020 |
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Net sales to external customers |
417,580 |
429,299 |
11,719 |
2.8% |
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Operating profit |
27,138 |
36,220 |
9,082 |
33.5% |
|
Operating profit ratio |
6.5% |
8.4% |
– |
– |
Net sales of this category increased 2.8% to ¥429,299 million for this nine-month period compared to the same period of the prior year, primarily due to an increase in sales of motors and gears for transfer robots in the U.S. and Europe, of compressors for home appliances, and 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 ¥8,700 million for this nine-month period compared to the same period of the previous year.
Although NIDEC recorded approximately ¥4,500 million in restructuring costs in Europe and others for this nine-month period, the operating profit improved by 1.9% due to increase in sales and thorough manufacturing cost improvement and others, resulting in an increase of 33.5% to ¥36,220 million for this nine-month period compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥900 million for this nine-month period compared to the same period of the previous year.
Machinery
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(Yen in millions) |
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For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
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2019 |
2020 |
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Net sales to external customers |
115,213 |
111,516 |
(3,697) |
(3.2)% |
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Operating profit |
17,211 |
19,693 |
2,482 |
14.4% |
|
Operating profit ratio |
14.9% |
17.7% |
– |
– |
Although there was an increase in sales of semiconductor inspection system due to strong demands for 5G, net sales of this category decreased 3.2% to ¥111,516 million for this nine-month period compared to the same period of the previous year, due to lower sales of card readers and press machines and other factors. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥1,000 million for this nine-month period compared to the same period of the previous year.
Operating profit of this category increased 14.4% to ¥19,693 million for this nine-month period compared to the same period of the previous year, due to the effect of an increase in operating profit by engaging in new product demands for 5G and manufacturing cost improvement and fixed cost rationalization, despite a decrease in profit due to the decrease in sales. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥200 million for this nine-month period compared to the same period of the previous year.
Electronic and optical components
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(Yen in millions) |
||||
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For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
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2019 |
2020 |
|||
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Net sales to external customers |
45,400 |
45,681 |
281 |
0.6% |
|
Operating profit |
3,345 |
4,986 |
1,641 |
49.1% |
|
Operating profit ratio |
7.4% |
10.9% |
– |
– |
Net sales of this category increased 0.6% to ¥45,681 million for this nine-month period compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥800 million for this nine-month period compared to the same period of the previous year.
Operating profit of this category increased 49.1% to ¥4,986 million for this nine-month period compared to the same period of the previous year, primarily because of the increase in sales due to new product launch and fixed cost rationalization. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥300 million for this nine-month period compared to the same period of the previous year.
Other products
|
(Yen in millions) |
|||||
|
For the nine months ended December 31, |
Increase or decrease |
Ratio of change |
|||
|
2019 |
2020 |
||||
|
Net sales to external customers |
3,462 |
2,535 |
(927) |
(26.8)% |
|
|
Operating profit |
510 |
238 |
(272) |
(53.3)% |
|
|
Operating profit ratio |
14.7% |
9.4% |
– |
– |
|
Net sales of this category decreased 26.8% to ¥2,535 million and operating profit of this category decreased 53.3% to ¥238 million for this nine-month period compared to the same period of the prior year.
Consolidated Operating Results for the Three Months Ended December 31, 2020 (“3Q”), Compared to the Previous Three Months Ended September 30, 2020 (“2Q”)
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(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales |
414,918 |
433,197 |
18,279 |
4.4% |
|
Operating profit |
41,387 |
46,355 |
4,968 |
12.0% |
|
Operating profit ratio |
10.0% |
10.7% |
– |
– |
|
Profit before income taxes |
38,595 |
43,335 |
4,740 |
12.3% |
|
Profit for the period from continuing |
28,977 |
35,082 |
6,105 |
21.1% |
|
operations |
||||
|
Loss for the period from discontinued |
(25) |
(33) |
(8) |
– |
|
operations |
||||
|
Profit attributable to owners of the parent |
28,725 |
34,853 |
6,128 |
21.3% |
Consolidated net sales from continuing operations increased 4.4% to ¥433,197 million for 3Q compared to 2Q, renewing the highest record of the quarterly consolidated accounting period. This was due to an increase in sales of automotive products due to the rapid recovery of the automobile market in China and other countries, and an increase in sales of products for home appliances, commercial products, and industrial products due to an increase in sales of compressors for home appliances. Operating profit increased 12.0% to ¥46,355 million and the operating profit ratio improved to 10.7% for 3Q compared to 2Q due to the increase in sales by launching of high value-added new products one after another in each business unit, thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 project. Profit before income taxes increased 12.3% to ¥43,335 million and profit for the period from continuing operations increased 21.1% to ¥35,082 million for 3Q compared to 2Q.
Profit attributable to owners of the parent increased 21.3% to ¥34,853 million for 3Q compared to 2Q.
The average exchange rate between the Japanese yen and the U.S. dollar for 3Q was ¥104.51 to the U.S. dollar, which reflected an approximately 2% appreciation of the Japanese yen against the U.S. dollar, compared to 2Q. The average exchange rate between the Japanese yen and the Euro for 3Q was ¥124.54 to the Euro, which reflected a slight depreciation of the Japanese yen against the Euro, compared to 2Q. The fluctuations of the foreign currency exchange rates had a negative effect on net sales by approximately ¥1,900 million and on operating profit by approximately ¥1,100 million for 3Q compared to 2Q.
6
Operating Results by Product Category for 3Q Compared to 2Q
Small precision motors
|
(Yen in millions) |
|||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
|||
|
September 30, 2020 |
December 31, 2020 |
||||
|
Net sales to external customers |
119,044 |
116,490 |
(2,554) |
(2.1)% |
|
|
Spindle motors for hard disk |
47,163 |
32,211 |
(14,952) |
(31.7)% |
|
|
drives (HDDs) |
|||||
|
Other small precision motors |
71,881 |
84,279 |
12,398 |
17.2% |
|
|
Operating profit |
18,816 |
18,121 |
(695) |
(3.7)% |
|
|
Operating profit ratio |
15.8% |
15.6% |
– |
– |
|
Although net sales of spindle motors for HDDs decreased 31.7% to ¥32,211 million for 3Q compared to 2Q, net sales of other small precision motors increased 17.2% to ¥84,279 million for 3Q compared to 2Q, renewing the highest record by engaging in new demands one after another in the areas of home appliances, IT, game consoles and so on. Net sales of small precision motors decreased 2.1% to ¥116,490 million for 3Q compared to 2Q. The number of units sold of spindle motors for HDDs decreased approximately 34.6% for 3Q compared to 2Q. The impact of foreign exchange rates decreased sales by approximately ¥100 million for 3Q compared to 2Q.
Operating profit of this category decreased 3.7% to ¥18,121 million for 3Q compared to 2Q. Operating profit ratio remained at the same level as 2Q due to the increase in sales of other small precision motors by successful launch of new products as well as thorough manufacturing cost improvements, despite substantial decline of sales of spindle motors for HDDs. The impact of foreign exchange rates decreased operating profit by approximately ¥400 million for 3Q compared to 2Q.
Automotive products
|
(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales to external customers |
92,338 |
106,873 |
14,535 |
15.7% |
|
Operating profit |
4,655 |
7,677 |
3,022 |
64.9% |
|
Operating profit ratio |
5.0% |
7.2% |
– |
– |
Net sales of this category increased 15.7% to ¥106,873 million for 3Q compared to 2Q, mainly due to an increase in sales of automotive electronics components and electric power steering motors and other factors due to the rapid recovery of the automobile market. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥49 million for 3Q compared to 2Q.
Operating profit of this category increased 64.9% to ¥7,677 million for 3Q compared to 2Q. This was due to the effects of revenue growth, based on the break-even point that was thoroughly lowered through improvement of all manufacturing costs through WPR4 project while continually including advanced development costs for traction motor system (E-Axle) and others, whose demand is expanding rapidly. The fluctuations of the foreign exchange rates had a negative effect on operating profit of this category by approximately ¥100 million for 3Q compared to 2Q.
Appliance, commercial and industrial products
|
(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales to external customers |
148,238 |
155,965 |
7,727 |
5.2% |
|
Operating profit |
13,055 |
14,198 |
1,143 |
8.8% |
|
Operating profit ratio |
8.8% |
9.1% |
– |
– |
Net sales of this category increased 5.2% to ¥155,965 million for 3Q compared to 2Q, mainly due to an increase in sales of motors and gears for transfer robots in the U.S. and Europe, and compressors for home appliances. The fluctuations of the foreign currency exchange rates had a negative effect on net sales of this category by approximately ¥1,800 million for 3Q compared to 2Q.
Operating profit of this category increased 8.8% to ¥14,198 million for 3Q compared to 2Q, mainly due to the increase in sales, manufacturing cost improvement and fixed cost rationalization and other factors. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥300 million for 3Q compared to 2Q.
Machinery
|
(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales to external customers |
38,921 |
36,866 |
(2,055) |
(5.3)% |
|
Operating profit |
6,148 |
7,364 |
1,216 |
19.8% |
|
Operating profit ratio |
15.8% |
20.0% |
– |
– |
Net sales of this category decreased 5.3% to ¥36,866 million for 3Q compared to 2Q, due to a decrease in sales of LCD panel handling robots and others.
Operating profit of this category increased 19.8% to ¥7,364 million for 3Q compared to 2Q due to manufacturing cost improvement and fixed cost rationalization and other factors, despite the decrease in sales.
Electronic and optical components
|
(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales to external customers |
15,521 |
16,074 |
553 |
3.6% |
|
Operating profit |
1,821 |
1,669 |
(152) |
(8.3)% |
|
Operating profit ratio |
11.7% |
10.4% |
– |
– |
Net sales of this category increased 3.6% to ¥16,074 million for 3Q compared to 2Q and operating profit of this category decreased 8.3% to ¥1,669 million for 3Q compared to 2Q.
Other products
|
(Yen in millions) |
||||
|
For the three months ended |
Increase or decrease |
Ratio of change |
||
|
September 30, 2020 |
December 31, 2020 |
|||
|
Net sales to external customers |
856 |
929 |
73 |
8.5% |
|
Operating profit |
97 |
57 |
(40) |
(41.2)% |
|
Operating profit ratio |
11.3% |
6.1% |
– |
– |
Net sales of this category increased 8.5% to ¥929 million for 3Q compared to 2Q and operating profit of this category decreased 41.2% to ¥57 million for 3Q compared to 2Q.
(2) Financial Position
|
(Yen in millions) |
|||
|
As of March 31, 2020 |
As of December 31, |
Increase or |
|
|
2020 |
decrease |
||
|
Total assets |
2,122,493 |
2,113,427 |
(9,066) |
|
Total liabilities |
1,154,860 |
1,110,986 |
(43,874) |
|
Total equity attributable to owners of the parent |
947,290 |
982,396 |
35,106 |
|
Interest-bearing debt *1 |
599,951 |
559,530 |
(40,421) |
|
Net interest-bearing debt *2 |
392,965 |
371,160 |
(21,805) |
|
Debt ratio (%) *3 |
28.3 |
26.5 |
(1.8) |
|
Debt to equity ratio (“D/E ratio”) (times) *4 |
0.63 |
0.57 |
(0.06) |
|
Net D/E ratio (times) *5 |
0.41 |
0.38 |
(0.03) |
|
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 ¥9,066 million to ¥2,113,427 million as of December 31, 2020 compared to March 31, 2020. This was mainly due to a decrease of ¥18,616 million in cash and cash equivalents. On the other hand, there were increases of ¥21,221 million in trade and other receivables, and ¥3,527 million in other financial assets.
Total liabilities decreased ¥43,874 million to ¥1,110,986 million as of December 31, 2020 compared to March 31, 2020. This was mainly due to a decrease of ¥40,421 million in interest-bearing debt. Specifically, short term borrowings decreased ¥29,087 million to ¥87,867 million, long term debt due within one year decreased ¥13,480 million to ¥98,394 million and long term debt increased ¥2,146 million to ¥373,269 million as of December 31, 2020 compared to March 31, 2020.
As a result, net interest-bearing debt decreased to ¥371,160 million as of December 31, 2020 from ¥392,965 million as of March 31, 2020. The debt ratio that includes lease liabilities decreased to 26.5% as of December 31, 2020 from 28.3% as of March 31, 2020. The D/E ratio decreased to 0.57 times as of December 31, 2020 from 0.63 times as of March 31, 2020. The net D/E ratio decreased to 0.38 times as of December 31, 2020 from 0.41 times as of March 31, 2020.
Total equity attributable to owners of the parent increased ¥35,106 million to ¥982,396 million as of December 31, 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 December 31, 2020 from 44.6% as of March 31, 2020. This was mainly due to an increase in retained earnings of ¥51,327 million, though there was a decrease in other components of equity of ¥10,804 million caused mainly by foreign currency translation adjustments.
NIDEC finalized the provisional accounting treatment for the business combination in the nine months ended December 31, 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.
Overview of Cash Flow
|
(Yen in millions) |
|||
|
For the nine months ended December 31, |
Increase or decrease |
||
|
2019 |
2020 |
||
|
Net cash provided by operating activities |
132,227 |
146,169 |
13,942 |
|
Net cash used in investing activities |
(301,662) |
(77,231) |
224,431 |
|
Free cash flow *1 |
(169,435) |
68,938 |
238,373 |
|
Net cash (used in) provided by financing activities |
156,672 |
(89,159) |
(245,831) |
(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 nine-month period came to a net cash inflow of ¥146,169 million. Compared to the same period of the prior year, the cash inflow from operating activities for this nine-month period increased ¥13,942 million. This increase was mainly due to increases in profit for the period of ¥33,659 million and in inventories net changes year on year of ¥9,395 million. On the other hand, there was a decrease in accounts receivable net changes year on year of ¥27,872 million.
Cash flows from investing activities for this nine-month period came to a net cash outflow of ¥77,231 million. Compared to the same period of the prior year, the net cash outflow from investing activities for this nine-month period decreased ¥224,431 million mainly due to decreases in acquisitions of business, net of cash acquired of ¥187,470 million, and in additions to property, plant and equipment of ¥37,713 million.
As a result, we had a positive free cash flow of ¥68,938 million for this nine-month period, an increase of ¥238,373 million compared to a negative free cash flow of ¥169,435 million for the same period of the prior year.
Cash flows from financing activities for this nine-month period came to a net cash outflow of ¥89,159 million. Compared to the same period of the prior year, the net cash outflow from financing activities for this nine-month period increased ¥245,831 million mainly due to decreases in proceeds from issuance of bonds of ¥150,000 million, and in short term borrowings net changes year on year of ¥106,823 million.
As a result of the foregoing factors and the impact of foreign exchange fluctuations, the balance of cash and cash equivalents as of December 31, 2020 decreased ¥18,616 million to ¥188,370 million from March 31, 2020. All the above amounts include discontinued operations.
(3) Explanation Regarding Future Forecast Information of Consolidated Financial Results
The global economy is on a recovery track thanks to large-scale fiscal stimulus and the continuation of monetary easing policies, particularly in developed countries. While expectations are rising that the outbreak of the COVID-19 infection will be brought to an end by the start of vaccinations, the continuing spread of the COVID-19 in major regions of the world and the occurrence of variants continues to be a major risk factor for the global economy. In addition, the situation is expected to remain unpredictable due to risk factors such as the U.S.-China conflict and the policy trends of the new U.S. administration.
Under such an environment, as the business forecasts in the nine months ended December 31, 2020 was stronger than our expectations underlying our previous forecasts announced on October 26, 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 |
¥155,000 |
million |
(142.8% compared to the previous fiscal year) |
|
Profit before income taxes |
¥150,000 |
million |
(142.6% compared to the previous fiscal year) |
|
Profit attributable to owners of the parent |
¥120,000 |
million |
(205.3% 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.
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 December 31, 2020 |
||
|
Assets |
|||
|
Current assets |
|||
|
Cash and cash equivalents |
206,986 |
188,370 |
|
|
Trade and other receivables |
394,259 |
415,480 |
|
|
Other financial assets |
913 |
4,320 |
|
|
Income tax receivables |
12,885 |
9,302 |
|
|
Inventories |
278,185 |
273,289 |
|
|
Other current assets |
40,309 |
41,145 |
|
|
Total current assets |
|||
|
933,537 |
931,906 |
||
|
Non-current assets |
|||
|
Property, plant and equipment |
633,604 |
634,799 |
|
|
Goodwill |
310,487 |
307,260 |
|
|
Intangible assets |
191,653 |
187,245 |
|
|
Investments accounted for using the equity method |
3,294 |
2,794 |
|
|
Other investments |
14,479 |
18,735 |
|
|
Other financial assets |
6,888 |
7,008 |
|
|
Deferred tax assets |
18,274 |
14,019 |
|
|
Other non-current assets |
10,277 |
9,661 |
|
|
Total non-current assets |
|||
|
1,188,956 |
1,181,521 |
||
|
Total assets |
2,122,493 |
2,113,427 |
|
|
(Yen in millions) |
|||
|
As of March 31, 2020 |
As of December 31, 2020 |
||
|
Liabilities |
|||
|
Current liabilities |
|||
|
Short term borrowings |
116,954 |
87,867 |
|
|
Long term debt due within one year |
111,874 |
98,394 |
|
|
Trade and other payables |
345,193 |
347,625 |
|
|
Other financial liabilities |
9,109 |
6,977 |
|
|
Income tax payables |
18,726 |
16,329 |
|
|
Provisions |
30,430 |
28,469 |
|
|
Other current liabilities |
64,884 |
65,683 |
|
|
Total current liabilities |
697,170 |
651,344 |
|
|
Non-current liabilities |
|||
|
Long term debt |
371,123 |
373,269 |
|
|
Other financial liabilities |
4,085 |
1,968 |
|
|
Retirement benefit liabilities |
31,077 |
32,026 |
|
|
Provisions |
942 |
719 |
|
|
Deferred tax liabilities |
45,830 |
46,430 |
|
|
Other non-current liabilities |
4,633 |
5,230 |
|
|
Total non-current liabilities |
457,690 |
459,642 |
|
|
Total liabilities |
1,154,860 |
1,110,986 |
|
|
Equity |
|||
|
Common stock |
87,784 |
87,784 |
|
|
Additional paid-in capital |
114,754 |
109,445 |
|
|
Retained earnings |
924,293 |
975,620 |
|
|
Other components of equity |
(115,791) |
(126,595) |
|
|
Treasury stock |
(63,750) |
(63,858) |
|
|
Total equity attributable to owners of the parent |
947,290 |
982,396 |
|
|
Non-controlling interests |
20,343 |
20,045 |
|
|
Total equity |
967,633 |
1,002,441 |
|
|
Total liabilities and equity |
2,122,493 |
2,113,427 |
|
-
Condensed Quarterly Consolidated Statements of Income
and Condensed Quarterly Consolidated Statements of Comprehensive Income
For the nine month ended December 31, 2019 and 2020
|
Condensed Quarterly Consolidated Statements of Income |
(Yen in millions) |
|
|
For the nine months ended December 31, |
||
|
2019 |
2020 |
|
|
Continuing operations |
||
|
Net Sales |
1,159,608 |
1,184,991 |
|
Cost of sales |
(902,363) |
(917,787) |
|
Gross profit |
257,245 |
267,204 |
|
Selling, general and administrative expenses |
(105,607) |
(102,027) |
|
Research and development expenses |
(58,434) |
(49,642) |
|
Operating profit |
93,204 |
115,535 |
|
Financial income |
7,861 |
3,133 |
|
Financial expenses |
(7,243) |
(4,771) |
|
Derivative gain (loss) |
(783) |
(1,181) |
|
Foreign exchange differences |
1,242 |
(2,777) |
|
Share of net profit (loss) from associate accounting using the |
(1,231) |
(599) |
|
equity method |
||
|
Profit before income taxes |
93,050 |
109,340 |
|
Income tax expenses |
(23,190) |
(24,820) |
|
Profit for the period from continuing operations |
69,860 |
84,520 |
|
Discontinued operations |
||
|
Loss for the period from discontinued operations |
(19,131) |
(132) |
|
Profit for the period |
50,729 |
84,388 |
Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period
49,32683,636
1,403752
50,72984,388
|
Condensed Quarterly Consolidated Statements of Comprehensive Income |
(Yen in millions) |
||
|
For the nine months ended December 31, |
|||
|
2019 |
2020 |
||
|
Profit for the period |
50,729 |
84,388 |
|
|
Other comprehensive income, net of taxation |
|||
|
Items that will not be reclassified to net profit or loss: |
|||
|
Remeasurement of defined benefit plans |
(928) |
(111) |
|
|
Fair value movements on FVTOCI equity financial assets |
1,444 |
1,995 |
|
|
Items that may be reclassified to net profit or loss: |
|||
|
Foreign currency translation adjustments |
(18,494) |
(16,374) |
|
|
Effective portion of net changes in fair value of cash flow hedges |
342 |
6,221 |
|
|
Fair value movements on FVTOCI debt financial assets |
3 |
6 |
|
|
Total other comprehensive income for the period, net of taxation |
(17,633) |
(8,263) |
|
|
Comprehensive income for the period |
33,096 |
76,125 |
|
|
Comprehensive income for the period attributable to: |
|||
|
Owners of the parent |
32,224 |
74,727 |
|
|
Non-controlling interests |
872 |
1,398 |
|
|
Comprehensive income for the period |
33,096 |
76,125 |
|
For the three months ended December 31, 2019 and 2020
Condensed Quarterly Consolidated Statements of Income
(Yen in millions)
For the three months ended December 31,
20192020
Continuing operations
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses Research and development expenses
Operating profit
Financial income
Financial expenses
Derivative gain (loss)
Foreign exchange differences
Share of net profit (loss) from associate accounting using the equity method
Profit before income taxes
Income tax expenses
Profit for the period from continuing operations Discontinued operations
Profit (loss) for the period from discontinued operations Profit for the period
Profit for the period attributable to:
Owners of the parent
Non-controlling interests
Profit for the period
|
408,331 |
433,197 |
|
(319,590) |
(332,708) |
|
88,741 |
100,489 |
|
(35,943) |
(35,734) |
|
(21,381) |
(18,400) |
|
31,417 |
46,355 |
|
1,811 |
903 |
|
(1,729) |
(1,569) |
|
947 |
(561) |
|
(2,288) |
(1,474) |
|
(438) |
(319) |
|
29,720 |
43,335 |
|
(8,231) |
(8,253) |
|
21,489 |
35,082 |
|
824 |
(33) |
|
22,313 |
35,049 |
|
22,099 |
34,853 |
|
214 |
196 |
|
22,313 |
35,049 |
Condensed Quarterly Consolidated Statements of Comprehensive Income
|
(Yen in millions) |
|||
|
For the three months ended December 31, |
|||
|
2019 |
2020 |
||
|
Profit for the period |
22,313 |
35,049 |
|
|
Other comprehensive income, net of taxation |
|||
|
Items that will not be reclassified to net profit or loss: |
|||
|
Remeasurement of defined benefit plans |
44 |
(90) |
|
|
Fair value movements on FVTOCI equity financial assets |
1,452 |
1,517 |
|
|
Items that may be reclassified to net profit or loss: |
|||
|
Foreign currency translation adjustments |
30,929 |
(3,011) |
|
|
Effective portion of net changes in fair value of cash flow hedges |
1,457 |
2,125 |
|
|
Fair value movements on FVTOCI debt financial assets |
(1) |
(19) |
|
|
Total other comprehensive income for the period, net of taxation |
33,881 |
522 |
|
|
Comprehensive income for the period |
56,194 |
35,571 |
|
|
Comprehensive income for the period attributable to: |
|||
|
Owners of the parent |
55,092 |
34,913 |
|
|
Non-controlling interests |
1,102 |
658 |
|
|
Comprehensive income for the period |
56,194 |
35,571 |
|
(3) Condensed Quarterly Consolidated Statements of Changes in Equity
|
For the nine months ended December 31, 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 |
49,326 |
49,326 |
1,403 |
50,729 |
|||||
|
Other comprehensive income |
(17,102) |
(17,102) |
(531) |
(17,633) |
|||||
|
Total comprehensive income |
|||||||||
|
32,224 |
872 |
33,096 |
|||||||
|
Transactions with owners directly recognized in |
|||||||||
|
equity: |
|||||||||
|
Purchase of treasury stock |
(21) |
(21) |
– |
(21) |
|||||
|
Dividends paid to the owners of the parent |
(32,372) |
(32,372) |
– |
(32,372) |
|||||
|
Dividends paid to non-controlling interests |
– |
(744) |
(744) |
||||||
|
Share-based payment transactions |
202 |
202 |
– |
202 |
|||||
|
Transfer to retained earnings |
463 |
(463) |
– |
– |
– |
||||
|
Changes in equity by purchase of shares |
of |
(2,133) |
(2,133) |
492 |
(1,641) |
||||
|
consolidated subsidiaries |
|||||||||
|
Other |
7 |
(823) |
(1) |
4 |
(813) |
167 |
(646) |
||
|
Balance at December 31, 2019 |
87,784 |
116,390 |
916,955 |
(82,341) |
(45,313) |
993,475 |
23,621 |
1,017,096 |
|
|
For the nine months ended December 31, 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 |
83,636 |
83,636 |
752 |
84,388 |
|||||
|
Other comprehensive income |
(8,909) |
(8,909) |
646 |
(8,263) |
|||||
|
Total comprehensive income |
|||||||||
|
74,727 |
1,398 |
76,125 |
|||||||
|
Transactions with owners directly recognized in |
|||||||||
|
equity: |
|||||||||
|
Purchase of treasury stock |
(116) |
(116) |
– |
(116) |
|||||
|
Dividends paid to the owners of the parent |
(35,145) |
(35,145) |
– |
(35,145) |
|||||
|
Dividends paid to non-controlling interests |
– |
(645) |
(645) |
||||||
|
Share-based payment transactions |
144 |
144 |
– |
144 |
|||||
|
Transfer to retained earnings |
1,895 |
(1,895) |
– |
– |
– |
||||
|
Changes in equity by purchase of shares |
of |
(5,453) |
(5,453) |
(1,144) |
(6,597) |
||||
|
consolidated subsidiaries |
|||||||||
|
Other |
941 |
8 |
949 |
93 |
1,042 |
||||
|
Balance at December 31, 2020 |
87,784 |
109,445 |
975,620 |
(126,595) |
(63,858) |
982,396 |
20,045 |
1,002,441 |
|
(4) Condensed Quarterly Consolidated Statements of Cash Flows
|
(Yen in millions) |
|||
|
For the nine months ended December 31, |
|||
|
2019 |
2020 |
||
|
Cash flows from operating activities: |
|||
|
Profit for the period from continuing operations |
69,860 |
84,520 |
|
|
Profit (loss) for the period from discontinued operations |
(19,131) |
(132) |
|
|
Profit for the period |
50,729 |
84,388 |
|
|
Adjustments to reconcile profit for the period to net cash |
|||
|
provided by operating activities |
|||
|
Depreciation and amortization |
63,233 |
72,171 |
|
|
Loss (gain) from sales, disposal or impairment of property, |
846 |
1,975 |
|
|
plant and equipment |
|||
|
Loss from sales of discontinued operations |
17,591 |
132 |
|
|
Financial expenses (income) |
(778) |
1,627 |
|
|
Share of net loss (profit) from associate accounting using the |
1,231 |
599 |
|
|
equity method |
|||
|
Deferred income taxes |
4,633 |
2,030 |
|
|
Current income taxes |
20,165 |
22,790 |
|
|
Foreign currency adjustments |
1,390 |
(8,655) |
|
|
Increase (decrease) in retirement benefit liability |
1,392 |
1,195 |
|
|
Decrease (increase) in accounts receivable |
2,922 |
(24,950) |
|
|
Decrease (increase) in inventories |
(8,610) |
785 |
|
|
Increase (decrease) in accounts payable |
10,833 |
30,026 |
|
|
Other, net |
(13,785) |
(15,095) |
|
|
Interests and dividends received |
7,201 |
2,670 |
|
|
Interests paid |
(5,991) |
(3,973) |
|
|
Income taxes paid |
(20,775) |
(21,546) |
|
|
Net cash provided by operating activities |
132,227 |
146,169 |
|
(Yen in millions) |
|||
|
For the nine months ended December 31, |
|||
|
2019 |
2020 |
||
|
Cash flows from investing activities: |
|||
|
Additions to property, plant and equipment |
(103,762) |
(66,049) |
|
|
Proceeds from sales of property, plant and |
1,490 |
2,345 |
|
|
equipment |
|||
|
Additions to intangible assets |
(8,399) |
(10,020) |
|
|
Proceeds from sales of discontinued operations |
5,448 |
2,637 |
|
|
Acquisitions of business, net of cash acquired |
(192,921) |
(5,451) |
|
|
Other, net |
(3,518) |
(693) |
|
|
Net cash used in investing activities |
(301,662) |
(77,231) |
|
|
Cash flows from financing activities: |
|||
|
Increase (decrease) in short term borrowings |
76,625 |
(30,198) |
|
|
Proceeds from issuance of long term debt |
64 |
– |
|
|
Repayments of long term debt |
(20,463) |
(18,975) |
|
|
Proceeds from issuance of bonds |
200,000 |
50,000 |
|
|
Redemption of bonds |
(65,000) |
(50,000) |
|
|
Payments for acquisition of interests in subsidiaries |
(2,583) |
(5,311) |
|
|
from noncontrolling interests |
|||
|
Purchase of treasury stock |
(21) |
(116) |
|
|
Dividends paid to the owners of the parent |
(32,372) |
(35,145) |
|
|
Other, net |
422 |
586 |
|
|
Net cash (used in) provided by financing activities |
156,672 |
(89,159) |
|
|
Effect of exchange rate changes on cash and |
(9,690) |
1,605 |
|
|
cash equivalents |
|||
|
Net increase (decrease) in cash and cash equivalents |
(22,453) |
(18,616) |
|
|
Cash and cash equivalents at beginning of period |
242,267 |
206,986 |
|
|
Cash and cash equivalents at end of period |
219,814 |
188,370 |
|
-
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
Condensed quarterly consolidated financial statements as of December 31, 2020 and for the nine 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:
- Small precision motors, which include spindle motors for hard disk drives, brushless motors, fan motors, vibration motors, brush motors and motor applications.
- Automotive products, which include automotive motors and components.
- Appliance, commercial and industrial products, which include home appliance, commercial and industrial motors and related products.
- Machinery, which includes industrial robots, card readers, test systems, press machines and power transmission drives.
- Electronic and optical components, which include switches, trimmer potentiometers, lens units and camera shutters.
- Others, which include services.
2. Basis of preparation
-
Compliance with International Financial Reporting Standards (IFRS)
The condensed quarterly consolidated financial statements of NIDEC have been prepared in accordance with IAS 34 “Interim
Financial Reporting” pursuant to the provision of article 93 of Regulations for Quarterly Consolidated Financial Statements, as the Company meets the criteria of a “Designated IFRS Specified Company” defined 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.
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 nine months ended December 31, 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 December 31, 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 nine months ended December 31, 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 December 31, 2020.
23
3. Others
- Quarterly Financial Data for the three months ended December 31, 2020 and September 30, 2020 and June 30, 2020
|
(Yen in millions) |
|||
|
For the three months ended |
|||
|
June 30, 2020 |
September 30, 2020 |
December 31, 2020 |
|
|
Net sales |
336,876 |
414,918 |
433,197 |
|
Operating profit |
27,793 |
41,387 |
46,355 |
|
Profit before income taxes |
27,410 |
38,595 |
43,335 |
|
Profit for the period |
20,387 |
28,952 |
35,049 |
|
Profit attributable to owners of the parent |
20,058 |
28,725 |
34,853 |
|
(2) Information by Product Category |
|||||||||
|
For the nine months ended December 31, 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 |
334,932 |
243,021 |
417,580 |
115,213 |
45,400 |
3,462 |
1,159,608 |
– |
1,159,608 |
|
Intersegment |
4,473 |
859 |
4,174 |
10,122 |
4,746 |
1,408 |
25,782 |
(25,782) |
– |
|
Total |
339,405 |
243,880 |
421,754 |
125,335 |
50,146 |
4,870 |
1,185,390 |
(25,782) |
1,159,608 |
|
Operating expenses |
298,868 |
225,962 |
394,616 |
108,124 |
46,801 |
4,360 |
1,078,731 |
(12,327) |
1,066,404 |
|
Operating profit |
40,537 |
17,918 |
27,138 |
17,211 |
3,345 |
510 |
106,659 |
(13,455) |
93,204 |
|
For the nine months ended December 31, 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 |
339,952 |
256,008 |
429,299 |
111,516 |
45,681 |
2,535 |
1,184,991 |
– |
1,184,991 |
|
Intersegment |
2,434 |
943 |
5,042 |
6,938 |
3,027 |
631 |
19,015 |
(19,015) |
– |
|
Total |
342,386 |
256,951 |
434,341 |
118,454 |
48,708 |
3,166 |
1,204,006 |
(19,015) |
1,184,991 |
|
Operating expenses |
291,166 |
244,877 |
398,121 |
98,761 |
43,722 |
2,928 |
1,079,575 |
(10,119) |
1,069,456 |
|
Operating profit |
51,220 |
12,074 |
36,220 |
19,693 |
4,986 |
238 |
124,431 |
(8,896) |
115,535 |
|
. |
|
For the three months ended December 31, 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 |
115,122 |
92,189 |
147,000 |
38,233 |
14,595 |
1,192 |
408,331 |
– |
408,331 |
|
Intersegment |
1,211 |
54 |
1,566 |
2,561 |
1,613 |
440 |
7,445 |
(7,445) |
– |
|
Total |
116,333 |
92,243 |
148,566 |
40,794 |
16,208 |
1,632 |
415,776 |
(7,445) |
408,331 |
|
Operating expenses |
100,785 |
87,907 |
140,043 |
34,772 |
15,251 |
1,454 |
380,212 |
(3,298) |
376,914 |
|
Operating profit |
15,548 |
4,336 |
8,523 |
6,022 |
957 |
178 |
35,564 |
(4,147) |
31,417 |
|
For the three months ended December 31, 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 |
116,490 |
106,873 |
155,965 |
36,866 |
16,074 |
929 |
433,197 |
– |
433,197 |
|
Intersegment |
857 |
349 |
2,343 |
2,585 |
1,214 |
213 |
7,561 |
(7,561) |
– |
|
Total |
117,347 |
107,222 |
158,308 |
39,451 |
17,288 |
1,142 |
440,758 |
(7,561) |
433,197 |
|
Operating expenses |
99,226 |
99,545 |
144,110 |
32,087 |
15,619 |
1,085 |
391,672 |
(4,830) |
386,842 |
|
Operating profit |
18,121 |
7,677 |
14,198 |
7,364 |
1,669 |
57 |
49,086 |
(2,731) |
46,355 |
(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:
- Small precision motors: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.
- Automotive products: Automotive motors and components.
- Appliance, commercial and industrial products: Home appliance, commercial and industrial motors and related products.
- Machinery: Industrial robots, card readers, test systems, press machines and power transmission drives, etc.
- Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.
- Others: Services, etc.
25
(3) Sales by Geographic Segment
|
(Yen in millions) |
||||||||
|
For the nine months ended December 31, |
Increase or decrease |
|||||||
|
2019 |
2020 |
|||||||
|
Amounts |
% |
Amounts |
% |
Amounts |
% |
|||
|
Japan |
208,340 |
18.0 |
193,796 |
16.4 |
(14,544) |
(7.0) |
||
|
U.S.A. |
220,916 |
19.1 |
236,525 |
20.0 |
15,609 |
7.1 |
||
|
Singapore |
27,071 |
2.3 |
23,319 |
2.0 |
(3,752) |
(13.9) |
||
|
Thailand |
90,927 |
7.8 |
101,126 |
8.4 |
10,199 |
11.2 |
||
|
Germany |
91,453 |
7.9 |
72,366 |
6.1 |
(19,087) |
(20.9) |
||
|
China |
276,860 |
23.9 |
320,608 |
27.1 |
43,748 |
15.8 |
||
|
Others |
244,041 |
21.0 |
237,251 |
20.0 |
(6,790) |
(2.8) |
||
|
Total |
1,159,608 |
100.0 |
1,184,991 |
100.0 |
25,383 |
2.2 |
||
|
(Yen in millions) |
||||||||
|
For the three months ended December 31, |
Increase or decrease |
|||||||
|
2019 |
2020 |
|||||||
|
Amounts |
% |
Amounts |
% |
Amounts |
% |
|||
|
Japan |
71,601 |
17.5 |
68,765 |
15.9 |
(2,836) |
(4.0) |
||
|
U.S.A. |
76,148 |
18.7 |
84,603 |
19.5 |
8,455 |
11.1 |
||
|
Singapore |
9,180 |
2.2 |
3,127 |
0.7 |
(6,053) |
(65.9) |
||
|
Thailand |
31,244 |
7.7 |
32,658 |
7.5 |
1,414 |
4.5 |
||
|
Germany |
28,539 |
7.0 |
27,558 |
6.4 |
(981) |
(3.4) |
||
|
China |
102,079 |
25.0 |
124,302 |
28.7 |
22,223 |
21.8 |
||
|
Others |
89,540 |
21.9 |
92,184 |
21.3 |
2,644 |
3.0 |
||
|
Total |
408,331 |
100.0 |
433,197 |
100.0 |
24,866 |
6.1 |
||
(Note) The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.
(4) Sales by Region
|
(Yen in millions) |
||||||||
|
For the nine months ended December 31, |
Increase or decrease |
|||||||
|
2019 |
2020 |
|||||||
|
Amounts |
% |
Amounts |
% |
Amounts |
% |
|||
|
North America |
247,888 |
21.4 |
253,632 |
21.4 |
5,744 |
2.3 |
||
|
Asia |
537,316 |
46.3 |
579,690 |
48.9 |
42,374 |
7.9 |
||
|
Europe |
196,830 |
17.0 |
185,263 |
15.7 |
(11,567) |
(5.9) |
||
|
Others |
30,792 |
2.6 |
29,643 |
2.5 |
(1,149) |
(3.7) |
||
|
Overseas total |
1,012,826 |
87.3 |
1,048,228 |
88.5 |
35,402 |
3.5 |
||
|
Japan |
146,782 |
12.7 |
136,763 |
11.5 |
(10,019) |
(6.8) |
||
|
Total |
1,159,608 |
100.0 |
1,184,991 |
100.0 |
25,383 |
2.2 |
||
|
(Yen in millions) |
||||||||
|
For the three months ended December 31, |
Increase or decrease |
|||||||
|
2019 |
2020 |
|||||||
|
Amounts |
% |
Amounts |
% |
Amounts |
% |
|||
|
North America |
85,626 |
21.0 |
90,798 |
20.9 |
5,172 |
6.0 |
||
|
Asia |
190,932 |
46.8 |
209,077 |
48.3 |
18,145 |
9.5 |
||
|
Europe |
67,872 |
16.6 |
71,408 |
16.5 |
3,536 |
5.2 |
||
|
Others |
13,070 |
3.2 |
12,218 |
2.8 |
(852) |
(6.5) |
||
|
Overseas total |
357,500 |
87.6 |
383,501 |
88.5 |
26,001 |
7.3 |
||
|
Japan |
50,831 |
12.4 |
49,696 |
11.5 |
(1,135) |
(2.2) |
||
|
Total |
408,331 |
100.0 |
433,197 |
100.0 |
24,866 |
6.1 |
||
(Note) The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.
27
4. Overview of Consolidated Financial Results
January 25, 2021
|
(1) Summary of Consolidated Financial Performance |
(Yen in millions) |
||||||||||||||||||
|
For the nine |
For the nine |
Increase or |
For the three |
For the three |
Increase or |
||||||||||||||
|
months ended |
months ended |
months ended |
months ended |
||||||||||||||||
|
December 31, |
December 31, |
decrease |
December 31, |
December 31, |
decrease |
||||||||||||||
|
2019 |
2020 |
2019 |
2020 |
||||||||||||||||
|
Net Sales |
1,159,608 |
1,184,991 |
2.2 |
% |
408,331 |
433,197 |
6.1 |
% |
|||||||||||
|
Operating profit |
93,204 |
115,535 |
24.0 |
% |
31,417 |
46,355 |
47.5 |
% |
|||||||||||
|
8.0 |
% |
9.7 % |
7.7 |
% |
10.7 % |
||||||||||||||
|
Profit before income taxes |
93,050 |
109,340 |
17.5 |
% |
29,720 |
43,335 |
45.8 |
% |
|||||||||||
|
8.0 |
% |
9.2 % |
7.3 |
% |
10.0 % |
||||||||||||||
|
Profit attributable to owners of the parent |
49,326 |
83,636 |
69.6 |
% |
22,099 |
34,853 |
57.7 |
% |
|||||||||||
|
4.3 |
% |
7.1 % |
5.4 % |
8.0 % |
|||||||||||||||
|
Earnings per share attributable to owners |
83.80 |
142.79 |
37.55 |
59.50 |
|||||||||||||||
|
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 December 31, 2019 |
As of December 31, 2020 |
As of March 31, 2020 |
|||||||||||||||||
|
Total assets |
2,214,301 |
2,113,427 |
2,122,493 |
||||||||||||||||
|
Total equity attributable to owners of the parent |
993,475 |
982,396 |
947,290 |
||||||||||||||||
|
Ratio of total equity attributable to owners of the |
44.9% |
46.5% |
44.6% |
||||||||||||||||
|
parent to total asset |
|||||||||||||||||||
|
For the nine months ended |
For the nine months ended |
For the year ended |
|||||||||||||||||
|
December 31, 2019 |
December 31, 2020 |
March 31, 2020 |
|||||||||||||||||
|
Net cash provided by operating activities |
132,227 |
146,169 |
168,049 |
||||||||||||||||
|
Net cash used in investing activities |
(301,662) |
(77,231) |
(311,513) |
||||||||||||||||
|
Net cash (used in) provided by financing activities |
156,672 |
(89,159) |
128,546 |
||||||||||||||||
|
Cash and cash equivalents at end of period |
219,814 |
188,370 |
206,986 |
||||||||||||||||
|
(3) Dividends |
(Yen) |
||||||||||||||||||
|
3rd 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 |
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Number of consolidated subsidiaries |
333 |
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Number of associates accounted for under the equity method |
3 |
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Change from March 31, 2020 |
Change from December 31, 2019 |
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Number of companies newly consolidated |
5 |
10 |
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Number of companies excluded from consolidation |
4 |
5 |
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Number of companies newly accounted for by the equity method |
– |
– |
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Number of companies excluded from accounting by the equity method |
1 |
1 |
(Notes) 1. The amounts of percentage in “(1) Summary of Consolidated Financial Performance” represent percentage of sales.
- “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”.
- NIDEC finalized the provisional accounting treatment for the business combination in the nine months ended December 31, 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.
- 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.
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Disclaimer
Nidec Corporation published this content on 25 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2021 06:25:03 UTC
Publicnow 2021
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Technical analysis trends NIDEC CORPORATION
| Short Term | Mid-Term | Long Term | |
| Trends | Bullish | Bullish | Bullish |
Income Statement Evolution
Consensus
|
Sell |
|
Buy |
| Mean consensus | BUY |
| Number of Analysts | 20 |
| Average target price | 13 547,22 JPY |
| Last Close Price | 14 200,00 JPY |
| Spread / Highest target | 28,2% |
| Spread / Average Target | -4,60% |
| Spread / Lowest Target | -40,8% |
