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    6594   JP3734800000

NIDEC CORPORATION

(6594)
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Nidec : Financial Results (April-September 2021)

10/26/2021 | 02:36am EST

English translation

Financial Statements Summary for the Six Months Ended September 30, 2021 [IFRS](Consolidated)

Company name:

NIDEC CORPORATION

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

October 26, 2021

Stock listing:

Tokyo Stock Exchange - First Section

Code number:

6594

Representative:

Jun Seki, Representative Director, President and CEO

Information on contact:

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

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

Scheduled date of filing of Japanese quarterly report:

November 12, 2021

Scheduled date of dividend payable:

December 1, 2021

Supplemental materials for quarterly results:

Yes

Quarterly earning presentation held:

Yes

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

(Amounts are rounded to nearest million yen)

1. Consolidated Financial Results for the Six Months ended September 30, 2021 (April 1, 2021 to September 30, 2021)

(1) Consolidated Operating Results

(Percentage represents year-on-year changes)

Net sales

Operating profit

Profit before

Profit attributable to

Comprehensive

income taxes

owners of the parent

income for the period

For the six months ended

%

%

%

%

%

910,668

21.1

90,196

30.4

88,155

33.6

67,610

38.6

78,614

93.9

September 30, 2021

For the six months ended

751,794

-

69,174

-

65,999

-

48,778

-

40,549

-

September 30, 2020

Earnings per share attributable to

Earnings per share attributable to

owners of the parent-basic (Yen)

owners of the parent-diluted (Yen)

For the six months ended September 30, 2021

115.49

-

For the six months ended September 30, 2020

83.28

-

(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. 2. NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2021. Condensed quarterly consolidated financial statements and consolidated financial statements for the year ended March 31, 2021 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

  2. Consolidated Financial Position

Total assets

Total equity

Total equity attributable to

Ratio of total equity attributable to

owners of the parent

owners of the parent to total assets

%

As of September 30, 2021

2,376,573

1,168,779

1,150,336

48.4

As of March 31, 2021

2,256,024

1,113,935

1,096,020

48.6

2. Dividends

Dividends per share (Yen)

1st quarter end

2nd quarter end

3rd quarter end

Fiscal year end

Total

Year ended March 31, 2021

-

30.00

-

30.00

60.00

Year ending March 31,

2022

-

30.00

Year ending March 31,

2022 (Forecast)

-

30.00

60.00

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

3. Forecast of Consolidated Financial Performance for the Year ending March 31, 2022 (April 1, 2021 to March 31, 2022) (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

1,800,000

11.2

190,000

18.8

185,000

21.0

148,000

21.4

252.68

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

Notes

(1)

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

resulting in the change in scope of consolidation)

: None

(2)

Changes in Accounting Policies and Changes in Accounting Estimates:

1.

Changes in accounting policies required by IFRS

: None

2.

Changes in accounting policies due to other reasons

: None

3.

Changes in accounting estimates

: None

  1. Number of Shares Issued (Ordinary Shares)

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

As of September 30, 2021:

596,284,468

As of March 31, 2021: 596,284,468

2.

Number of treasury stock at the end of the period:

As of September 30, 2021:

10,947,644

As of March 31, 2021: 10,552,192

3.

Weighted-average number of shares outstanding during the period:

For the six months ended September 30, 2021: 585,400,659

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

*This quarterly report is not subject to quarterly review procedures by certified public accountants or an auditing firm. *Explanation for appropriate use of forecast and other notes

Forward-looking statements, such as forecast of consolidated financial performance, stated in this document are based on information currently possessed by NIDEC or certain assumptions that NIDEC has deemed as rational. NIDEC cannot make any assurances that the contents mentioned in these forward-looking statements will ever materialize. Actual financial performance could be significantly different from NIDEC's expectations as a result of various factors. For the assumptions used and other notes, please refer to "1. Overview of Operating Results, Etc. (3). Explanation Regarding Future Forecast Information of Consolidated Financial Results" on page 12.

In this document, the terms "we", "us", "our" and "NIDEC" refer to Nidec Corporation and consolidated subsidiaries or, as the context may require, Nidec Corporation on a non-consolidated basis.

NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2021. Condensed quarterly consolidated financial statements and consolidated financial statements for the year ended March 31, 2021 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

Investor presentation materials relating to our financial results for the six months ended September 30, 2021 are expected to be published on our corporate website on October 26, 2021.

1. Overview of Operating Results, Etc.

(1) Overview of Operating Results for the Six Months Ended September 30, 2021

1. Overview of Business Environment for the Six Months Ended September 30, 2021

As of October 2021, the IMF forecasts global economic growth of 5.9% in 2021 and 4.9% in 2022. The IMF had revised downward its previous forecast of 0.1 point growth from 2021. In the environment surrounding NIDEC, risk factors such as concerns over the supply of semiconductors, soaring raw material prices, and the spread of COVID-19 in emerging countries surfaced. The business environment is expected to remain uncertain.

Under these circumstances, we have set a new medium-term strategic target for fiscal year 2025 (Vision2025) and aim to be a growing company that is strongly adapted to changes in the environment.

The outline is as follows.

FY2021 to FY2022

  1. Target for consolidated net sales : ¥2 trillion
  2. Productivity improvement : To increase sales and profit per employee by 30%
  3. ROIC (Return On Invested Capital) : over 10%
  4. To be a top-rated ESG company

FY2023 to FY2025

  1. Target for consolidated net sales : ¥4 trillion
  2. Productivity improvement : To double sales and profit per employee
  3. ROIC (Return On Invested Capital) : over 15%
  4. To be a top-rated ESG company

1

2. Consolidated Operating Results

Consolidated Operating Results for the Six Months Ended September 30, 2021 ("this six-month period"), Compared to the Six Months Ended September 30, 2020 ("the same period of the previous year")

(Yen in millions)

For the six months ended September 30,

Increase or

Ratio of change

decrease

2020

2021

Net sales

751,794

910,668

158,874

21.1%

Operating profit

69,174

90,196

21,022

30.4%

Operating profit ratio

9.2 %

9.9%

-

-

Profit before income taxes

65,999

88,155

22,156

33.6%

Profit for the period from continuing operations

49,433

67,526

18,093

36.6%

Loss for the period from discontinued operations

(99)

(148)

(49)

-

Profit attributable to owners of the parent

48,778

67,610

18,832

38.6%

Consolidated net sales from continuing operations increased 21.1% to ¥910,668 million for this six-month period compared to the same period of the previous year. We renewed the highest record for six-month period, despite the decrease in sales by approximately ¥16,500 million due to the long-termlockdown caused by COVID-19at manufacturing bases in Southeast Asia around Vietnam, the impact of difficulties in procuring semiconductors and other electronic components, and the underproduction in some plants of customers due to the lockdown caused by COVID-19.

Operating profit increased 30.4% to ¥90,196 million for this six-month period compared to the same period of the previous year.

This was due to increased sales of appliance, commercial and industrial products, automotive products, and machinery in addition to thorough manufacturing cost improvement and fixed cost rationalization through WPR4 Project, despite the negative impact of approximately ¥11,100 million including decreased sales and the temporary costs for emergent change of production areas due to the long-termlockdown at manufacturing bases in Southeast Asia around Vietnam, and the impact of semiconductors and other electronic components.

Profit before income taxes increased 33.6% to ¥88,155 million and profit for the period from continuing operations increased 36.6% to ¥67,526 million compared to the same period of the previous year, respectively.

Profit attributable to owners of the parent increased 38.6% to ¥67,610 million for this six-month period compared to the same period of the previous year.

The average exchange rate between the Japanese yen and the U.S. dollar for this six-month period was ¥109.80 to the U.S. dollar, which reflected an approximately 3% depreciation of the Japanese yen against the U.S. dollar, compared to the same period of the previous year. The average exchange rate between the Japanese yen and the Euro for this six-month period was ¥130.90 to the Euro, which reflected an approximately 8% depreciation of the Japanese yen against the Euro, compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had positive effects on net sales by approximately ¥35,600 million and on operating profit by approximately ¥4,000 million for this six-month period compared to the same period of the previous year.

NIDEC finalized the provisional accounting treatment for the business combination in the six months ended September 30, 2021. Condensed quarterly consolidated financial statements for the six months ended September 30, 2021 reflect the revision of the initially allocated amounts of acquisition price as NIDEC finalized the provisional accounting treatment for the business combination.

2

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

Small precision motors

(Yen in millions)

For the six months ended September 30,

Increase or decrease

Ratio of change

2020

2021

Net sales to external customers

223,462

205,111

(18,351)

(8.2)%

Spindle motors for hard disk

84,206

49,440

(34,766)

(41.3)%

drives (HDDs)

Other small precision motors

139,256

155,671

16,415

11.8%

Operating profit

33,099

23,095

(10,004)

(30.2)%

Operating profit ratio

14.8%

11.3%

-

-

Net sales of this category decreased 8.2% to ¥205,111 million for this six-month period compared to the same period of the previous year. The fluctuations of the foreign currency exchange rates had a positive effect on net sales of this category by approximately ¥10,300 million for this six-month period compared to the same period of the previous year.

Net sales of spindle motors for HDDs decreased 41.3% to ¥49,440 million for this six-month period compared to the same period of the previous year due to the underproduction of customers caused by shortage of electronic components and the lockdown by COVID-19 at some plants of customers and others. On the other hand, net sales of other small precision motors increased 11.8% to ¥155,671 million for this six-month period compared to the same period of the previous year by engaging in new demands one after another by launching a number of new products such as IT fan motors, high-efficiency motors for home appliances, and thermal solution products for game consoles and other products, despite the decrease in sales by approximately ¥10,000 million due to the long-term lockdown caused by COVID-19 at the manufacturing bases in Southeast Asia around Vietnam, and the impact of difficulties in procuring semiconductors and other electronic components.

Although NIDEC made thorough manufacturing cost improvement and others by in-house production of parts, operating profit of this category decreased 30.2% to ¥23,095 million for this six-month period compared to the same period of the previous year as a result of the negative effect by approximately ¥8,500 million including the impact of decreased sales due to the long-term lockdown at manufacturing bases in Southeast Asia around Vietnam, and the temporary costs for emergent change of production areas.

The fluctuations of the foreign currency exchange rates had a positive effect on operating profit of this category by approximately ¥3,900 million for this six-month period compared to the same period of the previous year.

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Nidec Corporation published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 06:35:03 UTC.


© Publicnow 2021
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Net income 2022 150 B 1 318 M 1 318 M
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