Nidec : 3rd Quarter Ended December 31, 2020

English translation Financial Statements Summary for the Nine







English translation

Financial Statements Summary for the Nine Months Ended December 31, 2020 [IFRS](Consolidated)

Company name:

NIDEC CORPORATION

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

January 25, 2021

Stock listing:

Tokyo Stock Exchange – First Section

Code number:

6594

Representative:

Jun Seki, Representative Director, President and COO

Information on contact:

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

Department Tel: +81-75-935-6140 [email protected]

Scheduled date of filing of Japanese quarterly report:

February 12, 2021

Scheduled date of dividend payable:

Supplemental materials for quarterly results:

Yes

Quarterly earning presentation held:

Yes

(Amount Unit: Yen in Millions, unless otherwise indicated)

(Amounts are rounded to nearest million yen)

1. Consolidated Financial Results for the nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020)

(1) Consolidated Operating Results

(Percentage represents year-on-year changes)

Net sales

Operating profit

Profit before

Profit attributable to

Comprehensive

income taxes

owners of the parent

income for the period

For the nine months ended

%

%

%

%

%

1,184,991

2.2

115,535

24.0

109,340

17.5

83,636

69.6

76,125

December 31, 2020

For the nine months ended

1,159,608

93,204

93,050

49,326

33,096

December 31, 2019

Earnings per share attributable to

Earnings per share attributable to

owners of the parent-basic (Yen)

owners of the parent-diluted (Yen)

For the nine months ended December 31, 2020

142.79

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”.

    1. 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.
    2. NIDEC implemented a two-for-one common stock split, effective April 1, 2020. Earnings per share attributable to owners of the parent-basic and Earnings per share attributable to owners of the parent-diluted were calculated on the assumption that the relevant stock split had been implemented at the beginning of the year ended March 31, 2020.
  1. Consolidated Financial Position

Total assets

Total equity

Total equity attributable to

Ratio of total equity attributable to

owners of the parent

owners of the parent to total assets

%

As of December 31, 2020

2,113,427

1,002,441

982,396

46.5

As of March 31, 2020

2,122,493

967,633

947,290

44.6

2. Dividends

Dividends per share (Yen)

1st quarter end

2nd quarter end

3rd quarter end

Fiscal year end

Total

Year ended March 31, 2020

55.00

60.00

115.00

Year ending March 31,

2021

30.00

Year ending March 31,

2021 (Forecast)

30.00

60.00

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

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

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

Profit before

Profit attributable to

Earnings per share

Net sales

Operating profit

attributable to owners

income taxes

owners of the parent

of the parent-basic

%

%

%

%

(Yen)

Fiscal year end

1,550,000

1.0

155,000

42.8

150,000

42.6

120,000

105.3

204.87

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

Notes

(1)

Changes in Significant Subsidiaries during This Period (changes in “specified subsidiaries” (tokutei kogaisha)

resulting in the change in scope of consolidation)

: None

(2)

Changes in Accounting Policies and Changes in Accounting Estimates:

1.

Changes in accounting policies required by IFRS

: None

2.

Changes in accounting policies due to other reasons

: None

3.

Changes in accounting estimates

: None

  1. Number of Shares Issued (Ordinary Shares)

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

As of December 31, 2020:

596,284,468

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

2.

Number of treasury stock at the end of the period:

As of December 31, 2020:

10,551,496

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

3.

Weighted-average number of shares outstanding during the period:

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)

For the nine months ended December 31,

Increase or

Ratio of change

decrease

2019

2020

Net sales

1,159,608

1,184,991

25,383

2.2%

Operating profit

93,204

115,535

22,331

24.0%

Operating profit ratio

8.0 %

9.7%

Profit before income taxes

93,050

109,340

16,290

17.5%

Profit for the period from continuing operations

69,860

84,520

14,660

21.0%

Loss for the period from discontinued operations

(19,131)

(132)

18,999

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

(Yen in millions)

For the nine months ended December 31,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

334,932

339,952

5,020

1.5%

Spindle motors for hard disk

117,185

116,417

(768)

(0.7)%

drives (HDDs)

Other small precision motors

217,747

223,535

5,788

2.7%

Operating profit

40,537

51,220

10,683

26.4%

Operating profit ratio

12.1%

15.1%

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

(Yen in millions)

For the nine months ended December 31,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

243,021

256,008

12,987

5.3%

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

(Yen in millions)

For the nine months ended December 31,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

417,580

429,299

11,719

2.8%

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

(Yen in millions)

For the nine months ended December 31,

Increase or decrease

Ratio of change

2019

2020

Net sales to external customers

115,213

111,516

(3,697)

(3.2)%

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

(Yen in millions)

For the nine months ended December 31,

Increase or decrease

Ratio of change

2019

2020

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”)

(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

  1. 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

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

Notes to Condensed Quarterly Consolidated Financial Statements

1. Reporting entity

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

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

Condensed quarterly consolidated financial statements as of 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:

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

2. Basis of preparation

  1. Compliance with International Financial Reporting Standards (IFRS)
    The condensed quarterly consolidated financial statements of NIDEC have been prepared in accordance with IAS 34 “Interim

Financial Reporting” pursuant to the provision of article 93 of Regulations for Quarterly Consolidated Financial Statements, as the Company meets the criteria of a “Designated IFRS Specified Company” defined in article 1-2 of the regulations.

The condensed quarterly consolidated financial statements do not include all the information that must be disclosed in the annual consolidated financial statements, and therefore should be used in conjunction with the consolidated financial statements for the year ended March 31, 2020.

(2) Basis of measurement

The condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for some assets and liabilities, including derivative and other financial instruments measured at fair value.

(3) Presentation currency and level of rounding

The condensed quarterly consolidated financial statements are presented in Japanese Yen, which is also the Company’s functional currency, and figures are rounded to the nearest million yen, unless otherwise indicated.

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

  1. 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:

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

25

(3) Sales by Geographic Segment

(Yen in millions)

For the 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

Number of consolidated subsidiaries

333

Number of associates accounted for under the equity method

3

Change from March 31, 2020

Change from December 31, 2019

Number of companies newly consolidated

5

10

Number of companies excluded from consolidation

4

5

Number of companies newly accounted for by the equity method

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.

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

28

Disclaimer

Nidec Corporation published this content on 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

All news about NIDEC CORPORATION

Sales 2021 1 565 B
15 089 M
15 089 M
Net income 2021 111 B
1 073 M
1 073 M
Net Debt 2021 403 B
3 887 M
3 887 M
P/E ratio 2021 74,9x
Yield 2021 0,42%
Capitalization 8 317 B
80 136 M
80 196 M
EV / Sales 2021 5,57x
EV / Sales 2022 5,01x
Nbr of Employees 117 206
Free-Float 85,4%


Duration :


Period :



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Mean consensus BUY
Number of Analysts 20
Average target price
13 547,22 JPY
Last Close Price
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Spread / Highest target 28,2%
Spread / Average Target -4,60%
Spread / Lowest Target -40,8%