NIDEC Corp : Nidec Announces Impact of the October 2011 Flooding in Thailand

FOR IMMEDIATE RELEASE

Contact:
Masahiro Nagayasu Senior General Manager Investor Relations
[phone] [e-mail]
Released on January 24, 2012, in Kyoto, Japan

Nidec Corporation

New York Stock Exchange symbol: NJ Stock exchange code (Tokyo, Osaka): 6594

Nidec Announces Impact of the October 2011 Flooding in Thailand

Nidec Corporation (NYSE: NJ) (the "Company") announced today that the following impact associated with the flooding that occurred in Thailand in October 2011 was included in its consolidated financial statements as of and for the nine months ended December 31, 2011:
(1) Description of the Impact
The flooding in Thailand caused water damage to buildings, machinery, and other property, plant and equipment as well as inventories at some of the Company's subsidiaries. Due to the water damage to the fixed assets inventories and power outages caused by the flooding, these subsidiaries temporarily suspended their operations. The Company recognized a loss of ¥19,251 million associated with the water damage to the fixed assets and inventories.
The Company estimated as of December 31, 2011, that insurance payments to be received under the property damage insurance policies the Company holds would exceed the loss of ¥19,251 million relating to the fixed assets and inventories, and the amount of the insurance payments estimated as of December 31, 2011, exceeding the loss was recorded as part of operating income presented in the Company's consolidated income statements for the nine months ended December 31, 2011. The Company
is currently in the process of estimating the aggregate realizable insurance payments for the physical damage to the fixed assets and inventories.

(Breakdown of the loss)

Loss on property, plant and equipment ¥14,034 million Loss on inventories ¥3,701 million Other related costs ¥1,516 million
Total: ¥19,251 million
(2) Outlook
All of the Company's manufacturing facilities in Thailand, including those which temporarily suspended operations due to the flooding, have already resumed operations. The Company currently expects that the loss relating to the fixed assets and inventories described above will be covered by its insurance policies, and that the above loss amount will not have a significant impact on the Company's consolidated financial performance for the fiscal year ending March 31, 2012.
Reference:
Consolidated Financial Performance Forecast (for the fiscal year ending March 31, 2012) (announced
January 24, 2012) and Consolidated Financial Performance Results (for the fiscal year ended March 31,
2011)
Yen in millions (except for per share amounts)

	Net sales	Operating income	Income from continuing operations before income taxes	Net income attributable to Nidec Corporation	Net income attributable to Nidec Corporation per share-basic
Consolidated Financial Performance Forecast (for the fiscal year ending March 31, 2012)	700,000	70,000	62,000	40,000

Cautionary Statement Concerning Forward-Looking Information

This press release contains forward-looking statements regarding the intent, belief, strategy, plans, or current estimates or expectations of Nidec or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, direct and indirect adverse impact of the flooding other than the loss amount described in this document, such as lost sales and certain incidental costs necessary to establish temporary production facilities or reestablish normal operations, the financial position and ability of insurance companies providing coverage for us, our ability to agree with such insurance companies on insurance payments under applicable policies, and changes in business and economic environments. Nidec does not undertake any obligation to update the forward-looking statements contained herein, nor to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.
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