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    6594   JP3734800000

NIDEC CORPORATION

(6594)
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Nidec : 1st Quarter Ended June 30, 2021

07/21/2021 | 03:27am EDT

English translation

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

Company name:

NIDEC CORPORATION

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

July 21, 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:

August 6, 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 Three Months ended June 30, 2021 (April 1, 2021 to June 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 three months ended

%

%

%

%

%

447,470

32.8

44,555

60.3

43,752

59.6

33,451

66.8

38,698

89.5

June 30, 2021

For the three months ended

336,876

-

27,793

-

27,410

-

20,058

-

20,422

-

June 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 three months ended June 30, 2021

57.14

-

For the three months ended June 30, 2020

34.24

-

(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 three months ended June 30, 2021. 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 June 30, 2021

2,281,013

1,127,656

1,110,766

48.7

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

-

Year ending March 31,

2022 (Forecast)

30.00

-

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)

Net sales

Operating profit

Profit before

Profit attributable to

Earnings per share

attributable to owners

income taxes

owners of the parent

of the parent-basic

%

%

%

%

(Yen)

2nd Quarter end

800,000

6.4

80,000

15.7

78,000

18.2

60,000

23.0

102.44

Fiscal year end

1,700,000

5.1

180,000

12.5

175,000

14.4

140,000

14.8

239.02

(Note) Revision of the previously announced financial performance forecast during this reporting period: None

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 June 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 June 30, 2021:

10,948,354

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

3.

Weighted-average number of shares outstanding during the period:

For the three months ended June 30, 2021: 585,465,018

For the three months ended June 30, 2020: 585,733,720

*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 three months ended June 30, 2021. 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 three months ended June 30, 2021 are expected to be published on our corporate website on July 21, 2021.

1. Overview of Operating Results, Etc.

(1) Overview of Operating Results for the Three Months Ended June 30, 2021

1. Overview of Business Environment for the Three Months Ended June 30, 2021

The World Bank forecasts the global economic growth rate for the calendar year 2021 to be + 5.6% as of June 2021, which is 1.5

points higher than the previous announcement in January 2021, reflecting the faster vaccination pace in many developed countries and additional financial support in the United States. The business environment is expected to remain uncertain due to emerging risk factors such as the COVID-19 spreading again, soaring raw material prices, and shortages of semiconductors and other components. 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 Three Months Ended June 30, 2021 ("this three-month period"), Compared to the Three Months Ended June 30, 2020 ("the same period of the previous year")

(Yen in millions)

For the three months ended June 30,

Increase or

Ratio of change

decrease

2020

2021

Net sales

336,876

447,470

110,594

32.8%

Operating profit

27,793

44,555

16,762

60.3%

Operating profit ratio

8.3 %

10.0%

-

-

Profit before income taxes

27,410

43,752

16,342

59.6%

Profit for the period from continuing operations

20,461

33,384

12,923

63.2%

Loss for the period from discontinued operations

(74)

(39)

35

-

Profit attributable to owners of the parent

20,058

33,451

13,393

66.8%

Consolidated net sales from continuing operations increased 32.8% to ¥447,470 million for this three-month period compared to the same period of the previous year, renewing the highest record of the quarterly consolidated accounting period. Operating profit increased 60.3% to ¥44,555 million for this three-month period compared to the same period of the previous year mainly due to thorough manufacturing cost improvement, fixed cost rationalization, and others through WPR4 Project in addition to increased sales of appliance, commercial and industrial products and automotive products.

Profit before income taxes increased 59.6% to ¥43,752 million and profit for the period from continuing operations increased 63.2% to ¥33,384 million compared to the same period of the previous year, respectively.

Profit attributable to owners of the parent increased 66.8% to ¥33,451 million for this three-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 three-month period was ¥109.49 to the U.S. dollar, which reflected an approximately 2% 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 three-month period was ¥131.96 to the Euro, which reflected an approximately 11% 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 ¥17,000 million and on operating profit by approximately ¥1,000 million for this three-month period compared to the same period of the previous year.

2

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

Small precision motors

(Yen in millions)

For the three months ended June 30,

Increase or decrease

Ratio of change

2020

2021

Net sales to external customers

104,418

101,306

(3,112)

(3.0)%

Spindle motors for hard disk

37,043

23,037

(14,006)

(37.8)%

drives (HDDs)

Other small precision motors

67,375

78,269

10,894

16.2%

Operating profit

14,283

12,305

(1,978)

(13.8)%

Operating profit ratio

13.7%

12.1%

-

-

Net sales of this category decreased 3.0% to ¥101,306 million for this three-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 ¥4,400 million for this three-month period compared to the same period of the previous year.

Net sales of spindle motors for HDDs decreased 37.8% to ¥23,037 million for this three-month period compared to the same period of the previous year, mainly due to a decrease in the number of units sold. On the other hand, net sales of other small precision motors increased 16.2% to ¥78,269 million for this three-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 appliance, and thermal solution products for game consoles and other products.

Although NIDEC made thorough manufacturing cost improvement and others by in-house production of parts, operating profit of this category decreased 13.8% to ¥12,305 million for this three-month period compared to the same period of the previous year as a result of advanced investments for launching new products, which are customer-based. 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 three-month period compared to the same period of the previous year.

Automotive products

(Yen in millions)

For the three months ended June 30,

Increase or decrease

Ratio of change

2020

2021

Net sales to external customers

56,797

97,747

40,950

72.1%

Operating profit (loss)

(258)

4,892

5,150

-

Operating profit ratio

(0.5)%

5.0%

-

-

Net sales of this category increased 72.1% to ¥97,747 million for this three-month period compared to the same period of the previous year under the recovery trend from a decrease in global demand for 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 ¥5,200 million for this three- 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 this category increased ¥5,150 million to ¥4,892 million for this three-month period compared to the same period of the previous year mainly due to the recovery in sales, although NIDEC continued to record advanced development costs for the traction motor system (E-Axle), which is experiencing rapid growth in demand. The fluctuations of the foreign currency exchange rates had a negative effect on operating profit of this category by approximately ¥200 million for this three-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 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 07:24:48 UTC.


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Number of Analysts 19
Last Close Price 13 345,00 JPY
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Spread / Average Target 14,0%
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Shigenobu Nagamori Chairman & Chief Executive Officer
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